Exhibit 10
AGREEMENT AND PLAN OF
MERGER
This Agreement and Plan of Merger
(hereinafter the "Agreement") is entered into as of this 19th day
of February, 2009, by and among Explorations Group, Inc., a
Delaware corporation ("Explorations"), Hawk Acquisition Corp.
(“MergerSub”), a Florida corporation, and Hawk
Biometric Technologies, Inc., a Florida corporation ("Hawk
Biometric").
RECITALS:
WHEREAS, the respective Boards of Directors
of Explorations, Hawk Biometric and MergerSub have each approved
the merger of Hawk Biometric with and into MergerSub (the
"Merger"), upon the terms and subject to the conditions set forth
in this Agreement, whereby each issued and outstanding share of
Class A common stock, no par value and Class B common stock, no par
value, of Hawk Biometric (collectively, the Hawk Biometric Class A
common stock and Class B common stock shall be referred to herein
as the "Hawk Biometric Common Stock"), will be converted into the
right to receive two one-hundredths (.02) of a share of
Explorations Convertible Series B Preferred stock, par value $.01
per share ("Series B Preferred Stock").
WHEREAS, the respective Boards of Directors
of Explorations, Hawk Biometric and MergerSub have each determined
that the Merger and the other transactions contemplated hereby are
consistent with, and in furtherance of, their respective business
strategies and goals and are in the best interests of their
respective stockholders;
WHEREAS, Explorations, Hawk Biometric and
MergerSub intend that the merger of Hawk Biometric with and into
MergerSub will quality as a tax-free reorganization pursuant to
Section 368(a) of the Internal Revenue Code of 1986, as amended
(the "Code"); and
NOW THEREFORE
, for the mutual
consideration set out herein and other good and valuable
consideration, the legal sufficiency of which is hereby
acknowledged, the parties agree as follows:
ARTICLE
I
MERGER
1.
The Merger. Upon the terms and subject to the conditions set
forth in this Agreement, and in accordance with Chapter 607 of the
Florida Statutes (the “Florida Law”), Hawk Biometric
shall be merged with and into MergerSub at the Effective Time (as
defined in Section 4), and in connection
therewith:
(a)
except to the extent provided or
permitted by the Florida Law, MergerSub shall merge with and into
Hawk Biometric, the separate existence of MergerSub shall cease and
terminate, and Hawk Biometric shall continue as the surviving
corporation and as a wholly-owned subsidiary of Explorations (Hawk
Biometric as the surviving corporation after the Merger is
hereinafter sometimes referred to as the “Surviving
Corporation”);
(b)
all of the rights, privileges,
immunities, powers, franchises and authority (both public and
private) of Hawk Biometric and MergerSub shall vest in the
Surviving Corporation;
(c)
all of the assets and property of Hawk
Biometric and MergerSub of every kind, nature and description
(real, personal and mixed and both tangible and intangible) and
every interest therein, wheresoever located, including, without
limitation, all debts or other obligations belonging or due to Hawk
Biometric or MergerSub, all claims and all causes of action, shall
be, and be deemed to be, vested, absolutely and unconditionally, in
the Surviving Corporation; and
(d)
all debts and obligations of Hawk
Biometric or MergerSub, all rights of creditors of Hawk Biometric
or MergerSub and all liens or security interests encumbering any of
the property of Hawk Biometric or MergerSub shall be vested in the
Surviving Corporation and shall remain in full force and effect
without modification or impairment and shall be, and be deemed to
be, enforceable against the Surviving Corporation and its assets
and properties with the same full force and effect as if such
debts, obligations, liens or security interests had been originally
incurred or created by the Surviving Corporation in its own name
and for its own behalf. Without limiting the generality
of the foregoing, Surviving Corporation specifically assumes all
continuing obligations which Hawk Biometric or MergerSub would
otherwise have to indemnify its officers and directors, to the
fullest extent currently provided in the Surviving
Corporation’s Certificate of Incorporation, By-Laws and
pursuant to the Florida Law, with respect to any and all claims
arising out of actions taken or omitted by such officers and
directors prior to the Effective Time.
2.
Instruments of Conveyance
. Without limiting the
generality of the provisions of Section 1 hereof and/or the
succession provisions of applicable law, the officers and directors
of Hawk Biometric last in office shall (to the extent they, or any
of them, possess and/or may exercise the power to do so) execute,
deliver and/or record such deeds and/or other instruments of
transfer and/or conveyance, and take or cause to be taken, such
other and further actions, as the case may be, as shall be
reasonably requested by MergerSub or its legal counsel, to vest,
perfect, confirm, implement the transfer of, or establish in the
name, on behalf or for the account or the benefit of, title to,
and/or possession of, any or all of the assets, property, property
interests, rights, privileges, immunities, powers and franchises
owned and/or exercisable by Hawk Biometric (or in which Hawk
Biometric had an interest and/or the power to exercise immediately
prior to the Effective Time) and which was vested, or intended to
be vested, in MergerSub pursuant to the provisions of this
Agreement and the Merger.
