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PLAN AND AGREEMENT OF STOCK EXCHANGE AMONG HYBRID DYNAMICS CORPORATION PUKKA USA, INC. AND THE SHAREHOLDERS OF INFOMAC CORPORATION DATED August 23, 2007

Agreement and Plan of Merger

PLAN AND AGREEMENT OF STOCK EXCHANGE AMONG HYBRID DYNAMICS CORPORATION PUKKA USA, INC. AND THE SHAREHOLDERS OF INFOMAC CORPORATION DATED August 23, 2007 | Document Parties: BIRCHWOOD CAPITAL ADVISORS, INC | HAMPTON BRIDGE ADVISORS LLC | HYBRID DYNAMICS CORPORATION | INFOMAC CORPORATION | MID-ELM INVESTMENTS LTD LLC | TRIDENT MERCHANT GROUP, INC | PUKKA USA, INC You are currently viewing:
This Agreement and Plan of Merger involves

BIRCHWOOD CAPITAL ADVISORS, INC | HAMPTON BRIDGE ADVISORS LLC | HYBRID DYNAMICS CORPORATION | INFOMAC CORPORATION | MID-ELM INVESTMENTS LTD LLC | TRIDENT MERCHANT GROUP, INC | PUKKA USA, INC

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Title: PLAN AND AGREEMENT OF STOCK EXCHANGE AMONG HYBRID DYNAMICS CORPORATION PUKKA USA, INC. AND THE SHAREHOLDERS OF INFOMAC CORPORATION DATED August 23, 2007
Governing Law: Nevada     Date: 8/30/2007

PLAN AND AGREEMENT OF STOCK EXCHANGE AMONG HYBRID DYNAMICS CORPORATION PUKKA USA, INC. AND THE SHAREHOLDERS OF INFOMAC CORPORATION DATED August 23, 2007, Parties: birchwood capital advisors  inc , hampton bridge advisors llc , hybrid dynamics corporation , infomac corporation , mid-elm investments ltd llc , trident merchant group  inc , pukka usa  inc
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EXHIBIT 10.1


PLAN AND AGREEMENT OF STOCK EXCHANGE

AMONG

HYBRID DYNAMICS CORPORATION

PUKKA USA, INC.

AND

THE SHAREHOLDERS OF
INFOMAC CORPORATION

DATED August 23, 2007



TABLE OF CONTENTS

PLAN AND AGREEMENT OF REORGANIZATION

AGREEMENT

Section 1 - Transfer of Shares

Section 2 - Issuance of EXCHANGE SHARES to OWNERS

Section 3 – Intentionally Left Blank

Section 4 – Closing

Section 5 - Representations and Warranties by ACQUIREE and OWNERS

Section 6 - Representations and Warranties by ACQUIROR

Section 7 - Access and Information

Section 8 - Covenants of ACQUIREE and OWNERS

Section 9 - Covenants of ACQUIROR

Section 10 - Additional Covenants of the Parties

Section 11 - Non-Survival of Representations, Warranties and Covenants

Section 12 - Conditions Precedent to Obligations of Parties

Section 13 - Termination, Amendment, Waiver

Section 14 – Miscellaneous









EXHIBIT LIST

Exhibit "A-1"     UNANIMOUS WRITTEN CONSENT OF THE BOARD OF DIRECTORS OF HYBRID DYNAMICS CORPORATION

Exhibit “A-2”     ACTION BY UNANIMOUS WRITTEN CONSENT OF THE SHAREHOLDERS OF PUKKA USA, INC.

Exhibit "B"         ACTION BY UNANIMOUS WRITTEN CONSENT OF THE SHAREHOLDERS OF INFOMAC CORPORATION

Exhibit “C”         ACQUIREE FINANCIAL STATEMENTS

Exhibit “D”         ACQUIROR FINANCIAL STATEMENTS

Exhibit “E”         ACQUIROR CAPITALIZATION & SHAREHOLDERS

Exhibit “F”         FORM OF INDIVIDUAL OWNER REPRESENTATION LETTER




















PLAN AND AGREEMENT OF STOCK EXCHANGE

This Plan and Agreement of STOCK EXCHANGE ("Agreement") is entered into on this 23rd day of August, 2007 by and between HYBRID DYNAMICS CORPORATION, a Nevada corporation (“HYBRID”), PUKKA USA, INC., a Utah corporation (the "ACQUIROR"), on the one hand and INFOMAC CORPORATION (the "ACQUIREE”), a Nevada corporation and the shareholders of ACQUIREE whose names appear below (the “OWNER” OR “OWNNERS”).

