Document:

Agreement between Quepasa.com and Vayala Corp

Table of Contents

  
 EXHIBIT 10.15 
  
 AGREEMENT 
 CONCERNING THE EXCHANGE OF SECURITIES 
  
 BY AND AMONG 
 quepasa.com, inc. 

AND 
 VAYALA CORPORATION 

Table of Contents

  
 
TABLE OF CONTENTS 
  
 
	  	  	  	  	 Page
 

	 ARTICLE I—
Exchange of Securities 
 	  	 1
 
	         1.1
 	  	 
Issuance of Securities 
 	  	 1
 
	         1.2
 	  	 
Earn-Out Provisions 
 	  	 1
 
	         1.3
 	  	 
Exemption from Registration 
 	  	 2
 
	 
	 ARTICLE II—
Representations and Warranties of Vayala 
 	  	 2
 
	         2.1
 	  	 
Organization 
 	  	 2
 
	         2.2
 	  	 
Capital 
 	  	 2
 
	         2.3
 	  	 
Subsidiaries 
 	  	  
	         2.4
 	  	 
Directors and Officers 
 	  	 3
 
	         2.5
 	  	 
Financial Statements 
 	  	 3
 
	         2.6
 	  	 
Absence of Changes 
 	  	 3
 
	         2.7
 	  	 
Absence of Undisclosed Liabilities 
 	  	 3
 
	         2.8
 	  	 
Tax Returns 
 	  	 3
 
	         2.9
 	  	 
Investigation of Financial Condition 
 	  	 3
 
	       2.10
 	  	 
Proprietary Rights 
 	  	 3
 
	       2.11
 	  	 
Compliance with Laws 
 	  	 3
 
	       2.12
 	  	 
Litigation 
 	  	 4
 
	       2.13
 	  	 
Authority 
 	  	 4
 
	       2.14
 	  	 
Ability to Carry Out Obligations 
 	  	 4
 
	       2.15
 	  	 
Full Disclosure 
 	  	 4
 
	       2.16
 	  	 
Assets 
 	  	 4
 
	       2.17
 	  	 
Material Contracts 
 	  	 4
 
	       2.18
 	  	 
Indemnification 
 	  	 4
 
	       2.19
 	  	 
Criminal or Civil Acts 
 	  	 5
 
	       2.20
 	  	 
Restricted Securities 
 	  	 5
 
	       2.21
 	  	 
Conflict Waiver 
 	  	 5
 
	 
	 ARTICLE III—
Representations and Warranties of quepasa 
 	  	 5
 
	         3.1
 	  	 
Organization 
 	  	 5
 
	         3.2
 	  	 
Capital 
 	  	 5
 
	         3.3
 	  	 
Subsidiaries 
 	  	 5
 
	         3.4
 	  	 
Directors and Officers 
 	  	 5
 
	         3.5
 	  	 
Financial Statements 
 	  	 6
 
	         3.6
 	  	 
Absence of Changes 
 	  	 6
 
	         3.7
 	  	 
Absence of Undisclosed Liabilities 
 	  	 6
 
	         3.8
 	  	 
Tax Returns 
 	  	 6
 
	         3.9
 	  	 
Investigation of Financial Condition 
 	  	 6
 
	       3.10
 	  	 
Proprietary Rights 
 	  	 6
 
	       3.11
 	  	 
Compliance with Laws
 	  	 6
 

 

 
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	       3.12
 	  	 
Litigation 
 	  	 6
 
	       3.13
 	  	 
Authority 
 	  	 6
 
	       3.14
 	  	 
Ability to Carry Out Obligations
 	  	 7
 
	       3.15
 	  	 
Full Disclosure
 	  	 7
 
	       3.16
 	  	 
Assets
 	  	 7
 
	       3.17
 	  	 
Material Contracts
 	  	 7
 
	       3.18
 	  	 
Indemnification
 	  	 7
 
	       3.19
 	  	 
Criminal or Civil Acts 
 	  	 7
 
	       3.20
 	  	 
Conflict Waiver
 	  	 7
 
	 
	 
ARTICLE IV—Covenants Prior to the Closing Date
 	  	 8
 
	         4.1
 	  	 
Investigative Rights
 	  	 8
 
	         4.2
 	  	 
Conduct of Business
 	  	 8
 
	 
	 
ARTICLE V—Conditions Precedent to quepasa’s Performance
 	  	 8
 
	         5.1
 	  	 
Conditions
 	  	 8
 
	         5.2
 	  	 
Accuracy of Representations
 	  	 8
 
	         5.3
 	  	 
Performance
 	  	 8
 
	         5.4
 	  	 
Absence of Litigation
 	  	 9
 
	         5.5
 	  	 
Officer’s Certificate 
 	  	 9
 
	         5.6
 	  	 
Corporate Action
 	  	 9
 
	         5.7
 	  	 
Fairness Opinion
 	  	 9
 
	 
	 
ARTICLE VI—Conditions Precedent to Vayala’s Performance
 	  	 9
 
	         6.1
 	  	 
Conditions
 	  	 9
 
	         6.2
 	  	 
Accuracy of Representations 
 	  	 9
 
	         6.3
 	  	 
Performance
 	  	 9
 
	         6.4
 	  	 
Absence of Litigation
 	  	 9
 
	         6.5
 	  	 
Officer’s Certificate
 	  	 10
 
	         6.6
 	  	 
Directors of Vayala
 	  	 10
 
	         6.7
 	  	 
Officers of Vayala
 	  	 10
 
	 
	 
ARTICLE VII—Closing
 	  	 10
 
	         7.1
 	  	 
Closing
 	  	 10
 
	 
	 
ARTICLE VIII—Miscellaneous
 	  	 10
 
	         8.1
 	  	 
Captions and Headings
 	  	 10
 
	         8.2
 	  	 
No Oral Change
 	  	 11
 
	         8.3
 	  	 
Non-Waiver
 	  	 11
 
	         8.4
 	  	 
Time of Essence 
 	  	 11
 
	         8.5
 	  	 
Entire Agreement
 	  	 11
 
	         8.6
 	  	 
Choice of Law
 	  	 11
 
	         8.7
 	  	 
Counterparts
 	  	 11
 

 

 
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	         8.8
 	  	 
Notices
 	  	 11
 
	         8.9
 	  	 
Binding Effect 
 	  	 11
 
	       8.10
 	  	 
Mutual Cooperation
 	  	 12
 
	       8.11
 	  	 
Finders’ Fees
 	  	 12
 
	       8.12
 	  	 
Announcements
 	  	 12
 
	       8.13
 	  	 
Expenses
 	  	 12
 
	       8.14
 	  	 
Survival of Representations and Warranties 
 	  	 12
 
	       8.15
 	  	 
Exhibits
 	  	 12
 

 
  
 EXHIBITS 
  
 
	 Allocation of Securities
 	  	 Exhibit 1.1
 
	 Subscription Agreement
 	  	 Exhibit 1.3
 
	 Financial Statements of Vayala
 	  	 Exhibit 2.5
 
	 Financial Statements of quepasa
 	  	 Exhibit 3.5
 

 

 
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 AGREEMENT CONCERNING THE EXCHANGE OF SECURITIES 
  
 THIS AGREEMENT CONCERNING THE EXCHANGE OF SECURITIES (“Agreement”) is made this 30th day of September, 2002, by and between
quepasa.com, inc., a Nevada corporation (“quepasa”), Vayala Corporation, a Delaware corporation (“Vayala”), and the security holders of Vayala (the “Vayala Security Holders”) who are listed on Exhibit 1.1
hereto and have executed Subscription Agreements in the form attached in Exhibit 1.2, hereto. 
  
