EQUITY TRANSFER AGREEMENT
THIS
EQUITY TRANSFER AGREEMENT (the “Agreement”)
is
dated as of March 12, 2008 by and between First Growth Investors, Inc., a
corporation formed under the laws of the State of Nevada, U.S.A. (“First
Growth”),
and
Xx. Xxxxx Xxxxxxxx, a citizen of Japan (“Yamamoto”).
RECITALS
WHEREAS,
Yamamoto owns 100% of the issued and outstanding shares of Bright Stand
International Limited, an exempted company formed under the laws of the British
Virgin Islands (“Bright
Stand”).
WHEREAS,
Bright Stand owns two subsidiaries, a 100% equity ownership in Weifang Yuhe
Poultry Co., Ltd. and a 43.75% equity ownership in Weifang Taihong Feed Co.
Ltd., both companies organized in the People’s Republic of China (the
“PRC”).
The
remaining 56.25% equity ownership of Weifang Taihong Feed Co. Ltd. is owned
by
Weifang Yuhe Poultry Co., Ltd.
WHEREAS,
First Growth is a Nevada corporation which as of the date hereof is a SEC
reporting company trading on OTCBB under the symbol FGIV and has no business
operations.
WHEREAS,
First Growth desires to acquire all of the issued and outstanding shares of
Bright Stand (the “Bright
Stand Interest”),
and
Yamamoto desires to transfer the Bright Stand Interest for 126,857,134 new
shares of common stock in First Growth, which shall have a total outstanding
142,857,134 shares as of the Closing Date.
AGREEMENT
NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein and in reliance upon the representations and warranties hereinafter
set
forth, the parties agree as follows:
I.
TRANSFER OF THE BRIGHT STAND INTEREST AND CONSIDERATION
1.01.
Bright
Stand Interest Being Transferred.
Subject
to the terms and conditions of this Agreement, on the Closing Date, Yamamoto
shall assign, transfer and deliver to First
Growth
the
Bright Stand Interest, free and clear of all mortgages, liens, pledges, security
interests, restrictions, encumbrances or adverse claims of any
nature.
1.02. Consideration.
Subject
to the terms and conditions of this Agreement, and in consideration of the
assignment and delivery of the Bright Stand Interest to First
Growth,
First
Growth
shall on
the Closing Date issue and deliver to Yamamoto and/or his designee(s), and
Yamamoto and/or his designee(s) shall purchase, acquire and accept from
First
Growth,
126,857,134 shares of the common stock of First Growth (the “Consideration”)
which
shall equal 88.8% of the issued and outstanding shares of First Growth on a
fully diluted basis.
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1.03.
Time
and Place of Closing.
The
closing of the transaction contemplated by this Agreement (the “Closing”)
shall
take place at the offices of Xxxxxx Xxxxxx upon the execution of this Agreement
(the “Closing
Date”).
1.04. Method
of Closing.
The
method of closing shall require the parties to satisfy the conditions specified
in Section 5 of this Agreement.
II.
REPRESENTATIONS AND WARRANTIES OF YAMAMOTO
Yamamoto
represents and warrants to First Growth as follows as of the Closing
Date:
2.01.
Organization.
Bright
Stand is a BVI company owned by Yamamoto. Bright Stand is duly organized and
validly existing under the laws of the BVI. Bright Stand’s two subsidiaries,
Weifang Taihong Feed Co. Ltd. and Weifang Yuhe Poultry Co., Ltd, are PRC
companies duly organized, and validly existing under the laws of the
PRC.
2.02. Ownership.
The
Bright Stand Interest is owned legally and beneficially by Yamamoto. Upon
delivery of any certificate or certificates duly assigned, representing the
same
as herein contemplated and/or upon registering of First Growth as the new owner
of the Bright Stand Interest in the share register of Bright Stand, First Growth
will receive good title to such Bright Stand Interest, free and clear of all
liens, security interests, pledges, equities and claims of any kind, voting
trusts, shareholder agreements and other encumbrances. Except for the Bright
Stand Interest, no shares of capital stock or other voting securities of Bright
Stand are issued, reserved for issuance or outstanding. All outstanding shares
of the capital stock of Bright Stand are duly authorized, validly issued, fully
paid and non-assessable and not subject to or issued in violation of any
purchase option, call option, right of first refusal, preemptive right,
subscription right or any similar right under any provision of the applicable
corporate laws of the BVI, Bright Stand’s charter documents or any contract to
which it is a party or otherwise bound. There are no bonds, debentures, notes
or
other indebtedness of Bright Stand or any of its subsidiaries having the right
to vote (or convertible into, or exchangeable for, securities having the right
to vote) on any matters on which holders of Bright Stand common stock or the
common stock of any of its subsidiaries may vote. Except as set forth above,
as
of the date of this Agreement, there are no options, warrants, rights,
convertible or exchangeable securities, “phantom” stock rights, stock
appreciation rights, stock-based performance units, commitments, contracts,
arrangements or undertakings of any kind to which Bright Stand or any of its
subsidiaries is a party or by which any of them is bound (i) obligating Bright
Stand or any of its subsidiaries to issue, deliver or sell, or cause to be
issued, delivered or sold, additional shares of capital stock or other equity
interests in, or any security convertible or exercisable for or exchangeable
into any capital stock of or other equity interest in, Bright Stand or any
of
its subsidiaries, (ii) obligating Bright Stand or any of its subsidiaries to
issue, grant, extend or enter into any such option, warrant, call, right,
security, commitment, contract, arrangement or undertaking, or (iii) giving
any
person the right to receive any economic benefit or right similar to or derived
from the economic benefits and rights occurring to holders of the capital stock
of Bright Stand or of any of its subsidiaries.