RECITALS:

WHEREAS, the transaction contemplated by this Agreement is intended to be a qualified Type "B" reorganization pursuant to Internal Revenue Code Section 368, and conforming Utah and Nevada law, and

WHEREAS, ACQUIREE is the holder of a Distributor Agreement with Microtrak GPS, Inc. a manufacturer of GPS enabled tracking products for motorcycles, scooters and other mobile vehicles and equipment, and

WHEREAS, ACQUIROR intends to acquire: 100% of ACQUIREE’s issued and outstanding capital stock (the “ACQUIREE SHARES”), and 

WHEREAS, the ACQUIREE SHARES are to be acquired in exchange for 1,410,000 shares of the common stock HYBRID, $0.00015 par value (post 1 for 100 reverse split),  and

WHEREAS, following consummation of the transaction set forth hereinafter, ACQUIROR would hold 100% of the then outstanding common stock of ACQUIREE and the ACQUIREE would become the wholly-owned subsidiary of ACQUIROR.

NOW, THEREFORE, WITNESSETH that in consideration of the mutual promises and covenants hereinafter stipulated and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties hereto, the parties agree as follows:


Section 1
TRANSFER OF SECURITIES

1.1       OWNERS, as of the date of Closing as such term is defined in Section 4 herein (the "Closing" or the "Closing Date"), shall transfer, assign, convey and deliver to ACQUIROR on the Closing Date, one hundred percent (100%) of ACQUIREE’s issued and outstanding capital stock, consisting of four million two hundred thirty thousand (4,230,000) shares of common stock, $0.0001 par value (the “ACQUIREE SHARES”).   The transfer of the ACQUIREE SHARES shall be made free and clear of all liens, mortgages, pledges, encumbrances or charges, whether disclosed or undisclosed, except as OWNERS and ACQUIROR shall have otherwise agreed in writing.

1.2       For purposes hereof, the ACQUIREE SHARES shall include all of the issued and outstanding shares of capital stock of ACQUIREE owned by OWNERS, which shares shall constitute all of the issued and outstanding equity securities of ACQUIREE.  OWNERS and AQUIREE shall represent and warrant that there are no other securities of ACQUIREE issued and outstanding other than the ACQUIREE SHARES being conveyed hereunder.


Section 2
ISSUANCE OF EXCHANGE SHARES TO OWNER

2.1       As consideration for the transfer, assignment, conveyance and delivery of the ACQUIREE SHARES hereunder, ACQUIROR shall, at the Closing, deliver to OWNERS certificates representing one million four hundred ten thousand (1,410,000) post 100-to-1 reverse split shares of HYBRID common stock, $0.00015 par value, (the "EXCHANGE SHARES"), in the number as set forth on opposite the name of each OWNER signatory hereto.  The parties hereto represent, acknowledge and agree that the EXCHANGE SHARES being issued hereunder are being used solely to acquire all of the ACQUIREE SHARES.  (The issuance of the EXCHANGE SHARES in consideration of the ACQUIREE SHARES hereinafter referred to as the “EXCHANGE” or the “EXCHANGE TRANSACTION”).  HYBRID represents that contemporaneously with this transaction, HYBRID’s common stock








is in the process of a 100-to-1 reverse stock split, and it is the intention of all parties hereto that the EXCHANGE SHARES being issued hereunder shall be shares of HYBRID common stock issued subsequent to the closing of its aforementioned reverse split.

2.2       The issuance of the EXCHANGE SHARES shall be made free and clear of all liens, mortgages, pledges, encumbrances or charges, whether disclosed or undisclosed, except as OWNERS and ACQUIROR shall have otherwise agreed in writing.

