|
Exhibit 2.1
ACQUISITION AGREEMENT AND PLAN OF MERGER
This ACQUISITION AND PLAN OF MERGER AGREEMENT ("Agreement") is
made on this 26
day of October, 2007 by and among BASIC SERVICES, INC. a Nevada
corporation
(the "Parent"), Adrenalina, a Nevada Corporation (the
"Dissolving Corporation")
and LQD Adrenalina, LLC and its subsidiaries, a Florida Limited
Liability
Company (the "LLC").
RECITALS:
A. Parent is a corporation formed under the laws of the State of
Nevada
pursuant to Articles of Incorporation filed with the Nevada
Secretary of State
on March 28, 2007 (the "Articles of Incorporation").
B. The Dissolving Corporation is a Nevada Corporation formed
under the laws of
the State of Nevada on September 6, 2007, as a subsidiary of
Basic Services,
Inc..
C. The LLC is a Limited Liability Company formed under the laws
of the State of
Florida pursuant to Articles of Organization filed with the
Florida Secretary
of State on September 13, 2004.
D. The respective Boards of Directors of the Parent and the
majority
shareholders of the Parent have determined that a merger of the
LLC with and
into the Dissolving Corporation and the Merger of the Dissolving
Corporation
with and into the Parent (the "Merger"), upon the terms and
subject to the
conditions set forth in this Agreement, would be fair and in the
best interests
of its respective shareholders, and its Board of Directors has
approved such
Merger, pursuant to which the Units of the LLC ("LLC Units")
issued and
outstanding immediately prior to the Effective Date of the
Merger (as defined
herein) will be exchanged for shares of the Dissolving
Corporation which will
be converted into shares of the Capital Stock of the Parent
("Parent Capital
Stock").
E. The respective Boards of Directors of the Dissolving
Corporation and the
majority shareholders of the Dissolving Corporation have
determined that a
merger of the LLC with and into the Dissolving Corporation and
the Merger of
the Dissolving Corporation with and into the Parent (the
"Merger"), upon the
terms and subject to the conditions set forth in this Agreement,
would be fair
and in the best interests of its respective shareholders, and
its Board of
Directors has approved such Merger, pursuant to which the LLC
Units issued and
outstanding immediately prior to the Effective Date of the
Merger (as defined
herein) will be exchanged for shares of the Dissolving
Corporation which will
be converted into shares of the Parent Capital Stock.
1
<PAGE>
F. The respective Managing Member of the LLC and as well as one
hundred percent
(100%) of the holders of the LLC Units (the "LLC Unit Holders")
have determined
that the Merger, upon the terms and subject to the conditions
set forth in this
Agreement, would be fair and in the best interests of the LLC
Unit Holders, and
its Managing Member has approved the Merger.
G. The Parent, Dissolving Corporation, and the LLC desire to
make certain
representations, warranties, covenants and agreements in
connection with the
Merger and also to prescribe various conditions to the
Merger.
H. For federal income tax purposes, the parties intend that the
Merger shall
qualify as a reorganization under the provisions of Section 368
of the Internal
Revenue Code of 1986, as amended (the "Code").
NOW, THEREFORE, in consideration of the representations,
warranties, covenants
and agreements contained in this Agreement, the parties agree as
follows:
I. DEFINITIONS
When used in this Agreement (and any Exhibits and Schedules in
which terms are
not otherwise defined), the following terms shall have the
following meanings:
1.01 Capital Stock
"Capital Stock" shall mean the outstanding shares of common
stock, $0.001 par
value, of Parent or Dissolving Corporation.
1.02 Certificate of Merger
"Certificate of Merger" shall mean a Certificate of Merger in
substantially the
form attached to this Agreement as Exhibit A and to be filed
with the States of
Nevada and Florida.
1.03 Closing
"Closing" shall mean the closing of the transactions
contemplated by this
Agreement.
