STOCK PURCHASE AND
RECAPITALIZATION AGREEMENT
This Agreement this i6 day of July, 2009 by and
among Optimum Interactive (USA) LTD, a Delaware Company (the
"Parent") and VComm Network, Inc., a Delaware corporation
(the "Company") and Tim Roth, majority shareholder of the
Company ("Seller").
RECITALS
A. The respective
Boards of Directors of each of the Company, and Parent, have
approved and declared advisable the merger of the Company with into
Parent (the "Acquisition") and approved the Merger upon the
teiiiis and subject to the conditions set forth in this Agreement,
whereby each issued and outstanding share of the common stock of
the Company (a "Company Common Share" or, collectively, the
"Company Common Shares"), will be converted into 18,000,000
shares of common stock, $0.0001 par value, of Parent
("Parent Common Stock") which, after giving
effect to the Acquisition, shall equal, in the aggregate, 56.25% of
the total issued and outstanding common stock of Parent and an
aggregate of 4,500,000 shares of Class A Preferred Stock of Parent
with the provisions, rights and designations set forth herein.
Following the Acquisition, the Parent will have 8,000,000 Company A
Preferred Shares outstanding. In addition, the Parent will have an
aggregate of 3,200,000 Class A Preferred Shares available to be
issued upon conversion of an aggregate of $1,600,000 of debt either
currently outstanding or contemplated. The Company also has one (1)
share of Class B Preferred Stock outstanding which shall be
converted into one share of Class B Preferred Stock of the Parent
with the provisions, rights and designations set forth herein. The
Company Common Shares, the Company B Preferred Shares and the
Company A Preferred shares are referred to herein, collectively, as
the "Company Shares".
B. The respective
Boards of Directors of the Company, Buyer and Parent have
determined that the Acquisition is in furtherance of and consistent
with their respective long-term business strategies and is fair to
and in the best interests of their respective
stockholders.
C. It is intended
that, for federal income tax purposes, the Acquisition shall
qualify as a reorganization under the provisions of Section 368(a)
of the Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder (the "Code");
D. For financial
accounting purposes, it is intended that the Acquisition will be
accounted for as a "purchase";
NOW, THEREFORE, in consideration of the premises, and of the
representations, warranties, covenants and agreements contained
herein, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
ARTICLE I
THE ACQUISITION; CLOSING; EFFECT OF
ACQUISITION
SECTION 1.1 The Acquisition. Upon the
terms and subject to the conditions set forth in this Agreement and
in accordance with the laws of the state of Delaware
("Delaware Law") at the Effective Time, the
Company shall be acquired by the Parent and the Company will become
a wholly-owned subsidiary of the Parent. The Parent shall be deemed
the surviving corporation in the Acquisition (sometimes hereinafter
referred to as the "Surviving Corporation"), and the
separate corporate existence of the Company shall therefrom cease,
except as set forth herein. The result will be that the Company
will be a wholly-owned subsidiary of Parent.
SECTION 1.2 Closing. Subject to the terms and
conditions of this Agreement, the closing of the Acquisition and
the consummation of the other transactions contemplated hereby (the
"Closing") shall take place at the offices of Cohen &
Czarnik LLP 17 State Street, 39 th Floor, New York 10004 not later than July 14,
2009 and at such other date, time and place as the parties hereto
shall agree.
SECTION 1.3 Effective Time. On the date
of Closing, the Parent will become the owner of 100% of the Common
Stock of the Company (the "Effective Time").
SECTION 1.4 Certificate of Incorporation.
The certificate of incorporation of the Parent as in effect
immediately prior to the Effective Time shall remain as the
certificate of incorporation of the Parent (the "Certificate of
Incorporation"), until duly amended as provided therein or by
applicable law.
SECTION 1.5 By-Laws. The by-laws of the
Parent in effect immediately prior to the Effective Time shall
remain the by-laws (the "By-Laws"), until thereafter amended
as provided therein or by applicable law.
