AGREEMENT AND PLAN OF
REORGANIZATION
THIS AGREEMENT AND PLAN OF REORGANIZATION
(the “
Agreement”) is dated September 28,
2009, and is by and between Qualsec, a Wyoming corporation (the
“Company”) and Vitamin Spice, LLC, a Delaware limited
liability company (“Vitamin Spice ”
).
R E C I T A L S
WHEREAS, the shareholders of Vitamin
Spice ("Shareholders") own the membership interests of Vitamin
Spice as set forth in Schedule 1 attached hereto,
constituting all of the issued and outstanding membership
interests of Vitamin Spice (the “
Vitamin Spice
Interests”);
WHEREAS, the Company is a public
company, required to file reports under Section 15(d) of the
Securities Exchange Act of 1934 (the "Exchange Act");
WHEREAS, the Board of Directors of the
Company and Vitamin Spice deem it advisable that the acquisition by
the Company of Vitamin Spice be effected through an exchange (the
"Exchange") of Vitamin Spice Interests pursuant to this
Agreement;
WHEREAS, the Company desires to acquire
all of the outstanding Vitamin Spice Interests for shares of Common
Stock of the Company.
A G R E E M E N T
NOW, THEREFORE, in consideration of the
mutual covenants and agreements contained herein and in
reliance upon the representations and warranties hereinafter
set forth, the parties agree as follows:
I. EXCHANGE
1.01 Exchange .
The Shareholders shall exchange all of their Vitamin Spice
Shares for a total of 100,000,000 shares of Common Stock of the
Company (the "Common Stock") at the Closing of this Agreement.
Giving effect to certain issuances for conversion of debt pursuant
to Section 6.01 hereof, and a 1-for-30 reverse stock split to be
effected in the next 30 days, there shall be 121,000,000 shares of
Common Stock outstanding after Closing.
1.02.
Closing . The Closing of the transactions contemplated
by this Agreement (the "Closing") shall take place on or before
September 28, 2009 at the corporate offices of Vitamin
Spice.
1.03.
Deliveries
. Upon Closing, the parties are
delivering the following documents:
1.03(a). The items and documents
set forth in Sections 1.01 and 1.02.
1.03(b). The Company shares of
Common Stock described in Section 1.02.
1.03(c). The Company shall deliver
the resignations of all of its current officers and directors, and
board resolutions electing Edward Bukstel, and Dror Rom to
the Board of Directors of the Company, Edward Bukstel as President
and CFO and Dror Rom as Secretary.
1.04.
Filings . Immediately following the Closing, the
Company shall file the following documents:
1.04(a). A Current Report on Form
8-K with the U.S. Securities and Exchange Commission, reporting the
transactions set forth in this Agreement.
1.04(b). An information statement
with the U.S. Securities and Exchange Commission changing the name
of the Company to "Vitamin Spice" or a similar name as may be
determined by the Board of Directors.
II.
REPRESENTATIONS AND WARRANTIES OF
VITAMIN SPICE AND COFFEE
Vitamin Spice represents and
warrants to the Company as follows, as of the date of this
Agreement and as of the Closing:
2.01. Organization
.
2.01(a). Vitamin Spice is a limited
liability company duly organized, validly existing and in
good standing under the laws of the State of Delaware; Vitamin
Spice has the power and authority to carry on its
business as presently conducted; and Vitamin Spice is
qualified to do business in all jurisdictions where the
failure to be so qualified would have a material adverse
effect on its business.
2.02. Capitalization
.
2.02(a). The membership interests
of Vitamin Spice is as set forth on Exhibit 2.02(a).
All of the issued and interests of Vitamin Spice are duly
authorized, validly issued, fully paid and
nonassessable.
2.02(b). Except as set forth in
Exhibit 2.02(b) there are no outstanding options, warrants, or
rights to purchase any securities of Vitamin Spice.
2.03.
Subsidiaries and
Investments .
Vitamin Spice does not own any capital stock or have any
interest in any corporation, partnership or other form of
business organization, except as described in Exhibit 2.03
hereto.
2.04.
Financial Statements
. The financial statements of
Vitamin Spice as of and for the two years ended June 30, 2009,
including the balance sheets as of June 30, 2009 and 2008 and the
related audited statement of operations, cash flows and changes in
stockholders' equity for the two years then ended present fairly
the financial position and results of operations of Vitamin Spice,
on a consistent basis. The audit of such financial statements shall
be completed within 4 business days of the Closing.
2.05.
No Undisclosed
Liabilities . To the
best knowledge of Vitamin Spice, other than as described in Exhibit
2.05 attached hereto, Vitamin Spice is not subject to any
material liability or obligation of any nature, whether
absolute, accrued, contingent, or otherwise and whether
due or to become due, which is not reflected or reserved
against in the Financial Statements, except those incurred in
the normal course of business.
2.06.
