Document:

Exhibit 10.2

 

AGREEMENT AND PLAN OF
MERGER

 

This Agreement and Plan of Merger (this “Agreement”) is made as of December 30,
2004, by and among Helm Capital Group, Inc.., a Delaware corporation (“Helm”),
Helm Pharmaceuticals, Inc., a Delaware corporation and a wholly-owned
subsidiary of Helm (“Newco”) (Helm and Newco collectively the “Helm Group”),
and GBS Labs, Inc., a New York corporation (the “Company”).

 

RECITALS

 

WHEREAS, the Boards of Directors of Helm, Newco and the Company have
each duly approved and adopted this Agreement and Plan of Merger; and

 

WHEREAS, the Company and Newco have deemed it advisable and fair to,
and in the best interests of, the common stockholders of each of the Company
and Newco, and resolved to recommend approval to the common stockholders of
each of the Company and Newco, of the merger of the Company with and into Newco
in accordance with this Agreement; and

 

WHEREAS, it is the intent of both parties, the Helm Group and
the Company, to effectuate a tax-free merger; and

 

WHEREAS, it is the intent of both parties, the Helm Group and the
Company, to so report the transaction as a tax-free merger; and

 

WHEREAS, this Agreement contemplates a tax-free merger of the Company
with and into Newco in a Merger pursuant to IRC §368 wherein the Company will
receive preferred stock of Helm in exchange for the Company’s shareholders’
Shares in the Company (as defined below); and

 

WHEREAS, each of the parties, the Helm Group and the Company
will use its best efforts to take all action and do all things necessary,
proper and advisable under applicable law in order to consummate the
transaction contemplated by this Agreement; and

 

WHEREAS, the parties hereto expect that the merger will further certain
of their business objectives including, without limitation, the development of
a distributorship for certain “over-the-counter” pharmaceutical products,
including, without limitation, the raising of capital in connection therewith.

 

NOW, THEREFORE, in consideration of the mutual benefits to be derived
from this Agreement and the representations, warranties, covenants, agreements,
conditions and promises contained herein and therein, the parties hereby agree
as follows:

 

AGREEMENT

 

The parties, intending to be legally bound, agree as follows:

 

 

1.             Definitions.

 

For purposes of this Agreement, the following terms have the meanings
specified or referred to in this Section 1:

 

“Affiliate” - shall mean any affiliate, as defined in Rule 12b-2
under the Securities Exchange Act.

 

“Agreement” - as defined in the first paragraph of this Agreement.

 

“Certificate of Designation” means the Certificate of Designation,
substantially in the form annexed hereto as Exhibit A, setting forth the
rights, preferences and privileges of the Preferred Stock.

 

“Consent” - any approval, consent, ratification, waiver, or other
authorization (including any governmental authorization).

 

“Constituent Corporations” – as defined in Section 2.1.

 

“Contract” - any agreement, contract, obligation, promise, or
undertaking (whether written or oral and whether express or implied) that is
legally binding.

 

“Conversion Shares” - those shares of Helm common stock into which the
shares of Preferred Stock may be converted pursuant to the terms of the
Preferred Stock.

 

“Encumbrance” - any charge, claim, community property interest,
condition, equitable interest, lien, option, pledge, security interest, right
of first refusal, or restriction of any kind, including any restriction on use,
voting, transfer, receipt of income, or exercise of any other attribute of
ownership.

 

“Effective Date” – as defined in Section 2.2

 

“Glyco Contract” – that certain Binding Letter of Intent and Memorandum
of Understanding, dated as of November 18, 2004, by and between
GlycoBioSciences, Inc. and the Company.

 

“IRC” - the Internal Revenue Code of 1986 or any successor law, and
regulations issued by the IRS pursuant to the Internal Revenue Code or any
successor law.

 

“IRS” - the United States Internal Revenue Service or any successor
agency, and, to the extent relevant, the United States Department of the
Treasury.

 

“Knowledge” - an individual will be deemed to have “Knowledge” of a
particular fact or other matter if:

 

(a)           such
individual is actually aware of such fact or other matter; or

 

(b)           based on facts of which such individual is
aware, a prudent individual in similar circumstances would have known of such
fact or other matter.

 

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A Person (other than an individual) will be deemed to have “Knowledge”
of a particular fact or other matter if any individual who is serving, or who
has at any time served, as a director, officer, partner, executor, or trustee
of such Person (or in any similar capacity) has, or at any time had Knowledge
of such fact or other matter.

 

“Legal Requirement” - any federal, state, local, municipal, foreign,
international, multinational, or other administrative order, constitution, law,
ordinance, principle of common law, regulation, statute, or treaty.

 

“Merger” – as defined in Section 2.1.

 

“Merger Filings” – as defined in Section 2.2.

