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Exhibit 2.2
ACQUISITION AGREEMENT AND PLAN OF MERGER
ACQUISITION AND PLAN OF MERGER AGREEMENT ("Agreement") made
October 23, 2007 by
and among NATIONAL FILING AGENTS, INC. a Nevada corporation
("Parent"),
National Filing Agents Acquisition Corporation, a Nevada
corporation, and
subsidiary of National Filing Agents, Inc. ("Sub"), and
Plantation Working
Interests, LLC, a private limited liability company, organized
in Texas (the
"Company").
RECITALS:
A. The Board of Directors of Parent as well as the majority of
shareholders of
the Parent and all of the Members of the Company have determined
that a merger
of Sub with and into the Company (the "Merger"), upon the terms
and subject to
the conditions set forth in this Agreement, would be fair and in
the best
interests of their respective shareholders, and such the Board
of Director of
the Parent and the Members of the LLC have approved such Merger,
pursuant to
which shares of Common Stock of the Company ("Company Common
Stock") issued and
outstanding immediately prior to the Effective Time of the
Merger (as defined
in Section 1.03) will be converted into the right to receive
Common Stock of
Parent ("Parent Common Stock") other than Dissenting Shares (as
defined in
Section 2.01(d)).
B. Parent, Sub and the Company desire to make certain
representations,
warranties, covenants and agreements in connection with the
Merger and also to
prescribe various conditions to the Merger.
C. 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:
ARTICLE I
THE MERGER
1.01 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"), Sub shall be merged with and into the Company at the
Effective
Time of the Merger. At the Effective Time of the Merger, the
separate
existence of Sub shall cease, and the Parent shall continue as
the surviving
corporation (the "Surviving Corporation") and shall change its
corporate name
to Bonanza Oil & Gas, Inc. Further, shortly after the
effective time, the
Parent has agreed to forward split is common stock on a two
point one-for-one
(2.1:1) basis.
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1.02 Closing. Unless this Agreement shall have been terminated
and the
transactions herein contemplated shall have been abandoned
pursuant to Section
7.01 and subject to the satisfaction or waiver of the conditions
set forth in
Article VI, 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 VI (or as soon as practicable thereafter following
satisfaction or
waiver of the conditions set forth in Article VI) (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.
1.03 Effective Time of Merger. As soon as practicable following
the
satisfaction or waiver of the conditions set forth in Article
VI, the parties
shall file articles of merger (the "Articles of Merger")
executed in accordance
with the relevant provisions of the Nevada Statutes and shall
make all other
filings or recordings required under Nevada Statutes. The Merger
shall become
effective at such time as the Articles of Merger are duly filed
with the
Secretary of State of Nevada, or at such other time as is
permissible in
accordance with the Nevada Statutes and as Parent and the
Company shall agree
should be specified in the Articles of Merger (the time the
Merger becomes
effective being the "Effective Time of the Merger"). Parent
shall use
reasonable efforts to have the Closing Date and the Effective
Time of the
Merger to be the same day.
1.04 Effects of the Merger. The Merger shall have the effects
set forth in the
applicable provisions of Nevada Statutes.
1.05 Articles of Incorporation; Bylaws; Purposes.
(a) The Certificate of Incorporation of the Parent in effect
immediately prior to the Effective Time 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 Time 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 Time
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.
1.06 Directors. The directors of the Parent at the Effective
Time shall resign
and the directors of the Company at the Effective Time of the
Merger 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.
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1.07 Officers. The officers of the Parent at the Effective Time
shall resign
and the officers of the Company at the Effective Time of the
Merger 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.
ARTICLE II
EFFECT OF THE MERGER
ON THE CAPITAL STOCK
OF THE CONSTITUENT CORPORATIONS
2.01 Effect on Capital Stock. As of the Effective Time of the
Merger, by
virtue of the Merger and without any action on the part of the
holders of
shares of Company Common Stock or any shares of capital stock of
Sub:
(a) Common Stock of Sub. Each share of common stock of Sub
issued and
outstanding immediately prior to the Effective Time of the
Merger shall be
converted into one share of Common Stock of the Surviving
Corporation and shall
be the issued and outstanding capital stock of the Surviving
Corporation.
(b) Cancellation of Parent-Owned Company Common Stock. Each
share of
Company Common Stock that is owned by Parent, Sub or any other
subsidiary of
Parent shall automatically be cancelled and retired and shall
cease to exist,
and no Parent Common Stock or other consideration shall be
delivered or
deliverable in exchange therefor.
