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AGREEMENT AND PLAN OF MERGER

Agreement and Plan of Merger

AGREEMENT AND PLAN OF MERGER | Document Parties: Cyber Vault Technologies, Inc | Hennessy & Roach, PC | Terra Firma Technologies, Inc You are currently viewing:
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Cyber Vault Technologies, Inc | Hennessy & Roach, PC | Terra Firma Technologies, Inc

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Title: AGREEMENT AND PLAN OF MERGER
Governing Law: Illinois     Date: 8/29/2007

AGREEMENT AND PLAN OF MERGER, Parties: cyber vault technologies  inc , hennessy & roach  pc , terra firma technologies  inc
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Exhibit 10.1(a)

AGREEMENT AND PLAN OF MERGER

THIS AGREEMENT AND PLAN OF MERGER (the "AGREEMENT") is made this 24th day

of July, 2007 by and among Cyber Vault Technologies, Inc., an Illinois

corporation (the "COMPANY"), the shareholders of the Company listed on APPENDIX

A attached hereto (each a "SELLER" and collectively, "SELLERS"), and Terra Firma

Technologies, Inc., a Delaware corporation (f/k/a Highriver Acquisition Corp., a

Delaware corporation) ("PURCHASER").

WHEREAS, Sellers are the record and beneficial owner of Five Million One

Hundred Twenty-One Thousand Nine Hundred Sixty-Two (5,121,962) shares of common

stock of the Company, no par value, (together, the "SELLER SHARES"), which

constitute One Hundred Percent (100%) of the issued and outstanding shares of

capital stock of the Company;

WHEREAS, the respective Boards of Directors of Purchaser and the Company

have determined that it is advisable and in the best interests of their

respective companies and their shareholders to consummate the business

combination transaction provided for herein in which the Company will, subject

to the terms and conditions set forth herein, merge with and into Purchaser (the

"MERGER"); and

WHEREAS, Purchaser, the Company and the Seller desire to make certain

representations, warranties and covenants in connection with the Merger;

WHEREAS, the parties hereto intend for the Merger to qualify, for federal

income tax purposes, as a reorganization within the meaning of Section 368(a) of

the Internal Revenue Code of 1986, as amended (the "Code"); and

WHEREAS, Sellers and Purchaser desire to set forth herein their agreement

relative to the matters set forth above in these Recitals.

NOW, THEREFORE, for and in consideration of the mutual promises and

agreements contained herein, and other good and valuable consideration, the

receipt and sufficiency of which are hereby acknowledged, the parties hereto

agree as follows:

1. Recitals. The recitals contained herein are specifically remade,

restated and fully incorporated into the terms and conditions of this Agreement.

2. The Merger. Subject to the terms and conditions of this Agreement, in

accordance with the Delaware General Corporation Law ("DGCL") and the Illinois

Business Corporation Act of 1983 ("IBCA"), at the Effective Time (as hereinafter

defined), the Company shall merge with and into Purchaser. Purchaser shall

become the surviving corporation (hereinafter sometimes called the "SURVIVING

CORPORATION") in the Merger, and shall continue its corporate existence under

the laws of the State of Delaware. The name of the Surviving Corporation shall

be "Terra Firma Technologies, Inc.", a Delaware corporation. Upon consummation

of the Merger, the separate corporate existence of the Company shall terminate.

3. Plan of Merger. This Agreement shall constitute an agreement of merger

for purposes of the DGCL and the IBCA.

4. Effective Time. As promptly as practicable, but in no event later than

the third (3rd) business day after all of the conditions set forth in Section 14

shall have been satisfied or, if permissible, waived by the party entitled to

the benefit of the same, the Company and Purchaser shall duly execute and file

certificates/articles of merger (collectively, the "CERTIFICATES OF MERGER")

<PAGE>

with the Secretary of State of the State of Delaware (the "DELAWARE SECRETARY")

in accordance with the DGCL and with the Secretary of State of the State of

Illinois (the "ILLINOIS SECRETARY") in accordance with the IBCA. The Merger

shall become effective on the date (the "CLOSING DATE") and at the later of such

time (the "EFFECTIVE TIME") as the Certificates of Merger are filed with the

Delaware Secretary and the Illinois Secretary or at such later date and time as

is specified in such Certificates of Merger, but in no event shall the Closing

Date occur later than July 20, 2007 unless agreed to in writing by the

undersigned. Subject to the terms and conditions of this Agreement, the closing

of the Merger (the "CLOSING") shall be held at the offices of Hennessy & Roach,

P.C., 140 South Dearborn Street, 7th Floor, Chicago, Illinois 60603 or such

other location as the parties may mutually agree upon.

