Reorganization Agreement By & Among AmeriNet Group.com, Inc., a Delaware corporation, and Vista Vacations International, Inc., a Florida corporation Table of Contents Article I: Plan of Reorganization 1.1 Definitions 1.2 Reorganization 1.3 Effect of the Reorganization 1.4 Articles of Incorporation & Bylaws 1.5 Directors and Officers 1.6 Maximum Shares to Be Issued & Effect on Capital Stock 1.7 Exchange of Certificates 1.8 No Further Ownership Rights in Vista Vacations' Securities 1.9 Lost, Stolen or Destroyed Certificates 1.10 Tax Consequences and Accounting Treatment 1.11 Taking of Necessary Action & Further Action Article II: Representations and Warranties of Vista Vacations 2.1 Organization of Vista Vacations 2.2 Vista Vacations' Capital Structure 2.3 Subsidiaries 2.4 Authority 2.5 Vista Vacations' Financial Statements 2.6 No Undisclosed Liabilities 2.7 No Changes 2.8 Tax and Other Returns and Reports 2.9 Restrictions on Business Activities 2.10 Title of Properties, Absence of Liens and Encumbrances and Condition of Equipment 2.11 Intellectual Property 2.12 Agreements, Contracts and Commitments 2.13 Interested Party Transactions 2.14 Governmental Authorization 2.15 Litigation 2.16 Accounts Receivable 2.17 Minute Books 2.18 Environmental and OSHA 2.19 Brokers' and Finders' Fees 2.20 Labor Matters 2.21 Insurance 2.22 Compliance with Laws 2.23 Complete Copies of Materials 2.24 Binding Agreements & No Default 2.25 Current Report on Form 8-K 2.26 FIRPTA 2.27 Employee Benefit Plans 2.28 Distribution Agreements 2.29 Vista Vacations' Stockholders 2.30 Representations Complete 32 Article III Representations And Warranties of AmeriNet 3.1 Organization, Standing and Power 3.2 Capital Structure 3.3 Authority 3.4 Exchange Act Reports & AmeriNet's Financial Statements 3.5 Broker's and Finders' Fees 3.6 Ownership of Vista Vacations' Common Stock 3.7 Litigation 3.8 Limited Activities 3.9 No Undisclosed Liabilities 3.10 No Changes 3.11 Tax and Other Returns and Reports 3.12 Environmental and OSHA 3.13 Representations Complete Article IV Conduct Prior to the Closing 4.1 Conduct of Business of Vista Vacations 4.2 No Solicitation 4.3 Conduct of Business of AmeriNet Article V Additional Agreements 5.1 Report on Form 8-K 5.2 No Meeting of Vista Vacations' Stockholders 5.3 Access to Information 5.4 Confidentiality 5.5 Expenses 5.6 Public Disclosure 5.7 Consents 5.8 Affiliate Agreements 5.9 Legal Requirements 5.10 Blue Sky Laws 5.11 Best Efforts, Additional Documents and Further Assurances 5.12 Employment Agreements 5.13 Investment by AmeriNet in Vista Vacations 5.14 Vista Vacations' Board of Directors 5.15 Additional Vista Vacations' Covenants Article VI Conditions to The Reorganization 6.1 Conditions to Obligations of Each Party to Effect the Reorganization 6.2 Additional Conditions to Obligations of Vista Vacations 6.3 Additional Conditions to the Obligations of AmeriNet Article VII Survival of Condition Subsequent, Representations and Warranties, Covenants and Escrow 7.1 Survival of Condition Subsequent, Representations and Warranties & Covenants 7.2 Escrow Arrangements 33 Article VIII Termination, Amendment And Waiver 8.1 Termination 8.2 Effect of Termination 8.3 Amendment 8.4 Extension & Waiver Article IX General Provisions 9.1 Interpretation 9.2 Notice 9.3 Merger of All Prior Agreements Herein 9.4 Survival 9.5 Severability 9.6 Governing Law 9.7 Indemnification 9.8 Dispute Resolution 9.9 Benefit of Agreement 9.10 Further Assurances 9.11 Counterparts 9.12 License Schedules Schedule 1.4 Vista Vacations' Constituent Documents Schedule 1.7(C) Vista Vacations' Final Stockholder Data Schedule 2.4(D) Conflicts with Obligations Schedule 2.5(A) Vista Vacations' Financial Statements Schedule 2.7 Changes Since Vista Vacations' Financial Statements Schedule 2.8(A) Tax Disclosure Schedule Schedule 2.10(A) Leased Real Property Schedule 2.10(C) Equipment Schedule 2.11 Intellectual Property Schedule 2.12 Contracts and Agreements Schedule 2.12(A)(12) Debt & Guarantee Instruments Schedule 2.13 Related Party Transactions Schedule 2.14 Governmental Authorization Schedule 2.15 Litigation Schedule 2.19 Brokers' and Finders' Fee Schedule 2.20 List of Employees Schedule 2.21 Insurance Schedule 2.27 Employee Benefit Plans Schedule 2.28 Distribution Agreements Schedule 4.1 Exceptions to Prohibited Pre- Closing Actions Schedule 5.7 Consents Schedule 5.8 Affiliates Schedule 5.12 List and Summary of Employment Agreements Schedule 5.13 Use of Proceeds Schedule 5.14 Projections Schedule 6.3(M) Non-accredited investors Exhibits Exhibit 1.2(D) Superseder & Conversion Agreement Exhibit 2.25 The Form 8-K Information Exhibit 5.8 Affiliate Agreements Exhibit 5.12 Copies of Employment Agreements Exhibit 6.2(D) AmeriNet Legal Opinion Exhibit 6.3(E) Vista Vacations Legal Opinion Exhibit 6.3(L) Confidentiality Agreements Exhibit 7.2(A) Escrow Allocation Information 34 Reorganization Agreement This Reorganization Agreement (the "Agreement") is made and entered into by and among AmeriNet Group.com, Inc., a publicly held Delaware corporation with a class of securities registered under Section 12(g) of the Securities Exchange Act of 1934, as amended ("AmeriNet" and the "Exchange Act," respectively); Vista Vacations International, Inc., a Florida corporation ("Vista Vacations"); and, Teri Nadler, a Florida resident ("Ms. Nadler") on her own behalf and on behalf of all other holders of the common stock of Vista Vacations, each of whom has granted Ms. Nadler an irrevocable power of attorney coupled with an interest to execute this Agreement on their behalf (each such person being hereinafter collectively referred to with Ms. Nadler as the "Former Vista Vacations Stockholders" or generically as a "Former Vista Vacations Stockholder");" AmeriNet, Vista Vacations and the Former Vista Vacations Stockholders being sometimes hereinafter collectively referred to as the "Parties" or generically as a "Party"). Preamble: WHEREAS, the board of directors of AmeriNet and Vista Vacations believe it is in the best interests of each corporation and their respective stockholders that Vista Vacations become a wholly owned subsidiary of AmeriNet and, in furtherance thereof, have approved the Reorganization; and WHEREAS, pursuant to the terms of the Reorganization, as hereinafter set forth, among other things, all of the outstanding and reserved securities of Vista Vacations ("Vista Vacations' Securities") shall be exchanged for between 220,000 and 439,999 shares of AmeriNet's common stock, $0.01 par value ("AmeriNet's Common Stock"), depending on Vista Vacations' net, pre-tax profits during the fiscal period starting on July 1, 2000 and ending on June 30, 2003, as hereinafter described; and WHEREAS, the Parties intend that AmeriNet invest up to $650,000 within 300 days after completion of the Reorganization and the filing of required reports with the United States Securities and Exchange Commission (the "Commission"); and WHEREAS, Vista Vacations, AmeriNet and the Former Vista Vacations Stockholders desire to make certain representations and warranties and other agreements in connection with the Reorganization and their subsequent operating and business relationships; and WHEREAS, the Parties intend, by executing this Agreement, to adopt a plan of reorganization within the meaning of Section 368 of the Internal Revenue Code of 1986, as amended (the "Code"): NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, the Parties, intending to be legally bound, hereby agree as follows: Witnesseth: Article I Plan of Reorganization 1.1 Definitions The following terms, whether or not initially capitalized, will have the meanings set forth below: 35 (A) 1999 10-KSB: AmeriNet's report on Commission Form 10-KSB for the fiscal year ended June 30, 1999. (B) Accredited Investor: A person or entity that meets the asset or income requirements for treatment as an accredited investor specified in Rule 501 of Commission Regulation D promulgated under the Securities Act (C) AmeriNet Exchange Share Number: 220,000 shares of AmeriNet's common stock, $0.01 par value, to be exchanged for 1,265 shares of Vista Vacations' Common stock, without par value. (D) Affiliate: An entity or person that controls, is controlled by or is under common control with another person. (E) AmeriNet Financial Statements: Financial statements, including all related schedules and the notes thereto, of AmeriNet included in the report on Commission Form 10-KSB for the period ended June 30, 1999, as amended; the reports on Commission Form 10-QSB filed subsequent to June 30, 1999 and the financial statements for subsidiaries subsequently acquired by AmeriNet included in current reports on Commission Form 8-K filed since the dates of the Subsequent Quarterly Reports (the "Subsequent Current Reports"); all such financial statements being hereinafter collectively and generically referred to as the "AmeriNet Financial Statements," (F) AmeriNet Schedules: The schedules referenced by the Section designations of this Agreement as to which they apply, annexed at the direction of AmeriNet to this Agreement and constituting a material component of this Agreement. (G) Capital Stock: The generic term used for equity securities, whether common, preferred or otherwise. (H) Closing: The event at which the exchange of all of the Vista Vacations securities will be exchanged for the AmeriNet Exchange Share Number of AmeriNet's Common Stock. (I) Closing Date: The date that the Closing takes place. (J) Commission: The United States Securities and Exchange Commission. (K) Code: The Internal Revenue Code of 1986, as amended. (L) Commercial Software Rights: Packaged commercially available software programs generally available to the public through retail dealers in computer software which have been licensed to end-user licenses and which are used in the licensee's business but are in no way a component of or incorporated in any of its products and related trademarks, technology and know-how. 36 (M) Escrow Number: The number of shares of AmeriNet Common Stock equal to the AmeriNet Exchange Share Number multiplied by twenty percent. (N) Escrow Agent: The Yankee Companies, Inc., a Florida corporation, or such other person designated for such role by AmeriNet. (O) Exchange Act: The Securities Exchange Act of 1934, as amended. (P) Exchange Act Reports: All reports filed by AmeriNet with the Commission pursuant to Sections 12(g), 13 and 15(d) of the Exchange Act. (Q) Exchange Agent: The person or entity responsible, following the Closing, for issuing and delivering the Initial AmeriNet Stock Exchanged to Vista Vacations' Stockholders. (R) Exchange Ratio: The quotient obtained by dividing the AmeriNet Exchange Share Number by the Vista Vacations Exchange Share Number. (S) GAAP: Generally accepted accounting principles, consistently applied. (T) Initial AmeriNet Stock Exchanged: The 220,000 shares of AmeriNet's Common Stock to be issued to Vista Vacations' Stockholders immediately following the Closing, without regard to Vista Vacations' future performance. (U) Initial Funding Installment: The sum of $125,000 payable to the order of Vista Vacations in satisfaction of AmeriNet's commitment under Section 5.13(A) of this Agreement but to be expended solely as provided for in such Section. (V) IRS: The United States Internal Revenue Service. (W) Knowledge: When used to qualify a representation or warranty, the word "knowledge" or any derivations or variations thereof, whether in the form of a word or phrase, shall mean knowledge after reasonable inquiry by an executive officer of the legal entity on whose behalf the assertion is made and will include information that such legal entity should have had in the exercise of reasonable diligence. (X) Material: When used to qualify a representation or warranty, the word "material" or any derivations or variations thereof, whether in the form of a word or phrase, shall mean a variance that could have negatively affected a decision by a reasonably prudent person to engage in the transactions contemplated by this Agreement, and shall be measured both on the occasion in which such term is referenced as well as on an aggregate basis with other similar matters. 37 (Y) NASD: The National Association of Securities Dealers, Inc., a Delaware corporation and self regulatory organization registered with the Commission. (Z) OTC Bulletin Board: The over the counter electronic securities market operated by the NASD. (AA) Performance Shares: Up to 219,999 shares of AmeriNet's Common Stock to be issued to Vista Vacations' Stockholders in the future, based on the performance of Vista Vacations during the period Starting on July 1, 2000 and ending on June 30, 2003. (BB) Securities Act: The Securities Act of 1933, as amended. (CC) Subsequent Current Reports: AmeriNet's reports on Commission Form 8-K filed after the Subsequent Quarterly Reports but prior to the date of this Agreement. (DD) Subsequent Quarterly Reports: AmeriNet's reports on Commission Form 10-QSB for the quarterly periods following the 1999 10-KSB filed prior to the date of this Agreement. (EE) Substantial Compliance: Compliance which the Party for whose benefit or at whose request an act is performed, or for whose benefit or at whose request an act is refrained from could under the circumstances be reasonably expected to accept as full compliance. (FF) Tax: For the purposes of this Agreement, a "Tax" or, collectively, "Taxes," means any and all federal, state, local and foreign taxes, assessments and other governmental charges, duties, impositions and liabilities, including taxes based upon or measured by gross receipts, income, profits, sales, use and occupation, and value added, ad valorem, transfer, franchise, withholding, payroll, recapture, employment, excise and property taxes, together with all interest, penalties and additions imposed with respect to such amounts and any obligations under any agreements or arrangements with any other person with respect to such amounts. (GG) Ten-Day Average Price: The average closing transaction price of a share of AmeriNet's publicly traded Common Stock for the ten most recent days that AmeriNet Common Stock has traded ending on the trading day prior to the date in question, as reported on the OTC Bulletin. (HH) Vista Vacations Exchange Share Number: The 1,265 shares of Vista Vacations' Common Stock outstanding immediately prior to the Closing. (II) Vista Vacations' Financial Statements: Vista Vacations's unaudited financial statements (balance sheets, income statements and related schedules and footnotes) as of and for the fiscal year ending December 31, 1999, prepared in conformity with GAAP. 38 (JJ) Vista Vacations Schedules: The schedules referenced by the Section designations of this Agreement as to which they apply, annexed at the direction of Vista Vacations to this Agreement and constituting a material component of this Agreement. (KK) Vista Vacations Stockholders: Stockholders of Vista Vacations at the time immediately preceding the Closing, collectively and generically, despite the fact that after the Closing they will not hold any Vista Vacations securities. (LL) Additional defined terms are specified in certain sections and subsections below and are characterized by the use of initial letter capitalization. 1.2 Reorganization (A) The Reorganization. (1) At the Closing on this Agreement all of the Vista Vacations' Stockholders will exchange all of their Vista Vacations securities, being an aggregate of 1,265 shares of common stock, without par value (the remaining 235 shares being unreserved treasury shares), for 220,000 shares of AmeriNet Common Stock. (2) The Initial AmeriNet Stock Exchanged shall be allocated among Vista Vacations' Stockholders in proportion to their holdings of Vista Vacations common stock immediately prior to the Closing. (3) (a) In addition to the Initial AmeriNet Stock Exchanged, AmeriNet shall reserve 219,999 shares of its common stock, $0.01 par value (the Performance Shares), to be issued to the former Vista Vacations Stockholders, on the following terms and subject to the following requirements: (i) If Vista Vacations earns net, pre tax profits, determined in accordance with GAAP, of at least $400,000 during the period starting on July 1, 2000 and ending on June 30, 2001, then Vista Vacations' Stockholders shall be issued an aggregate of 36,667 of the Performance Shares; (ii) If Vista Vacations earns net, pre tax profits, determined in accordance with GAAP, of at least $1,200,000 during the period starting on July 1, 2001 and ending on June 30, 2002, then Vista Vacations' Stockholders shall be issued an aggregate 102,666 of the Performance Shares (including the 36,667 that either were or could have been earned as of June 30, 2001); (iii) If Vista Vacations earns net, pre tax profits, determined in accordance with GAAP, of at least $2,800,000 during the period starting on July 1, 2000 and ending on June 30, 2003, then Vista Vacations' Stockholders shall be issued all of 219,999 of the Performance Shares (including the 102,666 that either were or could have been earned as of June 30, 2002); however, all rights to any of the Performance Shares not earned as of such date shall thereupon expire. 39 (b) The Performance Shares will be allocated among the Vista Vacations' Stockholder's, pro rata, based on their ownership of Vista Vacations' Common Stock immediately preceding the Closing, will be reserved for future issuance immediately following the Closing and will be issued within 30 days after AmeriNet's audit for the subject fiscal year confirming the calculations called for. (B) As promptly as practicable after the satisfaction or waiver of the conditions set forth in Article VI, the Parties shall cause the Reorganization to be consummated by effecting the exchange all of Vista Vacations' Common Stock for the Initial AmeriNet Stock Exchanged. (C) The Closing Date and time of the Reorganization shall be the date and time on which the Closing of this Reorganization Agreement is consummated. (D) (1) At the Closing the Parties shall exchange all closing documentation, certificates, resolutions, exhibits, schedules and opinions called for by this Agreement, and (a) Ms. Nellie Tippery, a creditor of Vista Vacations, will irrevocably convert all of Vista Vacations' liabilities to her or her affiliates, including, without limitation, loans aggregating at least $180,000, into the right to receive 66,667 shares of AmeriNet Common Stock, as provided for in the form of superseder and conversion agreement annexed hereto and made a part hereof as exhibit 1.2(D); (b) All stockholders of Vista Vacations other than Ms. Nadler shall have repaid Vista Vacations all debts theretofore owed by them to Vista Vacations (either in the form of loans to stockholders or advances to employees, consultants or independent contractors), including debts aggregating at least $86,000 as heretofore represented to AmeriNet by having tendered an aggregate of 235 shares of their Vista Vacations Common Stock back to Vista Vacations prior to closing; (c) Ms. Nadler shall repay her $25,000 debt to Vista Vacation from an equivalent debt owed to her by Vista Vacations using a portion of the hereinafter defined Initial Funding Installment by AmeriNet; (d) The Honorable Scott Ugell, who serves as a director of Vista Vacations and as its general counsel, shall be paid the sum of $25,000 using a portion of the hereinafter defined Initial Funding Installment by AmeriNet, representing a one time payment for his agreement to serve as Vista Vacations's general counsel and to provide all legal services that it may require until June 30, 2005, at a monthly fee of $1,200; (e) All of Vista Vacations' outstanding securities (being solely 1,265 shares of its Common Stock) shall be exchanged with AmeriNet for 220,000 shares of AmeriNet Common Stock; provided that delivery of the certificates for the Initial AmeriNet Stock Exchanged shall be made directly to Vista Vacations' Stockholders by AmeriNet's stock transfer agent after the Closing; and (f) AmeriNet will tender its check for the Initial Funding Installment. 40 1.3 Effect of the Reorganization. At the Closing, the effect of the Reorganization shall be that Vista Vacations' shall become a wholly owned subsidiary of AmeriNet and that the stockholders of Vista Vacations immediately prior to the Closing shall become stockholders of AmeriNet at the Closing, with no further rights, title or interest in Vista Vacations, other than indirectly as stockholders of AmeriNet. 1.4 Articles of Incorporation & Bylaws. Unless otherwise determined by AmeriNet prior to the Closing Date, the articles of incorporation and bylaws of Vista Vacations shall be amended to conform with those included in Schedule 1.4. 1.5 Directors and Officers. Subject to the requirements of Section 5.14, the directors of Vista Vacations shall continue in office following the Reorganization until their respective successors are duly elected or appointed and qualified, in accordance with the requirements of this Agreement. 1.6 Maximum Shares to Be Issued & Effect on Capital Stock. (A) The number of shares of AmeriNet Common Stock to be issued in exchange for all of the Vista Vacations Common Stock (the only Vista Vacations securities to be outstanding or reserved at the Closing) shall be 439,999, 220,000 of which shall be issued by the Exchange Agent following the Closing, and up to 219,999 may be issued, subject to Vista Vacations' net, pre tax profits during the period starting on July 1, 2000 and ending on June 30, 2003 (as hereinbefore established). (B) Adjustments to Exchange Ratio. The Exchange Ratio shall be adjusted to reflect fully the effect of any stock split, reverse split, stock dividend (including any dividend or distribution of securities convertible into AmeriNet Common Stock or Vista Vacations' Common Stock), reorganization, recapitalization or other like change with respect to AmeriNet Common Stock or Vista Vacations' Common Stock occurring after the date hereof and prior to the Closing. (C) Fractional Shares. No fraction of a share of AmeriNet Common Stock will be issued, but in lieu thereof each holder of shares of Vista Vacations' Common Stock who will otherwise be entitled to a fraction of a share of AmeriNet Common Stock (after aggregating all fractional shares of AmeriNet Common Stock to be received by such holder) shall be entitled to receive from AmeriNet a whole share of AmeriNet Common Stock. 1.7 Exchange of Certificates. (A) Exchange Agent. Unless modified by AmeriNet prior to the Closing Date, Liberty Transfer Co., Inc., of Huntington, New York, AmeriNet's current transfer agent, shall serve as the Exchange Agent. (B) AmeriNet to Provide Common Stock. Promptly after the Closing, AmeriNet shall make available to the Exchange Agent for exchange in accordance with this Article I the shares of AmeriNet Common Stock issuable pursuant to Section 1.6 in exchange for all of the outstanding shares of Vista Vacations' Common Stock. 41 (C) Exchange Procedures. (1) All certificates for shares of Vista Vacations' outstanding common Stock shall be tendered to AmeriNet at the Closing, with medallion signature guarantees or otherwise in proper form for immediate transfer to the order of AmeriNet, whereupon AmeriNet shall issue instructions to the Exchange Agent to issue shares of AmeriNet's Common Stock, in the quantities and names set forth in Schedule 1.7(C), subject to the escrow requirements of Article VII. (2) As soon as practicable after the Closing, and subject to and in accordance with the provisions of Article VII hereof, AmeriNet shall cause to be distributed to the Escrow Agent a certificate or certificates representing that number of shares of AmeriNet Common Stock equal to the Escrow Number which shall be registered in the name of the Escrow Agent. (4) Such shares shall be beneficially owned by the holders on whose behalf such shares were deposited in the Escrow Fund but shall be available to compensate AmeriNet for certain damages as provided in Article VII. (D) Transfers of Ownership. If any certificate for shares of AmeriNet Common Stock is to be issued in a name other than that in which the certificate surrendered in exchange therefor is registered, it will be a condition of the issuance thereof that the certificate so surrendered will be properly endorsed and otherwise in proper form for transfer and that the person requesting such exchange will have paid to AmeriNet or any agent designated by it any transfer or other Taxes required by reason of the issuance of a certificate for shares of AmeriNet Common Stock in any name other than that of the registered holder of the certificate surrendered, or established to the satisfaction of AmeriNet or any agent designated by it that such Tax has been paid or is not payable. (E) No Liability. Notwithstanding anything to the contrary in this Section 1.7, none of the Exchange Agent, AmeriNet, Vista Vacations or any other Party shall be liable to a holder of shares of AmeriNet Common Stock or Vista Vacations' Capital Stock for any amount properly paid to a public official pursuant to any applicable abandoned property, escheat or similar law. 1.8 No Further Ownership Rights in Vista Vacations' Securities. (A) All shares of AmeriNet Common Stock issued upon the surrender for exchange of shares of Vista Vacations' Common Stock in accordance with the terms hereof shall be deemed to have been issued in full satisfaction of all rights pertaining to such shares of Vista Vacations' Common Stock, and there shall be no further registration of transfers on the records of Vista Vacations, of shares of Vista Vacations' Capital Stock which were outstanding immediately prior to the Closing. (B) If, after the Closing, Certificates are presented to Vista Vacations, for any reason, they shall be canceled and exchanged as provided in this Article I. 42 1.9 Lost, Stolen or Destroyed Certificates. In the event any certificates evidencing shares of Vista Vacations' Common Stock shall have been lost, stolen or destroyed, Vista Vacations' transfer agent or share registrar shall, prior to the Closing, have issued in exchange for such lost, stolen or destroyed certificates, upon the making of an affidavit of that fact by the holder thereof, such shares of its Common Stock as may have been required pursuant to Section 1.6; provided, however, that AmeriNet may, in its discretion and as a condition precedent to the issuance of the shares of AmeriNet Common Stock to be exchanged therefor, require the owner of such lost, stolen or destroyed certificates to deliver a bond in such sum as it may reasonably direct as indemnity against any claim that may be made against AmeriNet or the Exchange Agent with respect to the certificates alleged to have been lost, stolen or destroyed. 1.10 Tax Consequences and Accounting Treatment. (A) It is intended by the Parties that the Reorganization shall constitute a reorganization within the meaning of Section 368(a)(1)(B) of the Code and the Parties agree that if modification of the terms of this Agreement in a non-material manner to attain such qualification is necessary, they will negotiate in good faith to make such required modifications. (B) The Parties understand that because of the inclusion of contingencies in determining the quantity of AmeriNet's Common Stock being exchanged for Vista Vacations' Common Stock, the reorganization will not qualify for accounting as a pooling of interests but rather, must be accounted for under the purchase method. 1.11 Taking of Necessary Action: Further Action. If, at any time after the Closing, any such further action is necessary or desirable to carry out the purposes of this Agreement including, without limitation the vesting in AmeriNet of full right, title and possession to all of Vista Vacations' Capital Stock; or, compliance with the requirements of Code Section 368(a)(1)(B); the officers and directors of AmeriNet and Vista Vacations are fully authorized in the name of their respective corporations or otherwise to take, and will take, all such lawful and necessary action. Article II Representations and Warranties of Vista Vacations Vista Vacations hereby represents and warrants to AmeriNet, as a material inducement to its entry into this Agreement, subject to the exceptions specifically disclosed in the Vista Vacations Schedules, as follows: 2.1 Organization of Vista Vacations. (A) Vista Vacations is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida. (B) Vista Vacations has the corporate power to own its property and to carry on its business as now being conducted and as proposed to be conducted by Vista Vacations. (C) Vista Vacations is duly qualified to do business and in good standing as a foreign corporation in each jurisdiction in which the failure to be so qualified would have a material adverse effect on the business, assets (including intangible assets), financial condition, or results of operations of Vista Vacations. 43 (D) Vista Vacations has delivered a true and correct copy of its articles of incorporation and bylaws (or similar governing instruments), each as amended to date, to counsel for AmeriNet. 2.2 Vista Vacations' Capital Structure. (A) The authorized Capital Stock of Vista Vacations consists of 1,500 shares of Common Stock, without par value; (B) There are 1,265 shares of Vista Vacations Common Stock issued and outstanding, held by the persons, and in the amounts, set forth on Schedule 1.7(C), 235 shares previously outstanding having been returned to Vista Vacations' treasury by the holders as payment for the $61,000 owed by them to Vista Vacations. (C) All outstanding shares of Vista Vacations Capital Stock are duly authorized, validly issued, fully paid and nonassessable and not subject to preemptive rights created by statute, the articles of incorporation or bylaws of Vista Vacations or any agreement to which Vista Vacations is a party or is bound. (D) Vista Vacations has no other outstanding or securities reserved for issuance for any purpose, there being no other obligations directly or indirectly obligating Vista Vacations to issue any of its securities to any person for any purpose, there are no other options, warrants, calls, rights, commitments or agreements of any character to which Vista Vacations is a party or by which it is bound obligating Vista Vacations to issue, deliver, sell, repurchase or redeem, or cause to be issued, delivered, sold, repurchased or redeemed, any shares of the Vista Vacations Capital Stock or obligating Vista Vacations to grant, extend or enter into any such option, warrant, call, right, commitment or agreement. 2.3 Subsidiaries. Vista Vacations has no subsidiaries or affiliated companies and does not otherwise own any shares of stock or any interest in, or control, directly or indirectly, any other corporation, partnership, association, joint venture or business entity. 2.4 Authority. (A) Vista Vacations has all requisite corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. (B) The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Vista Vacations. (C) This Agreement has been duly executed and delivered by Vista Vacations and subject to the proper authorization of this Agreement by AmeriNet's board of director and its due execution and delivery by AmeriNet to Vista Vacations, constitutes the valid and binding obligation of Vista Vacations. (D) The execution and delivery of this Agreement by Vista Vacations does not, and the consummation of the transactions contemplated hereby will not, conflict with, or result in any violation of, or default under (with or without notice or lapse of time, or both), or give rise to a right of termination, cancellation or acceleration of any obligation or loss of a material benefit under (i) any provision of the articles of incorporation or bylaws of Vista Vacations or (ii) any material mortgage, indenture, lease, contract or other agreement or instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Vista Vacations or its properties or assets. 