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EXHIBIT 10.1
SHARE PURCHASE AND MERGER AGREEMENT
BY AND AMONG
ADVANCE TECHNOLOGIES INC.
SXAN ACQUISITION CORP.
AND
AMERICAN SXAN BIOTECH, INC.
DATED AS OF MAY 24, 2007
<PAGE>
SHARE PURCHASE AND MERGER AGREEMENT
SHARE PURCHASE AND MERGER AGREEMENT (the "AGREEMENT") dated as
of May
24, 2007 by and among Advance Technologies Inc., a corporation
formed under the
laws of the State of Nevada ("AVTX"), SXAN Acquisition Corp., a
corporation
newly formed under the laws of the State of Delaware and a
wholly owned
subsidiary of AVTX (the "MERGER SUB"), American SXAN Biotech,
Inc., a
corporation formed under the laws of the State of Delaware
("SXAN"), the
individual who is identified on the signature pages of this
Agreement as the
Investor ("INVESTOR"), and Gary Ball and Wendy Ball (the
"PRINCIPAL
SHAREHOLDERS"). Each of AVTX, the Merger Sub, SXAN and each of
the Investors or
the Principal Shareholders is referred to herein individually as
a "PARTY" and
all are referred to collectively as the "PARTIES."
PREAMBLE
WHEREAS, SXAN owns 100% of the registered capital of Tieli
XiaoXingAnling Forest Frog Breeding Co., Ltd. ("TXFF"), a
corporation organized
under the laws of The People's Republic of China;
WHEREAS, AVTX and SXAN have determined that a business
combination
between them is advisable and in the best interests of their
respective
companies and stockholders and presents an opportunity for their
respective
companies to achieve long-term strategic and financial
benefits;
WHEREAS, the Investor is affiliated with SXAN, and wishes to
purchase
certain common shares of AVTX (the "PURCHASED SHARES," as
further defined
herein) for cash (the "SHARE PURCHASE");
WHEREAS, AVTX has proposed to acquire SXAN pursuant to a
merger
transaction whereby, pursuant to the terms and subject to the
conditions of this
Agreement, SXAN shall become a wholly owned subsidiary of AVTX
through the
merger of SXAN with and into the Merger Sub (the "MERGER");
and
WHEREAS, in the Merger, all issued and outstanding shares of
capital
stock of SXAN shall be cancelled and converted into the right to
receive 100,000
Series B Convertible Shares of AVTX (the "MERGER SHARES") which
Shares, together
with the Purchased Shares, shall represent 93.5 % of the voting
power of AVTX
after the Merger;
NOW, THEREFORE, in consideration of the premises and the
mutual
covenants, representations and warranties contained herein, the
Parties,
intending to be legally bound, hereby agree as follows:
CERTAIN DEFINITIONS
As used in this Agreement, the following terms shall have the
meanings
set forth below:
"APPLICABLE LAW" means any domestic or foreign law, statute,
regulation, rule,
policy, guideline or ordinance applicable to the businesses of
the Parties, the
Merger and/or the Parties.
"DGCL" means Delaware General Corporation Law.
"KNOWLEDGE" means, in the case of AVTX or SXAN, a particular
fact or other
matter of which its Chief Executive Officer or the Chief
Financial Officer is
actually aware or which a prudent individual serving in such
capacity could be
<PAGE>
expected to discover or otherwise become aware of in the course
of conducting a
reasonable review or investigation of the corporation and its
business and
affairs.
"LIEN" means, with respect to any property or asset, any
mortgage, lien, pledge,
charge, security interest, claim, encumbrance, royalty interest,
any other
adverse claim of any kind in respect of such property or asset,
or any other
restrictions or limitations of any nature whatsoever.
"MATERIAL ADVERSE EFFECT" with respect to any entity or group of
entities means
any event, change or effect that has or would have a materially
adverse effect
on the financial condition, business or results of operations of
such entity or
group of entities, taken as a whole.
"PERSON" means any individual, corporation, partnership, trust
or unincorporated
organization or a government or any agency or political
subdivision thereof.
"SURVIVING ENTITY" shall mean SXAN as the surviving entity in
the Merger as
provided in Section 1.04.
