SHARE EXCHANGE AGREEMENT
EXHIBIT
2.2
THIS
SHARE EXCHANGE AGREEMENT, dated as of the 11th day of December, 2008 (the “Agreement”), by and
among SRKP 18, Inc., a Delaware corporation (the “Company”); World
Orient Universal Limited, a company organized under the laws of the British
Virgin Islands (“World
Orient”); and all of the shareholders of World Orient, each of whom has
executed a counterpart signature page to this Agreement (each, a “Shareholder” and
collectively, the “Shareholders”). The
Company, World Orient, and the Shareholders are collectively referred to herein
as the “Parties.”
WITNESSETH:
WHEREAS,
the Shareholders own all of the issued and outstanding shares of the capital of
World Orient (the “World Orient
Shares”); which is the 100% parent of Global Asia Universal Limited, a
company organized under the laws of the British Virgin Islands (“Global Asia”), which
is the 100% parent of EverFair Technologies Limited, a company organized under
the laws of Hong Kong (“EverFair”), which is
the 100% parent of Zhengzhou Shenyang Technology Limited, a company organized
under the laws of the People’s Republic of China (“ZST”).
WHEREAS,
the Company desires to acquire from Shareholders, and Shareholders desire to
sell to the Company, the World Orient Shares in exchange for the issuance by the
Company of an aggregate of 1,985,000 shares (the “Company Shares”) of
the Company’s common stock, $0.0001 par value (“Common Stock”) to the
Shareholders and/or their designees on the terms and conditions set forth herein
(the “Share
Exchange”).
WHEREAS,
after giving effect to the Share Exchange and the Equity Financing as described
herein, there will be approximately 9,081,390 shares of Company Common Stock
issued and outstanding, 3,125,000 shares of the Company’s Series A Convertible
Preferred Stock (each of which is immediately convertible into one (1) share of
Company Common Stock) issued and outstanding, and warrants to purchase 7,096,390
shares of Company Common Stock issued and outstanding.
WHEREAS,
the Parties intend, by executing this Agreement, to implement a tax-deferred
exchange of property governed by Xxxxxxx 000 xx xxx Xxxxxx Xxxxxx Internal
Revenue Code of 1986, as amended (the “Code”).
NOW,
THEREFORE, in consideration, of the promises and of the mutual representations,
warranties and agreements set forth herein, the Parties hereto agree as
follows:
ARTICLE
I
THE
SHARE EXCHANGE
1.1 The Share
Exchange. Subject to the terms and conditions of this
Agreement, on the Closing Date (as hereinafter defined):
(a) the
Company shall issue and deliver to the Shareholders and/or their designees the
number of authorized but unissued shares of Company Common Stock set forth
opposite their and/or their designee’s names set forth on Schedule I hereto or
pursuant to separate instructions to be delivered prior to Closing,
and
(b) the
Shareholders agree to deliver to the Company duly endorsed certificates
representing the World Orient Shares.
1.2 Time and Place of
Closing. The closing of the transactions contemplated hereby
(the “Closing”)
shall take place at the offices of K&L Gates LLP, or at such place and time
as mutually agreed upon by the Parties hereto. The date upon which
the Closing occurs is defined as the “Closing
Date.”
1.3 Effective
Time. The Share Exchange shall become effective (the “Effective Time”) at
such time as all of the conditions to set forth in Article VII hereof
have been satisfied or waived by the Parties hereto.
1.4 Tax
Consequences. It is intended by the Parties hereto that for
United States income tax purposes, the contribution and transfer of the World
Orient Shares by the Shareholders to the Company in exchange for Company Shares
constitutes a tax-deferred exchange within the meaning of Section 351 of the
Code.
ARTICLE
II
REPRESENTATIONS
AND WARRANTIES OF THE COMPANY
The
Company represents and warrants to World Orient and the Shareholders that now
and/or as of the Closing:
2.1 Due Organization and
Qualification; Due Authorization.
(a) The
Company is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware, with full corporate power and
authority to own, lease and operate its respective business and properties and
to carry on its business in the places and in the manner as presently conducted
or proposed to be conducted. The Company is in good standing as a
foreign corporation in each jurisdiction in which the properties owned, leased
or operated, or the business conducted, by it requires such qualification except
for any such failure, which when taken together with all other failures, is not
likely to have a material adverse effect on the business of the
Company.
(b) The
Company does not own, directly or indirectly, any capital stock, equity or
interest in any corporation, firm, partnership, joint venture or other
entity.
(c) The
Company has all requisite corporate power and authority to execute and deliver
this Agreement, and to consummate the transactions contemplated hereby and
thereby. The Company has taken all corporate action necessary for the
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, and this Agreement constitutes the valid and
binding obligation of the Company, enforceable against the Company in accordance
with its terms, except as may be affected by bankruptcy, insolvency, moratoria
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, equitable remedies is subject to the discretion of the court before
which any proceeding therefore may be brought.
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2.2 No Conflicts or
Defaults. The execution and delivery of this Agreement by the
Company and the consummation of the transactions contemplated hereby do not and
shall not (a) contravene the Certificate of Incorporation or By-laws of the
Company or (b) with or without the giving of notice or the passage of time (i)
violate, conflict with, or result in a breach of, or a default or loss of rights
under, any material covenant, agreement, mortgage, indenture, lease, instrument,
permit or license to which the Company is a party or by which the Company is
bound, or any judgment, order or decree, or any law, rule or regulation to which
the Company is subject, (ii) result in the creation of, or give any party the
right to create, any lien, charge, encumbrance or any other right or adverse
interest (“Liens”) upon any of
the assets of the Company, (iii) terminate or give any party the right to
terminate, amend, abandon or refuse to perform, any material agreement,
arrangement or commitment to which the Company is a party or by which the
Company’s assets are bound, or (iv) accelerate or modify, or give any party the
right to accelerate or modify, the time within which, or the terms under which,
the Company is to perform any duties or obligations or receive any rights or
benefits under any material agreement, arrangement or commitment to which it is
a party.
2.3 Capitalization. The
authorized capital stock of the Company immediately prior to giving effect to
the transactions contemplated hereby consists of 110,000,000 shares of which
100,000,000 have been designated as Company Common Stock and 10,000,000 shares
have been designated as preferred stock, $0.0001 par value (“Preferred
Stock”). As of the date hereof, there are 7,096,390 shares of
Company Common Stock issued and outstanding, no shares of Preferred Stock
outstanding and 7,096,390 warrants outstanding with an exercise price of $0.0001
(the “Warrants”). All
of the outstanding shares of Company Common Stock are, and the Company Shares
when issued in accordance with the terms hereof, will be, duly authorized,
validly issued, fully paid and nonassessable, and have not been or, with respect
to the Company Shares will not be issued in violation of any preemptive right of
stockholders. Other than as set forth herein, there is no outstanding
voting trust agreement or other contract, agreement, arrangement, option,
warrant, call, commitment or other right of any character obligating or
entitling the Company to issue, sell, redeem or repurchase any of its
securities, and there is no outstanding security of any kind convertible into or
exchangeable for Company Common Stock. The Company has not granted
registration rights to any person.
