SHARE EXCHANGE AGREEMENT BY AND AMONG SATELLITE SECURITY CORPORATION, AIMMS CO., LTD. AND CERTAIN STOCKHOLDERS OF AIMMS CO., LTD. November 30, 2007
Exhibit
2.1
BY
AND AMONG
SATELLITE
SECURITY CORPORATION,
AIMMS
CO., LTD.
AND
CERTAIN
STOCKHOLDERS OF AIMMS CO., LTD.
November
30, 2007
TABLE
OF CONTENTS
Page
|
||
Article
I
|
||
EXCHANGE
OF SECURITIES
|
||
Section
1.1
|
The
Exchange
|
1
|
Section
1.2
|
Exchange
Ratio.
|
1
|
Article
II
|
||
THE
CLOSING
|
||
Section
2.1
|
Closing
Date.
|
2
|
Section
2.2
|
Transactions
at Closing.
|
2
|
Article
III
|
||
REPRESENTATIONS
AND WARRANTIES OF SLTS
|
||
Section
3.1
|
Organization
and Qualification.
|
4
|
Section
3.2
|
Authorization.
|
4
|
Section
3.3
|
Validity
and Effect of Agreement.
|
4
|
Section
3.4
|
No
Conflict.
|
4
|
Section
3.5
|
Required
Filings and Consents.
|
4
|
Section
3.6
|
Capitalization.
|
5
|
Section
3.7
|
Status
of Common Stock.
|
5
|
Section
3.8
|
SEC
Reports and Financial Statements.
|
5
|
Section
3.9
|
Financial
Statements.
|
5
|
Section
3.10
|
No
Undisclosed Assets or Liabilities.
|
6
|
Section
3.11
|
No
Contract Rights or Commitments.
|
6
|
Section
3.12
|
No
Intellectual Property Rights or Infringement.
|
6
|
Section
3.13
|
Litigation.
|
6
|
Section
3.14
|
Taxes.
|
6
|
Section
3.15
|
Registration.
|
6
|
Section
3.16
|
Trading.
|
7
|
Section
3.17
|
Books
and Records.
|
7
|
Section
3.18
|
Insurance.
|
7
|
Section
3.19
|
Compliance.
|
7
|
Section
3.20
|
Absence
of Certain Changes.
|
7
|
Section
3.21
|
Material
Transactions or Affiliations.
|
8
|
Section
3.22
|
Employees.
|
8
|
Section
3.23
|
Previous
Sales of Securities.
|
8
|
Section
3.24
|
Principals
of SLTS.
|
8
|
Section
3.25
|
Tax-Free
Exchange.
|
9
|
Section
3.26
|
Brokers
and Finders.
|
9
|
Section
3.27
|
Disclosure.
|
9
|
Article
IV
|
||
REPRESENTATIONS
AND WARRANTIES OF AIMMS
|
||
Section
4.1
|
Organization
and Qualification.
|
9
|
Section
4.2
|
Authorization;
Validity and Effect of Agreement.
|
9
|
Section
4.3
|
No
Conflict.
|
10
|
Section
4.4
|
Required
Filings and Consents.
|
10
|
Section
4.5
|
Capitalization.
|
10
|
Section
4.6
|
Financial
Statements.
|
10
|
Section
4.7
|
No
Undisclosed Liabilities.
|
10
|
Section
4.8
|
Properties
and Assets.
|
11
|
Section
4.9
|
Litigation.
|
11
|
Section
4.10
|
Taxes.
|
11
|
Section
4.11
|
Compliance.
|
11
|
Section
4.12
|
Absence
of Certain Changes.
|
11
|
Section
4.13
|
Brokers
and Finders.
|
12
|
Section
4.14
|
Intellectual
Property Rights.
|
12
|
Section
4.15
|
Transactions
or Affiliations.
|
12
|
Section
4.16
|
Employees.
|
12
|
Section
4.17
|
Material
Contracts.
|
13
|
Section
4.18
|
Principals
of AIMMS.