 WHEREAS, quepasa
desires to acquire all of the issued and outstanding securities of Vayala from the Vayala Security Holders in exchange for newly issued unregistered securities of quepasa; 
  
 WHEREAS, Vayala desires to assist quepasa in acquiring all of the issued and outstanding common stock of Vayala pursuant to the terms of this Agreement; and 

 
 WHEREAS, all of the Vayala Security Holders, by execution of Exhibit 1.2 hereto, agree to exchange all 4,768,962 common shares
of Vayala for 10,000,000 common shares of quepasa at the initial rate of 2.0968923 quepasa shares for each Vayala share and subject to the additional earn-out provisions set forth in Section 1.2. 
  

NOW, THEREFORE, in consideration of the mutual promises, covenants and representations contained herein, THE PARTIES HERETO AGREE AS FOLLOWS: 
  
 ARTICLE I 
  
 
Exchange of Securities 
  
 1.1  
Issuance of Securities.    Subject to the terms and conditions of this Agreement, quepasa agrees to issue and exchange 10,000,000 fully paid and non-assessable unregistered shares of quepasa’s
$.001 par value common stock for all 4,768,962 issued and outstanding shares of the $.0001 par value common stock of Vayala (the “Vayala Shares”) held by the Vayala Security Holders. The quepasa shares will be issued directly to the Vayala
Security Holders at the rate of one share of quepasa for each 2.0968923 shares of Vayala on the Closing Date, pursuant to the schedule set forth in Exhibit 1.1. 
  
 1.2  
Earn-Out Provisions.    If, within 12 months from the Closing Date, Vayala meets certain performance milestones as described below, quepasa shall issue (i) up to an additional 22,000,000 shares of
its common stock and (ii) stock options (the “Stock Options”) to purchase up to an additional 65,000,000 quepasa shares at $.00001 per share exercisable within 30 days from the date such Stock Options are issued. The quepasa shares and
quepasa Stock Options are collectively referred to as the “quepasa Securities.” All quepasa Securities will be issued on a pro rata basis to the Vayala Security Holders based upon their ownership of Vayala Shares as set forth in Exhibit
1.1. quepasa warrants that it will promptly seek its shareholders’ approval to authorize any shares of common stock required to be issued under this Agreement to the extent such shares are otherwise not available for issuance. The Vayala
milestones and quepasa Securities to be issued in accordance with those milestones are separate transactions, such that if 

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 any one obligation to issue quepasa shares for a particular milestone is determined not to be
enforceable for any reason, all other issuances under milestones will remain in force. The milestones are as follows: 
  
 (a)  In the event (i) Vayala’s search and e-mail products have been brought fully online, and found to meet commercially acceptable standards for reliability and performance by a independent third party
technology industry expert, as selected by quepasa’s board of directors, (ii) Vayala’s search database has grown to at least 200 million documents, (iii) Vayala’s e-mail database has grown to at least 25,000 users, and (iv)
Vayala’s search and e-mail services have been independently tested and found to offer the performance benchmarks described in Exhibit 1.2, then quepasa shall issue an additional 10,000,000 shares of its common stock and 15,000,000 Stock Options
to the Vayala Security Holders. 
  
 (b)  In the event Vayala generates (i) $25,000 of
revenue from its e-mail services and (ii) $250,000 of revenue from resales of its search technology, then quepasa shall issued an additional 12,000,000 shares of its common stock and 50,000,000 Stock Options to the Vayala Security Holders.

  
 (c)  If quepasa’s last reported common stock sales price on the Electronic
Bulletin Board is less than $.03 per share on the Closing Date (or on the issuance dates for shares issuable under the milestones), then the number of such quepasa shares to be issued shall be increased by 25%. However, shares issued in prior
issuances will not be increased. 
  
 1.3  
Exemption from Registration.    The parties hereto intend that the quepasa Securities shall be exempt from the registration requirements of the Securities Act of 1933, as amended (the
“Act”), pursuant to Section 4(2) of the Act and the rules and regulations promulgated thereunder. In furtherance thereof, the Vayala Security Holders will execute and deliver to quepasa on the Closing Date a copy of the Subscription
Agreement set forth in Exhibit 1.3 hereto. 
  
 ARTICLE II 
  
 
Representations and Warranties of Vayala 
  
 Vayala hereby represents and warrants to
quepasa that: 
  
 2.1  
Organization.    Vayala is a corporation duly organized, validly existing and in good standing under the laws of Delaware, has all necessary corporate powers to own its properties and to carry on
its business as now owned and operated by it, and is duly qualified to carry on its business as operated by it. 
  
 2.2  
Capital.    The authorized capital stock of Vayala consists of 50,000,000 authorized shares of $.0001 par value common stock, of which 4,768,962 shares of common stock are outstanding and 5,000,000
shares of preferred stock, $.0001 par value, none of which are 

 
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 outstanding. All of the outstanding securities of Vayala are duly and validly issued, fully paid and non-assessable. There are no outstanding
subscriptions, options, rights, warrants, debentures, instruments, convertible securities or other agreements or commitments obligating Vayala to issue or to transfer from treasury any additional shares of its capital stock of any class.

  
 2.3  
Subsidiaries.    Vayala has no subsidiaries. 
  
 2.4  
Directors and Officers.    The names and titles of the directors and officers of Vayala as of the date of this Agreement are as follows: Jeffrey S. Peterson, Chairman of the Board of Directors and
Chief Executive Officer; David S. Hansen, Chief Technology Officer and Director; Albert Chen, Executive Vice President and Director; and Brian Lu, Director. 
  
 2.5  
Financial Statements.    Exhibit 2.5 hereto consists of the unaudited financial statements of Vayala for the year ended December 31, 2002 and the seven months ended July 31, 2002 (the “Vayala
Financial Statements”). The Vayala Financial Statements have been prepared in accordance with generally accepted accounting principles and practices consistently followed by Vayala throughout the periods indicated, and fairly present the
financial position of Vayala as of the date of the balance sheets included in the Vayala Financial Statements and the results of operations for the periods then ended. 
  
 2.6  
Absence of Changes.    Since July 31, 2002, there has not been any material change in the financial condition or operations of Vayala, other than changes in the ordinary course of business, which
changes have not in the aggregate been materially adverse. 
  
 2.7  
Absence of Undisclosed Liabilities.    As of July 31, 2002, Vayala did not have any material debt, liability or obligation known to its management of any nature, whether accrued, absolute,
contingent or otherwise, and whether due or to become due, that is not reflected in the Vayala Financial Statements. 
  
 2.8  
Tax Returns.    Vayala has paid all material tax obligations in connection with its federal, state and local tax returns. 
  
 2.9  
Investigation of Financial Condition.    Without in any manner reducing or otherwise mitigating the representations contained herein, quepasa, its legal counsel and accountants shall have the
opportunity to meet with Vayala’s accountants and attorneys to discuss the financial condition of Vayala. Vayala shall make available to quepasa all books and records of Vayala. 
  
 2.10  
Proprietary Rights.    Vayala owns and holds all proprietary rights, trademarks, trade names and licenses necessary to conduct its business. 
  

2.11  
Compliance with Laws.    Vayala has complied with, and is not in violation of, applicable federal, state or local statutes, laws and regulations, including federal and state securities laws.

 
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 2.12  
Litigation.    Vayala is not a defendant in any material suit, action, arbitration or legal, administrative or other proceeding, or governmental investigation which is pending or, to the best
knowledge of Vayala, threatened against or affecting Vayala or its business, assets or financial condition. Vayala is not in default with respect to any order, writ, injunction or decree of any federal, state, local or foreign court, department,
agency or instrumentality applicable to it. Vayala is not engaged in any material litigation to recover monies due to it. 
  