 

“Newco” – as defined in the first paragraph of this Agreement.

 

“Order” - any award, decision, injunction, judgment, order, ruling,
subpoena, or verdict entered, issued, made, or rendered by any court,
administrative agency, or other Governmental Body or by any arbitrator.

 

“Organizational Documents” - (a) the articles or certificate of
incorporation and the bylaws of a corporation; and (b) any amendment to
any of the foregoing.

 

“Person” - any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability company, joint venture, estate, trust, association,
organization, labor union, or other entity or governmental body.

 

“Preferred Stock” – the series of preferred stock of Helm with the
rights, preferences and privileges set forth in the Certificate of Designation.

 

“Proceeding” - any action, arbitration, audit, hearing, investigation,
litigation, or suit (whether civil, criminal, administrative, investigative, or
informal) commenced, brought, conducted, or heard by or before, or otherwise
involving, any Governmental Body or arbitrator.

 

“Representative” - with respect to a particular Person, any director,
officer, employee, agent, consultant, advisor, or other representative of such
Person, including legal counsel, accountants, and financial advisors.

 

“SEC” – the United States Securities and Exchange Commission.

 

“Securities Act” - the Securities Act of 1933, as amended, or any
successor law, and regulations and rules issued pursuant to that Act or any
successor law.

 

“Securities Exchange Act” - the Securities Exchange Act of 1934, as
amended, or any successor law, and regulations and rules issued pursuant to
that Act or any successor law.

 

“Shares” - as defined in Section 2.7(a).

 

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“Subsidiary” - with respect to any Person (the “Owner”), any
corporation or other Person of which securities or other interests having the
power to elect a majority of that corporation’s or other Person’s board of
directors or similar governing body, or otherwise having the power to direct
the business and policies of that corporation or other Person (other than
securities or other interests having such power only upon the happening of a
contingency that has not occurred) are held by the Owner or one or more of its
Subsidiaries; when used without reference to a particular Person, “Subsidiary”
means a Subsidiary of the Company.

 

“Straddle Period” - means any taxable period which includes but does not
end on the Effective Date.  In the case
of any Straddle Period, Taxes of the Company for the portion of any Straddle
Period ending on and including the Effective Date shall be computed as if such
taxable period ended as of the close of business on the Effective Date.

 

“Surviving Corporation” – as defined in Section 2.1.

 

“Tax” or “Taxes” - all federal, state, local and other net income,
gross income, gross receipts, sales, use, ad valorem, transfer, franchise,
payroll, withholding or other taxes, fees, assessments or similar charges
imposed by any Governmental Body, together with any interest and penalties
thereon.

 

“Tax-Free Merger” – as defined in Section 2.10(a).

 

“Tax Return” - any return (including any information return), report,
statement, schedule, notice, form, or other document or information filed with
or submitted to, or required to be filed with or submitted to, any governmental
body in connection with the determination, assessment, collection, or payment
of any Tax or in connection with the administration, implementation, or
enforcement of or compliance with any Legal Requirement relating to any Tax.

 

“Threatened” - a claim, Proceeding, dispute, action, or other matter
will be deemed to have been “Threatened” if any demand or statement has been
made (orally or in writing) or any notice has been given (orally or in
writing), or if any other event has occurred or any other circumstances exist,
that would lead a prudent Person to conclude that such a claim, Proceeding,
dispute, action, or other matter is likely to be asserted, commenced, taken, or
otherwise pursued in the future.

 

2.             Merger.

 

2.1           The Merger.  At
the Effective Date, the Company shall be merged with and into Newco (the “Merger”)
and the separate existence of the Company shall thereupon cease.  After the Effective Date, Newco shall be, and
is sometimes herein referred to as, the “Surviving Corporation.” Newco and the
Company are sometimes referred to as the “Constituent Corporations.”

 

2.2           The Effective Date of Merger. 
As soon as practicable after the satisfaction or waiver of the
conditions hereinafter set forth, the parties shall execute, deliver and file
with the New York Department of State and Delaware Secretary of State,
Certificates of Merger, in the forms annexed hereto as Exhibits B and C,
respectively, and such other documents as required to effect the Merger under
the New York Business Corporation Law and the Delaware General

 

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Corporation Law
(collectively, the “Merger Filings”). 
The Merger shall become effective upon effecting
the Merger Filings (the “Effective Date”).

 

2.3           Effect of Merger.  At the Effective Date, the separate existence
of the Company shall cease and the Company shall be merged with and into Newco
and Newco shall continue as the Surviving Corporation.  The Surviving Corporation shall possess all
of the rights, privileges, powers and franchises of a public as well as of a
private nature, and be subject to all the restrictions, disabilities and duties
of each of the Constituent Corporations and the Merger shall have such other
effects as provided by the New York Business Corporation Law and the Delaware
General Corporation Law.