2.4 Financial
Statements. The Company has provided World Orient and the
Shareholders copies of the (i) balance sheet of the Company at December 31,
2007, and the related statements of operations, stockholders’ equity (deficit)
and cash flows for the period from December 7, 2006 (inception) to December 31,
2007, including the notes thereto, as audited by AJ. Xxxxxxx, P.C., independent
registered public accounting firm and (ii) balance sheet of the Company at
September 30, 2008 and the related statements of operations, and cash flows for
the nine (9)-month period then ended (the “Financial
Statements”). The Financial Statements, together with the
notes thereto, have been prepared in accordance with U.S. generally accepted
accounting principles applied on a basis consistent throughout all periods
presented. The Financial Statements present fairly the financial
position of the Company as of the dates and for the periods
indicated. The books of account and other financial records of the
Company have been maintained in accordance with good business
practices.
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2.5 No Assets or
Liabilities. As of the Closing, the Company shall have no more
than $50,000 in liabilities. Except for the foregoing or as set forth
on the Financial Statements, the Company does not have any (a) assets of any
kind or (b) liabilities or obligations, whether secured or unsecured, accrued,
determined, absolute or contingent, asserted or unasserted or
otherwise.
2.6 Taxes. The
Company has filed all United States federal, state, county and local returns and
reports which were required to be filed on or prior to the date hereof in
respect of all income, withholding, franchise, payroll, excise, property, sales,
use, value-added or other taxes or levies, imposts, duties, license and
registration fees, charges, assessments or withholdings of any nature whatsoever
(together, “Taxes”), and has paid
all Taxes (and any related penalties, fines and interest) which have become due
pursuant to such returns or reports or pursuant to any assessment which has
become payable, or, to the extent its liability for any Taxes (and any related
penalties, fines and interest) has not been fully discharged, the same have been
properly reflected as a liability on the books and records of the Company and
adequate reserves therefore have been established.
2.7 Indebtedness; Contracts; No
Defaults. Other than as set forth in Item 2.7 of the
Disclosure Schedule, the Company has no material instruments, agreements,
indentures, mortgages, guarantees, notes, commitments, accommodations, letters
of credit or other arrangements or understandings, whether written or oral, to
which the Company is a party.
2.8 Real
Property. The Company does not own or lease any real
property.
2.9 Compliance with
Law. The Company is in compliance with all applicable federal,
state, local and foreign laws and regulations relating to the protection of the
environment and human health. There are no claims, notices, actions,
suits, hearings, investigations, inquiries or proceedings pending or, to the
knowledge of the Company, threatened against the Company that are based on or
related to any environmental matters or the failure to have any required
environmental permits, and there are no past or present conditions that the
Company has reason to believe are likely to give rise to any material liability
or other obligations of the Company under any environmental laws.
2.10 Permits and
Licenses. The Company has all certificates of occupancy,
rights, permits, certificates, licenses, franchises, approvals and other
authorizations as are reasonably necessary to conduct its respective business
and to own, lease, use, operate and occupy its assets, at the places and in the
manner now conducted and operated, except those the absence of which would not
materially adversely affect its respective business.
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2.11 Litigation. There
is no claim, dispute, action, suit, proceeding or investigation pending or, to
the knowledge of the Company, threatened, against or affecting the business of
the Company, or challenging the validity or propriety of the transactions
contemplated by this Agreement, at law or in equity or admiralty or before any
federal, state, local, foreign or other governmental authority, board, agency,
commission or instrumentality, nor to the knowledge of the Company, has any such
claim, dispute, action, suit, proceeding or investigation been pending or
threatened, during the twelve month period preceding the date
hereof. There is no outstanding judgment, order, writ, ruling,
injunction, stipulation or decree of any court, arbitrator or federal, state,
local, foreign or other governmental authority, board, agency, commission or
instrumentality, against or materially affecting the business of the
Company. The Company has not received any written or verbal inquiry
from any federal, state, local, foreign or other governmental authority, board,
agency, commission or instrumentality concerning the possible violation of any
law, rule or regulation or any matter disclosed in respect of its
business.
2.12 Insurance. The
Company does not currently maintain any form of insurance.
2.13 Patents; Trademarks and
Intellectual Property Rights. The Company does not own or
possess any patents, trademarks, service marks, trade names, copyrights, trade
secrets, licenses, information, Internet web site(s) or proprietary rights of
any nature.
2.14 Securities Law
Compliance. The Company has complied with all of the
applicable requirements of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)
and the Securities Act of 1933, as amended (the “Securities Act”), and
has complied with all applicable blue sky laws.
2.15 Conflicts of
Interest. The Company acknowledges that it is aware and
understands the facts and circumstances of the Conflicts of Interest, as defined
in Section 3.8,
that may, individually and in the aggregate, create a Conflict of
Interest. The Company hereby waives each and all of the Conflicts of
Interest, in addition to any other conflicts of interest that may arise may
exist or arise by virtue of the Conflicts of Interest and acknowledges that it
has carefully read this Agreement, that it is consistent with the terms
previously negotiated by the parties, and understands that it is free at any
time to obtain independent counsel for further guidance.
ARTICLE
III
REPRESENTATIONS
AND WARRANTIES OF WORLD ORIENT
World
Orient represents and warrants to the Company that now and/or as of the
Closing:
3.1 Due Organization and
Qualification; Due Authorization.
(a) World
Orient is a corporation duly incorporated, validly existing and in good standing
under the laws of the British Virgin Islands with full corporate power and
authority to own, lease and operate its business and properties and to carry on
its business in the places and in the manner as presently conducted or proposed
to be conducted. World Orient is in good standing as a foreign
corporation in each jurisdiction in which the properties owned, leased or
operated, or the business conducted, by it requires such qualification except
for any such failure, which when taken together with all other failures, is not
likely to have a material adverse effect on the business of World
Orient.
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(b) Other
than as set forth in Item 3.1(b) of the
Disclosure Schedules, World Orient does not have any subsidiaries (the “Subsidiaries”) and
World Orient does not own, directly or indirectly, any capital stock, equity or
interest in any corporation, firm, partnership, joint venture or other
entity. Other than as set forth in Item 3.1(b), each
Subsidiary is wholly owned by World Orient, free and clear of all liens, and
there is no contract, agreement, arrangement, option, warrant, call, commitment
or other right of any character obligating or entitling World Orient to issue,
sell, redeem or repurchase any of its securities, and there is no outstanding
security of any kind convertible into or exchangeable for securities of World
Orient or any of the Subsidiaries.