1.04 Effective Date
"Effective Date" shall mean the later date of which the
Certificate of Merger
is properly filed with the Secretaries of State of Florida and
Nevada as
required under the applicable provisions of the law of such
jurisdictions, or
such later date as may be agreed by the parties and set forth in
the
Certificate of Merger.
1.05 LLC Unit
"LLC Unit" shall mean a unit of membership interest in the
LLC.
2
<PAGE>
1.06 Surviving Corporation
"Surviving Corporation" shall mean the Parent from and after the
Effective
Date, which shall remain a Parent organized under the laws of
the State of
Nevada and Nevada Statutes.
1.07 Material Adverse Change
"Material Adverse Change" or "Material Adverse Effect" means,
when used in
connection with the LLC or Parent, any change or effect that
either
individually or in the aggregate with all other such changes or
effects is
materially adverse to the business, assets, properties,
condition (financial or
otherwise) or results of operations of such party and its
subsidiaries taken as
a whole (after giving effect in the case of Parent to the
consummation of the
Merger).
1.08 Person
"Person" means an individual, corporation, partnership, joint
venture,
association, trust, unincorporated organization or other
entity.
1.09 Subsidiary
A "Subsidiary" of any person means another person, an amount of
the voting
securities, other voting ownership or voting partnership
interests of which is
sufficient to elect at least a majority of its Board of
Directors or other
governing body (or, if there are no such voting interests, fifty
percent (50%)
or more of the equity interests of which) is owned directly or
indirectly by
such first person.
II. THE MERGER
2.01 The Merger. Upon the terms and subject to the conditions
set forth in
this Agreement, and in accordance with Nevada Corporations Code
(the "Nevada
Statutes") and Florida Revised Statutes (the "Florida
Statutes"), the LLC shall
be merged with and into the Dissolving Corporation and the
Dissolving
Corporation shall be merged into the Parent at the Effective
Date of the
Merger. At the Effective Date of the Merger, the separate
existence of the LLC
and the Dissolving Corporation shall cease, and the Parent shall
continue as
the surviving corporation (the "Surviving Corporation") and
shall change its
name to Adrenalina, Inc. by filing an amendment to its Articles
of
Incorporation with the Secretary of State of Nevada.
2.02 Closing. Unless this Agreement shall have been terminated
and the
transactions herein contemplated shall have been abandoned
pursuant to Section
9.1 and subject to the satisfaction or waiver of the conditions
set forth in
Article IV, the closing of the Merger (the "Closing") will take
place at 10:00
a.m. on the business day after satisfaction of the conditions
set forth in
Article IV (or as soon as practicable thereafter following
satisfaction or
waiver of the conditions set forth in Article IV) (the "Closing
Date"), at the
Law Offices of Thomas C. Cook, 500 N. Rainbow, Suite 300, Las
Vegas, NV, unless
another date, time or place is agreed to in writing by the
parties hereto.
3
<PAGE>
2.03 Procedure for Closing.
At or prior to Closing, the following will occur:
(a) The LLC Unit Holders shall surrender the certificates
evidencing one
hundred percent (100%) of the LLC Units, duly endorsed with
Medallion
Guaranteed stock powers attached and all Units of the LLC issued
and
outstanding immediately prior to the Effective Date of the
Merger, shall no
longer be outstanding and shall automatically be cancelled and
retired and
shall cease to exist, and each holder of a certificate
representing any such
LLC Units shall cease to have any rights with respect thereto,
except the
common shares of the Surviving Corporation to be issued in
consideration
therefore upon surrender of such certificate representing LLC
Units.
(b) The shareholders of the Dissolving Corporation shall
surrender the
certificates evidencing one hundred percent (100%) of the
Dissolving
Corporation's Capital Stock, duly endorsed with Medallion
Guaranteed stock
powers attached and all Capital Stock of the Dissolving
Corporation issued and
outstanding immediately prior to the Effective Date of the
Merger, shall no
longer be outstanding and shall automatically be cancelled and
retired and
shall cease to exist, and each holder of a certificate
representing any such
Capital Stock of the Dissolving Corporation shall cease to have
any rights with
respect thereto, except the common shares of the Surviving
Corporation to be
issued in consideration therefore upon surrender of such
certificate
representing Capital Stock of the Dissolving Corporation.