SECTION 1.6 Directors. The directors of
the Company shall, from and after the Effective Time, be Gerard
McGorian, Anthony Roth, and Timothy Roth until his successor have
been duly elected or appointed and qualified or until his earlier
death, resignation or removal in accordance with the Certificate of
Incorporation and the By-Laws. As of the Effective Time, the
authorized number of directors comprising the Board of Directors of
Parent shall consist of not less than 3 and not more than 5
individuals. The following individuals shall be elected to the
Board Directors of Parent at the Effective Time: (i) Anthony Roth;
(ii) Tim Roth; and (iii) Gerard McGorian (Chairman of the
Board).
SECTION 1.7 Officers. The officers of the
Parent shall, from and after the Effective Time, be Tony Roth
(Chief Executive Officer and President), Tim Roth, (Treasurer), and
Michael Flynn (Secretary), until their successors have been duly
elected or appointed and qualified or until their earlier death,
resignation or removal in accordance with the Certificate of
Incorporation and the By-Laws.
SECTION 1.8 Effect on Capital Stock. At
the Effective Time, as a result of the Acquisition and without any
action on the part of the holder of any capital stock of the
Company:
(a) Merger
Consideration.
(i) Each Company
Common Share issued and outstanding immediately prior to the
Effective Time shall be converted into, and become exchangeable for
thirty validly issued, fully paid and nonassessable shares of
Parent Common Stock (the "Parent Common Shares") and .25
shares of Preferred Stock of Parent ("Parent Preferred Stock")
which shall have the rights and preferences as set forth on
Schedule 1.8 attached hereto. In addition, a designee of management
of the Company shall receive one share of Class B Preferred Stock
of the Parent. The Class B Preferred Stock shall have the rights
and preferences set forth on Schedule 1.8 attached
hereto.
(ii) The Parent Common
Shares and the Parent Preferred Shares, collectively, are referred
to herein as the "Parent Merger Stock", and the conversion
of the Company Shares into Parent Stock is referred to as the
"Acquisition Purchase Price");
(b) At the Effective Time, all Company Shares
shall be canceled and the Company shall cease to exist, and each
certificate (a "Certificate") formerly
representing:
( i )
any Company Common Shares shall thereafter represent only the right
to receive the shares of Parent Common Stock into which such
Company Common Shares have been converted; and
SECTION 1.9
Exchange of Certificates for Shares.
(a)
Exchange. At Closing, Parent shall deliver or cause to be
delivered to each respective owner of Company Shares and in each of
their respective names certificates representing Parent Stock into
which the Company Shares that such shareholders owns are to be
converted as set forth on Schedule 1.9 attached
hereto.
(b)
Fractional Shares. No certificates or scrip representing
fractional shares of Parent Common Stock or Parent Preferred Stock
shall be issued upon the surrender for exchange of Certificates
pursuant to this Article I; no dividend or other distribution by
Parent and no stock split, combination or reclassification shall
relate to any such fractional share; and no such fractional share
shall entitle the record or beneficial owner thereof to vote or to
any other rights of a stockholder of Parent. In lieu of any such
factional share, each holder of Company Shares who would otherwise
have been entitled thereto upon the surrender of Certificate(s) for
exchange pursuant to this Article I will be paid an additional
share of Parent Common Stock or Parent Preferred Stock.