(c) Conversion of Company Common Stock. Except as otherwise
provided
herein, each issued and outstanding share of Company Common
Stock shall be
converted into fully paid and nonassessable shares of Parent
Common Stock in
accordance with the Exchange Ratio described in Section 2.02
(the "Merger
Consideration"). 8,126,984 unregistered shares of said Merger
Consideration
shall be the "Initial Deposit" and deposited by the Parent with
the Exchange
Agent (as described below) further to Section 2.04(a), Section
6.02(h)(i)(j)
and Section 6.03(e)(f) herein,
(d) Dissenting Shares. Notwithstanding anything in this
Agreement to
the contrary, shares of Company Common Stock issued and
outstanding immediately
prior to the Effective Time of the Merger held by a holder (if
any) who has the
right to demand payment for and an appraisal of such shares in
accordance with
the Nevada Statutes ("Dissenting Shares") shall not be converted
into a
right to receive Merger Consideration unless such holder fails
to perfect or
otherwise loses such holder's right to such payment or
appraisal, if any. If,
after the Effective Time of the Merger, such holder fails to
perfect or loses
any such right to appraisal, each such share of such holder
shall be treated as
a share that had been converted as of the Effective Time of the
Merger into the
right to receive Merger Consideration in accordance with this
Section 2.01.
The Company shall give prompt notice to Parent of any demands
received by the
Company for appraisal of shares of Company Common Stock, and
Parent shall have
the right to participate in all negotiations and proceedings
with respect to
such demands. The Company shall not, except with the prior
written consent of
Parent, make any payment with respect to, or settle or offer to
settle, any
such demands.
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(e) Cancellation and Retirement of Company Common Stock. As of
the
Effective Time of the Merger, shares of Company Common Stock
issued and
outstanding immediately prior to the Effective Time 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
shares of Company Common Stock shall cease to have any rights
with respect
thereto, except the right to receive the applicable Merger
Consideration to be
issued in consideration therefor upon surrender of such
certificate in
accordance with Section 2.04.
2.02 Exchange Ratio. The "Exchange Ratio" is as follows:
Each share of Company Common Stock shall be converted into 1:1
of a share
of Parent Common Stock in the Merger, an Exchange Ratio of 1:1.
The Company
has a total of one million five hundred seven thousand nine
hundred thirty-
seven (1,507,937) equity membership shares issued and
outstanding owned by
seven (7) members. The Initial Deposit shall be distributable by
the Exchange
Agent effective as of the Effective Time of the Merger in
accordance with the
provisions of Section 2.04(a) herein and the Escrow Deposit
shall be
distributable pursuant to the provisions of Section 2.04(b)(iv)
herein. No
fractional Parent Common Stock shall be issued in the Merger. If
the product
of the number of shares a Company shareholder holds immediately
prior to the
Closing multiplied by the exchange ratio would result in the
issuance of a
fractional share of Parent Common Stock, that product will be
rounded down to
the nearest whole number of shares of Parent Common Stock if it
is equal to or
less than the fraction of one-half (.5) of one Parent Common
Stock or round up
to the nearest whole number of shares of Parent Common Stock if
the said
product is greater than the fraction of one-half (.5) of one
Parent Common
Stock.
2.03 Stock Options; Warrants.
(a) Assumption. At the Effective Time of the Merger, all options
to
purchase Company Common Stock then outstanding under the
Company's Stock Option
Plan (the "Company Option Plan"), and all options to purchase
Company Common
Stock then outstanding which are not under the Company Option
Plan, and all
outstanding warrants to purchase Company Common Stock then
outstanding in each
case whether vested or unvested, and the Company Option Plan
itself, shall be
assumed by Parent in accordance with Section 2.03(b) hereof.