(c) The Dissolving Corporation will issue and deliver eighteen
million
(18,000,000) shares of its Capital Stock to the Parent
representing Shares
issued in exchange for one hundred percent (100%) of the LLC
Units. The parent
will then issue and deliver eighteen million (18,000,000) of the
Parent's
Capital Stock, as set forth hereof in accordance with this
agreement in
exchange for the Dissolving Corporation's shares.
(d) Directors. The directors of the Parent shall resign and Ilia
Lekach,
Jeffrey Geller, Bryan Feldman and Joseph Bouhadana shall be the
directors of
the Surviving Corporation, until the earlier of their
resignation or removal or
until their respective successors are duly elected and
qualified, as the case
may be.
(e) Officers. At Closing, the officers of the Parent shall
resign and the
officers nominated by the LLC shall be the officers of the
Surviving
Corporation, until the earlier of their resignation or removal
or until their
respective successors are duly elected and qualified, as the
case may be. The
board will appoint Ilia Lekach as Chairman and CEO; Jeffrey
Geller as
President, CFO, and COO; Yonatan Feldman as Chief Technology
Officer; and
Jonathan Abenhaim as Senior VP of Media Operations.
4
<PAGE>
(f) At Closing, the Surviving Company will issue 353,000
unregistered shares to
Gilford Securities, New York, NY to be paid as referral fee
compensation for
the introduction to LQD Adrenalina, LLC. The two largest
shareholders of Basic
Services, Inc. have agreed to pay Gilford Securities the sum of
Thirty Thousand
($30,000) Dollars for the introduction, and the Parent has
agreed to transfer
the assets, any intellectual property and liabilities to the two
largest
shareholders of Basic Services, Inc.
2.04 Effective Date of Merger. As soon as practicable following
the
satisfaction or waiver of the conditions set forth in Article
IV, the parties
shall file Articles of Merger with the respective Secretaries of
State of
Florida and Nevada (the "Articles of Merger") executed in
accordance with the
relevant provisions of the Nevada and Florida Statutes shall
make all other
filings or recordings required under such Statutes. The Merger
shall become
effective at the later of such date as the Articles of Merger
are duly filed
with the Secretaries of State of Nevada and Florida, or at such
other time as
is permissible in accordance with the Nevada and Florida
Statutes and as the
Parent and the LLC shall agree (the time the Merger becomes
effective being the
"Effective Date of the Merger"). Parent shall use reasonable
efforts to have
the Closing Date and the Effective Date of the Merger to be the
same day.
2.05 Effects of the Merger. The Merger shall have the effects
set forth in the
applicable provisions of Nevada and Florida Statutes.
2.06 Articles of Incorporation; Bylaws; Purposes.
(a) The Certificate of Incorporation of the Parent in effect
immediately prior
to the Effective Date of the Merger shall be the Certificate of
Incorporation
of the Surviving Corporation until thereafter changed or amended
as provided
therein or by applicable law.
(b) The Bylaws of the Parent in effect at the Effective Date of
the Merger
shall be the Bylaws of the Surviving Corporation until
thereafter changed or
amended as provided therein or by applicable law.
(c) The purposes of the Surviving Corporation and the total
number of its
authorized capital stock shall be as set forth in the
Certificate of
Incorporation of the Parent in effect immediately prior to the
Effective Date
of the Merger until such time as such purposes and such number
may be amended
as provided in the Certificate of Incorporation of the Surviving
Corporation
and by applicable law.
