COMMON
STOCK
PURCHASE
AGREEMENT
|
BETWEEN:
|
Pacel Corp., a
Nevada corporation
|
|
|
|
7621 Little
Ave., Suite 101
|
|
|
|
Charlotte, NC
28226
(“Pacel”)
|
|
|
|
Scenic
Marketing Group, LLC
|
|
|
|
1 Town Square
Blvd. Suite 347
|
|
|
|
Asheville, NC
28803
(“Scenic”)
|
WHEREAS, Scenic
desires to purchase and Pacel desires to sell and issue to Scenic
shares of Pacel’s Common Stock.
NOW, THEREFORE,
in consideration of the foregoing and for other good and valuable
consideration, the parties hereby agree as follows:
|
|
|
Purchase and Sale of Stock
|
|
|
|
|
Sale
and Issuance of Common Stock
|
Subject to the terms and conditions of this
Agreement, Scenic agrees to purchase, and Pacel agrees to sell and
issue to Scenic, at Closing, 5,454,545,455 shares of Common Stock
(“Common Stock”) for $50,000.00 and a $250,000
Letter of Credit for use in securing Workers’ Compensation
insurance with Guaranty Insurance Company, (“Purchase
Price”) . The Purchase Price shall be paid by Scenic by
check or by wire transfer and by delivering the Letter of Credit in
the form required by Guaranty Insurance Company at Closing as
defined in Section 1.2 herein.
The purchase and sale of the Common Stock shall
take place at the offices of Pacel on November 14, 2006, or such
other location and time as Pacel and Scenic mutually agree upon,
which time and place shall be designated as the
“Closing”. At the Closing, Pacel shall deliver to
Scenic a certificate representing the Common Stock against delivery
to Pacel by Scenic of the Purchase
Price.
COMMON
STOCK PURCHASE AGREEMENT - Page 1
|
|
2.
|
Representations and Warranties of
Pacel
|
Pacel represents and warrants to Scenic that, as
of the date of this Agreement:
|
|
|
|
Organization; Good Standing;
Qualification
|
Pacel is a corporation duly organized and
validly existing under the laws of the
State of Nevada and has the requisite corporate power and authority
to own and operate its properties and assets and to conduct its
business as now conducted and as proposed to be conducted in the
future, to execute and deliver this Agreement and the other
agreements contemplated herein, to issue the Common Stock and to
carry out the provisions of this Agreement and the other agreements
contemplated herein. Pacel is now, or will be as soon as
practicable after Closing , duly qualified and authorized to
transact business and is in good standing as a foreign corporation
in each jurisdiction in which the failure to so qualify would have
a material adverse affect on its business, properties, prospects or
financial condition.
All corporate
action on the part of Pacel, its officers, directors and
shareholders necessary for the authorization, execution and
delivery of this Agreement and the other agreements and
transactions contemplated herein, the performance of all
obligations of Pacel hereunder and thereunder and the
authorization, issuance and delivery of the Common Stock being sold
hereunder have been or will be taken prior to the Closing. This
Agreement and the other agreements contemplated herein constitute
valid and legally binding obligations of Pacel, enforceable in
accordance with their terms.
|
|
|
|
Valid
Issuance of Common Stock
|
The Common
Stock, when issued, sold and delivered in accordance with this
Agreement, will be duly and validly issued, fully paid and
nonassessable and free of any liens or encumbrances created by
Pacel and will be issued in compliance with applicable federal and
state securities laws.
No consent,
approval, order or authorization of, registration, qualification or
filing with, any federal, state or local governmental authority is
required on the part of Pacel in connection with the consummation
of the transactions contemplated by this Agreement, except for
filings, if any, required pursuant to applicable state securities
laws, which filings will be made within the required statutory
period.
COMMON
STOCK PURCHASE AGREEMENT - Page 2
The authorized
capital stock of Pacel consists, or will consist, immediately prior
to Closing, of:
(a)
Common Stock.
10,000,000,000 shares of Common
Stock, of which 9,942,027,401 will be issued and outstanding
at Closing.
(b)
Preferred Stock.
5,500,000 shares of Preferred
Stock, of which 1,500,000 shares will be issued and outstanding at
Closing. The rights, privileges, preferences of the Preferred Stock
are as stated in the Articles of Incorporation, as amended of
Pacel.
(c)
The outstanding shares of Common
Stock and the Preferred Stock have been duly authorized and validly
issued, are fully paid and nonassessable.
(d)
There are no outstanding options,
warrants, rights, proxy or stockholders agreements of any kind for
the purchase from Pacel of any of its securities.
Pacel owns or
controls, directly or indirectly, the subsidiaries described in the
attached Schedule 2.6, which is incorporated herein.
Pacel has all
permits, licenses and similar authorizations necessary for the
conduct of its business as now being conducted by it, the lack of
which could materially and adversely affect the business,
properties, prospects, or financial condition of Pacel and believes
that it can obtain, without undue burden or expense, any similar
authority for the conduct of its business as presently planned to
be conducted. Pacel is not in default in any material respect under
any such permits, licenses or similar authority.
|
|
|
|
Compliance with Other
Instruments
|
Pacel is not in
violation or default in any material respect of any provision of
its Articles of Incorporation, as amended, or Bylaws or in any
material respect of any mortgage, indenture, agreement, instrument
or contract to which it is a party or by which it is bound or, to
the best of its knowledge, of any federal or state judgment, order,
writ, decree, statute, rule, regulation or restriction applicable
to Pacel, which violation or default would have a material adverse
effect on its business, properties, prospects or financial
condition. The execution, delivery and performance of this
Agreement and the other agreements contemplated herein and the
consummation of the transactions contemplated hereby and thereby
will not result in any such violation or default or require any
consent under or be in conflict with or constitute either
a
COMMON
STOCK PURCHASE AGREEMENT - Page 3
violation or
default under any such mortgage, indenture, agreement, instrument
or contract or an event which results in the creation of any liens,
charge or encumbrance upon any assets of Pacel.
There is no
action, suit, proceeding or investigation pending or, to
Pacel’s knowledge, currently threatened against Pacel or any
of its officers, directors, employees or agents which questions the
validity of this Agreement or the other agreements contemplated
herein or the right of Pacel to enter into such agreements or to
consummate the transactions contemplated hereby or thereby, or
which might result in any material adverse change in the assets,
conditions, affairs, prospects or business of Pacel, financially or
otherwise, or any change in the current equity ownership of
Pacel.
Pacel
has provided Scenic with all information
reasonably available to it without undue expense that Scenic,
and/or its agents and representatives, has requested for deciding
whether to purchase the Common Stock and all information that Pacel
believes is reasonably necessary to enable Scenic to make such
decision. To the best of Pacel’s knowledge after reasonable
investigation, neither this Agreement not any other agreements,
written statements made or delivered in connection herewith
contains any untrue statement of a material fact or omits to state
a material fact necessary to make the statements herein or therein
not misleading.
|
|
|
|
Title
to Property and Assets
|
Pacel has good
and marketable title to its properties and assets, free and clear
of any material liens, claims or encumbrances. With respect to the
property and assets it leases, Pacel is in comp
|