(b) Stock Options and Warrants. At the Effective Time of the
Merger,
each outstanding option to purchase Company Common Stock (each,
a "Company
Stock Option"), whether or not granted under the Company Option
Plan, and all
outstanding warrants to purchase Company Common Stock the
outstanding whether
or not vested, shall by virtue of the Merger be assumed by
Parent. Each Company
Stock Option and Warrant so assumed by Parent under this
Agreement will
continue to have, and be subject to, the same terms and
conditions of such
options immediately prior to the Effective Time of the Merger
(including,
without limitation, any repurchase rights or vesting provisions
and provisions
regarding the acceleration of vesting on certain transactions),
except that (i)
each Company Stock Option and Warrant will be exercisable (or
will become
exercisable in accordance with its terms) for that number of
whole shares of
Parent Common Stock equal to the product of the number of
Company Shares that
were issuable
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upon exercise of such Company Stock Option or Warrant
immediately prior to the
Effective Time of the Merger multiplied by the Exchange Ratio,
rounded down to
the nearest whole number of shares of Parent Common Stock if the
said product
is equal to or less than the fraction of one-half (.5) of one
Parent Common
Stock or rounded up to the nearest whole number of shares of
Parent Common
Stock if the said product is greater than the fraction of
one-half (.5) of one
Parent Common Stock, and (ii) the per share exercise price for
the shares of
Parent Common Stock issuable upon exercise of such assumed
Company Stock Option
and Warrant will be equal to the quotient determined by dividing
the exercise
price per Company Share at which such Company Stock Option and
Warrant was
exercisable immediately prior to the Effective Time of the
Merger by the
Exchange Ratio, rounded up to the nearest whole cent. Parent
shall comply with
the terms of all such Company Stock Options and Warrants and use
its best
efforts to ensure, to the extent required by, and subject to the
provisions of,
the Company Option Plan and permitted under the Code or other
relevant laws and
regulations that any Company Stock Option that qualified for tax
treatment
under Section 424(b) of the Code prior to the Effective Time of
the Merger
continue to so qualify after the Effective Time of the Merger.
Parent shall
take all corporate actions necessary to reserve for issuance a
sufficient
number of shares of Parent Common Stock for delivery upon
exercise of all
Company Stock Options and Warrants on the terms set forth in
this Section
2.03(b).
2.04 Exchange of Certificates
(a) Exchange Agent. As soon as reasonably practicable as of or
after
the Effective Time of the Merger, Parent shall deposit the
Initial Deposit with
its transfer agent (the "Exchange Agent"), for the benefit of
the holders of
shares of Company Common Stock, for exchange in accordance with
this Article
II. Any shares remaining in the Escrow Deposit (as described
below) after the
Settlement Date (as described below) will be transferred by the
Escrow Agent
(as described below) to the Exchange Agent further to the
provisions of Section
2.04(b)(vi) herein, for the benefit of the holders of shares of
Company Common
Stock, for disbursement pro rata to the holders of shares of
Company Common
Stock as of the Effective Date of the Merger.
(b) Escrow Deposit.
(i) At the Effective Time of the Merger, Parent will cause
to
be delivered to the law offices of Thomas C. Cook, as escrow
agent (the "Escrow
Agent") the Merger Consideration Escrow Deposit and the Parent
Escrow Deposit
to be held pursuant by the Escrow Agent.
(ii) The settlement date (the "Settlement Date") shall be
such date which is within three months from the Effective Time
of the Merger
and the date of the resolution of any contests further to
Section 8.03 herein.
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(iii) After the Settlement Date (a) all shares of the Parent
Escrow Deposit pursuant to which Indemnity Claims were paid
further to the
provisions of the Escrow Agreement and (b) all remaining shares,
if any, in the
Merger Consideration Escrow Deposit shall be transferred by the
Escrow Agent to
the Exchange Agent for disbursement further to Section 2.04(a)
herein, said
transfer to take place within ten (10) business days after the
Settlement Date.
Exchange Agent shall deliver stock certificates of Parent Common
Stock to
Company shareholders of record as of the date immediately prior
to the Closing
within twenty (20) business days of receiving the aforementioned
shares from
Escrow Agent. The number of shares of Parent Common Stock
referenced above and
evidenced in the delivered stock certificates to each Company
shareholder will
be in accordance with said shareholder's pro rata holding of
Company Common
Stock as of the date immediately prior to the Closing and the
terms of Section
2.02 hereof.
