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Agreement and Plan of Reorganization

 

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Title:

Agreement and Plan of Reorganization

Entities:

Pacific WebWorks, Inc.

Date:

2000

Size:

Preview shows 9KB of 52KB total

Price:

$36

ID:

#1189321

 

 

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<SEQUENCE>2

<FILENAME>0002.txt
<TEXT>

AGREEMENT AND PLAN OF REORGANIZATION

THIS AGREEMENT AND PLAN OF REORGANIZATION ("Plan") is made this 31st day
of October, 2000, among Pacific WebWorks, Inc., a Nevada corporation
("Pacific"); Logio, Inc., a Nevada corporation, any and all of its
subsidiaries (hereinafter collectively referred to as "Logio"). and its
shareholders (hereinafter "Shareholders").

WHEREAS, the Board of Directors of Pacific and Logio have unanimously
approved the acquisition of Logio by Pacific;

WHEREAS, this Plan is contingent upon approval of a majority of the Logio
Shareholders and such Shareholders by their approval agree to exchange Logio
shares in accordance with the terms of this Plan; and

WHEREAS, this Plan is contingent upon registration of the common shares
to be issued in the exchange pursuant to the Securities Act of 1933. Pacific
WebWorks agrees to file a registration statement of Form S-4 as soon as
possible upon the execution of this Plan.

Pacific wishes to acquire all the issued and outstanding stock of Logio
for and in exchange for stock of Pacific, in a stock for stock transaction
intending to qualify as a tax-free exchange pursuant to Sectin 368(a)(1)(B)
of the Internal Revenue Code of 1986, as amended. The parties intend for this
Plan to represent the terms and conditions of such tax-free reorganization,
which Plan the parties hereby adopt.

NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, IT IS AGREED:

Section 1

Terms of Exchange

1.1 Number of Shares. Upon the execution hereof and approval by a
majority of the Logio shareholders the Shareholders of Logio agree to assign,
transfer, and deliver to Pacific, free and clear of all liens, pledges,
encumbrances, charges, restrictions or known claims of any kind, nature or
description, approximately 18,425,830 shares of Logio common stock which
represents 100% of the issued and outstanding stock of Logio, in exchange for
2,800,000 common shares of Pacific's stock, par value $.001 subject to the
provisions of this Plan. Subsequent to the date hereof, the Shareholders
shall surrender all the Logio certificates to Pacific. Upon the consummation
of the transaction contemplated herein, Logio shall be a wholly owned
subsidiary of Pacific.

1.2 Anti-Dilution. For all relevant purposes of this Plan, the number
of Pacific shares to be issued and delivered pursuant to this Plan, shall be
appropriately adjusted to take into account any stock split, stock dividend,
reverse stock split, recapitalization, or similar change in Pacific common
stock, which may occur between the date of the execution of this Plan and the
date of the delivery of such shares.

<PAGE>

1.3 Further Assurances. Subsequent to the execution hereof, and from
time to time thereafter, the Shareholders shall execute such additional
instruments and take such other action as Pacific may reasonably request in
order to more effectively sell, transfer and assign clear title and ownership
in the Logio Shares to Pacific.

Section 2

Closing Events

2.1 Execution of Plan. The execution of the Plan shall be completed at
the law office of Daniel W. Jackson, 525 South 300 East, Salt Lake City, Utah
on or before November 15, 2000 or at such other time or place as may be
mutually agreed upon by the parties. The execution may also be accomplished
by wire, express mail or other courier service, conference telephone
communications or as otherwise agreed by the respective parties or their duly
authorized representatives. Upon the execution of the Plan, each of the
respective parties hereto shall execute, acknowledge and deliver (or shall
cause to be executed, acknowledged, and delivered) any agreements,
resolutions, rulings, or other instruments required by this Plan to be so
delivered, together with such other items as may be reasonably requested by
the parties hereto and their respective legal counsel in order to effectuate
or evidence the transaction contemplated hereby by December 31, 2000

2.2 Registration of Pacific Shares. Upon the execution of the Plan as
outlined in Section 1.1 hereof, Pacific shall, as soon as practicable, file an
S-4 Registration Statement with the Securities and Exchange Commission to
cover the 2,800,000 shares issued pursuant to this agreement.

2.3 Delivery of Certificates. Once the Securities and Exchange
Commission has declared the Registration Statement effective the Shareholders
shall transfer to Pacific the shares of common stock of Logio listed opposite
their respective names on Exhibit A hereto (the "Logio Shares") in exchange
for shares of the common stock of Pacific as outlined above in Section 1.1
hereof (the "Pacific Stock"). All of such shares of Pacific Stock shall be
issued to the Shareholders of Logio, in the numbers shown opposite their
respective names in Exhibit A no later than 30 days after the registration
statement is declared effective. The transfer of Logio Shares by the
Shareholders shall be effected by the delivery to Pacific of certificates
representing the transferred shares endorsed in blank or accompanied by stock
powers executed in blank, with all signatures guaranteed by a national bank
and with all necessary transfer taxes and other revenue stamps affixed and
acquired at the Shareholders' expense.

2.4 Closing. The closing shall be effected, as soon as practicable,
after all of the outlined conditions and transactions contained in Sections
1.1., 1.2 and 1.3 have been satisfied (the"Closing") .

-2-
<PAGE>


Section 3

Representations, Warranties and Covenants of Pacific

Pacific represents and warrants to, and covenants with, the Shareholders
and Logio as follows:

3.1 Corporate Status. Pacific is a corporation duly organized, validly
existing and in good standing under the laws of the State of Nevada. Pacific
has full corporate power and is duly authorized, qualified, franchised, and
licensed under all applicable laws, regulations, ordinances, and orders of
public authorities to own all of its properties and assets and to carry on its
business on all material respects as it is now being conducted, and there is
no other jurisdiction in which the character and location of the assets owned
by it, or the nature of the business transacted by it, requires qualification.
Included in the Pacific schedules (defined below) are complete and correct
copies of its Articles of Incorporation and Bylaws as in effect on the date
hereof. The execution and delivery of this Plan does not, and the
consummation of the transactions contemplated hereby will not, violate any
provision of Pacific's Articles of Incorporation or Bylaws. Pacific has taken
all action required by law, its Articles of Incorporation, its Bylaws, or
otherwise, to authorize the execution and delivery of this Plan.

3.2 Capitalization. The authorized capital stock of Pacific as of the
date hereof consists of 50,000,000 common shares, par value $.001. As of the
date hereof there are 15,008,342 common shares of Pacific issued and
outstanding. The foregoing shares constitute fully paid, non-assessable
shares.

3.3 Options, Warrants and Rights. Pacific has entered into stock option
and warrant contracts with key employees, directors, consultants and investors
for an equity interest in Pacific and the resulting issuance of shares
pursuant to certain agreements. As of October 15, 2000, Pacific has options
outstanding to purchase 1,122,735 shares of its common stock and warrants to
purchase 1,250,000 common shares to certain persons pursuant to various
agreements attached hereto as Exhibit B.

3.4 Financial Statements.

(a) Pacific hereby warrants and covenants to Logio that the
reviewed financial statements for the period ended September 30, 2000 and
audited financial statements for the years ended December 31, 1999 and 1998,
fairly and accurately represent the financial condition of Pacific and that
the same will be prepared along with the period ended as of the date of
Closing, for consolidation, which shall be prepared in accordance with
generally accepted accounting principles consistently applied, on or before
the expiration of forty-five days from the date of execution of the Plan.


 

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