|
13
|
Section
4.19
|
Disclosure.
|
13
|
|
||
Article
V
|
||
REPRESENTATIONS
AND WARRANTIES OF EACH SELLER
|
||
Section
5.1
|
Authority
and Validity.
|
14
|
Section
5.2
|
Validity.
|
14
|
Section
5.3
|
No
Breach or Violation.
|
14
|
Section
5.4
|
Consents
and Approvals.
|
14
|
Section
5.5
|
Title.
|
14
|
Section
5.6
|
Investor
Status.
|
14
|
Section
5.7
|
No
Government Review.
|
14
|
Section
5.8
|
Investment
Intent.
|
15
|
Section
5.9
|
Restrictions
on Transfer.
|
15
|
Section
5.10
|
Informed
Investment.
|
15
|
Section
5.11
|
Access
to Information.
|
15
|
Section
5.12
|
Reliance
on Representations.
|
15
|
Section
5.13
|
No
General Solicitation.
|
16
|
Section
5.14
|
Legends.
|
16
|
Section
5.15
|
Placement
and Finder’s Fees.
|
16
|
Section
5.16
|
Disclosure.
|
16
|
Article
VI
|
||
CERTAIN
COVENANTS
|
||
Section
6.1
|
Conduct
of Business by SLTS.
|
17
|
ii
Section
6.2
|
Access
to Information.
|
17
|
Section
6.3
|
Confidentiality;
No Solicitation.
|
17
|
Section
6.4
|
Further
Assurances.
|
18
|
Section
6.5
|
Public
Announcements.
|
18
|
Section
6.6
|
Notification
of Certain Matters.
|
18
|
Section
6.7
|
Financial
Statements.
|
18
|
Section
6.8
|
Waiver
of Claims.
|
18
|
Section
6.9
|
Release
by Directors; Appointment of Directors.
|
19
|
Section
6.10
|
Cooperation
of SLTS.
|
19
|
|
||
Article
VII
|
||
CONDITIONS
TO CONSUMMATION OF THE EXCHANGE
|
||
Section
7.1
|
Conditions
to Obligations of AIMMS and Sellers.
|
19
|
Section
7.2
|
Conditions
to Obligations of SLTS.
|
20
|
Article
VIII
|
||
INDEMNIFICATION
|
||
Section
8.1
|
Indemnification
between the Parties.
|
20
|
Section
8.2
|
Indemnification
Procedures for Third Party Claims.
|
22
|
Section
8.3
|
Indemnification
Procedures for Non-Third Party Claims.
|
23
|
Section
8.4
|
Limitations
on Indemnification.
|
23
|
Article
IX
|
||
TERMINATION
|
||
Section
9.1
|
Termination.
|
23
|
Section
9.2
|
Procedure
and Effect of Termination.
|
24
|
Article
X
|
||
MISCELLANEOUS
|
||
Section
10.1
|
Entire
Agreement.
|
24
|
Section
10.2
|
Amendment
and Modifications.
|
24
|
Section
10.3
|
Extensions
and Waivers.
|
24
|
Section
10.4
|
Successors
and Assigns.
|
25
|
Section
10.5
|
Survival
of Representations, Warranties and Covenants.
|
25
|
Section
10.6
|
Headings;
Definitions.
|
25
|
Section
10.7
|
Severability.
|
25
|
Section
10.8
|
Specific
Performance.
|
25
|
Section
10.9
|
Notices.
|
25
|
Section
10.10
|
Governing
Law.
|
26
|
Section
10.11
|
Consent
to Jurisdiction.
|
26
|
Section
10.12
|
Expenses.
|
26
|
Section
10.13
|
Counterparts.
|
26
|
Section
10.14
|
Certain
Definitions.