(c) Exchange Procedures. As soon as practicable after the
Effective
Time of the Merger, each holder of an outstanding certificate or
certificates
which prior thereto represented shares of Company Common Stock
shall, upon
surrender to the Exchange Agent of such certificate or
certificates and
acceptance thereof by the Exchange Agent, be entitled to a
certificate or
certificates representing the number of shares of Parent Common
Stock into
which the aggregate number of shares of Company Common Stock
previously
represented by such certificate or certificates surrendered
shall have been
converted pursuant to this Agreement. The Exchange Agent shall
accept such
certificates upon compliance with such reasonable terms and
conditions as the
Exchange Agent may impose to effect an orderly exchange thereof
in accordance
with normal exchange practices. After the Effective Time of the
Merger, there
shall be no further transfer on the records of the Company or
its transfer
agent of certificates representing shares of Company Common
Stock and if such
certificates are presented to the Company for transfer, they
shall be cancelled
against delivery of certificates for Parent Common Stock as
hereinabove
provided. If any certificate for such Parent Common Stock is to
be issued in a
name other than that in which the certificate for Company Common
Stock
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 Common 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.
Until surrendered as contemplated by this Section 2.04(b), each
certificate for
shares of Company Common Stock shall be deemed at any time after
the Effective
Time of the Merger to represent only the right to receive upon
such surrender
the Merger Consideration as contemplated by Section 2.01.
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(d) Distributions with Respect to Unexchanged Shares. No
dividends or
other distributions with respect to Parent Common Stock with a
record date
after the Effective Time of the Merger shall be paid to the
holder of any
unsurrendered certificate for shares of Company Common Stock
with respect to
the shares of Parent Common Stock represented thereby until the
surrender of
such certificate in accordance with this Article II. In
addition, after the
Settlement Date, all remaining shares, if any, in the Parent
Escrow Deposit
shall be transferred by the Escrow Agent to the Parent for
cancellation, said
transfer to take place within ten (10) business days after the
Settlement Date.
(e) No Further Ownership Rights in Company Common Stock. All
shares
of Parent Common Stock issued upon the surrender for exchange of
certificates
representing shares of Company Common Stock in accordance with
the terms of
this Article II shall be deemed to have been issued (and paid)
in full
satisfaction of all rights pertaining to the shares of Company
Common Stock
theretofore represented by such certificates.
(f) No Liability. None of Parent, Sub, the Company or the
Exchange
Agent shall be liable to any person in respect of any shares of
Parent Common
Stock (or dividends or distributions with respect thereto)
delivered to a
public official pursuant to any applicable abandoned property,
escheat or
similar law. If any certificates representing shares of Company
Common Stock
shall not have been surrendered prior to November 30, 2007 any
such shares,
dividends or distributions in respect of such certificate shall,
to the extent
permitted by applicable law, become the property of the
Surviving Corporation,
free and clear of all claims or interests of any person
previously entitled
thereto.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
3.01 Representations and Warranties of the Company. Except as
set forth in
the Company Disclosure Schedule (as defined in subsection
3.01(a)), attached
hereto, or a certain schedule comprising the Disclosure
Schedule, the Company
represents and warrants to Parent and Sub as follows:
(a) Organization, Standing and Corporate Power. The Company
was
organized as a limited liability company on August 17, 2007,
under the laws of
the State of Texas and is a predecessor to Plantation
Exploration, Inc.
Plantation Working Interests, LLC was originally capitalized
with $950,000.
This Limited Liability Company has since operated as an investor
in oil and gas
projects. The Company acquired 8 oil and gas wells in Gonzales
County, Texas.
The Company has the requisite organizational power and authority
to carry on
its business as now being conducted. The Company 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
9.02) with
respect to the Company.
(b) Subsidiaries. The Company does own subsidiaries, directly
or
indirectly, and the share ownership in the Company reflects
proportional
ownership of the subsidiaries.
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(c) Capital Structure. The equity of the Company consists of
one
million five hundred seven thousand nine hundred thirty-seven
(1,507,937)
equity membership shares issued and outstanding owned by seven
(7) members.
Except as set forth above, no equity shares of capital stock or
other equity
securities of the Company are issued, reserved for issuance or
outstanding.
All outstanding equity shares of capital stock of the Company
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 Company having the right
to vote (or
convertible into, or exchangeable for, securities having the
right to vote) on
any matters on which the members of the Company may vote. The
Company
Disclosure Schedule sets forth the outstanding Capitalization of
the Company.
Except as set forth above, there are no outstanding securities,
options,
warrants, calls, rights, commitments, agreements, arrangements
or undertakings
of any kind to which the Company is a party or by which it is
bound obligating
the Company to issue, deliver or sell, or cause to be issued,
delivered or
sold, additional shares of capital stock or other equity or
voting securities
of the Company or obligating the Company to issue, grant, extend
or enter into
any such security, option, warrant, call, right, commitment,
agreement,
arrangement or undertaking. Other than the Company Stock Options
and Company
Warrants, there are no outstanding contractual obligations,
commitments,
understandings or arrangements of the Company to repurchase,
redeem or
otherwise acquire or make any payment in respect of any shares
of capital stock
of the Company.
