SHARE EXCHANGE AGREEMENT by and among Sinary Bio-Technology Holdings Group, Inc. (“Sinary”) and the Stockholder of Sinary, on the one hand; and Expedition Leasing, Inc. (“EXDG”), a Florida corporation, and the Majority Stockholders of EXDG, on the...
by
and among
Sinary
Bio-Technology Holdings Group, Inc. (“Sinary”)
and
the
Stockholder of Sinary,
on
the one hand;
and
Expedition
Leasing, Inc. (“EXDG”),
a
Florida corporation,
and
the
Majority Stockholders of EXDG,
on
the other hand
December
7, 2007
This
Share Exchange Agreement, dated as of December 7, 2007 (this “Agreement”), is
made and entered into by and among Xxxxx Xxxx (the “Sinary Stockholder”), an
individual and the sole shareholder of Sinary Bio-Technology Holdings Group,
Inc., a Nevada corporation (“Sinary”), on the one hand; and Expedition Leasing,
Inc., a publicly traded Florida corporation (OTCBB: EXDG) (“EXDG”), and the
shareholders of EXDG listed on Signature Page for EXDG Stockholders that is
attached hereto (the “EXDG Stockholders”), on the other hand. Sinary is a party
to this agreement solely to make representations and warranties as set forth
herein.
RECITALS
WHEREAS,
the Board of Directors of EXDG has adopted resolutions approving EXDG’s
acquisition of shares of Sinary (the “Acquisition”) upon the terms and
conditions hereinafter set forth in this Agreement;
WHEREAS,
Sinary Stockholder owns 100%of the issued and outstanding capital stock of
Sinary (the “Sinary Shares”), and the Sinary Stockholder desires to sell the
Sinary Shares pursuant to the terms and conditions of this
Agreement;
WHEREAS,
the EXDG Stockholders holds an amount of shares of EXDG common stock which
represents at least a majority of the issued and outstanding capital stock
of
EXDG;
WHEREAS,
the
EXDG
Stockholders will enter into this Agreement for the purpose of making certain
representations, warranties, covenants, indemnifications and
agreements;
WHEREAS,
it
is
intended that the terms and conditions of this Agreement comply in all respects
with Section 368(a)(1)(B) of the Code and the regulations corresponding thereto,
so that the Acquisition shall qualify as a tax free reorganization under the
Code.
NOW,
THEREFORE, the parties hereto, intending to be legally bound, agree as
follows:
ARTICLE
1
THE
ACQUISITION
1.1 The
Acquisition.
Upon
the terms and subject to the conditions hereof, at the Closing (as hereinafter
defined) the parties shall do the following:
(a)
The
Sinary Stockholder will sell, convey, assign, transfer and deliver to EXDG
stock
certificates representing the Sinary Shares, which shall constitute 100% of
the
issued and outstanding shares of Sinary.
(b)
As
consideration for the acquisition of the Sinary Shares, EXDG will issue to
the
Sinary Stockholder, a stock certificate representing the number of shares of
EXDG common stock set forth opposite such party’s name in Column II on Schedule
1.1(a) attached hereto (collectively, the “EXDG Shares”). The EXDG Shares issued
shall equal approximately 98.00% of the outstanding shares of EXDG common stock
at the time of Closing. For example, if there are 504,600 shares of EXDG common
stock outstanding immediately prior to the Closing, then there shall be
approximately 24,725,200 shares of EXDG common stock issued to the Sinary
Stockholder at Closing.
(c)
EXDG
Stockholders shall cause an aggregate 24,725,200 shares of EXDG common stock
held by them to be cancelled pursuant to Section 6.6 hereof.
(d)
Sinary
shall cause USD $650,000 to be delivered via wire transfer to an account
specified by EXDG to pay all the outstanding obligations of EXDG and to purchase
shares of EXDG common stock at the time of Closing.
1.2 Closing
Date.
The
closing of the Acquisition (the “Closing”) shall take place as soon as
practicable upon signing of this Agreement, and prior to December 15, 2007,
or
on such other date as may be mutually agreed upon by the parties. Such date
is
referred to herein as the “Closing Date.”
1.3 Taking
of Necessary Action; Further Action.
If, at
any time after the Closing, any further action is necessary or desirable to
carry out the purposes of this Agreement, the Sinary Stockholder, Sinary, EXDG
Stockholders and/or EXDG will take all such lawful and necessary
action.
ARTICLE
2
REPRESENTATIONS
AND WARRANTIES OF SINARY
Sinary
hereby represents and warrants to EXDG and the EXDG Stockholders as
follows:
2.1
Organization.
Sinary
has been duly incorporated, validly exists as a corporation, and is in good
standing under the laws of its jurisdiction of incorporation, and has the
requisite power to carry on its business as now conducted.
2.2
Capitalization.
The
authorized capital stock of Sinary consists of 50,000 shares of common stock,
$1.00 par value per share, of which at the Closing, no more than 100 shares
shall be issued and outstanding. All of the issued and outstanding shares of
capital stock of Sinary, as of the Closing, are duly authorized, validly issued,
fully paid, non-assessable and free of preemptive rights. There are no voting
trusts or any other agreements or understandings with respect to the voting
of
Sinary’s capital stock.
2.3
Certain
Corporate Matters.
Sinary
is duly qualified to do business as a corporation and is in good standing in
each jurisdiction in which the ownership of its properties, the employment
of
its personnel or the conduct of its business requires it to be so qualified,
except where the failure to be so qualified would not have a material adverse
effect on Sinary’s financial condition, results of operations or business.
Sinary has full corporate power and authority and all authorizations, licenses
and permits necessary to carry on the business in which it is engaged and to
own
and use the properties owned and used by it.
2.4
Authority
Relative to this Agreement.
Sinary
has the requisite power and authority to enter into this Agreement and to carry
out its obligations hereunder. The execution, delivery and performance of this
Agreement by Sinary and the consummation by Sinary of the transactions
contemplated hereby have been duly authorized by the Board of Directors of
Sinary and no other actions on the part of Sinary are necessary to authorize
this Agreement or the transactions contemplated hereby. This Agreement has
been
duly and validly executed and delivered by Sinary and constitutes a valid and
binding agreement of Sinary, enforceable against Sinary in accordance with
its
terms, except as such enforcement may be limited by bankruptcy, insolvency
or
other similar laws affecting the enforcement of creditors’ rights generally or
by general principles of equity.
2.5
Consents
and Approvals; No Violations.
Except
for applicable requirements of federal securities laws and state securities
or
blue-sky laws, no filing with, and no permit, authorization, consent or approval
of, any third party, public body or authority is necessary for the consummation
by Sinary of the transactions contemplated by this Agreement. Neither the
execution and delivery of this Agreement by Sinary nor the consummation by
Sinary of the transactions contemplated hereby, nor compliance by Sinary with
any of the provisions hereof, will (a) conflict with or result in any breach
of
any provisions of the charter or Bylaws of Sinary, (b) result in a violation
or
breach of, or constitute (with or without due notice or lapse of time or both)
a
default (or give rise to any right of termination, cancellation or acceleration)
under, any of the terms, conditions or provisions of any note, bond, mortgage,
indenture, license, contract, agreement or other instrument or obligation to
which Sinary is a party or by which they any of their respective properties
or
assets may be bound or (c) violate any order, writ, injunction, decree, statute,
rule or regulation applicable to Sinary, or any of its properties or assets,
except in the case of clauses (b) and (c) for violations, breaches or defaults
which are not in the aggregate material to EXDG taken as a whole.