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2.03. Financial
Statements and Business Information.
To the
best of Yamamoto’s knowledge, all financial information and business information
provided by Yamamoto regarding the business of Bright Stand and its subsidiaries
is materially accurate and not materially misleading.
2.04. Litigation.
There
is no litigation, proceeding or investigation pending or threatened against
Bright Stand or its subsidiaries materially affecting any of their respective
properties or assets, or any of their officers, directors, or stockholders
or
consultants that might result, either in any case or in the aggregate, in any
material adverse effect in the business, operations, affairs or condition of
Bright Stand or its subsidiaries or any of their respective properties or
assets, or that might call into question the validity of this Agreement, or
any
action taken or to be taken pursuant hereto. For purposes of this Agreement,
“material
adverse effect”
means
any of (i) a material and adverse effect on the legality, validity or
enforceability of this Agreement, (ii) a material and adverse effect on the
results of operations, assets, properties, prospects, business or condition
(financial or otherwise) of the Company and its subsidiaries, taken as a whole,
or (iii) a material and adverse impairment to the Company’s ability to perform
on a timely basis its material obligations under this Agreement.
2.05. Title
to Assets.
Bright
Stand and its subsidiaries have good and marketable title to all of their assets
and properties now carried on their books.
2.06. No
Conflicts; Consents.
The
execution and delivery by Yamamoto of this Agreement does not, and the
consummation of the transactions and compliance with the terms hereof will
not,
conflict with, or result in any violation of or default (with or without notice
or lapse of time, or both) under, or give rise to a right of termination,
cancellation or acceleration of any obligation or to loss of a material benefit
under, or result in the creation of any lien upon any of the properties or
assets of Bright Stand or any of its subsidiaries under, any provision of (i)
Bright Stand’s constituent instruments or the comparable charter or
organizational documents of any of its subsidiaries, (ii) any material contract,
lease, license, indenture, note, bond, agreement, permit, concession, franchise
or other instrument to which Bright Stand or any of its subsidiaries is a party
or by which any of their respective properties or assets is bound, or (iii)
any
material judgment, order or decree or material law applicable to Bright Stand
or
any of its subsidiaries or their respective properties or assets, other than,
in
the case of clauses (ii) and (iii) above, any such items that, individually
or
in the aggregate, have not had and would not reasonably be expected to have
a
material adverse effect. Except for required filings with the Securities and
Exchange Commission (the “SEC”)
and
applicable “Blue Sky” or state securities commissions, no material consent,
approval, license, permit, order or authorization of, or registration,
declaration or filing with, or permit from, any governmental entity is required
to be obtained or made by or with respect to Bright Stand or any subsidiary
in
connection with the execution, delivery and performance of this
Agreement.
2.07. Authority;
Validity.
Yamamoto has full power and authority to enter into this Agreement and to carry
out the transactions contemplated herein. This Agreement constitutes the valid
and binding obligations of Yamamoto, enforceable in accordance with its
terms.
2.08. Restricted
Securities.
Yamamoto understands that the Consideration is characterized as “restricted
securities” under the Securities Act inasmuch as this Agreement contemplates
that, if acquired by Yamamoto pursuant hereto, the Consideration would be
acquired in a transaction not involving a public offering. Yamamoto further
acknowledges that such Consideration may not be resold without registration
under the Securities Act or the existence of an exemption therefrom. Yamamoto
represents that it is familiar with Rule 144 promulgated under the Securities
Act, as presently in effect, and understands the resale limitations imposed
thereby and by the Securities Act.
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2.09.
Accredited
Investor.
Yamamoto is an “accredited investor” within the meaning of Rule 501 under
the Securities Act.
2.10.
The
Subsidiaries: Equity Interests.
