Common use of Merger Consideration Conversion and Exchange of Securities Clause in Contracts

Merger Consideration Conversion and Exchange of Securities. 8 Section 3.1 Manner and Basis of Converting and Exchanging Capital Stock 8 Section 3.2 Surrender and Exchange of Certificates 8 Section 3.3 Options, Warrants 10 Section 3.4 Parent Common Stock 11 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY 11 Section 4.1 Organization 11 Section 4.2 Authorization; Validity of Agreement 12 Section 4.3 Capitalization 12 Section 4.4 Consents and Approvals; No Violations 12 Section 4.5 Financial Statements 13 Section 4.6 No Undisclosed Liabilities 13 Section 4.7 Litigation 13 Section 4.8 No Default; Compliance with Applicable Laws 13 Section 4.9 Broker’s and Finder’s Fees 13 Section 4.10 Contracts 14 Section 4.11 Tax Returns and Audits 14 Section 4.12 Patents and Other Intangible Assets 15 Section 4.13 Employee Benefit Plans; ERISA 15 Section 4.14 Title to Property and Encumbrances 16 Section 4.15 Condition of Properties 16 Section 4.16 Insurance Coverage 16 Section 4.17 Environmental Matters 16 Section 4.18 Disclosure 17 ARTICLE V REPRESENTATIONS AND WARRANTIES OF PARENT AND ACQUISITION CORP 17 Section 5.1 Organization 17 Section 5.2 Authorization; Validity of Agreement 18 Section 5.3 Consents and Approvals; No Violations 18 Section 5.4 Litigation 18 Section 5.5 No Default; Compliance with Applicable Laws 19 Section 5.6 Broker’s and Finder’s Fees; Broker/Dealer Ownership 19 Section 5.7 Capitalization of Parent 19 Section 5.8 Acquisition Corp 18 Section 5.9 Validity of Shares 19 Section 5.10 SEC Reporting and Compliance 20 Section 5.11 Financial Statements 21 Section 5.12 No General Solicitation 21 Section 5.13 Absence of Undisclosed Liabilities 20 Section 5.14 Changes 21 Section 5.15 Tax Returns and Audits 22 Section 5.16 Employee Benefit Plans; ERISA 22 Section 5.17 Interested Party Transactions 23 Section 5.18 Questionable Payments 23 Section 5.19 Obligations to or by Stockholders 23 Section 5.20 Schedule of Assets and Contracts 23 Section 5.21 Environmental Matters 24 Section 5.22 Employees 25 Section 5.23 Title to Property and Encumbrances 25 Section 5.24 Condition of Properties 25 Section 5.25 Insurance Coverage 25 Section 5.26 Disclosure 25 Section 5.27 No Liabilities 25 ARTICLE VI CONDUCT OF BUSINESSES PENDING THE MERGER 26 Section 6.1 Conduct of Business by the Company Pending the Merger 26 Section 6.2 Conduct of Business by Parent and Acquisition Corp 27 ARTICLE VII ADDITIONAL AGREEMENTS 28 Section 7.1 Access and Information 28 Section 7.2 Additional Agreements 28 Section 7.3 Publicity 29 Section 7.4 Appointment of Directors 29 Section 7.5 Name Changes 29 Section 7.6 Stockholder Consent 29 ARTICLE VIII CONDITIONS OF PARTIES’ OBLIGATIONS 30 Section 8.1 Company Obligations 30 Section 8.2 Parent and Acquisition Corp. Obligations 31 ARTICLE IX INDEMNIFICATION AND RELATED MATTERS 33 Section 9.1 Indemnification by Parent 33 Section 9.2 Survival 33 Section 9.3 Time Limitations 33 Section 9.4 Limitation on Liability 33 Section 9.5 Notice of Claims 34 ARTICLE X TERMINATION PRIOR TO CLOSING 34 Section 10.1 Termination of Agreement 34 Section 10.2 Termination of Obligations 35 ARTICLE XI MISCELLANEOUS 35 Section 11.1 Amendments 35 Section 11.2 Notices 35 Section 11.3 Entire Agreement 36 Section 11.4 Expenses 36 Section 11.5 Severability 37 Section 11.6 Successors and Assigns; Assignment 37 Section 11.7 No Third Party Beneficiaries 37 Section 11.8 Counterparts; Delivery by Facsimile 37 Section 11.9 Waiver 37 Section 11.10 No Constructive Waivers 38 Section 11.11 Further Assurances 38 Section 11.12 Recitals 38 Section 11.13 Headings 38 Section 11.14 Governing Law 38 Section 11.15 Dispute Resolution 38 Section 11.16 Interpretation 39 LIST OF EXHIBITS Exhibit Description Exhibit A Certificate of Incorporation of Surviving Corporation Exhibit B By-laws of Surviving Corporation Exhibit C Directors of Parent Pre-Effective Time and Post-Effective Time Exhibit D Certificate of Incorporation of Parent Exhibit E Bylaws of Parent AGREEMENT AND PLAN OF MERGER THIS AGREEMENT AND PLAN OF MERGER is entered into as of November 5, 2007 by and among PACIFIC SYNDICATED RESOURCES, INC., a Nevada corporation (“Parent”), ZNOMICS ACQUISITION, INC., a Nevada corporation and a wholly-owned subsidiary of Parent (“Acquisition Corp.”), and ZNOMICS, INC., a Delaware corporation (the “Company”).