2.3       None of the EXCHANGE SHARES issued to the OWNERS, nor any of ACQUIROR’S shares, at the time of Closing, shall be registered under federal securities laws but, rather, shall be issued pursuant to an exemption there from and be considered "restricted stock" within the meaning of Rule 144 promulgated under the Securities Act of 1933, as amended (the "Act"). All of the respective certificates representing such shares shall bear a legend worded substantially as follows:

“THESE SECURITIES HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR THE SECURITIES LAWS OF ANY STATE. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER THE ACT AND UNDER SUCH STATE LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION AND QUALIFICATION UNDER THE ACT AND SUCH STATE LAWS IS NOT REQUIRED.”

The respective transfer agents of ACQUIROR and ACQUIREE shall annotate their records to reflect the restrictions on transfer embodied in the legend set forth above. There shall be no requirement that ACQUIROR register the OWNERS’ EXCHANGE SHARES under the Act or any state securities laws, nor shall OWNERS or the ACQUIREE be required to register any of the ACQUIREE SHARES under the Act or any state securities laws.


Section 3
Intentionally Left Blank.


Section 4
CLOSING

4.1       Closing of Transaction. Subject to the fulfillment or waiver of the conditions precedent set forth in Sections 3 and 12 hereof, the Closing shall take place on the Closing Date at the offices of ACQUIROR, at 10:00 A.M., local time, or at such other time on the Closing Date as OWNERS and ACQUIROR may mutually agree in writing.

4.2       Closing Date. The Closing Date of the Exchange shall take place on a date chosen by mutual agreement of OWNERS and ACQUIROR within thirty (30) days from the date of this Agreement, but not later than the date set forth in subsection 13.1(b) herein below or such later date upon which OWNERS and ACQUIROR may mutually agree in writing.

4.3       Deliveries at Closing.

(a)       OWNERS shall deliver or cause to be delivered to ACQUIROR at Closing:

(i)       Certificates representing all shares of ACQUIREE’S issued and outstanding capital stock as described in Section 1.1, each endorsed in blank by the registered owner;

(b)       ACQUIREE shall deliver or cause to be delivered to ACQUIROR at Closing:

(i)       A copy of a consent of the board of directors of ACQUIREE and copy of a consent of stockholders, if required, authorizing ACQUIREE to take the necessary steps toward Closing the transaction described by this Agreement in the form set forth in Exhibit “B”;

(ii)       A copy of a Certificate of Good Standing for ACQUIREE issued not more than thirty (30) days prior to Closing by the Nevada Secretary of State; and









(iii)       A copy of ACQUIREES Articles of Incorporation and By-Laws certified as of the Closing Date by the Secretary of ACQUIREE.

(iv)       All of ACQUIROR'S corporate records;

(v)       Such other documents, instruments or certificates as shall be reasonably requested by ACQUIROR or its counsel.

(c)       ACQUIROR shall deliver or cause to be delivered to OWNER at Closing:

(i)       A copy of a consent of the board of directors of HYBRID and of ACQUIREE authorizing HYBRID and ACQUIROR to take the necessary steps toward Closing the transaction described by this Agreement in the form set forth in Exhibit “A-1” and “A-2”;

(ii)       A copy of a Certificate of Good Standing for ACQUIROR issued not more than thirty (30) days prior to Closing by the Secretary of State of Nevada;

(iii)       Stock certificate(s) or a computer listing from ACQUIROR'S transfer agent representing the EXCHANGE SHARES to be newly issued by ACQUIROR under this Agreement, which certificates shall be in the name of the OWNERS, each in the appropriate denomination as described in Section 2;

(iv)       Articles of Incorporation and Bylaws of ACQUIROR certified as of the Closing Date by the Secretary of ACQUIROR;

(v)       Such other documents, instruments or certificates as shall be reasonably requested by ACQUIREE, OWNERS or their counsel.

4.4      Filings; Cooperation.

(a)       Prior to the Closing, the parties shall proceed with due diligence and in good faith to make such filings and take such other actions as may be necessary to satisfy the conditions precedent set forth in Section 12 below.

