SHARE EXCHANGE AGREEMENT
by and between
BCS INVESTMENT CORPORATION
and
the shareholders of
AUTOVENU, INC.
Dated as of September 25, 2000
TABLE OF CONTENTS
PAGE
THE SHARE EXCHANGE................................................................................................1
1.1 The Share Exchange..............................................................................1
1.2 Effective Date..................................................................................1
1.3 Exchange of AutoVenu Common Stock...............................................................1
1.4 Exchange of Certificates........................................................................2
1.5 Reporting of Share Exchange.....................................................................2
1.6 Board of Directors of BCS.......................................................................2
THE CLOSING.......................................................................................................2
2.1 Time and Place of Closing.......................................................................2
2.2 Obligations of the AutoVenu Shareholders at or Prior to the Closing.............................2
2.3 Obligations of BCS at or Prior to the Closing...................................................3
REPRESENTATIONS AND WARRANTIES OF THE AUTOVENU SHAREHOLDERS.......................................................3
3.1 Organization and Qualification..................................................................3
3.2 Capitalization..................................................................................4
3.3 Subsidiaries and Affiliates.....................................................................4
3.4 Options or Other Rights.........................................................................4
3.5 Ownership of Shares.............................................................................4
3.6 Validity and Execution of Agreement.............................................................4
3.7 No Conflict.....................................................................................4
3.8 Consents and Approvals..........................................................................5
3.9 Violation of Laws, Permits, etc.................................................................5
3.10 Books and Records...............................................................................5
3.11 AutoVenu Financial Statements...................................................................5
3.12 Undisclosed Liabilities.........................................................................6
3.13 Title to Property; Encumbrances.................................................................6
3.14 Taxes...........................................................................................6
3.15 Litigation......................................................................................7
3.16 Contracts and Other Agreements..................................................................7
3.17 Accounts Receivable and Accounts Payable........................................................7
3.18 Compensation Arrangements; Officers, Directors and Employees....................................8
3.19 ERISA...........................................................................................8
3.20 Operations......................................................................................8
3.21 Intangible Property and Intellectual Property..................................................10
3.22 Employee Relations.............................................................................10
3.23 Insurance......................................................................................10
3.24 Licenses and Permits...........................................................................11
3.25 Year 2000 Compliance...........................................................................11
3.26 Brokers........................................................................................11
3.27 Acquisition of BCS Shares......................................................................11
3.28 Disclosure.....................................................................................12
REPRESENTATIONS AND WARRANTIES OF BCS............................................................................12
4.1 Organization and Qualification.................................................................12
4.2 Capitalization.................................................................................12
4.3 Subsidiaries and Affiliates....................................................................12
4.4 Options or Other Rights........................................................................12
4.5 Validity and Execution of Agreement............................................................13
4.6 No Conflict....................................................................................13
4.7 Consents and Approvals.........................................................................13
4.8 Violation of Laws, Permits, etc................................................................13
4.9 Books and Records..............................................................................13
4.10 BCS Financial Statements.......................................................................14
4.11 Undisclosed Liabilities........................................................................14
4.12 Title to Property; Encumbrances................................................................14
4.13 Taxes..........................................................................................14
4.14 Litigation.....................................................................................15
4.15 Contracts and Other Agreements.................................................................15
4.16 Compensation Arrangements; Officers, Directors and Employees...................................15
4.17 ERISA..........................................................................................15
4.18 Operations.....................................................................................15
4.19 Year 2000 Compliance...........................................................................17
4.20 Brokers........................................................................................17
4.21 Approval of Share Exchange.....................................................................17
4.22 SEC Reporting Status...........................................................................18
4.23 Investment Company.............................................................................18
