EXHIBIT
10.1
ASSET PURCHASE
AGREEMENT
This Asset Purchase Agreement is entered into as
of August 14, 2008 (the “Agreement Date”) by and
between Zeezoo Software Corp., a Nevada corporation (the
“Purchaser”) and Enhance Skin Products Inc., a Province
of Ontario, Canada corporation (the “Seller).
WHEREAS, the Purchaser desires to purchase and
acquire from the Seller and the Seller desires to sell and assign
to the Purchaser all of the Seller’s rights, title and
interest in certain assets and certain listed liabilities that
belong to the Seller specifically set forth in Schedule A attached
hereto (the “ Assets and Liabilities
”); and
WHEREAS, the parties desire to enter into this
Agreement to set forth their mutual agreements concerning the above
matter;
NOW, THEREFORE, in consideration of the mutual
promises of the parties hereto, and of good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, it is mutually agreed by and between the parties
hereto as follows:
ARTICLE
1
SALE AND TRANSFER OF ASSETS
AND LIABILITIES; CLOSING
1.1. Sale of Assets and Liabilities
. Subject to the terms and
conditions of this Agreement and in reliance upon the
representations, warranties, covenants and agreements contained
herein, at the closing of the transactions contemplated hereby, the
Seller will sell, convey, assign and transfer the Assets and
Liabilities to the Purchaser, and the Purchaser will purchase and
acquire the Assets and Liabilities from the Seller.
1.2. Consideration . In consideration of the sale,
transfer and assignment to the Purchaser of the Assets and
Liabilities, the Purchaser shall, at Closing, issue in the name of
the Seller or in such other name as the Seller may otherwise
direct, an aggregate of 27,500,000 shares of common stock of the
Purchaser (the “ Shares ”) equal to
approximately 57.6% of the shares of common stock of the Purchaser
on a fully diluted basis (hereinafter referred to as the “
Purchase Price ”) as of the Closing Date and
the transaction set forth in this Agreement.
1.3. The Closing . The transfer and delivery of the documents
transferring the Assets and Liabilities to the Purchaser and the
Shares to the Seller and the exchange and delivery by the parties
of the other documents and instruments contemplated by this
Agreement, (the “ Closing ”) will take
place on the date hereof, subject to the satisfaction or waiver (by
the party receiving the benefit thereof) of the conditions
precedent set forth in Section 5 of this Agreement (the “
Closing Date ”) at the offices of Ellenoff
Grossman & Schole LLP, 150 East 42nd Street, New York, New York
10017, or at such other place upon which the parties shall
agree.
1.4. Deliveries. At the Closing on the Closing Date:
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The Purchaser
shall deliver or cause to be delivered to the Seller a certificate
issued in the name of the Seller, or in such other name as the
Seller may otherwise direct, evidencing the Shares.
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The Seller
shall deliver to the Purchaser executed and duly acknowledged
assignments in the forms set forth in Exhibit A hereto conveying
all right, title and interest of the Seller to the Assets and
Liabilities to the Purchaser or as otherwise modified in a manner
to comply with Nevada law.
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The Seller and
the Purchaser shall each execute and deliver such other instruments
and take such other action as may be necessary to carry out its
obligations under this Agreement; including, without limitation,
working together to cause the title to any assets to be transferred
into the name of the Purchaser in the applicable governmental
records.
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1.5. Expenses of Seller . Any liability or obligation of the Seller
arising or incurred in connection with the negotiation, preparation
and execution of this Agreement and the transactions contemplated
hereby and any fees and expenses of counsel, accountants and other
experts employed by Seller shall be paid by the Purchaser following
the Closing.
ARTICLE
2
REPRESENTATIONS AND
WARRANTIES OF THE SELLER
To induce the Purchaser to execute, deliver and
perform this Agreement, and in acknowledgement of the
Purchaser’s reliance on the following representations and
warranties (in addition to the representations and warranties in
Section 1.1), the Seller represents and warrants to the Purchaser
as follows as of the date hereof and as of the Closing
Date:
2.1. Organization . The Seller is a corporation duly organized,
validly existing and in good standing under the applicable laws of
the Province of Ontario, Canada, with the power and authority to
conduct its business as it is now being conducted and to own its
assets.
