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Exhibit 10.1(b)
AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER (the "Agreement") is made this
24th day
of June, 2007 by and among GlobalTech AC, Inc., an Illinois
corporation (the
"COMPANY"), the shareholders of the Company listed on the
signature pages
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 Six
Million
(6,000,000) shares of common stock of the Company, no par value
(the "SELLER
SHARES"), which constitute One Hundred Percent (100%) of the
issued and
outstanding shares of capital stock of the Company, consisting
of Six Million
(6,000,000) shares of common stock (the "SHARES");
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 be later than July 20, 2007, unless agreed to by mutual
written consent of
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
2,500,000
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) all schedules referred to in this Agreement; and
(vii)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
Delaware and Illinois Secretaries of State not more than 30 days
prior to
Closing;
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(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) a share repurchase agreement in substantially the form
attached
hereto as EXHIBIT B wherein after Purchaser obtains necessary
financing it
will at the election of the Sellers repurchase from Sellers Five
Hundred
Thousand (500,000) shares of Purchaser common stock, $0.001 par
value, for
cash at One Dollar ($1.00) per share; and within twelve (12)
months
thereafter Purchaser will at the election of the Sellers
repurchase from
Sellers Seven Hundred Fifty Thousand (750,000) shares of
Purchaser common
stock, $0.001 par value, for cash at One Dollar ($1.00) per
share;
(v) an employment agreement in substantially the form attached
hereto
as EXHIBIT C 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
(vi) 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, 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
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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 Six Million (6,000,000) 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.
(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
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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
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
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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
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