Absence of Material
Changes . Since June
30, 2009, except as described in any Exhibit attached hereto or as
required or permitted under this Agreement, there has not
been:
2.06(a). any material adverse
change in the condition (financial or otherwise) of the properties,
assets, liabilities or business of Vitamin Spice, except
changes in the ordinary course of business which,
individually and in the aggregate, have not been
materially adverse;
2.06(b). any redemption, purchase
or other acquisition of any shares of the capital stock of Vitamin
Spice, or any issuance of any shares of capital stock or the
granting, issuance or exercise of any rights, warrants,
options or commitments by Vitamin Spice relating to their
authorized or issued capital stock; or
2.06(c). any change or amendment to
the Certificate of Incorporation of Vitamin Spice.
2.07.
Litigation
. Except as set forth in
Exhibit 2.07 attached hereto, to the best knowledge of Vitamin
Spice there is no litigation, proceeding or investigation pending
or threatened against Vitamin Spice affecting any of its
properties or assets against any officer, director, or stockholder
of Vitamin Spice that might result, either in any case or in the
aggregate, in any material adverse change in the business,
operations, affairs or condition of Vitamin Spice or its
properties or assets, or that might call into question
the validity of this Agreement, or any action taken or to
be taken pursuant hereto.
2.08.
Title To Assets
. Vitamin Spice has good and
marketable title to all of its assets and properties now
carried on its books including those reflected in the
balance sheets contained in the Financial Statements,
free and clear of all liens, claims, charges, security interests or
other encumbrances, except as described in Exhibit
2.08 attached hereto or any other Exhibit.
2.09.
Transactions with Affiliates,
Directors and Shareholders . Except as set forth in Exhibit 2.09 attached
hereto, there are and have been no contracts, agreements,
arrangements or other transactions between Vitamin Spice, and any
officer, director, or stockholder of Vitamin Spice,
or any corporation or other entity controlled by the
Shareholders, a member of the Shareholders' families, or any
affiliate of the Shareholders.
2.10.
No Conflict
. The execution and delivery of
this Agreement and the consummation of the transactions
contemplated hereby will not conflict with or result in a breach of
any term or provision of, or constitute a default under, the
Articles of Incorporation or Bylaws of Vitamin Spice, or any
agreement, contract or instrument to which Vitamin
Spice is a party or by which it or any of its assets are
bound.
2.11.
Disclosure
. To the actual knowledge of
Vitamin Spice, neither this Agreement, the Financial
Statements nor any other agreement, document, certificate or
written or oral statement furnished to the Company by or on
behalf of Vitamin Spice in connection with the transactions
contemplated hereby, contains any untrue statement
of a material fact or when taken as a whole omits to state a
material fact necessary in order to make the
statements contained herein or therein not
misleading.
2.12.
Authority
. Vitamin Spice has full power and
authority to enter into this Agreement and to carry out the
transactions contemplated herein. The execution and
delivery of this Agreement and the consummation of the transactions
contemplated hereby, have been duly authorized and approved by the
Board of Directors of Vitamin Spice and, other than the approval by
the Shareholders of Vitamin Spice described in Section 6.04, no
other corporate proceedings on the part of Vitamin Spice are
necessary to authorize this Agreement and the transactions
contemplated hereby.
III. REPRESENTATIONS AND
WARRANTIES OF THE COMPANY
The Company hereby represents and
warrants to Vitamin Spice as follows, as of the date of this
Agreement and as of the Closing:
3.01. Organization
.
3.01(a). The Company is a
corporation duly organized, validly existing, and in good standing
under the laws of the State of Wyoming; has the corporate power and
authority to carry on its business as presently conducted; and is
qualified to do business in all jurisdictions where the
failure to be so qualified would have a material adverse effect on
the business of the Company.
3.01(b). The copies of the Articles
of Incorporation, of the Company, as certified by the
Secretary of State of Wyoming, and the Bylaws of the Company
are complete and correct copies of the Articles of
Incorporation and the Bylaws of the Company as
amended and in effect on the date hereof. All minutes of
meetings and actions in writing without a meeting of the Board
of Directors and shareholders of the Company are contained in the
minute book of the Company and no minutes or actions in writing
without a meeting have been included in such minute book since such
delivery to Vitamin Spice that have not also been delivered to
Vitamin Spice.
3.02.
Capitalization of the
Company . The
authorized capital stock of the Company consists of an unlimited
number of shares of Common Stock and Preferred Stock, no par value
per share, of which 21,000,000 shares will be outstanding
at Closing giving effect to the Reverse Split, and no shares of
preferred stock. All outstanding shares are and will be duly
authorized, validly issued, fully paid and non-assessable.
3.03.
Subsidiaries and
Investments . The
Company does not own any capital stock or have any interest in any
corporation, partnership, or other form of business
organization.
3.04.
Authority
. The Company has full power and
authority to enter into this Agreement and to carry out the
transactions contemplated