4.24 OTC Bulletin Board Status......................................................................18
4.25 Disclosure.....................................................................................18
ACTIONS PRIOR TO CLOSING.........................................................................................18
5.1 Corporate Examinations and Investigations......................................................18
5.2 Conduct of Business............................................................................19
5.3 Preservation of Business.......................................................................19
5.4 Advice of Changes..............................................................................19
5.5 Other Agreements...............................................................................19
CONDITIONS PRECEDENT TO CLOSING..................................................................................20
6.1 Conditions Precedent to the Obligations of BCS to Complete the Closing.........................20
6.2 Conditions Precedent to the Obligations of the AutoVenu Shareholders to Complete the Closing...21
POST-CLOSING COVENANTS...........................................................................................22
7.1 Further Information............................................................................22
7.2 Record Retention...............................................................................23
7.3 Post-Closing Assistance........................................................................23
7.4 SEC Reporting..................................................................................23
SURVIVAL; INDEMNIFICATION........................................................................................23
8.1 Survival of Agreements, Representations and Warranties.........................................23
8.2 Indemnification by the AutoVenu Shareholders...................................................24
8.3 BCS's Indemnity................................................................................24
8.4 Method of Asserting Claims.....................................................................24
8.5 General Provisions.............................................................................26
TERMINATION OF AGREEMENT.........................................................................................26
9.1 Termination....................................................................................26
9.2 Survival After Termination.....................................................................27
MISCELLANEOUS....................................................................................................27
10.1 Expenses.......................................................................................27
10.2 Further Assurances.............................................................................27
10.3 Notices........................................................................................28
10.4 Arbitration....................................................................................28
10.5 Publicity......................................................................................29
10.6 Entire Agreement...............................................................................29
10.7 Waivers and Amendments.........................................................................29
10.8 Governing Law..................................................................................29
10.9 Binding Effect, No Assignment..................................................................29
10.10 Counterparts...................................................................................29
10.11 Exhibits and Schedules.........................................................................29
10.12 Effect of Disclosure on Schedules..............................................................30
10.13 Headings.......................................................................................30
10.14 Severability of Provisions.....................................................................30
Schedule A - List of AutoVenu, Inc. Shareholders
THIS SHARE EXCHANGE AGREEMENT is entered into as of September 25, 2000, by and between BCS INVESTMENT CORPORATION, a Colorado corporation ("BCS"), and the persons named on Schedule A attached to this Agreement (the "AUTOVENU SHAREHOLDERS") who are shareholders of AUTOVENU, INC., a Delaware corporation ("AUTOVENU").
RECITALS
It is the intention of the parties hereto that AutoVenu become a wholly-owned subsidiary of BCS through the exchange of all outstanding shares of AutoVenu Common Stock for shares of BCS Common Stock and BCS Preferred Stock on the following terms:
AGREEMENT
NOW, THEREFORE, for and in consideration of the premises and the mutual agreements hereinafter set forth, in accordance with the provisions of applicable law, the parties hereby agree as follows:
ARTICLE I
THE SHARE EXCHANGE
1.1 THE SHARE EXCHANGE. Subject to the terms and conditions of this
Agreement, at Closing, the AutoVenu Shareholders shall tender all their
respective shares of AutoVenu Common Stock to BCS in exchange for
shares of BCS common stock, no par value ("BCS COMMON STOCK") and
shares of BCS Series A Preferred Stock, no par value ("BCS PREFERRED
STOCK"). AutoVenu shall become a wholly-owned subsidiary of BCS.
1.2 EFFECTIVE DATE. The Share Exchange will become effective upon the
proper filing of Articles of Share Exchange with the Secretary of State
of the States of Colorado and Delaware.
1.3 EXCHANGE OF AUTOVENU COMMON STOCK. The AutoVenu Common Stock shall be
exchanged in the Share Exchange as follows:
(a) Each certificate that prior to the Effective Date represented
an outstanding share of AutoVenu Common Stock will be
exchanged for 303.7241 shares of BCS Common Stock and 6.393
shares of BCS Preferred Stock. As a result, the AutoVenu
Shareholders will collectively own 85,953,920of the then
outstanding shares of BCS Common Stock. and 1,809,216 shares
of BCS Preferred Stock.
(b) Each share BCS Preferred Stock shall be convertible into 100
shares of BCS Common Stock .
(b) No fraction of a share of BCS Common Stock or BCS Preferred
Stock will be issued upon such exchange of shares of AutoVenu
Common Stock. Instead amounts of shares will be rounded to the
nearest whole number.
Share Exchange Agreement-Page 1
1.4 EXCHANGE OF CERTIFICATES. At Closing, or as soon as practicable
thereafter, BCS shall deliver to each AutoVenu Shareholder listed on
SCHEDULE A hereto, certificates representing the whole number of shares
of BCS Common Stock and BCS Preferred Stock, and such AutoVenu
Shareholder's certificate(s) of AutoVenu Common Stock shall be
delivered to BCS.