3.
Closing.
The closing of the Merger (the "Closing")
will take place at 10:00 a.m. on a date to be specified by the
parties (the "Closing Date"), which shall be no later than the
second business day after satisfaction or waiver of the conditions
set forth in Articles 4 and 5, unless another time or date is
agreed to by the parties hereto. The Closing will be held at such
location as is agreed to by the parties hereto.
4.
Effective Time.
Subject to the provisions of this
Agreement, as soon as practicable on the Closing Date, the parties
shall cause the Merger to be consummated by filing a certificate of
merger or other appropriate documents (in any such case, the
"Certificate of Merger") executed in accordance with the relevant
provisions of the Florida Law and shall make all other filings or
recordings required under the Florida Law. The Merger shall become
effective at such time as the Certificate of Merger is duly filed
with the Secretary of State of Florida, or at such subsequent date
or time as the parties shall agree and specify in the Certificate
of Merger (the time the Merger becomes effective being hereinafter
referred to as the "Effective Time").
5.
Certificate of Incorporation and
By-laws of the Surviving Corporation.
The Certificate of Incorporation of Hawk
Biometric, as amended and in effect prior to the Effective Time,
shall be the Certificate of Incorporation of the Surviving
Corporation (the "Surviving Certificate of Incorporation"). The
By-laws of Hawk Biometric, in effect prior to the Effective Time,
shall be the By-laws of the Surviving Corporation (the "Surviving
By-laws").
6.
Boards, Committees and
Officers . Prior to
the Effective Time, Explorations shall adopt resolutions in form
and substance reasonably acceptable to Hawk Biometric,
establishing, among other things that, the Board of Directors and
Officers of Explorations and Hawk Biometric from and after the
Effective Time shall be comprised solely of the nominees of Hawk
Biometric.
ARTICLE
II
EFFECT OF THE MERGER
ON THE CAPITAL STOCK
OF THE CONSTITUENT
CORPORATIONS;
EXCHANGE OF
CERTIFICATES
1.
Exchange of Shares
. As of the Effective Time, by
virtue of the Merger and without any action on the part of the
holder of any shares of Hawk Biometric Common
Stock:
(a)
Conversion of Capital
Stock. Each issued
and outstanding share of Hawk Biometric Common Stock shall be
converted into the right to receive two-one hundredths (.02) of a
validly issued, fully paid and nonassessable share of Series B
Preferred Stock (the “Merger
Consideration”).
(b)
All outstanding shares of Hawk Biometric
common stock shall be deemed, after the Effective Time, to be owned
by Explorations. The holders of such certificates
previously evidencing shares of Hawk Biometric Common Stock
outstanding immediately prior to the Closing Date shall cease to
have any rights with respect to such shares of Hawk Biometric
Common Stock except as otherwise provided herein or by
law.
(c)
Any shares of Hawk Biometric Common Stock
held in the treasury of Hawk Biometric immediately prior to the
Closing Date shall automatically be canceled and extinguished
without any conversion thereof and no payment shall be made with
respect thereto.
(d)
Delivery of Certificates.
Explorations shall deliver to the Hawk
Biometric Shareholders, stock certificates representing the Merger
Consideration. At the Closing, Hawk Biometric will use
its best efforts to cause the Hawk Biometric Stockholders to
surrender for cancellation certificates representing the Hawk
Biometric Common Stock against delivery of certificates
representing the Explorations Shares. In the event that any Hawk
Biometric Shareholder's certificates have been lost, stolen or
destroyed, such Hawk Biometric shareholder will be entitled to
receive the Merger Consideration only after providing an affidavit
of loss and indemnity bond, in form reasonably satisfactory to
Explorations.
2.
No Fractional Securities. Notwithstanding any
other provision of this Agreement, no certificates or scrip for
shares of capital stock representing less than one share of Series
B Preferred Stock shall be issued upon the surrender for exchange
of Hawk Biometric certificates.
3.
Tax Treatment . The Merger is intended to constitute a
reorganization under Sections 368(a)(1)(A) and 368(a)(2)(E) of the
Code, and the parties shall not report the transaction on any tax
return in a manner or take any action inconsistent
therewith.
4.