5. Effect of the Merger. At the Effective Time, the effect of the Merger

shall be as provided herein and as set forth in Section 259 of the DGCL and

Section 11.50 of the IBCA. Without limiting the generality of the foregoing, and

subject thereto, at the Effective Time, (a) all the property, rights,

privileges, powers and franchises of the Company shall vest in the Surviving

Corporation, and (b) all debts, liabilities, obligations, restrictions,

disabilities and duties of Purchaser and the Company shall become the debts,

liabilities, obligations, restrictions, disabilities and duties of the Surviving

Corporation.

6. Conversion of Company Common Stock.

(a) At the Effective Time, the Seller Shares shall, by virtue of this

Agreement and without any action on the part of the holder thereof, be

converted into the right to receive and be exchangeable for 5,121,962

shares of Purchaser's common stock, $0.001 par value in the same

proportions that each Seller owns the Seller Shares (the "MERGER

CONSIDERATION"). Each Seller Share converted into the right to receive

Merger Consideration pursuant to this Section 6 shall no longer be

outstanding and shall automatically be canceled and retired and shall cease

to exist, and each certificate (each a "CERTIFICATE," and collectively, the

"CERTIFICATES") previously representing any such Seller Shares shall

thereafter represent the right to receive Merger Consideration.

(b) If, between the date of this Agreement and the Effective Time, the

outstanding shares of Purchaser shall be changed into a different number of

shares by reason of any reclassification, recapitalization or exchange of

shares or if a stock split, combination, stock dividend, stock rights or

dividend thereon shall be declared with a record date within said period,

the number of Purchaser shares included in the Merger Consideration,

rounded to the nearest whole number.

7. Certificate of Incorporation. Unless otherwise agreed to by the parties

prior to the Effective Time, at and after the Effective Time, the Certificate of

Incorporation of Purchaser shall be the Certificate of Incorporation of the

Surviving Corporation, until thereafter amended as provided by law and such

Certificate of Incorporation.

8. Bylaws. Unless otherwise agreed to by the parties prior to the Effective

Time, at and after the Effective Time, the Bylaws of Purchaser shall be the

Bylaws of the Surviving Corporation, until thereafter amended as provided by

law, the Certificate of Incorporation of the Surviving Corporation and such

Bylaws.

9. Additional Actions. If, at any time after the Effective Time, the

Surviving Corporation shall consider or be advised that any further assignments

or assurances in law or any other acts are necessary or desirable (a) to vest,

perfect or confirm, of record or otherwise, in the Surviving Corporation, title

to and possession of any property or right of the Company acquired or to be

acquired by reason of, or as a result of, the Merger, or (b) otherwise to carry

out the purposes of this Agreement, the Company and its proper officers and

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<PAGE>

directors shall be deemed to have granted to the Surviving Corporation an

irrevocable power of attorney to execute and deliver all such proper deeds,

assignments and assurances in law and to do all acts necessary or proper to

vest, perfect or confirm title to and possession of such property or rights in

the Surviving Corporation and otherwise to carry out the purposes of this

Agreement; and the proper officers and directors of the Surviving Corporation

are fully authorized in the name of the Company or otherwise to take any and all

such action.

10. Accounting and Tax Treatment. The parties to this Agreement intend that

the Merger shall be treated as a reorganization under Section 368(a) of the

Code.

11. Exchange of Shares.

(a) At the Effective Time, upon surrender of all the Certificates

representing all issued and outstanding Seller Shares to Purchaser,

Purchaser shall deliver to each Seller such Seller's pro rata portion of

the Merger Consideration.

(b) After the date of this Agreement, there shall be no transfers on

the stock transfer books of the Company of the Seller Shares, which were

issued and outstanding immediately prior to the date hereof.

12. Closing Deliveries.

(a) At Closing, Sellers shall deliver to Purchaser:

(i) a Certificate of Good Standing for the Company issued by the

Illinois Secretary of State not more than 30 days prior to Closing;

(ii) a certified copy of resolutions adopted by the shareholders

and board of directors of the Company authorizing the execution and

delivery of this Agreement and the transactions contemplated hereby;

(iii)assignment of any agreements of the Company relating to the

business of the Company and any consents required for such

assignments;

(iv) certificates representing the Seller Shares, which shall be

duly endorsed in blank, or accompanies by stock powers duly endorsed

in blank, in proper form for transfer;

(v) a shareholder agreement between the Company and all of its

shareholders executed by each Seller in the form attached hereto as

EXHIBIT A;

(vi) a license agreement in substantially the form attached

hereto as EXHIBIT B wherein the Company agrees to license to the

Purchaser the right to use the Intellectual Property (as hereinafter

defined);

(vii) an irrevocable lease-purchase agreement in substantially

the form attached hereto as EXHIBIT C wherein after Purchaser agrees

to lease from Cybervault Properties, LLC and Illinois Information

Management, LLC certain real property and intellectual property;

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<PAGE>

(viii) an irrevocable lease-purchase agreement in substantially

the form attached hereto as EXHIBIT D wherein after Purchaser agrees

to lease from the Company the IT Assets (as hereinafter defined);

(ix) all schedules referenced in this Agreement; and

(x) such other documents as may be reasonably necessary to carry

out the transactions contemplated by this Agreement.