44 (E) No consent, approval, order or authorization of, or registration, declaration or filing with, any court, administrative agency or commission or other governmental authority or instrumentality ("Governmental Entity"), is required by or with respect to Vista Vacations in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby, except for such consents, approvals, orders, authorizations, registrations, declarations and filings as may be required under applicable state and federal securities laws (notification on Form D) and the laws of any foreign country. 2.5 Vista Vacations' Financial Statements. (A) Schedule 2.5(A) includes Vista Vacations' Financial Statements. (B) Vista Vacations' Financial Statements are complete and correct in all material respects and have been prepared in accordance GAAP throughout the periods indicated. (C) Vista Vacations' Financial Statements present fairly the financial condition and operating results of Vista Vacations as of the dates and during the periods indicated therein, subject to normal year-end audit adjustments, which will not be material in the aggregate. (D) The unaudited balance sheet of Vista Vacations as of December 31, 1999 is hereinafter referred to as "Vista Vacations' Balance Sheet." (E) Vista Vacations' financial statements can and will be audited, at Vista Vacations' expense, as required to comply with the requirements for material acquisitions under Commission Regulation S-B in a manner permitting AmeriNet to comply with its obligation under the Securities Act and the Exchange Act in conjunction therewith. 2.6 No Undisclosed Liabilities. Vista Vacations does not have any material liabilities or obligations, either accrued or contingent (whether or not required to be reflected in financial statements in accordance with generally accepted accounting principles), and whether due or to become due, which individually or in the aggregate, (i) have not been reflected in the Vista Vacations Balance Sheet (including the notes thereto) or (ii) have not been specifically described in this Agreement or in the Vista Vacations Schedules. 2.7 No Changes. Except as specifically disclosed in Schedule 2.7, since the date of Vista Vacations' Financial Statements there has not been, occurred or arisen any: (A) Transaction by Vista Vacations except in the ordinary course of business as conducted on that date; (B) Capital expenditure by Vista Vacations, either individually or in the aggregate, exceeding $5,000; (C) Destruction, damage to, or loss of any assets (including without limitation intangible assets) of Vista Vacations (whether or not covered by insurance), either individually or in the aggregate, exceeding $5,000; 45 (D) Labor trouble or claim of wrongful discharge, sexual harassment or other unlawful labor practice or action; (E) Change in accounting methods or practices (including any change in depreciation or amortization policies or rates, any change in policies in making or reversing accruals, or any change in capitalization of software development costs) by Vista Vacations; (F) Declaration, setting aside, or payment of a dividend or other distribution in respect to the shares of Vista Vacations, or any direct or indirect redemption, purchase or other acquisition by Vista Vacations of any of its shares; (G) Increase in the salary or other compensation payable or to become payable by Vista Vacations to any of its officers, directors or employees, or the declaration, payment, or commitment or obligation of any kind for the payment, by Vista Vacations, of a bonus or other additional salary or compensation to any such person; (H) Acquisition, sale or transfer of any asset of Vista Vacations except in the ordinary course of business; (I) Formation, amendment or termination of any distribution agreement or any material contract, agreement or license to which Vista Vacations is a party, other than termination by Vista Vacations pursuant to the terms thereof; (J) Loan by Vista Vacations to any person or entity, or guaranty by Vista Vacations of any loan except for expense advances in the ordinary course of business consistent with past practice; (K) Waiver or release of any material right or claim of Vista Vacations, including any write-off or other compromise of any material account receivable of Vista Vacations; (L) The notice or, to Vista Vacations' knowledge, commencement or threat of commencement of any governmental proceeding against or investigation of Vista Vacations or its affairs; (M) Other event or condition of any character that has or would, in Vista Vacations' reasonable judgment, be expected to have a Material Adverse Effect on Vista Vacations; (N) Issuance, sale or redemption by Vista Vacations of any of its shares or of any other of its securities other than issuances of shares of Common Stock pursuant to outstanding Options and Warrants; (O) Change in pricing or royalties set or charged by Vista Vacations except for discounts extended in the ordinary course of business consistent with past practice; or (P) Negotiation or agreement by Vista Vacations to do any of the things described in the preceding clauses (A) through (O) (other than negotiations with AmeriNet and its representatives regarding the transactions contemplated by this Agreement). 46 2.8 Tax and Other Returns and Reports. (A) Tax Returns and Audits. (1) Vista Vacations has accurately prepared and timely filed all required federal, state, local and foreign returns, estimates, information statements and reports ("Returns") relating to any and all Taxes relating or attributable to Vista Vacations or its operations (2) The Returns are true and correct in all material respects and have been completed in accordance with applicable law in all material respects. (3) Vista Vacations has timely paid all Taxes required to be paid with respect to such Returns and has withheld with respect to its employees all federal and state income Taxes, FICA, FUTA and other Taxes it is required to withhold. (4) The accruals for Taxes on the books and records of Vista Vacations are sufficient to discharge the Taxes for all periods (or the portion of any period) ending on or prior to the Closing Date. (5) Vista Vacations has not been delinquent in the payment of any Tax nor, except as set forth in Schedule 2.8(A), is there any Tax deficiency outstanding, proposed or assessed against Vista Vacations, nor has Vista Vacations executed any waiver of any statute of limitations on or extending the period for the assessment or collection of any Tax. (6) (a) No audit or other examination of any Return of Vista Vacations is presently in progress. Except as set forth in Schedule 2.8(A), Vista Vacations does not have any liabilities for unpaid federal, state, local and foreign Taxes, whether asserted or unasserted, known or unknown, contingent or otherwise and Vista Vacations has no knowledge of any basis for the assertion of any such liability attributable to Vista Vacations, or their respective assets or operations. (b) Vista Vacations is not (nor has it ever been) required to join with any other entity in the filing of a consolidated Tax return for federal Tax purposes or a consolidated or combined return or report for state Tax purposes. (7) Vista Vacations is not a party to or bound by any Tax indemnity, Tax sharing or Tax allocation agreement. (8) Vista Vacations has provided, or made available, to AmeriNet or its legal counsel copies of all federal, provincial and state income and all sales and use Tax Returns of Vista Vacations for all periods since its date incorporation. 47 (9) There are (and as of immediately following the Closing Date there will be) no liens on the assets of Vista Vacations relating to or attributable to Taxes. (10) Vista Vacations has no knowledge of any basis for the assertion of any Tax claim which, if adversely determined, would result in liens on the assets of Vista Vacations. (11) Vista Vacations has no property which is being sold, conveyed or transferred pursuant to this Agreement which in the hands of AmeriNet would be treated as being owned by persons other than AmeriNet pursuant to Section 168(f)(8) of the Internal Revenue Code of 1954 as in effect immediately prior to the enactment of the Tax Reform Act of 1986, or any analogous provisions of any state law. (12) None of the assets of Vista Vacations are treated as "Tax-exempt use property" within the meaning of Section 168(h) of the Code. (13) There is no contract, agreement, plan or arrangement, including but not limited to the provisions of this Agreement, covering any employee or former employee of Vista Vacations that, individually or collectively, could give rise to the payment of any amount that would not be deductible pursuant to Sections 280G, 162 or 404 of the Code. (B) No Penalty. Vista Vacations is not subject to any penalty by reason of a violation of any order, rule or regulation of, or a default with respect to any return, report or declaration required to be filed with, any Governmental Entity to which it is subject, which violations or defaults, individually or in the aggregate, would have a material adverse effect on Vista Vacations. 2.9 Restrictions on Business Activities. There is no agreement (assuming the Parties thereto other than Vista Vacations performed their respective obligations thereunder as required), judgment, injunction, order or decree binding upon Vista Vacations which has or could reasonably be expected to have the effect of materially prohibiting or materially impairing any business practice of Vista Vacations, any acquisition of property by Vista Vacations or the conduct of business by Vista Vacations as currently conducted or as currently proposed to be conducted. 2.10 Title of Properties: Absence of Liens and Encumbrances: Condition of Equipment. (A) (1) Vista Vacations owns no real property. (2) Schedule 2.10(A) sets forth a true and complete list of all real property leased by Vista Vacations and the aggregate annual rental or other fee payable under any such lease. (3) To the knowledge of Vista Vacations, all such leases are in good standing, valid and effective in accordance with their respective terms, and there is not with respect to Vista Vacations under any of such leases, any existing default or event of default (or event which with notice or lapse of time, or both, would constitute a default and in respect of which Vista Vacations has not taken adequate steps to prevent such default from occurring), except where the lack of such good standing, validity and effectiveness or the existence of such default or event of default would not have a material adverse effect on Vista Vacations. 48 (B) Vista Vacations holds good and valid title to, or, in the case of leased properties and assets, valid leasehold interests in, all of its tangible properties and assets, real, personal and mixed, used in its business, free and clear of any liens, charges, pledges, security interests or other encumbrances, except as reflected in Vista Vacations' Financial Statements and except for such imperfections of title and encumbrances, if any, which are not substantial in character, amount or extent, and which do not materially detract from the value, or interfere with the present use, of the property subject thereto or affected thereby. (C) (1) The equipment owned or leased by Vista Vacations is listed in Schedule 2.10(C) (the "Equipment"), except individual pieces of equipment owned by Vista Vacations with an individual value of less than $100. (2) To the knowledge of Vista Vacations, the Equipment is, taken as a whole: (a) Adequate for the conduct of the business of Vista Vacations consistent with its past practice; (b) Suitable for the uses to which it is currently employed; (c) In good operating condition; (d) Regularly and properly maintained, reasonable wear and tear excepted; and (e) Not obsolete, dangerous or in need of renewal or replacement, except for renewal or replacement in the ordinary course of business. 2.11 Intellectual Property. (A) (1) Vista Vacations owns, or is licensed to use, all patents, trademarks, trade names, service marks, copyrights, and any applications therefor, maskworks, net lists, schematics, technology, know-how, computer software programs or applications and tangible or intangible proprietary information or material (excluding Commercial Software Rights as defined in paragraph [B] below) that are used or currently proposed to be used in the business of Vista Vacations as currently conducted or as currently proposed to be conducted ("Vista Vacations' Intellectual Property Rights"). (2) Schedule 2.11 sets forth a complete list of all patents, trademarks, registered and material unregistered copyrights, trade names and service marks, and any applications therefor, included in Vista Vacations Intellectual Property Rights, and specifies the jurisdictions in which each such Vista Vacations' Intellectual Property Right has been issued or registered or in which an application for such issuance and registration has been filed, including the respective registration or application numbers and the names of all registered owners, together with a list of all of Vista Vacations' currently marketed software products and an indication as to which, if any, of such software products have been registered for copyright protection with the United States Copyright Office and any foreign offices and by whom such items have been registered. 49 (3) (a) Schedule 2.11 also sets forth a complete list of (i) any requests Vista Vacations has received to make any such registration, including the identity of the requestor and the item requested to be so registered, and the jurisdiction for which such request has been made and (ii) all licenses, sublicenses and other agreements as to which Vista Vacations is a party and pursuant to which Vista Vacations or any other person is authorized to use any Vista Vacations' Intellectual Property Right or other trade secret material to Vista Vacations, and includes the identity of all parties thereto, a description of the nature and subject matter thereof, the applicable royalty and the term thereof. (b) Vista Vacations is not, nor will it be as a result of the execution and delivery of this Agreement or the performance of its obligations hereunder, in violation of any license, sublicense or agreement described on such list. (4) Vista Vacations is the sole and exclusive owner or licensee of, with all right, title and interest in and to (free and clear of any liens or encumbrances), Vista Vacations Intellectual Property Rights, and has sole and exclusive rights (and is not contractually obligated to pay any compensation to any third party in respect thereof) to the use thereof or the material covered thereby in connection with the services or products in respect of which Vista Vacations Intellectual Property Rights are being used. (5) To the knowledge of Vista Vacations, no claims with respect to Vista Vacations Intellectual Property Rights have been asserted or are threatened by any person, nor, to the knowledge of Vista Vacations, is there any valid grounds for any bona fide claims (i) to the effect that the manufacture, sale, licensing or use of any product as now used, sold or licensed or proposed for use, sale or license by Vista Vacations infringes on any copyright, patent, trade mark, service mark or trade secret, (ii) against the use by Vista Vacations of any trademarks, trade names, trade secrets, copyrights, patents, technology, know-how or computer software programs and applications used in Vista Vacations' business as currently conducted or as proposed to be conducted, or (iii) challenging the ownership, validity or effectiveness of any of Vista Vacations Intellectual Property Rights. (6) All trademarks, service marks and copyrights held by Vista Vacations are valid and subsisting. (7) To the knowledge of Vista Vacations, there is no material unauthorized use, infringement or misappropriation of any of Vista Vacations Intellectual Property Rights by any third party, including any employee or former employee of Vista Vacations. (8) Vista Vacations has not been sued or charged as a defendant in any claim, suit, action or proceeding which involves a claim of infringement of any patents, trademarks, service marks, copyrights or violation of any trade secret or other proprietary right of any third party and which has not been finally terminated prior to the date hereof nor does it have any knowledge of any such charge or claim, and there is not any infringement liability with respect to, or infringement or violation by, Vista Vacations of any patent, trademark, service mark, copyright, trade secret or other proprietary right of another. 50 (9) To Vista Vacations' knowledge, no Vista Vacations' Intellectual Property Right or product of Vista Vacations is subject to any outstanding order, judgment, decree, stipulation or agreement restricting in any manner the licensing thereof by Vista Vacations. (10) There is no outstanding order, judgment, decree or stipulation on Vista Vacations, and Vista Vacations is not party to any agreement, restricting in any manner the licensing of Vista Vacations' products by Vista Vacations. (11) Vista Vacations has not entered into any agreement to indemnify any other person against any charge of infringement of any Vista Vacations' Intellectual Property Right. (12) Each current and former employee of and consultant to Vista Vacations has signed a confidentiality agreement substantially in Vista Vacations' standard form as certified by Vista Vacations, delivered to AmeriNet and included in Schedule 2.12. (B) (1) To the best of Vista Vacations' knowledge, Vista Vacations has not breached or violated the terms of its license, sublicense or other agreement relating to any Commercial Software Rights and has a valid right to use such Commercial Software Rights and has a valid right to use such Commercial Rights under such license and agreements. (2) Vista Vacations is not, nor will it be as a result of the execution and delivery of this Agreement or the performance of its obligations hereunder, in violation of any license, sublicense or agreement relating to Commercial Software Rights. (3) No claims with respect to the Commercial Software Rights have been asserted or, to the knowledge of Vista Vacations, are threatened by any person against Vista Vacations, nor to the knowledge of Vista Vacations is there any valid grounds for any bona fide claims (i) to the effect that the manufacture, sale, licensing or use of any product as now used, sold or licensed or proposed for use, sale or license by Vista Vacations infringes on any copyright, patent, trade mark, service mark or trade secret, (ii) against the use by Vista Vacations of any trademarks, trade names, trade secrets, copyrights, patents, technology, know-how or computer software programs and applications used in Vista Vacations' business as currently conducted or as proposed to be conducted, or (iii) challenging the validity or effectiveness of any of Vista Vacations' rights to use Commercial Software Rights. (4) To the knowledge of Vista Vacations, there is no material unauthorized use, infringement or misappropriation of any of the Commercial Software Rights by Vista Vacations or any employee or former employee of Vista Vacations during the period of their employment. (5) To the knowledge of Vista Vacations, no Commercial Software Right is subject to any outstanding order, judgment, decree, stipulation or agreement restricting in any manner the use thereof by Vista Vacations. 51 2.12 Agreements, Contracts and Commitments. (A) Except as specifically disclosed in Schedule 2.12, Vista Vacations does not have, is not a party to nor is it bound by: (1) Any collective bargaining agreements; (2) Any agreements that contain any unpaid severance liabilities or obligations; (3) Any bonus, deferred compensation, incentive compensation, pension, profit-sharing or retirement plans, or any other employee benefit plans or arrangements; (4) Any employment or consulting agreement, contract or commitment with an employee or individual consultant or salesperson or consulting or sales agreement, contract or commitment with a firm or other organization, not terminable by Vista Vacations on thirty days notice without liability, except to the extent general principles of wrongful termination law may limit Vista Vacations' ability to terminate employees at will; (5) Any agreement or plan, including, without limitation, any stock option plan, stock appreciation right plan or stock purchase plan, any of the benefits of which will be increased, or the vesting of benefits of which will be accelerated, by the occurrence of any of the transactions contemplated by this Agreement or the value of any of the benefits of which will be calculated on the basis of any of the transactions contemplated by this Agreement; (6) Any fidelity or surety bond or completion bond; (7) Any lease of personal property having a value individually in excess of $2,000; (8) Any agreement of indemnification or guaranty not entered into in the ordinary course of business; (9) Any agreement, contract or commitment containing any covenant limiting the freedom of Vista Vacations to engage in any line of business or compete with any person; (10) Any agreement, contract or commitment relating to capital expenditures and involving future obligations in excess of $2,000 in any single instance or $10,000 in the aggregate; (11) Any agreement, contract or commitment relating to the disposition or acquisition of assets not in the ordinary course of business or any ownership interest in any corporation, partnership, joint venture or other business enterprise; (12) Any mortgages, indentures, loans or credit agreements, security agreements or other agreements or instruments relating to the borrowing of money or extension of credit, including guaranties referred to in Schedule 2.12(A)(12) hereof; 52 (13) Any purchase order or contract for the purchase of raw materials or acquisition of assets involving $1,000 or more in any single instance or $10,000 or more in the aggregate; (14) Any construction contracts; (15) Any distribution, joint marketing or development agreement; (16) Any other agreement, contract or commitment which involves $1,000 or more in any single instance or more than $10,000 in the aggregate and is not cancelable without penalty within thirty (30) days other than standard end-user licenses of Vista Vacations' products and services in the ordinary course of business consistent with past practice, or (17) Any agreement which is otherwise material to Vista Vacations' business. (B) (1) Vista Vacations has not breached, or received any claim or threat that it has breached, any of the terms or conditions of any agreement, contract or commitment to which it is bound (including those set forth in any of Vista Vacations Schedules) in such manner as would permit any other party to cancel or terminate the same. (2) Each agreement, contract or commitment required to be set forth in any of Vista Vacations Schedules is in full force and effect (assuming such agreement, contract or commitment has been duly authorized, executed and delivered by the other party or parties thereto) and, except as otherwise disclosed or defaults fully remedied or resolved, is not subject to any material default thereunder of which Vista Vacations has knowledge by any party obligated to Vista Vacations pursuant thereto. 2.13 Interested Party Transactions. Except as specifically disclosed in Schedule 2.13, no officer, director or stockholder of Vista Vacations (nor any parent, sibling, descendant or spouse of any of such persons, or any trust, partnership, corporation or other entity (provided, that ownership of no more than one percent of the outstanding voting stock of a publicly traded corporation shall not be deemed an "interest in any entity" for purposes of this Section 2.13) in which any of such persons has or has had an interest), has or has had, directly or indirectly: (A) An interest in any entity which furnished or sold, or furnishes or sells, services or products which Vista Vacations furnishes or sells, or proposes to furnish or sell; (B) Any interest in any entity which purchases from or sells or furnishes to, Vista Vacations, any goods or services; or (C) A beneficial interest in any contract or agreement required to be set forth in Schedule 2.12. 53 2.14 Governmental Authorization. (A) Schedule 2.14 accurately lists each material federal, state, county, local or foreign governmental consent, license, permit, grant, or other authorization issued to Vista Vacations: (1) Pursuant to which Vista Vacations currently operates or holds any interest in any of its properties; or (2) Which is required for the operation of its business or the holding of any such interest (hereinafter collectively referred to as the "Vista Vacations Authorizations"). (B) Vista Vacations Authorizations are in full force and effect and constitute all the material authorizations required to permit Vista Vacations to operate or conduct its business or hold any interest in its properties. 2.15 Litigation. (A) Schedule 2.15 annexed hereto accurately lists all suits, actions and legal, administrative, arbitration or other proceedings and governmental investigations and all other claims, pending or, to Vista Vacations' knowledge, threatened or which Vista Vacations expects will ultimately be threatened or commenced. (B) None of such suits, actions, proceedings, investigations or claims seek to prevent the consummation of the Reorganization. (C) There is no judgment, decree or order enjoining Vista Vacations in respect of, or the effect of which is to prohibit, any business practice or the acquisition of any property or the conduct of business of Vista Vacations. (D) Schedule 2.15 also lists all suits and legal actions initiated by Vista Vacations. 2.16 Accounts Receivable. (A) All receivables of Vista Vacations arose in the ordinary course of business and the aggregate amounts thereof, are to the best of Vista Vacations' knowledge collectible (except to the extent reserved against as reflected in Vista Vacations' Financial Statements) and are carried at values determined in accordance with generally accepted accounting principles consistently applied. (B) To the knowledge of Vista Vacations, none of the receivables of Vista Vacations is subject to any claim of offset, recoupment, setoff or counterclaim and there are no facts or circumstances (whether asserted or unasserted) that would give rise to any such claim. (C) No receivables are contingent upon the performance by Vista Vacations of any obligation or contract except for Vista Vacations' maintenance obligations under its maintenance agreements (although no customer has claimed that Vista Vacations has failed to perform its maintenance obligations). (D) No person has any lien, charge, pledge, security interest or other encumbrance on any of such receivables and no agreement for deduction or discount has been made with respect to any of such receivables. 54 2.17 Minute Books. The minute books of Vista Vacations made available to counsel for AmeriNet contain a complete and accurate summary of all meetings of directors and stockholders since the time of incorporation of Vista Vacations, and reflect all transactions referred to in such minutes accurately in all material respects. 2.18 Environmental and OSHA. (A) Hazardous Material. (1) As of the Closing Date, no material amount of any substance that is regulated by any Governmental Entity or that has been designated by any Governmental Entity to be radioactive, toxic, hazardous or otherwise a danger to health or the environment, including, without limitation, PCBs, asbestos, urea-formaldehyde and all substances listed pursuant to the United States Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended from time to time, and the United States Resource Recovery and Conservation Act of 1976, as amended from time to time, and the regulations and publications promulgated pursuant to said laws (a "Hazardous Material"), is present, as a result of the actions of Vista Vacations (excluding failure of Vista Vacations to remedy the presence of a Hazardous Material resulting from the actions of any previous owner or occupier of Vista Vacations' Property of which presence Vista Vacations does not have knowledge) in violation of any law in effect on or before the Closing Date, in, on or under any property, including the land and the improvements, ground water and surface water thereof, that Vista Vacations or any of its past or present subsidiaries has at any time owned, operated, occupied or leased (collectively, "Vista Vacations' Property"). (2) In any event, Vista Vacations does not know of the presence of any Hazardous Material in, on or under any Vista Vacations' Property. (B) Hazardous Materials Activities. At no time prior to the Closing Date has Vista Vacations transported, stored, used, manufactured, released or exposed its employees or others to Hazardous Materials in violation of any law in effect on or before the Closing Date, nor has Vista Vacations disposed of, transferred, sold, or manufactured any product containing a Hazardous Material (collectively "Hazardous Materials Activities") in violation of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Resource Conservation and Recovery Act of 1976, the Toxic Substances Control Act of 1976 and any other applicable state or federal acts (including the rules and regulations thereunder) as in effect on or before the Closing Date. 55 (C) Permits. Vista Vacations currently holds no environmental approvals, permits, licenses, clearances and consents and none are necessary for the conduct of Vista Vacations' Hazardous Material Activities and other businesses of Vista Vacations as such activities and businesses are currently being conducted. 2.19 Brokers' and Finders' Fees. Except as set forth in Schedule 2.19, Vista Vacations has not incurred, nor will it incur, directly or indirectly, any liability for brokerage or finders' fees or agents' commissions or any similar charges in connection with this Agreement or any transaction contemplated hereby. 2.20 Labor Matters. (A) Vista Vacations is in compliance in all material respects with all currently applicable laws and regulations respecting employment, discrimination in employment, terms and conditions of employment and wages and hours and occupational safety and health and employment practices, and is not engaged in any unfair labor practice. (B) Vista Vacations has not received any notice from any Governmental Entity, and to the knowledge of Vista Vacations, there has not been asserted before any Governmental Entity, any claim, action or proceeding to which Vista Vacations is a party or involving Vista Vacations, and there is neither pending nor, to the knowledge of Vista Vacations, threatened, any investigation or hearing concerning Vista Vacations arising out of or based upon any such laws, regulations or practices. (C) Vista Vacations has not received notice of and to the best of its knowledge, there are no pending claims against Vista Vacations under any workers compensation plan or policy or for long term disability. (D) To the best of Vista Vacations' knowledge, it has complied in all material respects with all applicable provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 and has no obligations with respect to any former employees or qualifying beneficiaries thereunder. (E) Schedule 2.20 lists all current employees of Vista Vacations and their current salary and vacation accruals. 2.21 Insurance. (A) Schedule 2.21 lists all insurance policies and fidelity bonds covering the assets, business, equipment, properties, operations, software errors and omissions, employees, officers and directors of Vista Vacations as well as all claims made under any insurance policy by Vista Vacations since its incorporation. (B) There is no claim by Vista Vacations pending under any of such policies or bonds as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds. (C) All premiums payable under all such policies and bonds have been paid and Vista Vacations is otherwise in compliance in all material respects with the terms of such policies and bonds (or other policies and bonds providing substantially similar insurance coverage). (D) Such policies of insurance and bonds are of the type and in amounts customarily carried by persons conducting businesses similar to those of Vista Vacations. 