AGREEMENT AND PLAN OF
MERGER
SHARE EXCHANGE AGREEMENT , dated as of October 7, 2009 (this
“ Agreement ”) by and among Paragon Toner, Inc.
(“ Paragon ”), the stockholders of Paragon (the
“ Paragon Shareholders ”), Lexon Technologies
Inc., a Delaware corporation (the “Company ”),
and the stockholders of the Company.
WHEREAS , the Paragon Shareholders own 100% of the issued
and outstanding ordinary shares of Paragon (such shares being
hereinafter referred to as the “Paragon Shares”)
; and
WHEREAS , (i) the Paragon Shareholders and Paragon believe
it is in their respective best interests for the Paragon
Shareholders to exchange 15,069 Shares of Paragon representing 100%
of all issued outstanding shares of Paragon (“Paragon
Shares”) for 347,448,444 newly-issued shares of the
(“the Company Shares ”) of common stock, $0.006
per share, of the Company (the “ Common Stock ”)
(ii) The Company believes it is in its best interest and the best
interest of its stockholders to acquire the Paragon Shares in
exchange for the Company Shares, all upon the terms and subject to
the conditions set forth in this Agreement (the “ Share
Exchange ”)
NOW, THEREFORE, in consideration of the mutual terms,
conditions and other agreements set forth herein, the parties
hereto agree as follows:
ARTICLE I
EXCHANGE OF PARAGON SHARES FOR THE COMPANY
SHARES
Section 1.1 Agreement to Exchange Paragon Shares for The
Company Shares . On the Closing Date (as hereinafter defined)
and upon the terms and subject to the conditions set forth in this
Agreement, the Paragon Shareholders shall assign, transfer, convey
and deliver the Paragon Shares to the Company. In consideration and
exchange for the Paragon Shares, the Company shall issue, transfer,
convey and deliver the Company Shares to the Paragon
Shareholders.
Section 1.2 Conditions Precedent . The Company prior
to Closing will have effectuated the following as Conditions
Precedent of the Execution of this Agreement
|
|
a.
|
Obtaining Shareholder Approval
for the Share Exchange in the form of a Shareholder Meeting or
Shareholder Resolution.
|
|
|
|
|
|
|
b.
|
Executing via the above a
increase of authorized shares from 100,000,000 shares to
2,000,000,000 shares.
|
This entire agreement is subject
to the execution of the above at the earliest date
possible.
Section 1.3 Closing and Actions at Closing . The
Effective Date of this Agreement shall be October 22 , 2009. The
closing of the Share Exchange (the “ Closing ”)
shall take place remotely via the exchange of documents and
signatures within 30 days of the consummation of this Agreement
(the “ Closing Date ”).
Section 1.4 Directors of The Company at Closing Date
. Upon consummation of this Agreement, two of three current Board
of Directors shall resign from the board of directors of The
Company (the “ The Company Board ”) and Paragon
will appoint 3 directors to the board of directors. Paragon will
have the managerial control of the Company, and will appoint new
officers to the company.
Section 1.5 Reverse Merger – Paragon and the
Paragon Shareholders will cause the dissolution of Paragon as soon
as practicable after the consummation of this Agreement.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF THE
COMPANY
The
Company represents, warrants and agrees that all of the statements
in the following subsections of this Article II are true and
complete as of the date hereof.
Section 2.1 Corporate
Organization
a.
The Company is a corporation duly organized, validly existing and
in good standing under the laws of Delaware, and has all requisite
corporate power and authority to own its properties and assets and
governmental licenses, authorizations, consents and approvals to
conduct its business as now conducted and is duly qualified to do
business and is in good standing in each jurisdiction in which the
nature of its activities makes such qualification and being in good
standing necessary, except where the failure to be so qualified and
in good standing will not have a material adverse effect on the
activities, business, operations, properties, assets, condition or
results of operation of the Company. “ Material Adverse
Effect ” means, when used with respect to the Company,
any event, occurrence, fact, condition, change or effect, which,
individually or in the aggregate, would reasonably be expected to
be materially adverse to the business, operations, properties,
assets, condition (financial or otherwise), or operating results of
the Company, or materially impair the ability of the Company to
perform its obligations under this Agreement, excluding any change,
effect or circumstance resulting from (i) the announcement,
pendency or consummation of the transactions contemplated by this
Agreement, or (ii) changes in the United States securities markets
generally.
b.
Copies of the certificate of incorporation and by-laws of the
Company with all amendments thereto, as of the date hereof (
“The Company Charter Documents ”), have been
furnished to Paragon, and such copies are accurate and complete as
of the date hereof..
Section 2.2 Authorization, Validity and Enforceability of
Agreements . The Company has all corporate power and authority
to execute and deliver this Agreement and all agreements,
instruments and other documents to be executed and delivered in
connection with the transactions contemplated by this Agreement to
perform its obligations hereunder and to consummate the
transactions contemplated hereby and thereby. The execution and
delivery of this Agreement by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby,
have been duly authorized by all necessary corporate action of the
Company, and no other corporate proceedings on the part of the
Company are necessary to authorize this Agreement or to consummate
the transactions contemplated hereby and thereby. This Agreement
constitutes the valid and legally binding obligation of the Company
and is enforceable in accordance with its terms, except as such
enforcement may be limited by general equitable principles, or by
bankruptcy, insolvency and other similar laws affecting the
enforcement of creditors rights generally. The Company does not
need to give any notice to, make any filings with, or obtain any
authorization, consent or approval of any government or
governmental agency or other person in order for it to consummate
the transactions contemplated by this Agreement, other than filings
that may be required or permitted under states securities laws, the
Securities Act and/or the Exchange Act resulting from the issuance
of the Company Shares or securities in connection with the Private
Placement.
Section 2.3 Financial
Statements; SEC Filings .
a.
The Company’s financial statements (the “ Financial
Statements ”) contained in its periodic reports filed
with the SEC have been prepared in accordance with generally
accepted accounting principles applicable in the United States of
America ( “U.S. GAAP” ) applied on a consistent
basis throughout the periods indicated, except that those Financial
Statements that are not audited do not contain all footnotes
required by U.S. GAAP. The Financial Statements fairly present the
financial condition and operating results of The Company as of the
dates, and for the periods, indicated therein, subject to
normal
year-end
audit adjustments. The Company is not a guarantor or indemnitor of
any indebtedness of any other person, entity or organization. The
Company maintains a standard system of accounting established and
administered in accordance with U.S. GAAP. It is understood by the
Company that Paragon and the Paragon Shareholders have relied on
the accuracy of the Financia