SHARE EXCHANGE AGREEMENT By and Among DEXTERITY SURGICAL, INC. and RISE AND GROW LIMITED and NEWISE CENTURY INC. Dated as of December 18, 2007
EXECUTION
VERSION
By
and
Among
DEXTERITY
SURGICAL, INC.
and
RISE
AND GROW LIMITED
and
NEWISE
CENTURY INC.
Dated
as
of December 18, 2007
TABLE
OF CONTENTS
PAGE
|
||
ARTICLE
I REPRESENTATIONS, COVENANTS, AND WARRANTIES OF RISE &
GROW
|
2
|
|
Section
1.01
|
Organization
|
2
|
Section
1.02
|
Capitalization
|
2
|
Section
1.03
|
Subsidiaries
and Predecessor Corporations
|
2
|
Section
1.04
|
Financial
Statements
|
2
|
Section
1.05
|
Information
|
3
|
Section
1.06
|
Options
or Warrants
|
3
|
Section
1.07
|
Absence
of Certain Changes or Events
|
3
|
Section
1.08
|
Contracts
|
4
|
Section
1.09
|
No
Conflict With Other Instruments
|
5
|
Section
1.10
|
Compliance
With Laws and Regulations
|
5
|
Section
1.11
|
Approval
of Agreement
|
5
|
Section
1.12
|
Valid
Obligation
|
5
|
ARTICLE
II REPRESENTATIONS, COVENANTS, AND WARRANTIES OF DEXT
|
5
|
|
Section
2.01
|
Organization
|
5
|
Section
2.02
|
Capitalization
|
6
|
Section
2.03
|
Subsidiaries
and Predecessor Corporations
|
6
|
Section
2.04
|
Financial
Statements
|
6
|
Section
2.05
|
Information
|
7
|
Section
2.06
|
Options
or Warrants
|
7
|
Section
2.07
|
Absence
of Certain Changes or Events
|
7
|
Section
2.08
|
Litigation
and Proceedings
|
8
|
Section
2.09
|
Contracts
|
8
|
Section
2.10
|
No
Conflict With Other Instruments
|
8
|
Section
2.11
|
Compliance
With Laws and Regulations
|
8
|
Section
2.12
|
Approval
of Agreement
|
8
|
Section
2.13
|
Material
Transactions or Affiliations
|
8
|
Section
2.14
|
Bank
Accounts; Power of Attorney
|
9
|
Section
2.15
|
Valid
Obligation
|
9
|
Section
2.16
|
Filings
|
9
|
ARTICLE
III PLAN OF EXCHANGE
|
9
|
|
Section
3.01
|
The
Exchange
|
9
|
Section
3.02
|
Anti-Dilution
|
10
|
Section
3.03
|
Closing
Events
|
10
|
Section
3.04
|
Termination
|
10
|
Section
3.05
|
Reimbursement
of Transfer Agent Costs
|
10
|
ARTICLE
IV SPECIAL COVENANTS
|
10
|
|
Section
4.01
|
Access
to Properties and Records
|
10
|
Section
4.02
|
Delivery
of Books and Records
|
10
|
Section
4.03
|
Third
Party Consents and Certificates
|
11
|
Section
4.04
|
DEXT
Stockholder Meeting
|
11
|
Section
4.05
|
Cancellation
of Shares Held By Principal Stockholder
|
11
|
Section
4.06
|
Designation
of Directors and Officers
|
11
|
Section
4.07
|
Indemnification.
|
11
|
Section
4.08
|
The
Acquisition of DEXT Common Stock
|
12
|
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i -
ARTICLE
V CONDITIONS PRECEDENT TO OBLIGATIONS OF DEXT
|
12
|
|
Section
5.01
|
Accuracy
of Representations and Performance of Covenants
|
12
|
Section
5.02
|
Officer’s
Certificate
|
13
|
Section
5.03
|
Good
Standing
|
13
|
Section
5.04
|
Approval
by Stockholder
|
13
|
Section
5.05
|
No
Governmental Prohibition
|
13
|
Section
5.06
|
Consents
|
13
|
Section
5.07
|
Other
Items
|
13
|
ARTICLE
VI CONDITIONS PRECEDENT TO OBLIGATIONS OF RISE & GROW AND THE
STOCKHOLDER
|
14
|
|
Section
6.01
|
Accuracy
of Representations and Performance of Covenants
|
14
|
Section
6.02
|
Officer’s
Certificate
|
14
|
Section
6.03
|
Good
Standing
|
14
|
Section
6.04
|
No
Governmental Prohibition
|
14
|
Section
6.05
|
Consents
|
14
|
Section
6.06
|
Legal
Opinion.
|
14
|
Section
6.07
|
Other
Items
|
14
|
ARTICLE
VII MISCELLANEOUS
|
15
|
|
Section
7.01
|
Brokers
|
15
|
Section
7.02
|
Governing
Law
|
15
|
Section
7.03
|
Notices
|
15
|
Section
7.04
|
Attorney’s
Fees
|
16
|
Section
7.05
|
Confidentiality
|
16
|
Section
7.06
|
Public
Announcements and Filings
|
16
|
Section
7.07
|
Entire
Agreement
|
17
|
Section
7.08
|
Recitals
|
17
|
Section
7.09
|
Third
Party Beneficiaries
|
17
|
Section
7.10
|
Expenses
|
17
|
Section
7.11
|
Survival;
Termination
|
17
|
Section
7.12
|
Counterparts
|
17
|
Section
7.13
|
Amendment
or Waiver
|
17
|
Section
7.14
|
Best
Efforts
|
17
|
Section
7.15
|
Entire
Agreement
|
18
|
RISE
AND GROW SCHEDULES
|
19
|
|
DEXT
SCHEDULES
|
20
|
|
EXHIBIT
A
|
A-1
|
|
EXHIBIT
B
|
B-1
|
|
EXHIBIT
C
|
C-1
|
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ii
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EXECUTION
VERSION
THIS
SHARE EXCHANGE AGREEMENT
(this
“Agreement”)
is
entered into as of this 18th
day of
December 2007, by and among DEXTERITY
SURGICAL, INC., a
Delaware corporation (“DEXT”),
RISE
AND GROW LIMITED,
a
limited company organized under the laws of Hong Kong (“Rise
& Grow”)
and
NEWISE
CENTURY INC.,
a
corporation organized under the laws of the British Virgin Islands (the
“Stockholder”),
upon
the following premises:
RECITALS:
WHEREAS,
DEXT is
a U.S. publicly held corporation organized under the laws of the State of
Delaware with no significant operations; and
WHEREAS,
on
April 19, 2004, DEXT filed a voluntary petition for relief for reorganization
under Chapter 11 of the United States Bankruptcy Court for the Southern District
of Texas, Houston Division; and
WHEREAS,
on
December 7, 2004, the Bankruptcy Court approved a Plan of Reorganization which
was later modified by an Order Approving Modification of the First Amended
Plan)
dated March 2, 2006 (the “Reorganization”);
and
WHEREAS,
this
Reorganization provided and authorized that the Board of Directors of DEXT
are
authorized to issue common shares pursuant to an exchange agreement in which
control or majority ownership is given to an acquiring business entity without
the need for shareholder approval and provided that DEXT is no longer subject
to
the jurisdiction of the Bankruptcy Court; and
WHEREAS,
Rise
& Grow is a privately held corporation organized under the laws of Hong Kong
and a wholly-owned subsidiary of the Stockholder; and
WHEREAS,
the
Stockholder is a British Virgin Islands corporation that owns one hundred
percent (100%) of the total issued and outstanding shares of capital stock
of
Rise & Grow (the “Rise
& Grow Shares”);
and
WHEREAS,
DEXT
desires to acquire the Rise & Grow Shares in exchange for the issuance by
DEXT to the Stockholder of Twenty-Six Million Four Hundred Thousand (26,400,000)
shares of DEXT’s common stock on the terms and subject to the conditions set
forth herein (the “Exchange”).
AGREEMENT:
NOW
THEREFORE,
on the
stated premises and for and in consideration of the mutual covenants and
agreements hereinafter set forth and the mutual benefits to the parties to
be
derived herefrom, and intending to be legally bound hereby, it is hereby agreed
as follows:
ARTICLE
I
REPRESENTATIONS,
COVENANTS, AND WARRANTIES OF RISE & GROW
As
an
inducement to, and to obtain the reliance of DEXT, except as set forth in those
schedules prepared by Rise & Grow which are attached and made a part hereto
(the “Rise
& Grow Schedules”),
Rise
& Grow hereby represents and warrants as of the date hereof (the
“Closing
Date”)
as
follows:
Section
1.01 Organization.
Rise
& Grow is a corporation duly organized, validly existing, and in good
standing under the laws of Hong Kong and has the corporate power and is duly
authorized under all applicable laws, regulations, ordinances and orders of
public authorities to carry on its business in all material respects as it
is
now being conducted. Included in Item 1.01 of the Rise & Grow Schedules are
complete and correct copies of the Certificate of Incorporation of Rise &
Grow (or their equivalent) as in effect on the date hereof. The execution and
delivery of this Agreement does not, and the consummation of the transactions
contemplated hereby will not, violate any provision of Rise & Grow’s
Certificate of Incorporation. Rise & Grow has taken all actions required by
law, from its Certificate of Incorporation, or otherwise to authorize the
execution and delivery of this Agreement. Rise & Grow has full power,
authority, and legal right and has taken all action required by law, its
Certificate of Incorporation, and otherwise to consummate the transactions
herein contemplated.