56 (E) Vista Vacations does not know of any threatened termination of or material premium increase with respect to any of such policies. (F) Vista Vacations has never been denied insurance coverage nor has any insurance policy of Vista Vacations ever been canceled for any reason. 2.22 Compliance with Laws. Vista Vacations has not received any notices of violation with respect to and to the best of its knowledge has complied in all material respects with and is not in violation in any material respect of any federal, state or local statute, law or regulation with respect to the conduct of its business, or the ownership or operation of its business, assets or properties. 2.23 Complete Copies of Materials. Vista Vacations has delivered or made available true and complete copies of each document (or summaries of same) which has been requested by AmeriNet or its counsel. 2.24 Binding Agreements: No Default. Each of the contracts, agreements and other instruments shown on the Exhibits and Schedules referred to in this Agreement to which Vista Vacations is a party is a legal, binding and enforceable obligation in favor of or against Vista Vacations (assuming that such contracts, agreements and instruments are binding on all other parties thereto, Vista Vacations having no reason to believe that they are not), in accordance with its terms, and no party with whom Vista Vacations has an agreement or contract is, to Vista Vacations' knowledge, in default thereunder or has breached any material terms or provisions thereof (subject to all applicable bankruptcy, insolvency, reorganization and other laws applicable to creditors' rights and remedies and to the exercise of judicial discretion in accordance with general principles of equity). 2.25 Current Report on Form 8-K (A) The information supplied by Vista Vacations for inclusion in the current report on Commission Form 8-K within 15 days after the Closing Date annexed hereto as Exhibit 2.25 and in all other reports which AmeriNet will file thereafter pursuant to Sections 12(g), 13 and 15(d) of the Exchange Act, shall not contain any statement which, at such time and in light of the circumstances under which it shall be made, is false or misleading with respect to any material fact, or shall omit to state any material fact necessary in order to make the statements made therein not false or misleading; or omit to state any material fact necessary to correct any statement which has become false or misleading. (B) If at any time prior to the Closing Date any event relating to Vista Vacations or any of its affiliates, officers or directors should be discovered by Vista Vacations which should be set forth in the Current Report on Form 8-K, Vista Vacations shall promptly inform AmeriNet. 2.26 FIRPTA. Vista Vacations is not, and has not been at any time, a "United States real property holding corporation" within the meaning of Section 897(c)(2) of the Code. 57 2.27 Employee Benefit Plans. (A) Schedule 2.27 lists all employee benefit plans [as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, "ERISA"] and all bonus, stock option, stock purchase, incentive, deferred compensation, supplemental retirement, severance and other similar fringe or employee benefit plans, programs or arrangements, and any current or former employment or executive compensation or severance agreements, written or otherwise, for the benefit of, or relating to, any employee of Vista Vacations, any trade or business (whether or not incorporated) which is a member or which is under common control with Vista Vacations (an "ERISA Affiliate") within the meaning of Section 414 of the Code, or any subsidiary of Vista Vacations (together, the "Employee Plans"), and a copy of each such Employee Plan has been provided to AmeriNet. (B) (1) None of the Employee Plans promises or provides retiree medical or other retiree welfare benefits to any person except as required by applicable law, including but not limited to COBRA; (2) (a) To the best of Vista Vacations' knowledge: all Employee Plans are in compliance in all material respects with the requirements prescribed by any and all applicable statutes (including ERISA and the Code), orders, or governmental rules and regulations currently in effect with respect thereto (including all applicable requirements for notification to participants or beneficiaries or the Department of Labor, the IRS or Secretary of the Treasury), and Vista Vacations has performed in all material respects all obligations required to be performed by it under, is not in default under or violation of, and has no knowledge of any default or violation by any other party to, any of the Employee Plans; (b) Each Employee Plan intended to qualify under Section 401(a) of the Code and each trust intended to qualify under Section 501(a) of the Code either has received a favorable determination letter with respect to each such Employee Plan from the IRS or still has a remaining period of time under applicable Treasury Regulations or IRS pronouncements in which to apply for such a determination letter and to make any amendments necessary to obtain a favorable determination; (c) No Employee Plan is or within the prior six years has been subject to, and Vista Vacations has not incurred and does not expect to incur any liability under, Title IV of ERISA or Section 412 of the Code; and (d) To the best of Vista Vacations' knowledge, nothing in any Employee Plan precludes or interferes with AmeriNet's ability to cause Vista Vacations to terminate (or consolidate, at AmeriNet's option) any Employee Plan after the Closing Date; provided that: (i) the Employee Plans may be terminated prospectively only, subject to rights accrued by Vista Vacations' employees at the time of such termination and (ii) not more than sixty days notice may be required to terminate certain Employee Plans. (3) None of the following now exists or has existed within the six-year period ending on the date hereof with respect to any Employee Plan: (a) Any act or omission by Vista Vacations constituting a violation of Section 402, 403, 404 or 405 of ERISA; 58 (b) Any act or omission by Vista Vacations which constitutes a violation of Sections 406 and 407 of ERISA and is not exempted by Section 408 of ERISA or which constitutes a violation of Section 4975(c) of the Code and is not exempted by Section 4975(d) of the Code; (c) Any act or omission by Vista Vacations constituting a violation of Section 503, 510 or 511 of ERISA; or (IV) any act or omission by Vista Vacations which could give rise to liability under Section 502 of ERISA or under Sections 4972 or 4975 through 4980 of the Code. (4) (a) Each Employee Plan has been maintained in substantial compliance with its terms, and all contributions, premiums or other payments due from Vista Vacations or any of its subsidiaries to (or under) any such Employee Plan have been fully paid or adequately provided for on the audited Vista Vacations' Financial Statements for the most recently-ended fiscal year. (b) To the best of Vista Vacations' knowledge, all accruals thereon (including, where appropriate proportional accruals for partial periods) have been made in accordance with generally accepted accounting principles consistently applied on a reasonable basis. (c) There has been no amendment, written interpretation or announcement (whether or not written) by Vista Vacations with respect to, or change in employee participation or coverage under, any Employee Plan that would increase materially the expense of maintaining such plans or arrangements, individually or in the aggregate, above the level of expense incurred with respect thereto for the most recently-ended fiscal year. (5) Vista Vacations has made available to AmeriNet complete, accurate and current copies of all Employee Plans and all amendments, documents, correspondence and filings relating thereto, including but not limited to any statements, filings, reports or returns filed with any governmental agency with respect to the Employee Plans at any time within the three-year period ending on the date hereof. 2.28 Distribution Agreements. No third party or parties have the right to distribute Vista Vacations' products or to market its services except as disclosed in Schedule 2.28, which discloses the names, addresses, telephone numbers, fax numbers, e-mail addresses and federal Tax identification numbers of each such person, together with a summary of the agreements pursuant to which Vista Vacations' products are distributed or its services are marketed. 2.29 Vista Vacations' Stockholders All of Vista Vacations' Stockholders qualify as Accredited Investors and each Vista Vacations' Stockholder hereby represents and warrants that he, she or it: (A) Has had access through the Commission's Internet web site at www.sec.gov, in the EDGAR Archives sub-cite, to all of AmeriNet's reports filed with the Commission during the past two fiscal years, has reviewed all such reports and has, either directly or through a representative, been granted access to all of AmeriNet's officers and directors, and to all officers and directors of AmeriNet's operating subsidiaries, for purposes of providing all disclosure required under applicable federal and state securities laws in conjunction with the exchange contemplated by this Agreement; 59 (B) Has been advised that: (1) The securities to be issued to them by AmeriNet in exchange for their shares of Vista Vacations' Common Stock have not been registered under the Exchange Act or any comparable state securities laws, but rather, are being issued in reliance on the exemption from registration under the Securities Act provided by Section 4(6) thereof; (2) All certificates for their shares of AmeriNet Common Stock will bear legends restricting any transactions therein, directly or indirectly, unless they are first registered under applicable federal and state securities laws or the proposed transaction is exempt from such registration requirements, and such facts are demonstrated to the satisfaction of AmeriNet and its legal counsel, based on such third party legal opinions, affidavits and transfer agency procedures as AmeriNet shall reasonably require or have in place generally; (3) AmeriNet's transfer agent has been instructed to decline transfers of certificates for their shares of AmeriNet Common Stock, unless the foregoing requirements have been met and have been confirmed as having been met by a duly authorized officer of AmeriNet. (C) Has independently determined through his, her or its own legal counsel, that all requirements of their states of domicile for the issuance of the shares of AmeriNet's Common Stock called for by this Agreement have been met, or will have been met, prior to Closing, by such legal counsel acting on behalf of the Parties to this Agreement. 2.30 Representations Complete. None of the representations or warranties made by Vista Vacations or its stockholders, nor any statement made in any Schedule, Exhibit or certificate furnished by Vista Vacations pursuant to this Agreement, when read in its entirety, contains or will contain any untrue statement of a material fact at the time the Closing takes place, or omits or will omit to state any material fact necessary in order to make the statements contained herein or therein, in the light of the circumstances under which made, not misleading. Article III Representations and Warranties of AmeriNet AmeriNet represents and warrants to Vista Vacations as a material inducement to its entry into this Agreement, subject to the exceptions specifically disclosed in the AmeriNet Schedules or in AmeriNet's Exchange Act Reports, as follows: 3.1 Organization, Standing and Power. (A) AmeriNet is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. (C) AmeriNet has the corporate power to own its properties and to carry on its business as now being conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the failure to be so qualified would have a material adverse effect on AmeriNet taken as a whole. 60 (D) A true and correct copy of its articles of incorporation and bylaws, as amended to date, are available at the Commission's web site in the EDGAR archives, filed as exhibit's to the report on Form 10-KSB for the year ended June 30, 1999 and any future modifications thereof will be filed with the Commission and will also be available at such site. 3.2 Capital Structure. (A) (1) The authorized stock of AmeriNet consists of 20,000,000 shares of Common Stock, par value $0.01 per share, and 5,000,000 shares of Preferred Stock, $0.01 par value per share, the attributes of which are to be determined on a case by case basis by AmeriNet's board of directors. (2) AmeriNet had 10,663,460 shares of Common Stock issued and outstanding as of February 29, 2000 and no shares of Preferred Stock have ever been issued. (3) As of February 29, 2000, AmeriNet had reserved 4,876,814 shares of Common Stock (excluding those issuable pursuant to the terms of this Agreement) for issuance as described in AmeriNet's annual report on Form 10-KSB for the year ended June 30, 1999 and the quarterly reports on Form 10-QSB for the calendar quarters ended September 30, 1999 and December 31, 1999 and any Subsequent Current Reports. (4) There are no other options, warrants, calls, rights, commitments or agreements of any character to which AmeriNet is a party or by which it is bound obligating AmeriNet to issue, deliver, sell, repurchase or redeem, or cause to be issued, delivered, sold, repurchased or redeemed, any shares of the Capital Stock of AmeriNet or obligating AmeriNet to grant, extend or enter into any such option, warrant, call, right, commitment or agreement, other than as may be required in conjunction with other acquisitions under negotiation, rights granted to investors under common stock purchase warrants since December 31, 2000 and as disclosed in the Exchange Act Reports. (5) Pursuant to AmeriNet's articles of incorporation, they may be amended by action of the board of directors without stockholder approval to increase the amount of authorized Capital Stock. (B) All of AmeriNet's shares of common and preferred stock have been duly authorized, and all of their issued and outstanding shares of common stock have been validly issued, are fully paid and nonassessable and are free of any liens or encumbrances other than any liens or encumbrances created by or imposed upon the holders thereof. (C) The shares of AmeriNet Common Stock to be issued pursuant to the Reorganization will be duly authorized, validly issued, fully paid, and nonassessable. 61 3.3 Authority. (A) AmeriNet has all requisite corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. (B) The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of AmeriNet. (C) This Agreement has been duly executed and delivered by AmeriNet and, subject to having also been approved by Vista Vacations' board of directors and properly executed and delivered by Vista Vacations, constitutes a valid and binding obligation of AmeriNet. (D) The execution and delivery of this Agreement do not, and the consummation of the transactions contemplated hereby will not, conflict with, or result in any violation of, or default (with or without notice or lapse of time, or both), or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under: (1) Any provision of the articles of incorporation or bylaws of AmeriNet; or (2) Any mortgage, indenture, lease, contract or other agreement or instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to AmeriNet or its properties or assets, other than any such conflicts, violations, defaults, terminations, cancellations or accelerations which individually or in the aggregate would not have a material adverse effect on the ability of AmeriNet to consummate the transactions contemplated hereby. (E) No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity, is required by or with respect to AmeriNet in connection with the execution and delivery of this Agreement by AmeriNet or the consummation by AmeriNet of the transactions contemplated hereby, except for: (1) Such consents, approvals, orders, authorizations, registrations, declarations and filings as may be required under applicable state and federal securities laws (a Form D Notification Statement) and the laws of any foreign country; and (2) Such other consents, authorizations, filings, approvals and registrations which if not obtained or made would not have a material adverse effect on the ability of AmeriNet to consummate the transactions contemplated hereby. 3.4 Exchange Act Reports; AmeriNet Financial Statements. (A) All materials required to be filed by AmeriNet with the Commission pursuant to Sections 13 or 15(d) of the Exchange Act since current management took office starting in November of 1998, have been filed and are available on the Commission's Internet web site at www.sec.gov in its EDGAR Archives sub-site. 62 (B) To the best of AmeriNet's knowledge, the Exchange Act Reports comply in all material respects with the requirements of the Exchange Act and do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, except to the extent corrected by a subsequently filed document with the Commission or by information provided by AmeriNet to Vista Vacations. (C) The AmeriNet Financial Statements comply as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto, have been prepared in accordance with generally accepted accounting principles consistently applied and fairly present the consolidated financial position of AmeriNet at the date thereof and of its operations and cash flows for the period then ended, subject to normal year end audit adjustments. (D) There has been no change in AmeriNet accounting policies or estimates except as described in the notes to AmeriNet's Financial Statements or in subsequently filed Exchange Act Reports. (E) AmeriNet has no material obligations, other than: (1) Those set forth in AmeriNet's Financial Statements (obligations not required to be set forth in AmeriNet's Financial Statements under generally accepted accounting principles being deemed not material); (2) Those resulting from ongoing acquisition activities which developed after the date of AmeriNet's Financial Statements but are not yet definite enough to require filing in the Exchange Act Reports; (3) Those pertaining to confidential letters of intent; or (4) Those disclosed by AmeriNet to Vista Vacations in writing. (F) The information supplied by AmeriNet for inclusion in the Current Report on Form 8-K pertaining to this Reorganization will not contain any statement which, at such time and in light of the circumstances under which it shall be made, is false or misleading with respect to any material fact, or shall omit to state any material fact necessary in order to make the statements therein not false or misleading. (G) If at any time prior to the Closing Date any event relating to AmeriNet or any of its affiliates, officers or directors should be discovered by AmeriNet which should be set forth in a current report on Form 8-K, AmeriNet will promptly inform Vista Vacations. (H) Notwithstanding the foregoing, AmeriNet makes no representation or warranty with respect to any information supplied by Vista Vacations which is contained in any of the foregoing documents. (I) To the best of AmeriNet's knowledge, there are no currently outstanding comment letters from the Commission that have not been responded to and complied with. 3.5 Broker's and Finders' Fees. Except as disclosed in the Exchange Act Reports, AmeriNet has not incurred, and will not incur, directly or indirectly, any liability for brokerage or finders' fees or agents' commissions or any similar charges in connection with this Agreement, the Reorganization or any transaction contemplated hereby. 63 3.6 Ownership of Vista Vacations' Capital Stock. As of the date of execution of this Agreement, AmeriNet does not own any shares of Vista Vacations' Capital Stock. 3.7 Litigation. There are no suits, actions or legal, administrative, arbitration or other proceedings or governmental investigations against AmeriNet pending or, to AmeriNet's knowledge, threatened, which (i) if determined adversely to AmeriNet, could be expected to result in a material adverse effect on the financial condition or results of operations of AmeriNet, or (ii) seek to prevent the consummation of the Reorganization. 3.8 Limited Activities (A) AmeriNet is a holding company with no material operations or assets other than the shares of its subsidiaries common stock and operations pertaining to supervision and coordination of the activities of its subsidiaries, provision of support services for its subsidiaries, acquisition related activities and compliance with applicable laws, including federal securities and internal revenue laws. (B) AmeriNet currently has two operating subsidiaries, Wriwebs.com, Inc., and Trilogy International, Inc., both Florida corporations, and is a party to a letter of intent to acquire Custom Software Systems, Inc., a Virginia corporation currently headquartered in Houston, Texas. 3.9 No Undisclosed Liabilities. AmeriNet does not have any material liabilities or obligations, either accrued or contingent (whether or not required to be reflected in financial statements in accordance with generally accepted accounting principles), and whether due or to become due, which individually or in the aggregate, (i) have not been reflected in the AmeriNet Financial Statements (including the notes thereto) or (ii) have not been specifically described in this Agreement or in the Exchange Act Reports. 3.10 No Changes. Since the date of the latest AmeriNet Exchange Act Report there has not been, occurred or arisen any: (A) Destruction, damage to, or loss of any assets (including without limitation intangible assets) of AmeriNet or its subsidiaries (whether or not covered by insurance), either individually or in the aggregate, exceeding $30,000, other than losses by subsidiaries in the ordinary course of business. (B) Labor trouble or claim of wrongful discharge, sexual harassment or other unlawful labor practice or action; (C) Change in accounting methods or practices (including any change in depreciation or amortization policies or rates, any change in policies in making or reversing accruals, or any change in capitalization of software development costs) by AmeriNet or its subsidiaries; 64 (D) Declaration, setting aside, or payment of a dividend or other distribution in respect to the shares of AmeriNet or its subsidiaries, or any direct or indirect redemption, purchase or other acquisition by AmeriNet or its subsidiaries of any of their shares; (E) Other event or condition of any character that has or would, in AmeriNet or its subsidiaries' reasonable judgment, be expected to have a material adverse effect on AmeriNet or its subsidiaries; (F) Negotiation or agreement by AmeriNet or its subsidiaries to do any of the things described in the preceding clauses (A) through (F) other than negotiations with AmeriNet or its subsidiaries and their representatives regarding the transactions contemplated by this Agreement or other acquisitions. 3.11 Tax and Other Returns and Reports. (A) Tax Returns and Audits. (1) AmeriNet and its subsidiaries have accurately prepared and filed all required federal, state, local and foreign returns, estimates, information statements and reports ("Returns") relating to any and all Taxes relating or attributable to AmeriNet or its subsidiaries or their operations and such Returns are true and correct in all material respects and have been completed in accordance with applicable law in all material respects. (2) AmeriNet and its subsidiaries have timely paid all Taxes required to be paid with respect to such Returns and have withheld with respect to its employees all federal and state income taxes, FICA, FUTA and other Taxes they are required to withhold. (3) The accruals for Taxes on the books and records of AmeriNet and its subsidiaries are sufficient to discharge the Taxes for all periods (or the portion of any period) ending on or prior to the Closing Date. (4) AmeriNet and its subsidiaries have not been delinquent in the payment of any Tax nor, except as disclosed in the Exchange Act Reports, is there any Tax deficiency outstanding, proposed or assessed against AmeriNet or its subsidiaries, nor has AmeriNet or its subsidiaries executed any waiver of any statute of limitations on or extending the period for the assessment or collection of any Tax. (5) Except as disclosed in the Exchange Act Reports: (a) No audit or other examination of any Return of AmeriNet or its subsidiaries is presently in progress. (b) AmeriNet and its subsidiaries do not have any liabilities for unpaid federal, state, local and foreign Taxes, whether asserted or unasserted, known or unknown, contingent or otherwise and AmeriNet and its subsidiaries have no knowledge of any basis for the assertion of any such liability attributable to AmeriNet or its subsidiaries, or their respective assets or operations. 65 (6) AmeriNet and its subsidiaries are not parties to or bound by any tax indemnity, tax sharing or tax allocation agreement. (7) AmeriNet and its subsidiaries have provided, or made available to Vista Vacations or its legal counsel copies of all federal, provincial and state income and all sales and use Tax Returns of AmeriNet or its subsidiaries for all periods since January 1, 1998. (8) There are (and as of immediately following the Closing Date there will be) no liens on the assets of AmeriNet or its subsidiaries relating to or attributable to Taxes. (9) AmeriNet and its subsidiaries have no knowledge of any basis for the assertion of any Tax claim which, if adversely determined, would result in liens on the assets of AmeriNet or its subsidiaries. (10) There is no contract, agreement, plan or arrangement, including but not limited to the provisions of this Agreement, covering any employee or former employee of AmeriNet or its subsidiaries that, individually or collectively, could give rise to the payment of any amount that would not be deductible pursuant to Sections 280G, 162 or 404 of the Code. (B) No Penalty. Neither AmeriNet nor its subsidiaries are subject to any penalty by reason of a violation of any order, rule or regulation of, or a default with respect to any return, report or declaration required to be filed with, any Governmental Entity to which it is subject, which violations or defaults, individually or in the aggregate, would have a material adverse effect on AmeriNet or its subsidiaries. 3.12 Environmental and OSHA. (A) Hazardous Material. (1) As of the Closing Date, no material amount of any substance that is regulated by any Governmental Entity or that has been designated by any Governmental Entity to be radioactive, toxic, hazardous or otherwise a danger to health or the environment, including, without limitation, PCBs, asbestos, urea-formaldehyde and all substances listed pursuant to the United States Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended from time to time, and the United States Resource Recovery and Conservation Act of 1976, as amended from time to time, and the regulations and publications promulgated pursuant to said laws (a "Hazardous Material"), is present, as a result of the actions of AmeriNet or its subsidiaries (excluding failure of AmeriNet or its subsidiaries to remedy the presence of a Hazardous Material resulting from the actions of any previous owner or occupier of AmeriNet or its subsidiaries' property of which presence AmeriNet or its subsidiaries do not have knowledge) in violation of any law in effect on or before the Closing Date, in, on or under any property, including the land and the improvements, ground water and surface water thereof, that AmeriNet or its subsidiaries own, operate, occupy or lease. 66 (2) In any event, AmeriNet and its subsidiaries do not know of the presence of any Hazardous Material in, on or under any of their property. (B) Hazardous Materials Activities. At no time prior to the Closing Date has AmeriNet or its subsidiaries transported, stored, used, manufactured, released or exposed its employees or others to Hazardous Materials in violation of any law in effect on or before the Closing Date, nor has AmeriNet or its subsidiaries disposed of, transferred, sold, or manufactured any product containing a Hazardous Material (collectively "Hazardous Materials Activities") in violation of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Resource Conservation and Recovery Act of 1976, the Toxic Substances Control Act of 1976 and any other applicable state or federal acts (including the rules and regulations thereunder) as in effect on or before the Closing Date. (C) Permits. AmeriNet or its subsidiaries currently holds no environmental approvals, permits, licenses, clearances and consents and none are necessary for the conduct of AmeriNet or its subsidiaries' Hazardous Material Activities and other businesses of AmeriNet or its subsidiaries as such activities and businesses are currently being conducted. 3.13 Representations Complete. None of the representations or warranties made by AmeriNet or its subsidiaries, nor any statement made in any Schedule, Exhibit or certificate furnished by AmeriNet or its subsidiaries pursuant to this Agreement, when read in its entirety, contains or will contain any untrue statement of a material fact at the Closing Date, or omits or will omit to state any material fact necessary in order to make the statements contained herein or therein, in the light of the circumstances under which made, not misleading. Article IV Conduct Prior to the Closing 4.1 Conduct of Business of Vista Vacations. (A) During the period from the date of this Agreement and continuing until the earlier of the termination of this Agreement or the Closing, Vista Vacations agrees (except to the extent that AmeriNet shall otherwise consent in writing), to carry on its business in the usual, regular and ordinary course in substantially the same manner as heretofore conducted and, to the extent consistent with such business, use all reasonable efforts consistent with past practice and policies to preserve intact Vista Vacations' present business organizations, keep available the services of its present officers and key employees and preserve their relationships with customers, suppliers, distributors, licensors, licensees, and others having business dealings with it, to the end that Vista Vacations' goodwill and ongoing businesses shall be unimpaired at the Time of Closing. (B) Vista Vacations shall promptly notify AmeriNet of any event or occurrence or emergency not, in the reasonable judgment of Vista Vacations, in the ordinary course of business of Vista Vacations, and any event which could, in the reasonable judgment of Vista Vacations, have a material adverse effect on Vista Vacations. 