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Master Distribution Agreement

 

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Title:

Master Distribution Agreement

Entities:

Date:

2001

Size:

Preview shows 6KB of 37KB total

Price:

$42

ID:

#884553

 

 

► Financing ► Distribution ► Master Distribution Agreements

 

 

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                          MASTER DISTRIBUTION AGREEMENT


between

eSAFETYWORLD, Inc.
(a Nevada corporation)
as Transferor,

and

BLUE MARBLE WORLD, INC.
(a Nevada corporation)
as Transferee

[ ], 2001




SEPARATION AND DISTRIBUTION AGREEMENT

SEPARATION AND DISTRIBUTION AGREEMENT (this "Agreement") made effective as
of the [ ] day of [ ], 2001 (the "Effective Date") by and between eSAFETYWORLD,
Inc., a Nevada corporation ("Transferor"), and Blue Marble World, Inc.., a
Nevada corporation ("Transferee"). Transferor and Transferee are sometimes
individually referred to as a "Party" and collectively referred to as the
"Parties."

WHEREAS, Transferee is a wholly-owned subsidiary of Transferor;

WHEREAS, Transferee and Transferor are in diverse businesses and have
determined that it is in the best interests of the future development of each of
their businesses if they were operated as separate entities;

WHEREAS, in order to effect the separation of the businesses, Transferor
has determined to distribute as a dividend to the public shareholders of its
common stock 6,000,000 shares of the capital stock that Transferor holds in
Transferee; and

NOW, THEREFORE, in consideration of the premises and of the mutual
promises and covenants made in this Agreement and in reliance upon the
representations and warranties made in this Agreement, Transferor and
Transferee, intending to be legally bound, hereby agree as follows:


<PAGE>


DEFINITIONS ARTICLE

As used in this Agreement, the following terms, when capitalized, shall
have the respective meanings set forth in this Definition Article. Other
capitalized terms used in this Agreement are defined elsewhere in the text of
this Agreement.

1. "Contract" shall mean any contract, agreement, lease, license, sales
order, purchase order, instrument or other commitment that is binding on any
Person or any part of its property under applicable law.

2. "Separation Date" means the Effective Date of this Agreement.


ARTICLE REGARDING DISTRIBUTION AND SPIN-OFF

The Parties understand and agree that:

1. It is in the best interests of the future development of each of their
respective businesses if the business of Transferor and the business of
Transferor were operated as independent, separate businesses;

2. The business of Transferor and the business of Transferor be separated
pursuant to a spin-off by Transferor of Transferor's business, all as described
in this Agreement;

3. Each public stockholder of Transferor will receive two shares of
Transferee's common stock for every share of Transferor's common stock held (the
"Dividend");

4. The record date for the distribution will be the close of business on
______, 2001; and

5. No fractional shares of Transferee's common stock will be distributed.

ARTICLE I

TRANSFER OF ASSETS; ASSUMED OBLIGATIONS

1.1 TRANSFER OF ASSETS.

(a) Transferred Assets. Upon the terms and subject to the conditions
contained in this Agreement, on the Closing Date (defined in Section 2.1(a)
below), Transferor will assign, transfer and deliver to Transferee, and
Transferee will accept from Transferor all of Transferor's right, title and
interest in and to all of the properties and assets, tangible



<PAGE>

and intangible, of every kind, nature and description (other than cash and cash
equivalents), wherever located, owned or held by Transferor (in whole or in
part) on the Closing Date and used solely in connection with Transferor's
business (hereinafter sometimes collectively referred to as the "Assets"). Such
Assets shall include and consist of all assets set forth on the Transferee's
balance sheet attached hereto as Exhibit 1.

(b) Excluded Assets. Notwithstanding anything in this Agreement to the
contrary, Assets shall not include Transferee's cash or cash equivalents.

1.2 ASSUMED OBLIGATIONS. Transferee shall assume all of the liabilities set
forth on the Balance Sheet included as Exhibit 1 including a liability due to
eSAFETYWORLD of _____. The liability to eSAFETYWORLD shall be paid from 50% of
the proceeds of any capital infusion received from any source subsequent to the
spinoff. If the balance due to eSAFETYWORLD is not repaid in full by June 30,
2002, the remaining unpaid balance shall be paid, without interest, in 12 equal
monthly installments commencing on July 31, 2002. If Transferee is unable to pay
the balance by July 31, 2003, the unpaid balance may, at Transferor's option, be
converted into shares of Transferee's common stock at a price per share equal to

 

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