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Title: |
Reorganization Agreement |
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Date: |
2003 |
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Size: |
Preview shows 17KB of 104KB total |
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$44 |
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ID: |
#280373 |
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REORGANIZATION AGREEMENT
Agreement entered into on this 24th day of September, 2003, by and
between Treasury International, Inc., a Delaware corporation (hereinafter
"Treasury") and Retailport.com, Inc., a Delaware corporation (hereinafter
"Retailport.com, Inc.") and Spot Us, Inc. a Florida corporation (hereinafter
"Spot Us") and Spot Us Technologies, Inc., a Florida corporation (hereinafter
"Spot Us Technologies"). Treasury, Retailport.com, Inc., Spot Us and Spot Us
Technologies are referred to collectively herein as the "Parties."
W I T N E S S E T H:
WHEREAS, Spot Us Technologies is a wholly owned subsidiary of Spot Us;
and
WHEREAS, Retailport.com, Inc. is a wholly owned subsidiary of Treasury;
and
WHEREAS, Retailport.com, Inc. wishes to purchase and Spot Us
Technologies wishes to sell all of the assets comprising the business of Spot Us
Technologies; and
WHEREAS, in exchange for the sale of the assets of Spot Us
Technologies, Treasury has agreed to issue voting shares, to be registered
within ninety (90) days of closing, of Treasury to Spot Us or its shareholders
or assigns; and
WHEREAS, the transfer of Spot Us Technologies's assets to
Retailport.com, Inc. in exchange for registered voting shares of Treasury is
intended to be classified as a tax-free Reorganization under the Internal
Revenue Code.
NOW THEREFORE, in consideration of the premises and of the mutual
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto do
hereby agree as follows:
1. Basic Transaction.
(a) Purchase and Sale of Assets. On and subject to the terms and
conditions of this Agreement, Retailport.com, Inc. agrees to purchase from Spot
Us Technologies, and Spot Us Technologies agrees to sell, transfer, convey, and
deliver to Retailport.com, Inc., all of the Acquired Assets at the Closing for
the consideration specified below in this ss.1. Said Acquired Assets are more
fully described in the attached Exhibit "A".
(b) Assumption of Liabilities. On and subject to the terms and
conditions of this Agreement, Retailport.com, Inc. agrees to assume and become
responsible for all of the Assumed Liabilities at the Closing. Retailport.com,
Inc. will not assume or have any responsibility, however, with respect to any
other obligation or liability of the Spot Us Technologies not included within
the definition of Assumed Liabilities. Said Assumed Liabilities are more fully
described on the attached Exhibit "B".
(c) Purchase Price. In exchange for the sale of assets from Spot Us
Technologies to Retailport.com, Inc., Treasury agrees to issue One Million
Dollars ($1,000,000.00) of Treasury's voting shares, based on a price of $1.27
per share, representing 787,402 shares, to Spot Us or its Investors or assigns
(as directed by Spot Us at Closing) (the "Shares").
(d) The Closing. The closing of the transactions contemplated by this
Agreement (the "Closing") shall take place at the offices of Macfarlane Ferguson
& McMullen in Tampa, Florida commencing at 10:00 a.m. local time on or before
September 26, 2003 or such other date as the Parties may mutually determine (the
"Closing Date"); provided, however that the Closing Date shall be no later than
September 30, 2003.
(e) Deliveries at the Closing. At the Closing, (i) Spot Us Technologies
will deliver to Retailport.com, Inc. the various certificates, instruments, and
documents referred to in ss.6(a) below; (ii) Retailport.com, Inc. will deliver
to Spot Us Technologies the various certificates, instruments, and documents
referred to in ss.6(b) below; (iii) Treasury will deliver to Spot Us and/or Spot
Us shareholders the various certificates, instruments, and documents referred to
in ss.6(b) below; (iv) Spot Us will deliver to Treasury the various
certificates, instruments, and documents referred to in ss.6(a) below; (v) Spot
Us Technologies will execute, acknowledge (if appropriate), and deliver to
Retailport.com, Inc. (A) a general assignment in the form attached hereto as
Exhibit "C"; (B) such other instruments of sale, transfer, conveyance, and
assignment as Retailport.com, Inc. and its counsel reasonably may request; (iv)
Retailport.com, Inc. will execute, acknowledge (if appropriate), and deliver to
the Spot Us Technologies (A) an assumption in the form attached hereto as
Exhibit "D" and (B) such other instruments of assumption as Spot Us Technologies
and its counsel reasonably may request; and (v) Treasury will deliver to Spot Us
the Shares specified in ss.1(c) above.