3
2.6
Books
and Records.
The
books and records of Sinary delivered to EXDG prior to the Closing fully and
fairly reflect the transactions to which Sinary is a party or by which it or
its
properties are bound and there shall be no material difference between the
unaudited financials of Sinary given to EXDG and the actual reviewed US GAAP
results of Sinary for the nine month period ended September 30, 2007.
2.7
Intellectual
Property.
Sinary
has no knowledge of any claim that, or inquiry as to whether, any product,
activity or operation of Sinary infringes upon or involves, or has resulted
in
the infringement of, any trademarks, trade-names, service marks, patents,
copyrights or other proprietary rights of any other person, corporation or
other
entity; and no proceedings have been instituted, are pending or are threatened.
2.8
Litigation.
Sinary
is not subject to any judgment or order of any court or quasi-judicial or
administrative agency of any jurisdiction, domestic or foreign, nor is there
any
charge, complaint, lawsuit or governmental investigation pending against Sinary.
Sinary is not a plaintiff in any action, domestic or foreign, judicial or
administrative. There are no existing actions, suits, proceedings against or
investigations of Sinary, and Sinary knows of no basis for such actions, suits,
proceedings or investigations. There are no unsatisfied judgments, orders,
decrees or stipulations affecting Sinary or to which Sinary is a
party.
2.9
Legal
Compliance.
To the
best knowledge of Sinary, after due investigation, no claim has been filed
against Sinary alleging a violation of any applicable laws and regulations
of
foreign, federal, state and local governments and all agencies thereof. Sinary
hold all of the material permits, licenses, certificates or other authorizations
of foreign, federal, state or local governmental agencies required for the
conduct of their respective businesses as presently conducted.
2.10 Contracts.
Sinary
has delivered to EXDG copies of each and every:
(a)
Contract
or series of related contracts with the following Chinese companies:
(i)
Heilongjiang
Weikang Bio-Technology Group Co., Ltd.
(b) material
agreements of Sinary not made in the ordinary course of business.
All
of
the foregoing are referred to as the “Contracts.” The copies of each of the
Contracts delivered are accurate and complete. Each Contract is in full force
and effect and constitutes a legal, valid and binding obligation of, and is
legally enforceable against, the respective parties thereto. There is no
material default with respect to any such contract which will give rise to
liability in respect thereof on the part of Sinary or the other parties thereto.
No notice of default or similar notice has been given or received by Sinary
under any of such contracts.
4
2.11
Disclosure.
The
representations and warranties and statements of fact made by Sinary in this
Agreement are, as applicable, accurate, correct and complete and do not contain
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements and information contained herein
not
false or misleading.
ARTICLE
3
REPRESENTATIONS
AND WARRANTIES
OF
THE SINARY STOCKHOLDER
The
Sinary Stockholder hereby represents and warrants to EXDG as
follows:
3.1 Ownership
of the Sinary Shares.
Sinary
Stockholder owns, beneficially and of record, good and marketable title to
the
100% of the Sinary Shares, free and clear of all security interests, liens,
adverse claims, encumbrances, equities, proxies, options or Stockholders’
agreements. The Sinary Stockholder represents that such person has no right
or
claims whatsoever to any shares of Sinary capital stock, other than the Sinary
Shares that Sinary Stockholder owns and Sinary Stockholder does not have any
options, warrants or any other instruments entitling Sinary Stockholder to
exercise to purchase or convert into shares of Sinary capital stock. At the
Closing, Sinary Stockholder will convey to EXDG good and marketable title to
the
Sinary Shares, free and clear of any security interests, liens, adverse claims,
encumbrances, equities, proxies, options, shareholders’ agreements or
restrictions.
3.2
Authority
Relative to this Agreement.
This
Agreement has been duly and validly executed and delivered by Sinary Stockholder
and constitutes a valid and binding agreement of Sinary Stockholder, enforceable
against Sinary Stockholder in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency or other similar laws
affecting the enforcement of creditors’ rights generally or by general
principles of equity.
3.3 Restricted
Securities.
Sinary
Stockholder acknowledges that the EXDG Shares will not be registered pursuant
to
the Securities Act of 1933, as amended (the “Securities Act”) or any applicable
state securities laws, that the EXDG Shares will be characterized as “restricted
securities” under federal securities laws, and that under such laws and
applicable regulations the EXDG Shares cannot be sold or otherwise disposed
of
without registration under the Securities Act or an exemption therefrom. In
this
regard, Sinary Stockholder is familiar with Rule 144 promulgated under the
Securities Act, as currently in effect, and understands the resale limitations
imposed thereby and by the Securities Act.
3.4 Accredited
Investor.
Sinary
Stockholder is an “Accredited Investor” as that term is defined in Rule 501 of
Regulation D promulgated under the Securities Act. Sinary Stockholder is able
to
bear the economic risk of acquiring the EXDG Shares pursuant to the terms of
this Agreement, including a complete loss of Sinary Stockholder’s investment in
the EXDG Shares.
3.5 Legend.
Sinary
Stockholder acknowledges that the certificate(s) representing the EXDG Shares
to
be transferred to Sinary Stockholder shall conspicuously set forth on the face
or back thereof a legend in substantially the following form:
THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID
ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
5
ARTICLE
4
REPRESENTATIONS
AND WARRANTIES OF
EXDG
AND THE EXDG STOCKHOLDERS
EXDG
and
the EXDG Stockholders hereby represent and warrant, jointly and severally,
to
Sinary and Sinary Stockholder as of the date hereof and as of the Closing Date
(unless otherwise indicated), as follows:
4.1
Organization.
EXDG is
a corporation duly organized, validly existing and in good standing under the
laws of the state of its incorporation, and has the requisite corporate power
to
carry on its business as now conducted.
4.2
Capitalization.
EXDG’s
authorized capital stock consists of 150,000,000 shares of capital stock,
100,000,000 of which are designated as Common Stock, $.00001 par value per
share
and 50,000,000 of which are designated as Preferred Stock, $.01 par value per
share, of which 25,229,800 shares of Common Stock and no shares of Preferred
Stock are and shall be issued and outstanding immediately prior to the Closing.
When issued, the EXDG Shares and the securities into which the EXDG Shares
can
be converted into will be duly authorized, validly issued, fully paid,
non-assessable and free of preemptive rights. There are no outstanding or
authorized options, rights, warrants, calls, convertible securities, rights
to
subscribe, conversion rights or other agreements or commitments to which EXDG
is
a party or which are binding upon EXDG providing for the issuance by EXDG or
transfer by EXDG of additional shares of EXDG’s capital stock and EXDG has not
reserved any shares of its capital stock for issuance, nor are there any
outstanding stock option rights, phantom equity or similar rights, contracts,
arrangements or commitments to issue capital stock of EXDG. There are no voting
trusts or any other agreements or understandings with respect to the voting
of
EXDG’s capital stock. There are no obligations of EXDG to repurchase, redeem or
otherwise require any shares of its capital stock as of the Closing.
4.3
Certain
Corporate Matters.