(a)
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All
outstanding shares of capital stock or equity investments of each
subsidiary of Bright Stand have been validly issued and are fully
paid and
non-assessable and as of the date of this Agreement are owned by
Bright
Stand free and clear of all liens.
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(b)
|
Except
for its interests in the subsidiaries, Bright Stand does not as of
the
date of this Agreement own, directly or indirectly, any capital stock,
membership interest, partnership interest, joint venture interest
or other
equity interest in any person or
entity.
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2.11.
Taxes.
(a) Bright
Stand and each subsidiary has timely filed, or has caused to be timely filed
on
its behalf, all Tax Returns required to be filed by it, and all such Tax Returns
are true, complete and accurate, except to the extent any failure to file or
any
inaccuracies in any filed Tax Returns, individually or in the aggregate, have
not had and would not reasonably be expected to have a material adverse effect.
All Taxes shown to be due on such Tax Returns, or otherwise owed, have been
timely paid, except to the extent that any failure to pay, individually or
in
the aggregate, has not had and would not reasonably be expected to have a
material adverse effect. There are no unpaid taxes in any material amount
claimed to be due by the taxing authority of any jurisdiction, and the officers
of Bright Stand know of no basis for any such claim.
(b) Bright
Stand’s financial statements reflect an adequate reserve for all Taxes payable
by Bright Stand and its subsidiaries (in addition to any reserve for deferred
Taxes to reflect timing differences between book and Tax items) for all Taxable
periods and portions thereof through the date of such financial statements.
No
deficiency with respect to any Taxes has been proposed, asserted or assessed
against Bright Stand or any subsidiary, and no requests for waivers of the
time
to assess any such Taxes are pending, except to the extent any such deficiency
or request for waiver, individually or in the aggregate, has not had and would
not reasonably be expected to have a material adverse effect.
(c) For
purposes of this Agreement:
“Taxes”
includes all forms of taxation, whenever created or imposed, and whether of
the
British Virgin Islands or the PRC, and whether imposed by a local, municipal,
governmental, state, foreign, federal or other governmental entity, or in
connection with any agreement with respect to Taxes, including all interest,
penalties and additions imposed with respect to such amounts.
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“Tax
Return”
means
all federal, state, local, provincial and foreign Tax returns, declarations,
statements, reports, schedules, forms and information returns and any amended
Tax return relating to Taxes.
2.12. Compliance
With Applicable Laws.
Bright
Stand and its subsidiaries are in compliance with all applicable laws, except
for instances of noncompliance that, individually and in the aggregate, have
not
had and would not reasonably be expected to have a material adverse effect
on
their operations. Neither Bright Stand nor any subsidiary has received any
written communication from a governmental entity that alleges that they are
not
in compliance in any material respect with any applicable law.
2.13. Contracts.
Neither
Bright Stand nor any of its subsidiaries is in violation of or in default under
(nor does there exist any condition which upon the passage of time or the giving
of notice would cause such a violation of or default under) any contract to
which it is a party or by which it or any of its properties or assets is bound,
except for violations or defaults that would not, individually or in the
aggregate, reasonably be expected to result in a material adverse
effect.
2.14. Financial
Statements.
As of
the Closing, the consolidated financial statements of Bright Stand will have
been prepared in accordance with generally accepted accounting principles
applied on a consistent basis throughout the periods indicated, and will fairly
present in all material respects the financial condition and operating results
of Bright Stand and its subsidiaries, as of the dates, and for the periods,
indicated therein. Bright Stand will not have any material liabilities or
obligations, contingent or otherwise, other than (i) liabilities incurred
in the ordinary course of business subsequent to September 30, 2007, and
(ii) obligations under contracts and commitments incurred in the ordinary
course of business and not required under generally accepted accounting
principles to be reflected in the financial statements, which, in both cases,
individually and in the aggregate would not be reasonably expected to result
in
a material adverse effect.
2.15 Absence
Of Certain Changes Or Events.