67 (C) Except as expressly contemplated by this Agreement or set forth in Schedule 4.1, Vista Vacations shall not, without the prior written consent of AmeriNet: (1) Enter into any commitment or transaction not in the ordinary course of business (i) to be performed over a period longer than six (6) months in duration, or (ii) to purchase fixed assets for a purchase price in excess of $1,000; (2) Grant any severance or termination pay to any director, officer or employee except (i) payments made pursuant to standard written agreements outstanding on the date hereof or (ii) in the case of employees who are not officers, grants which are made in the ordinary course of business in accordance with Vista Vacations' standard past practices; (3) Except for licenses granted to end-users pursuant to Vista Vacations' standard license agreements, transfer to any person or entity any rights to Vista Vacations' Intellectual Property; (4) Enter into or amend any agreements pursuant to which any other party is granted exclusive marketing or other rights of any type or scope with respect to any products of Vista Vacations; (5) Violate, amend or otherwise modify the terms of any of the contracts or agreements required to be set forth in Vista Vacations Schedules; (6) Commence any litigation; (7) Declare or pay any dividends on or make any other distributions (whether in cash, stock or property) in respect of any of its Capital Stock, or split, combine or reclassify any of its Capital Stock or issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution for shares of Capital Stock of Vista Vacations, or repurchase or otherwise acquire, directly or indirectly, any shares of its Capital Stock except from former employees, directors and consultants in accordance with agreements providing for the repurchase of shares at cost in connection with any termination of service to Vista Vacations; (8) Issue, deliver or sell or authorize or propose the issuance, delivery or sale of, or purchase or propose the purchase of, any shares of its Capital Stock or securities convertible into, or subscriptions, rights, warrants or options to acquire, or other agreements or commitments of any character obligating it to issue any such shares or other convertible securities; (9) Cause or permit any amendments to its articles of incorporation or bylaws; (10) Acquire or agree to acquire by merging or consolidating with, or by purchasing a substantial portion of the assets of, or by any other manner, any business or any corporation, partnership, association or other business organization or division thereof, or otherwise acquire or agree to acquire any assets which are material, individually or in the aggregate, to the business of Vista Vacations; 68 (11) Sell, lease, license or otherwise dispose of any of its properties or assets which are material, individually or in the aggregate, to the business of Vista Vacations, except in the ordinary course of business; (12) Incur any indebtedness for borrowed money or guarantee any such indebtedness or issue or sell any debt securities of Vista Vacations or guarantee any debt securities of others; (13) Adopt or amend any employee benefit plan, or enter into any employment contract, pay any special bonus or special remuneration to any director or employee, or increase the salaries or wage rates of its employees; (14) Revalue any of its assets, including without limitation writing down the value of inventory or writing off notes or accounts receivable other than in the ordinary course of business; (15) Pay, discharge or satisfy in an amount in excess of $1,000 in any one case any claim, liability or obligation (absolute, accrued, asserted or unasserted, contingent or otherwise), other than the payment, discharge or satisfaction in the ordinary course of business of liabilities reflected or reserved against in Vista Vacations' Financial Statements (or the notes thereto); (16) Make or change any material election in respect of Taxes, adopt or change any accounting method in respect of Taxes, file any material Return or any amendment to a material Return, enter into any closing agreement, settle any claim or assessment in respect of Taxes, or consent to any extension or waiver of the limitation period applicable to any claim or assessment in respect of Taxes; or (17) Take, or agree in writing or otherwise to take, any of the actions described in Sections 4.1(C)(1) through 4.1(C)(16) above, or any action which would make any of the representations or warranties or covenants of Vista Vacations contained in this Agreement materially untrue or incorrect. 4.2 No Solicitation. (A) Prior to the Closing Vista Vacations will not (nor will Vista Vacations permit any of Vista Vacations' officers, directors, stockholders affiliated with any officer or director or Vista Vacations' agents, representatives or affiliates to) directly or indirectly, take any of the following actions with any party other than AmeriNet and its designees: (1) Solicit, encourage, initiate or participate in any negotiations or discussions with respect to, any offer or proposal to acquire all or substantially all of Vista Vacations' business and properties or Capital Stock whether by merger, purchase of assets, tender offer or otherwise; (2) Except as required by law and except for disclosures made to financial institutions and others in the ordinary course of business, disclose any information not customarily disclosed to any person other 69 than its attorneys or financial advisors concerning Vista Vacations' business and properties or afford to any person or entity access to its properties, books or records; or (3) Assist or cooperate with any person to make any proposal to purchase all or any part of Vista Vacations' Capital Stock or of its assets (other in the ordinary course of business). (B) In the event Vista Vacations shall receive any offer or proposal, directly or indirectly, of the type referred to in Section 4.2(A)(1) and (3) above, or any request for disclosure or access pursuant to clause 4.2(A)(2) above, Vista Vacations shall immediately inform AmeriNet as to any such offer or proposal and will cooperate with AmeriNet by furnishing any information it may reasonably request. 4.3 Conduct of Business of AmeriNet. During the period from the date of this Agreement and continuing until the earlier of the termination of this Agreement or the Closing, as the case may be, AmeriNet agrees (except to the extent that Vista Vacations shall otherwise consent in writing), that AmeriNet shall promptly notify Vista Vacations of any event or occurrence or emergency which is not in the ordinary course of business of AmeriNet and which is material and adverse to the business of AmeriNet and its subsidiaries taken as a whole. Article V Additional Agreements 5.1 Report on Form 8-K. (A) Within fifteen days following the Closing Date, AmeriNet, with the assistance and cooperation of Vista Vacations' current officers, will prepare and file with the Commission a current report on Commission Form 8-K (the "8-K Report") disclosing the Reorganization and containing information concerning Vista Vacations required by Commission Regulation S-B, except for audited financial statements that may be filed within 75 days after the Closing Date. (B) Within sixty days following the Closing Date Vista Vacations, at its own expense, shall provide AmeriNet with audited financial statements prepared in accordance with GAAP and meeting all requirements of the Commission for reports of material acquisitions under the Securities Act and the Exchange Act, including the requirements imposed by Commission Regulation S-B. (B) AmeriNet and Vista Vacations will use their best efforts to secure the Commission's acceptance of Vista Vacations' audited financial statements, as complying with the requirements of Regulation S-B, and Vista Vacations will make any modification's to its financial statements suggested by the Commission; and, if required, will use best efforts to secure required extensions from the Commission of time in which to provide materials complying with Commission Regulation S-B. 5.2 No Meeting of Vista Vacations' Stockholders. Because each Vista Vacations Stockholders has independently made the decision to exchange all of his, her or its Vista Vacations Securities for shares of AmeriNet's Common Stock, no formal stockholder action by Vista Vacations shall be required in conjunction with authorization of this Agreement or the Closing; however, each Vista Vacations Stockholder must have become a party to this Agreement either by direct execution hereof or by having granted a duly executed and notarized power of attorney to Ms. Nadler, as contemplated by this Agreement, permitting her to execute this Agreement on his, her or its behalf. 70 5.3 Access to Information. (A) Vista Vacations shall afford AmeriNet and its accountants, counsel and other representatives, reasonable access during normal business hours during the period prior to the Closing to all: (1) Of its properties, books, contracts, commitments and records; and (2) Other information concerning the business, properties and personnel of Vista Vacations as AmeriNet may reasonably request. (B) Vista Vacations agrees to provide to AmeriNet and its accountants, counsel and other representatives copies of internal financial statements promptly upon request. (C) No information or knowledge obtained in any investigation pursuant to this Section 5.3 shall affect or be deemed to modify any representation or warranty contained herein or the conditions to the obligations of the Parties to consummate the Reorganization. 5.4 Confidentiality. (A) From the date hereof to and including the Closing Date, the Parties shall maintain, and cause their directors, employees, agents and advisors to maintain, in confidence and not disclose or use for any purpose, except the evaluation of the transactions contemplated hereby and the accuracy of the respective representations and warranties of the Parties contained herein, information concerning the other Parties and obtained directly or indirectly from such Parties, or their directors, employees, agents or advisors, or as was in the possession of such Party prior to obtaining such information from such other Party as to which the fact of prior possession such possessing Party shall have the burden of proof and such information as is or becomes: (1) Available to the non-disclosing Party from third parties not subject to an undertaking of confidentiality or secrecy; (2) Generally available to the public other than as a result of a breach by the non-disclosing party hereunder; or (3) Required to be disclosed under applicable law. (B) In the event that the transactions contemplated hereby shall not be consummated, all such information which shall be in writing shall be returned to the party furnishing the same, including to the extent reasonably practicable, copies or reproductions thereof which may have been prepared. 5.5 Expenses. Whether or not the Reorganization is consummated, all expenses incurred in connection with the Reorganization and this Agreement shall be the obligation of the Party incurring such expenses. 5.6 Public Disclosure. Unless otherwise required by law, prior to the Closing Date no disclosure (whether or not in response to an inquiry) of the subject matter of this Agreement shall be made by any Party unless approved by AmeriNet and Vista Vacations prior to release, provided that such approval shall not be unnecessarily withheld, subject, in the case of AmeriNet, to AmeriNet's obligation to comply with applicable securities laws. 71 5.7 Consents. AmeriNet and Vista Vacations shall promptly apply for or otherwise seek, and use their best efforts to obtain, all consents and approvals required to be obtained by them for the consummation of the Reorganization, and Vista Vacations shall use its best efforts to obtain all consents, waivers and approvals under any of Vista Vacations' agreements, contracts, licenses or leases in order to preserve the benefits thereunder for Vista Vacations, and otherwise in connection with the Reorganization; all of such consents and approvals being set forth in Schedule 5.7. 5.8 Affiliate Agreements. (A) Schedule 5.8 sets forth those persons who are, in Vista Vacations' reasonable judgment, Affiliates" of Vista Vacations. (B) Vista Vacations shall provide AmeriNet such information and documents as AmeriNet shall reasonably request for purposes of reviewing such list. (C) Vista Vacations shall use its best efforts to deliver or cause to be delivered to AmeriNet, concurrently with the execution of this Agreement (and in any case prior to the Closing Date) from each of the Affiliates of Vista Vacations, an executed Affiliate Agreement in the form annexed hereto as Exhibit 5.8. (D) AmeriNet shall be entitled to place appropriate legends on the certificates evidencing any AmeriNet Common Stock to be received by such Affiliates pursuant to the terms of this Agreement, and to issue appropriate stop transfer instructions to the transfer agent for AmeriNet Common Stock, consistent with the terms of such Affiliate Agreements, in addition to the legends and stop transfer instructions placed and issues on all certificates to be issued to Vista Vacations' stockholders in conjunction with the Reorganization based on the Parties reliance on Section 4(2) of the Securities Act 5.9 Legal Requirements. AmeriNet and Vista Vacations will take all reasonable actions necessary to comply promptly with all legal requirements which may be imposed on them with respect to the consummation of the transactions contemplated by this Agreement and will promptly cooperate with and furnish information to any Party in connection with any such requirements imposed upon such other Party in connection with the consummation of the transactions contemplated by this Agreement and will take all reasonable actions necessary to obtain (and will cooperate with the other Parties in obtaining) any consent, approval, order or authorization of, or any registration, declaration or filing with, any Governmental Entity or other person, required to be obtained or made in connection with the taking of any action contemplated by this Agreement. 5.10 Blue Sky Laws. Legal counsel to Vista Vacations has taken such steps as may be necessary to comply with the securities and blue sky laws of all jurisdictions which are applicable to the issuance of AmeriNet Common Stock to the Former Vista Vacations Stockholders. 5.11 Best Efforts: Additional Documents and Further Assurances. (A) Each of the Parties to this Agreement shall use its best efforts to effectuate the transactions contemplated hereby and to fulfill and cause to be fulfilled the conditions to the Reorganization and the condition subsequent under this Agreement. 72 (B) Each Party, at the request of another Party, shall execute and deliver such other instruments and do and perform such other acts and things as may be reasonably necessary or desirable for effecting completely the consummation of this Agreement and the transactions contemplated hereby. 5.12 Employment Agreements. (A) The individuals set forth on Schedule 5.12 will as of the Closing Date be parties to the employment agreements included in composite Exhibit 5.12 hereto (the "Employment Agreements"), which shall supersede all prior employment agreements or arrangements with any such persons, and which will conform to the forms of employment agreements established by AmeriNet for use by all material employees of AmeriNet and its subsidiaries. (B) AmeriNet shall, immediately following the Closing, reserve 931,000 shares of its Common Stock for future issuance through incentive stock options (as defined in Section 422 of the Code) granted in certain of the Employment Agreements, provided, however, that rights to such shares shall vest on an annual basis, subject to attainment of the following net, pre-tax profit projections determined in accordance with GAAP: (1) If Vista Vacations earns net, pre tax profits, determined in accordance with GAAP, of at least $400,000 during the period starting on July 1, 2000 and ending on June 30, 2001, then the first 163,333 shares of AmeriNet's Common stock reserved for issuance in the event of exercise of the subject incentive stock options shall vest; (2) If Vista Vacations earns net, pre tax profits, determined in accordance with GAAP, of at least $1,200,000 during the period starting on July 1, 2000 and ending on June 30, 2002, then all rights to 457,333 (including the 163,333 shares vested, if any, on June 30, 2001) of the shares of AmeriNet's Common stock reserved for issuance in the event of exercise of the subject incentive stock options shall vest; and (3) If Vista Vacations earns net, pre tax profits, determined in accordance with GAAP, of at least $2,800,000 during the period starting on July 1, 2000 and ending on June 30, 2003, then all rights to all of the shares (including the shares vested, if any, on June 30, 2001 and June 30, 2002) of AmeriNet's Common stock reserved for issuance in the event of exercise of the subject incentive stock options shall vest. (4) All rights to the incentive stock options in the subject employment agreements that have not vested as of July 1, 2003 shall expire on such date, and no further rights of any kind thereto or to the underlying shares of AmeriNet common stock reserved for such purpose shall exist thereafter, the reservation therefor terminating on such date. 5.13 Investment by AmeriNet in Vista Vacations. Subject to Vista Vacations' substantial compliance with its material obligations under this Agreement, including those involving provision of audited financial statements for its operations for the time period and in the form required by Commission Regulation S-B for purposes of the Reorganization, AmeriNet hereby covenants and agrees to provide the following funds, to be expended solely for the purposes set forth in Schedule 5.13, to Vista Vacations: (A) As provided in Section 1.2(C), the sum of $125,000; (B) Within 60 days after the audited financial statements for Vista Vacations required pursuant to Commission Regulation S-B have been provided to AmeriNet, filed with the Commission and not found deficient by the Commission (the "Funding Trigger Date"), the sum of $125,000; 73 (C) Within 120 days after the Funding Trigger Date, the sum of $100,000; (D) Within 180 days after the Funding Trigger Date, the sum of $100,000; (E) Within 240 days after the Funding Trigger Date, the sum of $100,000; and (F) Within 300 days after the Funding Trigger Date, the sum of $100,000. 5.14 Vista Vacations' Board of Directors. (A) Subject to (i) compliance with all of obligations under this Agreement by the Former Vista Vacations Stockholders and Vista Vacations, including, without limitation, those involving provision of audited financial statements for Vista Vacations' operations for the time period and in the form required by Commission Regulation S-B for purposes of the Reorganization, (ii) compliance by the members of the board of directors of Vista Vacations with their fiduciary obligations to AmeriNet as Vista Vacations' Stockholders and with applicable laws and (iii) the attainment by Vista Vacations, on a quarterly basis of at least net pre tax profits during the fiscal year starting on July 1, 2000 and ending on June 30, 2001 of $70,000; net pre tax profits during the fiscal year starting on July 1, 2001 and ending on June 30, 2002 of $185,000; and, net pre tax profits during the fiscal year starting on July 1, 2002 and ending on June 30, 2003 of $312,000, AmeriNet hereby covenants and agrees that it will maintain membership on the board of directors of Vista Vacations in the following ratio: two thirds of the members will be nominees of Ms. Teri Nadler and one third will be nominees of AmeriNet, provided, however, that: (1) A quorum for meetings of the board of directors of Vista Vacations and action by such board of directors will require the participation of AmeriNet's nominees; provided, however, that, if a meeting deemed to involve material issues is adjourned due to the inability to attain a quorum as a result of the absence of the AmeriNet nominees, then, upon receipt of written notice from Vista Vacations' board of directors, AmeriNet must assure that its nominees attend the reconvened meeting, which will be held by telephone conference at a time during a business day designated by AmeriNet within three days after AmeriNet is provided with the written notice of the adjourned meeting; (2) The board of directors of Vista Vacations will not, without AmeriNet's prior written consent specifying the action authorized, be authorized to engage in any material change in Vista Vacations' business not contemplated by the Projections, to sell a material portion of Vista Vacations' assets outside the normal course of business, to issue any securities, to authorize the borrowing of any funds or pledge of any assets, for so long as Vista Vacations remains a subsidiary of AmeriNet; and (3) (a) The initial determination by AmeriNet as to the attainment of the minimum acceptable net pre-tax profits shall not be made until a complete fiscal quarter has passed since the Closing Date; (b) After the first year following the Closing Date, the minimum acceptable net pre-tax profits may be modified periodically by unanimous action (including the affirmative votes of all AmeriNet nominees) of the board of directors of Vista Vacations; provided that after the third year, unless new minimum acceptable net pre-tax profits are agreed to, the net, pre tax profit portion of the minimum acceptable net pre-tax profits will increase annually to 150% of the net, pre-tax profit projected for the immediately preceding year. (c) In the event that the right of Ms. Nadler to designate two thirds of the membership on the board of directors of Vista Vacations is suspended due to failure to meet the minimum acceptable net pre-tax profits, such right shall be reinstated at such time as the deficiency in meeting the minimum acceptable net pre-tax profits, on a cumulative basis, has been cured. 74 5.15 Additional Vista Vacations' Covenants (A) (1) Vista Vacations shall have signed a multi year Internet site design and hosting agreement with Wriwebs.com, Inc., a Florida corporation and wholly owned subsidiary of AmeriNet ("WRI" and the "WRI Web Design & Hosting Agreement"), pursuant to which Vista Vacations shall pay WRI a monthly fee of at least $10,000 throughout the term of the WRI Web Design & Hosting Agreement, in form and substance acceptable to AmeriNet and to AmeriNet's strategic planning consultant, the Yankee Companies, Inc., a Florida corporation ("Yankees") and shall faithfully comply with all of its material obligations thereunder throughout the term thereof. (2) In the event that Vista Vacations fails to make payments to WRI called for by the WRI Web Design & Hosting Agreement, AmeriNet may, at its sole option, tender the required payments to WRI on Vista Vacations' behalf, and deduct such sums, together with interest thereon at the rate of 8% per annum, from any funds which it has agreed to provide to Vista Vacations under this Agreement, all such payments to be deemed advances to Vista Vacations under this Agreement. (B) Ms. Nellie Tippery, a creditor of Vista Vacations, will, at or prior to the Closing irrevocably convert all of Vista Vacations' liabilities to her or her affiliates, including, without limitation, loans aggregating at least $180,000, into the right to receive 66,667 shares of AmeriNet Common Stock. (C) All accrued obligations by Vista Vacations to its employees, consultants and independent contractors involving payments due for services rendered, whether in the form of salaries, bonuses, benefits, benefit plans, or other fees or consideration of any kind, will be fully and irrevocably discharged as of the Closing date. Article VI Conditions to the Reorganization 6.1 Conditions to Obligations of Each Party to Effect the Reorganization. The respective obligations of each party to this Agreement to effect the Reorganization shall be subject to the satisfaction at or prior to the Closing Date of the following conditions: (A) No Injunctions or Restraints: Illegality. No temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the Reorganization shall be in effect, nor shall any proceeding brought by an administrative agency or commission or other governmental authority or instrumentality, domestic or foreign, seeking any of the foregoing be pending; nor shall there be any action taken, or any statute, rule, regulation or order enacted, entered, enforced or deemed applicable to the Reorganization, which makes the consummation of the Reorganization illegal. (B) Vista Vacations Information Required by Commission Regulation S-B The provision by Vista Vacations on a timely basis in full compliance with the requirements of Commission Regulation S-B of all information concerning its past operations, including audited financial statements, shall constitute a condition subsequent to the obligations of AmeriNet under this Agreement and in the event of the failure of such condition subsequent, then, at AmeriNet's sole option: (1) The Reorganization may be rescinded, and all funds advanced by AmeriNet to Vista Vacations shall be repaid, with interest at the annual rate of 8%, to AmeriNet within 30 days after such rescission; or 75 (2) The Escrow Shares shall be deemed defaulted to AmeriNet and the Reorganization shall be restructured in a manner complying with AmeriNet's reporting and other obligations under the Exchange Act, including the sale by AmeriNet of Vista Vacations. 6.2 Additional Conditions to Obligations of Vista Vacations. The obligations of Vista Vacations to consummate and effect this Agreement and the transactions contemplated hereby shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions, any of which may be waived, in writing, exclusively by Vista Vacations: (A) Representations, Warranties and Covenants. The representations and warranties of AmeriNet in this Agreement shall be true and correct in all material respects on and as of the Closing Date as though such representations and warranties were made on and as of such time and AmeriNet shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it as of the Closing Date. (B) Certificate of AmeriNet. Vista Vacations shall have been provided with a certificate executed on behalf of AmeriNet by its President and its Chief Financial Officer, Treasurer or officer exercising such functions to the effect that, as of the Closing Date: (1) All representations and warranties made by AmeriNet under this Agreement are true and complete in all material respects; and (2) All covenants, obligations and conditions of this Agreement to be performed by AmeriNet on or before such date have been so performed in all material respects. (C) Satisfactory Form of Legal Matters. The form, scope and substance of all legal and accounting matters contemplated hereby and all documents and other papers delivered hereunder prior to and on the Closing Date shall be reasonably acceptable to counsel to Vista Vacations. (D) Legal Opinion. Vista Vacations shall have received a legal opinion from legal counsel to AmeriNet, substantially in the form of Exhibit 6.2(D) hereto. (E) No Material Adverse Changes. There shall not have occurred any event, fact or condition that has had or reasonably would be expected to have a material adverse effect on AmeriNet. (F) Tax Opinion. (1) Vista Vacations shall have received a written opinion from AmeriNet's Counsel to the effect that the Reorganization will constitute a reorganization within the meaning of Section 368(a)(1)(B) of the Code. 76 (2) In rendering such opinion counsel may rely on (and to the extent reasonably required, the Parties and Vista Vacations' stockholders shall make) reasonable representations related thereto. 6.3 Additional Conditions to the Obligations of AmeriNet. The obligations of AmeriNet to consummate and effect this Agreement and the transactions contemplated hereby shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions, any of which may be waived, in writing, exclusively by AmeriNet: (A) Representations, Warranties and Covenants. (1) The representations and warranties of Vista Vacations in this Agreement shall be true and correct in all material respects on and as of the Closing Date as though such representations and warranties were made on and as of such time and Vista Vacations shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it as of the Closing Date. (2) AmeriNet shall have no remedy against the Escrow Fund in respect of an untrue representation or warranty if prior to the Closing Date Vista Vacations delivers to AmeriNet in accordance with Section 9.2 a written statement: (a) Advising AmeriNet that an event (a "Post-Execution Event") has occurred (specifying in reasonable detail such event) subsequent to the date of execution of this Agreement that would render any representation or warranty made by Vista Vacations in this Agreement untrue if such representation or warranty were made as of the Closing; and (b) Confirming that such representation or warranty was true as of the date of execution of this Agreement, and (c) AmeriNet subsequently waives the failure to satisfy the condition set forth in Section 6.3(A) with respect to such representation or warranty. (B) Certificate of Vista Vacations. AmeriNet shall have been provided with a certificate executed on behalf of Vista Vacations by its President and Chief Financial Officer to the effect that, as of the Closing Date, all: (1) Representations and warranties made by Vista Vacations under this Agreement are true and complete in all material respects; and (2) Covenants, obligations and conditions of this Agreement to be performed by Vista Vacations on or before such date have been so performed in all material respects. (C) Third Party Consents. Any and all consents, waivers and approvals required from third Parties relating to the contracts and agreements of Vista Vacations so that the Reorganization and other transactions contemplated hereby do not adversely affect the rights of, and benefits to, Vista Vacations thereunder shall have been obtained. 77 (D) Satisfactory Form of Legal and Accounting Matters. The form, scope and substance of all legal and accounting matters contemplated hereby and all documents and other papers delivered hereunder prior to and on the Closing Date shall be reasonably acceptable to AmeriNet's counsel (provided that the condition subsequent concerning the compliance of information provided by Vista Vacations with the requirements of Commission Regulation S-B, on a timely basis, shall survive the Reorganization). (E) Legal Opinion. AmeriNet shall have received a legal opinion from legal counsel to Vista Vacations, in substantially the form of Exhibit 6.3(E) hereto. (F) No Material Adverse Changes. There shall not have occurred any event, fact or condition which has had or reasonably would be expected to have a material adverse effect on Vista Vacations. (G) Affiliate Agreements. AmeriNet shall have received from each of the Affiliates of Vista Vacations an executed Affiliate Agreement which shall be in full force and effect. (H) Dissenters. The number of shares of Vista Vacations' Common Stock held by holders who either (i) have exercised appraisal rights or (ii) retain the ability to exercise such appraisal rights shall not exceed nineteen percent of Vista Vacations' outstanding Common Stock, by class and series, in the aggregate. (I) Employment Agreements. The Employment Agreements shall have been duly executed and delivered and shall be in full force and effect. (J) Minimum Net Worth. Vista Vacations shall on the Closing Date have stockholders equity of at least $180,000, not more than $20,000 in net current payables, not more than $50,000 in net long term payables, at least $640,000 in annualized gross sales and not less than $7,000 in annualized, net pre tax profits, all determined in conformity with GAAP. (K) Tax Opinion. (1) AmeriNet shall have received a written opinion of Vista Vacations Counsel, to the effect that the Reorganization will constitute a reorganization within the meaning of Section 368(a)(1)(B) of the Code. (2) In rendering such opinion, counsel may rely on (and to the extent reasonably required, the Parties and Vista Vacations' stockholders shall make) reasonable representations related thereto. (L) Confidentiality Agreements. Each current employee, consultant or other person having access to Vista Vacations' confidential information shall have executed a confidentiality agreement in the form annexed hereto as Exhibit 6.3(L). (M) There shall be no stockholders of Vista Vacations who are not Accredited Investors. 78 (N) Vista Vacations shall have signed the WRI Web Design & Hosting Agreement, a fully executed copy of which shall be delivered by Vista Vacations to AmeriNet at the Closing. (O) Ms. Nellie Tippery, a creditor of Vista Vacations, shall have irrevocably converted all of Vista Vacations' liabilities to her or her affiliates, including, without limitation, loans aggregating at least $180,000, into the right to receive 66,667 shares of AmeriNet Common Stock. (P) All obligations by Vista Vacations to its employees, consultants and independent contractors involving payments due for services rendered have been fully discharged, as of the Closing date. Article VII Survival of Condition Subsequent, Representations and Warranties, Covenants & Escrow 7.1 Survival of Condition Subsequent, Representations and Warranties and Covenant. (A) All conditions subsequent to the Reorganization and covenants to be performed prior to the Closing, and all representations and warranties in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Reorganization and continue until the date the audit of AmeriNet's financial statements for the year ending June 30, 2000 has been completed and AmeriNet has received a signed opinion from its independent auditors certifying such financial statements (the "2000 Audit Date"). (B) All covenants to be performed after the Closing shall continue indefinitely. 