|
27
|
iii
EXHIBITS
AND SCHEDULES
Schedule
I
|
Schedule
of AIMMS Shares to be exchanged for SLTS Common
Stock
|
Exhibit
A
|
Form
of SLTS Officer and Director
Release
|
Exhibit
B
|
Form
of Share Assignment
|
Exhibit
C
|
Investor
Questionnaire
|
Schedule
5.6
|
List
of Accredited Investors
|
iv
THIS
SHARE EXCHANGE AGREEMENT (the “Agreement”), is made and entered
into as of November 30, 2007, by and among Satellite Security Corporation,
a
Nevada corporation (“SLTS”), AIMMS Co., Ltd., a Korean
corporation (“AIMMS”), and the stockholders of AIMMS set forth
on the signature pages to this Agreement (collectively, the
“Sellers” and individually, a “Seller”) with
respect to the following facts:
RECITALS
A. Sellers
own all of the issued and outstanding shares of common stock, KRW500 par value,
of AIMMS (the “AIMMS Shares”), in the denominations as set
forth opposite their respective names on Schedule I.
B. SLTS
desires to acquire from Sellers, and Sellers desire to sell and transfer to
SLTS, all of the AIMMS Shares owned by Sellers on the Closing Date in exchange
for 50 million shares of common stock, par value $0.001 per share, of SLTS
(“Common Stock”) to be distributed at a ratio of 26.85 shares
of Common Stock for every one share of AIMMS common stock (the “Exchange
Ratio”) owned by Sellers (collectively, the
“Exchange”).
C. For
the clarification purpose, the Exchange is being conducted based on the price
of
210 Korean won (equivalent to about US$0.23) per one share of AIMMS common
stock
and 8.8 Korean won (equivalent to about US$0.01) per one share of Common Stock
as determined in accordance with the analysis and evaluation of the value of
common stocks of AIMMS and SLTS in the share valuation report prepared and
issued by PricewaterhouseCoopers Korea (also known as Samil
PricewaterhouseCoopers) in November 2007.
NOW,
THEREFORE, in consideration of the foregoing premises and
representations, warranties, covenants and agreements contained herein, and
intending to be legally bound hereby, the parties agree as follows:
ARTICLE
I
EXCHANGE
OF SECURITIES
Section
1.1 The
Exchange On the terms and subject to the
conditions of this Agreement, on the Closing Date SLTS shall issue and deliver
to each of the Sellers owning AIMMS Shares such number of shares of Common
Stock
as is set forth opposite such Seller’s name on Schedule I, subject to
adjustment as set forth in Section 1.2, and each such Seller shall sell,
transfer and deliver to SLTS, the number of issued and outstanding AIMMS Shares
set forth opposite such Seller’s name on Schedule I along with a duly
executed share assignment endorsed in favor of SLTS.
Section
1.2 Exchange
Ratio.
(a)
Based on the outstanding capital stock of SLTS and
AIMMS as of the date hereof, the former stockholders of AIMMS would own an
aggregate of 50,000,000 shares of Common Stock and all of the current
stockholders of SLTS would own an aggregate of 2,222,034 shares of Common Stock
immediately after the Closing.
(b) If
between the date of this Agreement and the Closing Date, there shall be any
change in the number of shares of outstanding capital stock of either SLTS
or
AIMMS, the Exchange Ratio shall be adjusted such that immediately following
the
Closing the aggregate number of shares of Common Stock issued to each represents
the percentage ownership set forth above.
ARTICLE
II
THE
CLOSING
Section
2.1 Closing
Date. The closing of the Exchange and the other
transactions contemplated by this Agreement (the “Closing”)
shall take place at the offices of Xxxxx Xxxxxx LLP, 000 Xxxx Xxxxxxxx, Xxxxx
000, Xxx Xxxxx, XX 00000 at 10:00 a.m. on December 15, 2007, or at such other
location, date and time as SLTS and AIMMS may agree. The time and
date upon which the Closing actually occurs being referred to herein as the
“Closing Date”).