 

2.4           Certificate and By-Laws of Surviving
Corporation.  Each of the Organizational Documents of Newco
shall be the Organizational Documents of the Surviving Corporation.

 

2.5           Taking of Necessary Action.  Prior
to the Effective Date, the parties hereto shall do or cause to be done all such
acts and things as may be necessary or appropriate in order to effectuate the
Merger as expeditiously as reasonably practicable, in accordance with this
Agreement and the New York Business Corporation Law and the Delaware General
Corporation Law.  In case at any time
after the Effective Date, any further action is necessary or desirable to carry
out the purpose of this Agreement and to vest in the Surviving Corporation full
title to all assets, privileges, rights and entitlements (as well as the
obligations and duties) of either Constituent Corporations, the officers and
directors of such corporations shall take all such lawful and necessary action.

 

2.6           Officers and Directors. 
The officers and directors of the Surviving Corporation at the Effective
Date shall be the officers and directors of the Surviving Corporation, and
shall hold office from the Effective Date until their respective successors are
duly elected or appointed and qualified in the manner provided in the
certificate of incorporation and by-laws of the Surviving Corporation, or as
otherwise provided by law.

 

2.7           Merger Consideration; Conversion of
Shares.

 

(a)           Upon effectiveness of the Merger, each share of common stock, par value
$.01 per share, of the Company’s common stock issued and outstanding
immediately prior to the Merger (other than shares of Company common stock held
in the Company’s treasury or by the Company’s subsidiaries, if any) (the “Shares”)
shall, by virtue of the Merger and without any action on the part of any of the
parties, be converted into one share of Preferred Stock.

 

(b)           Upon effectiveness of the Merger, each share of the Company’s common
stock held in the treasury of the Company immediately prior to the Effective
Date shall, by virtue of the Merger and without any action on the part of
Newco, the Company or the holder thereof, be canceled, retired and cease to
exist.

 

(c)           Upon effectiveness of the Merger, the
issued shares of capital stock of the Surviving Corporation shall not be
converted in any manner, but each said share which is issued as of the
Effective Date of the Merger shall continue to represent one issued share of
the Surviving Corporation.

 

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2.8           Exchange of Certificates and Payment of
Merger Consideration.  On the Effective Date, the Company shall
cause its stockholders, subject to any dissenters’ rights, under applicable New
York law, to deliver to Newco certificates representing all of the outstanding
capital stock of the Company, and Helm shall deliver to such stockholders the
certificates representing the Preferred Stock into which such shares are
convertible in accordance with Section 2.7(a).

 

2.9           Closing Obligations.  The consummation of the transactions
contemplated by this Agreement (the “Closing”) will take place at such time and
place as the parties shall agree as soon as practicable following the
conditions set forth in Sections 6, 7 and 8 having been satisfied or waived
(the date on which the closing occurs is referred to as the “Closing Date”).

 

At the Closing, the
Company will, and will cause each of its stockholders, subject to dissenters’
rights under applicable New York State law, as applicable, to deliver to Newco:

 

(i)            certificates representing the Shares, duly endorsed
(or accompanied by duly executed stock powers) for transfer to Newco or marked
cancelled;

 

(ii)           the stock transfer book, corporate seal, and minute book(s), if any, of
the Company; and

 

(iii)          executed counterparts of the Merger Filings duly
executed by the Company.

 

(iv)          Newco or Helm will deliver to each of the
stockholders of the Company so surrendering certificates for the Shares the
Preferred Stock in accordance with Section 2.7(a).

 

2.10         Tax Treatment of Merger.

 

(a)           Tax-Free Merger. 
The parties intend for the Merger to qualify as a Merger pursuant to IRC
Section 368 (a “Tax-Free Merger”).

 

(b)           Plan of Merger.  This Agreement shall constitute a Plan of
Merger for each of Helm, the Company and Newco.

 

(c)           Merger Consideration. 
The parties acknowledge that as of the Effective Date all of the Merger
consideration is comprised of preferred stock of Helm.

 

3.             Representations and Warranties of the Company.

 

The Company represents
and warrants to Helm and Newco as of the date of this Agreement as follows:

 

3.1           Organization and Good Standing.  The Company is a corporation duly organized,
validly existing, and in good standing under the laws of the State of New York,
with full corporate power and authority to conduct its business as it is now
being conducted, to own or use the properties and assets that it purports to
own or use, and to perform all its obligations under all Contracts to which it
is a party. The Company is duly qualified to do business as a foreign

 

6

 

corporation and is in good standing
under the laws of each state or other jurisdiction in which either the
ownership or use of the properties owned or used by it, or the nature of the
activities conducted by it, requires such qualification, except where the
failure to so qualify would not have a material adverse effect on the Company’s
business.