7.2 Escrow Arrangements. (A) Escrow Fund. (1) As soon as practicable after the Closing Date, a portion of the shares of AmeriNet's Common Stock to be issued in the Reorganization equal to the Escrow Number plus any additional New Shares (as defined below) as may be issued in respect thereof after the Closing Date) (collectively, the "Escrow Shares"), without any act of any stockholder, will be registered in the name of Yankees, AmeriNet's strategic planning consultant, or such other person or legal entity as may otherwise be selected by AmeriNet prior to the Closing, as escrow agent (the "Escrow Agent"), and will be deposited with a financial institution acceptable to AmeriNet and the Agent [as defined in Section 7.2(H) below)], such deposit to constitute an escrow fund (the "Escrow Fund") to be governed by the terms set forth herein and at AmeriNet's sole cost and expense. (2) (a) The portion of AmeriNet Common Stock in the Escrow Fund contributed on behalf of each stockholder of Vista Vacations is listed opposite such stockholders' name on Exhibit 7.2(A). (b) The Escrow Fund shall be available to compensate AmeriNet and its affiliates for any claim, loss, expense, liability or other damage, including reasonable attorneys' fees that AmeriNet or any of its affiliates has incurred or reasonably anticipates incurring by reason of the breach by Vista Vacations of any representation, warranty, covenant or agreement of Vista Vacations contained herein, ("Losses"), but only to the extent that such Losses exceed $20,000. (c) AmeriNet and Vista Vacations each acknowledge that such Losses, if any, would relate to unresolved contingencies existing at the Time of Closing, which if resolved at the Closing would have led to a reduction in the total number of shares of AmeriNet Common Stock AmeriNet would have agreed to issue in connection with the Reorganization. 79 (3) Nothing herein shall limit the liability of Vista Vacations for any breach of any representation, warranty or covenant if the Reorganization does not close. Resort to the Escrow Fund shall be the exclusive contractual remedy of AmeriNet and its affiliates for any such breaches and misrepresentations if the Reorganization does close; provided, however, that nothing herein shall limit any noncontractual remedy for fraud. (B) Escrow Period; Distribution upon Termination of Escrow Periods. (1) Subject to the following requirements, the Escrow Fund shall remain in existence until the 2000 Audit Date (the "Escrow Period"). (2) Upon the expiration of such Escrow Period, the Escrow Fund shall terminate with respect to all Escrow Shares; provided, however, that the number of Escrow Shares, which, in the reasonable judgment of AmeriNet, subject to the objection of the Agent and the subsequent arbitration of the matter in the manner provided in Section 7.2(G) hereof, are necessary to satisfy any unsatisfied claims specified in any Officer's Certificate delivered to the Escrow Agent prior to the expiration of such Escrow Period with respect to facts and circumstances existing on or prior to the 2000 Audit Date shall remain in the Escrow Fund (and the Escrow Fund shall remain in existence) until such claims have been resolved. (3) As soon as all such claims have been resolved, the Escrow Agent shall deliver to the Former Vista Vacations Stockholders all AmeriNet Common Stock and other property remaining in the Escrow Fund and not required to satisfy such claims. (4) Deliveries of AmeriNet Common Stock and other property to the Former Vista Vacations Stockholders pursuant to this Section 7.2(B) shall be made in proportion to their respective original contributions to the Escrow Fund. (C) Protection of Escrow Fund. The Escrow Agent shall hold and safeguard the Escrow Fund during the Escrow Period, shall treat such fund as a trust fund in accordance with the terms of this Agreement and not as the property of AmeriNet and shall hold and dispose of the Escrow Fund only in accordance with the terms hereof. (D) Distributions; Voting. (1) (a) Any shares of AmeriNet Common Stock or other equity securities issued or distributed by AmeriNet, including shares issued upon a stock split or any stock dividend or distribution ("New Shares") in respect of AmeriNet Common Stock in the Escrow Fund which have not been released from the Escrow Fund shall be added to the Escrow Fund and become a part thereof. (b) New Shares issued in respect of AmeriNet Common Stock which have been released from the Escrow Fund shall not be added to the Escrow Fund, but shall be distributed to the holders thereof. (c) When and if cash dividends on AmeriNet Common Stock in the Escrow Fund shall be declared and paid, they shall not be added to the Escrow Fund but shall be paid to those on whose behalf such AmeriNet Common Stock is held who, prior to the Reorganization, held Vista Vacations' Common Stock. 80 (2) Each stockholder of Vista Vacations shall have voting rights with respect to the shares of AmeriNet Common Stock contributed to the Escrow Fund on behalf of such stockholder (and on any voting securities added to the Escrow Fund in respect of such shares of AmeriNet Common Stock) so long as such shares of AmeriNet Common Stock or other voting securities are held in the Escrow Fund. (E) Claims Upon Escrow Fund. Subject to the objection procedure established in Section 7.2(F) below, the Escrow Agent shall deliver to AmeriNet out of the Escrow Fund, as promptly as practicable, shares of AmeriNet Common Stock or other assets held in the Escrow Fund in an amount equal to Losses by AmeriNet, provided that (1) A written claim of loss has been provided by AmeriNet to the Escrow Agent at any time on or before the last day of the Escrow Period in the form of a certificate signed by any officer of AmeriNet (an "Officer's Certificate"), with a copy to Vista Vacations: (a) Stating that AmeriNet has paid or properly accrued or reasonably anticipates that it will have to pay or accrue Losses, and (b) Specifying in reasonable detail the individual items of Losses included in the amount so stated, the date each such item was paid or properly accrued, or the basis for such anticipated liability, and the nature of the misrepresentation, breach of warranty or claim to which such item is related, the Escrow Agent shall, subject to the provisions of Section 7.2(F) hereof. (2) For the purposes of determining the number of shares of AmeriNet Common Stock to be delivered to AmeriNet out of the Escrow Fund pursuant to Section 7.2(E)(1), the shares of AmeriNet Common Stock shall be valued at the average closing transaction price therefor during the preceding ten trading days, as reported on the highest rated securities market or securities exchange on which AmeriNet's Common Stock is actually traded. (F) Objections to Claims. (1) At the time of delivery of any Officer's Certificate to the Escrow Agent, a duplicate copy of such certificate shall be delivered to the Agent [as defined in Section 7.2(H)] and for a period of thirty (30) days after such delivery, the Escrow Agent shall make no delivery to AmeriNet of shares of AmeriNet Common Stock, pursuant to Section 7.2(E) hereof unless the Escrow Agent shall have received written authorization from the Agent to make such delivery. (2) After the expiration of such thirty (30) day period, the Escrow Agent shall make delivery of the shares of AmeriNet Common Stock or other property in the Escrow Fund in accordance with Section 7.2(E) hereof, provided that no such payment or delivery may be made if the Agent shall object in a written statement to the claim made in the Officer's Certificate, and such statement shall have been delivered to the Escrow Agent prior to the expiration of such thirty (30) day period. (G) Resolution of Conflicts; Arbitration. (1) (a) In case the Agent shall so object in writing to any claim or claims made in any Officer's Certificate, the Agent and AmeriNet shall attempt in good faith to agree upon the rights of the respective Parties with respect to each of such claims. (b) If the Agent and AmeriNet should so agree, a memorandum setting forth such agreement shall be prepared and signed by both Parties and shall be furnished to the Escrow Agent. 81 (c) The Escrow Agent shall be entitled to rely on any such memorandum and distribute shares of AmeriNet Common Stock or other property from the Escrow Fund in accordance with the terms thereof. (2) (a) If no such agreement can be reached after good faith negotiation, either AmeriNet or the Agent may demand arbitration of the matter unless the amount of the damage or loss is at issue in pending litigation with a third party, in which event arbitration shall not be commenced until such amount is ascertained or both Parties agree to arbitration; and in either such event the matter shall be settled by arbitration conducted by three arbitrators. (b) AmeriNet and the Agent shall each select one arbitrator, and the two arbitrators so selected shall select a third arbitrator. (c) The arbitrators shall set a limited time period and establish procedures designed to reduce the cost and time for discovery while allowing the Parties an opportunity, adequate in the sole judgment of the arbitrators, to discover relevant information from the opposing Parties about the subject matter of the dispute. (d) The arbitrators shall rule upon motions to compel or limit discovery and shall have the authority to impose sanctions, including attorneys fees and costs, to the extent as a court of competent law or equity, should the arbitrators determine that discovery was sought without substantial justification or that discovery was refused or objected to without substantial justification. (e) The decision of a majority of the three arbitrators as to the validity and amount of any claim in such Officer's Certificate shall be binding and conclusive upon the Parties to this Agreement, and notwithstanding anything in Section 7.2(F) hereof, the Escrow Agent shall be entitled to act in accordance with such decision and make or withhold payments out of the Escrow Fund in accordance therewith. (f) Such decision shall be written and shall be supported by written findings of fact and conclusions which shall set forth the award, judgment, decree or order awarded by the arbitrators. (3) (a) (i) Judgment upon any award rendered by the arbitrators may be entered in any court having jurisdiction. (ii) Any such arbitration shall be held in Broward County, Florida, under the rules then in effect of the American Arbitration Association. (b) For purposes of this Section 7.2(G), in any arbitration hereunder in which any claim or the amount thereof stated in the Officer's Certificate is at issue, AmeriNet shall be deemed to be the Non-Prevailing Party in the event that the arbitrators award AmeriNet less than the sum of 50% of the disputed amount plus any amounts not in dispute; otherwise, the Former Vista Vacations Stockholders as represented by the Agent shall be deemed to be the Non-Prevailing Party. (c) The Non-Prevailing Party to an arbitration shall pay its own expenses, the fees of each arbitrator, the administrative fee of the American Arbitration Association, and the expenses, including without limitation, reasonable attorneys' fees and costs, incurred by the other party to the arbitration. 82 (H) Agent of the Stockholders: Power of Attorney. (1) (a) (i) Teri Nadler is hereby irrevocably appointed as the agent and attorney-in-fact (the "Agent") for each stockholder of Vista Vacations, for and on behalf of the Former Vista Vacations Stockholders, to give and receive notices and communications, to authorize delivery to AmeriNet of AmeriNet Common Stock or other property from the Escrow Fund in satisfaction of claims by AmeriNet, to object to such deliveries, to agree to, negotiate, enter into settlements and compromises of, and demand arbitration and comply with orders of courts and awards of arbitrators with respect to such claims, and to take all actions necessary or appropriate in the judgment of Agent for the accomplishment of the foregoing. (ii) Such agency may be changed by the Former Vista Vacations Stockholders from time to time upon not less than thirty (30) days prior written notice to AmeriNet; provided that the Agent may not be removed unless holders of a two-thirds interest of the Common Stock comprising the Escrow Fund agree to such removal and to the identity of the substituted agent. (iii) No bond shall be required of the Agent, and the Agent shall not receive compensation for his or her services. (iv) Notices or communications to or from the Agent shall constitute notice to or from each of the Former Vista Vacations Stockholders. (b) The Agent shall be entitled to submit a claim and receive reimbursement from the Escrow Fund for all reasonable, documented out-of-pocket expenses incurred by the Agent as a result of his acting as the Agent; provided, however, that such right to reimbursement shall be subordinate to AmeriNet's claims on the Escrow, if any, and shall be paid only after all such claims have been satisfied. (c) Any such reimbursement shall be paid in shares of AmeriNet Common Stock out of the Escrow Fund. (d) For purposes of such reimbursement of the Agent only, such shares shall be valued at the average of the closing prices of AmeriNet Common Stock for the ten trading days ending on the day prior to the date the Escrow Agent pays such reimbursement amount. (2) (a) The Agent shall not be liable for any act done or omitted hereunder as Agent while acting in good faith and in the exercise of reasonable judgment. (b) The Former Vista Vacations Stockholders on whose behalf shares of AmeriNet Common Stock were contributed to the Escrow Fund shall severally indemnify the Agent and hold the Agent harmless against any loss, liability or expense incurred without negligence or bad faith on the part of the Agent and arising out of or in connection with the acceptance or administration of the Agent's duties hereunder, including the reasonable fees and expenses of any legal counsel retained by the Agent. (I) Actions of the Agent. (1) A decision, act, consent or instruction of the Agent shall constitute a decision of all the stockholders for whom shares of AmeriNet Common Stock otherwise issuable to them are deposited in the Escrow Fund and shall be final, binding and conclusive upon each of such stockholders, and the Escrow Agent 83 and AmeriNet may rely upon any such decision, act, consent or instruction of the Agent as being the decision, act, consent or instruction of every such stockholder. (2) The Escrow Agent and AmeriNet are hereby relieved from any liability to any person for any acts done by them in accordance with such decision, act, consent or instruction of the Agent. (J) Third-Party Claims. (1) In the event AmeriNet becomes aware of a third-party claim which AmeriNet believes may result in a demand against the Escrow Fund, AmeriNet shall notify the Agent of such claim, and the Agent and the Former Vista Vacations Stockholders shall be entitled, at their expense, to participate in any defense of such claim. (2) AmeriNet shall have the right in its sole discretion to settle any such claim; provided, however, that except with the consent of the Agent, no settlement of any such claim with third-party claimants shall alone be determinative of the validity of any claim against the Escrow Fund. (3) In the event that the Agent has consented to any such settlement, the Agent shall have no power or authority to object under any provision of this Article VII to the amount of any claim by AmeriNet against the Escrow Fund with respect to such settlement. (K) Escrow Agent's Duties. (1) (a) The Escrow Agent shall be obligated only for the performance of such duties as are specifically set forth herein, and as set forth in any additional written escrow instructions which the Escrow Agent may receive after the date of this Agreement which are signed by an officer of AmeriNet and the Agent, and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed to be genuine and to have been signed or presented by the proper party or Parties. (b) The Escrow Agent shall not be liable for any act done or omitted hereunder as Escrow Agent while acting in good faith and in the exercise of reasonable judgment, and any act done or omitted pursuant to the advice of counsel shall be conclusive evidence of such good faith. (2) The Escrow Agent is hereby expressly authorized to disregard any and all warnings given by any of the Parties or by any other person, excepting only orders or process of courts of law, and is hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case the Escrow Agent obeys or complies with any such order, judgment or decree of any court, the Escrow Agent shall not be liable to any of the Parties or to any other person by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction. (3) The Escrow Agent shall not be liable in any respect on account of the identity, authority or rights of the Parties executing or delivering or purporting to execute or deliver this Agreement or any documents or papers deposited or called for hereunder. (4) The Escrow Agent shall not be liable for the expiration of any rights under any statute of limitations with respect to this Agreement or any documents deposited with the Escrow Agent. (5) The Escrow Agent may resign at any time upon giving at least thirty (30) days written notice to AmeriNet and the Agent to this Agreement; provided, however, that no such resignation shall become effective until the appointment of a successor escrow agent which shall be accomplished as follows: 84 (a) AmeriNet and the Agent shall use their best efforts to mutually agree upon a successor agent within thirty (30) days after receiving such notice. (b) If the Parties fail to agree upon a successor escrow agent within such time, AmeriNet shall have the right to appoint a successor escrow agent authorized to do business in Florida. (c) The successor escrow agent selected in the preceding manner shall execute and deliver an instrument accepting such appointment and it shall thereupon be deemed the Escrow Agent hereunder and it shall without further acts be vested with all the estates, properties, rights, powers, and duties of the predecessor Escrow Agent as if originally named as Escrow Agent. (d) Thereafter, the predecessor Escrow Agent shall be discharged for any further duties and liabilities under this Agreement. Article VIII Termination, Amendment And Waiver 8.1 Termination. This Agreement may be terminated and the Reorganization abandoned at any time prior to the Closing Date, as follows: (A) By mutual consent of Vista Vacations and AmeriNet. (B) By AmeriNet if it is not in material breach of its obligations under this Agreement and there has been a material breach of any representation, warranty, covenant or agreement contained in this Agreement on the part of Vista Vacations and such breach has not been cured within fifteen days after notice to Vista Vacations. (C) By Vista Vacations if it is not in material breach of its respective obligations under this Agreement and there has been a material breach of any representation, warranty, covenant or agreement contained in this Agreement on the part of AmeriNet and such breach has not been cured within 15 days after notice to AmeriNet; (D) By any Party if: (1) The Reorganization has not occurred by April 15, 2000; (2) There shall be a final nonappealable order of a federal or state court in effect preventing consummation of the Reorganization; (3) There shall be any action taken, or any statute, rule, regulation or order enacted, promulgated or issued or deemed applicable to the Reorganization by any Governmental Entity which would make consummation of the Reorganization illegal; or (4) There shall be any action taken, or any statute, rule, regulation or order enacted, promulgated or issued or deemed applicable to the Reorganization by any Governmental Entity, which would: (a) Prohibit AmeriNet's or Vista Vacations' ownership or operation of all or a material portion of the business of Vista Vacations, or compel AmeriNet or Vista Vacations to dispose of or hold separate all or a material portion of the business or assets of Vista Vacations or AmeriNet as a result of the Reorganization; or 85 (b) Render AmeriNet or Vista Vacations unable to consummate the Reorganization, except for any waiting period provisions. (E) Where action is taken to terminate this Agreement pursuant to this Section 8.1, it shall be sufficient for such action to be authorized by the board of directors (as applicable) of the Party taking such action. 8.2 Effect of Termination. In the event of termination of this Agreement as provided in Section 8.1, this Agreement shall forthwith become void and there shall be no liability or obligation on the part of AmeriNet or Vista Vacations or their respective officers, directors or stockholders, except if such termination results from the breach by a Party of any of its representations, warranties, covenants or agreements set forth in this Agreement (it being understood that termination of this Agreement because of failure of Vista Vacations to satisfy the condition set forth in Section 6.3(A) as a result of the occurrence of a Post-Execution Event shall not be deemed to be a termination resulting from such a breach of representation or warranty.) 8.3 Amendment. (A) This Agreement may be amended by the Parties at any time before or after approval of matters presented in connection with the Reorganization by the stockholders of those Parties required by applicable law to so approve but, after any such stockholder approval, no amendment shall be made which by law requires the further approval of stockholders of a party without obtaining such further approval. (B) This Agreement may not be amended except by an instrument in writing signed on behalf of each of the Parties. 8.4 Extension & Waiver. (A) At any time prior to the Closing any Party may, to the extent legally allowed: (1) Extend the time for the performance of any of the obligations or other acts of the other Parties; (2) Waive any inaccuracies in the representations and warranties made to such party contained herein or in any document delivered pursuant hereto; or (3) Waive compliance with any of the agreements or conditions for the benefit of such Party contained herein. (B) Any agreement on the part of a Party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such Party. Article IX General Provisions 9.1 Interpretation. (A) When a reference is made in this Agreement to Schedules or Exhibits, such reference shall be to a Schedule or Exhibit to this Agreement unless otherwise indicated. (B) The words "include," "includes" and "including" when used herein shall be deemed in each case to be followed by the words "without limitation." 86 (C) The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. (D) The captions in this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope of this Agreement or the intent of any provisions hereof. (E) All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the Party or Parties, or their personal representatives, successors and assigns may require. (F) The Parties agree that they have been represented by counsel during the negotiation and execution of this Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document. 9.2 Notice. (A) All notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly given on the first business day after mailing by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows: (1) To AmeriNet: AmeriNet Group.com, Inc. Crystal Corporate Center; 2500 North Military Trail, Suite 225-C; Boca Raton, Florida 33431 Attention: Michael Harris Jordan, President Telephone (561) 998-3435, Fax (561) 998-4635; and, e-mail michael@amerinetgroup.com; with a copy to G. Richard Chamberlin, Esquire; General Counsel AmeriNet Group.com, Inc. 1941 Southeast 51st Terrace; Ocala, Florida 34471 Telephone (352) 694-6714, Fax (352) 694-9178; and, e-mail, grichard@atlantic.net. (2) To Vista Vacations: Vista Vacations International, Inc. 5653 Northwest 29th Street; Margate, Florida 33063 Attention: Teri Nadler, President Telephone (954) 975-0898; Fax (954) 975-8447; e-mail terie@flinet.com; with a fax copy to Scott B. Ugell 155 North Main Street; New City, New York 10956 Telephone (914) 639-7011; Fax (914) 639-7088; and, e-mail esqjudge@aol.com (3) To Agent: Ms. Teri Nadler 5653 Northwest 29th Street; Margate, Florida 33063 Telephone (954) 975-0898; Fax (954) 975-8447; e-mail terie@flinet.com; with a fax copy to 87 Scott B. Ugell 155 North Main Street; New City, New York 10956 Telephone (914) 639-7011; Fax (914) 639-7088; and, e-mail esqjudge@aol.com (4) To the Escrow Agent: The Yankee Companies, Inc. Crystal Corporate Center; 2500 North Military Trail, Suite 225; Boca Raton, Florida 33431 Attention: Leonard Miles Tucker, President Telephone (561) 998-2025, Fax (561) 998-3425; and, e-mail carrington@flinet.com or such other address or to such other person as any Party shall designate to the other for such purpose in the manner hereinafter set forth. (B) At the request of any Party, notice will also be provided by overnight delivery, facsimile transmission or e-mail, provided that a transmission receipt is retained. (C) (1) The Parties acknowledge that Yankees serves as a strategic consultant to AmeriNet and has acted as scrivener for the Parties in this transaction but that Yankees is neither a law firm nor an agency subject to any professional regulation or oversight. (2) Because of the inherent conflict of interests involved, Yankees has advised all of the Parties to retain independent legal and accounting counsel to review this Agreement and its exhibits and incorporated materials on their behalf. (3) The decision by any Party not to use the services of legal counsel in conjunction with this transaction shall be solely at their own risk, each Part acknowledging that applicable rules of the Florida Bar prevent AmeriNet's general counsel, who has reviewed, approved and caused modifications on behalf of AmeriNet, from representing anyone other than AmeriNet in this transaction. 9.3 Merger of All Prior Agreements Herein. (A) This instrument, together with the instruments referred to herein, contains all of the understandings and agreements of the Parties with respect to the subject matter discussed herein. (B) All prior agreements whether written or oral are merged herein and shall be of no force or effect. 9.4 Survival. The several representations, warranties and covenants of the Parties contained herein shall survive the execution hereof and the Reorganization and shall be effective regardless of any investigation that may have been made or may be made by or on behalf of any Party. 9.5 Severability. If any provision or any portion of any provision of this Agreement, other than one of the conditions precedent or subsequent, or the application of such provision or any portion thereof to any person or circumstance shall be held invalid or unenforceable, the remaining portions of such provision and the remaining provisions of this Agreement or the application of such provision or portion of such provision as is held invalid or unenforceable to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby. 88 9.6 Governing Law. This Agreement shall be construed in accordance with the substantive and procedural laws of the State of Delaware (other than those regulating Taxation and choice of law). 9.7 Indemnification. (A) Each Party hereby irrevocably agrees to indemnify and hold the other Parties harmless from any and all liabilities and damages (including legal or other expenses incidental thereto), contingent, current, or inchoate to which they or any one of them may become subject as a direct, indirect or incidental consequence of any action by the indemnifying Party or as a consequence of the failure of the indemnifying Party to act, whether pursuant to requirements of this Agreement or otherwise. (B) In the event it becomes necessary to enforce this indemnity through an attorney, with or without litigation, the successful Party shall be entitled to recover from the indemnifying Party, all costs incurred including reasonable attorneys' fees throughout any negotiations, trials or appeals, whether or not any suit is instituted. 9.8 Dispute Resolution. (A) In any action between the Parties to enforce any of the terms of this Agreement or any other matter arising from this Agreement any proceedings pertaining directly or indirectly to the rights or obligations of the Parties hereunder shall, to the extent legally permitted, be held in Broward County, Florida, and the prevailing Party shall be entitled to recover its costs and expenses, including reasonable attorneys' fees up to and including all negotiations, trials and appeals, whether or not any formal proceedings are initiated. (B) Except for the arbitration procedures outlined in paragraphs 7.2(G)(2) and 7.2(G)(3) which shall govern any arbitration proceeding described therein, in the event of any dispute arising under this Agreement, or the negotiation thereof or inducements to enter into the Agreement, the dispute shall, at the request of any Party, be exclusively resolved through the following procedures: (1) (a) First, the issue shall be submitted to mediation before a mediation service in Broward County, Florida to be selected by lot from six alternatives to be provided, three by AmeriNet and three by Vista Vacations. (b) The mediation efforts shall be concluded within ten business days after their initiation unless the Parties unanimously agree to an extended mediation period; (2) In the event that mediation does not lead to a resolution of the dispute then at the request of any Party, the Parties shall submit the dispute to binding arbitration before an arbitration service located in Broward County, Florida to be selected by lot, from six alternatives to be provided, three by AmeriNet and Three by Vista Vacations. (3) (a) Expenses of mediation shall be borne equally by the Parties, if successful. (b) Expenses of mediation, if unsuccessful and of arbitration shall be borne by the Party or Parties against whom the arbitration decision is rendered. (c) If the terms of the arbitral award do not establish a prevailing Party, then the expenses of unsuccessful mediation and arbitration shall be borne equally by the Parties involved. 89 9.9 Benefit of Agreement. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the Parties, their successors, assigns, personal representatives, estate, heirs and legatees but are not intended to confer upon any other person any rights or remedies hereunder. 9.10 Further Assurances. The Parties agree to do, execute, acknowledge and deliver or cause to be done, executed, acknowledged or delivered and to perform all such acts and deliver all such deeds, assignments, transfers, conveyances, powers of attorney, assurances, stock certificates and other documents, as may, from time to time, be required herein to effect the intent and purpose of this Agreement. 9.11 Counterparts. (A) This Agreement may be executed in any number of counterparts. (B) All executed counterparts shall constitute one Agreement notwithstanding that all signatories are not signatories to the original or the same counterpart. (C) Execution by exchange of facsimile transmission shall be deemed legally sufficient to bind the signatory; however, the Parties shall, for aesthetic purposes, prepare a fully executed original version of this Agreement which shall be the document filed with the Commission. 