"TAX" (and, with correlative meaning, "TAXES" and "TAXABLE")
means:
(i) any income, alternative or add-on minimum tax, gross
receipts tax,
sales tax, use tax, ad valorem tax, transfer tax, franchise tax,
profits tax,
license tax, withholding tax, payroll tax, employment tax,
excise tax, severance
tax, stamp tax, occupation tax, property tax, environmental or
windfall profit
tax, custom, duty or other tax, impost, levy, governmental fee
or other like
assessment or charge of any kind whatsoever together with any
interest or any
penalty, addition to tax or additional amount imposed with
respect thereto by
any governmental or Tax authority responsible for the imposition
of any such tax
(domestic or foreign), and
(ii) any liability for the payment of any amounts of the type
described
in clause (i) above as a result of being a member of an
affiliated,
consolidated, combined or unitary group for any Taxable period,
and
(iii) any liability for the payment of any amounts of the
type
described in clauses (i) or (ii) above as a result of any
express or implied
obligation to indemnify any other person.
"TAX RETURN" means any return, declaration, form, claim for
refund or
information return or statement relating to Taxes, including any
schedule or
attachment thereto, and including any amendment thereof.
ARTICLE I
THE TRANSACTIONS
SECTION 1.01 THE SHARE PURCHASE
(a) On the Closing Date (defined herein), the Share Purchase
shall be
consummated, in which the Investor shall purchase from AVTX an
aggregate of
fifty seven million, one hundred forty three thousand, three
hundred and two
(57,143,302) shares of the Common Stock of AVTX ("PURCHASED
SHARES") for cash
consideration of Three Hundred Twenty Five Thousand and 00/100
Dollars
($325,000.00).
(b) The Parties intend that the issuance of the Purchased Shares
to the
Investors pursuant to the Share Purchase shall be exempt from
the registration
requirements of the Securities Act of 1933 (the "SECURITIES
ACT") pursuant to
Section 4(2) of the Securities Act and the rules and regulations
promulgated
thereunder.
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SECTION 1.02 THE MERGER
Upon the terms and subject to the conditions set forth in
this
Agreement and in accordance with the DGCL, at the Effective Time
(as hereinafter
defined), all SXAN Shares (as hereinafter defined) shall be
cancelled and
converted into the right to receive the Merger Shares. In
connection therewith,
the following terms shall apply:
(a) CERTIFICATE OF DESIGNATION. Prior to the Closing, AVTX shall
file
with the Secretary of State of the State of Nevada a Certificate
of Designation
of the Series B Convertible Preferred Shares ("Series B
Preferred Shares") in
the form of SCHEDULE 1.02 hereto.
(b) EXCHANGE AGENT. Robert Brantl, Esq., counsel for SXAN, shall
act as
the exchange agent (the "EXCHANGE AGENT") for the purpose of
exchanging SXAN
Shares for the Merger Shares. At or prior to the Closing, AVTX
shall deliver to
the Exchange Agent the Merger Shares.
(c) CONVERSION OF SECURITIES.
(i) CONVERSION OF SXAN SECURITIES. At the Effective Time, by
virtue of the Merger and without any action on the part of AVTX,
SXAN or the
Merger Sub, or the holders of any of their respective
securities:
(A) Each of the issued and outstanding shares of
common stock of SXAN (the "SXAN SHARES") immediately prior to
the Effective Time
shall be converted into and represent the right to receive, and
shall be
exchangeable for, that number of Series B Preferred Shares of
AVTX as shall be
determined by dividing 100,000 by the number of then issued and
outstanding SXAN
Shares.
(B) All SXAN Shares shall no longer be outstanding
and shall automatically be canceled and retired and shall cease
to exist, and
each holder of a certificate representing any such shares shall
cease to have
any rights with respect thereto, except the right to receive the
Merger Shares
to be issued pursuant to this Section 1.02(c)(i) upon the
surrender of such
certificate in accordance with Section 1.08, without interest.
No fractional
shares may be issued; but each fractional share that would
result from the
Merger will be rounded to the nearest number of whole
shares.
(C) The Merger Shares (I) together with the Purchased
Shares acquired in the Share Purchase, shall represent 93.5%, on
a fully diluted
basis, of the voting power of all classes of issued and
outstanding stock of
AVTX at the Effective Time, after giving effect to the Merger,
and (II) shall be
convertible into 900,000,000 shares of the Common Stock of AVTX
on a fully
diluted basis at any time after the consummation of the spin-off
transaction
described in the Operating Subsidiary Agreement (as defined in
Section 5.01 (d)
hereof).
