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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")
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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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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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(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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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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(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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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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