(f) 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 Exhibit "E".
(g) Registration of Shares. Within Ninety (90) days from the Closing of
the transaction contemplated by this Agreement, Treasury shall, at Treasury's
sole expense, file a registration statement with the Securities and Exchange
Commission ("SEC") registering, on behalf of Spot Us and/or its assigns all of
the Shares. Although the Shares will not yet be registered at Closing, the
voting privileges of any Shares issued to Spot Us Investors pursuant to this
transaction will not be impaired or affected as a result of this temporary delay
in registration.
(h) Lockup Agreement. After Treasury has filed the registration
statement with the Securities and Exchange Commission, Spot Us, or its Investors
or assigns, shall enter into a "lock-up" agreement or agreements whereby it or
they agree not to sell more than 5% of its or their holdings during any thirty
(30) day period for a period of one year, commencing one year from the date of
this Agreement or the date that the registration statement is declared
effective, whichever is earlier.
(i) Tax-free Reorganization. All Parties to this Agreement understand
and acknowledge that the transfer of assets from Spot Us Technologies to
Retailport.com, Inc. and the issuance of $1,000,000 in registered voting stock
to Spot Us by Treasury is to be structured to qualify as a tax-free
reorganization under the Internal Revenue Code, and all Parties also understand
and acknowledge that no tax deduction or set-off relating to the transactions
contemplated herein will be proper because of the non-taxable nature of the
reorganization set forth in this Agreement. It is agreed by all parties hereto
that Spot Us and Spot Us Technologies reserve the right to restructure the
transaction to ensure that it qualifies as a tax-free reorganization under the
Internal Revenue Code. The parties agree that the structure of the transaction
contemplated under this Agreement may be changed by Spot Us Technologies to
accomplish its planning goals so long as there is no material adverse financial
effect on Treasury or Retailport.com, Inc.
2. Representations and Warranties of Spot Us . Spot Us represents and
warrants to Treasury and Retailport.com, Inc. that the statements contained in
this ss.2 are correct and complete as of the date of this Agreement and will be
correct and complete as of the Closing Date (as though made then and as though
the Closing Date were substituted for the date of this Agreement throughout this
ss.2), except as set forth in the disclosure schedule attached hereto and
initialed by the Parties (the "Disclosure Schedule"). The Disclosure Schedule
will be arranged in paragraphs corresponding to the lettered and numbered
paragraphs contained in this ss.2.
(a) Organization of Spot Us Spot Us is a corporation duly organized,
validly existing, and in good standing under the laws of the jurisdiction of its
incorporation.
(b) Authorization of Transaction. Spot Us has full power and authority
(including full corporate power and authority) to execute and deliver this
Agreement and to perform its obligations hereunder. Without limiting the
generality of the foregoing, the board of directors of Spot Us and Spot Us
Investors have duly authorized the execution, delivery, and performance of this
Agreement by Spot Us. This Agreement constitutes the valid and legally binding
obligation of Spot Us, enforceable in accordance with its terms and conditions.
(c) Noncontravention. To the Knowledge of Spot Us, neither the
execution and the delivery of this Agreement, nor the consummation of the
transactions contemplated hereby (including the assignments and assumptions
referred to in ss.1 above), will (i) violate any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
restriction of any government, governmental agency, or court to which Spot Us is
subject or any provision of the charter or bylaws of any of Spot Us or (ii)
conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or cancel, or require any notice under any agreement, contract, lease, license,
instrument, or other arrangement to which any of Spot Us and its Subsidiaries is
a party or by which it is bound or to which any of its assets is subject (or
result in the imposition of any Security Interest upon any of its assets),
except where the violation, conflict, breach, default, acceleration,
termination, modification, cancellation, failure to give notice, or Security
Interest would not have a material adverse effect on the financial condition of
Spot Us or on the ability of the Parties to consummate the transactions
contemplated by this Agreement. To the Knowledge of Spot Us, none of Spot Us or
its Subsidiaries needs to give any notice to, make any filing with, or obtain
any authorization, consent, or approval of any government or governmental agency
in order for the Parties to consummate the transactions contemplated by this
Agreement (including the assignments and assumptions referred to in ss.2 above),
except where the failure to give notice, to file, or to obtain any
authorization, consent, or approval would not have a material adverse effect on
the financial condition of Spot Us or on the ability of the Parties to
consummate the transactions contemplated by this Agreement.