Section
1.02 Capitalization.
The
authorized capitalization of Rise & Grow consists of one (1) ordinary share
of capital stock, par value $1.00 per share (“Rise
& Grow Common Stock”).
There
is one (1) share of Rise & Grow Common Stock currently issued and
outstanding. The issued and outstanding share is legally issued, fully paid,
and
non-assessable and not issued in violation of the preemptive or other rights
of
any person.
Section
1.03 Subsidiaries
and Predecessor Corporations.
Except
for Zhi Xxx Xx Xxxx (Beijing) Technology Co., Ltd., the wholly-owned and chief
operating entity of Rise & Grow organized under the laws of The People’s
Republic of China (“ZBDT”),
Rise
& Grow does not have any subsidiaries or predecessor corporations, and does
not own, beneficially or of record, any shares of any other corporation. ZBDT
controls, through those certain contractual instruments set forth in Item 1.08
of the Rise & Grow Schedules, and is the primary beneficiary of Beijing Zhi
Xxxx Xxxx Xia Technology Co., Ltd., a Variable Interest Entity and limited
liability company duly established and validly existing under The People’s
Republic of China (“Zhiyuan”).
For
purposes hereinafter, the term “Rise
& Grow”
also
includes ZBDT and Zhiyuan.
Section
1.04 Financial
Statements
(a) Included
in Item 1.04 of the Rise & Grow Schedules are (i) the audited balance sheet
of Beijing ZYTX Technology Co., Ltd as of June 30, 2007 and the
related audited statements of operations, stockholders’ equity and cash flows
for the period from October 8 (inception) through June 30, 2007
together with the notes to such statements and the opinion of X.X. Xxxxx &
Co., independent certified public accountants.
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2 -
(b) Included
in Item 1.04 of the Rise & Grow Schedules are: (i) an unaudited condensed
consolidated balance sheet of Rise & Grow at September 30, 2007 and the
related unaudited condensed consolidated statements of operations, stockholders’
equity and cash flows for the three (3) months ended September 30, 2007 and
all
such financial statements have been reviewed by X.X. Xxxxx & Co.,
independent certified public accountants.
(c) All
such
financial statements have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods involved.
The
Rise & Grow balance sheets are true and accurate and present fairly as of
their respective dates the financial condition of Rise & Grow. As of the
date of such balance sheets, except as and to the extent reflected or reserved
against therein, Rise & Grow had no liabilities or obligations (absolute or
contingent) which should be reflected in the balance sheets or the notes thereto
prepared in accordance with generally accepted accounting principles, and all
assets reflected therein are properly reported and present fairly the value
of
the assets of Rise & Grow, in accordance with generally accepted accounting
principles. The statements of operations, stockholders’ equity and cash flows
reflect fairly the information required to be set forth therein by generally
accepted accounting principles.
(d) Rise
& Grow has no liabilities with respect to the payment of any federal, state,
county, local or other taxes (including any deficiencies, interest or
penalties), except for taxes accrued but not yet due and payable (if
any).
(e) Rise
& Grow has timely filed all state, federal or local income and/or franchise
tax returns required to be filed by it from inception to the date hereof. Each
of such income tax returns reflects the taxes due for the period covered
thereby, except for amounts which, in the aggregate, are
immaterial.
(f) All
of
Rise & Grow’s assets are reflected on its financial statements, and, except
as set forth in the Rise & Grow Schedules or the financial statements of
Rise & Grow or the notes thereto, Rise & Grow has no material
liabilities, direct or indirect, matured or unmatured, contingent or
otherwise.
Section
1.05 Information.
The
information concerning Rise & Grow set forth in this Agreement and in the
Rise & Grow Schedules is complete and accurate in all material respects and
does not contain any untrue statement of a material fact or omit to state a
material fact required to make the statements made, in light of the
circumstances under which they were made, not misleading.
Section
1.06 Options
or Warrants.
There
are no existing options, warrants, calls, or commitments of any character
relating to the authorized and unissued shares of capital stock of Rise &
Grow.
Section
1.07 Absence
of Certain Changes or Events.
Since
September 30, 2007:
(a) there
has
not been any material adverse change in the business, operations, properties,
assets, or condition (financial or otherwise) of Rise & Grow;
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3 -
(b) Rise
& Grow has not (i) amended its Certificate of Incorporation (or their
equivalent); (ii) declared or made, or agreed to declare or make, any payment
of
dividends or distributions of any assets of any kind whatsoever to stockholders
or purchased or redeemed, or agreed to purchase or redeem, any of its capital
stock; (iii) made any material change in its method of management, operation
or
accounting, (iv) entered into any other material transaction other than sales
in
the ordinary course of its business; or (v) made any increase in or adoption
of
any profit sharing, bonus, deferred compensation, insurance, pension,
retirement, or other employee benefit plan, payment, or arrangement made to,
for, or with its officers, directors, or employees; and
(c) Rise
& Grow has not (i) granted or agreed to grant any options, warrants or other
rights for its stocks, bonds or other corporate securities calling for the
issuance thereof, (ii) borrowed or agreed to borrow any funds or incurred,
or
become subject to, any material obligation or liability (absolute or contingent)
except as disclosed herein and except liabilities incurred in the ordinary
course of business; (iii) sold or transferred, or agreed to sell or transfer,
any of its assets, properties, or rights or canceled, or agreed to cancel,
any
debts or claims; or (iv) issued, delivered, or agreed to issue or deliver any
stock, bonds or other corporate securities including debentures (whether
authorized and unissued or held as treasury stock) except in connection with
this Agreement.
(d) Litigation
and Proceedings.
There
are no actions, suits, proceedings, or investigations pending or, to the
knowledge of Rise & Grow after reasonable investigation, threatened by or
against Rise & Grow or affecting Rise & Grow or its properties, at law
or in equity, before any court or other governmental agency or instrumentality,
domestic or foreign, or before any arbitrator of any kind. Rise & Grow does
not have any knowledge of any material default on its part with respect to
any
judgment, order, injunction, decree, award, rule, or regulation of any court,
arbitrator, or governmental agency or instrumentality or of any circumstances
which, after reasonable investigation, would result in the discovery of such
a
default.
Section
1.08 Contracts
(a) All
“material” contracts, agreements, franchises, license agreements, debt
instruments or other commitments to which Rise & Grow is a party or by which
it or any of its assets, products, technology, or properties are bound other
than those incurred in the ordinary course of business are set forth on Item
1.08 of the Rise & Grow Schedules. A “material” contract, agreement,
franchise, license agreement, debt instrument or commitment is one which (i)
will remain in effect for more than six (6) months after the date of this
Agreement or (ii) involves aggregate obligations of at least Fifty Thousand
Dollars ($50,000);
(b) All
contracts, agreements, franchises, license agreements, and other commitments
to
which Rise & Grow is a party or by which its properties are bound and which
are material to the operations of Rise & Grow taken as a whole are valid and
enforceable by Rise & Grow in all respects, except as limited by bankruptcy
and insolvency laws and by other laws affecting the rights of creditors
generally; and
-
4 -
(c) Except
as
included or described in the Rise & Grow Schedules or reflected in the most
recent Rise & Grow balance sheet, Rise & Grow is not a party to any 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, (iii) agreement, contract, or indenture
relating to the borrowing of money, (iv) guaranty of any obligation; (vi)
collective bargaining agreement; or (vii) agreement with any present or former
officer or director of Rise & Grow.
Section
1.09 No
Conflict With Other Instruments.
The
execution of this Agreement and the consummation of the transactions
contemplated by this Agreement will not result in the breach of any term or
provision of, constitute a default under, or terminate, accelerate or modify
the
terms of any indenture, mortgage, deed of trust, or other material agreement,
or
instrument to which Rise & Grow is a party or to which any of its assets,
properties or operations are subject.
Section
1.10 Compliance
With Laws and Regulations.
To the
best of its knowledge, Rise & Grow has complied with all applicable statutes
and regulations of any federal, state, or other governmental entity or agency
thereof, except to the extent that noncompliance would not materially and
adversely affect the business, operations, properties, assets, or condition
of
Rise & Grow or except to the extent that noncompliance would not result in
the occurrence of any material liability for Rise & Grow.