(ii) CONVERSION OF MERGER SUB STOCK. At the Effective Time,
by
virtue of the Merger and without any action on the part of SXAN,
AVTX, the
Merger Sub, or the holders of any of their respective
securities, each share of
capital stock of Merger Sub outstanding immediately prior to the
Effective Time
shall be converted into one share of the common stock of the
Surviving Entity
and the shares of common stock of the Surviving Entity so issued
in such
conversion shall constitute the only outstanding shares of
capital stock of the
Surviving Entity and the Surviving Entity shall be a wholly
owned subsidiary of
AVTX.
(d) EXEMPTION FROM REGISTRATION. The Parties intend that the
issuance
of the Merger Shares to the Investors shall be exempt from the
registration
requirements of the Securities Act pursuant to Section 4(2) of
the Securities
Act and the rules and regulations promulgated thereunder.
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(e) AGREEMENT RE CONVERSION INTO AVTX COMMON STOCK. Each
recipient of
Series B Preferred Shares of AVTX pursuant to the Merger hereby
agrees not to
convert such shares into Common Stock of AVTX until the
authorized number of
shares of AVTX Common Stock is increased.
SECTION 1.03 CLOSING
The closing of the Share Purchase and the Merger (the "CLOSING")
will
take place at the offices of Robert Brantl, Esq. within one (1)
business day
following the satisfaction or waiver of the conditions precedent
set forth in
Article V or at such other date as AVTX and SXAN shall agree
(the "CLOSING
DATE"), but in any event no later than June 30, 2007 unless
extended by a
written agreement of AVTX and SXAN.
SECTION 1.04 MERGER; EFFECTIVE TIME
At the Effective Time and subject to and upon the terms and
conditions
of this Agreement, Merger Sub shall, and AVTX shall cause Merger
Sub to, merge
with and into SXAN in accordance with the provisions of the
DGCL, the separate
corporate existence of Merger Sub shall cease and SXAN shall
continue as the
Surviving Entity. The Effective Time shall occur upon the filing
with the
Secretary of State of the State of Delaware of a Certificate of
Merger, executed
in accordance with the applicable provisions of the DGCL (the
"EFFECTIVE TIME").
The date on which the Effective Time occurs is referred to as
the "EFFECTIVE
DATE." Provided that this Agreement has not been terminated
pursuant to Article
VI, the Parties will cause the Certificate of Merger to be filed
as soon as
practicable after the Closing.
SECTION 1.05 EFFECT OF THE MERGER
The Merger shall have the effect set forth in Title 8, Section
259 of
the DGCL. Without limiting the generality of the foregoing, and
subject thereto,
at the Effective Time, all the properties, rights, privileges,
powers and
franchises of SXAN and Merger Sub shall vest in the Surviving
Entity, and all
debts, liabilities and duties of SXAN and Merger Sub shall
become the debts,
liabilities and duties of the Surviving Entity.
SECTION 1.06 CERTIFICATE OF INCORPORATION AND BYLAWS; DIRECTORS
AND
OFFICERS
Pursuant to the Merger:
(a) The Certificate of Incorporation and Bylaws of SXAN as in
effect
immediately prior to the Effective Time shall be the Certificate
of
Incorporation and Bylaws of the Surviving Entity immediately
following the
Merger.
(b) The directors and officers of the SXAN immediately prior to
the
Merger shall be the directors and officers of the Surviving
Entity subsequent to
the Merger.
SECTION 1.07 RESTRICTIONS ON RESALE
(a) Neither the Purchased Shares issued pursuant to the Share
Purchase
nor the Series B Preferred Shares issued pursuant to the Merger
will be
registered under the Securities Act, or the securities laws of
any state, and
cannot be transferred, hypothecated, sold or otherwise disposed
of until: (i) a
registration statement with respect to such securities is
declared effective
under the Securities Act, or (ii) AVTX receives an opinion of
counsel for the
holders of the shares proposed to be transferred, reasonably
satisfactory to
<PAGE>
counsel for AVTX, that an exemption from the registration
requirements of the
Securities Act is available.