 

3.2           Authority; No Conflict.

 

(a)           This Agreement constitutes the legal,
valid, and binding obligation of the Company, enforceable against the Company
in accordance with its terms, except as the enforceability thereof may be
limited by bankruptcy, insolvency, fraudulent conveyance, Merger, moratorium or
other similar laws relating to the enforcement of creditors’ rights generally
and by general principles of equity. The Company has all requisite right,
power, authority, and capacity to execute and deliver this Agreement and all
other agreements and documents executed in connection herewith to perform its
obligations under this Agreement and to consummate the transactions
contemplated hereby.

 

(b)           Neither the execution and
delivery of this Agreement by the Company nor the consummation or performance
by the Company of the Merger will, directly or indirectly (with or without
notice or lapse of time):

 

(i)            contravene, conflict with, or result in
a violation of (A) any provision of the Organizational Documents of the
Company, or (B) any resolution adopted by the board of directors or the
stockholders of the Company currently in effect;

 

(ii)           contravene, conflict with, or result in a violation of, or give any
governmental body or other Person the right to challenge the Merger or to
exercise any remedy or obtain any relief under, any Legal Requirement or any
Order to which the Company, or any of the assets owned or used by the Company,
may be subject;

 

(iii)          contravene, conflict with, or result in a
violation of any Contract to which the Company is a party;

 

(iv)          contravene, conflict with, or result in a violation of any of the terms
or requirements of, or give any governmental body the right to revoke,
withdraw, suspend, cancel, terminate, or modify, any governmental authorization
that is held by the Company or that otherwise relates to the business of, or
any of the assets owned or used by, the Company;

 

(v)           cause the Company to become subject to, or to
become liable for the payment of, any Tax;

 

(vi)          constitute a violation of or failure to comply
with any Legal Requirement applicable to the Company;

 

(vii)         contravene, conflict with, or result in a violation or breach of any
provision of, or give any Person the right to declare a default or exercise any
remedy under, or to accelerate the maturity or performance of, or to cancel,
terminate, or modify, any Contract; or

 

7

 

(viii)        result in the imposition or creation of any
Encumbrance upon or with respect to any of the assets owned or used by the
Company.

 

(c)           The Company is not nor will be required
to give any notice to or obtain any Consent from any Person in connection with
the execution and delivery of this Agreement or the consummation the Merger.

 

3.3           Capitalization. 
The authorized equity securities of the Company consist of 2,000,000
shares of common stock, par value $.01 per share.  There are 24,000 shares of the Company’s
common stock issued and outstanding which constitute all of the Shares.  There are no preferred shares or other voting
securities or securities directly or indirectly convertible into capital
stock.  All outstanding shares of the
Company’s common stock are duly authorized, validly issued, fully paid and
non-assessable and free of preemptive right. 
All of the outstanding equity securities of the Company have been duly
authorized and validly issued and are fully paid and nonassessable.  There are no Contracts relating to the
issuance, sale, or transfer of any equity securities or other securities of the
Company. None of the outstanding common stock or other securities of the
Company was issued in violation of the Securities Act or any other Legal
Requirement.  All of the Company’s
stockholders are “accredited investors” as such term is defined in the
Securities Act.  The Company does not
own, nor has any Contract to acquire, any equity securities or other securities
of any Person or any direct or indirect equity or ownership interest in any
other business other than such equity interests or agreements relating thereto
arising under the Glyco Contract.

 

3.4           Assets, Liabilities and Operation of
Business.  The Company was incorporated in July,
2004.  Since its inception, the
Company:  (i) has had no operations and
has not engaged in any activity, except for (x) entering into the Glyco
Contract, a true and correct copy of which has previously been delivered to
Helm and to Newco, (y) obtaining a loan from Paul Frame, the Company’s Chief
Executive Officer, in the amount of $100,000, which is still outstanding, and
(z) agreeing to pay Paul Frame a commission of $100,000 in connection with his
efforts with respect to entering into the Glyco Contract; (ii) has had no
employees; and (iii) has not entered into any contracts or agreements of any nature,
other than the Glyco Contract, the $100,000 loan extended by Paul Frame and the
$100,000 commission to be paid to Paul Frame. 
The Company has no assets or liabilities, other than those arising from
the Glyco Contract, and said loan and commission arrangement.  The Company owns all right, title and
interest in and to the Glyco Contract free and clear of all Encumbrances.  The Company is not in default under the Glyco
Contract and the consummation of the Merger will not cause a default under such
contract.  There are no pending, or to
the knowledge of the Company, threatened proceedings involving the Company, the
Merger or the Glyco Contract.