Section
1.11 Approval
of Agreement.
The
Sole Director of Rise & Grow has authorized the execution and delivery of
this Agreement by Rise & Grow and has approved this Agreement and the
transactions contemplated hereby, and will recommend to the Stockholder that
the
Exchange be accepted by the Stockholder.
Section
1.12 Valid
Obligation.
This
Agreement and all agreements and other documents executed by Rise & Grow in
connection herewith constitute the valid and binding obligation of Rise &
Grow, enforceable in accordance with its terms, except as may be limited by
bankruptcy, insolvency, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and subject to the qualification that
the availability of equitable remedies is subject to the discretion of the
court
before which any proceeding therefore may be brought.
ARTICLE
II
REPRESENTATIONS,
COVENANTS, AND WARRANTIES OF DEXT
As
an
inducement to, and to obtain the reliance of Rise & Grow and the
Stockholder, except as set forth in those schedules prepared by DEXT which
are
attached and made a part hereto (the “DEXT
Schedules”),
DEXT
represents and warrants, as of the date hereof and as of the Closing Date,
as
follows:
Section
2.01 Organization.
DEXT is
a corporation duly organized, validly existing, and in good standing under
the
laws of the State of Delaware and has the corporate power and is duly authorized
under all applicable laws, regulations, ordinances, and orders of public
authorities to carry on its business in all material respects as it is now
being
conducted. Included in Item 2.01 of the DEXT Schedules are complete and correct
copies of the Certificate of Incorporation and Bylaws of DEXT as in effect
on
the Closing Date. The execution and delivery of this Agreement does not, and
the
consummation of the transactions contemplated hereby will not, violate any
provision of DEXT’s Certificate of Incorporation or Bylaws. DEXT has taken all
action required by law, its Certificate of Incorporation, its Bylaws, or
otherwise to authorize the execution and delivery of this Agreement, and DEXT
has full power, authority, and legal right and has taken all action required
by
law, its certificate of incorporation, bylaws, or otherwise to consummate the
transactions herein contemplated.
-
5 -
Section
2.02 Capitalization.
DEXT’s
authorized capitalization as of the Closing Date consists of (a) One Hundred
Million (100,000,000) shares of common stock, par value $0.001 per share
(“DEXT
Common Stock”),
of
which 26,760,377 shares are issued and outstanding on the Closing Date and
4,293,750 shares are reserved representing the balance of those certain
Bankruptcy Court Order “Section 1145” shares issuable pursuant to the
Reorganization. DEXT does not have shares of preferred stock authorized, issued
or outstanding. All issued and outstanding shares are legally issued, fully
paid, and non-assessable and not issued in violation of the preemptive or other
rights of any person.
Section
2.03 Subsidiaries
and Predecessor Corporations.
DEXT
does not have any predecessor corporation(s) or subsidiaries, and does not
own,
beneficially or of record, any shares of any other corporation.
Section
2.04 Financial
Statements
(a) Included
in Item 2.04 of the DEXT Schedules are (i) the audited balance sheets of DEXT
as
of December 31, 2006 and the related audited statements of operations,
stockholders’ equity and cash flows for the year ended December 31, 2006
together with the notes to such statements and the opinion of Akin,
Doherty, Xxxxx & Xxxxx, P.C.,
independent certified public accountants with respect thereto.
(b) Included
in Item 2.04 of DEXT Schedules are: (i) an unaudited balance sheet of DEXT
at
September 30, 2007 and the related unaudited statements of operations,
stockholders’ equity and cash flows for the three (3) and six (6) months ended
September 30, 2007 and all such financial statements have been reviewed by
Akin,
Doherty, Xxxxx & Xxxxx, P.C.,
independent certified public accountants with respect thereto.
(c) All
such
financial statements have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods involved.
The
DEXT balance sheets are true and accurate and present fairly as of their
respective dates the financial condition of DEXT. As of the date of such balance
sheets, except as and to the extent reflected or reserved against therein,
DEXT
had no liabilities or obligations (absolute or contingent) which should be
reflected in the balance sheets or the notes thereto prepared in accordance
with
generally accepted accounting principles, and all assets reflected therein
are
properly reported and present fairly the value of the assets of DEXT, in
accordance with generally accepted accounting principles. The statements of
operations, stockholders’ equity and cash flows reflect fairly the information
required to be set forth therein by generally accepted accounting
principles.
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6 -
(d) DEXT
has
no liabilities with respect to the payment of any federal, state, county, local
or other taxes (including any deficiencies, interest or penalties), except
for
taxes accrued but not yet due and payable.
(e) DEXT
has
timely filed all state, federal or local income and/or franchise tax returns
required to be filed by it from its inception to the date hereof. Each of such
income tax returns reflects the taxes due for the period covered thereby, except
for amounts which, in the aggregate, are immaterial.
(f) All
of
DEXT’s assets are reflected on its financial statements, and, except as set
forth in the DEXT Schedules or the financial statements of DEXT or the notes
thereto, DEXT has no material liabilities, direct or indirect, matured or
unmatured, contingent or otherwise.
Section
2.05 Information.
The
information concerning DEXT set forth in this Agreement and the DEXT Schedules
is complete and accurate in all material respects and does not contain any
untrue statements of a material fact or omit to state a material fact required
to make the statements made, in light of the circumstances under which they
were
made, not misleading.
Section
2.06 Options
or Warrants.
There
are no existing options, warrants, calls, or commitments of any character
relating to the authorized and unissued stock of DEXT.
Section
2.07 Absence
of Certain Changes or Events.
Since
September 30, 2007:
(a) There
has
not been any material adverse change in the business, operations, properties,
assets or condition (financial or otherwise) of DEXT;
(b) DEXT
has
not (i) amended its Certificate of Incorporation or Bylaws; (ii) declared or
made, or agreed to declare or make any payment of dividends or distributions
of
any assets of any kind whatsoever to stockholders or purchased or redeemed,
or
agreed to purchase or redeem, any of its capital stock; (iii) made any material
change in its method of management, operation or accounting; (iv) entered into
any transactions or agreements other than in connection with this Agreement
and
the transactions contemplated herein; or (v) made any increase in or adoption
of
any profit sharing, bonus, deferred compensation, insurance, pension,
retirement, or other employee benefit plan, payment, or arrangement, made to,
for or with its officers, directors, or employees; and
(c) DEXT
has
not (i) granted or agreed to grant any options, warrants, or other rights for
its stock, bonds, or other corporate securities calling for the issuance
thereof; (ii) borrowed or agreed to borrow any funds or incurred, or become
subject to, any material obligation or liability (absolute or contingent) except
liabilities incurred in the ordinary course of business; (iii) sold or
transferred, or agreed to sell or transfer, any of its assets, properties,
or
rights, or canceled, or agreed to cancel, any debts or claims; or (iv) issued,
delivered or agreed to issue or deliver, any stock, bonds or other corporate
securities including debentures (whether authorized and unissued or held as
treasury stock), except in connection with this Agreement.
-
7 -
Section
2.08 Litigation
and Proceedings.
Except
for the Reorganization as set forth in Item 2.08 of the DEXT Schedules, there
are no actions, suits, proceedings or investigations pending or, to the
knowledge of DEXT after reasonable investigation, threatened by or against
DEXT
or affecting DEXT or its properties, at law or in equity, before any court
or
other governmental agency or instrumentality, domestic or foreign, or before
any
arbitrator of any kind. Except for the Reorganization as set forth in Item
2.08
of the DEXT Schedules, DEXT has no knowledge of any default on its part with
respect to any judgment, order, writ, injunction, decree, award, rule or
regulation of any court, arbitrator, or governmental agency or instrumentality
or any circumstance which after reasonable investigation would result in the
discovery of such default.
Section
2.09 Contracts.
Except
as set forth in Item 2.09 of the DEXT Schedules:
(a) DEXT
is
not a party to, and its assets, products, technology and properties are not
bound by, any contract, franchise, license agreement, agreement, debt instrument
or other commitments whether such agreement is in writing or oral.
(b) DEXT
is
not a party to or bound by, and the properties of DEXT are not subject to any
contract, agreement, other commitment or instrument; any charter or other
corporate restriction; or any judgment, order, writ, injunction, decree, or
award; and
(c) DEXT
is
not a party to any 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, (iii) agreement,
contract, or indenture relating to the borrowing of money, (iv) guaranty of
any
obligation, (vi) collective bargaining agreement; or (vii) agreement with any
present or former officer or director of DEXT.
Section
2.10 No
Conflict With Other Instruments.
The
execution of this Agreement and the consummation of the transactions
contemplated by this Agreement will not result in the breach of any term or
provision of, constitute a default under, or terminate, accelerate or modify
the
terms of, any indenture, mortgage, deed of trust, or other material agreement
or
instrument to which DEXT is a party or to which any of its assets, properties
or
operations are subject.