5
<PAGE>
III. EFFECT OF THE MERGER ON THE CAPITAL STOCK OF THE
CONSTITUENT CORPORATIONS
3.01 Effect on Capital Stock. As of the Effective Date of the
Merger, by
virtue of the Merger and without any action on the part of the
holders of the
LLC Units:
(a) Exchange. At closing, each LLC Unit issued and outstanding
immediately
prior to the Effective Date of the Merger shall be converted so
than one and
eight tenths (1.8) shares of Dissolving Corporation's Capital
Stock is issued
for each one (1) LLC Unit held and which shall be exchanged into
the Parent's
Capital Stock at a ratio of one (1) share of the Dissolving
Corporation's stock
for one (1) share of Parent's Capital Stock ("the Merger
Consideration"). Upon
Closing the newly issued Capital Stock of the Parent shall be
the issued and
outstanding capital stock of the Surviving Corporation. After
the issuance of
the Merger Consideration the Surviving Corporation shall have
18,353,000 shares
of its Capital Stock outstanding.
(b) No fractional Stock shall be issued in the Merger. If the
product of the
number of shares a LLC shareholder holds immediately prior to
the Closing
multiplied by the exchange ratio would result in the issuance of
a fractional
share of Dissolving Corporation's Capital Stock, that product
will be rounded
down to the nearest whole number of shares of Dissolving
Corporation's Capital
Stock and be exchanged for Parent Capital Stock if it is equal
to or less than
the fraction of one-half (.5) of one Parent Capital Stock or
round up to the
nearest whole number of shares of Parent Capital Stock if the
said product is
greater than the fraction of one-half (.5) of one Parent Capital
Stock.
(c) If at any time after the Effective Date, the Surviving
Corporation
considers or is advised that any other actions or things are
necessary or
desirable (a) to vest, perfect, or confirm of record or
otherwise in the LLC
its right, title, or interest in, to, or under any of the
rights, properties,
or assets of the LLC or (b) to otherwise carry out the
provisions of this
Agreement, the Surviving Corporation is authorized, in the name
and on behalf
of the LLC, to execute and deliver all proper deeds,
assignments,
confirmations, and assurances in law, and do all such actions as
may be
necessary or desirable to vest, perfect, or confirm in the
Surviving
Corporation all rights, title, and interests in, to, and under
such rights,
properties, or assets or to otherwise carry out this
Agreement.
(d) The present Officers and Directors of Parent will cooperate
and sign an
undertaking to assist the Surviving Corporation in all respects
disclosing the
transactions set forth herein and other information required by
the Securities
Act of 1933.
6
<PAGE>
(e) After the Effective Date of the Merger, there shall be no
further transfer
on the records of the LLC of certificates representing the LLC
Units and there
shall be no further transfer on the records of the Dissolving
Corporation of
certificates representing the Securities of the Dissolving
Corporation. If any
certificate for such Parent Capital Stock is to be issued in a
name other than
that in which the certificate for Dissolving Corporation's or
the LLC
Securities surrendered for exchange is registered, it shall be a
condition of
such exchange that the certificate so surrendered shall be
properly endorsed,
with signature guaranteed, or otherwise in proper form for
transfer and that
the person requesting such exchange shall pay to Parent or its
transfer agent
any transfer or other taxes or other costs required by reason of
the issuance
of certificates for such Parent Capital Stock in a name other
than that of the
registered holder of the certificate surrendered, or establish
to the
satisfaction of Parent or its transfer agent that all taxes have
been paid.
(f) No Further Ownership Rights in Dissolving Corporation's
Capital Stock. All
shares of Parent Capital Stock issued upon the surrender of the
Dissolving
Corporation's Capital Stock in accordance with the terms of this
Article III
shall be deemed to have been issued (and paid) in full
satisfaction of all
rights pertaining to the Dissolving Corporation's Capital Stock
theretofore
represented by such certificates.
(g) No Further Ownership Rights in LLC Units. All shares of
Dissolving
Corporation's Capital Stock issued upon the surrender of the LLC
Units in
accordance with the terms of this Article III shall be deemed to
have been
issued (and paid) in full satisfaction of all rights pertaining
to the LLC
Units theretofore represented by such certificates.
(h) Closing. One hundred percent (100%) of the Certificates
representing the
LLC Units shall be delivered to Dissolving Corporation for
cancellation and one
hundred percent (100%) of the Certificates representing the
Dissolving
Corporation's shares shall be delivered to Parent for
cancellation.
