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AGREEMENT
Agreement dated effective as of July 26, 2000 by and between Politics.com,
Inc., a Delaware corporation (the "Company"), Medinex Systems, Inc., a Delaware
corporation (f/k/a Netivation.com, Inc.) ("Medinex"), and, with respect to
Section 1.7 of the Agreement, Howard R. Baer and Kevin C. Baer (collectively
hereinafter referred to as "Baer").
RECITALS
1. In order to acquire from Medinex certain assets related to its
internet public policy and its political business ("Assets"), the Company
entered into that certain Asset Purchase Agreement dated July 14, 2000
("Purchase Agreement"), in connection with which, the Company agreed to issue to
Medinex 40,100,000 shares of the Company's Common Stock. The transaction
contemplated by the Purchase Agreement is hereinafter sometimes referred to as
the "Transaction." The Company and Medinex desire to void the Transaction AB
INITIO (that is, at its inception), with the effect that Medinex is the owner of
the Assets and the shares of the Company's Common Stock issuable in the
Transaction are restored to the status of authorized but unissued shares of the
Company.
2. The Company, Medinex and Baer desire to exchange mutual general
releases in order to restore the parties to their respective positions
immediately prior to the execution and delivery of the Purchase Agreement.
3. In connection with the transaction contemplated by this Agreement,
Medinex will pay at closing $52,217 to the Company and $75,000 to the law firm
of Brown Rudnick Freed & Gesmer. Further, the Company will share with Medinex
fifty (50%) percent of the amount by which the net proceeds from the sale of the
Website (defined below) exceed five hundred thousand dollars ($500,000).
4. The Company desires that Medinex host and provide basic maintenance to
the Company's URL "Politics.com" and the related technology and content (the
"Website"), for a period of up to six (6) months, and Medinex is willing to host
and provide such basic maintenance to the Website.
5. The consideration being exchanged by the parties is intended to defray
the costs the parties incurred in connection with the Transaction.
NOW THEREFORE, IT IS AGREED AS FOLLOWS:
AGREEMENT
1.1 VOIDING OF TRANSACTION. The Company and Medinex agree that the
Transaction is void AB INITIO (that is, at its inception), with the effect that
Medinex remains the owner of all of the Assets and the shares of the Company's
Common Stock are restored to the status of authorized but unissued shares. The
Purchase Agreement and all related documents and
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all documents delivered in connection therewith are hereby terminated AB INITIO
and are of no force or effect whatsoever.
1.2 LIABILITIES ASSUMED. In order to restore the parties to their
respective positions immediately prior to the execution of the Purchase
Agreement, Medinex hereby assumes all liabilities of the Company incurred after
July 26, 2000 until the Closing (defined below) (except for legal fees and
expenses incurred by the Company in connection with the transaction contemplated
hereby), and Medinex shall indemnify and hold the Company harmless from and
against any and all claims, damages, liabilities, costs and expenses (including
reasonable attorneys fees) arising out of any such assumed liabilities and the
activities of the Company during such period. The Company shall indemnify and
hold Medinex harmless from and against any and all claims, damages, liabilities,
costs and expenses (including reasonable attorney's fees), arising out of the
Company's activities following the Closing.
1.3 PAYMENTS AT CLOSING. At the Closing, Medinex shall make the following
payments by wire transfer: (1) fifty two thousand two hundred and seventeen
dollars ($52,217) shall be wire transferred to the Company and (2) seventy five
thousand dollars ($75,000) shall be wire transferred to the law firm of Brown
Rudnick Freed & Gesmer. The Company will issue Medinex 100,000 shares of Common
Stock of the Company at the Closing. These payments and stock issuances are
intended to defray costs incurred by the Company and Medinex in connection with
the Transaction.
1.4 HOSTING OF WEBSITE. For no additional consideration, Medinex shall, for
a period of up to six months, host and provide a reasonable level of basic
maintenance of the Website.
1.5 SALE OF WEBSITE. In order to defray costs incurred by Medinex in
connection with the Transaction, at such time as the Company sells the Website
(or any part thereof), the Company shall pay to Medinex an amount equal to fifty
(50%) percent of the amount, if any, by which the net proceeds received from the
sale of the Website exceed five hundred thousand dollars ($500,000). Any amount
payable to Medinex hereunder shall be paid when and as received by the Company.
"Net proceeds" for the purposes of this paragraph means the proceeds from the
sale of the Website, less any expenses incurred by the Company in connection
with such sale, including, but not limited to, selling commissions. Medinex and
the Company shall use their best efforts to promote the sale of the Website.
1.6 CLOSING. The transaction contemplated by this Agreement shall be closed
on or before October 10, or at such other time as the parties may agree in
writing (the "Closing" or the "Closing Date").
1.7 MUTUAL GENERAL RELEASE. Baer and the Company hereby fully, forever,
irrevocably and unconditionally release, remise and discharge Medinex and its
officers, directors, stockholders, corporate affiliates, attorneys, agents and
employees from any and all claims, charges, complaints, demands, actions, causes
of action, suits, rights, debts, sums of money, costs, accounts, reckonings,
covenants, contracts, agreements, promises, doings, omissions, damages,
executions, obligations, liabilities, and expenses (including attorneys fees and
costs), of every kind
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and nature which any of them ever had or now have against Medinex or its
officers, directors, stockholders, corporate affiliates, attorneys, agents and
employees (including, but not limited to, all claims arising out of the
Transaction and the voiding thereof).