 2.13  
Authority.    The Board of Directors of Vayala has authorized the execution of this Agreement and the consummation of the transactions contemplated herein, and Vayala has full power and authority
to execute, deliver and perform this Agreement, and this Agreement is a legal, valid and binding obligation of Vayala and is enforceable in accordance with its terms and conditions. By execution of Exhibit 1.2, all of the Vayala Security Holders
have agreed to and have approved the terms of this Agreement. 
  
 2.14  
Ability to Carry Out Obligations.    The execution and delivery of this Agreement by Vayala and the performance by Vayala of its obligations hereunder in the time and manner contemplated will not
cause, constitute or conflict with or result in (a) any breach or violation of any of the provisions of or constitute a default under any license, indenture, mortgage, instrument, article of incorporation, bylaw, or other agreement or instrument to
which Vayala is a party, or by which it may be bound, nor will any consents or authorizations of any party other than those hereto be required, (b) an event that would permit any party to any agreement or instrument to terminate it or to accelerate
the maturity of any indebtedness or other obligation of Vayala, or (c) an event that would result in the creation or imposition of any lien, charge or encumbrance on any asset of Vayala. 
  
 2.15  
Full Disclosure.    None of the representations and warranties made by Vayala herein or in any exhibit, certificate or memorandum furnished or to be furnished by Vayala, or on its behalf, contains
or will contain any untrue statement of material fact or omit any material fact the omission of which would be misleading. 
  
 2.16  
Assets.    Vayala has good and marketable title to all of its assets, free and clear of all liens, claims and encumbrances, except as otherwise indicated in Exhibit 2.5. 
  
 2.17  
Material Contracts.    Vayala has not entered into any material contracts except for its contract with Level 3 Communications, Inc. under which Vayala pays $50,000 per year for Internet data center
services. 
  
 2.18  
Indemnification.    Vayala agrees to indemnify, defend and hold quepasa harmless against and in respect of any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages,
recoveries and deficiencies, including interest, penalties and reasonable attorney fees, that it shall incur or suffer, which arise out of, or result from (i) any breach by Vayala in performing any of its covenants or agreements under this Agreement
or in any schedule, certificate, exhibit or other instrument furnished or to be furnished by Vayala under this Agreement or (ii) any untrue statement made by Vayala in this Agreement. 

 
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 2.19  
Criminal or Civil Acts.    For the period of five years prior to the execution of this Agreement, no executive officer, director or principal stockholder of Vayala has been convicted of a felony
crime, filed for personal bankruptcy, been the subject of a Commission judgment or decree, or is currently the subject to any investigation in connection with a felony crime or Commission proceeding. 
  
 2.20  
Restricted Securities.    Vayala and the Vayala Security Holders, by execution of this Agreement and of Exhibit 1.2, acknowledge that all of the quepasa Securities issued by quepasa are restricted
securities and none of such securities may be sold or publicly traded except in accordance with the provisions of the Act. 
  
 2.21  
Conflict Waiver.    Gary A. Agron of The Law Office of Gary A. Agron has previously provided legal services to both Vayala and quepasa. Vayala and quepasa have elected to use Mr. Agron to prepare
this Agreement. Vayala and quepasa waive any conflict of interest or potential for conflict of interest on the part of Mr. Agron that might otherwise develop in connection with Mr. Agron’s preparation of this Agreement and all other legal
services to be provided by Mr. Agron through the Closing Date. 
  
 ARTICLE III 
  
 
Representations and Warranties of quepasa 
  
 quepasa represents and warrants to
Vayala that: 
  
 3.1  
Organization.    quepasa is a corporation duly organized, validly existing and in good standing under the laws of Nevada, has all necessary corporate powers to carry on its business, and is duly
qualified to carry on its business as operated by it. 
  
 3.2  
Capital.    The authorized capital stock of quepasa consists of (i) 50,000,000 shares of $.001 par value common stock, of which 19,513,291 shares of common stock are issued and outstanding as of
October 4, 2002, and (ii) 5,000,000 shares of $.001 par value preferred stock, none of which are issued and outstanding. All of the outstanding securities are duly and validly issued, fully paid and non-assessable. There are no other outstanding
subscriptions, options, rights, warrants, debentures, instruments, convertible securities or other agreements or commitments obligating quepasa to issue or to transfer from treasury any additional shares of its capital stock of any class except
shares issuable under this Agreement. 
  
 3.3  
Subsidiaries.    quepasa has two non-operating subsidiaries, neither of which has a material amount of assets or liabilities. quepasa is also in the process of establishing a Mexican subsidiary.

  
 3.4  
Directors and Officers.    The names and titles of the directors and officers of quepasa are as follows: Jeffrey S. Peterson, Chairman of the Board of Directors, Chief Executive Officer and Chief
Financial Officer; James Dixon, Vice President; Michael Silberman, Director; and Brian Lu, Director. 

 
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 3.5  
Financial Statements.    Exhibit 3.5 hereto consists of the audited financial statements of quepasa for the year ended December 31, 2001 and unaudited financial statements for the three months
ended June 30, 2002 (the “quepasa Financial Statements”). The quepasa Financial Statements have been prepared in accordance with generally accepted accounting principles and practices consistently followed by quepasa throughout the period
indicated, and fairly present the financial position of quepasa as of the dates of the balance sheet included in the quepasa Financial Statements and the results of operations for the period indicated. 
  
 3.6  
Absence of Changes.    Since June 30, 2002, there has not been any material change in the financial condition or operations of quepasa, except as contemplated by this Agreement. 

 
 3.7  
Absence of Undisclosed Liabilities.    As of June 30, 2002, quepasa did not have any material debt, liability or obligation known to its management of any nature, whether accrued, absolute,
contingent or otherwise, and whether due or to become due, that is not reflected in the quepasa Financial Statements. 
  
 3.8  
Tax Returns.    quepasa has paid all material tax obligations in connection with its federal, state and local tax returns. 
  
 3.9  
Investigation of Financial Condition.    Without in any manner reducing or otherwise mitigating the representations contained herein, Vayala, its legal counsel and accountants shall have the
opportunity to meet with quepasa’s accountants and attorneys to discuss the financial condition of quepasa. quepasa shall make available to Vayala all books and records of quepasa. 
  
 3.10  
Proprietary Rights.    quepasa holds all proprietary rights, trademarks and trade names necessary to conduct its business. 
  
 3.11  
Compliance with Laws.    quepasa has complied with, and is not in violation of, applicable federal, state or local statutes, laws or regulations including federal and state securities laws.

  
 3.12  
Litigation.    quepasa is not a defendant in any material suit, action, arbitration, or legal, administrative or other proceeding, or governmental investigation which is pending or, to the best
knowledge of quepasa, threatened against or affecting quepasa or its business, assets or financial condition. quepasa is not in default with respect to any order, writ, injunction or decree of any federal, state, local or foreign court, department,
agency or instrumentality applicable to it. quepasa is not engaged in any material litigation to recover monies due to it. 
  
 3.13  
Authority.    The Board of Directors of quepasa has authorized the execution of this Agreement and the transactions contemplated herein, and quepasa has full power and authority to execute, deliver
and perform this Agreement, and this Agreement is the legal, valid and binding obligation of quepasa, and is enforceable in accordance with its terms and conditions. 

 
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 3.14  
Ability to Carry Out Obligations.    The execution and delivery of this Agreement by quepasa and the performance by quepasa of its obligations hereunder will not cause, constitute or conflict with
or result in (a) any breach or violation of any of the provisions of or constitute a default under any license, indenture, mortgage, instrument, article of incorporation, bylaw or other agreement or instrument to which quepasa is a party, or by
which it may be bound, nor will any consents or authorization of any party other than those hereto be required, (b) an event that would permit any party to any agreement or instrument to terminate it or to accelerate the maturity of any indebtedness
or other obligation of quepasa, or (c) an event that would result in the creation or imposition of any lien, charge or encumbrance on any asset of quepasa. 
  
