Exhibit 10.1
ASSET PURCHASE
AGREEMENT
This Asset
Purchase Agreement ("Agreement"), effective as of March 1,
2009, is by and among:
EMTA Holdings, Inc., a Nevada corporation ("EMTA"), and its wholly
owned subsidiary Lumea, Inc., a Nevada corporation
("Lumea"),
Easy Staffing Services, Inc.,
a Delaware corporation ("Easy"), and
its wholly-owned subsidiaries ESSI, Inc., a Delaware
corporation ("ESSI"), and Easy Staffing Solutions, Inc., an
Illinois corporation f/k/a Burton Placement Services, Inc.
("Burton") (collectively the "Sellers").
RECITALS
EMTA develops and manufactures innovative
products to conserve energy, particularly for petroleum-based
fuels. The company's engine and fuel additives are marketed under
the brands XenTx TM ,
Synergyn TM
and CleanBoost
TM brands, and are sold both to commercial and
retail customers.
Easy, ESSI and Burton are full service
employment agencies, offering temporary labor staffing, direct
placement, employee leasing, and payroll services in many states
across the country.
Lumea and Easy are parties to a Letter of Intent
dated October 17, 2008 (the "LOI"). Pursuant to the LOI, Lumea and
the Sellers established the material commercial teens regarding the
Sellers' transfer of their outstanding shares of common stock of
Easy to Lumea in exchange for shares of common stock of ETMA (the
"Original Transaction"). The parties have elected to modify
the commercial terms of the Original Transaction so that Lumea will
acquire certain assets and assume certain liabilities of each of
the Sellers in exchange for shares of EMTA and a promissory note.
This Agreement will memorialize the definitive agreement among the
parties as it relates to the modified transaction.
NOW, THEREFORE, in consideration of the
premises, and of the representations, warranties, covenants and
agreements set forth herein, the parties agree and reaffirm as
follows:
ARTICLE I
PURCHASE; CLOSING
1.1
Letter of Intent. Upon execution of this Agreement,
the LOI will be deemed terminated and of no further force or
effect. To the extent there exists a conflict of terms or
provisions in the LOI and this Agreement, the terms and provisions
of this Agreement will control.
1.2
Purchase and Sale of Assets. On and subject to the
terms and conditions of this Agreement, Lumea agrees to purchase
from the Sellers, and the Sellers agree to sell, transfer, convey,
and deliver to Lumea, all of the Acquired Assets at the Closing for
the consideration specified below in this Section 1, where
"Acquired Assets" means all of the right, title, and interest that
the Sellers possess and have the right to transfer in and to all of
their assets, including all of their:
(i) intellectual
property, goodwill associated therewith, licenses and sublicenses
granted and obtained with respect thereto, and rights thereunder,
remedies against infringements thereof, and rights to protection of
interests therein under the laws of all jurisdictions;
(ii) leases
(including equipment leases), subleases, and rights thereunder, and
improvements, fixtures, and fittings thereon;
(iii) agreements,
contracts, indentures, mortgages, instruments, security interests,
guaranties, other similar arrangements, and rights
thereunder;
(iv) accounts,
notes, and other receivables;
(v) tangible
personal property (such as inventory, equipment, supplies, and
furniture);
(vi) claims,
deposits, prepayments, refunds, causes of action, choses in action,
rights of recovery, rights of set off, and rights of recoupment
(including any such item relating to the payment of
taxes);
(vii) franchises,
approvals, permits, licenses, orders, registrations, certificates,
variances, and similar rights obtained from governments and
governmental agencies to the extent assignable or
transferable;
(viii) books,
records, ledgers, files, documents, correspondence, lists, plats,
architectural plans, drawings, and specifications, creative
materials, advertising and promotional materials, studies, reports,
and other printed or written materials; and
(ix) subject
to part (B) below, cash;
provided,
however, that the
Acquired Assets shall not include (A) the corporate charter,
qualifications to conduct business as a foreign corporation,
arrangements with registered agents relating to foreign
qualifications, taxpayer and other identification numbers, seals,
minute books, stock transfer books, blank stock certificates, and
other documents relating to the organization, maintenance, and
existence of the Sellers as corporations, (B) cash in an amount
equal to the accrued but unpaid liabilities of the Sellers in
excess of the Assumed Liabilities and the liabilities identified in
the Promissory Note, or (C) any of the rights of the Sellers under
this Agreement (or under any side agreement between the Sellers on
the one hand and EMTA or Lumea on the other hand entered into on or
after the date of this Agreement).