Merger Consideration Conversion and Exchange of Securities. 8 Section 3.1 Manner and Basis of Converting and Exchanging Capital Stock 8 Section 3.2 Surrender and Exchange of Certificates 8 Section 3.3 Options, Warrants 10 Section 3.4 Parent Common Stock 11 10 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY 11 Section 4.1 Organization 11 Section 4.2 Authorization; Validity of Agreement 12 11 Section 4.3 Capitalization 12 11 Section 4.4 Consents and Approvals; No Violations 12 11 Section 4.5 Financial Statements 13 12 Section 4.6 No Undisclosed Liabilities 13 12 Section 4.7 Litigation 13 12 Section 4.8 No Default; Compliance with Applicable Laws 13 Section 4.9 Broker’s and Finder’s Fees 13 Section 4.10 Contracts 14 13 Section 4.11 Tax Returns and Audits 14 13 Section 4.12 Patents and Other Intangible Assets 15 14 Section 4.13 Employee Benefit Plans; ERISA 15 14 Section 4.14 Title to Property and Encumbrances 16 15 Section 4.15 Condition of Properties 16 15 Section 4.16 Insurance Coverage 16 15 Section 4.17 Environmental Matters 16 15 Section 4.18 Disclosure 17 16 ARTICLE V REPRESENTATIONS AND WARRANTIES OF PARENT AND ACQUISITION CORP CORP. 17 Section 5.1 Organization 17 Section 5.2 Authorization; Validity of Agreement 18 17 Section 5.3 Consents and Approvals; No Violations 18 17 Section 5.4 Litigation 18 Section 5.5 No Default; Compliance with Applicable Laws 19 18 Section 5.6 Broker’s and Finder’s Fees; Broker/Dealer Ownership 19 18 Section 5.7 Capitalization of Parent 19 18 Section 5.8 Acquisition Corp 18 Section 5.9 Validity of Shares 19 Section 5.10 SEC Reporting and Compliance 20 19 Section 5.11 Financial Statements 21 20 Section 5.12 No General Solicitation 21 20 Section 5.13 Absence of Undisclosed Liabilities 20 Section 5.14 Changes 21 20 Section 5.15 Tax Returns and Audits 22 21 Section 5.16 Employee Benefit Plans; ERISA 22 21 Section 5.17 Interested Party Transactions 23 22 Section 5.18 Questionable Payments 23 22 Section 5.19 Obligations to or by Stockholders 23 Section 5.20 Schedule of Assets and Contracts 23 Section 5.21 Environmental Matters 24 23 Section 5.22 Employees 25 24 Section 5.23 Title to Property and Encumbrances 25 Encumbrance 24 Section 5.24 Condition of Properties 25 24 Section 5.25 Insurance Coverage 25 24 Section 5.26 Disclosure 25 Section 5.27 No Liabilities 25 ARTICLE VI CONDUCT OF BUSINESSES PENDING THE MERGER 26 25 Section 6.1 Conduct of Business by the Company Pending the Merger 26 25 Section 6.2 Conduct of Business by Parent and Acquisition Corp 27 26 ARTICLE VII ADDITIONAL AGREEMENTS 28 27 Section 7.1 Access and Information 28 27 Section 7.2 Additional Agreements 28 27 Section 7.3 Publicity 29 28 Section 7.4 Appointment of Directors 29 28 Section 7.5 Name Changes 29 28 Section 7.6 Stockholder Consent 29 28 ARTICLE VIII CONDITIONS OF PARTIES’ OBLIGATIONS 30 29 Section 8.1 Company Obligations 30 29 Section 8.2 Parent and Acquisition Corp. Obligations 31 30 ARTICLE IX INDEMNIFICATION AND RELATED MATTERS 33 32 Section 9.1 Indemnification by Parent 33 32 Section 9.2 Survival 33 Section 9.3 Time Limitations 33 Section 9.4 Limitation on Liability 33 Section 9.5 Notice of Claims 34 ARTICLE X TERMINATION PRIOR TO CLOSING 34 Section 10.1 Termination of Agreement 34 Section 10.2 Termination of Obligations 35 ARTICLE XI MISCELLANEOUS 35 Section 11.1 Amendments 35 