2.2. Power and Authority . The Seller has the power and authority to
execute, deliver, and perform this Agreement and the other
agreements and instruments to be executed and delivered by it in
connection with the transactions contemplated hereby, and the
Seller will have taken all necessary action to authorize the
execution and delivery of this Agreement and such other agreements
and instruments and the consummation of the transactions
contemplated hereby, including but not limited to the receipt of
all necessary regulatory approvals. The execution, delivery and
performance by the Seller of the Agreement have been duly
authorized. This Agreement is, and the other agreements and
instruments to be executed and delivered by the Seller in
connection with the transactions contemplated hereby, when such
other agreements and instruments are executed and delivered, shall
be, the valid and legally binding obligations of the Seller
enforceable against the Seller in accordance with their respective
terms.
2.3. Directors and Officers of Seller
. The duly elected or appointed
directors and the duly appointed officers of Seller are as set out
in Schedule 2.3.
2.4. Non-Contravention . Except as disclosed in Schedule 2.4, to the
Seller’s knowledge, neither the execution, delivery and/or
performance of this Agreement, nor the consummation of the
transactions contemplated hereby, will:
(a) conflict with, result in a violation of, cause
a default under (with or without notice, lapse of time or both) or give rise to a right of
termination, amendment, cancellation or acceleration of any
obligation contained in or the loss of any material benefit under,
or result in the creation of any lien, security interest, charge or
encumbrance upon any of the material properties or assets of Seller
under any term, condition or provision of any loan or credit
agreement, note, debenture, bond, mortgage, indenture, lease or
other agreement, instrument, permit, license, judgment, order,
decree, statute, law, ordinance, rule or regulation applicable to
Seller, or any of its material property or assets;
(b) violate any provision of the articles or bylaws
of Seller; or
(c)
violate any order, writ,
injunction, decree, statute, rule, or regulation of any court or
governmental or regulatory authority in the Province of Ontario,
Canada that would result in a Material Adverse Effect (defined
below).
2.5. Actions and Proceedings . Except as disclosed in Schedule 2.5 hereto, to
the knowledge of Seller, (i) there is no basis for and there is no
action, suit, judgment, claim, demand or proceeding outstanding or
pending, or threatened against or affecting Seller or which
involves any of the business, or the properties or assets of Seller
that, if adversely resolved or determined, would have a material
adverse effect on the business, operations, assets, properties, or
conditions of an entity such as Seller or Purchaser, as the case
may be, taken as a whole (a “ Material
Adverse Effect ” ), and (ii) there is no
reasonable basis for any claim or action that, based upon the
likelihood of its being asserted and its success if asserted, would
have such a Material Adverse Effect.
(a)
To the knowledge of Seller, Seller
is in compliance with, is not in default or violation in any
material respect under, and has not been charged with or received
any notice at any time of any material violation of any statute,
law, ordinance, regulation, rule, decree or other regulation in the
Province of Ontario, Canada that would constitute a Material
Adverse Effect;
(b)
To the knowledge of Seller, Seller
is not subject to any judgment, order or decree entered in any
lawsuit or proceeding applicable to its business and operations
that would result in a Material Adverse Effect; and
(c)
To the knowledge of Seller, Seller
has duly filed all reports and a return required to be filed by it
with governmental authorities in the Province of Ontario, Canada
and has obtained all governmental permits and other governmental
consents, except as may be required after the execution of this
Agreement. To the knowledge of Seller, all of such permits and
consents are in full force and effect, and no proceedings for the
suspension or cancellation of any of them, and no investigation
relating to any of them, is pending or to the knowledge of Seller,
threatened, and none of them will be adversely affected by the
consummation of this Agreement.
2.7. Filings, Consents and Approvals
. Except as set forth in Schedule
2.7, to the knowledge of Seller, no filing or registration with, no
notice to and no permit, authorization, consent, or approval of any
public or governmental body or authority or other person or entity
is necessary for the consummation by Seller of the transactions
contemplated by this Agreement.