(c) Adjustments of Conversion Number. In
the event that Parent changes the number of shares of Parent Common
Stock or Parent Preferred Stock , issued and outstanding prior to
the Effective Time as a result of a reclassification, stock split
(including a reverse split), dividend or distribution,
recapitalization, merger (other than the Acquisition, Stock
Purchase or the cancellation of options previously granted by the
Company), subdivision, or other similar transaction with a dilutive
effect, or if a record date with respect to any of the foregoing
shall occur prior to the Effective Time, the conversion number
shall be equitably adjusted.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF
THE COMPANY AND SELLER
Each of the
Company and Seller represents, warrants and covenants to Parent as
follows and acknowledges that Parent is relying upon such
representations and warranties in connection with the Contemplated
Transactions (as hereinafter defined):
SECTION 2.1
Capitalization. The outstanding and issued capital stock of
the Company consists of 600,000 shares of common stock. Schedule
1.9 sets forth the name of each record and beneficial
shareholder of the Company (each a "Shareholder" and
collectively the "Shareholders") and the number of Company
Shares held by each such person. The Company does not and, at the
Closing, the Company will not, have outstanding any capital stock
or other securities or any rights, warrants or options to acquire
securities of the Company, or any convertible or exchangeable
securities and, other than Parent pursuant to this Agreement, no
person has or, at Closing will have, any right to purchase or
otherwise acquire any securities of the Company. There are, and at
Closing there will be, no outstanding obligations of the Company to
repurchase, redeem or otherwise acquire any securities of the
Company. All of the Company Shares are, and at Closing will be,
duly authorized, duly and validly issued, fully paid and
non-assessable, and none were issued in violation of any preemptive
rights, rights of first refusal or any other contractual or legal
restrictions of any kind. The Company has two subsidiaries VComm
Network Canada Inc. an Ontario company and VCN Celect, Org, LLC, a
California Limited Liability Company (collectively the
"Subsidiaries"), which have minimal assets and operations. The
Subsidiaries are 100% owned by the Company.
SECTION 2.2 Title to the Shares. Seller
is the beneficial owner and holds good and valid title to its
Company Shares free and clear of any Lien. Upon consummation of the
Contemplated Transactions and the satisfaction of the conditions to
Closing set forth herein, Parent will own all of the issued and
outstanding shares of capital stock of the Company, free and clear
of any Lien. At the Closing, Seller and each Shareholder of the
Company will deliver the Company Shares to Parent free and clear of
any Lien, other than restrictions imposed by the Securities Act of
1933, as amended, (the "Securities Act") and applicable
securities Laws including the laws of the State of
Delaware.
SECTION 2.3 Authority Relative to this
Agreement. At the Closing, the Company will have full power,
capacity and authority to execute and deliver each Transaction
Document to which it is or, at Closing, will be, a party and to
consummate the transactions
contemplated
hereby and thereby (the "Contemplated Transactions"). The
execution, delivery and performance by the Company and Seller of
each Transaction Document and the consummation of the Contemplated
Transactions to which the Company and/or Seller are, or at Closing,
will be, a party will have been duly and validly authorized by the
Company and Seller and no other acts by or on behalf of the Company
or Seller will be necessary or required to authorize the execution,
delivery and performance by each of the Company and Seller of each
Transaction Document and the consummation of the Contemplated
Transactions to which it, he or she, is or, at Closing, will be, a
party. This Agreement and the other Transaction Documents to which
the Company or Seller is a party have been duly and validly
executed and delivered by the Company or Seller, respectively, and
(assuming the valid execution and delivery thereof by the other
parties thereto) will constitute the legal, valid and binding
agreements of the Company and Seller, respectively, enforceable
against the Company and Seller in accordance with their respective
terms, except as such obligations and their enforceability may be
limited by applicable bankruptcy and other similar Laws affecting
the enforcement of creditors' rights generally and except that the
availability of equitable remedies is subject to the discretion of
the court before which any proceeding therefore may be brought
(whether at law or in equity).
SECTION 2.4 No Conflicts; Consents. The
execution, delivery and performance by the Company of each
Transaction Document to which it is a party and the consummation of
the Contemplated Transactions to which the Company is a party, upon
approval of the Shareholders will not: (i) violate any provision of
the certificate of incorporation or memorandum of association of
the Company; (ii) require the Company to obtain any consent,
approval or action of or waiver from, or make any filing with, or
give any notice to, any Governmental Body or any other person;
(iii) violate, conflict with or result in a breach or default under
(with or without the giving of notice or the passage of time or
both), or permit the suspension or termination of, any material
Contract (including any Real Property Lease) to which the Company
is a party or by which it or any of its assets is bound or subject,
or to the best of Company's knowledge and information result in the
creation of any Lien upon any of the Company Shares or upon any of
the Assets of the Company; (iv) violate any Order, any Law, of any
Governmental Body against, or binding upon, the Company or upon any
of their respective assets or the Business; or (v) violate or
result in the revocation or suspension of any Permit.