1.5 REPORTING OF SHARE EXCHANGE. For federal, state, and local income tax
return reporting purposes, all parties agree to treat the Share
Exchange as a nontaxable exchange under Section 368 of the Internal
Revenue Code.
1.6 BOARD OF DIRECTORS OF BCS. At closing, or as soon as practicable
thereafter, the board of directors and officers of BCS shall be
replaced with the board of directors and officers of AutoVenu.
ARTICLE II
THE CLOSING
2.1 TIME AND PLACE OF CLOSING. The closing of the Share Exchange (the
"CLOSING") shall, unless otherwise agreed to in writing by the parties,
take place at a mutually acceptable location at 10:00 AM, local time,
on September 25, 2000.
2.2 OBLIGATIONS OF THE AUTOVENU SHAREHOLDERS AT OR PRIOR TO THE CLOSING. At
or within two weeks after Closing, and subject to the satisfaction by
BCS of its obligations hereunder, the AutoVenu Shareholders shall
deliver to BCS the following:
(a) A copy of the Certificate of Incorporation of AutoVenu
certified as of a date within thirty (30) days of the Closing
by the Secretary of State of the State of Delaware and
certified by the corporate secretary of AutoVenu as to the
absence of any amendments between the date of certification by
the Secretary of State and the Closing;
(b) A certificate from the Secretary of State of the State of
Delaware as to the existence and good standing of AutoVenu as
of a date within thirty (30) days of the Closing;
(c) A certificate of the corporate secretary of AutoVenu attaching
thereto true and correct copies of the bylaws of AutoVenu;
(d) The certificate of AutoVenu referred to in SECTION 6.1 hereof;
(e) Such other documents as are required pursuant to this
Agreement or as may reasonably be requested from the AutoVenu
Shareholders by BCS or its counsel as provided for in SECTION
5.1 hereof; and
(f) The certificates evidencing the shares of AutoVenu Common
Stock owned by the AutoVenu Shareholders, duly endorsed for
transfer to BCS.
Share Exchange Agreement-Page 2
(g) Audited financial statements that are not materially adversely
different from the August 31, 2000 unaudited financial
statements attached as Exhibit B. These financial statements
shall be delivered within 60 days of closing.
2.3 OBLIGATIONS OF BCS AT OR PRIOR TO THE CLOSING. At or within two weeks
after Closing, and subject to the satisfaction by the AutoVenu
Shareholders of their obligations hereunder, BCS shall deliver to the
AutoVenu Shareholders the following:
(a) A copy of the Articles of Incorporation of BCS certified as of
a date within thirty (30) days of the Closing by the Secretary
of State of the State of Colorado and certified by the
corporate secretary of BCS as to the absence of any amendments
between the date of certification by the Secretary of State
and the Closing;
(b) A certificate from the Secretary of State of the State of
Colorado as to the existence and good standing of BCS as of a
date within thirty (30) days of the Closing;
(c) A certificate of the corporate secretary of BCS attaching
thereto true and correct copies of the bylaws of BCS and the
corporate resolutions duly adopted by the board of directors
of BCS authorizing the consummation of the transactions
contemplated hereby;
(d) The certificate of BCS referred to in SECTION 6.2 hereof;
(e) Such other documents as are required pursuant to this
Agreement or as may reasonably be requested from BCS by the
AutoVenu Shareholders or their counsel; and
(f) Certificates evidencing the BCS Common Stock to be issued to
the AutoVenu Shareholders pursuant to ARTICLE I hereof.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF
THE AUTOVENU SHAREHOLDERS
Except as expressly set forth and specifically identified by the section number of this Agreement in the schedule to be delivered to BCS by the AutoVenu Shareholders within twenty (20) days from the execution of this Agreement (the "AUTOVENU SHAREHOLDERS DISCLOSURE SCHEDULE"), the AutoVenu Shareholders represent, warrant, and covenant to BCS as follows:
3.1 ORGANIZATION AND QUALIFICATION. AutoVenu is a corporation duly
organized, validly existing and in good standing under the laws of
Delaware, and has all requisite corporate power and authority to (a)
own, lease and operate its properties and assets as they are now owned,
leased and operated and (b) carry on its business as currently
conducted and as proposed to be conducted. AutoVenu is duly qualified
or licensed to do business in each jurisdiction in which the failure to
be so qualified or licensed could have a material adverse
Share Exchange Agreement-Page 3
effect in the business, operations, properties, assets, liabilities,
prospects, or condition (financial or otherwise) of AutoVenu
(hereinafter a "MATERIAL EFFECT").