1.3
Assumption of Liabilities. On and subject to the
terms and conditions of this Agreement, at the Closing Lumea agrees
to assume and become responsible for all of the liabilities of the
Sellers set forth on Annex A in the aggregate amount of
approximately Two Million Two Hundred Fifty Thousand Dollars
($2,250,000) (the "Assumed Liabilities"). The parties will
perform a post-closing internal audit of the Assumed Liabilities.
Lumea hereby agrees to assume the Assumed Liabilities up to a gross
amount of $2,500,000. No amount in excess of $2,500,000 will be
deemed part of the Assumed Liabilities and the parties will agree
to revise Annex A to allocate the total amount assumed. If
the internal audit amount is $2,000,000 or less, the difference
between $2,000,000 and the actual internal audited amount will be
added to the principal amount of the Promissory Note (defined in
Section 1.4(i0 below). Lumea will not assume or have any
responsibility, however, with respect to any other obligation or
liability of the Sellers not included within the definition of
Assumed Liabilities.
1.4
Purchase Price. As consideration for the sale of the
Acquired Assets to Lumea, Lumea agrees to pay to Easy at the
Closing
(i) an
aggregate of Fifteen Million Five Hundred Thousand (15,000,000)
shares of common stock of EMTA (the "EMTA Shares"),
and
(ii) a
promissory note in the aggregate principal amount of Eight Million
Seven Hundred-Fifty Thousand Dollars ($8,750,000), in the form set
forth on Annex B (the "Promissory Note"), subject to
adjustment pursuant to Section 1.3 above.
Each of ESSI
and Burton hereby acknowledge that consideration attributable to
the Acquired Assets of ESS1 and Burton will be remitted to
Easy.
1.5
Closing. The closing of the transactions contemplated
by this Agreement (the "Closing") will take place at the
offices of Easy Staffing Services, Inc. at 10:00 a.m. on the third
business day following the satisfaction or waiver of each of the
closing conditions set forth in Article V (the "Closing
Date"), other than those conditions that can only be satisfied
on or as of the Closing Date, which must be satisfied or waived at
or as of the Closing of this Agreement.
1.6
Allocation. The Parties agree to allocate the
purchase price (and all other capitalizable costs) among the
Acquired Assets for all purposes (including financial accounting
and tax purposes) in accordance with the allocation schedule
attached hereto as Annex C.
ARTICLE II
SELLER REPRESENTATIONS AND
WARRANTIES
Each of the
Sellers severally represents and warrants to Lumea that the
statements contained in this Article II are complete and correct as
of the date of this Agreement except as set forth in the disclosure
schedule delivered by Sellers to Lumea with this Agreement (the
"Disclosure Schedule") where the sections below permit a
disclosure:
2.1
Organization. Each Seller is a corporation duly
organized, validly existing and in good standing under the laws of
the jurisdiction of its incorporation and authorized as a foreign
corporation to do business in the states where it is doing business
and has all requisite corporate power and authority to own, lease
and operate its properties and to carry on its business as now
conducted in those jurisdictions, except where failure to be so
qualified would not have a material adverse effect on the business,
assets or financial condition of the relevant Seller taken as a
whole ("Material Adverse Effect").