9.12 License. (A) This form of agreement is the property of Yankees and has been customized for this transaction with the consent of Yankees by G. Richard Chamberlin, Esquire, AmeriNet's acting general counsel. (B) The use of this form of agreement by the Parties is authorized hereby solely for purposes of this transaction. (C) The use of this form of agreement or of any derivation thereof without Yankees' prior written permission is prohibited. 90 In Witness Whereof, AmeriNet, Vista Vacations and the Escrow Agent (with respect to the Escrow Agent, as to matters set forth in Article VII only) have caused this Agreement to be executed by themselves or their duly authorized respective officers, all as of the last date set forth below: Signed, sealed and delivered In Our Presence: AmeriNet Group.com, Inc. _________________________________ (A Delaware corporation) _________________________________ By: /s/ Michael H. Jordan _____________________________ Michael H. Jordan, President (Corporate Seal) Attest: /s/ Vanessa H. Lindsey _____________________________ Vanessa H. Lindsey, Secretary Dated: March 12, 2000 State of Florida } County of Palm Beach } ss.: On this 12th day of March, 2000, before me, a notary public in and for the county and state aforesaid, personally appeared Michael H. Jordan and Vanessa H. Lindsey, to me known, and known to me to be the president and secretary of AmeriNet Group.com, Inc., the above-described corporation, and to me known to be the persons who executed the foregoing instrument, and acknowledged the execution thereof to be their free act and deed, and the free act and deed of AmeriNet Group.com, Inc., for the uses and purposes therein mentioned. In witness whereof, I have hereunto set my hand and affixed my notarial seal the day and year in this certificate first above written. My commission expires the 26th day of April, 2004. {Seal} /s/ Charles J. Scimeca -------------------------------- Notary Public 91 Vista Vacations International, Inc. _________________________________ (a Florida corporation) _________________________________ By: /s/ Teri E. Nadler _____________________________ Teri Nadler, President (Corporate Seal) Attest: /s/ Alicia Torrealba _____________________________ Alicia Torrealba, Secretary Dated: March 12, 2000 State of Florida } County of Palm Beach } ss.: On this 12th day of March, 2000, before me, a notary public in and for the county and state aforesaid, personally appeared Teri Nadler and Alicia Torrealba, to me known, and known to me to be the president and secretary of Vista Vacations International, Inc., the above-described corporation, and to me known to be the persons who executed the foregoing instrument, and acknowledged the execution thereof to be their free act and deed, and the free act and deed of Vista Vacations International, Inc., for the uses and purposes therein mentioned. In witness whereof, I have hereunto set my hand and affixed my notarial seal the day and year in this certificate first above written. My commission expires the 26th day of April, 2004. (Seal) /s/ Charles J. Scimeca ----------------------------- Notary Public The Yankee Companies, Inc. _________________________________ (a Florida corporation) _________________________________ By: /s/ Leonard M. Tucker ____________________________ Leonard Miles Tucker, President (Corporate Seal) Attest: /s/ Vanessa H. Lindsey ' ____________________________ Vanessa H. Lindsey, Secretary Dated: March 12, 2000 State of Florida } County of Palm Beach } ss.: On this 12th day of March, 2000, before me, a notary public in and for the county and state aforesaid, personally appeared Leonard Miles Tucker and Vanessa H. Lindsey, to me known, and known to me to be the president and secretary of the Yankee Companies, Inc., the above-described corporation, and to me known to be the persons who executed the foregoing instrument, and acknowledged the execution thereof to be their free act and deed, and the free act and deed of the Yankee Companies, Inc., as the Escrow Agent, the uses and purposes therein mentioned. In witness whereof, I have hereunto set my hand and affixed my notarial seal the day and year in this certificate first above written. My commission expires the 26th day of April, 2004. (Seal) /s/ Charles J. Scimeca ----------------------------- Notary Public 92 Schedule 1.4 Vista Vacations' Constituent Documents 1. Amended Articles of Incorporation. 2. Amended Bylaws. 3. Resolution by majority of Vista Stockholders adopting Amended Articles of Incorporation and Amended Bylaws. 4. Resolution by Vista Board of Directors adopting Amended Articles of Incorporation and Amended Bylaws. 5. Resolution of Board of Directors dated March 7, 2000 approving and adopting Reorganization Agreement and Affiliate Agreements with AmeriNet Group.com, Inc., with a direction that the Secretary cancel all stock certificated pursuant to instructions of each stockholder and the issuance of 100% of the common stock of Vista Vacations to AmeriNet Group.com, Inc. Items 1-2 can be found as Exhibit 3(i)vv.4 and 3(ii)vv.4 of this Form 8-K. 93 Vista Vacations International, Inc. Consent in Lieu of Meeting THE UNDERSIGNED, being the all of the Stockholders and all of the members of the Board of Directors of Vista Vacations International, Inc.. (the "Corporation"), pursuant to authority granted under Florida Statutes Sections 607.0704 and .0821, hereby take the following actions and adopt the following resolutions: Witnesseth: WHEREAS, as a result of the Corporation's current status as a wholly owned subsidiary of AmeriNet Group.com, Inc., a publicly held Delaware corporation ("AmeriNet"), it is appropriate to amend its articles of incorporation and bylaws (collectively sometimes hereinafter referred to as the "Constituent Documents") in order to effectuate the provisions of the reorganization agreement pursuant to which the Corporation was acquired by AmeriNet, as subsequently amended, and the provisions of the reorganization agreement pursuant to which Vista Vacations International, Inc., a Florida corporation was merged into the Corporation, and to reflect its current status and operational procedures and requirements; NOW, THEREFORE, be it: RESOLVED, that this Corporation's articles of incorporation be amended and restated in the form heretofore circulated among the duly authorized and empowered representatives of AmeriNet, this Corporation's sole stockholder, a copy of which is annexed to and made a part of this written consent in lieu of special meeting of stockholders as exhibit A, and that a restated copy thereof be placed in the Corporation's minute book, in the place and stead of the Corporation's articles of incorporation and subsequent amendments thereto; and be it FURTHER RESOLVED, that the Corporation's bylaws be, and they are hereby repealed and replaced by the form of bylaws heretofore circulated among the duly authorized and empowered representatives of AmeriNet, this Corporation's sole stockholder, a copy of which is annexed to and made a part of this written consent in lieu of special meeting of stockholders as exhibit B, and that a restated copy thereof be placed in the Corporation's minute book, in the place and stead of the Corporation's repealed bylaws; and be it FURTHER RESOLVED, that the Officers of this Corporation are hereby authorized, empowered and directed to take all actions on behalf of the Corporation necessary or desirable to effect the foregoing. DONE, effective as of the 7th day of March, 2000. AmeriNet Group.com, Inc., as the sole stockholder of Vista Vacations International, Inc. By: /s/ Michael H. Jordan ______________________ Michael A. Jordan, President {Seal} Attest: /s/ Vanessa H. Lindsey _____________________ Vanessa H. Lindsey, Secretary 94 RESOLUTION BE IT RESOLVED, that by unanimous vote of the Board of Directors of Vista Vacations International, Inc., the amended Articles of Incorporation and Amended Bylaws have been adopted. Dated: Margate, Florida March 7, 2000 /s/ Alicia Torrealba, Secretary RESOLUTION BE IT RESOLVED, that by a vote of the Board of Directors of Vista Vacations International, Inc., the Reorganization Agreement and Affiliate Agreements with AmeriNetGroup.com, Inc. are hereby approved and accepted and. Pursuant to the terms of the Reorganization Agreement the Secretary is hereby directed to cancel all stock certified pursuant tot instructions of each shareholder and the issuance of 100% of the common stock of Vista Vacations International, Inc. to AmeriNetGroup.com, Inc. Dated: Margate, Florida March 7, 2000 /s/ Alicia Torrealba, Secretary Schedule 1.7(C) Vista Vacation's Final Stockholder Data Name State Shares Cert No. Date Issued Consideration - ---- ----- ------ -------- ----------- ------------- Nellie Tippery Washington 375 shares unknown 11/13/98 canceled Teri E. Nadler Florida 765 shares 1 11/13/98 $ 765.00 Jean Hickman Florida 20 shares 4 11/13/98 $ 20.00 Alicia Torrealba Florida 20 shares 5 11/13/98 $ 20.00 Ken & Carol Nelson Florida 75 shares 3 01/21/00 $50,000.00 Jean Hickman Florida 160 Shares 6 01/21/00 $ 160.00 Alicia Torrealba Florida 40 shares 7 01/21/00 $ 20.00 Karyn McKnight Washington 20 shares 8 01/21/00 $13,333.20 Scott B. Ugell New York 400 shares 2 11/13/98 $ 400.00 (Corrected issuance) 1875 shares Schedule 2.4(D) Conflicts with Obligations NONE Schedule 2.5(A) Vista Vacations Financial Statements 1. Balance Sheet and Profit and Loss Statements thru December 31, 1999. 2. Budget 3. Quarterly Tax Returns for March/99, June/99, Sept/99, Dec/99. 95 Balance Sheet and Profit and Loss Statements thru December 31, 1999. Dec 31, '99 ------------ ASSETS Current Assets Checking/Savings First Union Cap Account 5,775.54 First Union Operations 66,063.09 ------------ Total Checking/Savings 71,838.63 Other Current Assets Credit Card Reserve 7,077.00 Petty Cash 200.00 ------------ ------------ Total Other Current Assets 7,277.00 ------------ Total Current Assets 79,115.63 Fixed Assets Accumulated Depreciation -11,901.74 Computer Equipment 18,281.55 Furniture and Fixtures 13,387.28 Leasehold Improvements 1,089.00 Office Equipment 30,676.75 ------------ Total Fixed Assets 51,532.84 Other Assets Intangibles Accumulated Amortization -561.60 Organizational Costs 400.00 Trademark 7,224.00 ------------ Total Intangibles 7,062.40 Prepaid Consulting Fees 86,000.00 Prepaid Interest 684.20 Prepaid Rent 1,116.72 Recoverable Deposits 2,962.76 ------------ ------------ Total Other Assets 97,826.08 ------------ ------------ TOTAL ASSETS 228,474.55 ============ LIABILITIES & EQUITY Liabilities Current Liabilities Other Current Liabilities Payroll Liabilities 12,189.88 ------------ ------------ Total Other Current Liabilities 12,189.88 ------------ Total Current Liabilities 12,189.88 Long Term Liabilities N/P BSFS-Telephone System 12,087.00 N/P Xerox-Copiers 12,219.32 ------------ ------------ Total Long Term Liabilities 24,306.32 ------------ Total Liabilities 36,496.20 Equity Additional Paid in Capital 180,000.00 Net Income 11,978.35 ------------ ------------ Total Equity 191,978.35 ------------ ------------ TOTAL LIABILITIES & EQUITY 228,474.55 96 Jan - Dec '99 -------------- Ordinary Income/Expense Income Air Tickets 2,821.00 Car Reservations 508.95 ClLIA Fams 197,942.94 Cruises 185,826.98 Enrollment Income 103,637.96 Hotel Reservations 1,481.12 Override Commission 3,266.94 Printing Commission 14,426.49 Tours 134,595.70 Travel Insurance 2,643.90 -------------- Total Income 647,151.98 Cost of Goods Sold CLIA Fam Expense 144,124.54 Cruise Line Expense 62,069.29 Enrollment Expense 4,284.20 Hotel Reservation Expense 182.40 Outside Printing 5,115.07 Tous Expense 71,756.70 -------------- -------------- Total COGS 287,532.20 -------------- Gross 359,619.78 Profit Expense Advertising 2,427.71 Automobile Expense 37,064.84 Bank Service Charges 465.23 Commissiom 49,216.54 Credit Card Expense 5,874.77 Delivery & Courier 3,223.28 Dues and Subscriptions 1,263.53 Equipment Rental 604.03 Insurance Group Insurance 7,521.85 Workman's Compensation 1,850.00 Insurance - Other 1,880.02 -------------- Total Insurance 11,251.87 Interest Expense Loan Interest 342.10 -------------- Total Interest Expense 342.10 Internet 1,851.80 Licenses and Permits 1,236.60 Miscellaneous 0.00 Office Expenses 15,867.30 Payroll Expenses 44,439.34 Payroll Taxes Fica and MC 506.47 Payroll Taxes-FUTA/SUTA -1,297.35 -------------- Total Payroll Taxes -790.88 Postage 3,670.54 Printing and Reproduction 821.90 Professional Fees Consulting 31,608.00 -------------- Total Professional Fees 31,608.00 Rent 27,747.80 97 Repairs & Maintenance Building Repairs 274.69 Computer Repairs 1,000.00 Repairs & Maintenance - Other 261.57 -------------- Total Repairs & Maintenance 1,536.26 Telephone 23,504.89 Travel & Ent Meals & Entertainment 6,208.38 Travel 1,511.18 Travel & Ent - Other 0.00 -------------- Total Travel & Ent 7,719.56 Trip Insurance 637.00 Uncategorized Expenses 0.00 Utilities Gas and Electric 2,030.74 Water 363.83 -------------- Total Utilities 2,394.57 Void 0.00 -------------- -------------- Total Expense 273,978.58 -------------- Net Ordinary Income 85,641.20 Other Income/Expense Other Income Interest 908.08 -------------- Total Other Income 908.08 Other Expense Amortization Expense 561.60 Depreciation Expense 11,901.74 Fines & Penalties 620.35 Officer Salary 61,487.24 -------------- -------------- Total Other Expense 74,570.93 -------------- -------------- Net Other -73,662.85 Income -------------- -------------- Net Income 11,978.35 ============== 98 COST ANALYSIS - YEAR 2000 ITEMS INCOME EXPENSE PROFIT (GROSS SALES) (COST) Enrollment $374,800 $138,500 $236,300 Renewal 30,000 30,000 Kinkos 69,600 36,888 32,712 Travel Sales 2,625,000 2,310,000 315,000 Agent Sales 0 157,500 0 Commission (157,500) Travel Insurance 91,875 73,500 18,375 Agent Travel Ins 0 4,593 0 Commission (4,593) Training Conferences 205,260 156,500 48,760 Website Advertising 50,000 0 50,000 Website Replica sites 100,000 84,500 15,500 Website Locater sites 472,500 236,250 236,250 (9 months) TOTAL $4,019,035 $3,198,231 $820,804 99 Budget March 2000 to March 2001 March April May June July August Rent 1,359 1,359 1,359 2,600 2,600 2,600 Utlities 185 185 185 450 450 450 Telephone 1,700 1,700 1,700 2,400 2,400 2,400 Phone Sys. BS FS 503 503 503 503 503 503 Copier Xerox (lease) 550 550 550 550 550 550 Office Insurance 291 291 291 400 400 400 Health Insurance 1,105 1,700 1,700 1,700 1,700 1,700 Workmans Comp. 165 165 16 165 165 165 Security System 25 25 25 50 50 50 Internet (Verio) 215 270 290 290 290 290 Accountant 125 125 125 125 125 125 Postage 150 150 250 250 250 150 Courier & Delivery 100 100 150 100 100 100 Office Supplies 300 500 200 500 200 200 Maintenance --- 100 100 200 200 200 Web Site 10,000 10,000 10,000 10,000 10,000 10,000 Advertising --- 4,000 4,000 4,000 4,000 4,000 Travel 5,000 5,000 5,000 5,000 5,000 5,000 Meals & Enter. 600 600 600 600 600 600 Furn. & Equip. 3,500 1,500 --- 1,500 --- --- Salary 28,332 30,065 30,065 31,798 31,798 31,798 Taxes (employee) 2,110 2,240 2,240 2,370 2,370 2,370 Auto Expense 2,000 2,000 2,000 2,000 2,000 2,000 Misc. Expense 300 300 300 300 300 300 Promotion (Dale) 225 225 225 225 225 225 Trade Show --- --- ---- --- --- 5,000 TOTAL 52,715 63,653 62,023 68,076 66,276 71,176 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Rent 2,600 2,600 2,600 2,600 2,600 2,600 2,600 Utlities 450 450 450 450 400 400 400 Telephone 2,400 2,400 2,400 2,400 2,400 2,400 2,400 Phone Sys. BS FS 503 503 503 500 503 503 503 Copier Xerox (lease) 550 550 550 550 550 550 550 Office Insurance 400 400 40 400 400 400 400 Health Insurance 1,105 1,700 1,700 1,700 1,700 1,700 1,700 Workmans Comp. 165 165 165 165 165 165 165 Security System 50 50 50 50 50 50 50 Internet (Verio) 290 290 290 290 290 290 290 Accountant 125 125 125 125 125 125 125 Postage 150 250 250 150 150 250 150 Courier & Delivery 100 100 100 100 150 10 100 Office Supplies 200 200 200 200 200 20 200 Maintenance 200 200 200 200 200 200 200 Web Site 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Advertising 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Travel 5,000 5,000 5,000 5,000 5,000 5,000 Meals & Enter. 600 600 600 600 600 600 600 Furn. & Equip. --- --- --- --- --- --- --- Salary 31,978 31,978 31,798 31,798 31,798 31,798 31,798 Taxes (employee) 2,370 2,370 2,370 2,370 2,370 2,370 2,370 Auto Expense 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Misc. Expense 300 300 300 300 300 300 300 Promotion (Dale) 225 225 225 225 225 225 225 Trade Show --- --- 5,000 --- --- --- --- 66,176 66,276 71,226 66,126 66,226 66,326 66,126 100 PROJECTED REVENUE FROM MEMBERSHIP First Year 1999 Founders: 100 @ $349.00-----------------$ 34,900 Affiliates: 75 @ $ 99.00-----------------$ 7,425 Vista Agent: 400 @ $449.00-----------------$179,600 Affiliates: 200 @ $149.00-----------------$ 29,800 Club Member: 100 @ $ 79.00-----------------$ 7,900 TOTAL $262,075 COST OF MEMBERSHIP Founders and Affiliates----------------$10,800 Vista Agent and Affiliates-------------$41,800 Club Member and Affiliates-------------$ 950 (see attached for breakdown of cost) TOTAL $(53,550) NET REVENUE FOR MEMBERSHIP ** TOTAL $208,525 **This is a very conservative total as we believe that the membership for the first year will be triple the amount we are projecting. However, it is our business philosophy to deliver much more than expected! PROJECTED REVENUE FROM 1-1-99 THROUGH 12-31-99 INCOME NEW MEMBER ENROLLMENT $262,075 COM. ON CRUISE SALES $784,000 INSURANCE REVENUE $ 75,421 --------- TOTAL $1,121,496 EXPENSES MEMBERSHIP (53,550) REFERRAL COM. AGENTS (53,415) COM TO AGENTS (235,200) FIXED OPERATING COSTS (386,836) 12% INCREASE OF OPERATING EXP. (2ND 6 MONTH PERIOD) (46,420) TOTAL (775,421) NET PROFIT 346,075 **see note on Projected Revenue from Membership 101 Schedule 2.7 Changes Since Vista Vacations' Financial Statements NONE Schedule 2.8(A) Tax Disclosure Schedule No tax delinquencies. Schedule 2.10(A) Leased Real Property 1. Commercial Lease dated December 9, 1998 between John A. Roschman and Vista for property located at 5653 NW 29th Street, Margate: Two year term ending December 31, 2000. Rent is presently $1,247.00 per month. No other Leased Real Property. Item 1 can be found as exhibit 10vv.1 to this Form 8-K. Schedule 2.10(C) Equipment Leased Equipment: 1. BSFS Equipment Leasing of ICS phone system, supplier BellSouth Communications Systems, Inc. dated 12/31/1998 for term of 36 months at 473.8 per month. 2. Xerox Equipment Lease dated 3/16/99 36 months at $87.32. 3. Xerox Equipment Lease dated 3/16/99 36 months at $57.65. 4. Xerox Equipment Lease dated 3/16/99 36 months at $252.60. 5. Equipment and Inventory List Items 1-4 can be found as exhibits 10vv.2 through 10vv.5 of this Form 8-K. VISTA VACATIONS INTERNATIONAL INVENTORY LIST NORSTAR PLUS MODULAR COMMUNICATION SYSTEM (1) PANASONIC FAX AND COPIER (1) XEROX 5322 BLACK AND WHITE COPIER (1) XEROX 5760 COLOR COPIER (1) XEROX PRO 635 FAX WORK CENTER (1) REFRIGERATOR (1) TOASTER (1) COFFEE MAKER (1) TWO DRAWER BLACK FILE CABINETS (6) SMALL WHITE FILE CABINET (1) WORK TABLE (1) STACKING SHELVES (4) FOUR DRAWER BLACK LATERAL FILE CABINETS (3) GRAY HIGH BACK EXECUTIVE CHAIR (1) GRAY LOW BACK DESK CHAIRS (8) TWO DRAW LAMINATED EXECUTIVE FILE CABINET (1) MIRROR AND CABINET EXECUTIVE WALL UNIT (1) GLASS AND DOUBLE PEDESTAL EXECUTIVE DESK (1) IMPORTED WHITE AND SILVER PLATED VASES (2) WHITE TATAN WING CHAIRS (2) WHITE RATAN OCCASIONAL TABLE (1) LARGE 8" GRAY FORMICA LAMINATE MULTI-SHELF UNITS (2) BLACK BELL SOUTH TELEPHONE (1) CITIZENS AND TRANZ VERIFONE CREDIT CARD TERMINAL (10) PITNEY BOWES POSTAGE METER AND SCALE (1) WHITE TWO SHELVE TABLE (1) MONITOR, E MACHINE ETOWER 333 COMPUTER, KEYBOARD, PRINTERS (14) SPEAKERS (10) MISCELLANEOUS SOFTWARE PROGRAMS 10MEGA ZIP 1001 (3) POWER BATTERY BACK UP (10) ACCESSORIES (WALL HANGINGS, FLORAL ARRANGEMENTS, PLANTS ETC.) DESK ACCESSORIES AND OFFICE SUPPLIES (CALCULATORS, WASTE BASKETS STAPLERS, STACK FILES, ETC.) SCANNERS (2) HEWLETT PACKARD DESKJET 560C PRINTER (1) 102 Schedule 2.11 Intellectual Property 1. Federal Trademark Elimination Search dated November 24, 1998. No other Intellectual Property. To: Richard Chamberlin From: Scott B. Ugell Date: March 11, 2000 Richard, With regard to you question about the trademark relative to schedule Section 2.11, please be advised that while a trademark search was in fact completed, the application for a trademark has not been completed. As such, we can provide a copy of the search but nothing else related thereto. Please call us when and if you need to discuss this. /s/ Scott B. Ugell Corporate Service Bureau, Inc. 283 Washington Avenue Albany New York 12206 Phone (518) 463-8550 Fax (518) 463-3752 November 24, 1998 Scott Ugell 155 North Main Street New City, NY 10956 Re: Federal Trademark Research for "Vista Vacations International" for Travel Dear Mr. Ugell: Enclosed please fine our comprehensive report on the Federal Trademark Search performaed on the above mark. In order to proceed with the Federal Trademark filing, we need you to complete the attached worksheet and return it with a check payable to Corporate Service Bureau, in the amount of $675.00 to file in one class. Attached is a credit card authroization form for your convenience. Also enclosed is a timetable for the application procedure. Thank you. Sincerely, /s/ Scott J. Schuster Corporate Service Bureau Enclosures 103 Corporate Service Bureau, Inc. Ref. No: 116283 283 Washington Avenue Client ID: 397011 Albany New York 12206 Inv. Date: November 24, 1998 Phone (518) 463-8550 Fax (518) 463-3752 Billed to: Scott Ugell 155 N. Main Street New City, New York 10956 Performed a Federal Trademark Elimination search from the u.s. patent & trademark office for: VISTA VACATIONS INTERNATIONAL SERVICE FEE $475.00 --------- Invoice Total $475.00 We have received your payment of $475.00, VIS74431-232 The credit will appear on your monthly statement. The remaining balance due on this invoice is $0.00 Thank you - Pay this invoice upon receipt Return copy of this invoice with your payment - write the invoice number on all payments. Note: We guarantee our information to be as accurate as reasonable care can make it. However, the ultimate responsibility for maintaining files rests with the filing officer and/or government agency and we will accept no liability beyond the exercise of reasonable care. Biller: DMC U.S. PATENT & TRADEMARK OFFICE CORPORATE SERVICE BUREAU INC. 283 Washington Avenue Albany, New Yor 12206 518-463-8550 Fax: 518-463-3762 Requested By: VISTA VACATIONS INTERNATIONAL Type of Search STANDARD FEDERAL (USPTO) SEARCH GOOD/SERVICES: TRAVEL SERVICES DATE OF SEARCH: NOVEMBER 23, 1997 ******** This report contains information from U.S. Patent and Trademark Office Tapes received through 11/17.98. If you have any questions about this Report, please write or call us at (518) 463-8550. ******** Corporate Service Bureau 283 Washington Avenue Albany, New York 12206 518-463-8550 Fax: 518-463-3762 104 Schedule 2.12 Contracts and Agreements 1. Shareholders Agreement and Irrevocable Proxy for Vista Vacations International, Inc., dated November 13, 1998, between Teri Nadler, Nellie Tippery, Jean Hickman, Alicia Torrealba. (32 pages) 2. Amended Shareholders Agreement dated September 28, 1999, between Teri Nadler, Nellie Tippery, Jean Hickman, Alicia Torrealba.(Four pages). 3. Letter agreement removing security interest in Vista shares by Nellie Tipper, dated January 20, 2000. 4. Security and Pledge Agreement dated November 14, 1998, between Nellie Tippery, Jean Hickman, Alicia Torrealba and Vista Vacations dated November 14, 1998. 5. Shareholders Agreement and Irrevocable Proxy dated January 17, 2000 between Teri Nadler, Scott B. Ugell, Jean Hickman, Alicia Torrealba, Karyn McKnight, Carol Nelson, and Ken Nelson. (28 pages). 6. Carnival Cruise Override Commission Agreement dated March 18, 1999. (2 pages). 7. Letter, application and membership agreement form with Vacation.com and Vista Vacations International, Inc. 8. Pending Agreement with Dale Everly Colson as Public Relations Consultant for $15,000 for 200 hours. 9. Agreement for Professional Services between Vista Vacations and WRIwebs.com, Inc. 10. Superseder & Conversion Agreement with Nellie Tippery. No other Contracts or Agreements except as disclosed in the Exhibits of the Reorganization Agreement. Items 1-10 can be found as Exhibit 10vv.6 through 10vv.15 of this Form 8-K. Schedule 2.12(A)(12) Debt & Guarantee Instruments 1. Promissory Note in favor of Nellie Tippery. 2. Cancellation of Promissory Note in favor of Nellie Tippery. No other Debt & Guarantee Instruments. Items 1-2 can be found as Exhibit 10vv.16 of this Form 8-K. Schedule 2.13 Related Party Transactions 1. Teri Nadler and Scott Ugell are brother and sister. No other Related Party Transactions. 105 Schedule 2.14 Governmental Authorization 1. State of Florida Department of Agriculture, Sellers of Travel Registration Certificate No. 00177 dated February 7, 2000, expires February 7, 2001. 2. State of Florida Broward County Occupational License for October 1, 1999 thru September 30, 2000. 3. Notice of Acceptance of S. Corporation dated March 22, 1999. 4. Corporate detail summary sheet as of January 1, 2000. - -------------------------------------------------------------------------------- STATE OF FLORIDA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES Division of Consumer Services Tallahassee, Florida 32399-0800 POST CERTIFICATE CONSPICUOUSLY Certificate No.: 00177 Date Issued: 02/07/2000 Date Expires: 02/07/2001 Fee Amount: $300.00 SELLERS OF TRAVEL REGISTRATION CERTIFICATE Section 559.928, Florida Statutes VISTA VACATIONS INTERNATIONAL, INC. 5653 NW 29 STREET MARGATE, FLORIDA 33063 Registration No.: ST-30880 Bob Crawford Commissioner of Agriculture - -------------------------------------------------------------------------------- BROWARD COUNTY OCCUPATIONAL LICENSE TAX FOR PERIOD OCTOBER 1, 1999 THRU SEPTEMBER 30, 2000 X Renewal SEC #32/328 TAX $81.00 Renew on or before September 30, 2000 Date Business Opened: 01/28/99 Account Number 328-0001284 State or County Cert/Reg # ST 30880 Business Location Address: 5653 NW 29 ST. MARGATE, FL 33063 Business Phone 954-975-0898 Tax ID#65-0877427 VISTA VACATIONS INTERNATIONAL INC NADLER, TERI 5653 NW 29 ST MARGATE, FL 33063 SELLER OF TRAVEL - 6 UNITS - 1999-2000 Broward County Revenue Collector 115 S. Andrews Ave., Governmental Center Annex Ft. Lauderdale, FL 33301 0 00000000 0000008100 0000003280001284 1001 0 8100 027373 07 91499 - -------------------------------------------------------------------------------- 106 Internal Revenue Service Date of this notice: Mar. 22, 1999 Atlanta, GA 39901 VISTA VACATIONS INTERNATIONAL INC 6645 NW 48TH MANOR CORAL SPRINGS FL 33067-2104455 NOTICE OF ACCEPTANCE AS AN S-CORPORATION Your election to be threated as an S-Corporation with an accounting period of December is accepted. The election is effective beginning January 1, 1999, subject to verification if we examine your return. If your effective date is not as requested, it will have been changed for one of two reasons. Either your election was made after the 15th day of the third month of the tax year to which it applies, but before the end of that tax year, or the election period. In either case, your election is invalid for the next tax year requested and has therefore, been treated as though it were made for the next tax year. Please keep this notice in your permanent records as verification of your acceptance as an S-corporation. If you have any questions about this notice or the actions we have taken, please write to us at the address shown aboe. If you prefer, you may call us at the IRS telephone number listed in your local directory. An employee there may be able to help you; however, the office at the address shown on this notice is most familiar with your case. If you write to us, please provide your telephone number and the most convenient time for us to call so we can contact you to resolve your inquiry. Please return the bottom part of this notice to help us identify your case. Thank you for your cooperation. 107 CORPORATE DETAILS As at January 1, 2000 Date of incorporation: November 12, 1998 State of Incorporation: Florida Principal Place of Business: Florida Chairperson: Scott Ugell Director: Director: Teri Nadler Director: Scott Ugell Officers: President Teri Nadler Vice-President: Scott Ugell Secretary Alicia Torrealba Treasurer Jean Hickman Bank Accounts: 2000004895840/9982760113 Fiscal Year: January 1 - 12/31 Annual Meeting Date: Ooctober 8th Attorney: Scott Ugell Accountant: Howard Kent Registered Agent: Teri Nadler Shareholders Number of Shares ------------ ---------------- Teri Nadler 765 Scott Ugell 400 Jean Hickman 180 Alicia Terrealba 60 M/M Nelson 75 Karen McKnight 20 Schedule 2.15 Litigation 1. No Litigation Pending. 