EXDG is
duly licensed or qualified to do business and is in good standing as a foreign
corporation in every jurisdiction in which the character of such properties
or
nature of such business requires it to be so licensed or qualified other than
such jurisdictions in which the failure to be so licensed or qualified does
not,
or insofar as can reasonably be foreseen, in the future will not, have a
material adverse effect on its financial condition, results of operations or
business. EXDG has full corporate power and authority and all authorizations,
licenses and permits necessary to carry on the business in which it is engaged
or in which it proposes presently to engage and to own and use the properties
owned and used by it. EXDG has delivered to Sinary true, accurate and complete
copies of its certificate or articles of incorporation and bylaws of EXDG,
which
reflect all restatements of and amendments made thereto at any time prior to
the
date of this Agreement. The records of meetings of the Stockholders and Board
of
Directors of EXDG are complete and correct in all material respects. The stock
records of EXDG and the Stockholder lists of EXDG that EXDG has previously
furnished to Sinary are complete and correct in all material respects and
accurately reflect the record ownership and the beneficial ownership of all
the
outstanding shares of EXDG’s capital stock and any other outstanding securities
issued by EXDG. EXDG is not in default under or in violation of any provision
of
its certificate or articles of incorporation or bylaws in any material respect.
EXDG is not in any material default or in violation of any restriction, lien,
encumbrance, indenture, contract, lease, sublease, loan agreement, note or
other
obligation or liability by which it is bound or to which any of its assets
is
subject.
4.4
Authority
Relative to this Agreement.
Each of
EXDG and the EXDG Stockholders has the requisite power and authority to enter
into this Agreement and carry out its or his obligations hereunder. The
execution, delivery and performance of this Agreement by EXDG and the
consummation of the transactions contemplated hereby have been duly authorized
by the Board of Directors of EXDG, and no other actions on the part of EXDG
are
necessary to authorize this Agreement or the transactions contemplated hereby.
This Agreement has been duly and validly executed and delivered by EXDG and
the
EXDG Stockholders and constitutes a valid and binding obligation of EXDG and
each of the EXDG Stockholders, enforceable in accordance with its terms, except
as such enforcement may be limited by bankruptcy, insolvency or other similar
laws affecting the enforcement of creditors’ rights generally or by general
principles of equity.
6
4.5
Consents
and Approvals; No Violations.
Except
for applicable requirements of federal securities laws and state securities
or
blue-sky laws, no filing with, and no permit, authorization, consent or approval
of, any third party, public body or authority is necessary for the consummation
by EXDG of the transactions contemplated by this Agreement. Neither the
execution and delivery of this Agreement by EXDG nor the consummation by EXDG
of
the transactions contemplated hereby, nor compliance by EXDG with any of the
provisions hereof, will (a) conflict with or result in any breach of any
provisions of the charter or Bylaws of EXDG, (b) result in a violation or breach
of, or constitute (with or without due notice or lapse of time or both) a
default (or give rise to any right of termination, cancellation or acceleration)
under, any of the terms, conditions or provisions of any note, bond, mortgage,
indenture, license, contract, agreement or other instrument or obligation to
which EXDG is a party or by which they any of their respective properties or
assets may be bound or (c) violate any order, writ, injunction, decree, statute,
rule or regulation applicable to EXDG, or any of their respective properties
or
assets, except in the case of clauses (b) and (c) for violations, breaches
or
defaults which are not in the aggregate material to EXDG taken as a
whole.
4.6 SEC
Documents.
EXDG
hereby makes reference to the following documents filed with the United States
Securities and Exchange Commission (the “SEC”), as posted on the SEC’s website,
xxx.xxx.xxx:
(collectively, the “SEC Documents”): (a) Registration Statements on Form SB-2 on
June 30, 2006, and all amendments thereto; (b) Annual Reports on Form 10-KSB
for
the fiscal years ended December 31, 2006, and any amendments thereto; and (c)
Quarterly Reports on Form 10-QSB for the periods ended March 31, 2007, June
30,
2007, and September 30, 2007, and any amendments thereto. The SEC Documents
constitute all of the documents and reports that EXDG was required to file
with
the SEC pursuant to the Securities Exchange Act of 1934 (“Exchange Act”) and the
rules and regulations promulgated thereunder by the SEC since the effectiveness
of any and all registration statements of EXDG on Form SB-2. As of their
respective dates, the SEC Documents complied in all material respects with
the
requirements of the Securities Act and/or the Exchange Act, as the case may
require, and the rules and regulations promulgated thereunder and none of the
SEC Documents contained an untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. As
of the
date of Closing, except as set forth in the disclosure schedule attached hereto,
none of EXDG’s filings with the SEC are under review or are the subject of
issued comments under letters from the SEC which have not been resolved.
The
consolidated financial statements of EXDG included in the SEC Documents comply
as to form in all material respects with applicable accounting requirements
and
the published rules and regulations of the SEC with respect thereto, have been
prepared in accordance with generally accepted accounting principles in the
United States (except, in the case of unaudited statements, as permitted by
the
applicable form under the Securities Act and/or the Exchange Act) applied on
a
consistent basis during the periods involved (except as may be indicated in
the
notes thereto) and fairly present the financial position of EXDG as of the
dates
thereof and its consolidated statements of operations, Stockholders’ equity and
cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal and recurring year-end audit adjustments which were and
are not expected to have a material adverse effect on EXDG, its business,
financial condition or results of operations). Except as and to the extent
set
forth on the consolidated balance sheet of EXDG as of December 31, 2006,
including the notes thereto, EXDG has no liability or obligation of any nature
(whether accrued, absolute, contingent or otherwise and whether required to
be
reflected on a balance sheet or not).
7
4.7 Financial
Statements.
(a) Included
in the SEC Documents are the audited consolidated balance sheet of EXDG as
of
December 31, 2006 and 2005, and the related statement of operations,
Stockholders’ equity and cash flows for the two years then ended, together with
the unqualified report thereon (except with respect to continuation as a going
concern) of Xxxxxx Xxxxxxx & Company LLP (“Xxxxxx”), independent
auditors (collectively, “EXDG’s Audited Financials”).
(b) Included
in the SEC Documents are the unaudited consolidated balance sheet of EXDG as
at
September 30, 2007, and the related statement of operations, Stockholders’
equity and cash flows for the nine months then ended, as reviewed by Xxxxxx
(“EXDG’s Interim Financials”).
(c) EXDG’s
Audited Financials and EXDG’s Interim Financials (collectively “EXDG’s Financial
Statements”) are (i) in accordance with the books and records of EXDG, (ii)
correct and complete, (iii) fairly present the financial position and results
of
operations of EXDG as of the dates indicated, and (iv) prepared in accordance
with U.S. GAAP except that (x) unaudited financial statements may not be in
accordance with GAAP because of the absence of footnotes normally contained
therein, and (y) interim (unaudited) financials are subject to normal year-end
audit adjustments that in the aggregate will not have a material adverse effect
on EXDG, its business, financial condition or results of operations.
4.8
Events
Subsequent to Financial Statements.