IV. CONDITIONS PRECEDENT TO THE OBLIGATION OF THE LLC TO
CLOSE
The obligation of the LLC to complete the Closing is subject, at
the option of
the LLC, to the fulfillment on or prior to the Closing Date of
the following
Conditions, any one or more of which may be waived by the LLC
and Shareholders
in writing:
4.01 Representations and Covenants. The representations and
warranties of the
Parent and Dissolving Corporation contained in this Agreement
shall be true in
all respects on and as of the Closing Date with the same force
and effect as
though made on and as of the Closing Date. The Parent and
Dissolving
Corporation shall have performed and complied with all covenants
and agreements
required by this Agreement to be performed or complied with by
the Parent and
Dissolving Corporation on or prior to the Closing Date.
7
<PAGE>
4.02 Governmental Permits and Approvals in Corporate
Resolutions. Any and all
permits and approvals from any governmental or regulatory body
required for the
lawful consummation of the Closing shall have been obtained. The
Board of
Directors of Parent shall have approved the transactions
contemplated by this
Agreement, and Parent and Dissolving Corporation shall have
delivered to the
LLC, if requested, resolutions by their respective Board of
Directors certified
by the Secretary of Parent or Dissolving Corporation authorizing
the
transactions contemplated by this Agreement.
4.03 Satisfactory Business Review. The LLC and their
representatives shall have
completed the review of the business of Parent and Dissolving
Corporation
contemplated by this Agreement, that none of the information
revealed thereby
or in the Financial Statements has resulted in, or in the
opinion of them may
result in, an adverse change in the assets, properties,
business, operations or
condition (financial or otherwise) of Parent or Dissolving
Corporation.
4.04 No Material Adverse Change. Between the date of this
Agreement and the
Closing Date: (a) there shall have been no material adverse
change to Parent or
Dissolving Corporation or their respective business, financial
position, or
results of operation excluding events which affect companies
business
generally; (b) there shall have been no adverse federal, state,
or local
legislative or regulatory change affecting in any material
respect the
services, products or business of Parent or Dissolving
Corporation; and (c)
none of the properties or assets of Parent or Dissolving
Corporation or its
subsidiaries shall be damaged by fire, flood, casualty, act of
God or the
public enemy or other cause (regardless of insurance coverage
for such damage)
which damage may, in the opinion of LLC have a material adverse
affect on
Parent.
4.05 Litigation. No action, suit, or proceeding shall have been
instituted
before any court or governmental or regulatory body or
instituted or threatened
by any governmental or regulatory body, to restrain, modify or
prevent the
carrying out of the transactions contemplated hereby, or to seek
damages or a
discovery order in connection with such transactions, or which
has or may have,
in the opinion of the Dissolving Corporation, Parent and their
Shareholders, a
material adverse affect on the assets, properties, business,
operations, or
condition (financial or otherwise) of Parent or Dissolving
Corporation.
4.06 Parent will obtain Majority Shareholder
approval for the Merger prior to Closing.
4.07 Review of Financial Statements. The LLC designated
representatives shall
complete a satisfactory review of Financial Statements of Parent
and Dissolving
Corporation immediately prior to Closing in accordance with the
provisions
herein.
8
<PAGE>
4.08 Financial Condition. Parent shall have no assets and no
liabilities at the
time of Closing.
4.09 Mark DeStefano, an individual shareholder of the Parent
shall deliver
certificates of the Parent representing an aggregate of
9,773,750 shares of the
Capital Stock of the Parent with medallion guaranteed stock
powers attached
along with irrevocable instructions to the transfer agent to
cancel such
certificates and upon such cancellation immediately prior to
Closing Parent
will have 1,100,000 shares of its Capital Stock outstanding.
4.10 Dissolving Corporation shall have conducted no operations,
had no activity
and have not issued or undertaken any obligation to issue any
securities of any
nature other than in connection with the Merger as set forth
herein.
