EXHIBIT 2.1
STOCK PURCHASE AGREEMENT
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THIS STOCK PURCHASE AGREEMENT (the "Agreement") is dated the 15th day of
January, 2004 by and among 12 to 20 PLUS, INC., a Nevada corporation (the
"Buyer"), H. BANA LTD., a Delaware corporation (the "Company") and the
shareholders of the Company (collectively the "Shareholders").
WHEREAS, Shareholders desire to exchange with Buyer, and Buyer desires to
exchange with Shareholders, all of the issued and outstanding shares of capital
stock of the Company from Shareholders for the consideration and upon the terms
and subject to the conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the premises, the provisions and the
respective agreements hereinafter set forth, the parties hereto hereby agree as
follows:
1. Purchase and Sale of Stock.
1.1 Agreement to Purchase and Sell. Upon the terms and subject to the
conditions set forth in this Agreement and upon the representations and
warranties made herein by each of the parties to the other, on the Closing
Date (as such term is hereinafter defined), Company shall cause its
Shareholders to exchange and deliver to Buyer, and Buyer shall acquire from
Shareholders, all of the issued and outstanding shares of capital stock of
the Company (the "Company Shares"). The exact number of Company Shares to
be exchanged by Shareholders hereunder is 10,000 common shares, $.001 par
value per share.
1.2 Purchase Price. Upon the terms and subject to the conditions set forth
in this Agreement, in reliance upon the representations, warranties,
covenants and agreements of the Company made on behalf of its Shareholders
contained herein, and in exchange for the Company Shares, Buyer agrees to
deliver to Shareholders a total of 3,000,000 shares of the common stock of
Buyer ("Buyer's Shares") to be distributed to the Shareholders based upon
their respective pro rata percentage interest in the Company (the "Purchase
Price"). Upon the consummation of the transaction, the Company shall be a
wholly-owned subsidiary of Buyer.
1.3 Payment of Purchase Price. The Purchase Price shall be payable on the
Closing Date.
1.4 Closing. The closing of the transaction contemplated herein (the
"Closing") will be at the office of Buyer on or before March 22, 2004, or
at such other place or at such other date and time as Shareholders and
Buyer may mutually agree. Such date and time of Closing is herein referred
to as the "Closing Date."
2. Representations and Warranties of Shareholders. The Company, on behalf of
its Shareholders, represents and warrants to Buyer as follows:
2.1 Existence and Good Standing. The Company is a corporation duly
incorporated, validly existing and in good standing under the laws of the
State of Delaware. The Company is duly licensed or qualified to do business
as a foreign corporation and is in good standing under the laws of all
other jurisdictions in which the character of the properties owned or
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leased by it therein or in which the transaction of its business makes such
qualification necessary.
2.2 Corporate Authority. The Company has all requisite corporate power and
authority to own its properties and carry on its business as now conducted.
2.3 Compliance with Law. The Company is not in default with respect to any
order of any court, governmental authority or arbitration board or tribunal
to which the Company is a party or is subject, and the Company is not in
violation of any laws, ordinances, governmental rules or regulations to
which it is subject. The Company has obtained all licenses, permits and
other authorizations and has taken all actions required by applicable laws
or governmental regulations in connection with its business as now
conducted.
2.4 Validity and Effect of Agreements. This Agreement constitutes, and all
agreements and documents contemplated hereby when executed and delivered
pursuant hereto will constitute, the valid and legally binding obligations
of the Company and Shareholders enforceable in accordance with their terms,
except that enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, fraudulent transfer, moratorium or other
similar laws of general application now or hereafter in effect relating to
the enforcement of creditors' rights generally and except that the remedies
of specific performance, injunction and other forms of equitable relief are
subject to certain tests of equity jurisdiction, equitable defenses and the
discretion of the court before which any proceeding therefor may be
brought.
3. Representations and Warranties of Buyer. Buyer represents and warrants to
Shareholders as follows:
3.1 Existence and Good Standing. Buyer is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of
Nevada. Buyer is duly licensed or qualified to do business as a foreign
corporation and is in good standing under the laws of all other
jurisdictions in which the character of the properties owned or leased by
it therein or in which the transaction of its business makes such
qualification necessary.