Section
2.11 Compliance
With Laws and Regulations.
To the
best of its knowledge, DEXT has complied with all applicable statutes and
regulations of any federal, state, or other applicable governmental entity
or
agency thereof. This compliance includes, but is not limited to, the filing
of
all reports to date with federal and state securities authorities.
Section
2.12 Approval
of Agreement.
The
Board of Directors of DEXT has authorized the execution and delivery of this
Agreement by DEXT and has approved this Agreement and the transactions
contemplated hereby and will recommend to the principal stockholder (the
“Principal
Stockholder”)
of
DEXT that the Exchange be accepted by the Principal Stockholder.
Section
2.13 Material
Transactions or Affiliations.
There
exists no contract, agreement or arrangement between DEXT and any predecessor
and any person who was at the time of such contract, agreement or arrangement
an
officer, director, or person owning of record or known by DEXT to own
beneficially, five percent (5%) or more of the issued and outstanding common
stock of DEXT and which is to be performed in whole or in part after the date
hereof or was entered into not more than three (3) years prior to the Closing
Date. Neither any officer, director, nor five percent (5%) stockholder of DEXT
has, or has had since inception of DEXT, any known interest, direct or indirect,
in any such transaction with DEXT which was material to the business of DEXT.
DEXT has no commitment, whether written or oral, to lend any funds to, borrow
any money from, or enter into any other transaction with, any such affiliated
person.
-
8 -
Section
2.14 Bank
Accounts; Power of Attorney.
Set
forth in Item 2.14 of the DEXT Schedules is a true and complete list of (a)
all
accounts with banks, money market mutual funds or securities or other financial
institutions maintained by DEXT within the past twelve (12) months, the account
numbers thereof, and all persons authorized to sign or act on behalf of DEXT,
(b) all safe deposit boxes and other similar custodial arrangements maintained
by DEXT within the past twelve (12) months, (c) the check ledger for the last
twelve (12) months and (d) the names of all persons holding powers of attorney
from DEXT or who are otherwise authorized to act on behalf of DEXT with respect
to any matter, other than its officers and directors, and a summary of the
terms
of such powers or authorizations.
Section
2.15 Valid
Obligation.
This
Agreement and all agreements and other documents executed by DEXT in connection
herewith constitute the valid and binding obligation of DEXT, enforceable in
accordance with its terms, except as may be limited by bankruptcy, insolvency,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally and subject to the qualification that the availability of equitable
remedies is subject to the discretion of the court before which any proceeding
therefore may be brought.
Section
2.16 Filings.
DEXT
has timely filed all reports required to be filed by it under the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”).
Section
2.17 OTCBB.
DEXT
trades its common stock on the Over-The-Counter Bulletin Board (“OTCBB”)
and
meets all requirements to be listed on the OTCBB.
ARTICLE
III
PLAN
OF EXCHANGE
Section
3.01 The
Exchange.
On the
terms and subject to the conditions set forth in this Agreement, on the Closing
Date, the Stockholder, by executing this Agreement, shall assign, transfer
and
deliver, free and clear of all liens, pledges, encumbrances, charges,
restrictions or known claims of any kind, nature, or description, the Rise
&
Grow Shares, constituting all of the shares of capital stock, including voting
power, of Rise & Grow. In exchange for the transfer of the Rise & Grow
Shares by the Stockholder, DEXT shall issue to the Stockholder Twenty-Six
Million Four Hundred Thousand (26,400,000) shares of DEXT Common Stock, which
such shares shall represent 73.94% of total number of issued and outstanding
shares of DEXT Common Stock upon issuance and shall represent 66% of the total
number of issued and outstanding shares of DEXT Common Stock after the issuance
of the remaining 4,293,750 “Section 1145” shares. On the Closing Date, the
Stockholder shall surrender its certificate or certificates representing the
Rise & Grow Shares to DEXT or its registrar or transfer agent. Upon
consummation of the transaction contemplated herein, all of the shares of
capital stock of Rise & Grow shall be held by DEXT. Upon consummation of the
transaction contemplated herein (including, but not limited to, the cancellation
of the shares set forth in Section 4.05 herein below), there shall be 35,706,250
shares of DEXT Common Stock issued and outstanding, with an additional 4,293,750
“Section 1145” shares of common stock to be issued to the holders of the DIP
Loan pursuant to the Bankruptcy Court Order.
-
9 -
Section
3.02 Anti-Dilution.
The
number of shares of DEXT Common Stock issuable upon exchange pursuant to Section
3.01 shall be appropriately adjusted to take into account any other stock split,
stock dividend, reverse stock split, recapitalization, or similar change in
the
DEXT Common Stock which may occur, other than the recapitalization described
in
Section 4.14, between the date of the execution of this Agreement and the
Closing Date.
Section
3.03 Closing
Events.
On the
Closing Date, DEXT, Rise & Grow and the Stockholder shall execute,
acknowledge, and deliver (or shall ensure to be executed, acknowledged, and
delivered), any and all certificates, opinions, financial statements, schedules,
agreements, resolutions, rulings or other instruments required by this Agreement
to be so delivered on or prior to the Closing Date, together with such other
items as may be reasonably requested by the parties hereto and their respective
legal counsel in order to effectuate or evidence the transactions contemplated
hereby.
Section
3.04 Termination.
This
Agreement may be terminated by the Board of Directors of Rise & Grow only in
the event that DEXT or Rise & Grow do not meet the conditions precedent set
forth in Articles V and VI. If this Agreement is terminated pursuant this
Section, this Agreement shall be of no further force or effect, and no
obligation, right or liability shall arise hereunder.
Section
3.05 Reimbursement
of Transfer Agent Costs.
On the
Closing Date, DEXT shall reimburse Rosetta Granite, Inc. for all costs paid
in
changing DEXT’s transfer agent from PacWest Transfer to Corporate Stock Transfer
and for other costs in the aggregate amount of Six Thousand Eight Hundred
Seventy-Five Dollars ($6,875).
ARTICLE
IV
SPECIAL
COVENANTS
Section
4.01 Access
to Properties and Records.
DEXT
and Rise & Grow will each afford to the officers and authorized
representatives of the other full access to the properties, books and records
of
DEXT or Rise & Grow, as the case may be, in order that each may have a full
opportunity to make such reasonable investigation as it shall desire to make
of
the affairs of the other, and each will furnish the other with such additional
financial and operating data and other information as to the business and
properties of DEXT or Rise & Grow, as the case may be, as the other shall
from time to time reasonably request. Without limiting the foregoing, as soon
as
practicable after the end of each fiscal quarter (and in any event through
the
last fiscal quarter prior to the Closing Date), each party shall provide the
other with quarterly internally prepared and unaudited financial
statements.
Section
4.02 Delivery
of Books and Records.
On or
prior to the Closing Date, Rise & Grow shall deliver to DEXT the originals
of the corporate minute books, books of account, contracts, records, and all
other books or documents of Rise & Grow now in the possession of Rise &
Grow or its representatives. DEXT shall deliver to Rise & Grow the originals
of the corporate minute books, books of account, contracts, records, and all
other books or documents of DEXT now in the possession of DEXT or its
representatives.
-
10 -
Section
4.03 Third
Party Consents and Certificates.
DEXT
and Rise & Grow hereby agree to cooperate with each other in order to obtain
any required third party consents to this Agreement and the transactions herein
contemplated.
Section
4.04 DEXT
Stockholder Meeting.
DEXT
shall promptly call a special stockholders meeting to be held on or prior to
the
Closing Date at which meeting the Principal Stockholder of DEXT shall be
requested to approve, and DEXT’s Board of Directors shall recommend approval of,
the terms of this Agreement and such other matters as shall require stockholder
approval hereunder. In addition, DEXT shall promptly file with the SEC all
necessary disclosure statements required by federal securities law.
Section
4.05 Cancellation
of Shares Held By Principal Stockholder.
Concurrent and simultaneous with the consummation of this Agreement on the
Closing Date, the Principal Stockholder shall cancel a total number of
17,454,127 shares
of
DEXT Common Stock.
Section
4.06 Designation
of Directors and Officers.
On the
Closing Date, Junjun Xu shall be appointed to serve as a director of DEXT.
After
compliance by DEXT with Rule 14F-1 promulgated under the Exchange Act, (a)
Xxxxxx
Xxxx, Xxxxxxx Xxxx, Xxxxx Xxxxx, Xxxxxxx Xxx, Xxxxx Xxx Xxxx Xx and Xxxxxxxxx
Xxxx shall be appointed to serve as Directors of DEXT, with Xxxxxx Xxxx serving
as Chairman of the Board, (b) Junjun Xu shall be appointed to serve as Chief
Executive Officer and Fei Xxxx Xxxx shall be appointed to serve as Chief
Financial Officer of DEXT and (c) Xxxxx Xxxxxxx shall resign as President and
Chief Executive Officer of DEXT. DEXT shall draft the necessary instruments
to
affect the appointments described in this Section 4.06.