(b) At Closing, Purchaser shall deliver to Sellers:

(i) the Merger Consideration;

(ii) a Certificate of Good Standing for Purchaser issued by the

Illinois and Delaware Secretaries of State not more than 30 days prior to

Closing;

(iii) a certified copy of resolutions adopted by the shareholders and

board of directors of Purchaser authorizing the execution and delivery of

this Agreement and the transactions contemplated herein;

(iv) an employment agreement in substantially the form attached hereto

as EXHIBIT E for continued employment with the Purchaser for each member of

the Company's management team so designated by the Company prior to the

Closing; and

(v) such other documents as may be reasonably necessary to carry out

the transactions contemplated by this Agreement.

13. Representations and Warranties.

(a) The Company and Sellers hereby represent and warrant to Purchaser,

respectively, as follows:

(i) Organization. The Company is a corporation duly formed and

validly existing under the laws of the State of Illinois and has the

power and authority to carry on its business as now conducted, to

execute this Agreement and the instruments referred to in this

Agreement that it is executing and delivering, and to carry out the

transactions contemplated hereby and thereby.

(ii) Enforceability. The execution and delivery by the Company of

this Agreement and the instruments referred to in this Agreement have

been duly authorized by the board of directors and Sellers and

constitute legal, valid, binding and enforceable agreements and

instruments of the Company.

(iii) No Violation. Neither the execution, delivery, nor

performance of this Agreement or any instrument executed and delivered

by or on behalf of the Company in connection herewith, nor the

consummation of the transactions herein or therein contemplated, nor

compliance with the terms and provisions hereof or thereof,

contravenes the Articles of Incorporation or By-Laws of the Company or

any provisions of law, statute, rule, regulation or judgment, decree,

franchise, order or permit applicable to the Company, or conflicts or

is inconsistent with or will result in any breach of or to the

Company's Knowledge constitute a default under any contract,

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<PAGE>

commitment, agreement, understanding, arrangement or instrument, or

result in the creation of or imposition of (or the obligation to

create or impose) any lien, encumbrance or liability on any of the

property or assets of the Company. "COMPANY'S KNOWLEDGE" shall mean

the actual knowledge of the Sellers after reasonable investigation.

(iv) Compliance with Laws. To the Company's Knowledge, the

Company is in compliance with all applicable laws, statutes,

ordinances, rules, regulations and orders of governmental authorities,

and the Company has not received notice asserting any violation

thereof or non-compliance therewith. To the Company's Knowledge, the

Company holds all the permits, licenses, certificates, registrations,

approvals or authorizations by or of governmental authorities or third

parties necessary or desirable for operation of the Company's

business, all of which are in full force and effect.

(v) Litigation. There is no claim, demand, suit, action,

arbitration or other administrative proceeding or investigation

pending or threatened against the Company, or to which the Company is

otherwise a party, or which may cause a material adverse effect for

the Company, before any court or any governmental department,

commission, board, agency or instrumentality; nor to the Company's

Knowledge is there any basis for any such claim, demand, suit, action,

proceeding or investigation. For purposes of this sub-section,

"material adverse effect" shall mean any liability, cost, or potential

financial exposure of at least $10,000, or any effect, which may have

a tendency to substantially disrupt or affect the ongoing business

operations of the Company or the Purchaser.

(vi) Disclosure. To Company's Knowledge, the representations and

warranties of the Company made in or pursuant to this Agreement do not

omit any material fact necessary in order to make the statements made

herein, in light of the circumstances under which they are made, not

misleading. To the Company's Knowledge, none of the information

contained herein contains any untrue statement of a material fact or

omits a material fact necessary to make the statements contained

herein not misleading.

(vii) The Company. The authorized capital stock of the Company

consists of Five Million One Hundred Twenty-One Thousand Nine Hundred

Sixty-Two (5,121,962) shares of common stock, of which only the Shares

are issued and outstanding as of the date of this Agreement and no

shares are held in treasury. The Shares have been duly and validly

authorized and issued and are fully paid and nonassessable. No Shares

are subject to any preferences, qualifications, limitations,

restrictions or special or relative rights under the Company's

articles of incorporation. There are no options, warrants, agreements,

contracts or other rights in existence to purchase or acquire from the

Company any shares of capital stock of the Company, whether now or

hereafter authorized or issued.