(c) World
Orient has all requisite power and authority to execute and deliver this
Agreement, and to consummate the transactions contemplated hereby and
thereby. World Orient has taken all corporate action necessary for
the execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, and this Agreement constitutes the valid and
binding obligation of World Orient, enforceable against it in accordance with
its terms, except as may be affected by bankruptcy, insolvency, moratoria 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.
3.2 No Conflicts or
Defaults. The execution and delivery of this Agreement by
World Orient and the consummation of the transactions contemplated hereby do not
and shall not (a) contravene the governing documents of World Orient or its
Subsidiaries, or (b) with or without the giving of notice or the passage of
time, (i) violate, conflict with, or result in a breach of, or a default or loss
of rights under, any material covenant, agreement, mortgage, indenture, lease,
instrument, permit or license to which World Orient or its Subsidiaries is a
party or by which World Orient or its Subsidiaries or any of their respective
assets are bound, or any judgment, order or decree, or any law, rule or
regulation to which their assets are subject, (ii) result in the creation of, or
give any party the right to create, any lien upon any of the assets of World
Orient or its Subsidiaries, (iii) terminate or give any party the right to
terminate, amend, abandon or refuse to perform any material agreement,
arrangement or commitment to which World Orient or its Subsidiaries is a party
or by which World Orient or its Subsidiaries or any of their respective assets
are bound, or (iv) accelerate or modify, or give any party the right to
accelerate or modify, the time within which, or the terms under which World
Orient or its Subsidiaries is to perform any duties or obligations or receive
any rights or benefits under any material agreement, arrangement or commitment
to which it is a party.
3.3 Capitalization. The
authorized capital stock of World Orient immediately prior to giving effect to
the transactions contemplated hereby consists of 50,000 ordinary shares, of
which, as of the date hereof, there were 50,000 shares issued and
outstanding. Except as set forth herein, all of the outstanding
shares of World Orient are duly authorized, validly issued, fully paid and
nonassessable, and have not been or, with respect to World Orient Shares, will
not be transferred in violation of any rights of third
parties. Except as set forth in Item 3.3 of the
Disclosure Schedule, the World Orient Shares are not subject to any preemptive
or subscription right, any voting trust agreement or other contract, agreement,
arrangement, option, warrant, call, commitment or other right of any character
obligating or entitling World Orient to issue, sell, redeem or repurchase any of
its securities that will survive Closing and there is no outstanding security of
any kind convertible into or exchangeable for common shares. All of
the World Orient Shares are owned of record and beneficially by the Shareholders
and free and clear of any liens, claims, encumbrances, or restrictions of any
kind.
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3.4 Taxes. World
Orient has filed all returns and reports which were required to be filed on or
prior to the date hereof, and has paid all Taxes (and any related penalties,
fines and interest) which have become due pursuant to such returns or reports or
pursuant to any assessment which has become payable, or, to the extent its
liability for any Taxes (and any related penalties, fines and interest) has not
been fully discharged, the same have been properly reflected as a liability on
the books and records of World Orient and adequate reserves therefore have been
established. All such returns and reports filed on or prior to the
date hereof have been properly prepared and are true, correct (and to the extent
such returns reflect judgments made by World Orient such judgments were
reasonable under the circumstances) and complete in all material
respects. No extension for the filing of any such return or report is
currently in effect. No tax return or tax return liability of World
Orient has been audited or, presently under audit. All taxes and any
penalties, fines and interest which have been asserted to be payable as a result
of any audits have been paid. World Orient has not given or been
requested to give waivers of any statute of limitations relating to the payment
of any Taxes (or any related penalties, fines and interest). There
are no claims pending for past due Taxes. All payments for
withholding taxes, unemployment insurance and other amounts required to be paid
for periods prior to the date hereof to any governmental authority in respect of
employment obligations of World Orient have been paid or shall be paid prior to
the Closing and have been duly provided for on the books and records of World
Orient and in the World Orient Financial Statements.
3.5 Indebtedness; Contracts; No
Defaults. Other than as set forth in Item 3.5 of the
Disclosure Schedule, neither World Orient nor its Subsidiaries have any material
instruments, agreements, indentures, mortgages, guarantees, notes, commitments,
accommodations, letters of credit or other arrangements or understandings,
whether written or oral, to which World Orient or its Subsidiaries is a
party.
3.6 Compliance with
Law. Except as specified in Item 3.6 of the
Disclosure Schedule, World Orient and its Subsidiaries are conducting their
respective businesses in material compliance with all applicable law, ordinance,
rule, regulation, court or administrative order, decree or process, or any
requirement of insurance carriers material to its business. Except as
specified in Item
3.6 of the Disclosure Schedule, neither World Orient nor its Subsidiaries
has received any notice of violation or claimed violation of any such law,
ordinance, rule, regulation, order, decree, process or requirement.
3.7 Litigation.
(a) There
is no claim, dispute, action, suit, proceeding or investigation pending or
threatened, against or affecting World Orient or its Subsidiaries or challenging
the validity or propriety of the transactions contemplated by this Agreement, at
law or in equity or admiralty or before any federal, state, local, foreign or
other governmental authority, board, agency, commission or instrumentality, has
any such claim, dispute, action, suit, proceeding or investigation been pending
or threatened, during the twelve (12)-month period preceding the date hereof,
except as specified in Item 3.7 of the
Disclosure Schedule; and
(b) there
is no outstanding judgment, order, writ, ruling, injunction, stipulation or
decree of any court, arbitrator or federal, state, local, foreign or other
governmental authority, board, agency, commission or instrumentality, against or
materially affecting World Orient or its Subsidiaries.