(d) Authority; Noncontravention. The Company has the
requisite
corporate and other power and authority to enter into this
Agreement and to
consummate the Merger. The execution and delivery of this
Agreement by the
Company and the consummation by the Company of the transactions
contemplated
hereby have been duly authorized by all necessary corporate
action on the part
of the Company. This Agreement has been duly executed and
delivered by the
Company and constitutes a valid and binding obligation of the
Company,
enforceable against the Company 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 Company
under, (i) the
Articles of Incorporation or Bylaws of the Company, (ii) any
loan or credit
agreement, note, bond, mortgage, indenture, lease or other
agreement,
instrument, permit, concession, franchise or license applicable
to the Company,
its properties or assets, or (iii) subject to the governmental
filings and
other matters referred to in the following sentence, any
judgment, order,
decree, statute, law, ordinance, rule, regulation or arbitration
award
applicable to the Company, its properties or assets. No consent,
approval,
order or authorization
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of, or registration, declaration or filing with, or notice to,
any federal,
state or local government or any court, administrative agency or
commission or
other governmental authority, agency, domestic or foreign (a
"Governmental
Entity"), is required by or with respect to the Company in
connection with the
execution and delivery of this Agreement by the Company or the
consummation by
the Company of the transactions contemplated hereby, except,
with respect to
this Agreement, for the filing of the Articles of Merger with
the Secretary of
State of Nevada.
(e) Absence of Certain Changes or Events. Since August 17,
2007
(inception) the Company 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 Company; (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 Company; (iii) any event which, if it
had taken
place following the execution of this Agreement, would not have
been permitted
by Section 4.01 without prior consent of Parent; or (iv) any
condition, event
or occurrence which could reasonably be expected to prevent,
hinder or
materially delay the ability of the Company to consummate the
transactions
contemplated by this Agreement.
(f) Litigation; Labor Matters; Compliance with Laws.
(i) There is no suit, action or proceeding or investigation
pending or, to the knowledge of the Company, threatened against
or affecting
the Company or any basis for any such suit, action, proceeding
or investigation
that, individually or in the aggregate, could reasonably be
expected to have a
material adverse effect with respect to the Company or prevent,
hinder or
materially delay the ability of the Company to consummate the
transactions
contemplated by this Agreement, nor is there any judgment,
decree, injunction,
rule or order of any Governmental Entity or arbitrator
outstanding against the
Company having, or which, insofar as reasonably could be
foreseen by the
Company, in the future could have, any such effect.
(ii) The Company is not a party to, or bound by, any
collective bargaining agreement, contract or other agreement or
understanding
with a labor union or labor organization, nor is it the subject
of any
proceeding asserting that it has committed an unfair labor
practice or seeking
to compel it to bargain with any labor organization as to wages
or conditions
of employment nor is there any strike, work stoppage or other
labor dispute
involving it pending or, to its knowledge, threatened, any of
which could have
a material adverse effect with respect to the Company.
(iii) The conduct of the business of the Company complies
with all statutes, laws, regulations, ordinances, rules,
judgments, orders,
decrees or arbitration awards applicable thereto.
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(g) Benefit Plans. The Company is not a party to any
collective
bargaining agreement or any bonus, pension, profit sharing,
deferred
compensation, incentive compensation, stock ownership, stock
purchase, phantom
stock, retirement, vacation, severance, disability, death
benefit,
hospitalization, medical or other plan, arrangement or
understanding (whether
or not legally binding) under which the Company currently has an
obligation to
provide benefits to any current or former employee, officer or
director of the
Company (collectively, "Benefit Plans").
(h) Certain Employee Payments. The Company is not a party to
any
employment agreement which could result in the payment to any
current, former
or future director or employee of the Company of any money or
other property or
rights or accelerate or provide any other rights or benefits to
any such
employee or director as a result of the transactions
contemplated by this
Agreement, whether or not (i) such payment, acceleration or
provision would
constitute a "parachute payment" (within the meaning of Section
280G of the
Code), or (ii) some other subsequent action or event would be
required to cause
such payment, acceleration or provision to be triggered.