Restricted Stock
. The shares of the Series B
Preferred Stock to be issued to the Hawk Biometric shareholders
shall be deemed to be “restricted securities” as
defined by Rule 144(a)(3) under the Securities Act of 1933, as
amended (the “ Securities Act ”). The
certificates evidencing such shares shall bear the following
restrictive legend:
“The shares evidenced by this
certificate have not been registered under the Securities Act of
1933, as amended (the “Securities Act”), and may not be
sold or otherwise transferred unless registered under the
Securities Act or there is an opinion from counsel to the company
that such sale or other transfer may be made pursuant to an
exemption from the registration requirement of the Securities
Act.”
5.
Other Events Occurring at
Closing . At
Closing, the following shall be accomplished:
(a)
The resignation of the existing
Explorations officers and directors and appointment of new officers
and directors as directed by Hawk Biometric;
ARTICLE
III
REPRESENTATIONS AND
WARRANTIES
1.
Representations of Hawk
Biometric . Hawk Biometric
hereby represents and warrants as follows, which warranties and
representations shall also be true as of the Closing Date and
Effective Time:
(a)
Immediately prior to
the Closing, the outstanding capitalization of Hawk
Biometric shall consist of no more than 30,000,000 shares of Hawk
Biometric Common Stock. The Hawk Biometric Stockholders listed on
the attached Exhibit "A" are the sole record and beneficial owners
of the issued and outstanding common stock of Hawk Biometric. The
shares Hawk Biometric Common Stock are free from claims, liens, or
other encumbrances, and at the Closing Date said Hawk Biometric
Stockholder will have good title and the unqualified right to
transfer and dispose of such shares Hawk Biometric Common
Stock.
(b)
Hawk Biometric has no outstanding or
authorized capital stock, warrants, options or convertible
securities except as set forth on Exhibit
“A”.
(c)
The Hawk Biometric audited financial
statements for the period from its inception through September 30,
2008 (the “Hawk Biometric Audited Financial
Statements”) are true and accurate, in accordance with the
books and records of Hawk Biometric, and present fairly in all
material respects the financial position and results of operations
of Hawk Biometric as of the times and for the periods referred to
therein, in each case in accordance with generally accepted
accounting principles under current United States accounting rules
and regulations, consistently applied (“ GAAP
”). All of the financial books and records of Hawk
Biometric have been made available to Explorations, and such books
and records completely and fairly record in all material respects
Hawk Biometric’s financial affairs, which would normally be
recorded in financial books and records. There are no material
liabilities or obligations, either fixed or contingent, not
disclosed in the Hawk Biometric Audited Financial Statements or in
any exhibit thereto or notes thereto other than liabilities,
contracts or obligations incurred in the ordinary course of
business; and no such liabilities, contracts or obligations in the
ordinary course of business constitute liens or other liabilities
which materially alter the financial condition of Hawk Biometric as
reflected in the Hawk Biometric Audited Financial Statements. Hawk
Biometric has good title to all assets shown on the Hawk Biometric
Audited Financial Statements subject only to dispositions and other
transactions in the ordinary course of business, the disclosures
set forth therein and liens and encumbrances of
record.
(d)
Since the date of the Hawk Biometric
Audited Financial Statements, there have not been any material
adverse changes in the financial position of Hawk Biometric except
changes arising in the ordinary course of business, which changes
will in no event materially and adversely affect the financial
position of Hawk Biometric.
(e)
Hawk Biometric is not a party to any
material pending litigation or, to its best knowledge, any
governmental investigation or proceeding, not reflected in the Hawk
Biometric Financial Statements, and to its best knowledge, no
material litigation, claims, assessments or any governmental
proceedings are threatened against Hawk
Biometric.
(f)
Hawk Biometric is in good standing in its
jurisdiction of incorporation, and is in good standing and duly
qualified to do business in each jurisdiction where required to be
so qualified except where the failure to so qualify would have no
material negative impact on Hawk Biometric.
(g)
Hawk Biometric has (or, by the Closing
Date, will have) filed all material tax, governmental and/or
related forms and reports (or extensions thereof) due or required
to be filed and has (or will have) paid or made adequate provisions
for all taxes or assessments which have become due as of the
Closing Date.
(h)
Hawk Biometric has not materially
breached any material agreement to which it is a party. Hawk
Biometric has previously given Explorations copies or access
thereto of all material contracts, commitments and/or agreements to
which Hawk Biometric is a party including all relationships or
dealings with related parties or affiliates.
(i)
Hawk Biometric has no
subsidiaries.
(j)
Hawk Biometric has made all material
corporate financial records, minut