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3.8 Conflicts of
Interest. Neither World Orient or its Subsidiaries has
received any written or verbal inquiry from any federal, state, local, foreign
or other governmental authority, board, agency, commission or instrumentality
concerning the possible violation of any law, rule or regulation or any matter
disclosed in respect of its business. World Orient acknowledges that
it is aware and understands the following facts and circumstances that may,
individually and in the aggregate, create a conflict of interest:
(i) WestPark Capital, Inc., a FINRA
member (“WestPark”), is the
placement agent for the Equity Financing and WestPark will be paid a commission
of the gross proceeds from the Equity Financing for its services;
(ii) Xxxxxxx Xxxxxxxxx, who is the
founder, Chief Executive, and President and indirectly holds a 100% interest in
WestPark, is also the President, a Director and a controlling stockholder of the
Company beneficially holding approximately 78.1% of the Company’s Common Stock
and Warrants (prior to the Share Exchange and excluding shares held by WestPark
Financial Services LLC as described below);
(iii) Xxxxxxx X. Xxxxxxxxxxxx, who is
the President and Chief Financial Officer of WestPark, is also the Secretary,
Chief Financial Officer, and a Director and a controlling stockholder of the
Company beneficially holding approximately 18.2% of the Company’s Common Stock
and Warrants (prior to the Share Exchange);
(iv) Xxxxxx Xxxxxxxxxxxx is a
controlling stockholder of the Company beneficially holding approximately 28.9%
of the Company’s outstanding Common Stock and Warrants (prior to the Share
Exchange);
(v) Xxxxx XxXxxxxx, who is the Vice
President of Corporate Finance of WestPark, is a stockholder of the Company
beneficially holding approximately 6.8% of the Company’s Common Stock and
Warrants (prior to the Share Exchange);
(vi) Xxxxx
Xxxxx, who is an employee of WestPark, is a stockholder of the Company
beneficially holding approximately 3.9% of the Company’s outstanding Common
Stock and Warrants (prior to the Share Exchange);
(vii) Xxxxxx
Xxxxxxx, who is a partner of K&L Gates LLP, legal counsel for ZST, was,
prior to the date of this Agreement, a stockholder of the Company beneficially
holding approximately 6.8% of the Company’s outstanding Common Stock and
Warrants (prior to the Share Exchange). The securities previously held by Xx.
Xxxxxxx were transferred to an immediate family member and Xx. Xxxxxxx currently
disclaims beneficial ownership of such securities; and
(vii) WestPark
LLC, which is the parent of WestPark and of which Xxxxxxx Xxxxxxxxx serves as
CEO and Chairman, is a controlling stockholder of the Company beneficially
holding approximately 56.2% of the Company’s Common Stock and Warrants (prior to
the Share Exchange).
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(i)
through (vii) in this Section are herein referred to as, the “Conflicts of
Interest”). World Orient hereby waives each and all of the
Conflicts of Interest, in addition to any other conflicts of interest that may
arise, may exist or arise by virtue of the Conflicts of Interest and
acknowledges that it has carefully read this Agreement, that it is consistent
with the terms previously negotiated by the parties, and understands that it is
free at any time to obtain independent counsel for further
guidance.
ARTICLE
IV
REPRESENTATION
AND WARRANTIES OF THE SHAREHOLDERS
The
Shareholders hereby represent and warrant to the Company that now and/or as of
the Closing:
4.1 Title to
Shares. Each of the Shareholders is the legal and beneficial
owner of the World Orient Shares to be transferred to the Company by such
Shareholders as set forth opposite each Shareholder’s name in Schedule II hereto,
and upon consummation of the exchange contemplated herein, the Company will
acquire from each of the Shareholders good and marketable title to the World
Orient Shares, free and clear of all liens excepting only such restrictions
hereunder upon future transfers by the Company, if any, as may be imposed by
applicable law. The information set forth on Schedule II with
respect to each Shareholder is accurate and complete.
4.2 Due
Authorization. Each of the Shareholders has all requisite
power and authority to execute and deliver this Agreement, and to consummate the
transactions contemplated hereby and thereby. This Agreement
constitutes the valid and binding obligation of each of the Shareholders,
enforceable against such Shareholders in accordance with its terms, except as
may be affected by bankruptcy, insolvency, moratoria 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.
4.3 Purchase for
Investment.
(a) Each
Shareholder is acquiring the Company Shares for investment for such
Shareholder’s own account and not as a nominee or agent, and not with a view to
the resale or distribution of any part thereof, and each Shareholder has no
present intention of selling, granting any participation in, or otherwise
distributing the same. Each Shareholder further represents that he,
she or it does not have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participation to such person or to any
third person, with respect to any of the Company Shares.
(b) Each
Shareholder understands that the Company Shares are not registered under the
Securities Act on the ground that the sale and the issuance of securities
hereunder is exempt from registration under the Securities Act pursuant to
Section 4(2) thereof, and that the Company’s reliance on such exemption is
predicated on the each Shareholder’s representations set forth
herein.
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4.4 Investment
Experience. Each Shareholder acknowledges that he, she or it
can bear the economic risk of his, her or its investment, and has such knowledge
and experience in financial and business matters that he, she or it is capable
of evaluating the merits and risks of the investment in the Company
Shares.
4.5 Information. Each
Shareholder has carefully reviewed such information as such he, she or it deemed
necessary to evaluate an investment in the Company Shares. To the
full satisfaction of each Shareholder, he, she or it has been furnished all
materials that he, she or it has requested relating to the Company and the
issuance of the Company Shares hereunder, and each Shareholder has been afforded
the opportunity to ask questions of representatives of the Company to obtain any
information necessary to verify the accuracy of any representations or
information made or given to him, her or it. Notwithstanding the
foregoing, nothing herein shall derogate from or otherwise modify the
representations and warranties of the Company set forth in this Agreement, on
which the Shareholders have relied in making an exchange of the World Orient
Shares for the Company Shares.
4.6 Restricted
Securities. Each Shareholder understands that the Company
Shares may not be sold, transferred, or otherwise disposed of without
registration under the Securities Act or an exemption there from, and that in
the absence of an effective registration statement covering the Company Shares
or any available exemption from registration under the Securities Act, the
Company Shares must be held indefinitely. Each Shareholder is aware
that the Company Shares may not be sold pursuant to Rule 144 promulgated under
the Securities Act unless all of the conditions of that Rule are
met. Among the conditions for use of Rule 144 may be the availability
of current information to the public about the Company.
4.7 Exempt
Issuance. Each of the Shareholders acknowledges that he, she
or it must assure the Company that the offer and sale of the Company Shares to
such Shareholder qualifies for an exemption from the registration requirements
imposed by the Securities Act and from applicable securities laws of any state
of the United States. Each of the Shareholders agrees that he meets
the criteria established in one or more of subsections (a) or (b),
below.
(a) Accredited Investor, Section
4(2) of the Securities Act and/or Rule 506 of Regulation
D. The Shareholder qualifies as an “accredited investor”, as
that term is defined in Rule 501 of Regulation D, promulgated under the
Securities Act.