4.11 Other Documents. Parent and Dissolving Corporation shall
have delivered
such other documents, instruments, and certificates, if any, as
are required to
be delivered pursuant to the provisions of this Agreement or
which may
reasonably be requested in furtherance of the provisions of this
Agreement.
4.12 Agreement. The officers of Parent and Dissolving
Corporation shall have
delivered to LLC duly executed copies of this Agreement and the
Certificate of
Merger as required by applicable law.
4.13 Shareholder Approval. This Agreement and the transactions
contemplated by
this Agreement shall have been approved by one hundred percent
(100%) of the
Unit Holders of the LLC, one hundred percent (100%) of the
Shareholders of the
Dissolving Corporation, and by the majority of the Shareholders
of the Parent.
4.14 No Outstanding Opinions. Immediately before the Closing,
there shall be no
options, warrants, or other securities or agreements outstanding
for the
purchase of any Capital Stock or other interest in Parent.
4.15 Other Legal Requirements. All statutory and other legal
requirements for
the valid consummation of the Merger shall have been fulfilled.
No law or
regulation shall have passed or been enacted that would prevent
the
consummation of the transactions contemplated by this
Agreement.
4.16 Financial Condition. Dissolving Corporation shall have no
assets and no
liabilities at the time of Closing.
V. DOCUMENTS TO BE FURNISHED TO LLC BY PARENT AND DISSOLVING
CORPORATION
(a) Certified copies of resolutions of the Parent and Dissolving
Corporation
approving and authorizing the execution, delivery and
performance of this
Agreement and authorizing all of the necessary and proper action
to enable
Parent and Dissolving Corporation to comply with the terms of
this Agreement.
(b) The Corporate Book of Parent and Dissolving Corporation.
(c) A list of the states where Parent and Dissolving Corporation
are qualified
to do business.
9
<PAGE>
(d) A list of the authorized and outstanding securities of
Parent and
Dissolving Corporation certified by their transfer agents dated
within two days
prior to Closing.
(e) A list of the officers and directors of Parent and
Dissolving Corporation.
(f) Copies of the Articles of Incorporation and bylaws currently
in effect of
Parent and Dissolving Corporation.
(g) Copies of all contracts, agreements or commitments in which
Parent or
Dissolving Corporation is a party.
(h) A list of all fringe benefit plans and programs applying to
employees of
Parent and Dissolving Corporation including but not limited to,
pension, profit
sharing, life insurance, medical, bonus, incentive and similar
plans and the
approximate annual cost of each.
(i) A list of all employees of Parent and Dissolving
Corporation.
(j) A list of all letters, patents, patent applications,
inventions upon which
patent application have not yet been filed, trade names,
trademarks, trademark
registrations and applications, copyrights, copyright
registrations, both
domestic and foreign presently owned by Parent and Dissolving
Corporation
together with the corporate owner.
(k) Copies of all financing or loan agreements, mortgages or
similar agreements
to which Parent and Dissolving Corporation are a party.
(l) A list of all Parent's and Dissolving Corporation's bank
accounts,
brokerage accounts, safety deposit boxes, with the authorized
signers
indicated.
(m) Copies of all powers of attorney granted by Parent or
Dissolving
Corporation.
(n) A list of each insurance policy owned by Parent, with the
name of the
insurance carrier, the policy number, a brief description of the
coverage, the
annual premium, the corporate owner and any claims pending.
(o) A certificate from the Chief Executive Officer of Parent and
Dissolving
Corporation, to the effect that all representations and
warranties of Parent
and Dissolving Corporation made under this Agreement are true
and correct as of
the Closing, the same as though originally given to LLC on said
date.
(p) Such other instruments and documents as are required to be
delivered
pursuant to the provisions of this Agreement.
(q) Corporate minutes and/or resolutions reflecting the
Resignations and
Appoints set forth in Section 2.03 (c) and (d).
(t) The irrevocable transfer agent instruction set forth in
Section 4.09
hereof, requesting the cancellation of 9,773,750 Capital Stock
of Parent.