Section
4.07 Indemnification.
(a) Rise
& Grow hereby agrees to indemnify DEXT and each of the officers, agents and
directors of DEXT as of the date of execution of this Agreement against any
loss, liability, claim, damage, or expense (including, but not limited to,
any
and all expense whatsoever reasonably incurred in investigating, preparing,
or
defending against any litigation, commenced or threatened, or any claim
whatsoever) (“Loss”),
to
which it or they may become subject arising out of or based on any inaccuracy
appearing in or misrepresentations made under Article I of this Agreement.
The
indemnification provided for in this paragraph shall survive the closing
hereunder and the consummation of the transactions contemplated hereby and
termination of this Agreement for one (1) year following the Closing
Date.
(b) DEXT
hereby agrees to indemnify Rise & Grow and each of the officers, agents, and
directors of Rise & Grow and the Stockholder as of the date of execution of
this Agreement against any Loss to which it or they may become subject arising
out of or based on any inaccuracy appearing in or misrepresentation made under
Article II of this Agreement. The indemnification provided for in this paragraph
shall survive the Closing hereunder and the consummation of the transactions
contemplated hereby and termination of this Agreement for one (1) year following
the Closing Date.
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11 -
Section
4.08 The
Acquisition of DEXT Common Stock.
DEXT
and Rise & Grow understand and agree that the consummation of this Agreement
including the issuance of the DEXT Common Stock to the Stockholder in exchange
for the Rise & Grow Common Stock as contemplated hereby constitutes the
offer and sale of securities under the Securities Act of 1933, as amended (the
“Securities
Act”)
and
applicable state statutes. DEXT and Rise & Grow agree that such transactions
shall be consummated in reliance on exemptions from the registration and
prospectus delivery requirements of such statutes, which depend, among other
items, on the circumstances under which such securities are
acquired.
(a) In
order
to provide documentation for reliance upon the exemptions from the registration
and prospectus delivery requirements for such transactions, the Stockholder
shall execute and deliver to DEXT a Suitability Letter (if applicable) and
an
Investment Representation Letter in substantially the forms of Exhibit
A
and
Exhibit
B
attached
hereto, respectively.
(b) In
connection with the transactions contemplated by this Agreement, DEXT and Rise
& Grow shall each file, with the assistance of the other and their
respective legal counsel, such notices, applications, reports, or other
instruments as may be deemed by them to be necessary or appropriate in an effort
to document reliance on such exemptions, and the appropriate regulatory
authority in the states where the stockholders of Rise & Grow reside unless
an exemption requiring no filing is available in such jurisdictions, all to
the
extent and in the manner as may be deemed by such parties to be
appropriate.
(c) In
order
to more fully document reliance on the exemptions as provided herein, Rise
&
Grow, the Stockholder, and DEXT shall execute and deliver to the other, at
or
prior to the Closing Date, such further letters of representation,
acknowledgment, suitability, or the like as Rise & Grow, the Stockholder or
DEXT and their respective counsel may reasonably request in connection with
reliance on exemptions from registration under such securities
laws.
(d) The
Stockholder acknowledges that the basis for relying on exemptions from
registration or qualifications are factual, depending on the conduct of the
various parties, and that a legal opinion will be provided to the effect that
the transactions contemplated hereby are in fact exempt from registration or
qualification.
ARTICLE
V
CONDITIONS
PRECEDENT TO OBLIGATIONS OF DEXT
The
obligations of DEXT under this Agreement are subject to the satisfaction, on
or
before the Closing Date, of the following conditions:
Section
5.01 Accuracy
of Representations and Performance of Covenants.
The
representations and warranties made by Rise & Grow and the Stockholder in
this Agreement were true when made and shall be true at the Closing Date with
the same force and effect as if such representations and warranties were made
at
and as of the Closing Date (except for changes therein permitted by this
Agreement). Rise & Grow shall have performed or complied with all covenants
and conditions required by this Agreement to be performed or complied with
by
Rise & Grow prior to or on the Closing Date. DEXT shall be furnished with a
certificate, signed by a duly authorized executive officer of Rise & Grow
and dated the Closing Date, to the foregoing effect.
-
12 -
Section
5.02 Officer’s
Certificate.
DEXT
shall have been furnished with a certificate dated the Closing Date and signed
by a duly authorized officer of Rise & Grow to the effect that no
litigation, proceeding, investigation, or inquiry is pending, or to the best
knowledge of Rise & Grow threatened, which might result in an action to
enjoin or prevent the consummation of the transactions contemplated by this
Agreement, or, to the extent not disclosed in the Rise & Grow Schedules, by
or against Rise & Grow, which might result in any material adverse change in
any of the assets, properties, business, or operations of Rise &
Grow.
Section
5.03 Good
Standing.
DEXT
shall have received a certificate of good standing from The Companies’
Registries of Hong Kong, dated as of a date within ten (10) days prior to the
Closing Date certifying that Rise & Grow is in good standing as a
corporation in Hong Kong.
Section
5.04 Approval
by Stockholder.
The
Exchange shall have been approved, and shares delivered in accordance with
Section 3.01, by the holders of not less than one hundred percent (100%) of
the
outstanding Rise & Grow Common Stock, including voting power, of Rise &
Grow, unless a lesser number is agreed to by DEXT.
Section
5.05 No
Governmental Prohibition.
No
order, statute, rule, regulation, executive order, injunction, stay, decree,
judgment or restraining order shall have been enacted, entered, promulgated
or
enforced by any court or governmental or regulatory authority or instrumentality
which prohibits the consummation of the transactions contemplated
hereby.
Section
5.06 Consents.
All
consents, approvals, waivers or amendments pursuant to all contracts, licenses,
permits, trademarks and other intangibles in connection with the transactions
contemplated herein, or for the continued operation of Rise & Grow after the
Closing Date on the basis as presently operated shall have been
obtained.
Section
5.07 Other
Items
(a) DEXT
shall have received a list containing the names, addresses, and number of shares
held by each holder of capital stock in Rise & Grow as of the Closing Date,
certified by an executive officer of Rise & Grow as being true, complete and
accurate; and
(b) DEXT
shall have received such further opinions, documents, certificates or
instruments relating to the transactions contemplated hereby as DEXT may
reasonably request.
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13 -
ARTICLE
VI
CONDITIONS
PRECEDENT TO OBLIGATIONS OF RISE & GROW
AND
THE STOCKHOLDER
The
obligations of Rise & Grow and the Stockholder under this Agreement are
subject to the satisfaction, at or before the Closing Date, of the following
conditions:
Section
6.01 Accuracy
of Representations and Performance of Covenants.
The
representations and warranties made by DEXT in this Agreement were true when
made and shall be true as of the Closing Date (except for changes therein
permitted by this Agreement) with the same force and effect as if such
representations and warranties were made at and as of the Closing Date. DEXT
shall have performed and complied with all covenants and conditions required
by
this Agreement to be performed or complied with by DEXT. Prior to or on the
Closing Date, DEXT shall furnish to Rise & Grow a certificate signed by a
duly authorized officer of DEXT and dated the Closing Date, to the foregoing
effect.
Section
6.02 Officer’s
Certificate.
Rise
& Grow shall have been furnished with certificates dated the Closing Date
and signed by duly authorized executive officers of DEXT, to the effect that
no
litigation, proceeding, investigation or inquiry is pending, or to the best
knowledge of DEXT threatened, which might result in an action to enjoin or
prevent the consummation of the transactions contemplated by this Agreement
or,
to the extent not disclosed in the DEXT Schedules, by or against DEXT, which
might result in any material adverse change in any of the assets, properties
or
operations of DEXT.
Section
6.03 Good
Standing.
Rise
& Grow shall have received a certificate of good standing from the Secretary
of State of Delaware or other appropriate office, dated as of a date within
five
(5) days prior to the Closing Date certifying that DEXT is in good standing
as a
corporation in the State of Delaware and has filed all tax returns required
to
have been filed by it to date and has paid all taxes reported as due
thereon.
Section
6.04 No
Governmental Prohibition.
No
order, statute, rule, regulation, executive order, injunction, stay, decree,
judgment or restraining order shall have been enacted, entered, promulgated
or
enforced by any court or governmental or regulatory authority or instrumentality
which prohibits the consummation of the transactions contemplated
hereby.
Section
6.05 Consents.
All
consents, approvals, waivers or amendments pursuant to all contracts, licenses,
permits, trademarks and other intangibles in connection with the transactions
contemplated herein, or for the continued operation of DEXT after the Closing
Date on the basis as presently operated shall have been obtained.
Section
6.06 Legal
Opinion. Rise
& Grow shall have been furnished with a legal opinion from DEXT’s counsel in
the form of Exhibit
C
hereto
stating, among other things, that the transactions contemplated hereby are
exempt from registration or qualification.