3.2 Corporate Authority. Buyer has all requisite corporate power and
authority to own its properties and carry on its business as now conducted.
3.3 Compliance with Law. Buyer is not in default with respect to any order
of any court, governmental authority or arbitration board or tribunal to
which Buyer is a party or is subject, and Buyer is not in violation of any
laws, ordinances, governmental rules or regulations to which it is subject.
Buyer has obtained all licenses, permits or other authorizations and has
taken all actions required by applicable laws or governmental regulations
in connection with its business as now conducted.
3.4 Authorization; Validity and Effect of Agreements. The execution and
delivery of this Agreement and all agreements and documents contemplated
hereby by Buyer, and the consummation by it of the transactions
contemplated hereby, have been duly authorized by all requisite corporate
action. This Agreement constitutes, and all agreements and documents
contemplated hereby when executed and delivered pursuant hereto will
constitute, the valid and legally binding obligations of Buyer enforceable
in accordance with their terms, except that enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, fraudulent transfer,
moratorium or other similar laws of general application now or hereafter in
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effect relating to the enforcement of creditors' rights generally and
except that the remedies of specific performance, injunction and other
forms of equitable relief are subject to certain tests of equity
jurisdiction, equitable defenses and the discretion of the court before
which any proceeding therefor may be brought. The execution and delivery of
this Agreement by Buyer does not and the consummation of the transactions
contemplated hereby will not (i) require the consent of any third party,
(ii) result in the breach of any term or provision of, or constitute a
default under, or result in the acceleration of or entitle any party to
accelerate (whether after the giving of notice or the lapse of time or
both) any obligation under, or result in the creation or imposition of any
lien, charge, pledge, security interest or other encumbrance upon any part
of the property of the Company pursuant to any provision of, any order,
judgment, arbitration award, injunction, decree, indenture, mortgage,
lease, license, lien, or other agreement or instrument to which Buyer is a
party or by which it is bound, and (iii) violate or conflict with any
provision of the by-laws or articles of incorporation of Buyer as amended
to the date of this Agreement.
4. Conditions of Closing.
4.1 Buyer's Conditions of Closing. The obligation of Buyer to purchase and
pay for the Company Shares shall be subject to and conditioned upon the
satisfaction (or waiver by Buyer) at the Closing of each of the following
conditions:
(A) All representations and warranties of Shareholders contained in
this Agreement and the Schedules hereto shall be true and correct at and as
of the Closing Date, Shareholders shall have performed all agreements and
covenants and satisfied all conditions on its part to be performed or
satisfied by the Closing Date pursuant to the terms of this Agreement, and
Buyer shall have received a certificate of the Shareholders dated the
Closing Date to such effect.
(B) Shareholders shall have delivered to Buyer certificates and other
instruments representing all Company Shares, duly endorsed for transfer or
accompanied by appropriate stock powers (in either case executed in blank
or in favor of Buyer with the execution thereof guaranteed by a bank or
trust company), together with all other documents necessary or appropriate
to validly transfer the Company Shares to Buyer free and clear of all
security interests, liens, encumbrances and adverse claims.
(C) Neither any investigation of the Company by Buyer, nor the
Schedules attached hereto or any supplement thereto nor any other document
delivered to Buyer as contemplated by this Agreement, shall have revealed
any facts or circumstances which, in the sole and exclusive judgment of
Buyer and regardless of the cause thereof, reflect in an adverse way on the
Company or its financial condition, assets, liabilities (absolute, accrued,
contingent or otherwise), reserves, business, operations or prospects.
(D) The approval and all consents from third parties and governmental
agencies required to consummate the transactions contemplated hereby shall
have been obtained.
(E) No suit, action, investigation, inquiry or other proceeding by any
governmental body or other person or legal or administrative proceeding
shall have been instituted or threatened which questions the validity or
legality of the transactions contemplated hereby.