10
<PAGE>
VI. REPRESENTATIONS AND WARRANTIES
6.01 Representations and Warranties of the LLC. Except as set
forth in the LLC
Disclosure Schedule the LLC represents and warrants to Parent as
follows:
(a) Organization, Standing and Corporate Power. The LLC is a
Florida Limited
Liability Company duly organized, validly existing and in good
standing under
the laws of the State of Florida and has the requisite
organizational power and
authority to carry on its business as now being conducted. The
LLC is duly
qualified or licensed to do business and is in good standing in
each
jurisdiction in which the nature of its business or the
ownership or leasing of
its properties makes such qualification or licensing necessary,
other than in
such jurisdictions where the failure to be so qualified or
licensed
(individually or in the aggregate) would not have a material
adverse effect (as
defined in Section 1.7) with respect to the LLC.
(b) Subsidiaries. The LLC has the subsidiaries listed on the LLC
Disclosure
Schedule.
(c) Capital Structure. The members equity of the LLC consists of
ten million
(10,000,000) Units of the LLC'S Membership Interests which are
issued and
outstanding and held by twenty-seven (27) equity members. Except
as set forth
herein the LLC has no other securities of any nature issued,
reserved for
issuance or outstanding. All outstanding LLC Units are duly
authorized,
validly issued, fully paid and nonassessable and not subject to
preemptive
rights. There are no outstanding bonds, debentures, notes or
other
indebtedness or other securities of the LLC having the right to
vote (or
convertible into, or exchangeable for, securities having the
right to vote) on
any matters on which members of the LLC may vote. There are no
outstanding
securities, options, warrants, calls, rights, commitments,
agreements,
arrangements or undertakings of any kind to which the LLC is a
party or by
which it is bound obligating the LLC to issue, deliver or sell,
or cause to be
issued, delivered or sold, additional LLC Units or other equity
or voting
securities of the LLC or obligating the LLC to issue, grant,
extend or enter
into any such security, option, warrant, call, right,
commitment, agreement,
arrangement or undertaking. There are no outstanding contractual
obligations,
commitments, understandings or arrangements of the LLC to
repurchase, redeem or
otherwise acquire or make any payment in respect of any LLC
Units or securities
of the LLC. There are no agreements or arrangements pursuant to
which the LLC
is or could be required to register the LLC Units or other
securities under the
Securities Act of 1933, as amended (the "Securities Act") or
other agreements
or arrangements with or among any holders of the LLC Units or
with respect to
any securities of the LLC.
11
<PAGE>
(d) Authority; Noncontravention. The LLC has the requisite power
and authority
to enter into this Agreement and to consummate the Merger. The
execution and
delivery of this Agreement by the LLC and the consummation by
the LLC of the
transactions contemplated hereby have been duly authorized by
all necessary
corporate action on the part of the LLC. This Agreement has been
duly executed
and delivered by the LLC and constitutes a valid and binding
obligation of the
LLC, enforceable against the LLC in accordance with its terms.
The execution
and delivery of this Agreement do not, and the consummation of
the transactions
contemplated by this Agreement and compliance with the
provisions hereof will
not, conflict with, or result in any breach or violation of, or
default (with
or without notice or lapse of time, or both) under, or give rise
to a right of
termination, cancellation or acceleration of or "put" right with
respect to any
obligation or to loss of a material benefit under, or result in
the creation of
any lien upon any of the properties or assets of the LLC,
except, with respect
to this Agreement, for the filing of the Articles of Merger with
the
Secretaries of State of Nevada and Florida.
(e) Absence of Certain Changes or Events. Since September 13,
2004 (inception)
the LLC has conducted its business only in the ordinary course
consistent with
past practice, and there is not and has not been: (i) any
material adverse
change with respect to the LLC; (ii) any condition, event or
occurrence which
individually or in the aggregate could reasonably be expected to
have a
material adverse effect or give rise to a material adverse
change with respect
to the LLC; (iii) any event which, if it had taken place
following the
execution of this Agreement, would not have been permitted
under
|