Section 11.2 Notices 35 Section 11.3 Entire Agreement 36 Section 11.4 Expenses 36 Section 11.5 Severability 37 Section 11.6 Successors and Assigns; Assignment 37 Section 11.7 No Third Party Beneficiaries 37 Section 11.8 Counterparts; Delivery by Facsimile 37 Section 11.9 Waiver 37 Section 11.10 No Constructive Waivers 38 Section 11.11 Further Assurances 38 Section 11.12 Recitals 38 Section 11.13 Headings 38 Section 11.14 Governing Law 38 Section 11.15 Dispute Resolution 38 Section 11.16 Interpretation 39 LIST OF EXHIBITS Exhibit Description Exhibit A Certificate of Incorporation of Surviving Corporation Exhibit B By-laws of Surviving Corporation Exhibit C Directors of Parent Pre-Effective Time and Post-Effective Time Exhibit D Certificate of Incorporation of Parent Exhibit E Bylaws of Parent AGREEMENT AND PLAN OF MERGER THIS AGREEMENT AND PLAN OF MERGER is entered into as of November 5, 2007 by and among PACIFIC SYNDICATED RESOURCES, INC., a Nevada corporation (“Parent”), ZNOMICS ACQUISITION, INC., a Nevada corporation and a wholly-owned subsidiary of Parent (“Acquisition Corp.”), and ZNOMICS, INC., a Delaware corporation (the “Company”).32

Merger Consideration Conversion and Exchange of Securities. 8 Section 3.1 Manner and Basis of Converting and Exchanging Capital Stock 8 Section 3.2 Surrender and Exchange of Certificates 8 Section 3.3 Options, Warrants 10 Section 3.4 Parent Common Stock 11 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY 11 Section 4.1 Organization 11 Section 4.2 Authorization; Validity of Agreement 12 11 Section 4.3 Capitalization 12 11 Section 4.4 Consents and Approvals; No Violations 12 11 Section 4.5 Financial Statements 13 12 Section 4.6 No Undisclosed Liabilities 13 12 Section 4.7 Litigation 13 Section 4.8 No Default; Compliance with Applicable Laws 13 Section 4.9 Broker’s and Finder’s Fees 13 Section 4.10 Contracts 14 13 Section 4.11 Tax Returns and Audits 14 13 Section 4.12 Patents and Other Intangible Assets 15 14 Section 4.13 Employee Benefit Plans; ERISA 15 14 Section 4.14 Title to Property and Encumbrances 16 15 Section 4.15 Condition of Properties 16 15 Section 4.16 Insurance Coverage 16 15 Section 4.17 Environmental Matters 16 Section 4.18 Disclosure 17 ARTICLE V REPRESENTATIONS AND WARRANTIES OF PARENT AND ACQUISITION CORP 17 Section 5.1 Organization 17 Section 5.2 Authorization; Validity of Agreement 18 17 Section 5.3 Consents and Approvals; No Violations 18 Section 5.4 Litigation 18 Section 5.5 No Default; Compliance with Applicable Laws 19 18 Section 5.6 Broker’s and Finder’s Fees; Broker/Dealer Ownership 19 18 Section 5.7 Capitalization of Parent 19 18 Section 5.8 Acquisition Corp 18 Section 5.9 Validity of Shares 19 Section 5.10 SEC Reporting and Compliance 20 19 Section 5.11 Financial Statements 21 Section 5.12 No General Solicitation 21 Section 5.13 Absence of Undisclosed Liabilities 20 Section 5.14 Changes 21 Section 5.15 Tax Returns and Audits 22 Section 5.16 Employee Benefit Plans; ERISA 22 Section 5.17 Interested Party Transactions 23 Section 5.18 Questionable Payments 23 Section 5.19 Obligations to or by Stockholders 23 Section 5.20 Schedule of Assets and Contracts 23 Section 5.21 Environmental Matters 24 Section 5.22 Employees 25 Section 5.23 Title to Property and Encumbrances 25 Section 5.24 Condition of Properties 25 Section 5.25 