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(F) As of the Closing, there shall be no effective injunction, writ,
preliminary restraining order or any order of any nature issued by a court
of competent jurisdiction directing that the transactions provided for
herein or any of them not be consummated as so provided or imposing any
conditions on the consummation of the transactions contemplated hereby,
which is unduly burdensome on Buyer.
(G) As of the Closing, there shall have been no material adverse
change in the amount of issued and outstanding common stock of the Company.
4.2 Shareholders's Conditions of Closing. The obligation of Shareholders to
sell the Company Shares shall be subject to and conditioned upon the
satisfaction (or waiver by Shareholders) at the Closing of each of the
following conditions:
(A) All representations and warranties of Buyer contained in this
Agreement shall be true and correct at and as of the Closing Date and Buyer
shall have performed all agreements and covenants and satisfied all
conditions on its part to the performed or satisfied by the Closing Date
pursuant to the terms of this Agreement, and Shareholders shall have
received a certificate of Buyer dated the Closing Date to such effect.
(B) Buyer shall have effected payment of the Purchase Price in
accordance with Section 1.3 of this Agreement by delivering to Shareholders
certificates and other instruments representing Buyer's Shares, duly
endorsed for transfer or accompanied by appropriate stock powers (in either
case executed in blank or in favor of Shareholders with the execution
thereof guaranteed by a bank or trust company), together with all other
documents necessary or appropriate to validly transfer the Buyer's Shares
to Shareholders free and clear of all security interests, liens,
encumbrances and adverse claims.
(C) The approval and all consents from third parties and governmental
agencies required to consummate the transactions contemplated hereby shall
have been obtained.
(D) No suit, action, investigation, inquiry or other proceeding by any
governmental body or other person or legal or administrative proceeding
shall have been instituted or threatened which questions the validity or
legality of the transactions contemplated hereby.
(E) As of the Closing, there shall be no effective injunction, writ,
preliminary restraining order or any order of any nature issued by a court
of competent jurisdiction directing that the transactions provided for
herein or any of them not be consummated as so provided or imposing any
conditions on the consummation of the transactions contemplated hereby,
which is unduly burdensome on Shareholders.
(G) As of the Closing, there shall have been no material adverse
change in the amount of issued and outstanding common stock of Buyer.
5. Termination.
5.1 Methods of Termination. The transactions contemplated herein may be
terminated and/or abandoned at any time before or after approval thereof by
Shareholders and Buyer, but not later than the Closing:
5.1.1 By mutual consent of Buyer and Shareholders; or
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5.1.2 By Buyer, if any of the conditions provided for in Section 4.1
hereof shall not have been met or waived in writing by Buyer at or prior to
Closing; or
5.1.3 By Shareholders, if any of the conditions provided for in
Section 4.2 hereof shall not have been met or waived in writing by
Shareholders at or prior to Closing.
5.2 Procedure Upon Termination. In the event of termination by Buyer or
Shareholders, as applicable, pursuant to Section 5.1 hereof, written notice
thereof shall forthwith be given to the other party and the transactions
contemplated by this Agreement shall be terminated without further action
by Buyer or Shareholders. If the transactions contemplated by this
Agreement are so terminated:
5.2.1 Each party will redeliver all documents, work papers and other
material of any other party relating to the transactions contemplated
hereby, whether so obtained before or after the execution of this
Agreement, to the party furnishing the same; and
5.2.2 No party hereto shall have any liability or further obligation
to any other party to this Agreement.
6. Miscellaneous.
6.1 Notice. Any notice required or permitted hereunder shall be in writing
and shall be sufficiently given if personally delivered or mailed by
certified or registered mail, return receipt requested, addressed as
follows:
If to Buyer: 12 to 20 Plus, Inc.
C/o The O'Neal Law Firm, P.C.
668 North 44th Street
Suite 233
Phoenix, Arizona 85008
Attention: William D. O'Neal, Esq.
If to Charles Jay Smith
Company/ Venture Capital Resources Ltd.
Shareholders: 4790 Caughlin Parkway
Reno, Nevada 89509
(or to such other address as any party shall specify by written notice so
given), and shall be deemed to have been delivered as of the date so
personally delivered or mailed.