Except
as disclosed in Schedule
4.8,
since
the filing of EXDG’s Form 10-QSB for the quarter ended September 30, 2007, there
has not been:
(a) Any
sale,
lease, transfer, license or assignment of any assets, tangible or intangible,
of
EXDG;
(b)
Any
damage, destruction or property loss, whether or not covered by insurance,
affecting adversely the properties or business of EXDG;
(c)
Any
declaration or setting aside or payment of any dividend or distribution with
respect to the shares of capital stock of EXDG or any redemption, purchase
or
other acquisition of any such shares;
(d)
Any
subjection to any lien on any of the assets, tangible or intangible, of
EXDG;
(e)
Any
incurrence of indebtedness or liability or assumption of obligations by
EXDG;
(f)
Any
waiver or release by EXDG of any right of any material value;
(g)
Any
compensation or benefits paid to officers or directors of EXDG;
(h)
Any
change made or authorized in the Articles of Incorporation or Bylaws of EXDG;
8
(i)
Any
loan
to or other transaction with any officer, director or Stockholder of EXDG giving
rise to any claim or right of EXDG against any such person or of such person
against EXDG; or
(j)
Any
material adverse change in the condition (financial or otherwise) of the
respective properties, assets, liabilities or business of EXDG.
4.9 Liabilities.
Except
as otherwise disclosed in EXDG’s Financial Statements or to be paid pursuant to
the $650,000 payment set forth in Section 1.1(d) hereinabove as listed on
Schedule
4.9
attached
hereto, EXDG has no liability or obligation whatsoever, either direct or
indirect, matured or unmatured, accrued, absolute, contingent or otherwise.
In
addition, EXDG and the EXDG Stockholders represent that upon Closing, EXDG
will
not have any liability or obligation whatsoever, either direct or indirect,
matured or unmatured, accrued, absolute, contingent or otherwise.
4.10
Tax
Matters.
Except
as disclosed in Schedule
4.10:
(a)
EXDG
has
duly filed all material federal, state, local and foreign tax returns required
to be filed by or with respect to them with the Internal Revenue Service or
other applicable taxing authority, and no extensions with respect to such tax
returns have been requested or granted;
(b)
EXDG
has
paid, or adequately reserved against in EXDG’s Financial Statements, all
material taxes due, or claimed by any taxing authority to be due, from or with
respect to them;
(c)
To
the
best knowledge of EXDG, there has been no material issue raised or material
adjustment proposed (and none is pending) by the Internal Revenue Service or
any
other taxing authority in connection with any of EXDG’s tax
returns;
(d)
No
waiver
or extension of any statute of limitations as to any material federal, state,
local or foreign tax matter has been given by or requested from EXDG;
and
For
the
purposes of this Section
4.10,
a tax
is due (and must therefore either be paid or adequately reserved against in
EXDG’s Financial Statements) only on the last date payment of such tax can be
made without interest or penalties, whether such payment is due in respect
of
estimated taxes, withholding taxes, required tax credits or any other
tax.
4.11
Real
Property.
EXDG
does not own or lease any real property.
4.12
Books
and Records.
The
books and records of EXDG delivered to Sinary Stockholder prior to the Closing
fully and fairly reflect the transactions to which EXDG is a party or by which
they or their properties are bound.
4.13
Questionable
Payments.
EXDG,
nor any employee, agent or representative of EXDG has, directly or indirectly,
made any bribes, kickbacks, illegal payments or illegal political contributions
using Company funds or made any payments from EXDG’s funds to governmental
officials for improper purposes or made any illegal payments from EXDG’s funds
to obtain or retain business.
4.14
Intellectual
Property.
EXDG
does not own or use any trademarks, trade names, service marks, patents,
copyrights or any applications with respect thereto. EXDG and the EXDG
Stockholders have no knowledge of any claim that, or inquiry as to whether,
any
product, activity or operation of EXDG infringes upon or involves, or has
resulted in the infringement of, any trademarks, trade-names, service marks,
patents, copyrights or other proprietary rights of any other person, corporation
or other entity; and no proceedings have been instituted, are pending or are
threatened.
9
4.15
Insurance.
EXDG
has no insurance policies in effect.
4.16
Contracts.
Except
as set forth on Schedule
4.16,
EXDG
has no material contracts, leases, arrangements or commitments (whether oral
or
written). EXDG is not a party to or bound by or affected by any contract, lease,
arrangement or commitment (whether oral or written) relating to: (a) the
employment of any person; (b) collective bargaining with, or any representation
of any employees by, any labor union or association; (c) the acquisition of
services, supplies, equipment or other personal property; (d) the purchase
or
sale of real property; (e) distribution, agency or construction; (f) lease
of
real or personal property as lessor or lessee or sublessor or sublessee; (g)
lending or advancing of funds; (h) borrowing of funds or receipt of credit;
(i)
incurring any obligation or liability; or (j) the sale of personal
property.
4.17
Litigation.
EXDG is
not subject to any judgment or order of any court or quasi-judicial or
administrative agency of any jurisdiction, domestic or foreign, nor is there
any
charge, complaint, lawsuit or governmental investigation pending against EXDG.
EXDG is a plaintiff in any action, domestic or foreign, judicial or
administrative. There are no existing actions, suits, proceedings against or
investigations of EXDG, and EXDG knows of no basis for such actions, suits,
proceedings or investigations. There are no unsatisfied judgments, orders,
decrees or stipulations affecting EXDG or to which EXDG is a party.
4.18
Employees.
EXDG
has no employees. EXDG owes no compensation of any kind, deferred or otherwise,
to any current or previous employees. EXDG has no written or oral employment
agreement with any officer or director of EXDG. EXDG is not a party to or bound
by any collective bargaining agreement. Except as set forth on Schedule
4.18,
there
are no loans or other obligations payable or owing by EXDG to any Stockholder,
officer, director or employee of EXDG, nor are there any loans or debts payable
or owing by any of such persons to EXDG or any guarantees by EXDG of any loan
or
obligation of any nature to which any such person is a party.
4.19
Employee
Benefit Plans.
EXDG
does not have any (a) non-qualified deferred or incentive compensation or
retirement plans or arrangements, (b) qualified retirement plans or
arrangements, (c) other employee compensation, severance or termination pay
or
welfare benefit plans, programs or arrangements or (d) any related trusts,
insurance contracts or other funding arrangements maintained, established or
contributed to by EXDG.
4.20
Legal
Compliance.
To the
best knowledge of EXDG, after due investigation, no claim has been filed against
EXDG alleging a violation of any applicable laws and regulations of foreign,
federal, state and local governments and all agencies thereof. EXDG hold all
of
the material permits, licenses, certificates or other authorizations of foreign,
federal, state or local governmental agencies required for the conduct of its
business as presently conducted.
4.21 Subsidiaries
and Investments.
EXDG
neither owns any capital stock, has any interest of any kind nor has any
agreement or commitment to purchase any interest, whatsoever in any corporation,
partnership, or other form of business organization.
4.22
Broker’s
Fees.
Neither
EXDG, nor anyone on its behalf has any liability to any broker, finder,
investment banker or agent, or has agreed to pay any brokerage fees, finder’s
fees or commissions, or to reimburse any expenses of any broker, finder,
investment banker or agent in connection with this Agreement.
10
4.23 Internal
Accounting Controls.
EXDG
maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and (iv)
the recorded accountability for assets is compared with the existing assets
at
reasonable intervals and appropriate action is taken with respect to any
differences.
EXDG has
established disclosure controls and procedures (as defined in Exchange Act
Rules
13a-15(e) and 15d-15(e)) for EXDG and designed such disclosure controls and
procedures to ensure that material information relating to EXDG is made known
to
the certifying officers by others within those entities, particularly during
the
period in which the EXDG’s Form 10-KSB or 10-QSB, as the case may be, is being
prepared. EXDG’s certifying officers have evaluated the effectiveness of EXDG’s
controls and procedures as of end of the filing period prior to the filing
date
of the Form 10-QSB for the quarter ended September 30, 2007 (such date, the
“Evaluation
Date”).