2.8. Intellectual Property .
(a) As of Closing Date, to the knowledge of Seller,
except as set forth in Schedule 2.8(a), it exclusively owns, or is
authorized to use, legally enforceable intellectual property rights
in and to all of Seller’s intellectual property.
(i) Schedule 2.8(a)(i)
hereto sets forth, among other things, all United States and
foreign: (i) patents and patent applications,
(ii) registered or applied for trademarks, trade names, brand
names and corporate names, and service marks, (iii) Internet
domain name registrations and applications and (iv) copyright
registrations and applications owned or licensed by Seller in each
case described in clauses (i) through (iv), that are material to
the operations of the Business as presently conducted, specifying
as to each item, as applicable: (A) the title of the item;
(B) the jurisdictions in which the item is issued or
registered or in which an application for issuance or registration
has been filed; and (C) the issuance, registration or
application numbers and dates.
(ii) Schedule 2.8(a)(ii) hereto further sets forth
all material licenses, sublicenses and other agreements or
permissions under which the Seller is a licensor or licensee or
otherwise is authorized to use or practice any intellectual
property. Seller has provided to Purchaser a true and complete copy
of all such licenses, sublicenses and other agreements or
permissions listed on Schedule A.
(iii) Schedule 2.8(a)(iii) hereto further sets forth
and describes the status of any material agreements involving
intellectual property currently in negotiation or proposed by the
Seller.
(b) Except as set forth on Schedule 2.8(b) hereto,
the Seller owns, free and clear of all liens or has the right to
use all intellectual property used in the business of Seller or
that is necessary for the operation of the Seller’s
business.
(c) Except as set forth on Schedule 2.8(c) hereto,
the Seller has not been, during the three years preceding the date
of this Agreement, a party to any claim, nor, to the knowledge of
the Seller, is any claim threatened in writing, that challenges the
validity, enforceability, ownership or right to use, sell or
license any intellectual property, except for claims that,
individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect. To the knowledge of the Seller,
no third party is infringing upon any intellectual property except
for infringements that, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse
Effect.
(d) The Seller has taken all commercially
reasonable precautions to protect the secrecy, confidentiality, and
value of its trade secrets and the proprietary nature and value of
the technology included in the intellectual property, except for
failures to take such precautions that, individually or in the
aggregate, have not resulted and could not reasonably be expected
to have a Material Adverse Effect.
(e) The Seller is not, and, as a result of the
execution and delivery of this Agreement or its performance of its
obligations hereunder, will not be, in violation of any agreement
relating to any intellectual property used in the Seller’s
business, except for violation that, individually or in the
aggregate, could not reasonably be expected to result in a Material
Adverse Effect. After the completion of the transactions
contemplated by this Agreement, the Purchaser will own all right,
title and interest in and to or have a license to use all
intellectual property of Seller as of the Closing Date, except for
failures to own or have available for use that, individually or in
the aggregate, have not resulted and could not reasonably be
expected to result in a Material Adverse Effect.
2.9. Tax Matters. All Federal, provincial and other tax returns
and reports of the Seller required by law to be filed have been
duly filed, and all federal, provincial and other taxes,
assessments, fees and other governmental charges upon the Seller
with respect to its properties, assets, incomes, franchises or
business which are due and payable have been paid or a reasonable
reserve for such payment established on the Seller’s balance
sheet.
2.10. Investor Representations.
The Seller acknowledges and agrees
that the Shares representing the Purchase Price will be offered and
sold to the Seller without such offers and sales being registered
under the United States Securities Act of 1933, as amended (the
“ Securities Act ”). As such, the
Seller further acknowledges and agrees that all Shares will, upon
issuance, be “restricted securities” within the meaning
of the Securities Act.