(b)       On and after the Closing Date, ACQUIROR, ACQUIREE and the OWNERS shall, on request and without further consideration, cooperate with one another by furnishing or using their best efforts to cause others to furnish any additional information and/or executing and delivering or using their best efforts to cause others to execute and deliver any additional documents and/or instruments, and doing or using their best efforts to cause others to do any and all such other things as may be reasonably required by the parties or their counsel to consummate or otherwise implement the transactions contemplated by this Agreement.


Section 5
REPRESENTATIONS AND WARRANTIES BY ACQUIREE AND OWNER

5.1       Subject to the schedule of exceptions, attached hereto and incorporated herein by this reference, (which schedule(s) shall be acceptable to ACQUIROR), ACQUIREE and OWNERS represent and warrant to ACQUIROR as follows:

(a)       Organization and Good Standing.

(i)       ACQUIREE. ACQUIREE is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, with the requisite corporate power and authority to enter into this Agreement and consummate the transactions contemplated hereunder and to own and operate its businesses as presently conducted, except where the failure to be or have any of the foregoing would not have a material adverse effect.  ACQUIREE is duly qualified as a foreign company or other entity to do business and is in good standing in each jurisdiction where the character of its properties owned or held under lease or the nature of its activities makes such qualification necessary, except for such failures to be so qualified or in good standing as would not, individually or in the aggregate, have a material adverse effect. The Articles of Incorporation of ACQUIREE and all Amendments thereto as presently in effect, and the Bylaws of ACQUIREE as presently in effect, both of which shall be certified by the Secretary of ACQUIREE, have been delivered to ACQUIROR and are complete and correct and since the date of such delivery, there has been no amendment, modification or other change thereto.

(ii)       OWNERS.  OWNERS are each duly organized, validly existing and in good standing under the laws of the jurisdiction of their respective organization.  OWNERS each have the requisite corporate power and authority to enter into this Agreement and consummate the transactions contemplated hereunder.

(b)       Capitalization.  

(i)       ACQUIREE’S authorized capital consists of 99,000,000 shares of common $0.0001 par value and 1,000,000 preferred stock $0.0001 par value of which, as of the date hereof, 4,230,000 shares of common stock and no shares of preferred stock are issued and outstanding (with an additional 1,155,000 reserved for issuance) and held of record solely by OWNERS. All such outstanding shares are validly issued, fully paid and non-assessable. Except as otherwise described herein, there are no other outstanding securities including options and warrants, and the 4,230,000 shares of common stock described above represent all of the ownership equity interests of ACQUIREE.

(ii)       All securities issued by ACQUIREE as of the date of this Agreement have been issued in compliance with all applicable state and federal laws. Except as set forth in the financial statements of ACQUIREE no other equity securities or debt obligations of ACQUIREE are authorized, issued or outstanding.

(c)       Subsidiaries. Except as set forth in the financial statements of ACQUIREE and in this section, ACQUIREE has no subsidiaries and no other investments, directly or indirectly, or other financial interest in any other corporation or business organization, joint venture or partnership of any kind whatsoever.

(d)       Financial Statements. ACQUIREE will deliver to ACQUIROR, prior to Closing, a copy of the unaudited balance sheet and income statement of ACQUIREE for the year ended December 31, 2006 and the six months ended June 30, 2007, as certified by the President and Treasurer of ACQUIREE as true and complete (the “ACQUIREE FINANCIAL STATEMENTS”) and attached hereto and incorporated herein as Exhibit “C”.

(e)       Absence of Undisclosed Liabilities. ACQUIREE has no liabilities which are not adequately reflected or reserved against in the ACQUIREE FINANCIAL STATEMENTS or otherwise reflected in this Agreement and ACQUIREE shall not have as of the Closing Date, any liabilities (secured or unsecured and whether accrued, absolute, direct, indirect or otherwise) which were incurred after the date of this Agreement and would be individually or in the aggregate, material to the results of operations or financial condition of ACQUIREE as of the Closing Date.