 

3.5           Books and Records.  The stock record books of the Company are
complete and correct and have been made available to Helm. The books of
account, and other records of the Company, all of which have been made
available to Helm, are complete and correct in all material respects and have
been maintained in accordance with sound business practices. The minute books of
the Company contain accurate and complete records of all meetings held of, and
corporate action taken by, the stockholders, the Boards of Director, and
committees of the Board of Directors of the Company, and no meeting of any such
stockholders, Board of Directors, or committee has been held for which minutes
have not been prepared and are not contained in such

 

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minute books. At the Closing, all of those
books and records will be in the possession of the Company.

 

3.6           Certain Payments.  Neither the Company nor any director or
officer of the Company nor, to the Knowledge of the Company and the Sellers,
any agent or employee or any other Person associated with or acting for or on
behalf of the Company, has directly or indirectly (a) made any
contribution, gift, bribe, rebate, payoff, influence payment, kickback, or
other payment to any Person, private or public, regardless of form, whether in
money, property, or services: 
(i) to obtain favorable treatment in securing business;
(ii) to pay for favorable treatment for business secured; (iii) to
obtain special concessions or for special concessions already obtained, for or
in respect of the Company or any Affiliate of the Company; or (iv) in
violation of any Legal Requirement; nor (b) established or maintained any
fund or asset that has not been recorded in the books and records of the
Company.

 

3.7           Disclosure.  No
representation or warranty of the Company in this Agreement omits to state a
material fact necessary to make the statements in such representation or
warranty or such statement, in light of the circumstances in which they were
made, not misleading.

 

3.8           Brokers or Finders.  Neither the Company nor its agents have
incurred any obligation or liability, contingent or otherwise, for brokerage or
finders’ fees or agents’ commissions or other similar payment in connection
with this Agreement.

 

3.9           Subsidiaries.  The Company does not control directly or
indirectly or have any direct or indirect equity participation or similar
interest in any corporation, partnership, limited liability company, joint
venture, trust or other domestic or foreign business association, organization
or entity.

 

3.10         Certain Tax Related Representations.  Prior to the Effective Date, none
of the Company’s stockholders disposed of any Shares, or received any
distribution from the Company, in a manner that would cause the Merger to
violate the continuity of shareholder interest requirements set forth in IRC
Reg. §1.368-1(e).

 

4.             Representations and Warranties of Helm and Newco. Each of Helm and Newco, jointly and
severally, represents and warrants to the Company as of the date of this
Agreement as follows:

 

4.1           Organization and Good Standing. 
Each of Helm and Newco is a corporation duly organized, validly
existing, and in good standing under the laws of the State of Delaware, with
full corporate power and authority to conduct its business as it is now being
conducted, to own or use the properties and assets that it purports to own or
use, and to perform all its obligations under the Contracts to which it is a
party.  Each of Helm and Newco is duly
qualified to do business as a foreign corporation and is in good standing under
the laws of each state or other jurisdiction in which either the ownership or
use of the properties owned or used by it, or the nature of the activities
conducted by it, requires such qualification, except where the failure to so
qualify would not have a material adverse effect on its business.

 

9

 

4.2           Authority; No Conflict.

 

(a)           This Agreement constitutes the legal,
valid, and binding obligation of each of Helm and Newco, enforceable against
each of them in accordance with its terms, except as the enforceability thereof
may be limited by bankruptcy, insolvency, fraudulent conveyance, Merger,
moratorium or other similar laws relating to the enforcement of creditors’
rights generally and by general principles of equity. Helm and Newco have the
requisite right, power, authority and capacity to execute and deliver this
Agreement and to perform their respective obligations under this Agreement.

 

(b)           Neither the execution and
delivery of this Agreement by Helm or Newco nor the consummation or performance
of the Merger by Helm or Newco, will, directly or indirectly (with or without
notice or lapse of time):

 

(i)            contravene, conflict with, or result in
a violation of (A) any provision of the Organizational Documents of Helm
or Newco, or (B) any resolution adopted by the board of directors or the
stockholders of Helm or Newco currently in effect;

 

(ii)           contravene, conflict with, or result in
a violation of, or give any governmental body or other Person the right to
challenge the Merger or to exercise any remedy or obtain any relief under, any
Legal Requirement or any Order to which Helm or Newco, or any of the assets
owned or used by Helm or Newco, may be subject;

 

(iii)          contravene, conflict with, or result in a
violation of any Contract to which Helm or Newco is a party;

 

(iv)          contravene, conflict with, or result in
a violation of any of the terms or requirements of, or give any governmental
body the right to revoke, withdraw, suspend, cancel, terminate, or modify, any
governmental authorization that is held by Helm or Newco or that otherwise
relates to the business of, or any of the assets owned or used by, Helm or
Newco;

 

(v)           cause Helm or Newco to become subject to, or
to become liable for the payment of, any Tax;

 

(vi)          constitute a violation of or failure to comply
with any Legal Requirement applicable to Helm or Newco;

 

(vii)         contravene, conflict with, or result in
a violation or breach of any provision of, or give any Person the right to
declare a default or exercise any remedy under, or to accelerate the maturity
or performance of or require the payment of any amount to any Peron, or to
cancel, terminate, or modify, any Contract to which either Helm or Newco or any
of their Subsidiaries is a party; or

 

(viii)        result in the imposition or creation of any
Encumbrance upon or with respect to any of the assets owned or used by Helm or
Newco.