 3.15  
Full Disclosure.    None of the representations and warranties made by quepasa herein, or in any exhibit, certificate or memorandum furnished or to be furnished by quepasa or on its behalf,
contains or will contain any untrue statement of material fact or omit any material fact the omission of which would be misleading. 
  
 3.16  
Assets.    quepasa has good and marketable title to all of its assets, free and clear of all liens, claims and encumbrances except as otherwise indicated in Exhibit 3.5. 
  
 3.17  
Material Contracts.    quepasa has no material contracts except those described in its regulatory filings made with the Securities and Exchange Commission. 
  
 3.18  
Indemnification.    quepasa agrees to indemnify, defend and hold Vayala harmless against and in respect of any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages,
recoveries and deficiencies, including interest, penalties, and reasonable attorney fees, that it shall incur or suffer, which arise out of, or result from (i) any breach by quepasa in performing any of its covenants or agreements in this Agreement
or in any schedule, certificate, exhibit or other instrument furnished or to be furnished by quepasa under this Agreement, or (ii) any untrue statement made by quepasa in this Agreement. 
  
 3.19  
Criminal or Civil Acts.    For a period of five years prior to the execution of this Agreement, no executive officer, director or principal stockholder of quepasa has been convicted of a felony
crime, filed for personal bankruptcy, been the subject of a Commission judgment or decree, or is currently the subject to an investigation in connection with any felony crime or Commission proceeding. 
  
 3.20  
Conflict Waiver.    Gary A. Agron of The Law Offices of Gary A. Agron has previously provided legal services to both Vayala and quepasa. Vayala and quepasa have elected to use Mr. Agron to
represent them in connection with the transaction contemplated by this Agreement. quepasa waives any conflict of interest or potential for conflict of interest on the part of Mr. Agron that might otherwise develop in connection with the transaction
contemplated by this Agreement. 

 
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 ARTICLE IV 
  
 
Covenants Prior to the Closing Date 
  
 4.1  
Investigative Rights.    Prior to the Closing Date, each party shall provide to the other party, and such other party’s counsel, accountants, auditors and other authorized representatives,
full access during normal business hours and upon reasonable advance written notice to all of each party’s properties, books, contracts, commitments and records for the purpose of examining the same. Each party shall furnish the other party
with all information concerning each party’s affairs as the other party may reasonably request. 
  
 4.2  
Conduct of Business.    Prior to the Closing Date, each party shall conduct its business in the normal course and shall not sell, pledge or assign any assets without the prior written approval of
the other party, except in the normal course of business. Neither party shall amend its Articles of Incorporation or Bylaws (except as may be described in this Agreement), declare dividends, redeem or sell stock or other securities, incur additional
or newly-funded liabilities, acquire or dispose of fixed assets, change employment terms, enter into any material or long-term contract, guarantee obligations of any third party, settle or discharge any balance sheet receivable for less than its
stated amount, pay more on any liability than its stated amount, or enter into any other transaction other than in the normal course of business. Neither party shall enter into negotiations with any third party or complete any transaction with a
third party involving the sale of any of its assets or the exchange of any of its common stock. 
  
 ARTICLE V

  
 
Conditions Precedent to quepasa’s Performance 
  
 5.1  
Conditions.    quepasa’s obligations hereunder shall be subject to the satisfaction at or before the Closing of all the conditions set forth in this Article V. quepasa may waive any or all of
these conditions in whole or in part without prior notice; provided, however, that no such waiver of a condition shall constitute a waiver by quepasa of any other condition of or any of quepasa’s other rights or remedies, at law or in equity,
if Vayala shall be in default of any of its representations, warranties or covenants under this Agreement. 
  
 5.2  
Accuracy of Representations.    Except as otherwise permitted by this Agreement, all representations and warranties by Vayala in this Agreement or in any written statement that shall be delivered
to quepasa by Vayala under this Agreement shall be true and accurate on and as of the Closing Date as though made at that time. 
  
 5.3  
Performance.    Vayala shall have performed, satisfied and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by it on or before the
Closing Date. 

 
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 5.4  
Absence of Litigation.    No action, suit, or proceeding before any court or any governmental body or authority, pertaining to the transaction contemplated by this Agreement or to its consummation,
shall have been instituted or threatened against Vayala on or before the Closing Date. 
  
 5.5  
Officer’s Certificate.    Vayala shall have delivered to quepasa a certificate dated the Closing Date signed by the Chief Executive Officer of Vayala certifying that each of the conditions
specified in this Article has been fulfilled and that all of the representations set forth in Article II are true and correct as of the Closing Date. 
  
 5.6  
Corporate Action.    Vayala shall have obtained the approval of the Vayala Security Holders for the transaction contemplated by this Agreement as evidenced by execution by all of the Vayala
Security Holders of Exhibit 1.2. 
  
 5.7  
Fairness Opinion.    The parties shall have received an opinion from an independent, non-affiliated securities or business brokerage firm stating that the transaction proposed by this Agreement and
the terms of this Agreement are fair and reasonable to both parties. 
  
 ARTICLE VI 
  
 
Conditions Precedent to Vayala’s Performance 
  
 6.1  
Conditions.    Vayala obligations hereunder shall be subject to the satisfaction at or before the Closing of all the conditions set forth in this Article VI. Vayala may waive any or all of these
conditions in whole or in part without prior notice; provided, however, that no such waiver of a condition shall constitute a waiver by Vayala of any other condition of or any of Vayala’s rights or remedies, at law or in equity, if quepasa
shall be in default of any of its representations, warranties or covenants under this Agreement. 
  
 6.2  
Accuracy of Representations.    Except as otherwise permitted by this Agreement, all representations and warranties by quepasa in this Agreement or in any written statement that shall be delivered
to Vayala by quepasa under this Agreement shall be true and accurate on and as of the Closing Date as though made at that time. 
  
 6.3  
Performance.    quepasa shall have performed, satisfied and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by it on or before the
Closing Date. 
  
 6.4  
Absence of Litigation.    No material action, suit or proceeding before any court or any governmental body or authority, pertaining to the transaction contemplated by this Agreement or to its
consummation, shall have been instituted or threatened against quepasa on or before the Closing Date. 

 
 9 

Table of Contents

  
 6.5  
Officer’s Certificate.    quepasa shall have delivered to Vayala a certificate dated the Closing Date signed by the Chief Executive Officer of quepasa certifying that each of the conditions
specified in this Article has been fulfilled and that all of the representations set forth in Article III are true and correct as of the Closing Date. 
  
 6.6  
Directors of Vayala.    On the Closing Date, the current directors of Vayala shall resign after electing the current directors of quepasa to be the directors of Vayala. 
  
 6.7  
Officers of Vayala.    On the Closing Date, the newly constituted Board of Directors of Vayala shall elect such officers of Vayala as they shall determine. 
  