(i) Tax Returns and Tax Payments. The Company has timely filed
all
Tax Returns required to be filed by it, has paid all Taxes shown
thereon to be
due and has provided adequate reserves in its financial
statements for any
Taxes that have not been paid, whether or not shown as being due
on any
returns. No material claim for unpaid Taxes has been made or
become a lien
against the property of the Company or is being asserted against
the Company,
no audit of any Tax Return of the Company is being conducted by
a tax
authority, and no extension of the statute of limitations on the
assessment of
any Taxes has been granted by the Company and is currently in
effect. As used
herein, "taxes" shall mean all taxes of any kind, including,
without
limitation, those on or measured by or referred to as income,
gross receipts,
sales, use, ad valorem, franchise, profits, license,
withholding, payroll,
employment, excise, severance, stamp, occupation, premium value
added, property
or windfall profits taxes, customs, duties or similar fees,,
assessments or
charges of any kind whatsoever, together with any interest and
any penalties,
additions to tax or additional amounts imposed by any
governmental authority,
domestic or foreign. As used herein, "Tax Return" shall mean any
return, report
or statement required to be filed with any governmental
authority with respect
to Taxes.
(j) Environmental Matters. The Company is in compliance with
all
applicable Environmental Laws. "Environmental Laws" means all
applicable
federal, state and local statutes, rules, regulations,
ordinances, orders,
decrees and common law relating in any manner to contamination,
pollution or
protection of human health or the environment, and similar state
laws.
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(k) Material Contract Defaults. The Company is not, or has
not,
received any notice or has any knowledge that any other party
is, in default in
any respect under any Material Contract; and there has not
occurred any event
that with the lapse of time or the giving of notice or both
would constitute
such a material default. For purposes of this Agreement, a
Material Contract
means any contract, agreement or commitment that is effective as
of the Closing
Date to which the Company is a party (i) with expected receipts
or expenditures
in excess of $100,000, (ii) requiring the Company to indemnify
any person,
(iii) granting exclusive rights to any party, (iv) evidencing
indebtedness for
borrowed or loaned money in excess of $100,000 or more,
including guarantees of
such indebtedness, or (v) which, if breached by the Company in
such a manner
would (A) permit any other party to cancel or terminate the same
(with or
without notice of passage of time) or (B) provide a basis for
any other party
to claim money damages (either individually or in the aggregate
with all other
such claims under that contract) from the Company or (C) give
rise to a right
of acceleration of any material obligation or loss of any
material benefit
under any such contract, agreement or commitment.
(l) Properties. The Company has good, clear and marketable title
to
all the tangible properties and tangible assets reflected in the
latest balance
sheet as being owned by the Company or acquired after the date
thereof which
are, individually or in the aggregate, material to the Company's
business
(except properties sold or otherwise disposed of since the date
thereof in the
ordinary course of business), free and clear of all material
liens.
(m) Trademarks and Related Contracts. To the knowledge of the
Company:
(i) As used in this Agreement, the term "Trademarks" means
trademarks, service marks, trade names, Internet domain names,
designs,
slogans, and general intangibles of like nature; the term "Trade
Secrets" means
technology; trade secrets and other confidential information,
know-how,
proprietary processes, formulae, algorithms, models, and
methodologies; the
term "Intellectual Property" means patents, copyrights,
Trademarks,
applications for any of the foregoing, and Trade Secrets; the
term "Company
License Agreements" means any license agreements granting any
right to use or
practice any rights under any Intellectual Property (except for
such agreements
for shrink-wrap or click wrap software or other off-the-shelf
products that are
generally available for less than $25,000), and any written
settlements
relating to any Intellectual Property, to which the Company is a
party or
otherwise bound; and the term "Software" means any and all
computer programs,
including any and all software implementations of algorithms,
models and
methodologies, whether in source code or object code.
(ii) To the knowledge of the Company, none of the Company's
Intellectual Property, Software or Company License Agreements
infringe upon the
rights of any third party that may give rise to a cause of
action or claim
against the Company or its successors.
(n) Board Recommendation. The Members of the Company have
unanimously
determined that the terms of the Merger are fair to and in the
best interests
of the shareholders of the Company and recommended that the
holders of the
shares of Company Common Stock approve the Merger.