6.2 Execution of Additional Documents. The parties hereto will at any time,
and from time to time after the Closing Date, upon request of the other
party, execute, acknowledge and deliver all such further acts, deeds,
assignments, transfers, conveyances, powers of attorney and assurances as
may be reasonably required to carry out the intent of this Agreement, and
to transfer and vest title to any Company Shares being transferred
hereunder, and to protect the right, title and interest in and enjoyment of
all of the Company Shares sold, granted, assigned, transferred, delivered
and conveyed pursuant to this Agreement; provided, however, that this
Agreement shall be effective regardless of whether any such additional
documents are executed.
6.3 Binding Effect; Benefits. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
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heirs, successors, executors, administrators and assigns. Notwithstanding
anything contained in this Agreement to the contrary, nothing in this
Agreement, expressed or implied, is intended to confer on any person other
than the parties hereto or their respective heirs, successors, executors,
administrators and assigns any rights, remedies, obligations or liabilities
under or by reason of this Agreement.
6.4 Entire Agreement. This Agreement, together with the Exhibits, Schedules
and other documents contemplated hereby, constitute the final written
expression of all of the agreements between the parties, and is a complete
and exclusive statement of those terms. It supersedes all understandings
and negotiations concerning the matters specified herein. Any
representations, promises, warranties or statements made by either party
that differ in any way from the terms of this written Agreement and the
Exhibits, Schedules and other documents contemplated hereby, shall be given
no force or effect. The parties specifically represent, each to the other,
that there are no additional or supplemental agreements between them
related in any way to the matters herein contained unless specifically
included or referred to herein. No addition to or modification of any
provision of this Agreement shall be binding upon any party unless made in
writing and signed by all parties.
6.5 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Nevada exclusive of the conflict
of law provisions thereof.
6.6 Survival. All of the terms, conditions, warranties and representations
contained in this Agreement shall survive the Closing.
6.7 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original but all of which
shall constitute one and the same instrument.
6.8 Headings. Headings of the Articles and Sections of this Agreement are
for the convenience of the parties only, and shall be given no substantive
or interpretive effect whatsoever.
6.9 Waivers. Either Buyer or Shareholders may, by written notice to the
other, (i) extend the time for the performance of any of the obligations or
other actions of the other under this Agreement; (ii) waive any
inaccuracies in the representations or warranties of the other contained in
this Agreement or in any document delivered pursuant to this Agreement;
(iii) waive compliance with any of the conditions or covenants of the other
contained in this Agreement; or (iv) waive performance of any of the
obligations of the other under this Agreement. Except as provided in the
preceding sentence, no action taken pursuant to this Agreement, including
without limitation any investigation by or on behalf of any party, shall be
deemed to constitute a waiver by the party taking such action of compliance
with any representations, warranties, covenants or agreements contained in
this Agreement. The waiver by any party hereto of a breach of any provision
hereunder shall not operate or be construed as a waiver of any prior or
subsequent breach of the same or any other provision hereunder.
6.10 Merger of Documents. This Agreement and all agreements and documents
contemplated hereby constitute one agreement and are interdependent upon
each other in all respects.
6.11 Severability. If for any reason whatsoever, any one or more of the
provisions of this Agreement shall be held or deemed to be inoperative,
unenforceable or invalid as applied to any particular case or in all cases,
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such circumstances shall not have the effect of rendering such provision
invalid in any other case or of rendering any of the other provisions of
this Agreement inoperative, unenforceable or invalid.
6.12 Assignability. Neither this Agreement nor any of the parties' rights
hereunder shall be assignable by any party hereto without the prior written
consent of the other parties hereto.
IN WITNESS WHEREOF, the parties have executed this Agreement and caused the
same to be duly delivered on their behalf on the day and year first above
written.
SHAREHOLDERS:
By: /s/Daniel W. Tennant
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Daniel W. Tennant
COMPANY:
H. BANA LTD., a Delaware corporation
By: /s/Daniel W. Tennant
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Daniel W. Tennant, it President
BUYER:
12 TO 20 PLUS, INC., a Nevada corporation
By: /s/ Carol Slavin
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Carol Slavin, its President
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