EXDG
presented in its most recently filed Form 10-KSB or Form 10-QSB the conclusions
of the certifying officers about the effectiveness of the disclosure controls
and procedures based on their evaluations as of the Evaluation Date. Since
the
Evaluation Date, there have been no significant changes in EXDG’s internal
controls (as such term is defined in Item 307(b) of Regulation S-K under the
Exchange Act) or, to EXDG’s knowledge, in other factors that could significantly
affect EXDG’s internal controls.
4.24 Listing
and Maintenance Requirements.
EXDG’s
common stock is currently quoted on the OTC Bulletin Board and EXDG has not,
in
the 12 months preceding the date hereof, received any notice from the OTC
Bulletin Board or the NASD or any trading market on which EXDG’s common stock is
or has been listed or quoted to the effect that EXDG is not in compliance with
the quoting, listing or maintenance requirements of the OTCBB or such other
trading market. EXDG is, and has no reason to believe that it will not, in
the
foreseeable future continue to be, in compliance with all such quoting, listing
and maintenance requirements.
4.25 Application
of Takeover Protections.
EXDG
and its board of directors have taken all necessary action, if any, in order
to
render inapplicable any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or other similar
anti-takeover provision under EXDG’s certificate or articles of incorporation
(or similar charter documents) or the laws of its state of incorporation that
is
or could become applicable to Sinary or the Sinary Stockholder as a result
of
the Acquisition or the exercise of any rights by Sinary or the Sinary
Stockholder pursuant to this Agreement.
4.26 No
SEC
or NASD Inquiries.
Neither
EXDG nor any of its past or present officers or directors is, or has ever been,
the subject of any formal or informal inquiry or investigation by the SEC or
NASD.
4.27 Restrictions
on Business Activities.
Except
as disclosed on Schedule
4.27
hereto,
there is no agreement, commitment, judgment, injunction, order or decree binding
upon EXDG or to which EXDG is a party which has or could reasonably be expected
to have the effect of prohibiting or materially impairing any business practice
of EXDG, any acquisition of property by EXDG or the conduct of business by
Sinary or EXDG as currently conducted, other than such effects, individually
or
in the aggregate, which have not had and could not reasonably be expected to
have a Material Adverse Effect on EXDG.
4.28 Interested
Party Transactions.
Except
as set forth in the Schedule
4.28
hereto
or as reflected in the financial statements to be delivered hereunder, no
employee, officer, director or shareholder of EXDG or a member of his or her
immediate family is indebted to EXDG, nor are EXDG indebted (or committed to
make loans or extend or guarantee credit) to any of them, other than (i) for
payment of salary for services rendered, (ii) reimbursement for reasonable
expenses incurred on behalf of EXDG, and (iii) for other employee benefits
made
generally available to all employees. Except as set forth in Schedule
4.28,
to the
knowledge of EXDG, no employee, officer, director or shareholder or any member
of their immediate families is, directly or indirectly, interested in any
material contract with EXDG (other than such contracts as relate to any such
individual ownership of interests in or securities of EXDG).
11
4.29
Disclosure.
The
representations and warranties and statements of fact made by EXDG in this
Agreement are, as applicable, accurate, correct and complete and do not contain
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements and information contained herein
not
false or misleading.
ARTICLE
5
INDEMNIFICATION
5.1 EXDG
Stockholders Indemnification.
For a
period of one year after the Closing, the EXDG Stockholders (“Indemnifying
Party”) agree to indemnify Sinary, the Sinary Stockholder and each of the
officers, agents and directors of Sinary or the Sinary Stockholder (each an
“Indemnified Party”) against any loss, liability, claim, damage or expense
(including, but not limited to, any and all expenses whatsoever reasonably
incurred in investigating, preparing or defending against any litigation,
commenced or threatened, or any claim whatsoever) (each, a “Claim”) to which it
or they may become subject arising out of or based on either (i) any breach
of
or inaccuracy in any of the representations and warranties or covenants or
conditions made by EXDG and/or the EXDG Stockholders herein in this Agreement;
or (ii) any and all liabilities arising out of or in connection with: (A) any
of
the assets of EXDG prior to the Closing; or (B) the operations of EXDG prior
to
the Closing (the “EXDG Stockholders Indemnification”). During the period of the
EXDG Stockholders Indemnification, if Sinary or the Sinary Stockholder shall
become reasonably aware of any Claim covered by this Section 5.1, and while
such
Claim is unresolved, Sinary shall have the right to issue stop transfer
instructions to its transfer agent with respect to the EXDG Shares held by
the
Indemnifying Party.
5.2 Indemnification
Procedures.
If any
action shall be brought against any Indemnified Party in respect of which
indemnity may be sought pursuant to this Agreement, such Indemnified Party
shall
promptly notify the Indemnifying Party in writing, and the Indemnifying Party
shall have the right to assume the defense thereof with counsel of its own
choosing. Any Indemnified Party shall have the right to employ separate counsel
in any such action and participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party
except to the extent that the employment thereof has been specifically
authorized by the Indemnifying Party in writing, the Indemnifying Party has
failed after a reasonable period of time to assume such defense and to employ
counsel or in such action there is, in the reasonable opinion of such separate
counsel, a material conflict on any material issue between the position of
the
Indemnifying Party and the position of such Indemnified Party. The Indemnifying
Party will not be liable to any Indemnified Party under this Article 5 for
any
settlement by an Indemnified Party effected without the Indemnifying Party’s
prior written consent, which shall not be unreasonably withheld or delayed;
or
to the extent, but only to the extent that a loss, claim, damage or liability
is
attributable to any Indemnified Party’s indemnification pursuant to this Article
5.
12
ARTICLE
6
COVENANTS
AND AGREEMENTS OF THE PARTIES
EFFECTIVE
PRIOR TO CLOSING
6.1
Corporate
Examinations and Investigations.
Prior
to the Closing, each party shall be entitled, through its employees and
representatives, to make such investigations and examinations of the books,
records and financial condition of Sinary and EXDG as each party may request.
In
order that each party may have the full opportunity to do so, Sinary, EXDG,
the
Sinary Stockholder and the EXDG Stockholders shall furnish each party and its
representatives during such period with all such information concerning the
affairs of Sinary or EXDG as each party or its representatives may reasonably
request and cause Sinary or EXDG and their respective officers, employees,
consultants, agents, accountants and attorneys to cooperate fully with each
party’s representatives in connection with such review and examination and to
make full disclosure of all information and documents requested by each party
and/or its representatives. Any such investigations and examinations shall
be
conducted at reasonable times and under reasonable circumstances, it being
agreed that any examination of original documents will be at each party’s
premises, with copies thereof to be provided to each party and/or its
representatives upon request.
6.2 Cooperation;
Consents.
Prior
to the Closing, each party shall cooperate with the other parties to the end
that the parties shall (i) in a timely manner make all necessary filings with,
and conduct negotiations with, all authorities and other persons the consent
or
approval of which, or the license or permit from which is required for the
consummation of the Acquisition and (ii) provide to each other party such
information as the other party may reasonably request in order to enable it
to
prepare such filings and to conduct such negotiations.