Insurance Coverage 25 Section 5.26 Disclosure 25 Section 5.27 No Liabilities 25 ARTICLE VI CONDUCT OF BUSINESSES PENDING THE MERGER 26 Section 6.1 Conduct of Business by the Company Pending the Merger 26 Section 6.2 Conduct of Business by Parent and Acquisition Corp 27 ARTICLE VII ADDITIONAL AGREEMENTS 28 Section 7.1 Access and Information 28 Section 7.2 Additional Agreements 28 Section 7.3 Publicity 29 Section 7.4 Appointment of Directors 29 Section 7.5 Name Changes 29 Section 7.6 Stockholder Consent 29 ARTICLE VIII CONDITIONS OF PARTIES’ OBLIGATIONS 30 Section 8.1 Company Obligations 30 Section 8.2 Parent and Acquisition Corp. Obligations 31 ARTICLE IX INDEMNIFICATION AND RELATED MATTERS 33 Section 9.1 Indemnification by Parent 33 Section 9.2 Survival 33 Section 9.3 Time Limitations 33 Section 9.4 Limitation on Liability 33 Section 9.5 Notice of Claims 34 ARTICLE X TERMINATION PRIOR TO CLOSING 34 Section 10.1 Termination of Agreement 34 Section 10.2 Termination of Obligations 35 ARTICLE XI MISCELLANEOUS 35 Section 11.1 Amendments 35 Section 11.2 Notices 35 Section 11.3 Entire Agreement 36 Section 11.4 Expenses 36 Section 11.5 Severability 37 Section 11.6 Successors and Assigns; Assignment 37 Section 11.7 No Third Party Beneficiaries 37 Section 11.8 Counterparts; Delivery by Facsimile 37 Section 11.9 Waiver 37 Section 11.10 No Constructive Waivers 38 Section 11.11 Further Assurances 38 Section 11.12 Recitals 38 Section 11.13 Headings 38 Section 11.14 Governing Law 38 Section 11.15 Dispute Resolution 38 Section 11.16 Interpretation 39 LIST OF EXHIBITS Exhibit Description Exhibit A Certificate of Incorporation of Surviving Corporation Exhibit B By-laws of Surviving Corporation Exhibit C Directors of Parent Pre-Effective Time and Post-Effective Time Exhibit D Certificate of Incorporation of Parent Exhibit E Bylaws of Parent AGREEMENT AND PLAN OF MERGER THIS AGREEMENT AND PLAN OF MERGER is entered into as of November 5, 2007 by and among PACIFIC SYNDICATED RESOURCES, INC., a Nevada corporation (“Parent”), ZNOMICS ACQUISITION, INC., a Nevada corporation and a wholly-owned subsidiary of Parent (“Acquisition Corp.”), and ZNOMICS, INC., a Delaware corporation (the “Company”).20

Merger Consideration Conversion and Exchange of Securities. 8 12 Section 3.1 Manner and Basis of Converting and Exchanging Capital Stock 8 12 Section 3.2 Surrender and Exchange of Certificates 8 13 Section 3.3 Options, Warrants 10 Section 3.4 Parent Common Stock 11 15 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY 11 15 Section 4.1 Organization 11 15 Section 4.2 Authorization; Validity of Agreement 12 15 Section 4.3 Capitalization 12 16 Section 4.4 Consents and Approvals; No Violations 12 16 Section 4.5 Financial Statements 13 16 Section 4.6 No Undisclosed Liabilities 13 16 Section 4.7 Litigation 13 17 Section 4.8 No Default; Compliance with Applicable Laws 13 17 Section 4.9 Broker’s and Finder’s Fees 13 17 Section 4.10 Contracts 14 17 Section 4.11 Tax Returns and Audits 14 18 Section 4.12 Patents and Other Intangible Assets 15 18 Section 4.13 Employee Benefit Plans; ERISA 15 19 Section 4.14 Title to Property and Encumbrances 16 19 Section 4.15 Condition of Properties 16 20 Section 4.16 Insurance Coverage 16 20 Section 4.17 Environmental Matters 16 20 Section 4.18 Disclosure 17 21 ARTICLE V REPRESENTATIONS AND WARRANTIES