(b) Offshore Investor, Rule 903
of Regulation S. The Shareholder is not a U.S. Person, as
defined in Rule 901 of Regulation S, promulgated under the Securities Act,
and the Shareholder, severally but not jointly, represents and warrants to the
Company that:
(i) The
Shareholder is not acquiring the Company Shares as a result of, and such
Shareholder covenants that he, she or it will not engage in any “directed
selling efforts” (as defined in Regulation S under the Securities Act) in
the United States in respect of the Company Shares which would include any
activities undertaken for the purpose of, or that could reasonably be expected
to have the effect of, conditioning the market in the United States for the
resale of any of the Company Shares;
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(ii) The
Shareholder is not acquiring the Company Shares for the account or benefit of,
directly or indirectly, any U.S. Person;
(iii) The
Shareholder is a resident of the British Virgin Islands or Canada;
(iv) the
offer and the sale of the Company Shares to such Shareholder as contemplated in
this Agreement complies with or is exempt from the applicable securities
legislation of the British Virgin Islands and Canada;
(v) the
Shareholder is outside the United States when receiving and executing this
Agreement and that the Shareholder will be outside the United States when
acquiring the Company Shares,
(vi) and
the Shareholder covenants with Company that:
|
(1)
|
offers
and sales of any of the Company Shares prior to the expiration of a period
of one year after the date of original issuance of the Company Shares (the
six (6)-month period hereinafter referred to as the “Distribution
Compliance Period”) shall only be made in compliance with the safe
harbor provisions set forth in Regulation S, pursuant to the registration
provisions of the Securities Act or an exemption therefrom, and that all
offers and sales after the Distribution Compliance Period shall be made
only in compliance with the registration provisions of the Securities Act
or an exemption therefrom and in each case only in accordance with
applicable state securities laws;
and
|
|
(2)
|
The
Shareholder will not engage in hedging transactions with respect to the
Company Shares until after the expiration of the Distribution Compliance
Period.
|
4.8 Conflicts of
Interest. Each Shareholder acknowledges that he, she or it is
aware and understands the facts and circumstances of the Conflicts of Interest,
as defined in Section
3.8 that may, individually and in the aggregate, create a conflict of
interest. Each Shareholder hereby waives each and all of the
Conflicts of Interest, in addition to any other conflicts of interest that may
arise may exist or arise by virtue of the Conflicts of Interest and acknowledges
that he, she or it has carefully read this Agreement, that it is consistent with
the terms previously negotiated by the Parties, and understands that he, she or
it is free at any time to obtain independent counsel for further
guidance.
ARTICLE
V
COVENANTS
5.1 Further
Assurances. Each of the Parties shall use its reasonable
commercial efforts to proceed promptly with the transactions contemplated
herein, to fulfill the conditions precedent for such party’s benefit or to cause
the same to be fulfilled and to execute such further documents and other papers
and perform such further acts as may be reasonably required or desirable to
carry out the provisions of this Agreement and to consummate the transactions
contemplated herein.
11
ARTICLE
VI
DELIVERIES
6.1 Items to be delivered to the
Shareholders prior to or at Closing by the Company.
(a) Certificate
of Incorporation and amendments thereto, By-laws and amendments thereto, and
certificate of good standing of the Company in Delaware;
(b) all
applicable schedules hereto;
(c) all
minutes and resolutions of board of director and shareholder meetings in
possession of the Company;
(d) shareholder
list;
(e) all
financial statements and all tax returns in possession of the
Company;
(f)
resolution from the Company’s Board appointing the designees
of World Orient to the Company’s Board of Directors;
(g) resolution
from the Company’s Board, and if applicable, shareholder resolutions approving
this transaction and authorizing the issuances of the shares
hereto;
(h) letters
of resignation from the Company’s current officers and directors to be effective
upon Closing and after the appointments described in this section;
(i)
certificates representing the shares of the Company Shares
issued in the denominations set forth opposite the names of the Shareholders
and/or their designees on Schedule I to this
Agreement; and
(j)
any other document reasonably requested by the Shareholders that he,
she or it deems necessary for the consummation of this transaction.
6.2 Items to be delivered to the
Company prior to or at Closing by World Orient and the
Shareholders.
(a) all
applicable schedules hereto;
(b) instructions
from World Orient appointing its designees to the Company’s Board of
Directors;
(c) share
certificates and duly executed instruments of transfer and bought and sold notes
from the Shareholders transferring the World Orient Shares to the
Company;
12
(d) resolutions
from the Board of Directors of World Orient, if applicable, and shareholder
resolutions approving the transactions contemplated hereby;
(e) payment
of all liabilities of the Company of up to $50,000 directly out of the proceeds
of the Equity Financing (as defined in Section 7.1(f)
herein) to the appropriate creditors of the Company which shall include
indebtedness owed to Company shareholders and fees owing to Company lawyers,
accountants and similar parties; and
(f)
any other document reasonably requested by the Company that it deems
necessary for the consummation of this transaction.
ARTICLE
VII
CONDITIONS
PRECEDENT
7.1 Conditions Precedent to
Closing. The obligations of the Parties under this Agreement
shall be and are subject to fulfillment, prior to or at the Closing, of each of
the following conditions:
(a) That
each of the representations and warranties of the Parties contained herein shall
be true and correct at the time of the Closing Date as if such representations
and warranties were made at such time except for changes permitted or
contemplated by this Agreement;
(b) That
the Parties shall have performed or complied with all agreements, terms and
conditions required by this Agreement to be performed or complied with by them
prior to or at the time of the Closing;
(c) That
World Orient shall have received, and provided a copy to the Company, an opinion
of each of the Han Kun Law Offices, World Orient’s counsel in the
People’s Republic of China, and Xxxxxxx, Xxxx & Xxxxxxx, World Orient’s
counsel in the British Virgin Islands, substantially in the forms attached
hereto as Exhibit
A;
(d) That
prior to Closing the Company shall have engaged a public relations firm, which
shall conduct two (2) non-Share Exchange related road shows each year for two
(2) years, that is mutually acceptable to the Company and World
Orient;
(e) That
prior to Closing the Company shall have engaged a Company-sponsored equity
research firm that is mutually acceptable to the Company and World Orient;
and
(f) The
Company shall have concluded an equity financing of at least $5 million at the
time of Closing (the “Equity
Financing”).
7.2 Conditions to Obligations of
Shareholders. The
obligations of Shareholders shall be subject to fulfillment prior to or at the
Closing, of each of the following conditions:
13
(a) The
Company shall have received all of the regulatory, shareholder and other third
party consents, permits, approvals and authorizations necessary to consummate
the transactions contemplated by this Agreement;
(b) The
Company shall have complied with Rule 14(f)(1) of the Exchange Act, if required;
and
(c) To
the extent that the liabilities of the Company exceed $50,000 as of the Closing,
the Company shareholders shall have satisfied and paid such excess liabilities
in full.
7.3 Conditions to Obligations of
the Company. The obligations of the Company shall be subject
to fulfillment at or prior to or at the Closing, of each of the following
conditions:
(a) World
Orient and the Shareholders shall have received all of the regulatory,
shareholder and other third party consents, permits, approvals and
authorizations necessary to consummate the transactions contemplated by this
Agreement;
(b) The
Shareholders shall have delivered to the Company the share certificates and duly
executed instruments of transfer and bought and sold notes from the Shareholders
transferring the World Orient Shares to the Company; and
(c) All
liabilities of the Company up to $50,000 shall be paid directly out of the
proceeds of the Equity Financing to the appropriate creditors, which shall
include indebtedness owed to the Company shareholders and fees owing to lawyers,
accountants and similar parties.