(viii) Title to the Shares. Sellers own, beneficially and of

record, the number of Shares set forth under Sellers' names on the

signature page to this Agreement, free and clear of all all options,

pledges, security interests, liens, mortgages, charges, claims,

conditional sale agreements, title exceptions or other encumbrances or

restrictions of any kind (collectively, "Encumbrances"), and have good

and marketable title to such Shares and full legal right, power and

authority to transfer such Shares in the manner contemplated by this

Agreement.

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<PAGE>

(ix) No Undisclosed Liabilities. To the Company's Knowledge, the

Company has no liabilities, whether accrued, absolute, contingent or

otherwise, existing or arising out of any transaction or state of

facts existing on or prior to the date hereof, except (a) as and to

the extent arising under contracts, commitments, transaction or

circumstances identified in the Exhibits and Schedules provided for

herein, excluding any liabilities for Company breaches thereunder; and

(b) liabilities, not material in the aggregate and incurred in the

Ordinary Course of Business, which, under GAAP, would not be required

to be reflected on a balance sheet prepared as of the date hereof. For

purposes of the preceding subsection (b), any liabilities incurred in

connection with litigation or judicial, administrative or arbitration

proceedings or claims against the Company shall not be deemed to be

incurred in the Ordinary Course of Business. An action taken in the

"ORDINARY COURSE OF BUSINESS" shall mean an action taken in the

ordinary course of business of the Company, as applicable, consistent

with custom and practice (including with respect to quantity and

frequency) and where for such action to be taken, no separate

authorization by the Company's board of directors, as applicable, is

required.

(x) Material Contracts. Schedule 13(a)(x) lists a complete and

correct list of all Material Contracts, which the Company shall

deliver to the Purchaser prior to the Closing. The Company shall make

available to the Purchaser all Material Contracts, and all copies of

such Material Contracts made available to the Purchaser shall be true

and complete. "MATERIAL CONTRACTS" include every contract, commitment

or arrangement, whether written or oral with a value greater than

$5,000 (and the Company shall deliver to the Purchaser written

descriptions of the terms and conditions of all oral Material

Contracts), of a material nature under which the Company is obligated

on the date hereof, including the following:

(A) all consulting arrangements, and contracts for professional,

advisory and other services, including contracts under which the

Company performs services for others;

(B) all leases of real estate and personal property;

(C) all contracts, commitments and agreements for the

acquisition, development or disposition of real or personal property

other than conditional sales contacts and security agreements

whereunder total future payments are, in each instance, less than

$5,000.00;

(D) all contracts relating to the employment, engagement,

compensation or termination of directors, officers, employees,

consultants or agents of the Company, and all pension, retirement,

profit sharing, stock option, stock purchase, stock appreciation,

insurance or similar plans or arrangements for the benefit of any

employees, officers or directors of the Company;

(E) all loans, loan commitments, promissory notes, letters of

credit or other financial accommodations or arrangements or evidences

of indebtedness, including modifications, waivers or amendments

thereof, extended to or for the benefit of the Company;

(F) all loans, loan commitments, promissory notes, letters of

credit or other financial accommodations or arrangements or evidences

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<PAGE>

of indebtedness, including modifications, waivers or amendments

thereof, extended to or for the benefit of any single borrower or

related group of borrowers if the aggregate amount of all such loans,

loan commitments, promissory notes, letters of credit or other

financial accommodations or arrangements or evidences of indebtedness

extended to such borrower or related group of borrowers exceeds

$50,000.00;

(G) all union and other labor contracts;

(H) any contract involving total future payments by the Company

of more than $5,000.00 or which requires performance by the Company

beyond the second anniversary of the Closing Date, that by its terms

does not terminate or is not terminable by the Company without penalty

within 30 days after the date of this Agreement;

(I) except for provisions of the Articles of Incorporation and

By-Laws of the Company, all contracts under which the Company as any

obligation, direct, indirect, contingent or otherwise, to assume or

guarantee any liability or to indemnify any person (other than in a

fiduciary capacity);

(J) all joint venture or marketing agreements with any other

person or entity;

(K) all other Material Contracts, made other than in the Ordinary

Course of Business of the Company, to which the Company is a party or

under which the Company is obligated.

(xi) No Defaults. The Company has fulfilled and taken all action

reasonably necessary to date to enable it to fulfill, when due, all of

its material obligations under all Material Contracts to which it is a

party. There are no breaches or defaults by the Company under any

Material Contract that could give rise to a right of termination or

claim for material damages under such Material Contract, and to the

Company's Knowledge no events have occurred that, with the lapse of

time or the election of any other party, will become such a breach or

default by the Company. To the Company's Knowledge, no breach or

default by any other party under any Material Contract has occurred or

is threatened that will or could impair the ability of


 
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