 

10

 

(c)           Helm and Newco are not and will not be required to give any notice to
or obtain any Consent from any Person in connection with the execution and delivery
of this Agreement or the consummation or performance of the Merger.

 

(d)           The Preferred Stock and the Conversion Shares, when issued in
accordance with the terms of this Agreement and the Certificate of Designation,
will be duly authorized and validly issued and fully paid and non-assessable,
free and clear of all liens, encumbrances and rights of first refusal of any
kind, and not subject to any preemptive or similar rights.

 

4.3           Investment Intent.  Helm is acquiring the Shares for its own
account and not with a view to their distribution within the meaning of Section 2(11)
of the Securities Act.

 

5.             Covenants of the Company.  Except as expressly provided
in this Agreement, during the period from the date of this Agreement to the
Effective Date, the Company shall use commercially reasonable efforts to (i)
conduct its business in the ordinary and usual course consistent with past
practices and (ii) maintain and preserve intact its business organization and
assets.  The Company agrees to use
commercially reasonable efforts to fulfill all of the conditions to Helm’s and
Newco’s obligations to effectuate the Merger set forth in Sections 6 and 7,
below.

 

6.             Conditions to Each Party’s Obligations under this Agreement. 
The respective obligations of each party under this Agreement to
consummate the Merger shall be subject to the satisfaction, or where
permissible under applicable law, waiver at or prior to the Effective Date of
the following conditions:

 

(a)           This Agreement and the transactions contemplated hereby shall have been
approved by the requisite vote of the shareholders of the Company necessary to
effectuate the Merger in accordance with the New York Business Corporation Law.

 

(b)           All necessary approvals and consents of governmental entities required to
consummate the transactions contemplated hereby shall have been obtained
without the imposition of any term or condition which would, in Helm’s
reasonable judgment, impair, in any material respect, the value of the Merger
to Helm.  All conditions required to be satisfied prior to the Effective Date by the terms of
such approvals and consents shall have been satisfied.

 

(c)           No order, judgment or decree shall be outstanding against a party
hereto or a third party that would have the effect of preventing completion of
the Merger; no suit, action or other proceeding shall be pending or threatened
by any governmental entity seeking to restrain or prohibit the Merger; and no
suit, action or other proceeding shall be pending before any court or
government entity seeking to restrain or prohibit the Merger or obtain other
substantial monetary or other relief against one or more parties hereto in
connection with this Agreement.

 

7.             Conditions to the Obligations of Helm and Newco Under
this Agreement.  The obligations of Helm and Newco under this
Agreement shall be further subject to the satisfaction or waiver, at or prior
to the Effective Date, of the following conditions:

 

11

 

(a)           Except for those representations and warranties which are made as of a
particular date, the representations and warranties of the Company contained in
this Agreement shall be true and correct in all material respects (except with
respect to those representations and warranties which are qualified as to
materiality, which shall be true in all respects) on the Closing Date as though
made on and as of the Closing Date.  The
representations and warranties of the Company contained in this Agreement which
are made as of a particular date shall be true and correct in all material
respects (except with respect to those representations and warranties which are
qualified as to materiality, which shall be true in all respects) as of such
date.  The Company shall have performed
in all material respects the agreements, covenants and obligations to be
performed by it prior to the Closing Date.

 

(b)           Each stockholder of the Company shall have executed and delivered to
Helm, a letter in form and substance acceptable to Helm, agreeing that such
persons will not sell, pledge, transfer or otherwise dispose of any of the
Preferred Stock or the Conversion Shares received pursuant to this Agreement
except (a) in compliance with Rule 144 promulgated under the
Securities Act, (b) pursuant to an exemption from the registration
requirements of the Securities Act, or (c) pursuant to an effective
registration statement under the Securities Act.  In addition, each stockholder will provide
any information reasonably requested by Helm to enable Helm to file a Form D
under the Securities Act and each such investor shall certify that it is an “accredited
investor” as such term is defined in Regulation D under the Securities Act.

 

(c)           The Company and its stockholders shall have delivered to Helm and Newco
such other further documents and investments as Helm and Newco may reasonably
request to effectuate this Agreement.

 

(d)           All of the stockholders of the Company shall have voted for or
otherwise have consented to the consummation of the Merger pursuant to this
Agreement in accordance with New York Business Corporation Law.