SECTION 2.5 Corporate Existence and
Power. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of
Delaware, and has all requisite powers, authority and all Permits
required to own and/or operate its Assets and to carry on the
Business as now conducted, including all qualifications under any
statute in effect in any state or foreign jurisdiction in which the
Company operates its Business. The Company is duly qualified to do
business and is in good standing in each state of the United States
and in each other jurisdiction where the character of the property
owned or leased by it or the nature of its activities makes such
qualification necessary.
SECTION 2.6 Charter Documents and Corporate
Records. The Company has heretofore delivered to Parent true
and complete copies of the Articles of Incorporation, By-Laws and
minute books, or comparable instruments, of the Company as in
effect on the date hereof. The stock transfer books of the Company
have been made available to Parent for its inspection and are true
and complete in all respects.
SECTION 2.7
Financial Statements.
(a)
Schedule 2.7A sets forth true, complete and correct copies
of: (i) the Company's unaudited financial statements as of and for
the fiscal years ended December 31, 2008 and December 31, 2007 (the
"Annual Statements"); (ii) the Company's financial statements as of
and for the three months ended March 31, 2009 (the "Interim
Statements"); and (iii) all management letters, management
representation letters and attorney response letters issued in
connection with the Annual Statements and the Interim Statements.
Each of the Annual Statements and the Interim Statements present
fairly and accurately in all material respects the financial
position of the Company and the Subsidiary as of its date, and the
earnings, changes in stockholders' equity and cash flows thereof
for the periods then ended in accordance with GAAP, consistently
applied. Each balance sheet contained therein or delivered pursuant
hereto fully sets forth all consolidated Assets and Liabilities of
the Company existing as of its date which, under GAAP, should be
set forth therein, and each statement of earnings contained therein
or delivered pursuant hereto sets forth the items of income and
expense of the Company which should be set forth therein in
accordance with GAAP.
(b) All financial,
business and accounting books, ledgers, accounts and official and
other records relating to the Company have been properly and
accurately kept and completed, and the Company has no knowledge,
notice belief or information there are any material inaccuracies or
discrepancies contained or reflected therein.
SECTION 2.8 Liabilities. The Company has
not incurred any Liabilities since December 31, 2008(the "Latest
Balance Sheet Date") except (i) current Liabilities for trade
or business obligations incurred in connection with the purchase of
goods or services in the ordinary course of the Business and
consistent with past practice, (ii) professional fees related to
this Transaction and (iii) Liabilities reflected on any balance
sheet referred to in Section 2.7(a).
SECTION 2.9 Company Receivables. Except
to the extent of the amount of the allowance for doubtful accounts
reflected in the Annual Statements and the Interim Statements, all
the Receivables of the Company reflected therein, and all
Receivables that have arisen since the Latest Balance Sheet Date
(except Receivables that have been collected since such date), are
valid and enforceable Claims subject to no known defenses, offsets,
returns, allowances or credits of any kind, and constitute bona
fide Receivables collectible in the ordinary course of the Business
except as enforceability may be limited by applicable bankruptcy,
reorganization, insolvency, moratorium, fraudulent conveyance or
similar laws or principles of equity affecting the enforcement of
creditors rights generally.
SECTION 2.10 Absence of Certain Changes.