ARTICLE
VIII
TERMINATION
8.1 Termination. This
Agreement may be terminated at any time before or, at Closing, by:
(a) The
mutual agreement of the Parties;
(b) Any
party if:
(i) Any
provision of this Agreement applicable to a party shall be materially untrue or
fail to be accomplished; or
(ii) Any
legal proceeding shall have been instituted or shall be imminently threatening
to delay, restrain or prevent the consummation of this Agreement;
(c) Upon
termination of this Agreement for any reason, in accordance with the terms and
conditions set forth in this paragraph, each said party shall bear all costs and
expenses as each party has incurred.
14
ARTICLE
IX
COVENANTS
SUBSEQUENT TO CLOSING
9.1 Registration
Rights. The Company shall file, within sixty (60) days after
the Closing and at its expense, with the U.S. Securities and Exchange Commission
(the “Commission”) a
registration statement (the “Initial Registration
Statement”) covering the resale of Common Stock held by those persons
(and/or their designees) that are shareholders of the Company immediately prior
to the Closing (“Pre-Existing
Shareholders”), provided, however, that the
Company shall not be required to register the Common Stock held by such
shareholders who are affiliates of WestPark (“WestPark
Affiliates”), as specified in Item 9.1 of the
Disclosure Schedule, who shall instead receive registration rights to require
the Company to file a registration statement (the “Second Registration
Statement”) to register such Common Stock within ten (10) days following
the end of the six (6) month period that immediately follows the date on which
the Company files Initial Registration Statement with the
Commission. The Company shall enter into a Registration Rights
Agreement acceptable to the WestPark Affiliates with respect to rights described
in this Section
9.1. In the event the Second Registration Statement is not
timely filed to register the shares held by the WestPark Affiliates, or if the
Second Registration Statement is not timely declared effective by the
Commission, as described in the Registration Rights Agreement, the Company shall
issue to such holders penalty shares (the “Penalty Shares”)
equal to one percent (1%) of the shares on a monthly basis until the Second
Registration Statement is filed with or declared effective by the Commission, as
applicable. However, no Penalty Shares shall be due to the WestPark
Affiliates if the Company is using best efforts to cause the Second Registration
Statement to be filed and declared effective in a timely manner.
9.2 NYSE Alternext
Listing. The Company shall take reasonable efforts to cause
the Company’s securities to be listed on the NYSE Alternext as soon as
practicable after the Closing.
ARTICLE
X
MISCELLANEOUS
10.1 Survival of Representations,
Warranties and Agreements. Each of the Parties hereto is
executing and carrying out the provisions of this Agreement in reliance upon the
representations, warranties and covenants and agreements contained in this
agreement or at the closing of the transactions herein provided for and not upon
any investigation which it might have made or any representations, warranty,
agreement, promise or information, written or oral, made by the other party or
any other person other than as specifically set forth herein. Except
as specifically set forth in this Agreement, representations and warranties and
statements made by a party to in this Agreement or in any document or
certificate delivered pursuant hereto shall not survive the Closing Date, and no
claims made by virtue of such representations, warranties, agreements and
covenants shall be made or commenced by any party hereto from and after the
Closing Date.
15
10.2 Access to Books and
Records. During the course of this transaction through
Closing, each party agrees to make available for inspection all corporate books,
records and assets, and otherwise afford to each other and their respective
representatives, reasonable access to all documentation and other information
concerning the business, financial and legal conditions of each other for the
purpose of conducting a due diligence investigation thereof. Such due
diligence investigation shall be for the purpose of satisfying each party as to
the business, financial and legal condition of each other for the purpose of
determining the desirability of consummating the proposed
transaction. The Parties further agree to keep confidential and not
use for their own benefit, except in accordance with this Agreement any
information or documentation obtained in connection with any such
investigation.
10.3 Further
Assurances. If, at any time after the Closing, the parties
shall consider or be advised that any further deeds, assignments or assurances
in law or that any other things are necessary, desirable or proper to complete
the merger in accordance with the terms of this agreement or to vest, perfect or
confirm, of record or otherwise, the title to any property or rights of the
parties hereto, the Parties agree that their proper officers and directors shall
execute and deliver all such proper deeds, assignments and assurances in law and
do all things necessary, desirable or proper to vest, perfect or confirm title
to such property or rights and otherwise to carry out the purpose of this
Agreement, and that the proper officers and directors the parties are fully
authorized to take any and all such action.
10.4 Notice. All
communications, notices, requests, consents or demands given or required under
this Agreement shall be in writing and shall be deemed to have been duly given
when delivered to, or received by prepaid registered or certified mail or
recognized overnight courier addressed to, or upon receipt of a facsimile sent
to, the party for whom intended, as follows, or to such other address or
facsimile number as may be furnished by such party by notice in the manner
provided herein:
Attention:
If to the
Shareholders and World Orient:
c/o
Zhengzhou Shenyang Technology Limited
Building
28, Huzhu Road
Zhongyuan
District, Zhengzhou
People’s
Republic of China
Attention: Xxxxx
Xx
Fax:
[(__) __________]
With
a copy to:
K&L
Gates LLP
00000
Xxxxx Xxxxxx Xxxx., Xxxxxxx Xxxxx
Xxx
Xxxxxxx, Xxxxxxxxxx 00000
Attn: Xxxxxx
X. Xxxxxxx, Esq.
Fax.:
(000) 000-0000
If to the
Company:
SRKP 18, Inc.
0000 Xxxxxx xx xxx Xxxxx, Xxxxx
000
Xxx Xxxxxxx, XX 00000
Attn: Xxxxxxx Xxxxxxxxx
Fax: (000) 000-0000
16
10.5 Entire
Agreement. This Agreement, the Disclosure Schedules and any
instruments and agreements to be executed pursuant to this Agreement, sets forth
the entire understanding of the Parties hereto with respect to its subject
matter, merges and supersedes all prior and contemporaneous understandings with
respect to its subject matter and may not be waived or modified, in whole or in
part, except by a writing signed by each of the Parties hereto. No
waiver of any provision of this Agreement in any instance shall be deemed to be
a waiver of the same or any other provision in any other
instance. Failure of any party to enforce any provision of this
Agreement shall not be construed as a waiver of its rights under such
provision.
10.6 Successors and
Assigns. This Agreement shall be binding upon, enforceable
against and inure to the benefit of, the parties hereto and their respective
heirs, administrators, executors, personal representatives, successors and
assigns, and nothing herein is intended to confer any right, remedy or benefit
upon any other person. This Agreement may not be assigned by any
party hereto except with the prior written consent of the other parties, which
consent shall not be unreasonably withheld.