2. No Potential Litigation Pending. Schedule 2.19 Brokers' and Finders' Fee 1. No Broker's fees or Finder's fees. 108 Schedule 2.20 List of Employees and Independent Agents Teri E. Nadler, President and Chief Executive Officer 6645 NW 45th Coral Springs, Florida 33062 Scott Ugell, General Counsel and Chief Legal Officer 155 N. Main Street New City, New York 10956 Jean Hickman, Executive Vice President of Operations and Finance 3780 SW 19th Street Fort Lauderdale, Florida 33312 Alicia Torrealba, Executive Director of CLIA 1985 S. Ocean Drive, Apartment 11-A Hallendale, Florida 33309 Karyn McKnight, Executive Director of Field Sales 10020A Main Street, Suite 177 Bellvue, Washington 98004 Trevor Grafflin, Inside Sales 22940 C. Oxford Place Boca Raton, Florida 33433 Jay Lovins, Inside Sales 2037 Champions Way North Lauderdale, Florida 33068 List of Independent Agents. SOURCE CODES & DESCRIPTIONS CODE DESCRIPTION ACTIVE 630 HOUSE ACCT YES F111 Brant/Evelyn YES F112 SCHWARTZ/Charles & K YES F113 Brody/Melvin & M YES F114 Bolich/Mayson & D YES F115 Goldberg/Robert & T YES F116 Fulton/Paul & Nancy YES F117 Boyd/Bob & Deloryce YES F118 Teitler/Herman & C YES F119 McCormack/S & Nolan YES F120 Janzen/Marvin & E YES F121 Woodward/Donna YES F122 Barker/Roy & Patty YES F123 Gray/Kathy & David R. YES F124 Fette/Judy YES F125 Wallace/.Marilyn & S YES F126 Snow/Rob & Max YES F127 Crane/Vicky & N YES F128 Crane/Jerry & Sue YES F129 Ellingson/Eunice & R YES F130 Cullen/D YES F131 Berman/Lewis & Barbar YES F132 Nelson/John & Sue YES F133 McDougal/Bev YES F134 Smith/Chris YES F135 Longden/Albert YES F136 Tennell/Lenoir YES F137 Wampler/Joyce YES F138 Maio/Don & Nancy YES F139 Tippery/Wayne YES F140 Horton/Art & Susan YES F141 Levine/Doreen YES F142 Manley/Carolyn YES F143 Sanchez/Valentina YES F144 Meyers/Christine YES F145 VACANT NO F146 Pirrie/Beth YES F147 Kasman/Ed & Miriam YES F148 Burns/Eugene & Doris YES F149 Hasson/Betty & Doris YES F150 Knorr/Mell & Betty YES 109 F151 Wells/Bob & Joan YES F152 Goodman/Harold & S YES F153 Turner/Yvonne & G YES F154 Green/Roz & McNab S YES F155 Whitmer/Mary & Jim YES F156 Thorp/Dixie YES F157 Kelly/Bruce & Havens/D YES F158 Feist/Gloria & Donald YES F159 Vacant NO F160 Vacant NO F161 Vacant NO F162 Sobel/Vicki & Nathan YES F163 Knight/Arlene YES F164 Arberle/Helen YES F165 Pelligrini/Susan & M YES F166 Gadman/Dan & Jacquelin YES F167 Kiss/Louise & Charle YES F168 Flowers/Joyce YES F169 Bauersfield/Bunny YES F170 Leveque/Rochelle YES F171 Benz/Shirley & Robert YES F172 Engelter/Barbara YES F173 Barnett/C E YES F174 VACANT NO F175 VACANT NO F176 Wagner/Doris & Ralph YES F177 Stillwell/Veda & R YES F178 Covey/Nancy & Christa YES F179 VACANT NO F180 Gooch/J & D Cook YES F181 Hofmann/Marilyn & F YES F182 Howe/Robert & June YES F183 Barclay/David & J YES F184 Brietenfeldt/Don & Bev YES F185 Olsson/Ulla YES F186 McCormick/Janice YES F187 Bongolan/N& Sanchez V YES F188 VACANT NO F189 Stillwell/Ken & Lorrai YES F190 Liberman/Cindy & B YES F191 Bernstein/Edgar & Trud YES F192 Gorham/Art YES F193 Town/Roberta & Doug YES F194 Voll/Nancy & Ed YES F195 Futch/Cleveland & R YES 110 F196 Criss/Marti & Loren YES F197 Dewar/John & Irene YES F198 VACANT NO F199 VACANT NO F200 VACANT NO P101 Lange/Dean & Lois YES P102 Markey/Jennifer YES P103 Gunderson/Ken & Lori YES P104 Havens/Carol & Dan YES P105 Shumway/Rhonda YES P106 Slof/Barbara & Marvin YES P107 Omdal/Desiree & L YES P108 Williamson/Darlene & B YES P109 Tippery/Nellie YES P110 Goodmenson/Sharon YES TAU NO UNI NO V201 Vance/Betty YES V202 Slof/Randy & Carolyn YES V203 Matthes/Janine YES V204 Ingram/Nancy YES V205 Gunderson/Bernard YES V206 Colbert/Elba & Varga YES V207 Stonberg/Marvin & S YES V208 Saba/Pamela & Cohn YES V209 Dunkin/Ester & Klein YES V210 Goodwin/James YES V211 Nelson/Ken & Carol YES V212 Afshar/Mahmunir YES V213 McDevitt/Patricia YES V214 Lawrence/Thomas YES V215 Miller/Pamela, Dr. YES V216 Crane/Greg & Orner/L YES V217 Brewer/Dorothy YES V218 Pirkle/Randle & Carol YES V219 Abaroa/Mildred YES V220 Nance/Donna YES V221 Kantor/Karen & Hunte YES V222 McKnight/Dean YES V223 Davidoff/Sid & Rovello YES V224 Wright/Meredith & Elsw YES V225 Erkind/Ken & Lynnea YES V226 Burke/Carolyn & John YES V227 Holmes/Robert & Lore YES V228 Zarider/Frank YES 111 V229 Kay/Doug Dr. & Dixon YES V230 Peel/Don & Carolyn YES V231 Neilson/Rex YES V232 Hilliard/David & Eliz YES V233 Swords/Verla & John YES V234 Bench/Gary YES V235 Madsen/Shelly YES V236 Friedman/Gary & Leiman YES V237 Galt/Cleora & Robert YES V238 Murakami/Masako & Stan YES V239 Link-McDonald/Judith YES V240 Ramsey/Linda YES V241 McCollum/Phillip & M YES V242 Kushner/Joseph & Dolor YES V243 Nabatoff/Goldie & Ro YES V244 Harris/Pamela YES V245 Bitney/Dean YES V246 Sherman/Colleen/John YES V247 Hughes/Randy YES V248 Reisman/Carl/Claire YES V249 Zane/Alan/Susan YES V250 Brunshow/Erik & Lorr YES V251 Cable/Jeff/Lynne YES V252 Doctor/Janice/Michael YES V253 Herring/Pearson YES V254 Caswell/Marilyn YES V255 VACANT NO V256 Dekoker/Maria YES V257 King/Edward & Barbara YES V258 Makeeff/Mary YES V259 Maryasis/Isaac & Olg YES V260 Armacost/Wm & Cather YES V261 Kennedy/David & L Swe YES V262 Hughes/Donald & Loui YES V263 Crespin/Sol & Ruth YES V264 Bookman/Dianne & J Hul YES V265 Albert/Allen YES V266 Galperine/Maria & Mich YES V267 Bronstein/Balla & Ilya YES V268 Martineau/Roberta YES V269 Greenberg/Lana & Jacob YES V270 York/Agnes & James YES V271 Suter/Kris & Jessica YES V272 McWhorter/Joe & Paulin YES V273 Hutcherson/Wallace & W YES 112 V274 Hogan/Felicia YES V275 Mason/Carl YES V276 Haley/Ana & George YES V277 Wallace/Carlos YES V278 Hoda/Fairideh & Linda YES V279 Wagner/Lynn & Carol YES V280 Wasko/Joan & Joseph YES V281 Allison/Rosalie & Don YES V282 Brooks/Thelma YES V283 Applegate/Audrey YES V284 Roseberry/Mark YES V285 Vanier/Denis YES V286 Klein/W Pls 3 Assoc YES V287 Fisch/Shirley & Alvin YES V288 Carberry/John & Katherine YES V289 Tufford/Laverne & Phyl YES V290 Nelson/Patsy & Gary YES V291 Elliott/Nyta & Jerrold YES V292 Wampler/Joyce YES V293 Murray/Stanley & Hilde YES V294 Ricketts/David & Jeani YES V295 Rucker/Marcelene YES V296 Watson/Bernice YES V297 Wilkerson/Joyce YES V298 Berardi/Dennis/Carol YES V299 Leung/Susan YES V300 Moore/Stephanie YES V301 Vanderwalker/Sue YES V302 Grafflin/Ray/Celia YES V303 Grafflin/Steven/Ann YES V304 Broadbridge/Corinne YES V305 Grafflin/Trevor/Marl YES V306 Grafflin/Mark/Jan YES V307 Beven/Jason/Kate YES V308 Broadbridge/Chris/Al YES V309 Grafflin/Janine/Hayl YES V310 Ladd/Ian/Ruth YES V311 Ladd/Ken/Heather YES V312 Ugell/Scott/Rhonda YES V313 Ugell/Shi/Jac/Rac/Ml YES V314 Lovins/jay YES V315 Barbie/McKinney YES V316 Mason/James/Tonya YES V317 Lovins/Louis/Naomi YES V318 Young/Mike/Tammey YES 113 V319 Simpson/Jeff/Belinda YES V320 Plough/Carol/Bob YES V321 Adkins/Jerry/Barbara YES V322 Lovins/Dale/Mary YES V323 Lenihan/John YES V324 McCary/Shann/Melissa YES V325 Mason/Linda/James YES V326 Schmidt/Nancy/John YES V327 Brewer/Doris/John YES V328 Chetti/Barbara YES V329 Adkins/Kerry YES V330 Wood/Donna/Russell YES V331 Curry/Larry YES V332 Davis/Jay/Melinda YES V333 Mathies/Kim YES V334 Franklin/Jodi/Todd YES V335 Bercaw/Mike/Jodie YES V336 Sedberry/Mike/Michel YES V337 Clint/John/Gwen YES V338 Clint/Dan/Dwight YES V339 Kiedinger/Tim/Kar/Sa YES V340 Kiedinger/Patsy YES V341 Hickman/Kieth/Krissy YES V342 Clay/Patsy/Keith YES V343 Wright/Lynn/Floyd YES V344 Ewing/Cleta YES V345 Crane/Betty/.Melvin YES V346 Crane/Mike/Rhonda YES V347 Crane/Melody YES V348 Crane/Danny YES V349 Crane/Mike YES V350 Davis/Stephany YES V351 Thomas/Murphy/Mary YES V352 Herring/Yvonne/Sharo YES V353 Kaufman/Jack YES V354 Ugell/Marc/Marci YES 114 Schedule 2.21 Insurance 1. Premium Finance Agreement dated February 2, 2000, in the amount of $3,420.06 financing $2,565.04 in 10 payments of $274.82. (For Preferred National Insurance.) 2. Insurance Policies with Preferred National Insurance Company dated February 3, 2000. 3. Group Health Insurance Policy with United Wisconsin Life Insurance Company dated June 1, 1999, through June 1,2000. 4. Comp Options Workers Compensation and Employers Liability Policy dated December 12, 1999. 5. Scott Ugell's Malpractice Insurance and Professional Liability Policy with Bertholan-Rowland, policy number 301691-0 dated May 5, 1999 to May 1, 2000. No additional Insurance Policies. Items 1-5 can be found as Exhibit 10vv.17 through 10vv.19 of this Form 8-K. Schedule 2.27 Employee Benefit Plans NONE Schedule 2.28 Distribution Agreements NONE Schedule 4.1 Exceptions to Prohibited Pre-Closing Actions Schedule 5.7 Consents NONE Schedule 5.8 Affiliates 1. Teri E. Nadler 2. Scott Ugell 3. Ken Nelson & Carol Nelson 4. Jean Hickman 5. Alicia Torrealba 6. Karyn McKnight 7. Nellie Tippery Schedule 5.12 List and Summary of Employment Agreements and Confidentiality Agreements. 1. Teri E. Nadler, President and Chief Executive Officer 2. Scott Ugell, General Counsel and Chief Legal Officer 3. Jean Hickman, Treasurer and Chief Financial Officer 4. Alicia Torrealba, Secretary 5. Karyn McKnight 6. Trevor Grafflin 7. Jay Lovins 115 Schedule 5.13 Use of Proceeds March 8, 2000 Re: Use of Proceeds for Vista Vacations International, Inc. for $650,000 Description First Payment Second Payment Third - Sixth Payment Office Equipment $3,200 $2,000 $0 Payroll-Marketing $15,000 $15,000 $15,000 Public Relations $4,500 $4,500 $4,500 Entertainment $4,300 $5,000 $5,000 Audit Expense $15,000 $2,500 $2,500 Telephone Expenses $4,500 $4,500 $4,500 Advertising $6,000 $6,000 $6,000 Postage $2,500 $2,500 $2,500 Printing $3,500 $3,500 $3,500 Working Capital $11,500 $44,500 $27,500 Scott Ugell $25,000 $0 $0 WRIwebs.com $30,000 $30,000 $30,000 TOTAL $125,000 $125,000 $100,000 * Teri Nadler returns $25,000 as a shareholder loan in cash immediately post closing 116 Schedule 5.14 Projections APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR YEARLY TOTAL Agents Added 19 21 30 55 40 80 124 134 78 115 135 140 971 Total Agents 438 459 489 544 584 664 788 922 1000 1115 1250 1390 REVENUES TRAVEL: TRAVEL 75000 70000 75000 80000 60000 70000 80000 90000 50000 110000 110000 120000 990000 CLIA 125000 112500 162500 25000 162500 162500 162500 912500 TRAVEL INS. 2625 2450 2625 2800 2100 2450 2800 3150 1750 3850 3850 4200 34650 ------------------------------------------------------------------------------------------------------- TTL TRAVEL 77625 72450 77625 82800 62100 197450 195300 255650 76750 276350 276350 286700 1787150 ENROLLMENT: ENROLLMENT 7600 8400 12000 22000 16000 32000 49600 53600 31200 46000 54000 56000 388400 RENEWAL 11150 11570 800 2230 6100 1065 4130 37045 PRINTING 1520 1680 2400 4400 3200 6400 9920 10720 6240 9200 10800 66480 TRAINING 205260 205260 ------------------------------------------------------------------------------------------------------- TTL ENROLLMENT 7600 9920 13680 24400 31550 46770 56800 65750 41920 58340 269525 626255 1252510 WEB AND OTHERS: WEB ADVERTISING 4000 4000 8000 8000 12000 36000 WEB REPLICA SITE 3000 5000 10000 5000 3000 10000 10000 4000 50000 WEB LOCATION SITES 5000 10000 12500 17500 22500 25000 30000 32000 37000 42000 47000 280500 -------------------------------------------------------------------------------------------------------- TTL WEB & OTHER 0 5000 10000 15500 22500 32500 30000 37000 36000 55000 60000 63000 366500 TOTAL REVENUES 85225 87370 101305 122700 116150 276720 282100 358400 154670 389690 605875 975955 975955 REVENUES COSTS: TRAVEL: TRAVEL COST 0 61600 66000 70400 52800 61600 70400 79200 44000 96800 96800 105600 805200 CLIA COST 0 0 0 0 0 81000 81000 81000 81000 81000 81000 486000 TRAVEL INS. 2100 1960 2100 2240 1680 1960 2240 2520 1400 3080 3080 3360 27720 COMMISSIONS 131 4323 4631 4940 3705 4323 4940 5558 3088 6793 6793 7410 56633 ------------------------------------------------------------------------------------------------------- TTL TRAVEL COSTS 2231.3 67883 72731 77580 58185 148883 158580 168278 48488 187673 187673 197370 1375553 ENROLLMENT: CLIA 950 1050 1500 2750 2000 4000 6200 6700 3900 5750 6750 7000 48550 COMMISSIONS 1140 1260 1800 3300 2400 4800 7440 8040 4680 6900 8100 8400 58260 ------------------------------------------------------------------------------------------------------- TTL ENROLLMENT 2090 2310 3300 6050 4400 8800 13640 14740 8580 12650 14850 91410 106810 WEB AND OTHERS: WEB ADVERTISING WEB REPLICA SITE 0 0 0 2535 4225 8450 4225 2535 0 8450 8450 3380 42250 WEB LOCATION SITE 0 2500 5000 6250 8750 11250 12500 15000 16000 18500 21000 23500 140250 PRINTING 0 798 882 1260 2310 1680 3360 5208 5628 3276 4830 5670 34902 TRAINING CONF. 156500 156500 ---------------------------------------------------------------------------------------- TTL WEB AND OTHERS 0 3298 5882 10045 15285 21380 20085 22743 21628 30226 190780 341352 373902 TOTAL COST OF REVENUES 4321.3 73491 81913 93675 77870 179063 192305 205761 78696 230549 393303 630132 630132 GROSS PROFIT 80904 13880 19392 29025 38280 97658 89795 152640 75975 159142 212573 345823 1315084 LESS: 0 OPERATING COSTS 0 FROM PAGE 2 51,343 54,584 56,797 57,823 67,144 74,864 60,241 66,312 58,112 64,928 64,554 77,309 754,011 NET INCOME 29,561 -40,705 -37,405 -28,798 -28,864 -27,207 29,581 36,327 17,863 44,213 148,018 98,001 -23,025 117 VISTA VACATIONS YEAR 2 4/1/01-3/31/02 APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR YEARLY TOTAL Agents Added 100 80 60 75 45 90 100 100 50 90 150 150 1,090 Total Agents 1,183 1,263 1,323 1,398 1,443 1,533 1,633 1,733 1,783 1,873 2,023 2,173 REVENUES TRAVEL: TRAVEL 177,450 189,450 198,450 209,700 216,450 153,300 244,950 259,950 178,300 280,950 303,450 325,950 2,738,350 CLIA 150,000 150,000 150,000 150,000 150,000 150,000 900,000 TRAVEL INS. 6,211 6,631 6,946 7,340 7,576 5,366 8,573 9,098 6,241 9,833 10,621 11,408 95,842 -------------------------------------------------------------------------------------------------------------------- TTL TRAVEL 183,661 196,081 355,396 217,040 224,026 158,666 403,523 419,048 184,541 440,783 464,071 487,358 3,734,192 ENROLLMENT: ENROLLMENT 40,000 32,000 24,000 30,000 18,000 36,000 40,000 40,000 20,000 36,000 60,000 60,000 436,000 RENEWAL 1,881 2,079 1,980 5,445 14,120 18,500 9,116 8,863 3,762 13,030 9,480 13,139 101,395 PRINTING 7,280 8,000 6,400 4,800 6,000 3,600 7,200 8,000 8,000 4,000 7,200 12,000 82,480 TRAINING 205,260 205,260 410,520 -------------------------------------------------------------------------------------------------------------------- TTL ENROLLMENT 49,161 42,079 32,380 40,245 38,120 58,100 261,576 56,863 31,762 53,030 281,940 85,139 1,030,395 WEB AND OTHERS: WEB ADVERTISING 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000 WEB REPLICA SITE 5,000 4,000 3,000 3,750 2,250 4,500 5,000 5,000 2,500 4,500 7,500 7,500 54,500 WEB LOCATION SITES 11,830 12,630 13,230 13,980 14,430 15,330 16,330 17,330 17,830 18,730 20,230 21,730 193,610 -------------------------------------------------------------------------------------------------------------------- TTL WEB & OTHER 28,830 28,630 28,230 29,730 28,680 31,830 33,330 34,330 32,330 35,230 39,730 41,230 392,110 TOTAL REVENUES 261,652 266,790 416,006 287,015 290,826 248,596 698,429 510,241 248,633 529,043 785,741 613,727 5,156,697 REVENUES COSTS: TRAVEL: TRAVEL COST 156,156 166,716 174,636 184,536 190,476 134,904 215,556 228,756 156,904 247,236 267,036 286,836 2,409,748 CLIA COST - - 108,000 - - - 108,000 108,000 - 108,000 108,000 108,000 648,000 TRAVEL INS. 4,969 5,305 5,557 5,872 6,061 4,292 6,859 7,279 4,992 7,867 8,497 9,127 76,674 COMMISSIONS 10,958 11,699 12,254 12,949 13,366 9,466 15,126 16,052 11,010 17,349 18,738 20,127 169,093 ------------------------------------------------------------------------------------------------------------------ TTL TRAVEL COSTS 172,082 183,719 300,447 203,357 209,902 148,663 345,540 360,087 172,906 380,451 402,271 424,090 3,303,515 ENROLLMENT: CLIA 4,550 5,000 4,000 3,000 3,750 2,250 4,500 5,000 5,000 2,500 4,500 7,500 51,550 COMMISSIONS 6,000 4,800 3,600 4,500 2,700 5,400 6,000 6,000 3,000 5,400 9,000 9,000 65,400 ------------------------------------------------------------------------------------------------------------------- TTL ENROLLMENT 10,550 9,800 7,600 7,500 6,450 7,650 10,500 11,000 8,000 7,900 13,500 16,500 116,950 WEB AND OTHERS: WEB ADVERTISING WEB REPLICA SITE 4,225 3,380 2,535 3,169 1,901 3,803 4,225 4,225 2,113 3,803 6,338 6,338 46,053 WEB LOCATION SITE 5,915 6,315 6,615 6,990 7,215 7,665 8,165 8,665 8,915 9,365 10,115 10,865 96,805 PRINTING 3,822 4,200 3,360 2,520 3,150 1,890 3,780 4,200 4,200 2,100 3,780 6,300 43,302 TRAINING CONF. 156,500 156,500 313,000 ------------------------------------------------------------------------------------------------------------------ TTL WEB AND OTHERS 13,962 13,895 12,510 12,679 12,266 13,358 172,670 17,090 15,228 15,268 176,733 23,503 499,160 TOTAL COST OF REVENUES 196,594 207,414 320,557 223,535 228,619 169,670 528,710 388,177 196,134 403,619 592,503 464,093 3,919,624 GROSS PROFIT 65,058 59,376 95,449 63,479 62,207 78,925 169,719 122,065 52,499 125,424 193,238 149,635 1,237,073 LESS: OPERATING COSTS FROM PAGE 2 68,595 77,505 80,145 77,175 82,015 79,986 79,966 85,606 76,406 83,766 80,736 80,006 951,906 NET INCOME (3,537) (18,129) 15,304 (13,696)(19,808) (1,061) 89,753 36,459 (23,907) 41,658 112,502 69,629 285,166 118 VISTA VACATIONS YEAR 3 4/1/02-3/31/03 APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR YEARLY TOTAL Agents Added 70 90 60 60 90 90 80 60 50 90 90 120 950 Total Agents 2,259 2,349 2,409 2,469 2,559 2,649 2,729 2,789 2,839 2,929 3,019 3,139 REVENUES TRAVEL: TRAVEL 250,600 210,800 230,400 245,300 383,850 175,200 285,000 290,000 190,500 310,000 375,000 350,000 3,296,650 CLIA 75,000 200,000 250,000 150,000 150,000 150,000 150,000 1,125,000 TRAVEL INS. 8,771 7,378 8,064 8,586 13,435 6,132 9,975 10,150 6,668 10,850 13,125 12,250 115,383 ---------------------------------------------------------------------------------------------------------------------- TTL TRAVEL 259,371 218,178 313,464 253,886 397,285 381,332 544,975 450,150 197,168 470,850 538,125 512,250 4,537,033 ENROLLMENT: ENROLLMENT 33,530 43,110 28,740 28,740 43,110 43,110 38,320 28,740 23,950 43,110 43,110 57,480 455,050 RENEWAL 9,900 7,920 5,940 7,425 4,455 8,910 9,900 9,900 4,950 8,910 14,850 13,139 106,199 PRINTING 10,500 5,600 7,200 4,800 4,800 7,200 7,200 6,400 4,800 4,000 7,200 7,200 76,900 TRAINING 375,000 205,260 205,260 785,520 ---------------------------------------------------------------------------------------------------------------------- TTL ENROLLMENT 53,930 431,630 41,880 40,965 52,365 59,220 260,680 45,040 33,700 56,020 270,420 77,819 1,423,669 WEB AND OTHERS: WEB ADVERTISING 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000 WEB REPLICA SITE 9,500 4,500 4,000 5,000 8,500 9,500 8,000 6,000 4,000 6,000 8,000 9,000 82,000 WEB LOCATION SITES 22,590 23,490 24,090 24,690 25,590 26,490 27,290 27,890 28,390 29,290 30,190 31,390 321,380 ---------------------------------------------------------------------------------------------------------------------- TTL WEB & OTHER 44,090 39,990 40,090 41,690 46,090 47,990 47,290 45,890 44,390 47,290 50,190 52,390 547,380 TOTAL REVENUES 357,391 689,798 395,434 336,541 495,740 488,542 852,945 541,080 275,258 574,160 858,735 642,459 6,508,082 REVENUES COSTS: TRAVEL: TRAVEL COST 220,528 185,504 202,752 215,864 337,788 154,176 250,800 255,200 167,640 272,800 330,000 308,000 2,901,052 CLIA COST - - 54,000 - - 144,000 180,000 108,000 - 108,000 108,000 108,000 810,000 TRAVEL INS. 7,017 5,902 6,451 6,868 10,748 4,906 7,980 8,120 5,334 8,680 10,500 9,800 92,306 COMMISSIONS 15,475 13,017 14,227 15,147 23,703 10,819 17,599 17,908 11,763 19,143 23,156 21,613 203,568 ----------------------------------------------------------------------------------------------------------------------- TTL TRAVEL COSTS 243,019 204,423 277,430 237,880 372,239 313,900 456,379 389,228 184,737 408,623 471,656 447,413 4,006,926 ENROLLMENT: CLIA 4,550 3,500 4,500 3,000 3,000 4,500 4,500 4,000 3,000 2,500 4,500 4,500 46,050 COMMISSIONS 4,200 5,400 3,600 3,600 5,400 5,400 4,800 3,600 3,000 5,400 5,400 7,200 57,000 ----------------------------------------------------------------------------------------------------------------------- TTL ENROLLMENT 8,750 8,900 8,100 6,600 8,400 9,900 9,300 7,600 6,000 7,900 9,900 11,700 103,050 WEB AND OTHERS: WEB ADVERTISING WEB REPLICA SITE 8,028 3,803 3,380 4,225 7,183 8,028 6,760 5,070 3,380 5,070 6,760 7,605 69,290 WEB LOCATION SITE 11,295 11,745 12,045 12,345 12,795 13,245 13,645 13,945 14,195 14,645 15,095 15,695 160,690 PRINTING 5,513 2,940 3,780 2,520 2,520 3,780 3,780 3,360 2,520 2,100 3,780 3,780 40,373 TRAINING CONF. 281,250 156,500 156,500 594,250 ---------------------------------------------------------------------------------------------------------------------- TTL WEB AND OTHERS 24,835 299,738 19,205 19,090 22,498 25,053 180,685 22,375 20,095 21,815 182,135 27,080 864,603 TOTAL COST OF REVENUES 276,604 513,061 304,735 263,570 403,136 348,853 646,364 419,203 210,832 438,338 663,691 486,193 4,974,579 GROSS PROFIT 80,787 176,737 90,699 72,971 92,604 139,689 206,581 121,878 64,425 135,823 195,044 156,267 1,533,503 LESS: - OPERATING COSTS - FROM PAGE 2 76,195 85,245 87,225 86,083 91,523 86,908 86,708 92,788 83,278 95,602 90,652 90,462 1,052,669 NET INCOME 4,592 91,492 3,474 (13,112) 1,081 52,781 119,873 29,090 (18,853) 40,221 104,392 65,805 480,834 119 Schedule 6.3(M) Non-Accredited Investors NONE Exhibit 2.25 The Form 8-K Information This exhibit has been provided to AmeriNet's General Counsel and President under separate cover, and by their initials on the bottom of this page, such receipt is hereby acknowledged. No later than March 17, 2000 Vista Vacations, Inc., by and through their General Counsel will provide any additional information necessary for the timely filing of the Form 8-K that it is to filed with the Securities and Exchange Commission no later than March 27, 2000. Exhibit 5.8 Affiliate Agreements Signed Affiliate Agreements for the following persons are attached. 1. Teri E. Nadler 2. Scott Ugell 3. Ken Nelson & Carol Nelson 4. Jean Hickman 5. Alicia Torrealba 6. Karyn McKnight 7. Nellie Tippery Items 1-7 can be found as exhibit 10vv.20 through 10vv.26 of this Form 8-K. Exhibit 5.12 Employment Agreements 1. Teri E. Nadler 2. Scott Ugell 3. Jean Hickman 4. Alicia Torrealba 5. Karyn McKnight Items 1-5 can be found as exhibit 10vv.27 through 10vv.31 of this Form 8-K. 120 Exhibit 6.2(D) AmeriNet Legal Opinion 1. Legal Opinion by G. Richard Chamberlin, Esq. 2. Tax Opinion by G. Richard Chamberlin, Esq. AmeriNet Group.com, Inc. A publicly held Delaware corporation Michael Harris Jordan President & Chief Executive Officer Vanessa H. Lindsey Secretary G. Richard Chamberlin, Esquire Acting General Counsel Michael Harris Jordan G. Richard Chamberlin Anthony Q. Joffe Saul B. Lipson Edward C. Dmytryk Penny L. Adams Field J. Bruce Gleason Michael A. Caputa Carol A. Berardi Dennis A. Berardi ------ Board of Directors Wriwebs.com, Inc. 245 North Ocean Boulevard, Suite 201 Deerfield Beach, Florida 33441 Telephone (954) 360-0636; Fax (954) 943-4046 Web site and e-mail www.wriwebs.com --------------- Trilogy International, Inc. 526 Southeast Dixie Highway; Stuart, Florida 34494 Telephone (561) 781-7278; Fax (561) 781-7282 Web site and e-mail www.trilogyonline.com; ---------------------- Operating Subsidiaries 1941 Southeast 51st Terrace Ocala, Florida 34471 Telephone (352) 694-6714 Fax (352) 694-9178 e-mail, grichard@atlantic.net Crystal Corporate Center 2500 North Military Trail, Suite 225-C Boca Raton, Florida 33487 Telephone (561) 998-3435 Fax (561) 998-3425 e-mail webmaster@amerinetgroup.com Respond to Boca Raton address March 10, 2000 Teri Nadler, President Vista Vacations International, Inc. 5653 NW 29th Street Margate, Florida 33063 Fax (954-975-8447) Re: Opinion of Counsel Dear Ms. Nadler: We have acted as counsel to AmeriNet Group.com, Inc., a Delaware corporation ("AmeriNet") in connection with the Reorganization Agreement between AmeriNet, (the "Acquiror"), and Vista Vacation International, Inc. ("Vista Vacation") dated February 28, 2000. We are providing this opinion to you pursuant to Section 6.2(D) of the Reorganization Agreement. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Reorganization Agreement. A. Basis of Opinion In rendering the following options, we have reviewed copies of each of the following documents: 1. The Reorganization Agreement, including the disclosure schedules and exhibits thereto; 121 2. The Certificate of Incorporation, as amended, and the Bylaws of AmeriNet; 3. The Company is in Good Standing pursuant to Certificate of Good Standing issued by the Delaware Secretary of State, dated February 23, 2000; 4. Minutes of proceedings of the Board of Directors of AmeriNet with respect to the Reorganization Agreement duly adopted at a meeting of the Board of Directors of the AmeriNet held on February 24, 2000. 5. Minutes of proceedings of the Board of Directors of AmeriNet with respect to the form for the Vista Stockholder Affiliate Agreements duly adopted at a meeting of the Board of Directors of the AmeriNet held on March 8, 2000. 6. Certificate of Counsel for Vista Vacation dated as of the date of this letter; 7. Officers' representations found in the body of the Reorganization Agreement. 8. Such other agreements and documents and such matters of law as we have considered necessary or appropriate for the expression of the opinions contained herein. The Reorganization Agreement and the other documents and information referred to in this Section A are collectively referred to as the "Transaction Documents." B. Assumptions This opinion has been prepared and is to be construed in accordance with the Report on Standards for Florida Opinions dated April 8, 1991, as amended and supplemented, issued by the Business Law Section of the Florida Bar, 46 The Business Lawyer, No. 4 (the "Report"). The Report is incorporated by reference into this opinion letter. In rendering the following opinions, we have made no assumptions other than those set forth in the Report, the assumption that the Company complies with all laws and regulations relating to multi-level marketing, or those in the opinions below. C. Opinions Based solely upon our examination and consideration of the foregoing Transaction Documents, and in reliance thereon, and subject to the comments, assumptions, exceptions, qualifications and limitations set forth in the Report, we are of the opinion that: 1. AmeriNet is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware. AmeriNet is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where such qualification is required, and where, to our knowledge, the lack of such qualification would not have a material adverse effect on the financial condition of AmeriNet and its subsidiaries taken as a whole (a "Material Adverse Effect"). We do not pass upon qualification in any other state where the Agreement is void or voidable due to lack of qualification. 2. AmeriNet has the corporate power and authority to carry on the business in which it is engaged and to own and use the properties owned and used by it. 122 3. As of the date hereof, AmeriNet has two subsidiaries, Wriwebs.com, Inc., f/k/a American Internet Technical Center, Inc., a Florida corporation, and Trilogy International, Inc. a Florida corporation. AmeriNet is the sole stockholder of both subsidiaries.. 4. The authorized capital stock of AmeriNet consists of 20,000,000 shares of Common Stock and 5,000,000 of Preferred Stock, of which there are outstanding 10,663,460 shares of Common Stock shares of Common Stock and 0 shares of Preferred Stock. There are 5,876,814 shares of common stock reserved for future issuances. 5. All of the issued and outstanding shares of Common Stock have been duly authorized and are validly issued, fully paid, and nonassessable. 6. The Reorganization Agreement and the transactions contemplated thereby have been duly authorized by all necessary corporate action on the part of AmeriNet. AmeriNet has the full power and authority, corporate and otherwise, to execute and deliver the Reorganization Agreement and to assume and perform all of its obligations thereunder. The Reorganization Agreement has been duly executed and delivered by AmeriNet and constitutes a legal, valid, and binding obligation of AmeriNet, enforceable against AmeriNet in accordance with its terms. . 7. Neither the execution and the delivery of the Reorganization Agreement, nor the consummation of the transactions contemplated thereby, will (i) to our knowledge, violate any material statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which AmeriNet is subject (ii) violate any provision of the Certificate of Incorporation or Bylaws of AmeriNet or (iii) to our knowledge, 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 AmeriNet 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 the assets), except where the violation, conflict, breach, default, acceleration, termination, modification, cancellation, or failure to give notice would not have a Material Adverse Effect. Other than in connection with the provisions of the Florida Business Corporation Act, or as otherwise contemplated by the Reorganization Agreement, AmeriNet is not required 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 AmeriNet to consummate the transactions contemplated by the ReorganizationAgreement. 8. To our knowledge, no judgment is presently filed of record against AmeriNet and there is no litigation, arbitration, investigation, inquiry or other proceedings by or before any federal, state, county or other local governmental agency or authority, or by any other person or entity pending, or that would materially adversely affect AmeriNet's ability to perform its obligations as set forth in the Transaction Documents and we have no knowledge of any material basis for any such litigation, proceeding, arbitration, claim, investigation, inquiry or proceeding that would materially adversely affect AmeriNet; and 9. To the best of our knowledge after due inquiry, no representation, warranty or statement by AmeriNet in the Transaction Documents contains any untrue statement of a material fact, or omits or will omit to state a fact necessary in order to make such representations, warranties or statements not materially misleading. Without our prior written consent, this opinion letter may not be quoted in whole or in part or otherwise referred to in any document or report and may not be furnished to any person or entity including any governmental agency. Very truly yours AmeriNet Group.com, Inc. G. Richard Chamberlin, Esquire General Counsel cc: Michael H. Jordan Leonard M. Tucker 123 AmeriNet Group.com, Inc. A publicly held Delaware corporation Michael Harris Jordan President & Chief Executive Officer Vanessa H. Lindsey Secretary G. Richard Chamberlin, Esquire Acting General Counsel Michael Harris Jordan G. Richard Chamberlin Anthony Q. Joffe Saul B. Lipson Edward C. Dmytryk Penny L. Adams Field J. Bruce Gleason Michael A. Caputa Carol A. Berardi Dennis A. Berardi ------ Board of Directors Wriwebs.com, Inc. 245 North Ocean Boulevard, Suite 201 Deerfield Beach, Florida 33441 Telephone (954) 360-0636; Fax (954) 943-4046 Web site and e-mail www.wriwebs.com Trilogy International, Inc. 526 Southeast Dixie Highway; Stuart, Florida 34494 Telephone (561) 781-7278; Fax (561) 781-7282 Web site and e-mail www.trilogyonline.com; Operating Subsidiaries 1941 Southeast 51st Terrace Ocala, Florida 34471 Telephone (352) 694-6714 Fax (352) 694-9178 e-mail, grichard@atlantic.net Crystal Corporate Center 2500 North Military Trail, Suite 225-C Boca Raton, Florida 33487 Telephone (561) 998-3435 Fax (561) 998-3425 e-mail webmaster@amerinetgroup.com Respond to Boca Raton address March 10, 2000 Teri Nadler, President Vista Vacations International, Inc. 5653 NW 29th Street Margate, Florida 33063 Fax (954-975-8447) Re: Tax Opinion of Counsel Ladies and Gentlemen: We have acted as counsel to AmeriNet Group.com, Inc., a Delaware corporation ("AmeriNet") in connection with the Reorganization Agreement dated February 28, 2000, AmeriNet (Acquirer" or the "Parent"), wherein the Parent proposes to acquire Vista Vacations International, Inc. ("Vista Vacation) in conjunction with Code Section 368(a)(1)(B). In this transaction Vista Vacation will transfer 100% of the common and preferred stock of all stockholders of Vista Vacations to the Parent in exchange for common stock in the Parent. 124 If this transaction meets the statutory qualification as a tax free reorganization, the acquiring corporation and its subsidiary recognize no gain or loss upon the issuance of stock as consideration in the acquisition. The target's shareholders do not recognize gain or loss upon the exchange of stock and securities in the target corporation for stock and securities in the acquiring corporations, except to the extent that boot is received. The controlled subsidiary receives a carryover basis in the assets or stock of the target that is acquired. Statutory requirements for Section B Reorganizations A B reorganization, defined in Code Section 368(a)(1)(B), is an acquisition by one corporation, in exchange solely for its voting stock, of a controlling stock interest in another corporation. Control means ownership of stock of the acquired corporation possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote and at least 80 percent of the total number of shares of all other classes of stock of the acquired corporation. This reorganization transaction is defined in Section 368(a)(1)(B) of the Code as an acquisition by one corporation, in exchange solely for its voting stock, of a controlling stock interest in another. In this transaction, known as a B reorganization, the acquiring corporation becomes the parent of the acquired corporation and the acquired corporation becomes a subsidiary. Unlike a statutory merger or consolidation (an A reorganization) in which the assets of two or more corporations are combined into a single corporation, a B reorganization involves an acquisition of stock of one corporation by another. The statute defines a B reorganization as "the acquisition by one corporation, in exchange solely for all or a part of its voting stock (or in exchange solely for all or a part of the voting stock of a corporation which is in control of the acquiring corporation), of stock of another corporation, if immediately after the acquisition, the acquiring corporation has control of such other corporation (whether or not such acquiring corporation had control immediately before the acquisition). This definition will be satisfied and the exchanges it contemplates will be entitled to non recognition if all of the following conditions are met: (1) The acquiring corporation must acquire stock rather than assets. (2) As in other reorganizations, the acquisition must be made by a corporation. (3) The acquisition must be made in exchange solely for voting stock of the acquiring corporation or its parent. (4) The acquiring corporation must be in "control" of the acquired corporation immediately after the acquisition, whether or not the acquiring corporation possessed control of or owned an interest in the acquired corporation before the acquisition. 125 The term "control" means ownership of stock of the acquired corporation possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote and at least 80 percent of the total number of shares of all other classes of stock of the acquired corporation. 