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Title: |
Stock Purchase Agreement |
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Entities: |
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Date: |
2000 |
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Size: |
Preview shows 7KB of 70KB total |
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Price: |
$45 |
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ID: |
#1664140 |
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<SEQUENCE>23
<FILENAME>0023.txt
<TEXT>
STOCK PURCHASE AGREEMENT
------------------------
THIS STOCK PURCHASE AGREEMENT ("Agreement") dated as of November 6, 2000 by
and among PACIFIC TELCOM, INC., a corporation organized under the laws of
Illinois, PACIFIC TELCOM [CANADA] INC., a corporation organized under the laws
of the Province of Ontario (collectively referred to hereafter as "Buyer"),
EASYTEL CANADA CORPORATION, a corporation organized under the laws of the
Province of Ontario (the "Corporation") and RICHARD C. GOLDSTEIN, being the duly
appointed Sellers' Representative of the Selling Shareholders ("Sellers" or
"Shareholders" or "Selling Shareholders").
WITNESSETH
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WHEREAS, the Selling Shareholders collectively own of record and
beneficially one hundred percent (100%) of the issued and outstanding shares of
the common stock of EasyTel Canada consisting of 6,315,000 shares of common
stock, no par value (the "Shares"); and
WHEREAS, the Sellers own in addition to 6,315,000 common shares issued and
outstanding on November 3, 2000, and the further amount of 2,599,850 common
shares representing such shares derived from outstanding options for common
stock exercised and Class A special shares, nonvoting, converted to common
shares pursuant to the Articles of Corporation and by-laws of the Corporation;
WHEREAS, Pacific TelCom [Canada] Inc. is a wholly owned subsidiary of
Pacific TelCom, Inc., and that the capital stock of Pacific TelCom [Canada] Inc.
is comprised of two classes of stock to wit, common shares of no par value and
Class A special shares, nonvoting, convertible to common shares of Pacific
TelCom, Inc. pursuant to the Articles of Corporation and By-Laws of the
Corporation; and
WHEREAS, it is the intention of the parties hereto that, upon consummation
of the purchase and sale of the Shares pursuant to this Agreement, at Closing
effective as of the date hereof (the "Effective Date") Pacific TelCom [Canada]
Inc. shall own one hundred percent (100%) of all of the issued and outstanding
shares of common stock of the Corporation; and
<PAGE>
WHEREAS, Pacific TelCom, Inc. has agreed to be a party to this Agreement to
guarantee the obligations of Pacific TelCom [Canada] Inc., its wholly owned
subsidiary.
NOW, THEREFORE, IT IS AGREED:
Section 1. Sale and Purchase.
-------------------
1.1 Sale of the Shares. Subject to the terms and conditions herein stated,
--------------------
the Selling Shareholders agree to sell, assign, transfer and deliver
the shares to Pacific TelCom [Canada] Inc. on the Effective Date, and
Buyer agrees to purchase the outstanding common shares from the
Selling Shareholders on the Effective Date. The certificates
representing the Shares shall be duly endorsed to Pacific TelCom
[Canada] Inc., or accompanied by Stock Powers and Assignment Separate
from Certificate, duly executed in favor of the Buyer, by the relevant
Selling Shareholders. The Selling Shareholders agree to cure at any
time any deficiencies with respect to the endorsement of the
certificates representing the shares or with respect to the Stock
Power with Assignment Separate from Certificate, accompanying any such
certificates.
Section 2.0 Purchase Price.
--------------------
2.1 Payment. In consideration of the transfer, conveyance and assignment
-------
of the Shares, the Buyer shall pay to the Selling Shareholders the sum
of Two Hundred Fifty Thousand Dollars ($250,000) and One Million One
Hundred Twenty-Five Thousand (1,125,000) duly authorized and issued
Class A special convertible shares of Pacific TelCom [Canada] Inc.,
subject to adjustment as described herein, to be paid in the following
manner.
2.2 Payments of Cash. The Buyer shall pay to the Sellers in the form of
------------------
check or by wire transfer, at the direction of the Corporation, the
sum of Two Hundred Fifty Thousand US Dollars ($250,000) not later than
December 15, 2000. Buyer shall exercise its best efforts to submit
this sum prior to December 15, 2000, and Sellers agree to accept
prepayments in amounts less than this sum from Buyer on a periodic
basis prior to December 15, 2000, to be credited to the amount due the
Sellers in cash.
<PAGE>
2.3 Payment in Common Stock. Delivery shall be made by the Buyer to the
--------------------------
Selling Shareholders on the Effective Date of One Million One Hundred
Twenty-Five Thousand (1,125,000) of Class A special convertible shares
of authorized stock of Pacific TelCom [Canada] Inc., subject to the
terms and conditions of Section 3.3, Section 4.1 and Section 4.2.
2.4 Adjustment to Purchase Price. That portion of the Purchase Price paid
------------------------------
by Buyer to the Selling Shareholders in Class A special shares of
Buyer is subject to adjustment, as set forth in Section 4.1
"Finality". It is the agreement of Buyer and Sellers that adjustments
to the Purchase Price, pursuant to the provisions regarding "Finality"
shall be such that the value received by Sellers from Buyer, after the
conversion by the Sellers of the Class A special convertible shares of
Pacific TelCom [Canada] Inc. into common shares of Pacific TelCom,
Inc., shall be an amount equal to Eleven Million Two Hundred Fifty
Thousand Dollars ($11,250,000) as the aggregate value of common shares
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