 ARTICLE VII 
  
 
Closing 
  
 7.1  
Closing.    The Closing of this Agreement shall be held at the Law Office of Gary A. Agron, at any mutually agreeable time and date (the “Closing Date”) prior to October 15, 2002, unless
extended by mutual agreement. At the Closing: 
  
 (a)  Vayala shall deliver to quepasa
copies of Exhibit 1.2 executed by all of the Vayala Security Holders together with certificates representing all outstanding Vayala securities duly endorsed to quepasa; 
  
 (b)  quepasa shall deliver to the Vayala Security Holders 10,000,000 shares of quepasa’s common stock, for which the Vayala Shares have been
exchanged pursuant to the computations set forth in Exhibit 1.1 hereto and an undertaking to issue additional shares and warrants pursuant to the provisions of Section 1.2; 
  
 (c)  quepasa shall deliver (i) the officer’s certificate described in Section 6.5 and (ii) asigned consent and/or minutes of its directors
approving this Agreement and each matter to be approved under this Agreement, including quepasa’s obligation to issue additional shares to the Vayala Security Holders pursuant to the earn-out provisions of Section 1.2; 
  
 (d)  Vayala shall deliver (i) the officer’s certificate described in Section 5.5 and (ii) a signed consent
and/or minutes of its directors approving this Agreement and each matter to be approved under this Agreement. 
  
 ARTICLE
VIII 
  
 
Miscellaneous 
  
 8.1  
Captions and Headings.    The article and Section headings throughout this Agreement are for convenience and reference only and shall not define, limit or add to the meaning of any provision of
this Agreement. 

 
 10 

Table of Contents

  
 8.2  
No Oral Change.    This Agreement and any provision hereof may not be waived, changed, modified or discharged orally, but only by an agreement in writing signed by the party against whom
enforcement of any such waiver, change, modification or discharge is sought. 
  
 8.3  
Non-Waiver.    The failure of any party to insist in any one or more cases upon the performance of any of the provisions, covenants or conditions of this Agreement or to exercise any option herein
contained shall not be construed as a waiver or relinquishment for the future of any such provisions, covenants or conditions. No waiver by any party of one breach by another party shall be construed as a waiver with respect to any other subsequent
breach. 
  
 8.4  
Time of Essence.    Time is of the essence of this Agreement and of each and every provision hereof. 
  
 8.5  
Entire Agreement.    This Agreement contains the entire Agreement and understanding between the parties hereto and supersedes all prior agreements and understandings. 
  
 8.6  
Choice of Law.    This Agreement and its application shall be governed by the laws of the state of Arizona. 
  
 8.7  
Counterparts.    This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 
  
 8.8  
Notices.    All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given on the date of service if served personally
on the party to whom notice is to be given, or on the third day after mailing if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, and properly addressed as follows: 

 
 quepasa: 
  
 quepasa.com, inc. 
 410 N. 44th Street, Suite 450 
 Phoenix, AZ 85008 
 Attn: Jeffrey S. Peterson, Chief Executive Officer 
  
 Vayala: 
  
 Vayala Corporation

 5510 North 16th Street, Suite B-145 
 Phoenix, AZ 85016 
 Attn: Albert Chen, Executive Vice President 
  
 8.9  
Binding Effect.    This Agreement shall inure to and be binding upon the heirs, executors, personal representatives, successors and assigns of each of the parties to this Agreement. 

 
 11 

Table of Contents

  
 8.10  
Mutual Cooperation.    The parties hereto shall cooperate with each other to achieve the purpose of this Agreement and shall execute such other and further documents and take such other and further
actions as may be necessary or convenient to effect the transaction described herein. 
  
 8.11  
Finders’ Fees.    There are no finders’ fees payable in connection with this Agreement. 
  
 8.12  
Announcements.    The parties will consult and cooperate with each other as to the timing and content of any public announcements regarding this Agreement. 
  
 8.13  
Expenses.    Each party will bear their own expenses incurred in connection with this Agreement. 
  
 8.14  
Survival of Representations and Warranties.    The representations, warranties, covenants and agreements of the parties set forth in this Agreement or in any instrument, certificate, opinion or
other writing providing for in it, shall survive the Closing, including but not limited to the covenants set forth in Article VIII, above, and this Article IX. 
  
 8.15  
Exhibits.    As of the execution hereof, the parties have provided each other with the Exhibits described herein. Any material changes to the Exhibits shall be immediately disclosed to the other
party. 
  
 In witness whereof, the parties have executed this Agreement on the date indicated above. 

 
 
	 QUEPASA.COM,INC.
 	 	  	 	 VAYALA CORPORATION
 
	 
	 By:
 	 	 
	 	  	 	 By:
 	 	 

	  	 	 Jeffrey S. Peterson
 Chief
Executive Officer
 	 	  	 	  	 	 Albert Chen
 Executive Vice
President
 

 
  

 
 12 

Table of Contents

  
 EXHIBIT 1.1 
  
 SCHEDULE OF VAYALA COMMON STOCKHOLDERS 
 AND 
 ALLOCATION OF quepasa COMMON SHARES 
  
 
	 Name of Vayala
 Stockholder
 
	  	 Number of Vayala
 Shares
Exchanged
 
	  	 Number of quepasa
 Common Shares
To
 Be Issued
 

	 
	 Jeffrey S. Peterson
 	  	 1,850,000
 	  	 3,879,255
 
	 
	 Michael D. Silberman
 	  	 466,200
 	  	 977,571
 
	 
	 David Hansen
 	  	 418,904
 	  	 878,397
 
	 
	 Albert Chen
 	  	 200,000
 	  	 19,378
 
	 
	 Brian Lu
 	  	 298,443
 	  	 625,803
 
	 
	 Kevin Dieball
 	  	 398,443
 	  	 835,492
 
	 
	 Michael Marriott
 	  	 84,000
 	  	 176,139
 
	 
	 Ross C. Brown
 	  	 37,500
 	  	 78,633
 
	 
	 Karen L. Dickson
 	  	 12,500
 	  	 26,211
 
	 
	 Dwain & Kristen Durham
 	  	 6,250
 	  	 13,106
 
	 
	 Patrick & Samantha Potter
 	  	 18,750
 	  	 39,317
 
	 
	 Sandra K. Anderson
 	  	 31,250
 	  	 65,528
 
	 
	 Hazel R. Belt
 	  	 31,250
 	  	 65,528
 
	 
	 Nathan Call
 	  	 18,750
 	  	 39,317
 
	 
	 J. Steve & Kristy Beck
 	  	 25,000
 	  	 52,422
 
	 
	 Kenton J. Donahoo
 	  	 12,500
 	  	 26,211
 
	 
	 Harvey & JoAnn Mickelson
 	  	 12,500
 	  	 26,211
 
	 
	 Timothy L. & Joan Hintz
 	  	 50,000
 	  	 104,845
 
	 
	 Steven Horton
 	  	 18,750
 	  	 39,317
 

 

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	 Philip B. Marriott (Trustee)
 	  	 125,000
 	  	 262,112
 
	 
	 Philip B. & Cheryl V. Marriott
 	  	 62,500
 	  	 131,056
 
	 
	 Mitchell & Carol Pullman
 	  	 125,000
 	  	 262,112
 
	 
	 Unifi Group Cheng
 	  	 15,000
 	  	 31,453
 
	 
	 Ralph & Linda Eyre
 	  	 10,500
 	  	 22,017
 
	 
	 Anthony & Jason Hill
 	  	 10,500
 	  	 22,017
 
	 
	 Dennis Hong
 	  	 10,500
 	  	 22,017
 
	 
	 James Lee
 	  	 35,000
 	  	 73,391
 
	 
	 Paul E. Loven
 	  	 10,500
 	  	 22,017
 
	 
	 Hong & Lucy Lu
 	  	 10,500
 	  	 22,017
 
	 
	 Paul Mazursky
 	  	 35,000
 	  	 73,391
 
	 
	 Servando & Blanca Rojas
 	  	 17,507
 	  	 36,710
 
	 
	 Kevin & Kelly Lin Tam
 	  	 10,500
 	  	 22,017
 
	 
	 Victor R. & DeAnna Tom
 	  	 10,500
 	  	 22,017
 
	 
	 Peter Wang
 	  	 35,000
 	  	 73,391
 
	 
	 Barry Fuller (IRA)
 	  	 34,965
 	  	 73,318
 
	 
	 Li Wai Hang
 	  	 63,000
 	  	 132,104
 
	 
	 Dr. Thomas T.S. Liang
 	  	 20,000
 	  	 41,938
 
	 
	 Kyle Ozaki
 	  	 10,500
 	  	 22,017
 
	 
	 Li Kin Shing
 	  	 70,000
 	  	 146,782
 
	 
	 Albert Tung
 	  	 10,500
 	  	 22,017
 
	 
	 William Wier
 	  	 10,500
 	  	 22,017
 
	 
	 Ying Wu
 	  	 35,000
 	  	 73,391
 
	  	  	 
	  	 