Except
as disclosed in its financial statements, from September 30, 2007 to the date
of
this Agreement, Bright Stand and its subsidiaries have conducted their business
in the ordinary course, and during such period there has not been:
(a)
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Any
change in the assets, liabilities, financial condition or operating
results of Bright Stand or any of its subsidiaries, except changes
in the
ordinary course of business that have not caused, in the aggregate,
a
material adverse effect;
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(b)
|
Any
damage, destruction or loss, whether or not covered by insurance,
that
would have a material adverse
effect;
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(c)
|
Any
waiver or compromise by Bright Stand or any subsidiary of a valuable
right
or of a material debt owed to it;
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(d)
|
Any
satisfaction or discharge of any lien, claim, or encumbrance or payment
of
any obligation by Bright Stand or any of its subsidiaries, except
in the
ordinary course of business;
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(e)
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Any
material change to a material contract by which Bright Stand or any
of its
subsidiaries or any of its respective assets is bound or
subject;
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(f)
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Any
mortgage, pledge, transfer of a security interest in, or lien, created
by
Bright Stand or any of its subsidiaries, with respect to any of its
material properties or assets, except liens for taxes not yet due
or
payable and liens that arise in the ordinary course of business and
do not
materially impair Bright Stand’s or such subsidiary’s ownership or use of
such property or assets;
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(g)
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Any
loans or guarantees made by Bright Stand or any of its subsidiaries
to or
for the benefit of its employees, officers or directors, or any members
of
their immediate families, other than travel advances and other advances
made in the ordinary course of its
business;
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(h)
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Any
alteration of Bright Stand’s method of accounting or the identity of its
auditors; or
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(i)
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Any
declaration or payment of dividend or distribution of cash or other
property to Yamamoto or any purchase, redemption or agreements to
purchase
or redeem any shares of Bright
Stand.
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2.16. Compliance
With PRC Anti-Corruption Laws.
Neither
Bright Stand, nor any of its subsidiaries, nor, to Yamamoto’s knowledge, any
director, officer, agent, employee or other person acting on behalf of Bright
Stand or any of its subsidiaries has, in the course of its actions for, or
on
behalf of, Bright Stand (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to
political activity; (ii) made any direct or indirect unlawful payment to any
foreign or domestic government official or employee from corporate funds; (iii)
violated or is in violation of any applicable PRC laws; or (iv) made any
unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful
payment to any foreign or domestic government official or employee.
III.
REPRESENTATIONS AND WARRANTIES OF FIRST GROWTH
First
Growth hereby represents and warrants to Yamamoto as follows as of the date
hereof and as of the Closing Date:
3.01. Organization.
3.01(a)
First Growth is a corporation duly organized, validly existing, and in good
standing under the laws of Nevada, has the corporate power and authority to
carry on its business as presently conducted; and is qualified to do business
in
all jurisdictions where the failure to be so qualified would have a material
adverse effect on the business of First Growth.
3.01(b)
First Growth does not own, directly or indirectly, any capital stock, equity
or
interest in any corporation, firm, partnership, joint venture or other
entity.
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3.01(c)
The copies of the Articles of Incorporation of First Growth, as certified by
the
Nevada Secretary of State, and the Bylaws of First Growth currently on file
are
complete and correct copies of the Articles of Incorporation and Bylaws of
First
Growth as amended and in effect on the date hereof.
3.02. Capitalization
of First Growth.
The
authorized capital stock of First Growth immediately prior to giving effect
to
the transactions contemplated hereby consists of 500,000,000 authorized shares
of common stock, with a par value of US$0.001, of which 16,000,000 shares of
common stock are issued and outstanding. At the Closing, 126,857,134 shares
will
be issued to Yamamoto and/or its designees and/or assigns, representing the
Consideration for First Growth’s acquisition of the Bright Stand Interest. All
issued and outstanding shares are duly authorized, validly issued, fully paid
and non-assessable, and at the Closing the Consideration will be duly
authorized, validly issued, fully paid and non-assessable. Except for the above
described shares and the Consideration to be issued to Yamamoto, there are
no
outstanding shares of capital stock or other securities or other equity
interests of First Growth or rights of any kind to acquire such stock, other
securities or other equity interests. No current officer, director, affiliate
or
person known to First Growth to be the record or beneficial owner in excess
of
5% of First Growth’s common stock or any person known to be an associate of any
of the foregoing is a party adverse to First Growth, or has a material interest
adverse to First Growth in any material pending legal proceeding.
3.03. Authority;
Validity.
First
Growth has full power and authority to enter into this Agreement and to carry
out the transactions contemplated herein. The execution and delivery of this
Agreement, the consummation of the transactions contemplated hereby, and the
issuance of First Growth shares in accordance with the terms hereof to Yamamoto,
have been duly authorized and approved by the Board of Directors of First Growth
and no other corporate proceedings on the part of First Growth are necessary
to
authorize this Agreement, the transactions contemplated hereby and the issuance
of the Consideration in accordance with the terms hereof. The Agreement
constitutes the valid and binding obligations of First Growth, enforceable
in
accordance with its terms.
3.04. Liabilities.
First
Growth is not subject to any material undisclosed liability or obligation of
any
nature, whether absolute, accrued, contingent, or otherwise and whether due
or
to become due. As of the Closing, First Growth shall have no liabilities,
contingent or otherwise representing in the aggregate greater than $5,000.
The
business of First Growth has been and is presently being conducted in accordance
with all applicable U.S. federal, state and local governmental laws, rules,
regulations and ordinances. First Growth has all franchises, permits, licenses,
consents and the regulatory authorizations and approvals required by government
necessary for the conduct of its business as now being conducted by
it.