Section
6.07 Other
Items.
Rise
& Grow shall have received further opinions, documents, certificates, or
instruments relating to the transactions contemplated hereby as Rise & Grow
may reasonably request.
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14 -
ARTICLE
VII
MISCELLANEOUS
Section
7.01 Brokers.
DEXT
and Rise & Grow agree that there were no finders or brokers involved in
bringing the parties together or who were instrumental in the negotiation,
execution or consummation of this Agreement. DEXT and Rise & Grow each agree
to indemnify the other against any claim by any third person other than those
described above for any commission, brokerage, or finder’s fee arising from the
transactions contemplated hereby based on any alleged agreement or understanding
between the indemnifying party and such third person, whether express or implied
from the actions of the indemnifying party.
Section
7.02 Governing
Law.
This
Agreement shall be governed by, enforced, and construed under and in accordance
with the laws of the United States of America and, with respect to the matters
of state law, with the laws of the State of Delaware. Venue for all matters
shall be in New York, New York, without giving effect to principles of conflicts
of law thereunder. Each of the parties (a) irrevocably consents and agrees
that
any legal or equitable action or proceedings arising under or in connection
with
this Agreement shall be brought exclusively in the federal courts of the United
States. By execution and delivery of this Agreement, each party hereto
irrevocably submits to and accepts, with respect to any such action or
proceeding, generally and unconditionally, the jurisdiction of the aforesaid
court, and irrevocably waives any and all rights such party may now or hereafter
have to object to such jurisdiction.
Section
7.03 Notices.
Any
notice or other communications required or permitted hereunder shall be in
writing and shall be sufficiently given if personally delivered to it or sent
by
telecopy, overnight courier or registered mail or certified mail, postage
prepaid, addressed as follows:
If
to Rise & Grow, to:
|
Rise
and Grow Limited
|
Xxxx
00, Xxxxxx Xxxxx
|
|
Xxx
Xxxxx Xxxxx
|
|
00
Xxx Xxxxx Xxxxxx
|
|
Xxxxxxx,
Xxxx Xxxx
|
|
Attention:
XXX Xxxx Fat, Sole Director
|
|
Facsimile:
(000) 0000 0000
|
|
With
copies to:
|
Xxxxxxxxxxx
& Xxxxxxxx Xxxxxxx Xxxxx Xxxxx LLP
|
Wachovia Financial Center | |
000
Xxxxx Xxxxxxxx Xxxx., Xxxxx 0000
|
|
Xxxxx,
XX 00000
|
|
Attention:
Xxxxxxx X. Xxxxxx, Esq.
|
|
Telephone
(000) 000-0000
|
|
Facsimile:
(000) 000-0000
|
|
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15 -
If
to Stockholder, to:
|
Newrise
Century, Inc.
|
Xxxx
000, 0xx
Xxxxx
|
|
Xxx
Xxxx Mansion, Xx. X-000
|
|
Xxxxxxxxxxxx,
Xxxxxxxx Xxxxxxxx
|
|
Xxxxxxx,
XXXXX
|
|
Postal
Code 100021
|
|
Attention:
XXX Xxxx Fat, Sole Director
|
|
Facsimile:
(000) 0000 0000
|
|
If
to DEXT, to:
|
Dexterity
Surgical, Inc.
|
000
Xxxxx Xxxxxxxxx, Xxxxx 000
|
|
Xxxxxxxxxxxx,
XX 00000
|
|
Attention:
Xxxxx X. Xxxxxxx, CEO and CFO
|
|
Telephone:
(000) 000-0000
|
|
Facsimile:
(000) 000-0000
|
|
With
copies to:
|
Xxxxxxx
& Xxxxxxx, LLP
|
000
Xxxxx Xxxxxxxxx, xxxxx 000
|
|
Xxxxxxxxxxxx,
XX 00000
|
|
Attention:
Xxxx Xxxxxxx, Esq.
|
|
Telephone:
(000) 000-0000
|
|
Facsimile:
(000) 000-0000
|
or
such
other addresses as shall be furnished in writing by any party in the manner
for
giving notices hereunder, and any such notice or communication shall be deemed
to have been given (i) upon receipt, if personally delivered, (ii) on the day
after dispatch, if sent by overnight courier and (iii) upon dispatch, if
transmitted by facsimile or telecopy and receipt is confirmed by telephone.
Section
7.04 Attorney’s
Fees.
In the
event that either party institutes any action or suit to enforce this Agreement
or to secure relief from any default hereunder or breach hereof, the prevailing
party shall be reimbursed by the losing party for all costs, including
reasonable attorney’s fees, incurred in connection therewith and in enforcing or
collecting any judgment rendered therein.
Section
7.05 Confidentiality.
Each
party hereto agrees with the other that, unless and until the transactions
contemplated by this Agreement have been consummated, it and its representatives
will hold in strict confidence all data and information obtained with respect
to
another party or any subsidiary thereof from any representative, officer,
director or employee, or from any books or records or from personal inspection,
of such other party, and shall not use such data or information or disclose
the
same to others, except (i) to the extent such data or information is published,
is a matter of public knowledge, or is required by law to be published; or
(ii)
to the extent that such data or information must be used or disclosed in order
to consummate the transactions contemplated by this Agreement. In the event
of
the termination of this Agreement, each party shall return to the other party
all documents and other materials obtained by it or on its behalf and shall
destroy all copies, digests, work papers, abstracts or other materials relating
thereto, and each party will continue to comply with the confidentiality
provisions set forth herein.
Section
7.06 Public
Announcements and Filings.
Unless
required by applicable law or regulatory authority, none of the parties will
issue any report, statement or press release to the general public, to the
trade, to the general trade or trade press, or to any third party (other than
its advisors and representatives in connection with the transactions
contemplated hereby) or file any document, relating to this Agreement and the
transactions contemplated hereby, except as may be mutually agreed by the
parties. Copies of any such filings, public announcements or disclosures,
including any announcements or disclosures mandated by law or regulatory
authorities, shall be delivered to each party at least one (1) business day
prior to the release thereof.
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16 -
Section
7.07 Entire
Agreement.
This
Agreement represents the entire agreement between the parties relating to the
subject matter thereof and supersedes all prior agreements, understandings
and
negotiations, written or oral, with respect to such subject matter.
Section
7.08 Recitals.
The
above
recitals are true and correct and are incorporated herein, in their entirety,
by
this reference.
Section
7.09 Third
Party Beneficiaries.
This
contract is strictly between DEXT, the Stockholder and Rise & Grow, and,
except as specifically provided, no director, officer, stockholder (other than
the Stockholder), employee, agent, independent contractor or any other person
or
entity shall be deemed to be a third party beneficiary of this
Agreement.
Section
7.10 Expenses.
Subject
to Section 7.04 above, whether or not the Exchange is consummated, each of
DEXT,
the Stockholder and Rise & Grow will bear their own respective expenses,
including legal, accounting and professional fees, incurred in connection with
the Exchange or any of the other transactions contemplated hereby; provided,
however, that upon the consummation of the Exchange, DEXT will not be
responsible for the legal, accounting and other professional fees incurred
by
DEXT prior to the Closing Date in connection with the Exchange or an of the
other transactions contemplated hereby.
Section
7.11 Survival;
Termination.
The
representations, warranties, and covenants of the respective parties shall
survive the Closing Date and the consummation of the transactions herein
contemplated for a period of two (2) years.
Section
7.12 Counterparts.
This
Agreement may be executed in multiple counterparts, each of which shall be
deemed an original and all of which taken together shall be but a single
instrument.
Section
7.13 Amendment
or Waiver.
Every
right and remedy provided herein shall be cumulative with every other right
and
remedy, whether conferred herein, at law, or in equity, and may be enforced
concurrently herewith, and no waiver by any party of the performance of any
obligation by the other shall be construed as a waiver of the same or any other
default then, theretofore, or thereafter occurring or existing. At any time
prior to the Closing Date, this Agreement may by amended by a writing signed
by
all parties hereto, with respect to any of the terms contained herein, and
any
term or condition of this Agreement may be waived or the time for performance
may be extended by a writing signed by the party or parties for whose benefit
the provision is intended.
Section
7.14 Best
Efforts.
Subject
to the terms and conditions herein provided, each party shall use its best
efforts to perform or fulfill all conditions and obligations to be performed
or
fulfilled by it under this Agreement so that the transactions contemplated
hereby shall be consummated as soon as practicable. Each party also agrees
that
it shall use its best efforts to take, or cause to be taken, all actions and
to
do, or cause to be done, all things necessary, proper or advisable under
applicable laws and regulations to consummate and make effective this Agreement
and the transactions contemplated herein.
Section
7.15 Entire
Agreement.