(a) Since December 31, 2008, the Company has conducted the Business
in the ordinary course consistent with past practice, except as
disclosed on Schedule 2.10 hereof, and there has not
been:
(i)Any material
adverse change in the Condition of the Business;
(ii) Any material
damage, destruction or other casualty loss (whether or not covered
by insurance), condemnation or other taking affecting the Business
or the Assets of the Company;
(iii) Any change in any
method of accounting or accounting practice by the
Company;
(iv) Except for normal
increases granted in the ordinary course of business, any increase
in the compensation, commission, bonus or other direct or indirect
remuneration paid, payable or to become payable to any officer,
stockholder, director, consultant, agent or employee of the
Company, or any alteration in the benefits payable or provided to
any thereof;
(v) Any material
adverse change in the relationship of the Company with its
employees, customers, suppliers or vendors;
(vi) Except for any
changes made in the ordinary course of Business, any material
change in any of the Company's business policies, including
advertising, marketing, selling, pricing, purchasing, personnel,
returns or budget policies;
(vii) Any agreement or
arrangement whether written or oral to do any of the
foregoing.
(viii) The Company has no Liability that is past
due and which, individually or in the aggregate, exceeds $10,000,
except as shown on the Annual Statements or the Interim Statements
and the $500,000 of convertible debt that the Company has recently
raised.
SECTION 2.11 Leased Real Property. (a)
The Company has no fee interest, purchase options or rights of
first refusal in any real property and the Company has no leasehold
or other interest in any real property, except as set forth on
Schedule 2.11 (the "Leased Real Property"), and all
leases including all amendments, modifications, extensions,
renewals and/or supplements thereto (collectively, "Real
Property Leases") are described on Schedule
2.11.
SECTION 2.12 Personal Property; Assets.
The Company has good and valid title to (or valid leasehold
interest in) all of its personal property and Assets, free and
clear of all Liens, except the Permitted Liens and as indicated on
Schedule 2.12. The machinery, equipment, computer software
and other tangible personal property constituting part of the
Assets and all other Assets (whether owned or leased) are in good
condition and repair (subject to normal wear and tear) and are
reasonably sufficient and adequate in quantity and quality for the
operation of the Business as previously and presently conducted.
Schedule 2.12 contains a list and description of all
tangible personal property owned or leased by the Company with a
book value (before depreciation) of $25,000 or more. The Assets
constitute all of the assets, which are necessary to operate the
Business of the Company as currently conducted.
SECTION 2,13 Contracts. (a) Schedule
2.13 sets forth an accurate and complete list of all Contracts
to which the Company is a party or by which it or its Assets are
bound or subject that: (i) cannot be canceled upon 30 days' notice
without the payment or penalty of less than One Thousand Dollars
($1,000); or (ii) involve aggregate annual future payments by or to
any person of more than Five Thousand Dollars ($5,000). True and
complete copies of all written Contracts (including all amendments
thereto and waivers in respect thereof) and summaries of the
material provisions of all oral Contracts so listed have been made
available to Buyer.
(b) All Contracts to which the Company is a
party are valid, subsisting, in full force and effect and binding
upon the Company and the other parties thereto, in accordance with
their terms, except that no representation or warranty is given as
to the enforceability of any oral Contracts. Except as set forth on
Schedule 2.13, the Company is not in default (or alleged
default) under any such Contract.
SECTION 2.14 Patents and Intellectual
Property Rights. (a) Schedule 2.14 sets forth a list of each
patent, trademark, trade name, service mark, brand mark, brand
name, and registered copyright as well as all registrations thereof
and pending applications therefor, and each license or other
contract relating thereto (collectively, the "Intellectual
Property") owned or used in connection with the Business by the
Company and indicates, with respect to each item of Company's
Intellectual Property that is licensed by the Company, the name of
the licensor thereof and, with respect to oral Contracts, the terms
of such license relating thereto. The use of the foregoing by the
Company does not conflict with, infringe upon, violate or interfere
with or constitute an appropriation of any right, title, interest
or goodwill, including, without limitation, any intellectual
property right, patent, trademark, trade name, service mark, brand
name, computer program, database, industrial design, trade secret,
copyright or any pending application thereto of any other person
and there have been no claims made and the Company has not received
any notice or otherwise know that any of the foregoing is invalid
or conflicts with the asserted rights of other Persons or have not
been used or enforced or have been failed to be used or enforced in
a manner that would result in the abandonment, cancellation or
unenforceability of the Intellectual Property, except as set forth
on Schedule 2.14A.