3.05. Litigation.
There
is no claim, dispute, action, litigation, proceeding or investigation pending
or
to the knowledge of First Growth, threatened against First Growth affecting
any
of its properties or assets, or, to the knowledge of First Growth, against
any
officer, director, or stockholder of First Growth that might result, either
in
any case or in the aggregate, in any material adverse change in the business,
operations, affairs or condition of First Growth or any of its properties or
assets, or that might call into question the validity of this Agreement, or
any
action taken or to be taken pursuant hereto.
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3.06. Title
to Assets.
First
Growth has good and marketable title to all of its assets and properties now
carried on its books including those reflected in the balance sheet contained
in
First Growth’s financial statements, free and clear of all liens, claims,
charges, security interests or other encumbrances, except as described in the
balance sheet included in First Growth’s financial statements or on any exhibits
attached hereto.
3.07. Contracts
and Undertakings.
First
Growth has no contracts, agreements, leases, licenses, arrangements, commitments
and other undertakings (collectively “Contracts”)
to
which First Growth or any such subsidiary is a party or by which it or its
property is bound that have not been disclosed in writing to Yamamoto. First
Growth is not in material default, or alleged to be in material default, under
any Contract and, to the knowledge of First Growth, no other party to any
Contract to which First Growth is a party is in default thereunder nor, to
the
knowledge of First Growth, does there exist any condition or event which, after
notice or lapse of time or both, would constitute a default by any party to
any
such Contract.
3.08. No
Conflict.
The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby will not conflict with or result in a breach
of
any term or provision of, or constitute a default under, the Certificate of
Incorporation or Bylaws of First Growth, or any agreement, contract or
instrument to which First Growth is a party or by which it or any of its assets
are bound.
3.09. Accuracy.
Neither
this Agreement nor any other agreement, document, certificate or written or
oral
statement furnished to Yamamoto by or on behalf of First Growth in connection
with the transactions contemplated hereby, contains any untrue statement of
a
material fact or when taken as a whole omits to state a material fact necessary
in order to make the statements contained herein or therein not
misleading.
3.10. Financial
Statements.
The
financial statements of First Growth (the “Financial Statements”) set forth in
its public filings (a) were prepared in accordance with the books and records
of
First Growth; (b) were prepared in accordance with U.S. generally accepted
accounting principles consistently applied; and (c) are accurate and fairly
present First Growth’s financial condition and the results of its operations as
of the relevant dates thereof and for the periods covered thereby.
3.11. Compliance
with Law.
First
Growth has in all material respects complied with and it is now in all material
respects in compliance with, all federal and state laws applicable to First
Growth, including without limitation federal and state securities
laws.
3.12. Reporting
Company Status. First
Growth files reports with the SEC pursuant to Section 15(d) of the Exchange
Act.
First Growth has complied in all material respects with the filing requirements
under Section 15(d) of the Exchange Act and the applicable rules and regulations
of the SEC promulgated thereunder.
3.13. SEC
Documents, Financial Statements.
First
Growth has filed all reports, schedules, forms and statements required to be
filed by it with the SEC pursuant to the reporting requirements of the Exchange
Act (the “SEC Documents”). As of their respective dates, none of the SEC
Documents contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make
the
statements therein, in light of the circumstances under which they were made,
not misleading. The financial statements of First Growth included in the SEC
Documents were prepared in accordance with U.S. generally accepted accounting
principles, consistently applied, during the periods involved, except (i) as
may
be otherwise indicated in such financial statements or the notes thereto, or
(ii) in the case of unaudited interim statements, to the extent they may not
include footnotes or may be condensed or summary statements, and fairly present
in all material respects the financial position of First Growth and results
of
their operations and cash flows for the periods covered thereby, subject, in
the
case of unaudited statements, to normal year-end audit adjustments.
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3.14. Taxes.
All
applicable tax returns required to be filed by First Growth have been prepared
and filed in compliance with all applicable laws and were true, correct and
complete in all material respects when filed, or if not yet filed have been
granted extensions of the filing dates which extensions have not expired, and
all taxes, assessments, fees and other governmental charges upon First Growth
or
upon any of its properties, income or franchises, required to be paid by First
Growth have been paid, or adequate reserves therefor have been set up if any
of
such taxes are being contested in good faith; or if any of such tax returns
have
not been filed or if any such taxes have not been paid or so reserved for,
the
failure to so file or to pay would not in the aggregate have a material adverse
effect. All amounts required to be withheld by First Growth from employees
for
income, social security and other payroll taxes have been collected and withheld
and have either been paid to the appropriate agency, set aside in accounts
for
such purpose or accrued and reserved upon the books and records of First Growth
or the appropriate subsidiary. There were no tax liens on any of First Growth’s
assets that arose in connection with the failure, or alleged failure, to pay
any
taxes except for liens for taxes not yet due and payable. No taxing authority
is
asserting or threatening to assert against First Growth any deficiency or claim
for additional taxes and no tax return of Company is currently under audit
by
any tax authority. The provision for taxes on First Growth balance sheet
adequately reflects all tax liabilities in accordance with U.S. generally
accepted accounting principles.