1) The Requirement That "Stock" of Another Corporation Be Acquired By a Corporation. The acquiring corporation must acquire stock rather than assets. In this instance, AmeriNet is acquiring 100% of the stock of Vista Vacations. There is no assets or boot accompanying the acquisition of stock. 2) The Requirement That "Stock" of Another Corporation Be Acquired By a Corporation In a B reorganization a corporation must acquire "stock" of another corporation. The acquiring corporation exchanges its voting stock, or the voting stock of its parent, for stock owned by the shareholders of the acquired corporation. In this instance, AmeriNet is exchanging its voting stock for 100% of the stock owned by the shareholders of Vista Vacations. 3. The Consideration That May Be Used Is Limited "Solely" to Voting Stock The consideration that may be used in a B reorganization is limited to voting stock of the acquiring corporation (or only the voting stock of a corporation under its "control"). "Voting stock" refers to stock of the acquiring corporation, the ownership of which entitles its holder to be present and to vote at stockholders' meetings. The courts have construed "voting stock" literally. In this instance only voting stock is subject to the transaction. If consideration other than voting stock is used, the transaction will no qualify as a B reorganization. In some circumstances, as, for example, where taxpayers desire recognition of losses, the strictness of the B reorganization definition may work to their advantage. In this instance there is no consideration other than voting stock. 4. Special Considerations Arising from the Solely-for-Voting-Stock Requirement In a B reorganization, where only voting stock is permissible consideration, questions arise as to the availability of B reorganization treatment where the acquiring corporation pays the incidental expenses of the acquisition, where it pays the cost of registering securities, or where there is a deferred stock payment and where there is a preliminary dividend or redemption. 126 Incidental expenses, including legal and accounting fees, appraisal fees and the like, may be paid directly or assumed by the acquiring corporation without violating the "solely for voting stock" requirement. However, expenses not solely and directly related to the reorganization cannot be paid or assumed by the acquiring corporation. In this instance, AmeriNet expenses not solely and directly related to the reorganization will not be paid or assumed by AmeriNet. The Service has ruled that B reorganization status will not be denied as a result of the payment by the acquiring corporation of the cost of registering its own stock which it issues to the stockholders of the acquired corporation. Where a deferred stock payment is tied to the future earnings of the acquired corporation, the transaction may, nonetheless, qualify, for ruling purposes, as a B reorganization where the deferral period is not more than five years, the maximum number of shares payable is stated in the plan, there is a business reason for the deferral, the initial distribution includes a least fifty percent of the shares issuable, the right to receive additional shares is non-assignable, and the additional shares issuable are those of the acquiring corporation or its parent. In this instance there is no deferred stock payment tied to future earnings i the reorganization agreement. Preliminary dividends and redemptions raise serious questions as to whether a transaction will qualify as a B reorganization. A dividend distributed to its shareholders by the acquired corporation prior to closing might be separate from the qualifying exchange. A redemption financed by the acquired corporation out of its own funds might also not affect reorganization treatment. However, the acquiring corporation cannot pay cash directly to the shareholders of the acquired corporation who seek redemption of their shares. In this instance, there are neither preliminary dividends or redemptions. Representations and warranties do not, in themselves, constitute additional, impermissible consideration. Generally, employment agreements with the former officers of the acquired corporation will not affect the qualification of a transaction as a B reorganization. The result would be otherwise if the employment agreement called for payments that did not bear a reasonable relationship to the work to be performed by the employee. In this instance, the employment agreement called for payments bear a reasonable relationship to the work to be performed by each signing employee. 127 Tax Treatment of "Parties to Reorganization" in a B Reorganization If an acquisition qualifies for tax free reorganization treatment, the parties to the reorganization are protected from the recognition of gain or loss by Section 361 and 1032. The controlled subsidiary receives a carryover basis in the acquired stock or assets. The subsidiary's parent receives a corresponding basis step-up in its stock in the subsidiary. If the acquisition qualifies as a tax free reorganization, neither of the corporate parties to the reorganization should be subject to the recognition of gain or loss, with two exceptions,. The acquiring corporation or it's controlled subsidiary may recognize gain or loss if appreciated property is used as consideration in the acquisition, I.R.C. Section 311(b). Also, the target corporation may recognize gain upon the distribution of appreciated property to its shareholders. I.R.C. Section 361(c). The issuance of stock and securities by either the parent corporation or its controlled subsidiary as consideration in exchange for property is protected form gain or loss recognition by Section 1032, and see Rev. Rul. 57-278, 1957-1 CB 124. The target corporation does not recognize gain or loss upon the distribution to its shareholders of stock or securities received from the acquirer or its subsidiary in the reorganization. I.R.C. Section 361(b)(3). The parent does not recognize gain or loss upon the acquiring of 80% or more of the stock of the subsidiary. The controlling corporation's basis in the subsidiaries stock will be the aggregate of the controlling corporation's basis in such stock prior to the transaction, the "net basis" (i.e. the basis net of liabilities) of property acquired from the target and the net basis of the property acquired by the controlled corporation from its parent which property is distributed to the target or to its shareholders in the transaction. Reg. Section 1.358-6(a)(5) ex.(1). Tax Treatment of Shareholders in a B Reorganization The subsidiary shareholders receive stock in the controlling corporation (plus, perhaps, other consideration in exchange for their stock in the target. If the stock and the securities received are stock and securities "in a corporation a party to a reorganization", the non-recognition provisions of Section 354 and Section 356 apply. I.R.C. Section 354(a). See Section 4.08(5)(a).. According to these provisions, stock and securities of the target may be exchanged solely for stock in the controlling corporation without the recognition of gain or loss. I.R.C. Section 354(a). If a shareholder receives securities with a greater principal amount then the securities given up in the exchange, the fair market value of such excess principal amount is treated as recognition property received by the shareholder. is treated as recognition of property received by the shareholders. I.R.C. Section 356(d). A shareholder recognizes gain to the extent of the amount of money and the fair market value of recognition property received in the exchange. I.R.C. Section 356(a)(2(1). If the exchange has the effect of a dividend distribution, any gain recognized will be taxed as ordinary income to the extent of the shareholder's share of the target corporation's earnings and profits. I.R.C. Section 356(a)(2). 128 The shareholder's bases in the stock, securities and other property received in the exchange will be governed by Section 358(a) which generally provides for fair market value bases for all recognition property and substituted bases for all non-recognition property, in the exchange and decrease by the fair market value of recognition property received in the exchange and by the amount of loss recognized, if any. I.R.C. Section 358(a). The basis of the Subsidiary's shares held by the controlling corporation will increase, generally by the net basis of the assets and the stock acquired. See Section 4.05(e). The controlling corporation will not experience any other tax consequences in its capacity as shareholder of the subsidiary, other than a change in value. Neither is the B reorganization a taxable event for the shareholders of the controlling corporation. Assumptions This opinion has been prepared and is to be construed in accordance with the Report on Standards for Florida Opinions dated April 8, 1991, as amended and supplemented, issued by the Business Law Section of the Florida Bar, 46 The Business Lawyer, No. 4 (the "Report"). The Report is incorporated by reference into this opinion letter. Opinions Based solely upon our examination and consideration of the Reorganization Agreement and the Representations made therein, and in reliance thereon, and subject to the comments, assumptions, exceptions, qualifications and limitations set forth in the Report, we are of the opinion that: To the best of our knowledge the contemplated transaction constitutes a reorganization within the meaning of Section 368 of the Code. Disclaimer Without our prior written consent, this opinion letter may not be quoted in whole or in part or otherwise referred to in any document or report and may not be furnished to any person or entity including any governmental agency. Very truly yours G. Richard Chamberlin, Esquire Interim General Counsel cc: Michael H. Jordan Leonard M. Tucker 129 Exhibit 6.2(E) Vista Vacations Legal Opinion 1. Legal Opinion by Scott Ugell, Esq. 2. Tax Opinion by Scott Ugell, Esq. Vista Vacations International Experience the Journey Ladies and Gentlemen: We have acted as counsel to Vista Vacations International, Inc ., a Florida corporation ("AmeriNet") in connection with the Reorganization Agreement between AmeriNet, (the "cquirer"), and Vista Vacation International, Inc. ("Vista Vacationsl") dated February 28, 2000. We are providing this opinion to you pursuant to Section 6.2(D) of the Merger Agreement. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Merger Agreement. A. Basis of Opinion In rendering the following options, we have reviewed copies of each of the following documents: 1. The Reorganization Agreement, including the disclosure schedules and exhibits thereto; 2. The Certificate of Incorporation, as amended, and the Bylaws of Vista Vacations International; 3. The Company is in Good Standing pursuant to Certificate of Good Standing issued by the Florida Secretary of State, dated February 24, 2000; 4. Minutes of proceedings of the Executive Committee of the Board of Directors of Vista Vacations International with respect to the Reorganization Agreement duly adopted at a meeting of the Board of Directors of the Vista Vacations International held on February 25, 2000 and Board resolution for February 25, 2000. 130 7. Certificate of Counsel for AmeriNet dated as of the date of this letter; 8. Officers' Certificate delivered to Counsel as of the date of this letter. 9. Such other agreements and documents and such matters of law as we have considered necessary or appropriate for the expression of the opinions contained herein. The Reorganization Agreement and the other documents and information referred to in this Section A are collectively referred to as the "Transaction Documents." B. Assumptions This opinion has been prepared and is to be construed in accordance with the Report on Standards for Florida Opinions dated April 8, 1991, as amended and supplemented, issued by the Business Law Section of the Florida Bar, 46 The Business Lawyer, No. 4 (the "Report"). The Report is incorporated by reference into this opinion letter. In rendering the following opinions, we have made no assumptions other than those set forth in the Report, the assumption that the Company complies with all laws and regulations relating to multi-level marketing, or those in the opinions below. C. Opinions Based solely upon our examination and consideration of the foregoing Transaction Documents, and in reliance thereon, and subject to the comments, assumptions, exceptions, qualifications and limitations set forth in the Report, we are of the opinion that: 1. Vista Vacations International, Inc is a corporation duly organized, validly existing, and in good standing under the laws of the State of Florida. Vista Vacations International, Inc is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where such qualification is required, and where, to our knowledge, the lack of such qualification would not have a material adverse effect on the financial condition of Vista Vacations International and its subsidiaries taken as a whole (a "Material Adverse Effect"). We do not pass upon qualification in any other state where the Agreement is void or voidable due to lack of qualification. 2. Vista Vacations International, Inc has the corporate power and authority to carry on the business in which it is engaged and to own and use the properties owned and used by it. 131 3. As of the date hereof, Vista Vacations International, Inc has no subsidiaries. 4. The authorized capital stock of Vista Vacations International, Inc consists of 1,500 shares of Common Stock and no Preferred Stock, of which there are outstanding 1,500 shares of Common Stock. There are no shares of common stock reserved for future issuances. 5. All of the issued and outstanding shares of Common Stock have been duly authorized and are validly issued, fully paid, and non assessable. Except as set forth in the Reorganization Agreement, to our knowledge there are no outstanding Options, Warrants, or other outstanding or authorized purchase rights, subscription rights, conversion rights, exchange rights, or other contracts or commitments that could require Vista Vacations International, Inc to issue, sell, or otherwise cause to become outstanding any shares of its capital stock. To our knowledge, there are no outstanding or authorized stock appreciation, phantom stock, profit participation, or similar rights with respect to Vista Vacations International, Inc. 6. The Reorganization Agreement and the transactions contemplated thereby have been duly authorized by all necessary corporate action on the part of Vista Vacations International, Inc. Vista Vacations International, Inc has the full power and authority, corporate and otherwise, to execute and deliver the Reorganization Agreement and to assume and perform all of its obligations thereunder. The Reorganization Agreement has been duly executed and delivered by Vista Vacations International, Inc and constitutes a legal, valid, and binding obligation of Vista Vacations International, Inc enforceable against Vista Vacations International, Inc in accordance with its terms. . 132 7. Neither the execution and the delivery of the Reorganization Agreement, nor the consummation of the transactions contemplated thereby, will (i) to our knowledge, violate any material statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which Vista Vacations International, Inc is subject (ii) violate any provision of the Certificate of Incorporation or Bylaws of Vista Vacations International, Inc or (iii) to our knowledge, 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 Vista Vacations International, Inc 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 the assets), except where the violation, conflict, breach, default, acceleration, termination, modification, cancellation, or failure to give notice would not have a Material Adverse Effect. Other than in connection with the provisions of the Florida Business Corporation Act, or as otherwise contemplated by the Merger Agreement, Vista Vacations International, Inc is not required 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 Vista Vacations International, Inc to consummate the transactions contemplated by the Merger Agreement. 8. To our knowledge, no judgment is presently filed of record against Vista Vacations International, Inc and there is no litigation, arbitration, investigation, inquiry or other proceedings by or before any federal, state, county or other local governmental agency or authority, or by any other person or entity pending, or that would materially adversely affect Vista Vacations International, Inc ability to perform its obligations as set forth in the Transaction Documents and we have no knowledge of any material basis for any such litigation, proceeding, arbitration, claim, investigation, inquiry or proceeding that would materially adversely affect Vista Vacations International Inc.; and 9. To the best of our knowledge after due inquiry, no representation, warranty or statement by Vista Vacations International, Inc in the Transaction Documents contains any untrue statement of a material fact, or omits or will omit to state a fact necessary in order to make such representations, warranties or statements not materially misleading. 10. To the extent that the preparer of this opinion has used a similar form of opinion of that of AmeriNetGroup.com's Counsel, the preparer did not in any way relay on AmeriNetGoup.com's counsel opinion to make any conclusions herein 11. Furthermore, the preparer of this opinion has done his own research, and has applicable additions and modifications where necessary. Without our prior written consent, this opinion letter may not be quoted in whole or in part or otherwise referred to in any document or report and may not be furnished to any person or entity including any governmental agency. Very truly yours Vista Vacations International, Inc. /s/ Scott B. Ugell Scott B. Ugell, Esquire General Counsel 133 Ugell Law Firm , P.C. 155 North main Street New City, New York 10956 Tel (914) 639-7011 Fax (914) 639-7088 Re: Vista Vacations International, Inc. Ladies and Gentlemen: We have acted as counsel to Vista Vacations International, Inc., a Florida corporation ("Vista") in connection with the Reorganization Agreement dated February 28, 2000, Vista, (Acquired" or the subsidiary"), wherein the Parent , Amerinet group.com, Inc. proposes to acquire Vista Vacations International, Inc. ("Vista Vacation) in conjunction with Code Section 368(a)(1)(B). In this transaction Vista Vacation will transfer 100% of the common and preferred stock of all stockholders of Vista Vacations to the Parent in exchange for common stock in the Parent. If this transaction meets the statutory qualification as a tax free reorganization, the acquiring corporation and its subsidiary recognize no gain or loss upon the issuance of stock as consideration in the acquisition. The target's shareholders do not recognize gain or loss upon the exchange of stock and securities in the target corporation for stock and securities in the acquiring corporations, except to the extent that boot is received. The controlled subsidiary receives a carryover basis in the assets or stock of the target that is acquired. Statutory requirements for Section B Reorganizations A B reorganization, defined in Code Section 368(a)(1)(B), is an acquisition by one corporation, in exchange solely for its voting stock, of a controlling stock interest in another corporation. Control means ownership of stock of the acquired corporation possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote and at least 80 percent of the total number of shares of all other classes of stock of the acquired corporation. This reorganization transaction is defined in Section 368(a)(1)(B) of the Code as an acquisition by one corporation, in exchange solely for its voting stock, of a controlling stock interest in another. In this transaction, known as a B reorganization, the acquiring corporation becomes the parent of the acquired corporation and the acquired corporation becomes a subsidiary. Unlike a statutory merger or consolidation (an A reorganization) in which the assets of two or more corporations are combined into a single corporation, a B reorganization involves an acquisition of stock of one corporation by another. The statute defines a B reorganization as "the acquisition by one corporation, in exchange solely for all or a part of its voting stock (or in exchange solely for all or a part of the voting stock of a corporation which is in control of the acquiring corporation), of stock of another corporation, if immediately after the acquisition, the acquiring corporation has control of such other corporation (whether or not such acquiring corporation had control immediately before the acquisition). 134 This definition will be satisfied and the exchanges it contemplates will be entitled to non recognition if all of the following conditions are met: (1) The acquiring corporation must acquire stock rather than assets. (2) As in other reorganizations, the acquisition must be made by a corporation. (3) The acquisition must be made in exchange solely for voting stock of the acquiring corporation or its parent. (4) The acquiring corporation must be in "control" of the acquired corporation immediately after the acquisition, whether or not the acquiring corporation possessed control of or owned an interest in the acquired corporation before the acquisition. The term "control" means ownership of stock of the acquired corporation possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote and at least 80 percent of the total number of shares of all other classes of stock of the acquired corporation. 1) The Requirement That "Stock" of Another Corporation Be Acquired By a Corporation. The acquiring corporation must acquire stock rather than assets. In this instance, AmeriNet is acquiring 100% of the stock of Vista Vacations. There is no assets or boot accompanying the acquisition of stock. 2) The Requirement That "Stock" of Another Corporation Be Acquired By a Corporation In a B reorganization a corporation must acquire "stock" of another corporation. The acquiring corporation exchanges its voting stock, or the voting stock of its parent, for stock owned by the shareholders of the acquired corporation. In this instance, AmeriNet is exchanging its voting stock for 100% of the stock owned by the shareholders of Vista Vacations. 3. The Consideration That May Be Used Is Limited "Solely" to Voting Stock The consideration that may be used in a B reorganization is limited to voting stock of the acquiring corporation (or only the voting stock of a corporation under its "control"). "Voting stock" refers to stock of the acquiring corporation, the ownership of which entitles its holder to be present and to vote at stockholders' meetings. The courts have construed "voting stock" literally. In this instance only voting stock is subject to the transaction. If consideration other than voting stock is used, the transaction will not qualify as a B reorganization. In some circumstances, as, for example, where taxpayers desire recognition of losses, the strictness of the B reorganization definition may work to their advantage. In this instance there is no consideration other than voting stock. 4. Special Considerations Arising from the Solely-for-Voting-Stock Requirement In a B reorganization, where only voting stock is permissible consideration, questions arise as to the availability of B reorganization treatment where the acquiring corporation pays the incidental expenses of the acquisition, where it pays the cost of registering securities, or where there is a deferred stock payment and where there is a preliminary dividend or redemption. Incidental expenses, including legal and accounting fees, appraisal fees and the like, may be paid directly or assumed by the acquiring corporation without violating the "solely for voting stock" requirement. However, expenses not solely and directly related to the reorganization cannot be paid or assumed by the acquiring corporation. In this instance, AmeriNet expenses not solely and directly related to the reorganization will not be paid or assumed by AmeriNet. 135 The Service has ruled that B reorganization status will not be denied as a result of the payment by the acquiring corporation of the cost of registering its own stock which it issues to the stockholders of the acquired corporation. Where a deferred stock payment is tied to the future earnings of the acquired corporation, the transaction may, nonetheless, qualify, for ruling purposes, as a B reorganization where the deferral period is not more than five years, the maximum number of shares payable is stated in the plan, there is a business reason for the deferral, the initial distribution includes a least fifty percent of the shares issuable, the right to receive additional shares is non-assignable, and the additional shares issuable are those of the acquiring corporation or its parent. In this instance there is no deferred stock payment tied to future earnings in the reorganization agreement. Preliminary dividends and redemptions raise serious questions as to whether a transaction will qualify as a B reorganization. A dividend distributed to its shareholders by the acquired corporation prior to closing might be separate from the qualifying exchange. A redemption financed by the acquired corporation out of its own funds might also not affect reorganization treatment. However, the acquiring corporation cannot pay cash directly to the shareholders of the acquired corporation who seek redemption of their shares. In this instance, there are neither preliminary dividends or redemptions. Representations and warranties do not, in themselves, constitute additional, impermissible consideration. Generally, employment agreements with the former officers of the acquired corporation will not affect the qualification of a transaction as a B reorganization. The result would be otherwise if the employment agreement called for payments that did not bear a reasonable relationship to the work to be performed by the employee. In this instance, the employment agreement called for payments bear a reasonable relationship to the work to be performed by each signing employee. Tax Treatment of "Parties to Reorganization" in a B Reorganization If an acquisition qualifies for tax free reorganization treatment, the parties to the reorganization are protected from the recognition of gain or loss by Section 361 and 1032. The controlled subsidiary receives a carryover basis in the acquired stock or assets. The subsidiary's parent receives a corresponding basis step-up in its stock in the subsidiary. If the acquisition qualifies as a tax free reorganization, neither of the corporate parties to the reorganization should be subject to the recognition of gain or loss, with two exceptions,. The acquiring corporation or it's controlled subsidiary may recognize gain or loss if appreciated property is used as consideration in the acquisition, I.R.C. Section 311(b). Also, the target corporation may recognize gain upon the distribution of appreciated property to its shareholders. I.R.C. Section 361(c). 136 The issuance of stock and securities by either the parent corporation or its controlled subsidiary as consideration in exchange for property is protected form gain or loss recognition by Section 1032, and see Rev. Rul. 57-278, 1957-1 CB 124. The target corporation does not recognize gain or loss upon the distribution to its shareholders of stock or securities received from the acquirer or its subsidiary in the reorganization. I.R.C. Section 361(b)(3). The parent does not recognize gain or loss upon the acquiring of 80% or more of the stock of the subsidiary. The controlling corporation's basis in the subsidiaries stock will be the aggregate of the controlling corporation's basis in such stock prior to the transaction, the "net basis" (i.e. the basis net of liabilities) of property acquired from the target and the net basis of the property acquired by the controlled corporation from its parent which property is distributed to the target or to its shareholders in the transaction. Reg. Section 1.358-6(a)(5) ex.(1). Tax Treatment of Shareholders in a B Reorganization The subsidiary shareholders receive stock in the controlling corporation (plus, perhaps, other consideration in exchange for their stock in the target. If the stock and the securities received are stock and securities "in a corporation a party to a reorganization", the non-recognition provisions of Section 354 and Section 356 apply. I.R.C. Section 354(a). See Section 4.08(5)(a).. According to these provisions, stock and securities of the target may be exchanged solely for stock in the controlling corporation without the recognition of gain or loss. I.R.C. Section 354(a). If a shareholder receives securities with a greater principal amount then the securities given up in the exchange, the fair market value of such excess principal amount is treated as recognition property received by the shareholder. is treated as recognition of property received by the shareholders. I.R.C. Section 356(d). A shareholder recognizes gain to the extent of the amount of money and the fair market value of recognition property received in the exchange. I.R.C. Section 356(a)(2(1). If the exchange has the effect of a dividend distribution, any gain recognized will be taxed as ordinary income to the extent of the shareholder's share of the target corporation's earnings and profits. I.R.C. Section 356(a)(2). The shareholder's bases in the stock, securities and other property received in the exchange will be governed by Section 358(a) which generally provides for fair market value bases for all recognition property and substituted bases for all non-recognition property, in the exchange and decrease by the fair market value of recognition property received in the exchange and by the amount of loss recognized, if any. I.R.C. Section 358(a). The basis of the Subsidiary's shares held by the controlling corporation will increase, generally by the net basis of the assets and the stock acquired. See Section 4.05(e). The controlling corporation will not experience any other tax consequences in its capacity as shareholder of the subsidiary, other than a change in value. Neither is the B reorganization a taxable event for the shareholders of the controlling corporation. Assumptions This opinion has been prepared and is to be construed in accordance with the Report on Standards for Florida Opinions dated April 8, 1991, as amended and supplemented, issued by the Business Law Section of the Florida Bar, 46 The Business Lawyer, No. 4 (the "Report"). The Report is incorporated by reference into this opinion letter. Opinions Based solely upon our examination and consideration of the Reorganization Agreement and the Representations made therein, and in reliance thereon, and subject to the comments, assumptions, exceptions, qualifications and limitations set forth in the Report, we are of the opinion that: To the best of our knowledge the contemplated transaction constitutes a reorganization within the meaning of Section 368 of the Code. Disclaimer Without our prior written consent, this opinion letter may not be quoted in whole or in part or otherwise referred to in any document or report and may not be furnished to any person or entity including any governmental agency. Very truly yours Vista Vacations International, Inc. /s/ Scott B. Ugell Scott B. Ugell, Esquire Vice President and General Counsel 137 Exhibit 6.3(L) Confidentiality Agreements 1. Karyn McKnight 2. Trevor Grafflin 3. Jay Lovins Items 1-3 can be found as exhibit 10vv.32 and 10vv.34 of this Form 8-K. Exhibit 7.2(A) Escrow Allocation Agreement To be provided by Scott B. Ugell, Esquire no later than 5:00 p.m. on March 20, 2000. Dear Richard, As per your request and following Scott Ugells instructions. Please find below the requests for the 7.2 and 7.4 of the Reorganization Agreeemnts on the distribution of shares. The rest will follow. 220,000 Shares Teri Nadler 112,200 51% Scott Ugell 58,674 26.67% Jean Hickman 26,400 12% Ken Nelson 11,000 5% Alicia Torrealba 8,800 4% Karyn McKnight 2,926 1.33% --------- --------- 220,000 100% /s/ Alicia Torrealba 138