(b) The Company owns
or has rights to use all Intellectual Property, know-how, formulae
and other proprietary and trade rights necessary to conduct the
Business as it is now conducted. The Company has not forfeited or
otherwise relinquished any such Intellectual Property, know-how,
formulae or other proprietary right used in the conduct of the
Business as now conducted.
(c) To the extent used
in the conduct of the Business by the Company, each of the licenses
or other contracts relating to the Company's Intellectual Property
(collectively, the "Intellectual Property Licenses") is in
full force and effect and is valid and enforceable in accordance
with its 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 (regardless of whether enforcement
is sought in a proceeding at law or in equity), and there is no
notice or claim of default under any Intellectual Property License
either by the Company or, to the Company's knowledge, by any other
party thereto, and to the Company's knowledge, no event has
occurred that with the lapse of time or the giving of notice or
both would constitute a default by the Company
thereunder.
SECTION 2.15 Claims and Proceedings.
There are no outstanding Orders of any Governmental Body against or
involving the Company, its Assets, the Business, or the Company
Shares. There are no actions, suits, claims or counterclaims,
examinations, Company Required Consents or legal, administrative,
governmental or arbitral proceedings or investigations
(collectively, "Claims") (whether or not the defense thereof
or Liabilities in respect thereof are covered by insurance),
pending or, to the best of the Company's knowledge, threatened on
the date hereof, against or involving the Company, its Assets, the
Business or the Company Shares.
SECTION 2.16
Taxes. (a) Except as set forth in Schedule
2.16:
(i) The Company has
timely filed or, if not yet due but due before Closing, will timely
file all Tax Returns required to be filed by it for all taxable
periods ending on or before the date of Closing and all such Tax
Returns are or, if not yet filed, will be, upon filing, true,
correct and complete in all material respects;
(ii) the Company has
paid, or if payment is not yet due but due before Closing, will
promptly pay when due to each appropriate Tax Authority, all Taxes
of the Company shown as due on the Tax Returns required to be filed
by it for all taxable periods ending on or before the date of
Closing;
(iii) the accruals for
Taxes currently payable as well as for deferred Taxes shown on the
financial statements of the Company as of the date of the Annual
Statements, the Interim Statements or the date of any financial
statements delivered hereunder: (A) adequately provide for all
contingent Tax Liabilities of the Company as of the date thereof;
and (B) accurately reflect, as of the date thereof, all unpaid
Taxes of the Company whether or not disputed, in each case as
required to be reflected thereon in order for such statements to be
in accordance with GAAP;
(iv) no extension of
time has been requested or granted for the Company to file any Tax
Return that has not yet been filed or to pay any Tax that has not
yet been paid and the Company has not granted a power of attorney
that remains outstanding with regard to any Tax matter;
(v) the Company has not received notice of a
determination by a Tax Authority that Taxes are currently owed by
the Company (such determination to be referred to as a "Tax
Deficiency") and, to the Company's knowledge, no Tax Deficiency
is proposed or threatened;
(vi) all Tax
Deficiencies have been paid or finally settled and all amounts
determined by settlement to be owed have been paid;
(vii) there are no Tax
Liens on or pending against the Company or any of the Assets, other
than those which constitute Permitted Liens;
(viii) there are no
presently outstanding waivers or extensions or requests for a
waiver or extension of the time within which a Tax Deficiency may
be asserted or assessed;
(ix) no issue has been
raised in any examination, investigation, Company Required
Consents, suit, action, claim or proceeding relating to Taxes (a
"Tax Company Required Consents") which, by application of
similar principles to any past, present or future period, would
result in a Tax Deficiency for such period;
(x) there are no
pending or threatened Tax audits of the Company;
(xi) the Company has no
deferred intercompany gains or losses that have not been fully
taken into income for income Tax purposes;
(xii) there are no
transfer or other taxes (other than income taxes) imposed by any
state on the Company by virtue of the Contemplated Transactions;
and
(xiii) no claim has been
made by any Tax Authority that the Company is subject to Tax in a
jurisdiction in which the Company is not then paying Tax of the
type asserted.