3.15.
Due Diligence. First
Growth has had the opportunity to perform all due diligence investigations
of
Bright Stand and its subsidiaries and their business as First Growth has deemed
necessary or appropriate and to ask all questions of the officers and directors
of Bright Stand that First Growth wished to ask, and First Growth has received
satisfactory answers to all of its questions regarding Bright Stand and its
subsidiaries and has reviewed sufficient information to allow it to make the
satisfactory evaluation on the merits and risks of the transactions contemplated
by this Agreement.
3.16.
Investment Purpose. First
Growth is acquiring the Bright Stand Interest to be transferred to it under
this
Agreement for investment and not with a view to the sale or distribution
thereof. There are no other agreements purporting to restrict the issuance
or
transfer of the Consideration nor any voting agreements, voting trusts or other
arrangements restricting or affecting the voting of the Consideration. The
issuing procedures for the Consideration shall be in full compliance with all
US
federal and state laws and SEC rules and regulations.
3.17.
Material Adverse Effect. Since
September 30, 2007, First Growth has not experienced or suffered any material
adverse effect. First Growth has not incurred any liabilities, obligations,
claims or losses as of the date of this Agreement, whether liquidated or
unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise.
As of the date of this Agreement, no event or circumstance has occurred or
to
the knowledge of First Growth exists with respect to First Growth or its
business, properties, operations or financial condition, which has not been
disclosed to Yamamoto in writing or has not otherwise been disclosed in First
Growth’s public filings made with the SEC.
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3.18.
Broker. First
Growth has not employed any broker or finder or incurred any liability for
any
brokerage or investment banking fees, commissions, finders’ structuring fees,
financial advisory fees or other similar fees in connection with this
Agreement.
3.19.
Related Party Transactions. There
are
no loans, leases, agreements, contracts, royalty agreements, management
contracts or arrangements or other continuing transactions between (a) First
Growth and (b) any officer, employee, consultant or director of First Growth,
or
any person owning at least 5% of the outstanding capital stock of First Growth
or any member of the immediate family of such officer, employee, consultant,
director or stockholder or any corporation or other entity controlled by such
officer, employee, consultant, director or stockholder, or a member of the
immediate family of such officer, employee, consultant, director or stockholder,
which, in each case, has not been disclosed in writing to Yamamoto.
3.20
SEC Enforcement Actions. First
Growth has not
been
the subject of any enforcement or other
actions which
have questioned its compliance with applicable
rules, including
without limitation SEC
rules
and regulations,
and the
trading rules (OTCBB,
as
applicable).
First
Growth has received no notice that its common stock is not eligible for
quotation.
IV.
SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS
All
representations, warranties and covenants of First Growth and Yamamoto contained
herein shall survive the consummation of the transactions contemplated herein
and remain in full force and effect for a period of two years.
V.
CONDITIONS TO CLOSING
5.01. Conditions
to Obligation of Yamamoto.
The
obligations of Yamamoto under this Agreement shall be subject to each of the
following conditions:
(a)
Representations
and Warranties of First Growth to be True.
The
representations and warranties of First Growth herein contained shall be true
in
all material respects at the Closing with the same effect as though made at
such
time. First Growth shall have performed in all material respects all obligations
and complied in all material respects, to its actual knowledge, with all
covenants and conditions required by this Agreement to be performed or complied
with by it at or prior to the Closing.
(b)
No
Legal Proceedings.
No
injunction or restraining order shall be in effect prohibiting this Agreement,
and no action or proceeding shall have been instituted and, at what would
otherwise have been the Closing, remain pending before the court to restrain
or
prohibit the transactions contemplated by this Agreement.
(c)
Statutory
Requirements.
All
statutory requirements for the valid consummation by First Growth of the
transactions contemplated by this Agreement shall have been fulfilled. All
authorizations, consents and approvals of all governments and other persons
required to be obtained in order to permit consummation by First Growth of
the
transactions contemplated by this Agreement shall have been obtained, including
without limitation board of directors and shareholder approvals required by
Nevada State statutes, as applicable.
10
(d)
Director
Resignation.