3.2 CAPITALIZATION. The issued and outstanding capital stock of AutoVenu
consists of 283,000 shares of common stock. All of the issued and
outstanding shares of capital stock of AutoVenu are validly issued,
fully paid, and nonassessable, and none of such shares have been issued
in violation of the preemptive rights of any person.
3.3 SUBSIDIARIES AND AFFILIATES. AutoVenu does not own or hold, directly or
indirectly, any equity, debt, or other interest in any entity or
business or any option to acquire any such interest.
3.4 OPTIONS OR OTHER RIGHTS. No options, warrants, calls, commitments or
other rights to acquire, sell or issue shares of capital stock or other
equity interests of AutoVenu, whether upon conversion of other
securities or otherwise, are issued or outstanding, and there is no
agreement or understanding with respect to the voting of such capital
stock or other equity interests.
3.5 OWNERSHIP OF SHARES. The shares of AutoVenu Common Stock are owned of
record and beneficially by the AutoVenu Shareholders as set forth on
Schedule A. The AutoVenu Shareholders possess full authority and legal
right to sell, transfer, and assign the entire legal and beneficial
ownership of the shares of AutoVenu Common Stock, free from all liens,
claims, and encumbrances of any kind; and there are no outstanding
rights or obligations granted by the AutoVenu Shareholders to purchase
or acquire any of the shares of AutoVenu Common Stock or any interest
in any of the shares of AutoVenu Common Stock. Upon transfer of the
shares of AutoVenu Common Stock to BCS hereunder at the Closing, BCS
will receive the entire legal and beneficial interest in the shares of
AutoVenu Common Stock, free and clear of all liens, claims, and
encumbrances and subject to no legal or equitable restrictions of any
kind.
3.6 VALIDITY AND EXECUTION OF AGREEMENT. Each of the AutoVenu Shareholders
has the full legal right, capacity and power required to enter into,
execute and deliver this Agreement and to carry out the transactions
contemplated. This Agreement has been duly executed and delivered by
each of the AutoVenu Shareholders and constitutes the valid and binding
obligation of each of the AutoVenu Shareholders, enforceable in
accordance with its terms, subject to the qualification that
enforcement of the rights and remedies created hereby is subject to (a)
bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting the rights and remedies of creditors and
(b) general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law).
3.7 NO CONFLICT. None of the execution, delivery, or performance of this
Agreement does or will: (a) result in any violation or be in conflict
with or constitute a default under any term or provision of the
Certificate of Incorporation or bylaws of AutoVenu or any term or
provision of any judgment, decree, order, statute, injunction, rule, or
regulation applicable to AutoVenu or any AutoVenu Shareholder, or of
any material note, bond, mortgage, indenture, lease, license,
franchise, agreement, or other instrument or obligation to which
AutoVenu or
Share Exchange Agreement-Page 4
any AutoVenu Shareholder is bound; (b) result in the creation of any
material option, pledge, security interest, lien, charge, encumbrance,
or restriction, whether imposed by agreement, understanding, law or
otherwise, except those arising under applicable federal or state
securities laws (hereinafter an "ENCUMBRANCE") upon any of the
properties or assets of AutoVenu or any AutoVenu Shareholder pursuant
to any such term or provision; or (c) constitute a default under,
terminate, accelerate, amend or modify, or give any party the right to
terminate, accelerate, amend, modify, abandon, or refuse to perform or
comply with, any material contract, agreement, arrangement, commitment,
or plan to which AutoVenu or any AutoVenu Shareholder is a party, or by
which AutoVenu or any AutoVenu Shareholder or any of their respective
properties or assets may be subject or bound.
3.8 CONSENTS AND APPROVALS. No federal, state, foreign or other regulatory
approvals are required to be obtained, nor any regulatory requirements
complied with, by AutoVenu or any AutoVenu Shareholder in connection
with the Share Exchange.
3.9 VIOLATION OF LAWS, PERMITS, ETC.
(a) AutoVenu is not in violation of any term or provision of its
Articles of Incorporation or bylaws, or of any material term
or provision of any judgment, decree, order, statute, law,
injunction, rule, ordinance, or governmental regulation that
is applicable to it and where the failure to comply with which
would have a Material Ef ...
*End of Preview*
Click the 'Add to Cart' button to download the complete and formatted agreement.