The certificates representing the Purchased Shares and the
Merger
Shares which are being issued hereunder shall contain a legend
substantially as
follows:
"THE SECURITIES WHICH ARE REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY
NOT BE
SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNTIL
A
REGISTRATION STATEMENT WITH RESPECT THERETO IS DECLARED
EFFECTIVE UNDER
SUCH ACT, OR ADVANCE TECHNOLOGIES INC. RECEIVES AN OPINION OF
COUNSEL
FOR THE HOLDER REASONABLY SATISFACTORY TO COUNSEL FOR
ADVANCE
TECHNOLOGIES, INC. THAT AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS
OF SUCH ACT IS AVAILABLE."
SECTION 1.08 EXCHANGE OF CERTIFICATES
(a) EXCHANGE OF CERTIFICATES. After the Effective Time, the
holders of
the SXAN Shares shall be required to surrender all their SXAN
Shares to the
Exchange Agent, and the holders shall be entitled upon such
surrender to receive
in exchange therefor certificates representing the proportionate
number of
Merger Shares into which the SXAN Shares theretofore represented
by the stock
certificates so surrendered shall have been exchanged pursuant
to this
Agreement. Until so surrendered, each outstanding certificate
which, prior to
the Effective Time, represented SXAN Shares shall be deemed for
all corporate
purposes, subject to the further provisions of this Article I,
to evidence the
ownership of the number of whole Merger Shares for which such
SXAN Shares have
been so exchanged. No dividend payable to holders of Merger
Shares of record as
of any date subsequent to the Effective Time shall be paid to
the owner of any
certificate which, prior to the Effective Time, represented SXAN
Shares, until
such certificate or certificates representing all the relevant
SXAN Shares,
together with a stock transfer form, are surrendered as provided
in this Article
I or pursuant to letters of transmittal or other instructions
with respect to
lost certificates provided by the Exchange Agent.
(b) FULL SATISFACTION OF RIGHTS. All Merger Shares for which the
SXAN
Shares shall have been exchanged pursuant to this Article I
shall be deemed to
have been issued in full satisfaction of all rights pertaining
to the SXAN
Shares.
(c) EXCHANGE OF CERTIFICATES. All certificates representing SXAN
Shares
converted into the right to receive Merger Shares pursuant to
this Article I
shall be furnished to AVTX subsequent to delivery thereof to the
Exchange Agent
pursuant to this Agreement.
(d) CLOSING OF TRANSFER BOOKS. On the Effective Date, the
stock
transfer book of SXAN shall be deemed to be closed and no
transfer of SXAN
Shares shall thereafter be recorded thereon.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF AVTX
AVTX, the Principal Shareholders and, where applicable, the
Merger Sub
hereby jointly and severally represent and warrant to SXAN and
to the Investors,
as of the date of this Agreement, as of the Closing Date and as
of the Effective
Time, as follows:
<PAGE>
SECTION 2.01 ORGANIZATION, STANDING AND POWER
AVTX is a corporation duly incorporated, validly existing and in
good
standing under the laws of the State of Nevada, and has
corporate power and
authority to conduct its business as presently conducted by it
and to enter into
and perform this Agreement and to carry out the transactions
contemplated by
this Agreement. Merger Sub is a corporation duly incorporated,
validly existing
and in good standing under the laws of the State of Delaware,
and has corporate
power and authority to enter into and perform this Agreement and
to carry out
the transactions contemplated by this Agreement.
SECTION 2.02 SUBSIDIARIES
AVTX owns all of the outstanding capital stock of the Merger Sub
and of
Infrared Systems International, a Nevada corporation ("OPERATING
SUB"). Other
than its ownership of the Merger Sub and the Operating Sub, AVTX
does not have
an ownership interest in any Person. Merger Sub is a recently
formed corporation
and prior to the date hereof and through the Effective Date
Merger Sub shall not
conduct any operating business, become a party to any
agreements, or incur any
liabilities or obligations. Operating Sub holds the license to
certain
technology licensed to it by AVTX as its only asset.