Prior to
the Closing, all of the directors and officers of First Growth shall have
submitted their contingent resignations to Xxxxxx Xxxxxx, to be held in escrow
and to become effective at the Closing. All resignations shall contain a
statement that each of the directors and officers release any all claims, for
salaries, benefits or otherwise, against First Growth. Before the resignations
take effect, if required by Yamamoto, the directors shall cause such persons
nominated by Yamamoto to become new directors of First Growth.
(e)
PIPE
Closing.
Xxxx
Capital Partners LLC, as placement agent, shall have raised at least
US$18,000,000 of gross proceeds, for which the relevant parties have entered
into binding agreements, to acquire shares of First Growth, the closing of
which
financing will be held simultaneously with the Closing.
(f)
Trading.
First
Growth’s common stock shall be currently quoted for trading on the OTCBB and
First Growth shall have received no notice that its common shares are not
eligible for quotation.
(g) Delivery
of Documents. First
Growth will have delivered to Yamamoto the documents in form and substance
reasonably satisfactory to counsel to Yamamoto, to the following requirements
that:
(i)
First
Growth is a corporation duly organized, validly existing, and in good standing
in the State of Nevada and is legally qualified to take the necessary corporate
action to carry out this Agreement.
(ii)
Both
First Growth’s authorized capital stock and the issued and outstanding shares
before and after the Closing are set forth in Schedule
1
and
Schedule
2,
and
supported by the relevant certificate of incorporation and a statement for
the
issued and outstanding shares from the transfer agent regarding the issued
and
outstanding shares.
(iii)
The
board
of directors and shareholders (if required) of First Growth have authorized
the
execution, delivery and performance of this Agreement and the related
transactions. First Growth shall deliver all its corporate books, records and
all property to Xxxxxx Xxxxxx at the Closing.
(iv)
Any
further document as may be reasonably requested by counsel to Yamamoto in order
to substantiate any of the representations or warranties of First Growth set
forth herein.
(v)
A
statement that the business and operations of First Growth will have suffered
no
material adverse effect.
(h) Legal
Opinion. First
Growth will have delivered a legal opinion from Nevada lawyers in form and
substance to the satisfaction of counsel to Yamamoto with respect to certain
matters requested by such counsel, including without limitation due
authorization and validity.
11
5.02.
Conditions
to Obligations of First Growth.
The
obligation of First Growth under this Agreement shall be subject to the
following conditions:
(a)
Representations
and Warranties of Yamamoto to be True. The
representations and warranties of Yamamoto herein contained shall be true in
all
material respects as of the Closing, and shall have the same effect as though
made at the Closing; and Yamamoto shall have performed in all material respects
all obligations and complied in all material respects, with all covenants and
conditions required by this Agreement to be performed or complied with by it
prior to the Closing.
(b)
No
Legal Proceedings. No
injunction or restraining order shall be in effect, and no action or proceeding
shall have been instituted and, at what would otherwise have been the Closing,
remain pending before the court to restrain or prohibit the transactions
contemplated by this Agreement.
(c)
Statutory
Requirements.
All
statutory requirements for the valid consummation by Yamamoto of the
transactions contemplated by this Agreement shall have been fulfilled. All
authorizations, consents and approvals of all governments and other persons
required to be obtained in order to permit consummation by Yamamoto of the
transactions contemplated by this Agreement shall have been obtained, including
without limitation Bright Stand’s board of directors approval and relevant
governmental approval.
VI.
MISCELLANEOUS
6.01.
Expenses.
Except
as otherwise provided herein, each party shall bear its own expenses incurred
in
connection with the negotiation and preparation of this Agreement and the
consummation and performance of the transactions contemplated herein. Without
limitation, such expenses shall include the fees and expenses of all attorneys,
brokers, investment bankers, accountants, agents and finders and other
professionals incurred in connection herewith, acting on behalf of such party.
The parties shall indemnify each other against any claims, costs, losses,
expenses or liabilities arising from any claim or commissions, finder's fees
or
other compensation in connection with the contemplated transactions which my
be
asserted by any person based on any agreement or arrangement for payment by
the
other party.
6.02.
Notices.
All
notices, requests and other communications thereunder shall be in writing and
shall be delivered by courier or other means of personal service, including
by
means of a nationally recognized courier service or professional messenger
service, or sent to telex or telecopy or mailed first class, postage prepaid,
by
certified mail, return receipt requested, or by Federal Express or other
reputable overnight delivery service, in all cases, addressed to:
To
Yamamoto:
|
||
c/o
Weifang Yuhe Poultry Co. Ltd.
|
||
000
Xxxxxxx Xxxxxx
|
||
Hanting
District, Weifang,
|
||
Shandong
Province, 261110
|
||
The
People’s Republic of China
|
12
To First Growth: | ||
Xxxxxxx
Xxxxxxxx, President
|
||
00000 Xxxxxxx Xxxx | ||
Xxxxxx,
Xxxxx 00000
|
||
Xxxxxxx
Xxxxxxxx, President
|
All
notices, requests and other communications shall be deemed given on the date
of
actual receipt or delivery as evidenced by written receipt, acknowledgment
or
other evidence of actual receipt or delivery to the address. In case of service
by telecopy, a copy of such notice shall be personally delivered or sent by
registered or certified mail, in the manner set forth above, within three (3)
business days thereafter. Either party hereto may from time to time by notice
in
writing served as set forth above designate a different address or a different
or additional person to which all such notices or communications thereafter
are
to be given.