	 
	 Totals
 	  	 4,768,962
 	  	 10,000,000
 
	  	  	 
	  	 

 
  

Table of Contents

  
 EXHIBIT 1.3 
  
 SUBSCRIPTION AGREEMENT 
  
 In connection
with my exchange of $.0001 par value common stock of Vayala Corporation (“Vayala”), for the $.001 par value common stock (the “quepasa Securities”) of quepasa.com, inc. (“quepasa”), I acknowledge the matters set forth
below and promise that the statements made herein are true. I understand that quepasa is relying on my truthfulness in issuing its securities to me. 
  
 I hereby represent and warrant to quepasa that I have the full power and authority to execute, deliver and perform this Subscription Agreement and to consummate the transactions contemplated hereby.
This Subscription Agreement is a legal, valid and binding obligation of mine, enforceable against me in accordance with its terms. I own the securities in Vayala that I am exchanging for securities of quepasa free and clear of all pledges, liens,
encumbrances, security interests, equities, claims, options, preemptive rights, rights of first refusal, or any other limitation on my ability to vote such securities or to transfer such securities to quepasa. I have full right, title and interest
in and to the Vayala securities that I am exchanging. 
  
 I understand that the quepasa Securities are being issued
to me in a private transaction in exchange for my securities in Vayala and in reliance upon the exemption provided in section 4(2) of the Securities Act of 1933, as amended (the “Act”) for non-public offerings and pursuant to the Agreement
Concerning the Exchange of Securities between quepasa and Vayala (“Agreement”). I understand that the quepasa Securities are “restricted” under applicable securities laws and may not be sold by me except in a registered offering
(which may not ever occur) or in a private transaction like this one. I know this is an illiquid investment and that therefore I may be required to hold the quepasa Securities for an indefinite period of time, but under no circumstances less than
one year from the date of its issuance. 
  
 I am acquiring the quepasa Securities solely for my own account, for
long-term investment purposes only and not with a view to sale or other distribution. I agree not to dispose of any quepasa Securities unless and until counsel for quepasa shall have determined that the intended disposition is permissible and does
not violate the Act, any applicable state securities laws or rules and regulations promulgated thereunder. 
  
 All
information, financial and otherwise, or documentation pertaining to all aspects of my acquisition of the quepasa Securities and the activities and financial information of quepasa has been made available to me and my representatives, if any, and I
have had ample opportunity to meet with and ask questions of senior officers of quepasa, and I have received satisfactory answers to any questions I asked. 
  
 In acquiring the quepasa Securities, I have reviewed the Agreement and have made such independent investigations of quepasa as I deemed appropriate. I am an experienced investor, have made speculative
investments in the past and am capable of analyzing the merits of an investment in the quepasa Securities. 

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 I understand that the quepasa Securities are highly speculative, involves a great
degree of risk and should only be acquired by individuals who can afford to lose their entire investment. Nevertheless, I consider this a suitable investment for me because I have adequate financial resources and income to maintain my current
standard of living even after my acquisition of the quepasa Securities. I understand that the market price of quepasa’s publicly traded securities can fluctuate dramatically from time to time, and that although I could lose my entire
investment, I am acquiring the quepasa Securities because I believe the potential rewards are commensurate with the risk. Even if the quepasa Securities became worthless, I could still maintain my standard of living without significant hardship on
me or my family. 
  
 I understand that quepasa and Vayala have substantially the same officers and directors.
Accordingly, the Agreement was not negotiated at “arm’s length” and may be more favorable to one company that it is to the other. However, I understand that the parties have agreed that they shall have received a fairness opinion on
or before the Closing Date of the Agreement. I am satisfied with the terms of the transaction and by signing this Subscription Agreement, I confirm that I accept and agree to abide by the terms and conditions of the Agreement as if I had executed
the Agreement itself. 
  
 Dated as of this      day of
                    , 2002. 
  
 
	 
	 
Signature
 
	 
	 
Name, Please Print
 
	 
	 
Residence Address
 
	 
	 
City, State and Zip Code
 
	 
	 
Area Code and Telephone Number
 
	 
	 
Social Security Number
 
	 
	 
Number of Vayala shares exchangedAssignment and Acceptance Agreement

  
 EXHIBIT 10(26) 
  
 ASSIGNMENT AND ACCEPTANCE AGREEMENT 
  
 Reference is made to the Amended and Restated Revolving and Term Loan Credit Agreement dated as of November 1, 200l (as amended, modified, supplemented, or restated to the Effective Date, the “Credit
Agreement”) among AZZ incorporated (“Borrower”), Bank of America, N.A., as Administrative Agent for Lenders (“Administrative Agent”), and Agents and
Lenders party thereto. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement. 
  
 “Assignor” and “Assignee” referred to on Schedule 1
agree as follows: 
  
 1.  Assignor hereby sells and assigns to Assignee, without recourse
and without representation or warranty except as expressly set forth herein, and Assignee hereby purchases and assumes from Assignor, an interest in and to Assignor’s Rights and obligations under the Credit Agreement and the related Loan
Documents as of the Effective Date equal to the percentage interest specified on Schedule 1 (the “Assigned Facility”). After giving effect to such sale and assignment, Assignee’s Committed Sum under such
Assigned Facility and the amount of the Principal Debt owed to Assignee under such Assigned Facility will be as set forth on Schedule 1. 
  
 2.  Assignor (a) represents and warrants that it is the legal and beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (b) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties, or representations made in or in connection with the Loan Documents or the execution,
legality, validity, enforceability, genuineness, sufficiency, or value of the Loan Documents or any other instrument or document furnished pursuant thereto; (c) makes no representation or warranty and assumes no responsibility with respect to the
financial condition of any party to any Loan Document or the performance or observance by any such party of any of its obligations under the Loan Documents or any other instrument or document furnished pursuant thereto; and (d) attaches the Notes
held by Assignor (to the extent any of the Principal Debt being assigned and owed to Assignor is evidenced by Notes) and requests that Administrative Agent exchange such Notes for new Notes if so requested by either Assignor or Assignee. Any such
new Notes shall be prepared in accordance with the provisions of Section 3.1(b) of the Credit Agreement and will reflect the respective Committed Sums or Principal Debt of Assignee and Assignor after giving effect to this Assignment
and Acceptance Agreement. 
  
 3.  Assignee (a) represents and warrants that it is legally
authorized to enter into this Assignment and Acceptance Agreement; (b) confirms that it has received a copy of the Credit Agreement, together with copies of the Current Financials and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance Agreement; (c) agrees that it will, independently and without reliance upon Administrative Agent, Assignor, or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (d) confirms that it is an Eligible Assignee; (e) appoints and authorizes
Administrative Agent to take such action as Administrative Agent on its behalf and to exercise such powers and discretion under the Credit Agreement as are delegated to Administrative Agent by the terms thereof, together with such
powers and discretion as are reasonably incidental thereto; (f) agrees that it will perform in accordance with their terms all of the obligations that by the terms of the Credit Agreement are required to be performed by it as a Lender; and (g)
attaches any U.S. Internal Revenue Service or other forms required under Section 46(d) of the Credit Agreement. 
  