(f)       Litigation. Except as disclosed in the ACQUIREE FINANCIAL STATEMENTS, there are no (i) outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against OWNERS, ACQUIREE or their properties, and there are no (ii) actions, suits or proceedings pending, or, to the knowledge of OWNERS or ACQUIREE, threatened against or affecting OWNERS or ACQUIREE, any of their officers, employees or directors relating to their positions as such, or any of their properties, at law or in equity, or before or by any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, in connection with the business, operations or affairs of ACQUIREE which might result in any material adverse change in the operations or financial condition of ACQUIREE, or which might prevent or materially impede the consummation of the transactions under this Agreement.

(g)       Compliance with Laws. To the best of their knowledge, the operations and affairs of ACQUIREE do not violate any law, ordinance, rule or regulation currently in effect, or any order, writ, injunction or decree of any court or governmental agency, the violation of which would substantially and adversely affect the business, financial conditions or operations of ACQUIREE.

(h)       Absence of Certain Changes. Except as set forth in the ACQUIREE FINANCIAL STATEMENTS or otherwise disclosed in writing to ACQUIROR, since the date of this Agreement:

(i)       ACQUIREE has not entered into any material transaction;










(ii)       There has been no change in financial or other condition, business, property, prospects, assets or liabilities of ACQUIREE as shown on the ACQUIREE FINANCIAL STATEMENTS, other than changes that both individually and in the aggregate do not have a consequence that is materially adverse to such condition, business, property, prospects, assets or liabilities;

(iii)       There has been no damage to, destruction of or loss of any of the properties or assets of ACQUIREE (whether or not covered by insurance) materially and adversely affecting the financial or other condition, business, property, prospects, assets or liabilities of ACQUIREE;

(iv)       ACQUIREE has not declared, or paid any dividend or made any distribution on their capital stock or member interests, redeemed, purchased or otherwise acquired any of their capital stock or member interests, granted any options to purchase shares of their stock or member interests, or issued any shares of their capital stock or member interests;

(v)       There has been no material change, except in the ordinary course of business, in the contingent obligations of ACQUIREE by way of guaranty, endorsement, indemnity, and warranty or otherwise;

(vi)       There have been no loans made by ACQUIREE to its employees, officers or directors;

(vii)       There have been no waivers or compromises by ACQUIREE of a valuable right or of a material debt owed to them;

(viii)       There have been no extraordinary increases in the compensation of any of ACQUIREE employees, officers or directors;

(ix)       There has been no agreement or commitment by ACQUIREE to do or perform any of the acts described in this Section 5.1(h); and

(x)       There has been no other event or condition of any character, which might reasonably be expected either to result in a material and adverse change in the condition (financial or otherwise), business, property, prospects, assets or liabilities of ACQUIREE or to impair materially the ability of ACQUIREE to conduct the business now being conducted.

(i)       Employees. There are, except as disclosed in the ACQUIREE FINANCIAL STATEMENTS no collective bargaining, bonus, profit sharing, compensation, or other plans, agreements or arrangements between ACQUIREE and any of its directors, officers or employees. Employee agreements will be supplied at the Closing.

(j)       Assets. All of the assets reflected on the ACQUIREE FINANCIAL STATEMENTS or acquired and held as of the Closing Date, will be owned by ACQUIREE on the Closing Date.  ACQUIREE owns outright and have good and marketable title, or holds valid and enforceable leases, to all of such assets. None of ACQUIREE’s equipment used by ACQUIREE in connection with its business has any material defects and all of them are in all material respects in good operating condition and repair, and are adequate for the uses to which they are being put; none of ACQUIREE’s equipment is in need of maintenance or repairs, except for ordinary, routine maintenance and repair. ACQUIREE represents that, except to the extent disclosed in or reserved against on the ACQUIREE FINANCIAL STATEMENTS, it is not aware of any accounts and contracts receivable existing that, in its judgment, would be uncollectible.

(k)       Tax Matters. All federal, foreign, state and local tax returns, reports and information statements required to be filed by or with respect to the activities of ACQUIREE have been timely filed. On the date of this Agreement, ACQUIREE is not delinquent in the payment of any such tax or assessment, and no deficiencies for any amount of such tax have been proposed or assessed.