2.2
Authority. Each Seller has all the requisite power,
authority and legal capacity to execute and deliver this Agreement,
and each other agreement, document, or instrument or certificate
contemplated by the Agreement or to be executed by the relevant
Seller in connection with the consummation of the transactions
contemplated by this Agreement (together with this Agreement, the
"Seller Documents"), and to consummate the transactions
contemplated hereby and thereby. This Agreement has been, and each
of the Seller Documents will be at or prior to the Closing, duly
and validly executed and delivered by the Sellers and (assuming the
due authorization, execution and delivery by the other parties
hereto and thereto) this Agreement constitutes, and each of the
Seller Documents when so executed and delivered will constitute,
legal, valid and binding obligations of the Sellers, enforceable
against each in accordance with their respective obligations and
terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors'
rights and remedies generally, and subject, as to enforceability,
to general principles of equity, including principles of commercial
reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in
equity).
2.3
Ownership of Subsidiaries. Easy owns all of the
shares of ESSI and Burton free and clear of any and all liens,
charges or encumbrances. Listed on Schedule 2.3 is the list
of all aliases, doing business as (dba's), trademarks, and
servicemark names Sellers own.
2.4
No Conflicts or Consents. Except as set forth on
Schedule 2.4, execution and delivery by the Sellers of this
Agreement and the Seller Documents, the consummation of the
transactions contemplated hereby or thereby, or compliance by the
Sellers with any of the provisions hereof or thereof will not (i)
conflict with, violate, result in the breach or termination of, or
constitute a default under any note, bond, mortgage, indenture,
insurance policy, license, agreement or other instrument or
obligation to which any Seller is a party or by which Sellers or
any of the Acquired Assets are bound; (ii) violate any statute,
rule, regulation, order or decree of any governmental body or
authority by which the Sellers are bound; or (iii) result in the
creation of any lien upon the Acquired Assets except, in case of
clauses (ii) and (iii) for such violations, breaches or defaults as
would not, individually or in the aggregate, have a Material
Adverse Effect. Except as set forth on Schedule 2.4, no
consent, waiver, approval, order, permit or authorization of, or
declaration or filing with, or notification to, any person or
governmental body is required on the part of the Sellers in
connection with the execution and delivery of this Agreement or the
Seller Documents, or the compliance by the Sellers as the case may
be, with any of the provisions hereof or thereof.
2.5
Title to Assets. Except as set forth on Schedule
2.5, except as would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect, the
Sellers have (or will have, at Closing) good and marketable title
to the Acquired Assets, free and clear of all liens of any nature
whatsoever, except (i) statutory liens securing payments not yet
due (or being conducted in good faith and for which adequate
reserves have been established), (ii) liens for personal property
taxes not yet due and payable, (iii) such imperfections or
irregularities of title or liens as do not materially affect the
use of the properties or assets subject thereto or affected thereby
or otherwise materially impair business operations. The Sellers do
not own any real property. The Acquired Assets include all of the
assets and properties held for use by the Sellers necessary to
conduct their business as presently conducted. All of Sellers'
tangible assets are in good repair, have been well maintained and
are in good operating condition, do not require any material
modifications or repairs, and comply in all material respects with
applicable laws, ordinances and regulations, ordinary wear and tear
excepted.
2.6
Financial Statements. An unaudited and consolidated
income statement of Sellers for the year ended December 31, 2008,
and an unaudited and consolidated balance sheet of Sellers as of
December 31, 2008, are attached hereto on Annex D,
(collectively, the "Seller Financial Statements"). The
Seller Financial Statements were not prepared in accordance with
GAAP, but fairly present the financial condition and results of
operations of the Sellers as of the respective dates thereof and
for the periods covered thereby. The balance sheet contained in the
Seller Financial Statements fairly reflects all liabilities of the
Sellers of the types normally reflected in a balance sheet as of
the date thereon. The Sellers have elected to eliminate the
footnotes that would normally accompany a full set of financial
statements.