 4.  Following the execution of this Assignment and Acceptance Agreement by Assignor, Assignee, and Borrower (to the extent required hereunder), it will be delivered to Administrative Agent
for acceptance and recording by Administrative Agent pursuant to the Credit Agreement. The effective date for this Assignment and Acceptance Agreement shall be the date set forth on Schedule I hereof (the
“‘Effective 

  
 Date”), which shall not, unless otherwise agreed to by
Administrative Agent in its sole discretion, be earlier than five Business Days from the date of such acceptance and recording by Administrative Agent. 
  
 5.  Upon such acceptance and recording by Administrative Agent, as of the Effective Date, (a) Assignee shall be a party to the Credit Agreement
and, to the extent provided in this Assignment and Acceptance Agreement, have the Rights and obligations of a Lender thereunder, and (b) Assignor shall, to the extent provided in this Assignment and Acceptance Agreement, relinquish its Rights and be
released from its obligations under the Agreement. 
  
 6.  Upon such acceptance and
recording by Administrative Agent, from and after the Effective Date, Administrative Agent shall make all payments under the Credit Agreement, the Notes (to the extent any of the Principal Debt owed to Assignee is evidenced by Notes), and loan
accounts in respect of the interest assigned hereby (including, without limitation, all payments of principal, interest, and commitment fees and other fees with respect thereto) to Assignee. Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement and the other Loan Documents for periods prior to the Effective Date directly between themselves. 
  
 7.  Unless Assignee is a Lender, an Affiliate of Assignor, or an Approved Fund, this Assignment and Acceptance Agreement is conditioned upon the
consent of Administrative Agent and, unless a Default or Potential Default then exists, Borrower, pursuant to the definition of “Eligible Assignee” in the Credit Agreement. The execution and delivery of this Assignment and
Acceptance Agreement by Borrower and Administrative Agent is evidence of this consent. 
  
 8.  Administrative Agent has waived payment of the processing fee required by Section 13.13(b)(iv) of the Credit Agreement. This waiver shall apply only to the assignment contemplated by this Assignment and
Acceptance Agreement and shall not constitute a waiver or release by Administrative Agent of any other obligation or right arising now or hereafter under the Credit Agreement. 
  
 9.  THIS ASSIGNMENT AND ACCEPTANCE AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF TEXAS WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. 
  
 10.  This
Assignment and Acceptance Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of Schedule I to this Assignment and Acceptance Agreement by telecopier shall be effective as delivery of a manually executed counterpart of this Assignment and
Acceptance Agreement. 
  
 IN WITNESS WHEREOF, Assignor and Assignee have caused Schedule I to this
Assignment and Acceptance Agreement to be executed by their officers thereunto duly authorized as of the date specified thereon. 

 
 2 

  
 SCHEDULE 1 
 TO ASSIGNMENT AND ACCEPTANCE AGREEMENT 
  
 
	 Assigned Facility
 
	  	 Committed Sum or Principal
 Debt Assigned (as applicable)
 
	  	 Commitment Percentage
 (i.e.
the proportion that Assignee’s Committed Sum to be acquired bears to the aggregate Committed Sum of all Lenders) or Percentage of Principal Debt assigned (i.e. the proportion that the Principal Debt to be acquired by Assignee bears to the
aggregate Principal Debt under the respective Facility)(set forth to at least 8 decimal points)
 

	 Revolver Facility
 	  	 $5,555,555.56
 	  	 12.34567902%
 
	 Term Facility
 	  	 $4,444,444.44
 	  	 12.34567901%
 

 
  
 EFFECTIVE DATE OF ASSIGNMENT:    August
29, 2002 
  
 
	 WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, as
Assignor
 
	 
	 By:
 	 	 /s/    RUSTY
ANDERSON        
 

	  	 	 Rusty Anderson
 Vice
President
 

 
  
 Date:    August 27, 2002

  
 
	 Address for Notice:
 505 Main Street, Suite 300
 Ft. Worth, Texas 76102
 Attn:              Rusty Anderson
 Telephone:    (817) 334-7089
 Telecopier:    (817) 334-7000
 

 
  
 
	 WASHINGTON MUTUAL BANK, FA, as Assignee
 
	 
	 By:
 	 	 /s/    RANDY WOODS        

	  	 	 Randy Woods
 Vice
President
 

 
  
 Date:    August 27, 2002

  
 
	 Address for Notice:
 120 W. 3rd Street, Suite 300
 Ft. Worth, Texas 76102
 Attn:              Randy Woods
 Telephone:    (8 17) 333-2775
 Telecopier:    (8 17) 348-8 177
 

 

 
 3 

  
 If Section 13.13(b) and clause (d) of the definition
of “Eligible Assignee” of the Credit Agreement so require, Borrower and Administrative Agent consent to this Assignment and Acceptance Agreement. 
  
 
	 AZZ INCORPORATED 
 
	 
	 By:
 	 	 /s/    DANA PERRY        

	  	 	 Dana Perry
 Asst
Secretary
 

 
  
 Date:    August 29, 2002

  
 
	 BANK OF AMERICA, N.A., 
     as Administrative Agent
 
	 
	 By:
 	 	 /s/    SUZANNE M.
PAUL        
 

	  	 	 Suzanne M. Paul
 Vice
President
 

 
  
 Dated:    August 26, 2002

 
 4 

  
 TERM NOTE 
  
 
	 $4,444,444.44
 	 	 August 29, 2002
 

 
  
 FOR VALUE RECEIVED, the undersigned, AZZ INCORPORATED, a
Texas corporation (“Borrower”), hereby promises to pay to the order of WASHINGTON MUTUAL BANK, FA (“Lender”), at the offices
of BANK OF AMERICA, N.A., as Administrative Agent under the Credit Agreement (as hereinafter described), the principal sum of Four Million Four Hundred Forty-Four Thousand Four Hundred Forty-Four and 44/100 Dollars ($4,444,444.44), which
principal shall be payable on the dates and in the amounts provided for in Section 3.2(c) of the Credit Agreement (together with accrued and unpaid interest thereon) at such interest rates, on such
dates and in such amounts as are specified in the Credit Agreement. 
  
 This note has been executed and delivered
under, and is subject to the terms of, the Amended and Restated Revolving and Term Loan Credit Agreement, dated as of November 1, 2001 (as further amended, modified, supplemented, or restated from time to time, the “Credit
Agreement”), among Borrower, Administrative Agent, Lender, and other Agents and Lenders party thereto, and is one of the “Term Notes” referred to therein. Unless defined herein,
capitalized terms used herein that are defined in the Credit Agreement have the meaning given to such terms in the Credit Agreement. Reference is made to the Credit Agreement for provisions affecting this note regarding applicable interest rates,
principal and interest payment dates, final maturity, voluntary and mandatory prepayments, acceleration of maturity, exercise of Rights, payment of attorneys’ fees, court costs and other costs of collection, certain waivers by Borrower and
others now or hereafter obligated first payment of any sums due hereunder and security for the payment hereof. Without limiting the immediately preceding sentence, reference is made to Section 3.9 of the Credit Agreement
for usury savings provisions. 
  
 THE LAWS (OTHER THAN CONFLICT-OF-LAWS PROVISIONS THEREOF) OF THE STATE OF TEXAS AND
OF THE UNITED STATES OF AMERICA SHALL GOVERN THE RIGHTS AND DUTIES OF BORROWER AND THE LENDER AND THE VALIDITY, CONSTRUCTION ENFORCEMENT, AND INTERPRETATION HEREOF. 
  