OF PARENT AND ACQUISITION CORP 17 CORP. 21 Section 5.1 Organization 17 21 Section 5.2 Authorization; Validity of Agreement 18 21 Section 5.3 Consents and Approvals; No Violations 18 22 Section 5.4 Litigation 18 22 Section 5.5 No Default; Compliance with Applicable Laws 19 22 Section 5.6 Broker’s and Finder’s Fees; Broker/Dealer Ownership 19 22 Section 5.7 Capitalization of Parent 19 23 Section 5.8 Acquisition Corp 18 Section 5.9 Validity of Shares 19 23 Section 5.10 SEC Reporting and Compliance 20 23 Section 5.11 Financial Statements 21 24 Section 5.12 No General Solicitation 21 24 Section 5.13 Absence of Undisclosed Liabilities 20 24 Section 5.14 Changes 21 25 Section 5.15 Tax Returns and Audits 22 26 Section 5.16 Employee Benefit Plans; ERISA 22 26 Section 5.17 Interested Party Transactions 23 27 Section 5.18 Questionable Payments 23 27 Section 5.19 Obligations to or by Stockholders 23 27 Section 5.20 Schedule of Assets and Contracts 23 27 Section 5.21 Environmental Matters 24 28 Section 5.22 Employees 25 29 Section 5.23 Title to Property and Encumbrances 25 29 Section 5.24 Condition of Properties 25 29 Section 5.25 Insurance Coverage 25 29 Section 5.26 Disclosure 25 29 Section 5.27 No Liabilities 25 ARTICLE VI CONDUCT OF BUSINESSES PENDING THE MERGER 26 Section 6.1 Conduct of Business by the Company Pending the Merger 26 Section 6.2 Conduct of Business by Parent and Acquisition Corp 27 ARTICLE VII ADDITIONAL AGREEMENTS 28 Section 7.1 Access and Information 28 Section 7.2 Additional Agreements 28 Section 7.3 Publicity 29 Section 7.4 Appointment of Directors 29 Section 7.5 Name Changes 29 Section 7.6 Stockholder Consent 29 ARTICLE VIII CONDITIONS OF PARTIES’ OBLIGATIONS 30 Section 8.1 Company Obligations 30 Section 8.2 Parent and Acquisition Corp. Obligations 31 ARTICLE IX INDEMNIFICATION AND RELATED MATTERS 33 Section 9.1 Indemnification by Parent 33 Section 9.2 Survival 33 Section 9.3 Time Limitations 33 Section 9.4 Limitation on Liability 33 Section 9.5 Notice of Claims 34 ARTICLE X TERMINATION PRIOR TO CLOSING 34 Section 10.1 Termination of Agreement 34 Section 10.2 Termination of Obligations 35 ARTICLE XI MISCELLANEOUS 35 Section 11.1 Amendments 35 Section 11.2 Notices 35 Section 11.3 Entire Agreement 36 Section 11.4 Expenses 36 Section 11.5 Severability 37 Section 11.6 Successors and Assigns; Assignment 37 Section 11.7 No Third Party Beneficiaries 37 Section 11.8 Counterparts; Delivery by Facsimile 37 Section 11.9 Waiver 37 Section 11.10 No Constructive Waivers 38 Section 11.11 Further Assurances 38 Section 11.12 Recitals 38 Section 11.13 Headings 38 Section 11.14 Governing Law 38 Section 11.15 Dispute Resolution 38 Section 11.16 Interpretation 39 LIST OF EXHIBITS Exhibit Description Exhibit A Certificate of Incorporation of Surviving Corporation Exhibit B By-laws of Surviving Corporation Exhibit C Directors of Parent Pre-Effective Time and Post-Effective Time Exhibit D Certificate of Incorporation of Parent Exhibit E Bylaws of Parent AGREEMENT AND PLAN OF MERGER THIS AGREEMENT AND PLAN OF MERGER is entered into as of November 5, 2007 by and among PACIFIC SYNDICATED RESOURCES, INC., a Nevada corporation (“Parent”), ZNOMICS ACQUISITION, INC., a Nevada corporation and a wholly-owned subsidiary of Parent (“Acquisition Corp.”), and ZNOMICS, INC., a Delaware corporation (the “Company”).29