Medinex hereby fully, forever, irrevocably and unconditionally releases,
remises and discharges Baer and the Company, and its officers, directors,
stockholders, corporate affiliates, attorneys, agents and employees from any and
all claims, charges, complaints, demands, actions, causes of action, suits,
rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts,
agreements, promises, doings, omissions, damages, executions, obligations,
liabilities, and expenses (including attorneys fees and costs), of every kind
and nature which it ever had or now has against Baer, the Company or any of its
officers, directors, stockholders, corporate affiliates, attorneys, agents and
employees (including, but not limited to, all claims arising out of the
Transaction and the voiding thereof).
1.8 RESIGNATION OF OFFICERS AND DIRECTORS. At the Closing, the Company
shall deliver a certified copy of a written consent of the Board of Directors of
the Company authorizing the transaction contemplated by this Agreement and
removing without cause all of the officers of the Company and resignations of
Tony Paquin and Glen Hughlette as directors of the Company. The Company shall at
the Closing return all corporate records of the Company delivered in connection
with the Transaction to the law firm of Brown Rudnick Freed & Gesmer. Medinex
shall deliver at the Closing certified copies of minutes or written consents of
its Board of Directors authorizing the transactions contemplated by this
Agreement.
1.9 PIGGYBACK REGISTRATION RIGHTS. If the Company after the Closing files a
registration statement under the Securities Act of 1933, as amended (other than
on Form S-8 or S-4 or any successor forms), then the Company shall notify
Medinex of such registration and, if Medinex so requests, include on such
registration statement the 100,000 shares of the Company's Common Stock received
by Medinex hereunder, unless any underwriter of the offering being registered
under such registration statement shall determine that it is not in the best
interest of the Company to include such shares of Common Stock on such
registration statement, in which case such shares may be excluded from such
registration statement. In addition, as a condition of including such shares of
Common Stock on any such registration statement, Medinex shall, if required by
any such underwriter, agree to "lock-up" such shares of common stock for such
period as such underwriter may require, not to exceed one year. The Company
shall bear the cost of any such registration, excluding any legal fees and
expenses of Medinex and any underwriting discounts and commissions incurred in
connection with the sale of Medinex's shares of the Company's Common Stock.
1.10 EXPENSES OF THIS TRANSACTION. Each party shall bear its own expenses
in connection with the transactions contemplated by this Agreement.
1.11 CORPORATE APPROVALS. The transactions contemplated by this Agreement
are subject to final approval of the respective Boards of Directors of the
Company and Medinex.
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1.12 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of
the parties with respect to the subject matter hereof and supercedes all prior
agreements, understandings, and arrangements, whether oral or written.
1.13 AMENDMENT. This agreement may be amended, modified or supplemented
only by a written agreement signed by all of the parties hereto.
1.14 NOTICES. All notices, requests, demands, and other communications
required or permitted hereunder will be in writing and will be deemed to have
been duly given when delivered by hand or two days after being mailed by
certified or registered mail, return receipt requested, with postage prepaid:
If to Medinex, to: Medinex Systems, Inc.
806 Clearwater Loop, Suite N
Post Falls, ID 83854
with copy to: Mark Ellison, Esq.
Moffatt, Thomas, Barrett, Rock & Fields, Chtd.
101 S. Capital Blvd., 10th Floor
Post Office Box 829
Boise, ID 83701-0829
or to such other person or address as Medinex furnishes to the Company pursuant
to the above.
If to the Company, to: Politics.com, Inc.
2530 So. Rural Road
Tempe, AZ 85282
with copy to: John G. Nossiff, Jr., Esq.
Brown Rudnick Freed & Gesmer
One Financial Center
Boston, MA 02111
or to such person or address as the Company furnishes to Medinex pursuant to the
above.
1.15 FURTHER ACTION, COUNTERPARTS, SAVINGS CLAUSE. The parties hereto shall
execute and deliver all documents, provide all information, and take or forbear
from all such action as may be necessary or appropriate to achieve the purpose
of the Agreement which is to restore the parties to substantially the position
each occupied immediately prior to the execution of the Purchase Agreement. This
Agreement may be executed in several counterparts and transmitted by facsimile
and all so executed shall constitute one Agreement, binding on all the parties
hereto even though all the parties are not signatories to the original or the
same counterpart. Nothing herein shall be construed to be to the benefit of any
third party, nor is it intended that any provision shall be for the benefit of
any third party. If any provision of this
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Agreement, or the application of such provision to any person or circumstance,
shall be held invalid, the remainder of this Agreement, or the application of
such provision to persons or circumstances other than those as to which it is
held invalid, shall not be affected thereby.
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IN WITNESS WHEREOF, the undersigned have executed this Agreement the date
and year set forth above.
Politics.com, Inc., a Delaware corporation
/s/ Glen Hughlette
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By: Glen Hughlette, President
Medinex Systems, Inc., a Delaware corporation
/s/ Anthony J. Paquin
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By: Anthony J. Paquin, President and Chief
Executive Officer
/s/ Howard R. Baer
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Howard R. Baer, individually, but only with
respect to Section 1.7 of this Agreement
/s/ Kevin C. Baer
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Kevin C. Baer, individually, but only with
respect to Section 1.7 of this Agreement