Section
2.2
Transactions at
Closing. At the Closing, the following
transactions shall take place, which transactions shall be deemed as having
taken place simultaneously and no transaction shall be deemed to have been
completed or any document delivered until all such transactions have been
completed and all required documents delivered:
(a)
SLTS shall deliver to AIMMS, as agent for Sellers, the
following documents:
(i)
Validly executed stock certificates corresponding to the
Common Stock issued in the name of the Sellers in the amounts set forth in
Schedule I;
(ii)
Instructions directing its transfer agent to register
(i) the allotment of the Common Stock to the Sellers in the stockholders ledger
of SLTS;
(iii) True
copies of all consents and waivers obtained by SLTS, in accordance with the
provisions of Section 7.1 below;
(iv) Certificate
of good standing from the Secretary of State of the State of Nevada, dated
at or
about the Closing Date, to the effect that SLTS is in good standing under the
laws of said state;
(v)
Certified copy of the certificate of incorporation of
SLTS, as certified by the Secretary of State of the State of Nevada at or about
the Closing Date;
(vi) Secretary’s
certificate duly executed by SLTS’s secretary attaching and attesting to the
accuracy of: (a) the bylaws of SLTS, (b) the resolutions of SLTS’s board of
directors issuing and allotting the Common Stock to the Sellers subject to
the
provisions hereof, approving the transactions contemplated hereby, including
the
Exchange, and (C) an incumbency certificate signed by all of the executive
officers of SLTS dated at or about the Closing Date;
2
(vii) An
officer’s certificate duly executed by SLTS’s chief executive officer to the
effect that the conditions set forth in Section 7.1(a) have been satisfied,
dated as of the Closing Date;
(viii) Releases,
substantially in the form attached hereto as Exhibit A
hereto from each of the officers and directors of SLTS;
(ix) All
corporate books and records of SLTS; and
(x)
Such other documents and instruments as AIMMS and/or the Sellers may reasonably
request.
(b) AIMMS
shall deliver or cause to be delivered the following documents to SLTS and/or
shall take the following actions:
(i)
A certificate duly executed by AIMMS's representative director certifying that
none of the AIMMS Shares are represented by a share certificate or any other
document evidencing ownership;
(ii)
Register 100% of the AIMMS Shares in the name of SLTS in the stockholders
register of AIMMS;
(iii) Certificate
of corporate register from the Seoul Central District Court, dated at or about
the Closing Date, to the effect that AIMMS is in good standing under the laws
of
Korea;
(iv) Certified
copy of the Articles of Incorporation of AIMMS, as amended to date, certified
by
a public notary, dated at or about the Closing Date;
(v)
Certificate duly executed by AIMMS’s representative director attaching and
attesting to the accuracy of: (a) the bylaws of AIMMS, (b) the resolutions
of
AIMMS board of directors, approving the transactions contemplated hereby,
including the Exchange, and (c) an incumbency certificate signed by all of
the
executive directors and a statutory auditor of AIMMS dated at or about the
Closing Date; and
(vi) An
officer’s certificate duly executed by the representative director of AIMMS to
the effect that the conditions set forth in Section 7.2(a) have been satisfied,
dated as of the Closing Date.
(c) The
Sellers shall deliver to SLTS, duly executed share assignments in the form
attached hereto as Exhibit B effecting the immediate and
unconditional sale, assignment and irrevocable transfer of AIMMS Shares to
SLTS,
free and clear of any Liens, or any other third party rights of any kind and
nature, whether voluntarily incurred or arising by operation of
law.
3
ARTICLE
III
REPRESENTATIONS
AND WARRANTIES OF SLTS
SLTS
hereby makes the following representations and warranties to AIMMS and each
Seller:
Section
3.1
Organization and
Qualification. SLTS is duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization, with the corporate power and authority to own and operate its
business as presently conducted, except where the failure to be or have any
of
the foregoing would not have a Material Adverse Effect. SLTS is duly
qualified as a foreign corporation to do business and is in good standing in
each jurisdiction where the character of its properties owned or held under
lease or the nature of their activities makes such qualification necessary,
except for such failures to be so qualified or in good standing as would not
have a Material Adverse Effect. SLTS has no subsidiaries and is not a
participant in any joint venture, partnership, or similar
arrangement.