2.11. Share Certificates. The Seller acknowledges and agrees that legend
in substantially the following form will be placed on any
certificate(s) evidencing the Shares:
THE
SHARES OF COMMON STOCK EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
'ACT'), OR UNDER ANY STATE SECURITIES LAWS. THE SHARES MAY NOT BE
SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF UNLESS A
REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS WITH RESPECT TO SUCH DISPOSITION IS THEN IN EFFECT
OR UNLESS THE PERSON PROPOSING TO MAKE THE DISPOSITION SHALL
FURNISH, WITH RESPECT TO SUCH DISPOSITION, AN OPINION OF COUNSEL
(BOTH COUNSEL AND OPINION TO BE SATISFACTORY TO THE CORPORATION) TO
THE EFFECT THAT SUCH SALE, TRANSFER, ASSIGNMENT OR OTHER
DISPOSITION WILL NOT INVOLVE ANY VIOLATION OF THE REGISTRATION
PROVISIONS OF THE ACT (OR ANY SUPERSEDING STATUTE) OR ANY
APPLICABLE STATE SECURITIES LAWS.
2.12. Issuance of Shares. The Seller represents and warrants to the
Purchaser as follows, and acknowledges that the Purchaser is
relying upon such covenants, representations and warranties in
connection with the issuance of the Shares to the
Seller:
(a) the Seller has such knowledge, sophistication
and experience in business and financial matters such that it is
capable of evaluating the merits and risks of the investment in the
Shares. The Seller has evaluated the merits and risks of an
investment in the Shares. The Seller can bear the economic risk of
this investment, and is able to afford a complete loss of this
investment;
(b) the Seller acknowledges that the
Purchaser’s success is subject to a number of significant
risks, including the risk that the Purchaser will not be able to
finance its plan of operations. The Seller further acknowledges
that (i) the Purchaser has limited cash and working capital, (ii)
the Purchaser will have to raise additional capital in order to
finance its plan of operations which capital may be raised by the
issuance of additional shares of its common stock which will result
in dilution to the Seller, and (iii) the Purchaser is working on
the Financing (defined below) but there is no assurance that the
Financing will be completed;
(c) the Shares will be acquired by the Seller for
investment for the Seller's own account, not as a nominee or agent,
and not with a view to the resale or distribution of any part
thereof, and, except for possible transfers of a portion of the
Shares to officers, directors, agents, shareholders and up to five
creditors of the Seller, that the Seller does not have any
contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participations to such person or to any
third person, with respect to any of the Shares;
(d) the Seller has been afforded access to
information about the Purchaser and the Purchaser’s financial
condition, results of operations, business, properties, management
and prospects sufficient it to evaluate its investment in the
Shares. The Seller further represents that it has had an
opportunity to ask questions and receive answers from
representatives of the Purchaser regarding the terms and conditions
of the offerings completed by the Purchaser and the business,
properties, prospects and financial condition of the Purchaser,
each as is necessary to evaluate the merits and risks of investing
in the Shares. The Seller believes it has received all the
information it considers necessary or appropriate for deciding
whether to purchase the Shares. The Seller has had full opportunity
to discuss this information with the Seller’s legal and
financial advisers prior to execution of this Agreement;
(e) the Seller acknowledges that the Purchaser will
rely on these representations in completing the issuance of the
Shares to the Seller;
(f) the Seller acknowledges that the offering of
the Shares by the Purchaser has not been reviewed by the United
States Securities and Exchange Commission or any state securities
regulatory authority; and
(g) this Agreement has been duly authorized,
validly executed and delivered by the Seller.
ARTICLE
3
REPRESENTATIONS AND
WARRANTIES OF PURCHASER
To induce the Seller to execute, deliver and
perform this Agreement, and in acknowledgement of Seller’s
reliance on the following representations and warranties, the
Purchaser hereby represents and warrants to the Seller as follows
as of the date hereof and as of the Closing Date:
3.1. Organization . The Purchaser is a corporation duly
incorporated, validly existing and in good standing under the laws
of the State of Nevada, with the power and authority to conduct its
business as it is now being conducted and to own and lease its
properties and assets.
3.2. Share Capital . The Purchaser has authorized capital
consisting of 100,000,000 shares of Common Stock, of which
68,160,000 shares of Common Stock are issued and outstanding prior
to the completion of the transactions contemplated hereby. Upon the
completion of the transactions conte
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