6.3 Conduct
of Business.
Subject
to the provisions hereof, from the date hereof through the Closing, each party
hereto shall (i) conduct its business in the ordinary course and in such a
manner so that the representations and warranties contained herein shall
continue to be true and correct in all material respects as of the Closing
as if
made at and as of the Closing and (ii) not enter into any material transactions
or incur any material liability not required or specifically contemplated
hereby, without first obtaining the written consent of Sinary and the holders
of
a majority of voting stock of Sinary on the one hand and EXDG and the holders
of
a majority of voting stock of EXDG common stock on the other hand. Without
the
prior written consent of Sinary, the Sinary Stockholder, EXDG or the EXDG
Stockholders except as required or specifically contemplated hereby, each party
shall not undertake or fail to undertake any action if such action or failure
would render any of said warranties and representations untrue in any material
respect as of the Closing.
6.4 Litigation.
From
the date hereof through the Closing, each party hereto shall promptly notify
the
representative of the other parties of any lawsuits, claims, proceedings or
investigations which after the date hereof are threatened or commenced against
such party or any of its affiliates or any officer, director, employee,
consultant, agent or shareholder thereof, in their capacities as such, which,
if
decided adversely, could reasonably be expected to have a material adverse
effect upon the condition (financial or otherwise), assets, liabilities,
business, operations or prospects of such party or any of its
subsidiaries.
6.5 Notice
of Default.
From
the date hereof through the Closing, each party hereto shall give to the
representative of the other parties prompt written notice of the occurrence
or
existence of any event, condition or circumstance occurring which would
constitute a violation or breach of this Agreement by such party or which would
render inaccurate in any material respect any of such party’s representations or
warranties herein.
6.6 Share
Cancellation.
Immediately prior to the Closing, the EXDG Stockholders shall each cause the
cancellation of their EXDG Shares as set forth to the right of their names
on
the Signature Page for EXDG Stockholders that is attached hereto, and which
in
the aggregate shall total 24,725,200 shares of EXDG’s common stock. In
connection with such share cancellation, each of the EXDG Stockholders agrees
to
execute and deliver any documents and instruments reasonably necessary to effect
such cancellation, including original stock certificate(s) and stock powers,
with proper endorsements and/or medallion certified signatures.
13
6.7 Bylaws.
If
necessary, EXDG shall amend its Bylaws to permit the election and/or appointment
of additional new directors to EXDG’s Board of Directors as set forth in Section
7.1(a) below.
6.8 Confidentiality;
Access to Information.
(a) Any
confidentiality agreement or letter of intent previously executed by the parties
shall be superseded in its entirety by the provisions of this Agreement. Each
party agrees to maintain in confidence any non-public information received
from
the other party, and to use such non-public information only for purposes of
consummating the transactions contemplated by this Agreement. Such
confidentiality obligations will not apply to (i) information which was known
to
the one party or their respective agents prior to receipt from the other party;
(ii) information which is or becomes generally known; (iii) information acquired
by a party or their respective agents from a third party who was not bound
to an
obligation of confidentiality; and (iv) disclosure required by law. In the
event
this Agreement is terminated as provided in Article 8 hereof, each party will
return or cause to be returned to the other all documents and other material
obtained from the other in connection with the Transaction contemplated
hereby.
(b) Access
to
Information.
(i) Sinary
will afford EXDG and its financial advisors, accountants, counsel and other
representatives reasonable access during normal business hours, upon reasonable
notice, to the properties, books, records and personnel of Sinary during the
period prior to the Closing to obtain all information concerning the business,
including the status of product development efforts, properties, results of
operations and personnel of Sinary, as EXDG may reasonably request. No
information or knowledge obtained by EXDG in any investigation pursuant to
this
Section 6.8 will affect or be deemed to modify any representation or warranty
contained herein or the conditions to the obligations of the parties to
consummate the Transaction.
(ii) EXDG
will
afford Sinary and its financial advisors, underwriters, accountants, counsel
and
other representatives reasonable access during normal business hours, upon
reasonable notice, to the properties, books, records and personnel of EXDG
during the period prior to the Closing to obtain all information concerning
the
business, including the status of product development efforts, properties,
results of operations and personnel of EXDG, as Sinary may reasonably request.
No information or knowledge obtained by Sinary in any investigation pursuant
to
this Section 6.8 will affect or be deemed to modify any representation or
warranty contained herein or the conditions to the obligations of the parties
to
consummate the Transaction.
6.9
Public
Disclosure.
Except
to the extent previously disclosed or to the extent the parties believe that
they are required by applicable law or regulation to make disclosure, prior
to
Closing, no party shall issue any statement or communication to the public
regarding the transaction contemplated herein without the consent of the other
party, which consent shall not be unreasonably withheld. To the extent a party
hereto believes it is required by law or regulation to make disclosure regarding
the Transaction, it shall, if possible, immediately notify the other party
prior
to such disclosure. Notwithstanding the foregoing, the parties hereto agree
that
EXDG will prepare and file a Current Report on Form 8-K pursuant to the Exchange
Act reasonably acceptable to Sinary to report the execution of this Agreement
and that any party hereto may file any reports as required by the Exchange
Act
including, without limitation, any reports on Schedule 13D.
14
6.10 Assistance
with Post-Closing SEC Reports and Inquiries.
Upon
the reasonable request of Sinary, after the Closing Date, each EXDG Stockholder
shall use his reasonable best efforts to provide such information available
to
it, including information, filings, reports, financial statements or other
circumstances of EXDG occurring, reported or filed prior to the Closing, as
may
be necessary or required by EXDG for the preparation of the post-Closing Date
reports that EXDG is required to file with the SEC to remain in compliance
and
current with its reporting requirements under the Exchange Act, or filings
required to address and resolve matters as may relate to the period prior to
the
Closing and any SEC comments relating thereto or any SEC inquiry
thereof.
ARTICLE
7
CONDITIONS
TO CLOSING
7.1
Conditions
to Obligations of Sinary and the Sinary Stockholder.
The
obligations of Sinary and the Sinary Stockholder under this Agreement shall
be
subject to each of the following conditions:
(a) Closing
Deliveries.