 

8.             Conditions to Obligations of the Company Under
this Agreement.  The obligation of the Company to effect the
Merger is also subject to the satisfaction or waiver by the Company at or prior
to the Effective Date of the following conditions:

 

(a)  Except for those representations and
warranties which are made as of a particular date, the representations and
warranties of Helm and Newco contained in this Agreement shall be true and
correct in all material respects (except with respect to those representations
and warranties which are qualified as to materiality, which shall be true in
all respects) on the Closing Date as though made on and Newco of the Closing
Date. The representations and warranties of Helm and Newco contained in this
Agreement which are made as of a particular date shall be true and correct in
all material respects (except with respect to those representations and
warranties which are qualified as to materiality, which shall be true in all
respects) as of such date.  Helm shall
have performed in all material respects the agreements, covenants and
obligations to be performed by it prior to the Closing Date.

 

12

 

9.             General Provisions.

 

9.1           Further Assurances.  The parties agree (a) to furnish upon
request to each other such further information, (b) to execute and deliver
to each other such other documents, and (c) to do such other acts and
things, all as the other party may reasonably request for the purpose of
carrying out the intent of this Agreement and the documents referred to in this
Agreement.

 

9.2           Waiver.  Neither the failure nor any
delay by any party in exercising any right, power, or privilege under this
Agreement or the documents referred to in this Agreement will operate as a
waiver of such right, power, or privilege, and no single or partial exercise of
any such right, power, or privilege will preclude any other or further exercise
of such right, power, or privilege or the exercise of any other right, power,
or privilege. To the maximum extent permitted by applicable law, (a) no
claim or right arising out of this Agreement or the documents referred to in
this Agreement can be discharged by one party, in whole or in part, by a waiver
or renunciation of the claim or right unless in writing signed by the other
party; (b) no waiver that may be given by a party will be applicable
except in the specific instance for which it is given; and (c) no notice
to or demand on one party will be deemed to be a waiver of any obligation of
such party or of the right of the party giving such notice or demand to take
further action without notice or demand as provided in this Agreement or the
documents referred to in this Agreement.

 

9.3           Entire Agreement and Modification.  This Agreement supersedes all prior agreements
between the parties with respect to its subject matter and constitutes (along
with the documents referred to in this Agreement) a complete and exclusive
statement of the terms of the agreement between the parties with respect to its
subject matter. This Agreement may not be amended except by a written agreement
executed by the party to be charged with performance under the amendment.

 

9.4           Assignments, Successors, and No
Third-Party Rights.  This Agreement will apply to, be binding in
all respects upon, and inure to the benefit of the successors and permitted
assigns of the parties, their personal representatives and executors. Nothing
expressed or referred to in this Agreement will be construed to give any Person
other than the parties to this Agreement any legal or equitable right, remedy,
or claim under or with respect to this Agreement or any provision of this
Agreement. This Agreement and all of its provisions and conditions are for the
sole and exclusive benefit of the parties to this Agreement and their
successors and assigns.

 

9.5           Severability. 
If any provision of this Agreement is held invalid or unenforceable by
any court of competent jurisdiction, the other provisions of this Agreement
will remain in full force and effect. Any provision of this Agreement held
invalid or unenforceable only in part or degree will remain in full force and
effect to the extent not held invalid or unenforceable.

 

9.6           Section Headings, Construction.  The headings of sections in this Agreement are
provided for convenience only and will not affect its construction or
interpretation. All references to “Section” or “Sections” refer to the
corresponding Section or Sections of this Agreement. All words used in
this Agreement will be construed to be of such gender or number as the
circumstances require. Unless otherwise expressly provided, the word “including”
does not limit the preceding words or terms.

 

13

 

9.7           Governing Law. 
This Agreement will be governed by the laws of the State of New York
without regard to conflicts of laws principles.

 

9.8           Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original of this Agreement and all of which, when
taken together, will be deemed to constitute one and the same agreement.

 

9.9           Survival of Representations, Warranties
and Agreements.  All representations, warranties, covenants
and obligations in this Agreement will survive until the expiration of the
applicable statute of limitations period.

 

IN WITNESS WHEREOF, the
parties have executed and delivered this Agreement as of the date first written
above.

 

	
  HELM CAPITAL GROUP,
  INC.

  	
   

  	
  GBS LABS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HELM PHARMACEUTICALS,
  INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

14Exhibit 10.1

 

January 10, 2005

 

Confidential

 

Steve Coggins

 

Dear
Steve

 

I am
writing formally to accept your notice of resignation from SGI and SGI Ltd.  We appreciate your willingness to continue
your service to SGI during the notice period prior to your retirement subject to
the following changes to your role and to your employment terms and conditions
during your notice period.