SECTION 2.03 CAPITALIZATION
(a) There are 200,000,000 shares of capital stock of AVTX
authorized,
consisting of 100,000,000 shares of common stock, $0.001 par
value per share
(the "AVTX COMMON SHARES"), and 100,000,000 shares of preferred
stock, $0.001
par value per share ("AVTX PREFERRED SHARES"). . As of the date
of this
Agreement, there are 39,527,897 AVTX Common Shares issued and
outstanding. In
addition, AVTX has issued and outstanding and 27,011,477 rights
to acquire AVTX
Common Shares which have been designated Series A Non-Voting
Convertible
Preferred Stock, $0.001 par value per share ("SERIES A PREFERRED
SHARES").
(b) No AVTX Common Shares or AVTX Preferred Shares have been
reserved
for issuance to any Person, and there are no other outstanding
rights, warrants,
options or agreements for the purchase of AVTX Common or
Preferred Shares except
as provided in this Agreement.
(c) All outstanding AVTX Common Shares are validly issued, fully
paid,
non-assessable, not subject to pre-emptive rights and have been
issued in
compliance with all state and federal securities laws or other
Applicable Law.
The Series A Preferred Shares are not validly issued, due to the
failure to file
a certificate of designations with respect to that class of
shares, but
represent a contractual right to acquire AVTX Common Shares, and
when that right
is exercised, the AVTX Common Shares so issued will be validly
issued, fully
paid, non-assessable, not subject to pre-emptive rights. The
Common Shares to be
purchased by the Investors and the Series B Preferred Shares
issuable to the
SXAN shareholders pursuant to the Merger will, when issued
pursuant to this
Agreement, be duly and validly authorized and issued, fully paid
and
non-assessable.
SECTION 2.04 AUTHORITY FOR AGREEMENT
The execution, delivery, and performance of this Agreement by
each of
AVTX and Merger Sub has been duly authorized by all necessary
corporate and
shareholder action, and this Agreement, upon its execution by
the Parties, will
constitute the valid and binding obligation of each of AVTX and
the Merger Sub,
enforceable against each of them in accordance with and subject
to its terms,
except as enforceability may be affected by bankruptcy,
insolvency or other laws
of general application affecting the enforcement of creditors'
rights. The
execution and consummation of the transactions contemplated by
this Agreement
and compliance with its provisions by AVTX and Merger Sub will
not violate any
<PAGE>
provision of Applicable Law and will not conflict with or result
in any breach
of any of the terms, conditions, or provisions of, or constitute
a default
under, AVTX's Articles of Incorporation, Merger Sub's
Certificate of
Incorporation, or either of their Bylaws, in each case as
amended, or, in any
material respect, any indenture, lease, loan agreement or other
agreement or
instrument to which AVTX is a party or by which it or any of its
properties is
bound, or any decree, judgment, order, statute, rule or
regulation applicable to
AVTX or Merger Sub.
SECTION 2.05 FINANCIAL CONDITION
Except as set forth on Schedule 2.05 hereto, the Annual Report
on Form
10-KSB filed by AVTX for the year ended September 30, 2006 and
the Quarterly
Report on Form 10-QSB filed by AVTX for the period ended March
31, 2007 (the
"SEC Filings") are true, correct and complete in all material
respects, are not
misleading and do not omit to state any material fact which is
necessary to make
the statements contained in such public filings not misleading
in any material
respect. The financial statements included in the SEC Filings
(the "Financial
Statements") were prepared in accordance with generally accepted
accounting
principles and fairly reflect the financial condition of AVTX as
of the dates
stated and the results of its operations for the periods
presented.
SECTION 2.06 ABSENCE OF CERTAIN CHANGES OR EVENTS
Since March 31, 2007, except as reported in the Quarterly Report
filed
by AVTX with the Securities and Exchange Commission ("SEC") on
Form 10-QSB for
the period ending on that date, and except as contemplated by
this Agreement:
(a) there has not been any Material Adverse Change in the
business,
operations, properties, assets, or condition of AVTX;
(b) AVTX has not (i) amended its Articles of Incorporation;
(ii)
declared or made, or agreed to declare or make, any payment of
dividends or
distributions of any assets of any kind whatsoever to
stockholders or purchased
or redeemed, or agreed to purchase or redeem, any outstanding
capital stock;
(iii) made any material change in its method of management,
operation, or
accounting; (iv) entered into any material transaction; or (v)
made any accrual
or arrangement for payment of bonuses or special compensation of
any kind or any
severance or termination pay to any present or former officer or
employee;
(c) AVTX has not (i) borrowed or agreed to borrow any funds
or
incurred, or become subject to, any material obligation or
liability (absolute
or contingent) except liabilities incurred in the ordinary
course of business;
(ii) paid any material obligation or liability (absolute or
contingent) other
than current liabilities reflected in or shown on the most
recent AVTX balance
sheet, and current liabilities incurred since that date in the
ordinary course
of business; (iii) sold or transferred, or agreed to sell or
transfer, any
material assets, properties, or rights, or canceled, or agreed
to cancel, any
material debts or claims; or (iv) made or permitted any material
amendment or
termination of any contract, agreement, or license to which it
is a party.