Section
3.2
Authorization. SLTS
has the requisite corporate power and authority to execute, deliver and perform
its obligations under this Agreement and to consummate the
Exchange.
Section
3.3 Validity
and Effect of Agreement. This Agreement has been
duly and validly executed and delivered by SLTS and, assuming that it has been
duly authorized, executed and delivered by the other parties hereto, constitutes
a legal, valid and binding obligation of SLTS, in accordance with its terms
except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting enforcement of
creditors’ rights generally.
Section
3.4 No
Conflict. Neither the execution and delivery of
this Agreement by SLTS nor the performance by SLTS of its obligations hereunder,
nor the consummation of the Exchange, will: (i) conflict with the certificate
of
incorporation or bylaws of SLTS; (ii) violate any statute, law, ordinance,
rule
or regulation, applicable to SLTS or any of the properties or assets of SLTS;
or
(iii) violate, breach, be in conflict with or constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under,
or permit the termination of any provision of, or result in the termination
of,
the acceleration of the maturity of, or the acceleration of the performance
of
any obligation of SLTS, or result in the creation or imposition of any Lien
upon
any properties, assets or business of SLTS under, any Contract or any order,
judgment or decree to which SLTS is a party or by which it or any of its assets
or properties is bound or encumbered except, in the case of clauses (ii) and
(iii), for such violations, breaches, conflicts, defaults or other occurrences
which, individually or in the aggregate, would not have a Material Adverse
Effect on its obligation to perform its covenants under this
Agreement.
Section
3.5 Required
Filings and Consents. The execution and delivery
of this Agreement by SLTS does not, and the performance of this Agreement by
SLTS will not, require any consent, approval, authorization or permit of, or
filing with or notification to, Governmental Authority with respect to SLTS
except: (i) compliance with applicable requirements of the Securities Act,
the
Exchange Act and state securities laws (“Blue Sky Laws”); and (ii) where the
failure to obtain such consents, approvals, authorizations or permits, or to
make such filings or notifications would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on SLTS, or would
not
prevent or materially delay consummation of the Exchange or otherwise prevent
the parties hereto from performing their respective obligations under this
Agreement.
4
Section
3.6
Capitalization. The
authorized capital stock of SLTS consists of 250,000,000 shares of Common Stock,
par value $0.001 per share, of which 2,222,034 shares are issued and
outstanding, and 10,000,000 shares of preferred stock, par value $0.001 per
share, none of which are issued and outstanding. Except for the
transactions contemplated by this Agreement, there are no other share capital,
preemptive rights, convertible securities, outstanding warrants, options or
other rights to subscribe for, purchase or acquire from SLTS any shares of
capital stock of SLTS and there are no contracts or commitments providing for
the issuance of, or the granting of rights to acquire, any shares of capital
stock of SLTS or under which SLTS is, or may become, obligated to issue any
of
its securities. All shares of capital stock of SLTS outstanding as of
the date of this Agreement have been duly authorized and validly issued, are
fully paid and nonassessable, and are free of preemptive rights. As
of the Closing Date (as defined herein), there will be no more than 2,222,034
shares of Common Stock issued or outstanding prior to the Exchange.
Section
3.7 Status of
Common Stock. The Common Stock, when issued and
allotted at the Closing in exchange for AIMMS Shares, will be duly authorized,
validly issued, fully paid, nonassessable, and free of any preemptive rights,
will be issued in compliance with all applicable laws concerning the issuance
of
securities, and will have the rights, preferences, privileges, and restrictions
set forth in SLTS’s charter and bylaws, and will be free and clear of any Liens
of any kind and duly registered in the name of the Sellers, in SLTS’s
stockholders ledger.