 

Changes to terms and conditions of employment effective 10 January 2005

 

	
  New role/job title

  	
  Chairman
  EMEA

  
	
   

  	
   

  
	
  Reporting  to

  	
  Chairman/CEO

  
	
   

  	
   

  
	
  Remuneration

  	
  You
  will be paid a basic salary of £18,000 for the remainder of the month of
  January, via the payroll in the normal way.

  
	
   

  	
   

  
	
  Bonuses

  	
  You
  will no longer be eligible for the Sales Executive Compensation Plan,
  Executive Incentive Plan or any other SGI bonus programme and your
  participation in any bonus programme applicable for Q3 FY05 and beyond is
  terminated without proration.

  
	
   

  	
   

  
	
  Employment Continuation

  Agreement

  	
  The
  Employment Continuation  Agreement
  dated as of 23 October 2001 between you and SGI is terminated effective 10
  January 2005 and will have no further force and effect.

  
	
   

  	
   

  
	
  Officer/ Directorships

  	
  Effective
  10 January 2005, you will no longer be an officer of SGI. You will resign
  your positions as officer and/or director of any affiliate of SGI immediately
  upon the earlier of (i) the End Date (as defined below) or (ii) the request
  of the EMEA Legal Director.

  

 

 

	
  Proprietary Information

  	
  All
  terms of your Employee Non-Disclosure Agreement will continue in full force
  and effect.

  

 

Changes to terms and conditions of employment effective 1 February 2005

 

	
  Hours of work

  	
  From
  1 February 2005  to the End Date  you will work on a part-time basis (25% of normal working
  month) until 30 June 2005 (in total, 27 days, less 3.5 days’ paid vacation =
  23.5 days) to be worked in line with business needs at the direction of
  Philippe Miltin and/or the CEO.

  
	
   

  	
   

  
	
  End Date

  	
  30
  June 2005 (or such later date as may be agreed pursuant to this agreement).  Any extensions beyond this planned End Date will be made
  by mutual written agreement on a month by month basis. You will not be
  entitled to receive any redundancy or other termination payment at the End
  Date, or to any pay in lieu of notice.

  
	
   

  	
   

  
	
  Remuneration

  	
  You
  will be paid a basic salary of £6,000 per month from 1 February – 30 June
  (Full time annual equivalent of £72,000), via the payroll in the normal way.
  Any additional days worked during this period must be agreed in advance and
  in writing with the Chairman/CEO and will be paid on a pro-rata basis.

  

 

Your
employment benefits effective 1 February 2005

 

	
  Car Allowance

  	
  Car
  Allowance of £1,030 per month

  
	
   

  	
   

  
	
  Paid holidays

  	
  Your
  prorated paid holiday entitlement will be 2 days in January. From February –
  June it will be 3.5 days including public holiday allowance. (From February, holidays will accrue at .5 days plus .2 days’ public
  holiday, so total .7 of a day per month)

  
	
   

  	
   

  
	
  Pension

  	
  Your
  monthly employee and employer pension contributions will be based on your new
  basic annualized salary.

  
	
   

  	
   

  
	
  Life  assurance

  	
  Your
  life assurance cover will continue but will be based on your new basic
  annualized salary.

  
	
   

  	
   

  
	
  Sick pay &

  Permanent

  Health insurance

  	
  Your
  entitlement to permanent health insurance cover will continue but any
  benefits paid will be based on your new basic annualized salary.

  

 

2

 

	
  Travel insurance

  	
  Your
  Travel Insurance cover under BUPA and your cover under the Global Business
  Travel Policy will continue unchanged.

  
	
   

  	
   

  	
   

  
	
  EAR

  	
  You
  will continue to be eligible to use the EAR scheme.

  
	
   

  	
   

  	
   

  
	
  ESPP

  	
  You
  will no longer be eligible to participate in the Employee Stock Purchase Plan
  as under the plan rules, employees must work at least 20 hours per week.

  
	
   

  	
   

  	
   

  
	
  Stock Options

  	
  Your
  stock options will continue to vest during this extended notice period
  pursuant to the terms of the Amended and Restated 1993 Long-Term Incentive
  Stock Plan and applicable option agreement(s). Following the End
  Date, you may exercise all the stock options which have vested up to your End
  Date in accordance with the terms of the applicable option agreement(s).

  

 

All
other terms and conditions of your employment will remain unchanged. Please
confirm your acceptance of these terms and conditions by signing below and
returning this letter to me.

 

Yours
sincerely,

 

 

/s/
Larry Hicks

 

Larry
Hicks

VP
Human Resources

 

For
Silicon Graphics Ltd and Silicon Graphics, Inc.

 

I confirm
my acceptance of the above terms and conditions

 

 

	
  Signed

  	
  /s/ Steve Coggins

  	
   

  	
  Name

  	
  Steve Coggins

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
  1/10/05

  	
   

  	
   

  	
   

  
							

 

3

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