10.7 Governing
Law. This Agreement shall in all respects be governed by and
construed in accordance with the laws of the State of Delaware are applicable to
agreements made and fully to be performed in such state, without giving effect
to conflicts of law principles.
10.8 Counterparts. This
Agreement may be executed in multiple counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.
10.9 Construction. Headings
contained in this Agreement are for convenience only and shall not be used in
the interpretation of this Agreement. References herein to Articles,
Sections and Exhibits are to the articles, sections and exhibits, respectively,
of this Agreement. The Disclosure Schedule is hereby incorporated
herein by reference and made a part of this Agreement. As used
herein, the singular includes the plural, and the masculine, feminine and neuter
gender each includes the others where the context so indicates.
10.10 Severability. If
any provision of this Agreement is held to be invalid or unenforceable by a
court of competent jurisdiction, this Agreement shall be interpreted and
enforceable as if such provision were severed or limited, but only to the extent
necessary to render such provision and this Agreement enforceable.
[SIGNATURE PAGE FOLLOWS]
17
IN WITNESS WHEREOF, each of
the parties hereto has executed this Agreement as of the date first set forth
above.
SRKP
18, INC.
|
|
By:
|
/s/ Xxxxxxx Xxxxxxxxx
|
Name:
Xxxxxxx Xxxxxxxxx
|
|
Title:
President
|
|
WORLD
ORIENT UNIVERSAL LIMITED
|
|
By:
|
/s/ Xxxxx Xx
|
Name:
Xxxxx Xx
|
|
[SIGNATURE PAGES FOR SHAREHOLDERS
FOLLOW]
18
WORLD
ORIENT UNIVERSAL LIMITED
SHAREHOLDERS’
SIGNATURE PAGE TO
Dated
December 11, 2008
Among
SRKP 18, Inc., World Orient Universal Limited and
The
Shareholders of World Orient Universal Limited
The
undersigned Shareholder hereby executes and delivers the Share Exchange
Agreement (the “Agreement”) to which
this Signature Page is attached, which, together with all counterparts of the
Agreement and Signature Pages of the other parties named in said Agreement,
shall constitute one and the same document in accordance with the terms of the
Agreement.
/s/
Xxxxxxxx Xx
|
(Signature)
By:
Xxxxxxxx Xx
Title:
Director
|
Richever
Limited
|
(Type
or print name)
|
(Type
or print name as it should appear on certificate, if
different)
|
Address: Xxxxx
000, Xxxxxx Xxxxx X0, Xxxxxxxx Xxxxx, Xx. 1 East Xxxxx An Ave., Beijing
100738, People’s Republic of China
Telephone:
(00 00) 0000 0000
Facsimile:
(00 00) 0000
0000
|
Number
of World Orient Shares Held: 344
WORLD
ORIENT UNIVERSAL LIMITED
SHAREHOLDERS’
SIGNATURE PAGE TO
Dated
December 11, 2008
Among
SRKP 18, Inc., World Orient Universal Limited and
The
Shareholders of World Orient Universal Limited
The undersigned Shareholder hereby
executes and delivers the Share Exchange Agreement (the “Agreement”) to which
this Signature Page is attached, which, together with all counterparts of the
Agreement and Signature Pages of the other parties named in said Agreement,
shall constitute one and the same document in accordance with the terms of the
Agreement.
/s/
Xxxx Xxxx
|
(Signature)
|
Xxxx
Xxxx
|
(Type
or print name)
|
(Type
or print name as it should appear on certificate, if
different)
|
Address: #104
Hailong Garden, Eastern Longjing Road, Nanshan District, Shenzhen, 518000
Guangdong Province, People’s Republic of China
Telephone:
(00) 0000-0000000
Facsimile:
(00)
000-00000000
|
Number
of World Orient Shares Held:
43,508
WORLD
ORIENT UNIVERSAL LIMITED
SHAREHOLDERS’
SIGNATURE PAGE TO
Dated
December 11, 2008
Among
SRKP 18, Inc., World Orient Universal Limited and
The
Shareholders of World Orient Universal Limited
The undersigned Shareholder hereby
executes and delivers the Share Exchange Agreement (the “Agreement”) to which
this Signature Page is attached, which, together with all counterparts of the
Agreement and Signature Pages of the other parties named in said Agreement,
shall constitute one and the same document in accordance with the terms of the
Agreement.
/s/
Xxxxx Xxxxxx Hung Hi
|
(Signature)
By:
Xxxxx Xxxxxx Hung Hi
Title:
Director
|
Easywell
Limited
|
(Type
or print name)
|
(Type
or print name as it should appear on certificate, if
different)
|
Address:_________________________________________________
________________________________________________________
Telephone:
______________________________________________
Facsimile:
_______________________________________________
|
Number
of World Orient Shares Held:
3,074
WORLD
ORIENT UNIVERSAL LIMITED
SHAREHOLDERS’
SIGNATURE PAGE TO
Dated
December 11, 2008
Among
SRKP 18, Inc., World Orient Universal Limited and
The
Shareholders of World Orient Universal Limited
The undersigned Shareholder hereby
executes and delivers the Share Exchange Agreement (the “Agreement”) to which
this Signature Page is attached, which, together with all counterparts of the
Agreement and Signature Pages of the other parties named in said Agreement,
shall constitute one and the same document in accordance with the terms of the
Agreement.
/s/
Xxxxxxx Xxx Xxx Sun
|
(Signature)
By:
Xxxxxxx Xxx Kuk Sun
Title:
Director
|
Starlink
AsiaLimited
|
(Type
or print name)
|
(Type
or print name as it should appear on certificate, if
different)
|
Address:_________________________________________________
________________________________________________________
Telephone:
______________________________________________
Facsimile:
_______________________________________________
|
Number
of World Orient Shares Held: 3,074
EXHIBIT
A
FORMS OF OPINION
LETTERS
5
SCHEDULE
I
SHAREHOLDERS AND COMPANY
SHARES
Name
|
Number of Company Shares
|
|
Xxxx
Xxxx
|
100,000
|
|
Richever
Limited, a company organized in the Seychelles Islands
|
100,000
|
|
Easywell
Limited, a company organized in the British Virgin Islands
|
892,500
|
|
Starlink
Asia Limited, a company organized in the British Virgin
Islands
|
892,500
|
6
SCHEDULE
II
SHAREHOLDERS
AND WORLD ORIENT SHARES
Name
|
Number of World Orient Shares
|
|
Xxxx
Xxxx
|
43,508
|
|
Richever
Limited, a company organized in the Seychelles Islands
|
344
|
|
Easywell
Limited, company organized in the British Virgin Islands
|
3,074
|
|
Starlink
Asia Limited, a company organized in the British Virgin
Islands
|
3,074
|
7
DISCLOSURE
SCHEDULES
ITEM
2.7 – INDEBTEDNESS; CONTRACTS; NO DEFAULTS
As set forth in the Financial
Statements.