  
 
	 AZZ INCORPORATED
 
	 
	 By:
 	 	 /s/    DANA L.
PERRY        
 

	  	 	 Dana L. Perry,    
 
	  	 	 Assistant Secretary
 

 

 
 5 

  
 REVOLVER NOTE 
  
 
	 S5,555,555.56
 	 	 August 29,2002
 

 
  
 FOR VALUE RECEIVED, the undersigned, AZZ INCORPORATED, a
Texas corporation (“Borrower”), hereby promises to pay to the order of WASHINGTON MUTUAL BANK, FA (“Lender”), at the offices of BANK OF AMERICA, N.A., as
Administrative Agent under the Credit Agreement (as hereinafter described), on the Termination Date, the lesser of (a) Five Million Five Hundred Fifty-Five Thousand Five Hundred Fifty-Five and 56/100 Dollars ($5,555,555.56) and (b) the
aggregate Revolver Principal Debt disbursed by Lender to Borrower and outstanding and unpaid on the Termination Date (together with accrued and unpaid interest thereon). 
  
 This note has been executed and delivered under, and is subject to the terms of, the Amended and Restated Revolving and Term Loan Credit Agreement, dated as of November 1,
2001 (as further amended, modified, supplemented, or restated from time to time, the “Credit Agreement”), among Borrower, Administrative Agent, Lender, and other Agents and Lenders party thereto, and is one of the
“Revolver Notes” referred to therein. Unless defined herein, capitalized terms used herein that are defined in the Credit Agreement have the meaning given to such terms in the Credit Agreement. Reference is made to the
Credit Agreement for provisions affecting this note regarding applicable interest rates, principal and interest payment dates, final maturity, voluntary and mandatory prepayments, acceleration of maturity, exercise of Rights, payment of
attorneys’ fees, court costs, and other costs of collection, certain waivers by Borrower and others now or hereafter obligated for payment of any sums due hereunder and security for the payment hereof. Without limiting the immediately preceding
sentence, reference is made to Section 3.9 of the Credit Agreement for usury savings provisions. 
  
 THE LAWS (OTHER THAN CONFLICT-OF-LAWS PROVISIONS THEREOF) OF THE STATE OF TEXAS AND OF THE UNITED STATES OF AMERICA SHALL GOVERN THE RIGHTS AND DUTIES OF BORROWER AND THE LENDER AND THE VALIDITY, CONSTRUCTION, ENFORCEMENT, AND
INTERPRETATION HEREOF. 
  
 
	 AZZ INCORPORATED
 
	 
	 By:
 	 	 /s/    DANA  L. PERRY      

	  	 	 Dana L. Perry,
 
	  	 	 Assistant Secretary
 

 

 
 6 

  
 TERM NOTE 
  
 
	 $4,026,144.06
 	 	 August 29, 2002
 

 
  
 FOR VALUE RECEIVED, the undersigned, AZZ INCORPORATED, a
Texas corporation (“Borrower”), hereby promises to pay to the order of WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION (“Lender”), at the offices of BANK OF AMERICA,
N.A., as Administrative Agent under the Credit Agreement (as hereinafter described), the principal sum of Four Million Twenty-Six Thousand One Hundred Forty-Four and 06/l00 Dollars ($4,026,144.06), which principal shall be payable on the dates
and in the amounts provided for in Section 3.2(c) of the Credit Agreement (together with accrued and unpaid interest thereon) at such interest rates, on such dates and in such amounts as are specified in the Credit
Agreement. 
  
 This note has been executed and delivered under, and is subject to the terms of, the Amended and
Restated Revolving and Term Loan Credit Agreement, dated as of November 1, 2001 (as further amended, modified, supplemented, or restated from time to time, the “Credit Agreement”), among Borrower, Administrative
Agent, Lender, and other Agents and Lenders party thereto, and is one of the “Term Notes” referred to therein. Unless defined herein, capitalized terms used herein that are defined in the Credit Agreement have the meaning given to
such terms in the Credit Agreement. Reference is made to the Credit Agreement for provisions affecting this note regarding applicable interest rates, principal and interest payment dates, final maturity, voluntary and mandatory prepayments,
acceleration of maturity, exercise of Rights, payment of attorneys’ fees, court costs and other costs of collection, certain waivers by Borrower and others now or hereafter obligated for payment of any sums due hereunder and security for the
payment hereof. Without limiting the immediately preceding sentence, reference is made to Section 3.9 of the Credit Agreement for usury savings provisions. 
  
 THE LAWS (OTHER THAN CONFLICT-OF-LAWS PROVISIONS THEREOF) OF THE STATE OF TEXAS AND OF THE UNITED STATES OF AMERICA SHALL GOVERN THE RIGHTS AND DUTIES OF BORROWER AND THE
LENDER AND THE VALIDITY, CONSTRUCTION, ENFORCEMENT, AND INTERPRETATION HEREOF. 
  
 This Note is in substitution and
replacement of that certain Note dated November 1, 2001, executed by Borrower and payable to the order of Lender in the original principal amount of $9,411,765.00. 
  
 
	 AZZ INCORPORATED
 
	 
	 By:
 	 	 /s/    DANA L.
PERRY        
 

	  	 	 Dana L. Perry,
 Assistant
Secretary
 

 

 
 7 

  
 REVOLVER NOTE 
  
 
	 $5,032,679.44
 	 	 August 29, 2002
 

 
  
 FOR VALUE RECEIVED, the undersigned, AZZ INCORPORATED, a
Texas corporation (“Borrower”), hereby promises to pay to the order of WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION (“Lender”), at the offices of BANK OF AMERICA,
N.A., as Administrative Agent under the Credit Agreement (as hereinafter described), on the Termination Date, the lesser of (a) Five Million Thirty-Two Thousand Six Hundred Seventy-Nine and 44/100 Dollars ($5,032,679.44) and (b) the aggregate
Revolver Principal Debt disbursed by Lender to Borrower and outstanding and unpaid on the Termination Date (together with accrued and unpaid interest thereon). 
  
 This note has been executed and delivered under, and is subject to the terms of, the Amended and Restated Revolving and Term Loan Credit Agreement, dated as of November 1,
2001 (as further amended, modified, supplemented, or restated from time to time, the “Credit Agreement”), among Borrower, Administrative Agent, Lender, and other Agents and Lenders party thereto, and is one of
the “Revolver Notes” referred to therein. Unless defined herein, capitalized terms used herein that are defined in the Credit Agreement have the meaning given to such terms in the Credit Agreement. Reference is
made to the Credit Agreement for provisions affecting this note regarding applicable interest rates, principal and interest payment dates, final maturity, voluntary and mandatory prepayments, acceleration of maturity, exercise of Rights, payment of
attorneys’ fees, court costs, and other costs of collection, certain waivers by Borrower and others now or hereafter obligated for payment of any sums due hereunder and security for the payment hereof. Without limiting the immediately preceding
sentence, reference is made to Section 3.9 of the Credit Agreement for usury savings provisions. 
  
 THE LAWS (OTHER THAN CONFLICT-OF-LAWS PROVISIONS THEREOF) OF THE STATE OF TEXAS AND OF THE UNITED STATES OF AMERICA SHALL GOVERN THE RIGHTS AND DUTIES OF BORROWER AND THE LENDER AND THE VALIDITY, CONSTRUCTION, ENFORCEMENT, AND
INTERPRETATION HEREOF. 
  
 This Note is in substitution and replacement of that certain Note dated November 1, 2001,
executed by Borrower and payable to the order of Lender in the original principal amount of $10,588,235.00. 
  
 
	 AZZ INCORPORATED
 
	 
	 By:
 	 	 /s/    DANA L.
PERRY        
 

	  	 	 Dana L. Perry,
 Assistant
Secretary
 

 

 
 8

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