Exhibit 2.3
ACQUISITION
AGREEMENT
THIS ACQUISITION AGREEMENT (this “
Agreement ”) is entered into as of the 20th day of
October, 2006, by and between Joseph Hess, a Florida resident,
(hereinafter “ Hess ”) and Wireless Holdings,
Inc., a Florida corporation (hereinafter referred to as “
Holdings ”). Capitalized terms used and not defined
herein shall have the respective meanings set forth in the
Agreement of Merger and Plan of Reorganization dated as of October
17, 2006 (the “ Merger Agreement ”) among the
Purchaser, Wireless Acquisition Holdings Corp., and H2Diesel,
Inc.
RECITALS
WHEREAS, Holdings owns 100% of Action Wireless,
Inc., a Florida corporation (the ” Subsidiary
”), and with respect to which Holdings has certain assets and
liabilities as described in Exhibit A hereto and various
rights under written and oral agreements listed in Exhibit B
hereto (the “ Rights ”).
WHEREAS, it is the intention of the parties
hereto that Hess acquires 100% of issued and outstanding shares of
the Subsidiary and all of Holdings’ rights to the
Rights.
NOW, THEREFORE, for the mutual consideration set
out herein, the parties agree as follows:
AGREEMENT
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(a)
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Holdings agrees
to sell to Hess, and Hess agrees to purchase from Holdings (i)
1,000 shares of common stock, par value $.001 per share (the
“ Shares ”) of the Subsidiary and (ii) all of
Holdings’ right, title and interest in the Rights (including
all rights to receive distributions with respect to the Shares and
the Rights) at the Closing (as hereinafter defined) on the terms
and subject to the conditions set forth in this
Agreement.
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(b)
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Hess agrees to
(i) assume all duties, liabilities, responsibilities and
obligations of Holdings with respect to the Subsidiary in respect
of all periods prior to or after the date hereof (other than
liabilities arising under the Merger Agreement) and (ii) indemnify
Holdings for its liabilities, responsibilities and obligations with
respect to the Subsidiary in accordance with terms of Section 7(b)
hereof.
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2.
Representations of
Holdings .
Holdings hereby represents and warrants that, with respect to the
Subsidiary and the Rights to be transferred, effective this date
and the Closing Date, the representations listed below are true and
correct, to the best of its knowledge, information and belief. Said
representations are meant and intended by all parties to apply to
the Subsidiary and the Rights.
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(a)
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Holdings is
duly authorized to execute this Agreement and has taken all actions
required by law to properly and legally execute this
Agreement.
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This Agreement
has been, or upon execution and delivery thereof will be, duly
executed and delivered by Holdings. Upon execution, this Agreement
will be, a valid and binding obligation of Holdings, enforceable
against Holdings in accordance with its terms, except to the extent
that enforcement of the rights and remedies created hereby is
subject to bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting the rights and remedies
of creditors and to general principles of equity (regardless of
whether enforceability is considered in a proceeding in equity or
at law).
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(b)
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As of the
Closing Date, there will be issued and outstanding 1,000 shares in
the Subsidiary, all of which are owned by Holdings. Holdings has
good and marketable title to all of the Shares, and there exists no
liens, claims, options, proxies, voting agreements, charges,
security interests, or encumbrances of whatever nature (“
Liens ”) affecting such Shares.
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(c)
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Holdings does
not have any outstanding option, warrant or other right to acquire,
directly or indirectly, any securities of the Subsidiary which are
or may by their terms become entitled to vote or any securities
which are convertible or exchangeable into or exercisable for any
securities of the Subsidiary which are or may by their terms become
entitled to vote, and Holdings is not subject to any offer,
contract, arrangement, understanding or relationship (whether or
not legally enforceable) which allows or obligates Holdings to
vote, dispose of or acquire any securities of the
Subsidiary.
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(d)
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Holdings is the
sole owner of the Subsidiary and the Rights and has the unqualified
right to transfer and dispose of the Subsidiary and the Rights as
of the Closing Date.