This
Agreement represents the entire agreement between the parties relating to the
subject matter thereof and supersedes all prior agreements, understandings
and
negotiations, written or oral, with respect to such subject matter.
[Signature
Page To Follow]
-
17 -
IN
WITNESS WHEREOF,
the
corporate parties hereto have caused this Share Exchange Agreement to be
executed by their respective officers, hereunto duly authorized, as of the
date
first-above written.
DEXTERITY SURGICAL, INC. | |||
By:
|
/s/
Xxxxx X. Xxxxxxx
|
||
Name:
|
Xxxxx
X. Xxxxxxx
|
||
Title:
|
President
and Sole Director
|
||
RISE AND GROW LIMITED | |||
By:
|
/s/
XXX Xxxx Fat
|
||
Name:
|
XXX
Xxxx Fat
|
||
Title:
|
sole
director
|
-
18 -
The
undersigned Stockholder of Rise & Grow hereby agrees to participate in the
Exchange on the terms set forth above. Subject to Section 7.11 above, the
undersigned hereby represents and affirms that it has read each of the
representations and warranties of Rise & Grow set out in Article I hereof
and that, to the best of its knowledge, all of such representations and
warranties are true and correct.
NEWISE CENTURY INC. | |||
By:
|
/s/
XXX Xxxx Fat
|
||
Name:
|
XXX
Xxxx Fat
|
||
Title:
|
sole
director
|
-
19 -
RISE
& GROW SCHEDULES
Item
1.01
|
Certificate
of Incorporation of Rise and Grow Limited
|
|
(Please
see Exhibit 3.3 to the Company’s Current Report on Form 8-K as filed with
the SEC on December 20, 2007).
|
||
Certificate
of Incorporation of Zhi Xxx Xx Xxxx (Beijing) Technology Co.,
Ltd.
|
||
(Please
see Exhibit 3.4 to the Company’s Current Report on Form 8-K as filed with
the SEC on December 20, 2007).
|
||
Charter
of Zhi Xxx Xx Xxxx (Beijing) Technology Co.,
Ltd.
|
||
(Please
see Exhibit 3.5 to the Company’s Current Report on Form 8-K as filed with
the SEC on December 20, 2007)
|
||
Item
1.04
|
Audited
Financial Statements of Zhiyuan at June 30, 2007
|
|
(Please
see Exhibit 99.1 to the Company’s Current Report on Form 8-K as filed with
the SEC on December 20, 2007).
|
||
Unaudited
Consolidated Financial Statements of Rise & Grow Limited at September
30, 2007
|
||
(Please
see Exhibit 99.2 to the Company’s Current Report on Form 8-K as filed with
the SEC on December 20, 2007).
|
||
Item
1.08
|
Material
Contacts
(Please see Exhibits 10.2 through 10.8 to the Company’s Current Report on
Form 8-K as filed with the SEC on December 20, 2007):
|
|
(a)
Exclusive Technical Consulting and Service Agreement
|
||
(b)
Exclusive Equity Interest Purchase Agreement
(Xu)
|
||
(c)
Exclusive Equity Interest Purchase Agreement
(Wang)
|
||
(d)
Equity Interest Pledge Agreement (Xu)
|
||
(e)
Equity Interest Pledge Agreement (Wang)
|
||
(f)
Power of Attorney (Xu)
|
||
(g)
Power of Attorney (Wang)
|
||
(h)
All of those Zhiyuan contracts listed in Annex
A
attached hereto.
|
-
20 -
DEXT
SCHEDULES
Item
2.01
|
Certificate
of Incorporation and Bylaws
(Please see Exhibits 3.1 and 3.2 to the Company’s Current Report on Form
8-K as filed with the SEC on December __, 2007).
|
|
Item
2.04
|
Audited
Financial Statements at December 31, 2006
(Please see the Company’s Annual Report on Form 10-KSB as filed with the
SEC on April 13, 2007).
|
|
Unaudited
Financial Statements at September 30, 2007
(Please see the Company’s Quarterly Report on Form 10-QSB as filed with
the SEC on October 24, 2007).
|
||
Item
2.08
|
Detailed
Description of Reorganization (please
see separate Item 2.08 document attached hereto).
|
|
Item
2.09
|
Material
Contacts:
|
|
(a)
Warrant Cancellation Agreement, dated November 26, 2007, by and between
Dexterity Surgical, Inc. and Xxxx Xxxxxxx
|
||
(b)
Dip Loan Agreement (Convertible), dated November 28, 2007, by and
between
Dexterity Surgical, Inc. and Intellect Goal Investments
|
||
(c)
Dip Loan Agreement (Convertible), dated November 28, 2007, by and
between
Dexterity Surgical, Inc. and MCC Group USA, Inc.
|
||
(d)
Dip Loan Agreement (Convertible), dated November 28, 2007, by and
between
Dexterity Surgical, Inc. and Tazbaz Holdings Limited
|
||
(e)
Dip Loan Agreement (Convertible), dated November 28, 2007, by and
between
Dexterity Surgical, Inc. and Future Expert Investments
Limited
|
||
(f)
Dip Loan Agreement (Convertible), dated November 28, 2007, by and
between
Dexterity Surgical, Inc. and Keen Merit Investments
Limited
|
||
(g)
Dip Loan Agreement (Convertible), dated November 28, 2007, by and
between
Dexterity Surgical, Inc. and Lead Crest Investments
Limited
|
||
(h)
Dip Loan Agreement (Convertible), dated November 28, 2007, by and
between
Dexterity Surgical, Inc. and Xxxx Xxxxxxx
|
||
(i)
Stock Cancellation Agreement, dated December 11, 2007, by and between
Dexterity Surgical, Inc. and Flex Financial Group, Inc.
|
||
(j)
Agreement, dated November 27, 2007, by and between Dexterity Surgical,
Inc. and Corporate Stock Transfer
|
||
Item
2.14
|
Bank
Accounts; Powers of Attorney:
None.
|
-
21 -
EXHIBIT
A
FORM
OF SUITABILITY LETTER
TO: Dexterity
Surgical, Inc.
I
make
the following representations with the intent that they may be relied on by
Dexterity Surgical, Inc. (“Company”),
in
determining my suitability as a purchaser of securities of the Company
(“Shares”).
1. I
have
had the opportunity to ask questions of, and receive answers and information,
from the officers of the Company and I deemed such information sufficient to
make an investment decision on the Company.
2. I
have
such knowledge and experience in business and financial matters that I am
capable of evaluating the Company, its business activities, and the risks and
merits of this prospective investment, and I
am
not
utilizing a purchaser representative (as defined in regulation D) in connection
with the evaluation of such risks and merits, except as set forth in paragraph
3.
3. I
shall
provide a separate written statement from each purchaser representative on
the
Purchaser Representative Acknowledgment form available from the Company in
which
is disclosed (i) the relationship of the purchaser representative with the
Company, if any, which has existed at any time during the previous two years,
and compensation received or to be received as a result of such relationship,
and (ii) the education, experience, and knowledge in financial and business
matters which enables the purchaser representative to evaluate the relative
merits and risks of an investment in the Company.
4. The
undersigned and the purchaser representatives listed above, if any, together
have such knowledge and experience in financial and business matters that they
are capable of evaluating the Company and the proposed activities thereof and
the merits and risks of this prospective investment.
5. I
have
adequate means of providing for my current needs and possible personal
contingencies and have no need in the foreseeable future for liquidity of an
investment in the Company.
6. Instructions:
Complete either (a) or (b) below, as applicable:
(a) FOR
ACCREDITED INVESTORS.
I
confirm that I am an “accredited investor” as defined under rule 501 of
regulation D promulgated under the Securities Act of 1933, as amended (the
“Securities
Act”),
as
checked below:
(i) Any
bank
as defined in section 3(a)(2) of the Securities Act or any savings and loan
association or other institution as defined in section 3(a)(5)(A) of the
Securities Act whether acting in its individual or fiduciary capacity; any
broker or dealer registered pursuant to section 15 of the Securities Exchange
Act of 1934; any insurance company as defined in section 2(13) of the Securities
Act; any investment company registered under the Investment Company Act of
1940
or a business development company as defined in section 2(a)(48) of that Act;
any small business investment company licensed by the U. S. Small Business
Administration under section 301(c) or (d) of the Small Business Investment
Act
of 1958; any plan established and maintained by a state, its political
subdivisions, or any agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees, if such plan has total assets
in
excess of $5,000,000; any employee benefit plan within the meaning of the
Employee Retirement Income Security Act of 1974, if the investment decision
is
made by a plan fiduciary, as defined in section 3(21) of such Act, which is
either a bank, savings and loan association, insurance company, or registered
investment adviser, or if the employee benefit plan has total assets in excess
of $5,000,000 or, if a self-directed plan, with investment decisions made solely
by persons that are accredited investors;
A-1
o |
Yes
|
o
|
No
|
(ii) Any
private business development company as defined in section 302(a)(22) of the
Investment Advisers Act of 1940;
o |
Yes
|
o
|
No
|
(iii) Any
organization described in section 501(c)(3) of the Internal Revenue Code,
corporation, Massachusetts or similar business trust, or partnership, not formed
for the specific purpose of acquiring the securities offered, with total assets
in excess of $5,000,000;
o |
Yes
|
o
|
No
|
(iv) Any
director, executive officer, or general partner of the issuer of the securities
being offered or sold, or any director, executive officer, or general partner
of
a general partner of that issuer;
o |
Yes
|
o
|
No
|
(v) Any
natural person whose individual net worth or joint net worth with that person’s
spouse, at the time of his or her purchase exceeds $1,000,000;
o |
Yes
|
o
|
No
|
For
purposes of category (v), the term “net worth” means the excess of total assets
over total liabilities. In computing net worth for the purposes of category
(v)
above, the undersigned’s principal residence must be valued either at (A) cost,
including the cost of improvements, net of current encumbrances upon the
property or (B) the appraised value of the property as determined upon a written
appraisal used by an institutional lender making a loan to the individual
secured by the property, including the cost of subsequent improvements, net
of
current encumbrances upon the property.