At the
Closing, EXDG and/or the EXDG Stockholders shall have delivered or caused to
be
delivered to Sinary and the Sinary Stockholder the following:
(i)
resolutions
duly adopted by the Board of Directors of EXDG authorizing and approving the
Acquisition and the execution, delivery and performance of this
Agreement;
(ii)
a
certificate of good standing for EXDG from its jurisdiction of incorporation,
dated not earlier than five days prior to the Closing Date;
(iii)
written
resignations of all officers of EXDG in office immediately prior to the Closing,
effective on the Closing Date, written resignations of all directors of EXDG
in
office immediately prior to the Closing, effective ten days following the
mailing of the notice on Schedule 14f-1 to EXDG’s stockholders in compliance
with Section 14(f) of the Securities
Exchange Act of 1934,
as
amended, and Rule 14f-1 thereunder, and board resolutions electing the following
individuals to the positions with EXDG listed opposite their names
below:
Xxxx
Xxxx
Xxxxxx
Xxx
|
Chief
Executive Officer and Chairman of the Board of Directors
Chief
Financial Officer and Secretary
|
(iv) stock
certificate representing the EXDG Shares to be delivered pursuant to this
Agreement registered in the name of the Sinary Stockholder;
(v)
this
Agreement duly executed by EXDG and the EXDG Stockholders;
(vi) A
duly
executed waiver agreement by and between Xx. Xxxxx Xxxxxx (“Xx. Xxxxxx”) and the
Company in which Xx. Xxxxxx agrees to the cancellation of all amounts owed
by
the Company to Xx. Xxxxxx as of the Closing including all accrued compensation
owed to Xx. Xxxxxx for his services to the Company;
15
(vii) A
duly
executed waiver agreement by and between Xx. Xxxxx XxXxxxx (“Xx. XxXxxxx”) and
the Company in which Xx. XxXxxxx agrees to the cancellation of all amounts
owed
by the Company to Xx. XxXxxxx as of the Closing including all accrued
compensation owed to Xx. XxXxxxx for his services to the Company;
(viii) A
duly
executed waiver agreement by and between Expedition Holdings, Inc. (the
Company’s former wholly-owned subsidiary), Total M.I.S. (current 100% equity
owner of Expedition Holdings, Inc.), and the Company in which Expedition
Holdings, Inc. and Total M.I.S. agree to the cancellation of the $68,889 owed
by
the Company to Expedition Holdings, Inc. in connection with the Settlement
Agreement entered into by and between Total M.I.S., Expedition Holdings, Inc.
and the Company dated August 17, 2007;
(ix) all
corporate records, agreements, seals and any other information reasonably
requested by Sinary’s representatives with respect to EXDG; and
(x) such
other documents as Sinary and/or the Sinary Stockholder may reasonably request
in connection with the transactions contemplated hereby.
(b) Representations
and Warranties to be True.
The
representations and warranties of EXDG and the EXDG Stockholders herein
contained shall be true in all material respects at the Closing with the same
effect as though made at such time. EXDG and the EXDG Stockholders shall have
performed in all material respects all obligations and complied in all material
respects with all covenants and conditions required by this Agreement to be
performed or complied with by them at or prior to the Closing.
(c) Transfer
of On-Going Business.
All
current assets of EXDG shall have been transferred to entities owned by certain
EXDG Stockholders, in complete settlement of outstanding debt owed to such
shareholders. EXDG and/or the EXDG Stockholders shall use the proceeds of the
purchase price hereunder to settle all other outstanding debts, payables and
liabilities of EXDG on or prior to the Closing Date, and such proceeds may
be
paid out of escrow on the Closing Date. EXDG shall have delivered documentary
evidence of such transfer(s) and transactions reasonably satisfactory to
Sinary.
(d) No
Assets and Liabilities.
At the
Closing, EXDG shall have no liabilities, debts or payables (contingent or
otherwise), no tax obligations, no material assets, and except as contemplated
in this Agreement, no material changes to its business or financial condition
shall have occurred since the date of this Agreement.
(e) SEC
Filings.
At the
Closing, EXDG will be current in all SEC filings required by it to be filed.
(f) Outstanding
Common Stock.
EXDG
shall have at least 100,000,000 shares of its common stock authorized and shall
have no more than 504,600 shares of its common stock issued and outstanding
after cancellation of 24,725,200 shares of EXDG common stock held by the EXDG
Stockholders.
16
7.2 Conditions
to Obligations of EXDG and the EXDG Stockholders.
The
obligations of EXDG and the EXDG Stockholders under this Agreement shall be
subject to each of the following conditions:
(a) Closing
Deliveries.
On the
Closing Date, Sinary and/or the Sinary Stockholder shall have delivered to
EXDG
the following:
(i)
|
this
Agreement duly executed by Sinary and the Sinary Stockholder;
|
(ii)
|
resolutions
duly adopted by the Board of Directors of Sinary authorizing and
approving
the Acquisition and the execution, delivery and performance of this
Agreement;
|
(iii)
|
stock
certificates representing the Sinary Shares to be delivered pursuant
to
this Agreement duly endorsed or accompanied by duly executed stock
powers;
|
(iv)
|
the
$650,000 payment set forth in Section 1.1(d) hereinabove;
and
|
(v)
|
such
other documents as EXDG may reasonably request in connection with
the
transactions contemplated hereby.
|
(b) Representations
and Warranties True and Correct.
The
representations and warranties of Sinary and the Sinary Stockholder herein
contained shall be true in all material respects at the Closing with the same
effect as though made at such time. Sinary and the Sinary Stockholder shall
have
performed in all material respects all obligations and complied in all material
respects with all covenants and conditions required by this Agreement to be
performed or complied with by them at or prior to the Closing.
ARTICLE
8
SEC
FILING; TERMINATION
8.1 At
or
prior to Closing, EXDG shall prepare the information statement required by
Rule
14f-1 promulgated under the Exchange Act (“14f-1 Information Statement”), and
EXDG shall file the 14f-1 Information Statement with the SEC and mail the same
to each of EXDG’s shareholders of record. EXDG will
use
its best efforts to ensure that the Company’s current sole director, Xx. Xxxxx
Xxxxxx, will remain as a director of the Company until the expiration of the
10-day period beginning on the date of the mailing of the 14f-1 Information
Statement.
8.2 This
Agreement may be terminated at any time prior to the Closing:
(a) by
mutual
written agreement of EXDG and Sinary;
(b) by
either
EXDG or Sinary if the Transaction shall not have been consummated for any reason
by December 15, 2007; provided, however, that the right to terminate this
Agreement under this Section 8.2(b) shall not be available to any party whose
action or failure to act has been a principal cause of or resulted in the
failure of the Transaction to occur on or before such date and such action
or
failure to act constitutes a breach of this Agreement;
(c) by
either
EXDG or Sinary if a governmental entity shall have issued an order, decree
or
ruling or taken any other action, in any case having the effect of permanently
restraining, enjoining or otherwise prohibiting the Transaction, which order,
decree, ruling or other action is final and non-appealable;
17
(d) by
Sinary, upon a material breach of any representation, warranty, covenant or
agreement on the part of EXDG set forth in this Agreement, or if any
representation or warranty of EXDG shall have become materially untrue, in
either case such that the conditions set forth in Section 7.1 would not be
satisfied as of the time of such breach or as of the time such representation
or
warranty shall have become untrue, provided, that if such inaccuracy in EXDG’s
representations and warranties or breach by EXDG is curable by EXDG prior to
the
Closing Date, then Sinary may not terminate this Agreement under this Section
8.2(d) for thirty (30) days after delivery of written notice from Sinary to
EXDG
of such breach, provided EXDG continues to exercise commercially reasonable
efforts to cure such breach (it being understood that Sinary may not terminate
this Agreement pursuant to this Section 8.2(d) if it shall have materially
breached this Agreement or if such breach by EXDG is cured during such thirty
(30)-day period); or
(e) by
EXDG,
upon a material breach of any representation, warranty, covenant or agreement
on
the part of Sinary or Sinary Stockholder set forth in this Agreement, or if
any
representation or warranty of Sinary or Sinary Stockholder shall have become
materially untrue, in either case such that the conditions set forth in Section
7.2 would not be satisfied as of the time of such breach or as of the time
such
representation or warranty shall have become untrue, provided, that if such
inaccuracy in Sinary’s or Sinary Stockholder’s representations and warranties or
breach by Sinary or Sinary Stockholder is curable by Sinary or Sinary
Stockholder prior to the Closing Date, then EXDG may not terminate this
Agreement under this Section 8.2(e) for thirty (30) days after delivery of
written notice from EXDG to Sinary and Sinary Stockholder of such breach,
provided Sinary and Sinary Stockholder continue to exercise commercially
reasonable efforts to cure such breach (it being understood that EXDG may not
terminate this Agreement pursuant to this Section 8.2(e) if it shall have
materially breached this Agreement or if such breach by Sinary or Sinary
Stockholder is cured during such thirty (30)-day period).