(i) Except
for tax returns for the fiscal year ended December 31, 2008 (which
returns are not yet due), and except as set forth on Schedule
2.7 of the Disclosure Schedules: (A) all tax returns required
to be filed by or on behalf of the Sellers have been properly
prepared and duly and timely filed with the appropriate taxing
authorities in all jurisdictions in which such tax returns are
required to be filed (after giving effect to any valid extensions
of time in which to make such filings), and all such tax returns
were true, complete and correct in all material respects; (B) all
taxes payable by or on behalf of the Sellers or in respect of their
income, assets or operations have been fully and timely paid, and
adequate reserves or accruals for taxes have been provided with
respect to any period for which tax returns have not yet been filed
or for which taxes are not yet due and owing; and (C) the Sellers
have not executed or filed with the Internal Revenue Service (the
"IRS") or any other taxing authority any agreement, waiver or other
document or arrangement extending or having the effect of extending
the period for assessment or collection of taxes (including, but
not limited to, any applicable statute of limitation), and no power
of attorney with respect to any tax matter is currently in force
except for the Sellers' tax counsel. "Tax or taxes" means all
federal, state, local, income taxes or similar governmental
charges, fees, levies or assessments.
(ii) Except
as set forth on Schedule 2.7, each of the Sellers has
withheld and paid all taxes required to have been withheld and paid
in connection with amounts paid or owing to any employee,
independent contractor, creditor, stockholder, or other third
party.
2 . 8
Litigation. Except as set forth on Schedule
2.8, there is no suit, action, proceeding, investigation, claim
or order pending or, to the knowledge of the Sellers, overtly
threatened against the Sellers (or to the knowledge of the Sellers)
pending or threatened, against any of the officers, directors or
key employees of the Sellers with respect to their business
activities on behalf of the Sellers, or to which the Sellers are
otherwise a party, which, if adversely determined, would have a
Material Adverse Effect, before any court, or before any
governmental department, commission, board, agency, or
instrumentality; nor to the knowledge of the Sellers is there any
reasonable basis for any such action, proceeding, or investigation
except as identified and detailed in a schedule provided by the
Sellers.
2.9
Compliance with Laws. Except as set forth on
Schedule 2.9, the Sellers are in compliance with all
federal, state and local statutes, laws, rules, regulations, orders
and ordinances applicable to them or to the conduct of their
business or operations or the use of their properties (including
any leased properties) and assets, except for such non-compliances
as would not, individually or in the aggregate, have a Material
Adverse Effect.
2.10
Accuracy of Statements. No representation or warranty
of the Sellers contained in this Agreement or in any Annex or
schedule hereto or in any certificate or other instrument furnished
by the Sellers pursuant to the terms hereof, taken as a whole,
contains any untrue statement of a material fact or omits to state
a material fact necessary to make the statements contained herein
or therein not misleading.
2.11
Trademarks; Software; Patents; Copyrights; and Know-How.
To the best of Sellers' knowledge, the Sellers possess,
license or otherwise have the right to use all trademarks,
software, patents, copyrights, trade secrets and proprietary
know-how ("Intangible Assets") necessary for the conduct of
their operations as conducted on the date hereof. To the best
knowledge of Sellers, none of the Intangible Assets is currently
being challenged, is involved in any pending or threatened
administrative or judicial proceeding, or conflicts in any respect
material to Sellers with any rights of any other person. To the
knowledge of Sellers, none of the Sellers' operations involves any
infringement of any proprietary right of any person.
2.12
Contracts. True and complete copies of all written
contracts and other written agreements to which any of the Sellers
is a party have been made available for review, or will be made
available for review upon Lumea's request prior to
Closing.
2.13
Employee Plans. Sellers have "employee benefit plans"
as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA") and other benefit
arrangement provided by Sellers with respect to employees,
("Employee Benefit Plans"). The Sellers are in material
compliance with such laws as govern ERISA and other benefit plans
and have filed all applicable filings or caused such filings to be
made on behalf of the Sellers. The Sellers are not aware of any
notices, orders, or other limitations from any regulatory body in
conjunction with these plans.
2.14
Property and Casualty Insurance. Each Seller has
property and casualty liability coverage on all assets of the
relevant Seller. There are no pending claims thereunder of more
than $5,000 of all insurance po
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