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<PAGE>
(o) Required Company Vote. The affirmative vote of a majority of
the
equity shares of the Company's equity stock is the only vote of
the holders of
any class or series of the Company's securities necessary to
approve the Merger
(the "Company Shareholder Approval").
3.02 Representations and Warranties of Parent and Sub. Except as
set forth in
the disclosure schedule delivered by Parent to the Company at
the time of
execution of this Agreement (the "Parent Disclosure Schedule"),
Parent and Sub
represent and warrant to the Company as follows:
(a) Organization, Standing and Corporate Power. Each of Parent,
Sub
and the other Parent Subsidiaries (as defined in Section
3.02(b)) is (or at
Closing will be) duly organized, validly existing and in good
standing under
the laws of the State of Nevada, as is applicable, and has the
requisite
corporate power and authority to carry on its business as now
being conducted.
Each of Parent, Sub and the other Parent Subsidiaries 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 with respect
to Parent.
(b) Subsidiaries. The only direct or indirect subsidiaries of
Parent
are listed in the Parent Disclosure Schedule (together with Sub,
the "Parent
Subsidiaries"). All the outstanding shares of capital stock of
each such
Parent Subsidiary which is a corporation have been validly
issued and are fully
paid and nonassessable and, except as set forth in the Parent
Disclosure
Schedule, are owned (of record and beneficially) by Parent, free
and clear of
all Liens. Except for the capital stock of its subsidiaries,
which are
corporations, Parent does not own, directly or indirectly, any
capital stock or
other ownership interest in any corporation, partnership,
business association,
joint venture or other entity.
(c) Capital Structure. The authorized capital stock of
Parent
consists of 60,000,000 shares of Parent Common Stock, $0.001 par
value, of
which 10,231,419 shares of Parent Common Stock are issued and
outstanding.
There are no convertible notes, options and otherwise
instruments outstanding.
immediately after the Effective Time of the Merger, 6,180,000
shares of Parent
Common Stock held by the two affiliated shareholders shall be
automatically
cancelled, further to a separate Share Cancellation Agreement.
Upon the
cancellation of these shares, the Parent has agreed to transfer
the assets, any
intellectual property and liabilities to the former President of
National
Filings Agents, Inc. And, Phoenix Capital, Inc., has agreed to
pay the two
affiliated shareholders, the sum of Forty-five Thousand
($45,000) Dollars in
exchange for the benefit of the Parent to complete the
acquisition of
Plantation Working Interests, LLC. (See Exhibit B.)
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<PAGE>
Also authorized are 15,000,000 shares of preferred stock, $0.001
par value,
none of which is issued and outstanding. Except as set forth
above, no shares
of capital stock or other equity securities of Parent are
issued, reserved for
issuance or outstanding. All outstanding shares of capital stock
of Parent are,
and all shares which may be issued pursuant to this Agreement
will be, when
issued, duly authorized, validly issued, fully paid and
nonassessable and, not
subject to preemptive rights, and issued in compliance with all
applicable
state and federal laws concerning the issuance of securities.
There are no
outstanding bonds, debentures, notes or other indebtedness or
other securities
of Parent having the right to vote (or convertible into, or
exchangeable for,
securities having the right to vote) on any matters on which
shareholders of
Parent may vote. Except as set forth above, there are no
outstanding
securities, options, warrants, calls, rights, commitments,
agreements,
arrangements or undertakings of any kind to which Parent or any
of its
subsidiaries is a party or by which any of them is bound
obligating Parent or
any its subsidiaries to issue, deliver or sell, or cause to be
issued,
delivered or sold, additional shares of capital stock or other
equity
securities of Parent or any of its subsidiaries or obligating
Parent or any of
its subsidiaries to issue, deliver or sell, or cause to be
issued, delivered or
sold, additional shares of capital stock or other equity
securities of Parent
or any of its subsidiaries or obligating Parent or any of its
subsidiaries 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 Parent or any of its subsidiaries to repurchase,
redeem or
otherwise acquire or make any payment in respect of any shares
of capital stock
of Parent or any of its subsidiaries. The authorized capital
stock of Sub
consists of 75,000,000 shares of common stock, $0.001 par value
per share, no
shares have been issued.
(d) Authority; Noncontravention. Parent and Sub have all
requisite
corporate authority to enter into this Agreement and to
consummate the
transactions contemplated by this Agreement. The execution and
delivery of
this Agreement by Parent and Sub and the consummation by Parent
and Sub of the
transactions contemplated by this Agreement have been
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