8.3 Notice
of Termination; Effect of Termination.
Any
termination of this Agreement under Section 8.2 above will be effective
immediately upon (or, if the termination is pursuant to Section 8.2(d) or
Section 8.2(e) and the proviso therein is applicable, thirty (30) days after)
the delivery of written notice of the terminating party to the other parties
hereto. In the event of the termination of this Agreement as provided in Section
8.2, this Agreement shall be of no further force or effect and the Transaction
shall be abandoned, except as set forth in this Section 8.2, Section 8.3 and
Article 9 (General Provisions), each of which shall survive the termination
of
this Agreement.
ARTICLE
9
GENERAL
PROVISIONS
9.1
Notices.
All
notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if delivered personally, sent by overnight
courier or mailed by registered or certified mail (postage prepaid and return
receipt requested) to the party to whom the same is so delivered, sent or mailed
at addresses set forth on the signature page hereof (or at such other address
for a party as shall be specified by like notice).
9.2
Interpretation.
The
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.
References to Sections and Articles refer to sections and articles of this
Agreement unless otherwise stated.
18
9.3
Severability.
If any
term, provision, covenant or restriction of this Agreement is held by a court
of
competent jurisdiction to be invalid, void or unenforceable, the remainder
of
the terms, provisions, covenants and restrictions of this Agreement shall remain
in full force and effect and shall in no way be affected, impaired or
invalidated and the parties shall negotiate in good faith to modify this
Agreement to preserve each party’s anticipated benefits under this
Agreement.
9.4
Miscellaneous.
This
Agreement (together with all other documents and instruments referred to
herein): (a) constitutes the entire agreement and supersedes all other prior
agreements and undertakings, both written and oral, among the parties with
respect to the subject matter hereof; (b) except as expressly set forth herein,
is not intended to confer upon any other person any rights or remedies hereunder
and (c) shall not be assigned by operation of law or otherwise, except as may
be
mutually agreed upon by the parties hereto.
9.5 Separate
Counsel.
Each
party hereby expressly acknowledges that it has been advised to seek its own
separate legal counsel for advice with respect to this Agreement, and that
no
counsel to any party hereto has acted or is acting as counsel to any other
party
hereto in connection with this Agreement.
9.6
Governing
Law.
This
Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of Florida.
9.7
Counterparts
and Facsimile Signatures.
This
Agreement may be executed in two or more counterparts, which together shall
constitute a single agreement. This Agreement and any documents relating to
it
may be executed and transmitted to any other party by facsimile, which facsimile
shall be deemed to be, and utilized in all respects as, an original, wet-inked
manually executed document.
9.8 Amendment.
This
Agreement may be amended, modified or supplemented only by an instrument in
writing executed by Sinary, EXDG, and holders of a majority of outstanding
voting stock of Sinary and the holders of a majority of outstanding voting
stock
of EXDG; provided that, the consent of any Sinary or EXDG Stockholder that
is a
party to this Agreement shall be required if the amendment or modification
would
disproportionately affect such stockholder (other than by virtue of their
ownership of Sinary or EXDG shares, as applicable).
9.9 Parties
In Interest.
Except
as otherwise provided herein, the terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective heirs, legal
representatives, successors and assigns of the parties hereto.
9.10 Waiver.
No
waiver by any party of any default or breach by another party of any
representation, warranty, covenant or condition contained in this Agreement
shall be deemed to be a waiver of any subsequent default or breach by such
party
of the same or any other representation, warranty, covenant or condition. No
act, delay, omission or course of dealing on the part of any party in exercising
any right, power or remedy under this Agreement or at law or in equity shall
operate as a waiver thereof or otherwise prejudice any of such party’s rights,
powers and remedies. All remedies, whether at law or in equity, shall be
cumulative and the election of any one or more shall not constitute a waiver
of
the right to pursue other available remedies.
9.11 Expenses.
At or
prior to the Closing, the parties hereto shall pay all of their own expenses
relating to the transactions contemplated by this Agreement, including, without
limitation, the fees and expenses of their respective counsel and financial
advisers.
[Signature
Pages Follow]
19
IN
WITNESS WHEREOF, the parties have executed this Share Exchange Agreement as
of
the date first written above.
SINARY BIO-TECHNOLOGY HOLDINGS GROUP, INC. | ||
|
|
|
By: | ||
Xxxxx
Xxxx,
President
|
||
Address: 0000
Xxxx Xxxxxx Xxx Xxxx
Xxx
Xxxxx, XX 00000
Tel:
x(00)
000-00000000
Fax:x(00)
000-00000000
|
20
SIGNATURE
PAGE OF SINARY STOCKHOLDER
SINARY’S
SOLE STOCKHOLDER:
Xxxxx Xxxx |
|||
Stockholder
Address:
0000
Xxxx Xxxxxx Xxx Xxxx
Xxx
Xxxxx, XX 00000
Tel:
x(00) 000-00000000
Fax:
x(00) 000-00000000
|
21
SIGNATURE
PAGE OF EXPEDITION LEASING, INC.
EXPEDITION:
EXPEDITION LEASING, INC. | ||
|
|
|
By: | ||
Name:
Xxxxx Xxxxxx
Title:
President, Treasurer and Secretary
|
||
Address:
0000
Xxxx Xxxxxxxxx Xxxxxx
Xxxxx,
XX 00000
Tel:
(000) 000-0000
Fax:
(000) 000-0000
|
22
SIGNATURE
PAGE FOR EXDG STOCKHOLDERS:
EXDG
Stockholders:
Name
|
EXDG
Shares
|
Address
|
Signature
|
|||
Xxx
Xxxxxx
|
800,000
|
|||||
Xxxxx
Xxxxxx
|
675,200
|
|||||
Xxxxx
Xxxxxxx
|
1,000,000
|
|||||
Xxxxx
Xxxxxx
|
650,000
|
|||||
Xxxx
X. Xxxxxx
|
750,000
|
|||||
Xxxxxxx
Xxxxxxx
|
850,000
|
|||||
Xxxxx
XxXxxxx
|
20,000,000
|
|||||
TOTAL:
|
24,725,200
|
23
SCHEDULE
1.1(a):
Sinary
Shareholder
Xxxxx
Xxxx
|
24,725,200 shares |
24
SCHEDULE
4.6:
SEC
Documents
None.
25
SCHEDULE
4.8:
Events
Subsequent to Financial Statements
None.
26
SCHEDULE
4.9:
Liabilities
to Be Paid Out of Closing Proceeds
Apogee
Consultants, Inc. $20,000-Consultant
Xxxxxx,
Xxxxxxx & Co. $30,800- Auditors
27
SCHEDULE
4.10:
Tax
Matters
None.
28
SCHEDULE
4.16:
Contracts
None.
29
SCHEDULE
4.18:
Employees
None.
30
SCHEDULE
4.27:
Restrictions
on Business Activities
None.
31
SCHEDULE
4.28:
Interested
Party Transactions
None.
32