6.03.
Parties
in Interest.
Except
as otherwise expressly provided herein, all the terms and provisions of this
Agreement shall be binding upon, shall inure to the benefit of and shall be
enforceable by the respective heirs, beneficiaries, personal and legal
representatives, successors and assigns of the parties hereto.
6.04.
Entire
Agreement; Amendments.
This
Agreement contains the entire understanding of the parties with respect to
its
subject matter. There are no restrictions, agreements, promises, warranties,
covenants or undertakings other than those expressly set forth herein or
therein. This Agreement supersedes all prior agreements and understandings
between the parties with respect to its subject matter. This Agreement may
be
amended only by a written instrument duly executed by the parties or their
respective successors or assigns.
6.05.
Counterparts.
This
Agreement may be executed in several counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same
instrument.
6.06.
Resale
Registration.
Within
90 days of the Closing Date, First Growth, as the surviving company owning
Bright Stand and its subsidiaries, will file a registration statement on Form
S-1 or such other form as appropriate for the public resale of the shares issued
in the PIPE offering referred to Section 5.01(e) above and included in the
registration rights agreement entered into between First Growth and each
investor in the PIPE offering shares held by Halter Financial Investments,
L.P.
and Halter Financial Group, L.P. First Growth agrees to use its best efforts
to
have the registration statement declared effective within 180 days of filing
or
5 days of the date that it is informed by the SEC staff that (i) the SEC will
not review the registration statement or (ii) First Growth may request the
acceleration of the effectiveness of the registration statement and First Growth
makes such request.
13
6.07.
Termination
This
Agreement may be terminated upon the following occurrence: (i) by mutual consent
of the parties in writing; (ii) by either Yamamoto or First Growth if there
has
been a material misrepresentation or material breach of any warranty or covenant
by any party that is not cured by the breaching party within 30 days following
notice of such breach or such later date as agreed by the parties; or (iii)
by
Yamamoto if the PIPE offering does not occur by or before March 31, 2008; or
(iv) either Yamamoto or First Growth if the Closing does not occur by or before
March 31, 2008. Following any such termination, Yamamoto and First Growth shall
be free to negotiate with other reverse merger candidates and/or conduct other
fund raising as it/they deem appropriate and all parties hereby acknowledge
and
agree that they have no claims against the other parties for such activities.
6.08.
Governing
Law; Submission to Jurisdiction.
This
Agreement shall be subject to New York law and jurisdiction. Any dispute,
controversy or claim arising from, out of or in connection with this Agreement
may be resolved by any suit, action or proceeding (“Proceedings”)
in
the
courts in the State of New York. The parties irrevocably submit to the
non-exclusive jurisdiction of such courts in connection therewith and waive
any
objection which it may have in relation to the venue of the Proceedings or
any
claim that such Proceedings have been brought in an inconvenient forum. First
Growth hereby waives personal service of process upon it and consents that
any
such service of process may be made by certified or registered mail, return
receipt requested, directed to First Growth at its address last specified for
notices hereunder, and service so made shall be deemed completed five (5) days
after the same shall have been so mailed. Subject as set out above, the
submission to such non-exclusive jurisdiction shall not, and shall not be
construed so as to, limit the right of any party to take Proceedings against
any
of the other parties in whatsoever jurisdictions shall to it seem fit nor shall
the taking of the Proceedings in any one or more jurisdiction preclude the
taking of the Proceedings in any other jurisdiction, whether concurrently or
not.
14
IN
WITNESS WHEREOF, this
Agreement has been duly executed and delivered by the parties hereto as the
date
first above written.
First
Growth Investors, Inc.
|
||
|
|
|
By: | /s/ Xxxxxxx Xxxxxxxx | |
Name: Xxxxxxx Xxxxxxxx |
||
Title: President |
Xxxxx Xxxxxxxx | ||
|
|
|
By: | /s/ Xxxxxxxx Xxxxx | |
|
15
Schedule
1: Capitalization of First Growth Prior to the Closing
Date
See
Attached Certified Stockholders List
16
Schedule
2: Capitalization of First Growth After the Closing
Date
First
|
Last
|
Company
|
Certificate
|
No
of Shares
|
|||||
Total
Shareholders
|
17