Each reference to a provision of the Code in
this Section 2.16 shall be treated for state and local Tax purposes
as a reference to analogous or similar provisions of state and
local law.
(b) To the Company's knowledge, the Company has
collected and remitted to the appropriate Tax Authority all sales
and use or similar Taxes required to be collected on or prior to
the date of Closing and has been furnished properly completed
exemption certificates for all exempt transactions and has no
information otherwise or notice of any claim by any government or
jurisdiction with regards thereto. The Company has maintained and
has in its possession all records, supporting documents and
exemption certificates required by applicable sales and use Tax
statutes and regulations to be retained in connection with the
collection and remittance of sales and use Taxes for all periods up
to and including the date of Closing. With respect to sales made by
the Company prior to the date of Closing for which sales and use
Taxes are not yet due as of the date of Closing, all applicable
sales and use Taxes payable with respect to such sales will have
been collected or billed by the Company and will be included in the
Assets of the Company as of the date of Closing.
SECTION 2.17 Compliance with Laws. The
Company is not in violation of any order, judgment, injunction,
award, citation, decree, consent decree or writ (collectively,
"Orders") and to the best of the Company's knowledge, belief
and information, any Laws of any Governmental Bodies affecting the
Company, the Company Shares or the Business.
SECTION 2.18 Permits. The Company has
obtained all licenses, permits, certificates, certificates of
occupancy, orders, authorizations and approvals (collectively,
"Permits"), and has made all required registrations and
filings with all Governmental Bodies, that are necessary to the
ownership of the Assets, the use and occupancy of the Leased Real
Property, as presently used and operated, and the conduct of the
Business or otherwise required to be obtained by the Company. All
Permits required to be obtained or maintained by the Company are
listed on Schedule 2.18 and are in full force and effect; no
violations are or have been recorded, nor have any notices or
violations thereof been received, in respect of any Permit; and no
proceeding is pending or threatened to revoke or limit any Permit;
and the consummation of the Contemplated Transactions will not (or
with the giving of notice or the passage of time or both will not)
cause any Permit to be revoked or limited.
SECTION 2.19 Environmental Matters. To
the best of the Company's knowledge, belief and information, the
Company is, and at all times has been, in full compliance with, and
has not been and is not in violation of or liable under, any
Environmental Law.
SECTION 2.20 Finders Fees. Except as set
forth on Schedule 2.20, there is no investment banker,
broker, finder or other intermediary which has been retained by or
is authorized to act on behalf of the Company who might be entitled
to any fee or commission from the Company in connection with the
consummation of the Contemplated Transactions.
SECTION 2.21 Disclosure. Neither this
Agreement, the Schedules hereto, nor any reviewed or unaudited
financial statements, documents or certificates furnished or to be
furnished to Buyer or Parent by or on behalf of the Company or
Seller pursuant to this Agreement contains or will contain any
untrue statement of a material fact or omits or will omit to state
a material fact necessary in order to make the statements contained
herein or therein not misleading. Except for general current
economic conditions effecting the entire economy or the Company's
entire industry and not specific to the Business, there are no
events, transactions or other facts known by the Company, which,
either individually or in the aggregate, may give rise to
circumstances or conditions which would have a material adverse
effect on the general affairs or Condition of the
Business.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF
PARENT
Buyer jointly and severally represent, warrant
and covenant to the Company as follows and acknowledge that the
Company and Seller are relyin
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