ITEM
3.1(b) – SUBSIDIARIES
Subsidiary
|
% Owned
|
|
Global
Asia Universal Limited, a company organized in the British Virgin
Islands
|
100%
owned by World Orient Universal Limited
|
|
EverFair
Technologies Limited, a company organized in Hong Kong
|
100%
owned by Global Asia Universal Limited
|
|
Zhengzhou
Shenyang Technology Company Limited, a company organized in the People’s
Republic of China
|
100%
owned by EverFair Technologies
Limited
|
ITEM
3.3 - CAPITALIZATION
None.
ITEM
3.5 – INDEBTEDNESS; CONTRACTS; NO DEFAULTS
1. Construction
Agreement in Relation to Intelligent System xx X Xxxxxxxx xx Xxxxxx Xxxxx dated
December 17, 2007 by and between ZST and Henan Siqi Technology Investment
Company Limited.
2. Sale
& Purchase Agreement dated July 18, 2008 by and between ZST and Gongyi City
Electricity Supply Company.
3. Secured
Loan Agreement dated July 11, 2008 by and between ZST and Raiffeisen Zentralbank
Sterreich AG Beijing Branch for a principal amount equal to RMB
63,000,000.
4. Receivable
Pledge Agreement dated January 4, 2008 by and between ZST and Raiffeisen
Zentralbank Sterreich AG Beijing Branch for a secured obligation amount equal to
RMB 50,000,000.
5. EverFair
Technologies Limited, a wholly-owned subsidiary of World Orient (“EverFair”), is a
party to the Equity Transfer Agreement dated October 10, 2008 (the “Equity Transfer
Agreement”) pursuant to which EverFair shall make payments to Xxxxx Xx,
Xx Xxxxx, Xxxxx Xxxxxxxx, Sun Hui and Xx Xxxxxx (the “Sellers”) equal to
RMB 12,000,000 (the “Debt”) within three
(3) months following the date of the issuance of the new business license as
contemplated by the Equity Transfer Agreement. Upon the Closing of
the Share Exchange, the Company shall assume the Debt and make the required
payments to the Sellers in accordance with the terms of the Equity Transfer
Agreement.
8
ITEM
3.6 – COMPLIANCE WITH THE LAW
None.
ITEM
3.7 – LITIGATION
None.
ITEM
9.1 – WESTPARK AFFILIATES
Xxxxxxx
Xxxxxxxxx
Xxxxxx
Xxxxxxxxx Trust
Xxxxxx
Xxxxxxxxx Trust
Xxxxxxx
X. Xxxxxxxxxxxx
Xxxxx
XxXxxxxx
Xxxxx
Xxxxx
WestPark
Financial Services, LLC
9
TABLE OF
CONTENTS
Page
|
||
1
|
||
1.1
|
The Share Exchange
|
1
|
1.2
|
Time and Place of Closing
|
2
|
1.3
|
Effective Time
|
2
|
1.4
|
Tax Consequences
|
2
|
ARTICLE
II
|
2
|
|
2.1
|
Due Organization and Qualification; Due
Authorization.
|
2
|
2.2
|
No Conflicts or Defaults
|
3
|
2.3
|
Capitalization
|
3
|
2.4
|
Financial Statements
|
3
|
2.5
|
No Assets or Liabilities
|
4
|
2.6
|
Taxes
|
4
|
2.7
|
Indebtedness; Contracts; No
Defaults
|
4
|
2.8
|
Real Property
|
4
|
2.9
|
Compliance with Law
|
4
|
2.10
|
Permits and Licenses
|
4
|
2.11
|
Litigation
|
5
|
2.12
|
Insurance
|
5
|
2.13
|
Patents; Trademarks and Intellectual Property
Rights
|
5
|
2.14
|
Securities Law Compliance
|
5
|
2.15
|
Conflicts of Interest
|
5
|
ARTICLE
III REPRESENTATIONS AND WARRANTIES OF WORLD ORIENT
|
5
|
|
3.1
|
Due Organization and Qualification; Due
Authorization.
|
5
|
3.2
|
No Conflicts or Defaults
|
6
|
3.3
|
Capitalization
|
6
|
3.4
|
Taxes
|
7
|
3.5
|
Indebtedness; Contracts; No
Defaults
|
7
|
3.6
|
Compliance with Law
|
7
|
3.7
|
Litigation.
|
7
|
3.8
|
Conflicts of Interest
|
8
|
ARTICLE
IV REPRESENTATION AND WARRANTIES OF THE SHAREHOLDERS
|
9
|
|
4.1
|
Title
to Shares
|
9
|
4.2
|
Due
Authorization
|
9
|
4.3
|
Purchase
for Investment.
|
9
|
4.4
|
Investment
Experience
|
10
|
4.5
|
Information
|
10
|
4.6
|
Restricted
Securities
|
10
|
4.7
|
Exempt
Issuance
|
10
|
4.8
|
Conflicts
of Xxxxxxxx
|
00
|
- x
-
XXXXXXX
X XXXXXXXXX
|
00
|
|
5.1
|
Further Assurances
|
11
|
ARTICLE
VI DELIVERIES
|
12
|
|
6.1
|
Items to be delivered to the Shareholders prior to
or at Closing by the Company.
|
12
|
6.2
|
Items to be delivered to the Company prior to or
at Closing by World Orient and the Shareholders.
|
12
|
ARTICLE
VII CONDITIONS PRECEDENT
|
13
|
|
7.1
|
Conditions Precedent to
Closing
|
13
|
7.2
|
Conditions to Obligations of
Shareholders
|
13
|
7.3
|
Conditions to Obligations of the
Company
|
14
|
ARTICLE
VIII TERMINATION
|
14
|
|
8.1
|
Termination
|
14
|
ARTICLE
IX COVENANTS SUBSEQUENT TO CLOSING
|
15
|
|
9.1
|
Registration Rights
|
15
|
9.2
|
NYSE Alternext Listing
|
15
|
ARTICLE
X MISCELLANEOUS
|
15
|
|
10.1
|
Survival of Representations, Warranties and
Agreements
|
15
|
10.2
|
Access to Books and Records
|
16
|
10.3
|
Further Assurances
|
16
|
10.4
|
Notice
|
16
|
10.5
|
Entire Agreement
|
17
|
10.6
|
Successors and Assigns
|
17
|
10.7
|
Governing Law
|
17
|
10.8
|
Counterparts
|
17
|
Construction
|
17
|
|
10.10
|
Severability
|
17
|
- ii
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