SECTION 2.07 GOVERNMENTAL AND THIRD PARTY CONSENTS
No consent, waiver, approval, order or authorization of, or
registration, declaration or filing with, any court,
administrative agency or
commission or other federal, state, county, local or other
foreign governmental
authority, instrumentality, agency or commission or any third
party, including a
party to any agreement with AVTX, the Operating Sub or Merger
Sub, is required
by or with respect to AVTX, the Operating Sub or Merger Sub in
connection with
the execution and delivery of this Agreement or the consummation
of the
<PAGE>
transactions contemplated hereby, except for such consents,
waivers, approvals,
orders, authorizations, registrations, declarations and filings
as may be
required under (i) applicable securities laws, or (ii) the
Nevada Revised
Statues or the DGCL.
SECTION 2.08 LITIGATION
There is no action, suit, investigation, audit or proceeding
pending
against, or to the Knowledge of AVTX, threatened against or
affecting, AVTX or
the Merger Sub or the Operating Sub or any of their respective
assets or
properties before any court or arbitrator or any governmental
body, agency or
official.
SECTION 2.09 INTERESTED PARTY TRANSACTIONS
Except as disclosed in the SEC Filings, AVTX is not indebted to
any
officer or director of AVTX, and no such person is indebted to
AVTX.
SECTION 2.10 COMPLIANCE WITH APPLICABLE LAWS
To the Knowledge of AVTX, the business of each of AVTX, the
Operating
Sub and the Merger Sub has not been, and is not being, conducted
in violation of
any Applicable Law.
SECTION 2.11 TAX RETURNS AND PAYMENT
AVTX has duly and timely filed all material Tax Returns required
to be
filed by it and has duly and timely paid all Taxes shown thereon
to be due.
Except as disclosed in Financial Statements filed by AVTX with
the SEC, there is
no material claim for Taxes that is a Lien against the property
of AVTX other
than Liens for Taxes not yet due and payable, none of which is
material. AVTX
has not received written notification of any audit of any Tax
Return of AVTX
being conducted or pending by a Tax authority where an adverse
determination
could have a Material Adverse Effect on AVTX, no extension or
waiver of the
statute of limitations on the assessment of any Taxes has been
granted by AVTX
which is currently in effect, and AVTX is not a party to any
agreement, contract
or arrangement with any Tax authority or otherwise, which may
result in the
payment of any material amount in excess of the amount reflected
on the above
referenced AVTX Financial Statements.
SECTION 2.12 SECURITY LISTING
AVTX is a fully compliant reporting company under the
Securities
Exchange Act of 1934, as amended (the "EXCHANGE ACT"), and all
AVTX public
filings required under the Exchange Act have been made. The
common stock of AVTX
is listed for quotation on the OTC Bulletin Board. To the
Knowledge of AVTX,
AVTX has not been threatened or is not subject to removal of its
common stock
from the OTC Bulletin Board.
SECTION 2.13 FINDERS' FEES
AVTX has not incurred, nor will it incur, directly or
indirectly, any
liability for brokers' or finders' fees or agents' commissions
or investment
bankers' fees or any similar charges in connection with this
Agreement or any
transaction contemplated hereby, except that AVTX will owe
$25,000 to Jeffrey
Hausig for services rendered in connection with the transactions
contemplated by
this Agreement.
<PAGE>
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SXAN
SXAN hereby represents and warrants to AVTX and to Merger Sub,
as of
the date of this Agreement and as of the Effective Time (except
as otherwise
indicated), as follows:
SECTION 3.01 ORGANIZATION, STANDING AND POWER
SXAN is a privately held corporation duly incorporated,
validly
existing and in good standing under the laws of the State of
Delaware, and has
full corporate power and authority to conduct its business as
pre
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