(l)       Operating Authorities. To the best knowledge of OWNER and ACQUIREE, ACQUIREE has all material operating authorities, governmental certificates and licenses, permits, authorizations and approvals ("Permits") required to conduct its business as presently conducted.  During the period encompassed by the ACQUIREE FINANCIAL STATEMENTS, there have not been any notice or adverse development regarding such Permits; such Permits







are in full force and effect; no material violations are or have been recorded in respect of any permit; and no proceeding is pending or threatened to revoke or limit any Permit.

(m)       Continuation of Key Management. To the best knowledge of ACQUIREE, all key management personnel of ACQUIREE do not intend to continue their employment with ACQUIREE after the Closing.

(n)       Books and Records. The books and records of ACQUIREE are complete and correct, are maintained in accordance with good business practice and accurately present and reflect, in all material respects, all of the transactions therein described, and there have been no transactions involving ACQUIREE which properly should have been set forth therein and which have not been accurately so set forth.

(o)       Authority to Execute Agreement. The Board of Directors of ACQUIREE, pursuant to the power and authority legally vested in them, have duly authorized the execution and delivery by ACQUIREE of this Agreement, and have duly authorized each of the transactions hereby contemplated. ACQUIREE has the power and authority to execute and deliver this Agreement, to consummate the transactions hereby contemplated and to take all other actions required to be taken by it pursuant to the provisions hereof. ACQUIREE has taken all actions required by law, its Articles of Incorporation and By-Laws, as amended, the respective partnership or operating agreements of any joint venture in which ACQUIREE owns an interest, or otherwise to authorize the execution and delivery of this Agreement. This Agreement is valid and binding upon ACQUIREE and the OWNERS in accordance with its terms. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will constitute a violation or breach of the Articles of Incorporation, as amended, or the Bylaws, as amended, or the partnership or operating agreements of any joint venture in which ACQUIREE owns an interest, as the case may be, of ACQUIREE, or any agreement, stipulation, order, writ, injunction, decree, law, rule or regulation applicable to ACQUIREE.

(p)       Finder's Fees. Both ACQUIREE and OWNERS have not paid, and on the Closing Date will not be liable or obligated to pay, any finder's, agent's or broker's fee arising out of or in connection with this Agreement or the transactions contemplated by this Agreement.

5.2       Disclosure. At the date of this Agreement, ACQUIREE and the OWNERS, and at the Closing Date they will have, disclosed all events, conditions and facts materially affecting the business and prospects of ACQUIREE. ACQUIREE and OWNERS have not now and will not have at the Closing Date, withheld knowledge of any such events, conditions or facts which they know, or have reasonable grounds to know, may materially affect ACQUIREE business and prospects. Neither this Agreement nor any certificate, exhibit, schedule or other written document or statement, furnished to ACQUIROR by ACQUIREE and/or by OWNERS in connection with the transactions contemplated by this Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to be stated in order to make the statements contained herein or therein not misleading.


Section 6
REPRESENTATIONS AND WARRANTIES BY ACQUIROR AND HYBRID

6.1       Subject to the schedule of exceptions, attached hereto and incorporated herein by this reference, (which schedules shall be acceptable to OWNERS), ACQUIROR and HYBRID represent and warrant to ACQUIREE and the OWNERS as follows:

(a)       Organization and Good Standing. ACQUIROR and HYBRID are each currently a corporation duly organized, validly existing and in good standing under the laws of the States of Utah and Nevada, respectively, and have full corporate power and authority to own or lease their properties and to carry on their business as now being conducted and as proposed to be conducted. ACQUIROR and HYBRID are qualified to conduct business as foreign corporations in no other jurisdiction, and the failure to so qualify in any other jurisdiction does not materially, adversely affect the ability of ACQUIROR and HYBRID to carry on their business as most recently conducted. The Articles of Incorporation of ACQUIROR and HYBRID and all amendments thereto as presently in effect, and the Bylaws of ACQUIROR and HYBRID as presently in effect, both of which shall be certified by the Secretary of ACQUIROR and HYBRID. respectively, have been delivered to OWNERS and are c
 
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