AMENDMENT
THIS
AMENDMENT (the “Amendment”) is made and entered into as of November 9, 2006, by
and among Paperclip Software, Inc., a corporation organized under the laws
of
Delaware, with its principal place of business located at Xxx Xxxxxxxxxx Xxxxx
Xxxxx 000, Xxxxxxxxxx, XX 00000 (“PCLP"); American Sunrise International, Inc.,
a Delaware Corporation with its principal place of business located at 00
Xxxxxxxx Xxxxx, Xxxx Xxxxxxx, Xxx Xxxxxx 00000 ("ASI”), Jilin Dongsheng Weiye
Science and Technology Co., Ltd. (“Dongsheng”), a limited liability company
organized under the laws of the People’s Republic of China (the “PRC”) and a
wholly-owned subsidiary of ASI, with its principal place of business located
at
0-000 Xxxxxx Xxxxxxx, Xxxxxxxx Blvd., Jilin, Jilin Province, PRC, and the ASI
shareholders listed on Schedule 3.2 attached hereto and made a part hereof
(“ASI
Shareholders”) (collectively, ASI, Dongsheng and the ASI Shareholders shall be
known as the “ASI Group”).
W
I T N E
S S E T H :
WHEREAS,
the parties hereto (the “Parties”) entered into a Stock Purchase and Share
Exchange Agreement dated November 6, 2006 (the “Agreement”); and
WHEREAS,
the ASI Group has requested that amendments be made to the Agreement to
accommodate a closing on November 8, 2006; and
WHEREAS,
PCLP has agrees to amend the Agreement as set forth herein;
NOW,
THEREFORE, in consideration of the premises herein contained and other good
and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, agree as
follows:
ARTICLE
I
1. Amendment
to Section 1.2.
Section
1.2 shall be deleted and replaced with the following:
Section
1.2 Capitalization.
The authorized capitalization of PCLP consists of 30,000,000 shares of common
stock, par value $.01 per share, and 10,000,000 shares of preferred stock,
par
value $.01 per share, of which 3,649,543 shares are designated as Series A
Preferred Stock. As of the date hereof, PCLP has 8,196,523 common shares issued
and outstanding, and 3,649,543 Series A Preferred Stock shares issued and
outstanding. No other shares of preferred stock are issued and outstanding.
All
issued and outstanding shares are legally issued, fully paid and nonassessable
and are not issued in violation of the preemptive or other rights of any person.
PCLP has no securities, warrants or options authorized or issued, except for
those disclosed in it’s the PCLP SEC Documents as defined in Section
1.15.
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2.
Amendment
to Section 1.4(c). Section
1.4(c) shall be deleted and replaced with the following:
(c) Prior
to
or within 30 days after the closing (the “Settlement Date”), PCLP shall satisfy
all outstanding liabilities, debts, expenses and unpaid taxes.
3.
Amendment
to Section 1.9. Section
1.9 shall be deleted and replaced with the following:
Section
1.9 Contracts. PCLP covenants and agrees that by the Settlement
Date:
(a) There
will be no material contracts, agreements, leases, franchises, license
agreements, or other commitments relating to PCLP’s pre-closing business to
which PCLP is a party or by which it or any of its properties are bound, which
have not been assigned to, or assumed by, another party;
(b) PCLP
will
not be a party to any contract, agreement, commitment or instrument or subject
to any charter or other corporate restriction or any judgment, order, writ,
injunction, decree or award relating to its pre-closing business which
materially and adversely affects, or in the future may (as far as PCLP can
now
foresee) materially and adversely affect, the business, operations, properties,
assets or conditions of PCLP; and
(c) With
respect to its pre-closing business, PCLP will not be a party to any material
oral or written: (I) contract for the employment of any officer or employee;
(ii) profit sharing, bonus, deferred compensation, stock option, severance
pay,
pension benefit or retirement plan, agreement or arrangement covered by Title
IV
of the Employee Retirement Income Security Act, as amended; (iii) agreement,
contract or indenture relating to the borrowing of money; (iv) guaranty of
any
obligation for the borrowing of money or otherwise, excluding endorsements
made
for collection and other guaranties, of obligations, which, in the aggregate
exceeds $500; (v) consulting or other contract with an unexpired term of more
than one year or providing for payments in excess of $500 in the aggregate;
(vi)
collective bargaining agreement; and (vii) contract, agreement or other
commitment involving payments by it for more than $1,000 in the
aggregate.
4. Amendment
to Section 3,2. Section
3.2 shall be deleted and replaced with the following:
Section
3.2 Issuance of PCLP Shares. In exchange for 100% of the ASI common shares
tendered pursuant to Section 3.1, and in consideration for a cash payment of
$280,000 and costs and fees of the transaction to be paid by the Strategic
Alliance Fund (“SAF”), PCLP shall issue to the ASI Shareholders set forth on
Schedule 3.2 shares of PCLP’s common stock, par value $.01 per share, and shall
authorize the creation and issuance of Series B Convertible Preferred Stock,
par
value $.01 per share, of which each share shall convert into 500 shares of
PCLP’s common stock, which together shall constitute an aggregate of 98.7% of
PCLP’s issued and outstanding fully diluted common stock after the transaction
is closed, a Certificate of Designations, Preferences and Rights for the Series
B Convertible Preferred Stock is filed and such stock is issued pursuant to
this
Agreement. Such shares shall be restricted in accordance with Rule 144 of the
1933 Securities Act.
2
5.