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(e)
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There are no
liabilities, either fixed or contingent against the Subsidiary or
the Rights not reflected on Exhibit C hereto other than
contracts or obligations in the ordinary and usual course of
business; and no such contracts or obligations in the usual course
of business constitute liens or other liabilities which, if
disclosed, would alter substantially the financial condition of the
Subsidiary or the Rights, unless disclosed in Exhibit C
hereto.
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(f)
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Prior to the
Closing Date there will not be any negative material changes in the
Subsidiary or in the financial position of the Rights, except
changes arising in the ordinary course of business, which changes
will in no event adversely affect the financial position of said
Subsidiary or Rights.
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(g)
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There is no
suit, claim, action, proceeding or investigation pending or, to the
knowledge of Holdings, threatened against Holdings or the
Subsidiary that could reasonably be expected to adversely affect
Holdings performance under this Agreement or prevent or materially
delay the
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Closing.
Neither Holdings nor the Subsidiary is subject to any outstanding
order, writ, injunction or decree that could reasonably be expected
to affect Holding’s performance under this
Agreement.
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(h)
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The execution
of this Agreement will not violate or breach any agreement,
contract, or commitment to which Holdings is a party.
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3.
Representations of
Hess : Hess
hereby represents and warrants as follows:
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(a)
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Hess is a
natural person, residing at the address set forth in Section 11
hereof.
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(b)
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Hess is duly
authorized to execute this Agreement and has taken all actions
required by law to properly and legally execute this Agreement.
This Agreement has been, or upon execution and delivery thereof
will be, duly executed and delivered by Hess. Upon execution, this
Agreement will be, a valid and binding obligation of Hess,
enforceable against Hess in accordance with its terms, except to
the extent that enforcement of the rights and remedies created
hereby is subject to bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting the
rights and remedies of creditors and to general principles of
equity (regardless of whether enforceability is considered in a
proceeding in equity or at law).
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(c)
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The execution
of this Agreement will not violate or breach any agreement,
contract, or commitment to which Hess is a party.
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(d)
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There is no
suit, claim, action, proceeding or investigation pending or, to the
knowledge of Hess, threatened against Hess that could reasonably be
expected to adversely affect Hess’ performance under this
Agreement or prevent or materially delay the Closing. Hess is not
subject to any outstanding order, writ, injunction or decree that
could reasonably be expected to affect Hess’ performance
under this Agreement.
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(e)
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Hess
acknowledges his understanding that the sale of the Shares is
intended to be exempt from registration under the Securities Act of
1933, as amended (the “ Securities Act ”), by
virtue of Section 4(2) of the Securities Act and the provisions of
Regulation D promulgated thereunder (“ Regulation D
”). In furtherance thereof, Hess represents and warrants to
Holdings as follows:
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(i)
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Hess realizes
that the basis for the exemption from registration may not be
available if, notwithstanding Hess’ representations contained
herein, Hess is merely acquiring the Shares for a fixed or
determinable period in the future, or for a market rise, or for
sale if the market does not rise. Hess does not have any such
intention.
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(ii)
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Hess is
acquiring the Shares solely for Hess’ own beneficial account,
for investment purposes, and not with view to, or resale in
connection with, any distribution of the Shares.
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(iii)
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Hess has the
financial ability to bear the economic risk of his investment, has
adequate means for providing for his current needs and
contingencies, and has no need for liquidity with respect to the
investment in the Subsidiary.
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(iv)
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Hess and
Hess’ attorney, accountant, purchaser representative and/or
tax advisor, if any (collectively, “ Advisors
”), have received this Agreement, together with all exhibits
hereto, and all other documents provided by Holdings pursuant to
the requests of the Subscriber or its Advisors, if any, and have
carefully reviewed them and they understand the information
contained therein, prior to the execution of this
Agreement.
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(v)
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Hess (together
with his, her or its Advisors, if any) has such knowledge and
experience in financial and business matters as to be capable of
evaluating the merits and risks of the prospective investment in
the Subsidiary.
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Hess is an
accredited investor as defined in Ru
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