(vi) Any
natural person who had an individual income in excess of $200,000 in each of
the
two most recent years or joint income with that person’s spouse in excess of
$300,000 in each of those years and has a reasonable expectation of reaching
the
same income level in the current year;
A-2
o |
Yes
|
o
|
No
|
In
determining income, the undersigned should add to his or her adjusted gross
income any amounts attributable to tax exempt income received, losses claimed
as
a limited partner in any limited partnership, deductions claimed for depletion,
contributions to an XXX or Xxxxx retirement plan, alimony payments, and any
amount by which income from long-term capital gains has been reduced in arriving
at adjusted gross income.
(vii) Any
trust, with total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the securities offered, whose purchase is directed by
a
sophisticated person as described in section 230.506(b)(2)(ii); and
o |
Yes
|
o
|
No
|
(viii) Any
entity in which all of the equity owners are accredited investors.
o |
Yes
|
o
|
No
|
(b) FOR
NONACCREDITED INVESTORS.
I am
not
an
accredited investor.
The
following information is being provided here in lieu of furnishing a personal
financial statement.
(i) My
net
worth excluding principal residence, furnishings, and automobiles is at least
_____ times the total investment I intend to make in the Company;
(ii) My
annual
disposable income, after excluding all of my personal and family living expenses
and other cash requirements for current obligations, is such that the loss
of my
entire investment in the Company would not materially alter my standard of
living;
o |
Yes
|
o
|
No
|
(iii) Considering
the foregoing and all other relevant factors in my financial and personal
circumstances, I am able to bear the economic risk of an investment in the
Company.
o |
Yes
|
o
|
No
|
7. I
have
previously been advised that I would have an opportunity to review all the
pertinent facts concerning the Company, and to obtain any additional information
which I might request, to the extent possible or obtainable, without
unreasonable effort and expense, in order to verify the accuracy of the
information provided me.
A-3
8. I
have
personally communicated or been offered the opportunity to communicate with
executive officers of the Company to discuss the business and financial affairs
of the Company, its products and activities, and its plans for the future.
I
acknowledge that if I would like to further avail myself of the opportunity
to
ask additional questions of the Company, the Company will make arrangements
for
such an opportunity on request.
9. I
have
been advised that no accountant or attorney engaged by the Company is acting
as
my representative, accountant, or attorney.
10. I
will
hold title to my interest as follows:
o
|
Community
Property
|
o
|
Separate
Property
|
|
o
|
Joint
Tenants, with Right of Survivorship
|
o
|
Tenants
in Common
|
|
o
|
Other
(Single Person, Trust, Etc., Please
Indicate.)
|
11. I
am a
bona fide resident of the state of __________. The address below is my true
and
correct principal residence.
DATED
this ____ day of __________, 2007.
Name
(Please Print)
|
Name
of Joint Subscriber, If Any
|
|
Signature
|
Signature
|
|
Xxxxxx
Xxxxxxx
|
Xxxxxx
Xxxxxxx
|
|
Xxxx,
Xxxxx, and Zip Code
|
City,
State, and Zip Code
|
A-4
EXHIBIT
B
FORM
OF INVESTMENT LETTER
Dexterity
Surgical, Inc.
Re: Purchase
of shares of Common Stock of Dexterity Surgical, Inc.
Gentlemen:
In
connection with the acquisition by the undersigned of shares of common stock
of
Dexterity Surgical, Inc. (“Securities”),
the
undersigned represents that the securities are being acquired without a view
to,
or for, resale in connection with any distribution of such Securities or any
interest therein without registration or other compliance under the Securities
Act of 1933, as amended (“Securities
Act”),
and
that the undersigned has no direct or indirect participation in any such
undertaking or in the underwriting of such an undertaking.
The
undersigned understands that the Securities have not been registered, but are
being acquired by reason of a specific exemption under the Securities Act as
well as under certain state statutes for transactions by an issuer not involving
any public offering and that any disposition of the subject Securities may,
under certain circumstances, be inconsistent with this exemption and may make
the undersigned an “underwriter” within the meaning of the Securities Act. It is
understood that the definition of an “underwriter” focuses on the concept of
“distribution” and that any subsequent disposition of the subject Securities can
only be effected in transactions which are not considered distributions.
Generally, the term “distribution” is considered synonymous with “public
offering” or any other offer or sale involving general solicitation or general
advertising. Under present law, in determining whether a distribution occurs
when securities are sold into the public market, under certain circumstances
one
must consider the availability of public information regarding the issuer,
a
holding period for the securities sufficient to assure that the persons desiring
to sell the securities without registration first bear the economic risk of
their investment, and a limitation on the number of securities which the
stockholder is permitted to sell and on the manner of sale, thereby reducing
the
potential impact of the sale on the trading markets. These criteria are set
forth specifically in rule 144 promulgated under the Securities Act. After
one
year from the date the Securities are fully paid for and the subscription is
accepted by the issuer, all as calculated in accordance with rule 144(d), sales
of the Securities in reliance on rule 144 can only be made in limited amounts
in
accordance with the terms and conditions of that rule. After two years from
the
date the Securities are fully paid for, as calculated in accordance with rule
144(d), it can generally be sold without meeting these conditions provided
the
holder is not (and has not been for the preceding three months) an affiliate
of
the issuer.
B-1
Dexterity
Surgical, Inc.
Page
Two
The
undersigned acknowledges that the securities must be held and may not be sold,
transferred, or otherwise disposed of for value unless it is subsequently
registered under the Securities Act or an exemption from such registration
is
available; the issuer is under no obligation to register the Securities under
the Securities Act or under Section 12 of the Securities Exchange Act of 1934,
as amended, except as may be expressly agreed to by it in writing; if rule
144
is available, and no assurance is given that it will be, initially only routine
sales of such Securities in limited amounts can be made in reliance on rule
144
in accordance with the terms and conditions of that rule; the issuer is under
no
obligation to the undersigned to make rule 144 available, except as may be
expressly agreed to by it in writing; in the event rule 144 is not available,
compliance with regulation A or some other exemption may be required before
the
undersigned can sell, transfer, or otherwise dispose of such Securities without
registration under the Securities Act; the issuer’s registrar and transfer agent
will maintain a stop transfer order against the registration of transfer of
the
Securities; and the certificate representing the convertible promissory notes
and warrants composing the Securities will bear a legend in substantially the
following form so restricting the sale of such Securities.
THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ARE “RESTRICTED
SECURITIES” WITHIN THE MEANING OF RULE 144 PROMULGATED UNDER THE SECURITIES ACT.
THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD OR
TRANSFERRED WITHOUT COMPLYING WITH RULE 144 IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION OR OTHER COMPLIANCE UNDER THE SECURITIES ACT.
The
issuer may refuse to register transfer of the securities in the absence of
compliance with rule 144 unless the undersigned furnishes the issuer with a
“no-action” or interpretative letter from the U.S. Securities and Exchange
Commission or an opinion of counsel reasonably acceptable to the issuer stating
that the transfer is proper; further, unless such letter or opinion states
that
the Securities are free of any restrictions under the Securities Act, the issuer
may refuse to transfer the Securities to any transferee who does not furnish
in
writing to the issuer the same representations and agree to the same conditions
with respect to such Securities as are set forth herein. The issuer may also
refuse to transfer the securities if any circumstances are present reasonably
indicating that the transferee’s representations are not accurate.
Very truly yours, | |||
Dated:
|
|||
(Subscriber)
|
|||
(Joint
Subscriber)
|
B-2
EXHIBIT
C
[FORM
OF LEGAL OPINION]
B-3
ANNEX
A
[ZHIYUAN
CONTRACTS]
B-4