(d) Brokers' Fees. Spot Us has no liability or obligation to pay any
fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement for which Treasury or
Retailport.com, Inc. could become liable or obligated. None of the Subsidiaries
of Spot Us has any liability or obligation to pay any fees or commissions to any
broker, finder, or agent with respect to the transactions contemplated by this
Agreement.
(e) Investment. Spot Us (i) understands that the Shares have not yet
been registered under the Securities Act, but also understands that said Shares
will be registered by Treasury, pursuant to the affirmative covenant contained
in ss.1(h), within 90 days of the Closing, (ii) is acquiring the Shares solely
for its own account for investment purposes, and not with a view to the
distribution thereof (except to Spot Us Investors), (iii) is a sophisticated
investor with knowledge and experience in business and financial matters, (iv)
has received certain information concerning Treasury and has had the opportunity
to obtain additional information as desired in order to evaluate the merits and
the risks inherent in holding the Shares, (v) is able to bear the economic risk
and lack of liquidity inherent in holding the Shares, and (vi) is an Accredited
Investor.
(f) Disclaimer of other Representations and Warranties. Except as
expressly set forth in this Section 2, Spot Us makes no representation or
warranty, express or implied, at law or in equity, in respect of any of its
assets (including, without limitation, the Acquired Assets), liabilities or
operations, including, without limitation, with respect to merchantability or
fitness for any particular purpose, and any such other representations or
warranties are hereby expressly disclaimed. Treasury and Retailport.com, Inc.
hereby acknowledge and agree that, except to the extent specifically set forth
in this Section 2, Retailport.com, Inc. is purchasing the Acquired Assets on an
"as-is, where-is" basis. Without limiting the generality of the foregoing, Spot
Us makes no representation or warranty regarding any assets other than the
Acquired Assets or any liabilities other than the Assumed Liabilities, and none
shall be implied at law or in equity.
3. Representations and Warranties of Spot Us Technologies. Spot Us
Technologies represents and warrants to Treasury and Retailport.com, Inc. that
the statements contained in this ss.3 are correct and complete as of the date of
this Agreement and will be correct and complete as of the Closing Date (as
though made then and as though the Closing Date were substituted for the date of
this Agreement throughout this ss.3), except as set forth in the disclosure
schedule accompanying this Agreement and initialed by the Parties (the
"Disclosure Schedule"). The Disclosure Schedule will be arranged in paragraphs
corresponding to the lettered and numbered paragraphs contained in this ss.3.
(a) Organization of Spot Us Technologies. Spot Us Technologies is a
corporation duly organized, validly existing, and in good standing under the
laws of the jurisdiction of its incorporation.
(b) Authorization of Transaction. Spot Us Technologies has full power
and authority (including full corporate power and authority) to execute and
deliver this Agreement and to perform its obligations hereunder. Without
limiting the generality of the foregoing, the board of directors of Spot Us
Technologies and Spot Us Technologies Investors have duly authorized the
execution, delivery, and performance of this Agreement by Spot Us Technologies .
This Agreement constitutes the valid and legally binding obligation of Spot Us
Technologies, enforceable in accordance with its terms and conditions.
(c) Noncontravention. To the Knowledge of any of the Investors of Spot
Us Technologies, neither the execution and the delivery of this Agreement, nor
the consummation of the transactions contemplated hereby (including the
assignments and assumptions referred to in ss.1 above), will (i) violate any
constitution, statute, regulation, rule, injunction, judgment, order, decree,
ruling, charge, or other restriction of any government, governmental agency, or
court to which Spot Us Technologies is subject or any provision of the charter
or bylaws of Spot Us Technologies or (ii) conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any party
the right to accelerate, terminate, modify, or cancel, or require any notice
under any agreement, contract, lease, license, instrument, or other arrangement
to which Spot Us Technologies is a party or by which it is bound or to which any
of its assets is subject (or result in the imposition of any Security Interest
upon any of its assets), except where the violation, conflict, breach, default,
acceleration, termination, modification, cancellation, failure to give notice,
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