Amendment
to Section 3,6. Section
3.6 shall be deleted and replaced with the following:
Section
3.6 Closing.
The closing ("Closing") of the transactions contemplated by this Agreement
shall
be on the date and at the time agreed upon by the Parties.
6.
Amendment
to Section 3,8. Section
3.8 shall be deleted and replaced with the following:
Section
3.8 Directors
of PCLP After Acquisition. Upon the Closing, Xxxxxxx Xxxxx, D. Xxxxxxx Xxxxxxx,
and Xxxxxxx Xxxxxxx shall deliver to PCLP resignations from the Board of
Directors of PCLP which are effective on a date that is 10 calendar days after
PCLP mails an Information Statement prepared pursuant to Rule 14f-1 relating
to
this Agreement and Xxxxxx Xx, Xxxxxx Xxx and Xxxxx Xxxx shall be appointed
to
the Board of Directors of PCLP. Each director shall hold office until his
successor has been duly elected and has qualified or until his death,
resignation or removal.
7.
Deletion
of Section 6.5.
Section
6.5 of the Agreement shall be deleted in its entirety.
8.
Amendment
to Section 6,6. Section
6.6 shall be deleted and replaced with the following:
Section
6.6 Conversion
and Cancellation of Series A Preferred Stock Designation. Until the Settlement
Date, Xxxxxxx Xxxxx shall use his reasonable best efforts to cause the as many
of the holders as possible of the 3,649,543 shares of Series A Preferred Stock,
par value $.01 per share, to convert their shares into shares of common stock
with the written consent of ASI.
9.
Amendment
to Section 6,7. Section
6.7 shall be deleted and replaced with the following:
Section
6.7 Cancellation
of Outstanding Options, Warrants, Rights, Etc. Until the Settlement Date,
Xxxxxxx Xxxxx shall use his reasonable best efforts to cause the holders of
all
outstanding stock options, rights or commitments to issue shares of PCLP common
or preferred stock, warrants and convertible notes, to cancel or exchange such
instruments for PCLP common stock with the written consent of ASI.
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ARTICLE
II
MISCELLANEOUS
1. Amendments. The
terms
and provisions set forth in this Amendment shall modify and supercede all
inconsistent terms and provisions set forth in the Agreement. The parties agree
that the Agreement, as amended hereby, shall continue to be legal, valid,
binding and enforceable in accordance with its terms.
2.
Survival
of Representations and Warranties.
All
representations and warranties made in the Agreement shall survive the execution
and delivery of this Amendment.
3.
Headings. The
section headings contained in this Amendment are for purposes of convenience
only, and shall in no way bear upon the construction or interpretation of this
Amendment.
4.
Entire
Agreement. The
Agreement, as amended hereby, constitutes the entire agreement between the
parties hereto and supersedes all prior agreements, understandings and
arrangements, oral or written, between the parties hereto with respect to the
subject matter hereof.
5.
Modification
and Waiver. This
Amendment may not be modified or amended except by an instrument or instruments
in writing signed by the parties hereto. No waiver of any of the provisions
of
this Amendment shall be deemed, or shall constitute, a waiver of any other
provisions, whether or not similar. No waiver shall be binding unless executed
in writing by the party making the waiver.
6.
Counterparts. This
Amendment 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.
7.
Severability. The
provisions of this Amendment are severable, and the invalidity of any provision
shall not affect the validity of any other provisions.
8.
Binding
Effect. This
Amendment shall be binding upon, and shall inure to the benefit of, the parties
hereto and their respective successors and permitted assigns.
9.
Governing
Law. This
Amendment, its validity, interpretation and performance shall be governed by
and
construed in accordance with the internal laws of the State of Delaware without
giving effect to the conflict of laws provisions thereof.
IN
WITNESS WHEREOF
the
parties have caused this Agreement to be executed and delivered by their duly
authorized representatives.
4
ATTEST:
|
PAPERCLIP
SOFTWARE, INC.
|
|
______________________________
|
By:
|
______________________________
|
Name:
|
Xxxxxxx
Xxxxx
|
|
Title:
|
Chief
Executive Officer
|
|
Principal
Financial Officer
|
AMERICAN
SUNRISE INTERNATIONAL, INC.
|
||
By:
|
______________________________
|
|
Name:
|
Xxxxxxx
Xxxx
|
|
Title:
|
President
|
JILIN
DONGSHENG WEIYE SCIENCE AND TECHNOLOGY CO.
|
||
By:
|
______________________________
|
|
Name:
|
XXXXXX
XX
|
|
Title:
|
Chairman
|
ASI
SHAREHOLDERS:
WARNER
TECHNOLOGY & INVESTMENT CORP.
|
||
By:
|
______________________________
|
|
Name:
|
XXXXXXX
XXXX
|
|
Title:
|
President
|
|
AMERICAN
UNION SECURITIES, INC.
|
||
By:
|
______________________________
|
|
Name:
|
XXXX
XXX
|
|
Title:
|
President
|
STRATEGIC
ALLIANCE FUND, LP
|
||
By:
|
______________________________
|
|
Name:
|
XXXXXX
XXXXXXX
|
|
Title:
|
General
Partner
|
By:
|
______________________________
|
|
Name:
|
XXXXXXX
XXXX
|
|
By:
|
______________________________
|
|
Name:
|
XXXXXX
XXX
|
|
By:
|
______________________________
|
|
Name:
|
XXXXXX
XX
|
|
By:
|
______________________________
|
|
Name:
|
XXXXXXX
XXXX
|
|
By:
|
______________________________
|
|
Name:
|
XXXX
XXX
|
|
By:
|
______________________________
|
|
Name:
|
DEHOU
WANG
|
5