Section
3.8 SEC
Reports and Financial Statements. SLTS has timely
filed with the SEC all forms, reports, notices, schedules, statements and other
documents and instruments required to be filed by it under any applicable law,
and has heretofore made available (or promptly following filing will make
available) to AIMMS true and complete copies of, all such forms, reports,
notices, schedules, statements and other documents and instruments required
to
be filed by it under the Exchange Act or the Securities Act (the “SLTS SEC
Documents”). As of their respective dates or, if amended, as of the
date of the last such amendment, the SLTS SEC Documents, including any financial
statements or schedules included therein (i) did not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements made therein, in
light of the circumstances under which they were made, not misleading, (ii)
were
complete and accurate in all material respects, and (iii) complied in all
material respects with the applicable requirements of the Exchange Act and
the
Securities Act, as the case may be, and the applicable rules and regulations
of
the SEC thereunder.
Section
3.9 Financial
Statements. Each of the financial statements (the
“SLTS Financial Statements”) included in the SLTS SEC Documents including but
not limited to the audited financial statements for the years ended December
31,
2006 and 2005 and the unaudited financial statements for the six (6) month
period ended June 30, 2007 have been filed in accordance with any applicable
law
and prepared from, and are in accordance with, the books and records of SLTS,
comply in all material respects with applicable accounting requirements and
with
the published rules and regulations of the SEC with respect thereto, have been
prepared in accordance with GAAP applied on a consistent basis during the
periods involved (except as may be indicated in the notes thereto) and fairly
present the financial positions and the results of operations and cash flows
of
SLTS as of the dates thereof or for the periods presented therein (subject,
in
the case of unaudited statements, to normal year-end audit adjustments not
material in amount).
5
Section
3.10 No Undisclosed
Assets or Liabilities. Except as disclosed in the
SLTS Financial Statements, SLTS does not have any liabilities, indebtedness
or
obligations, whether known or unknown, absolute, accrued, contingent or
otherwise, and whether due or to become due (collectively, “Liabilities”), and,
there is no existing condition, situation or set of circumstances that could
reasonably be expected to result in such a Liability, including without
limitation any liabilities for foreign, federal, state, local or other taxes
(including deficiencies, interest and penalties). As of the Closing
Date, SLTS shall have no properties or assets of any kind, whether real,
personal or intangible and whether owned or leased (other than cash, cash
equivalents or marketable securities) and no Liabilities.
Section
3.11 No Contract
Rights or Commitments. On the Closing Date, there
will not be any Contract to which SLTS is a party or by which any of its assets
or properties are bound.
Section
3.12 No Intellectual
Property Rights or Infringement. SLTS does not
own, has not obtained the right to use, and has not violated nor otherwise
trespassed upon any patents, trademarks, service marks, trade names, copyrights,
and applications, licenses and rights with respect to the foregoing, and/or
any
trade secrets, including know-how, inventions, designs, processes, works of
authorship, computer programs and/or technical data and/or
information.
Section
3.13 Litigation. There
is no Action pending or threatened against SLTS that, individually or in the
aggregate, directly or indirectly, would be reasonably likely to have a Material
Adverse Effect, nor is there any outstanding judgment, decree or injunction,
in
each case against SLTS, that, individually or in the aggregate, has or would
be
reasonably likely to have a Material Adverse Effect.
Section
3.14 Taxes. SLTS
has filed (or has had timely filed on its behalf) with the appropriate tax
authorities all tax returns required to be filed by it or on behalf of it,
and
each such tax return was complete and accurate in all material respects, and
SLTS has timely paid (or has had paid on its behalf) all material Taxes due
and
owing by it, regardless of whether required to be shown or reported on a tax
return, including Taxes required to be withheld by it. No deficiency
for a material Tax has been asserted in writing or otherwise, to SLTS’s
Knowledge, against SLTS or with respect to any of its assets, except for
asserted deficiencies that either (i) have been resolved and paid in full or
(ii) are being contested in good faith. There are no material Liens
for Taxes upon SLTS’s assets.
Section
3.15 Registration. No
order revoking the registration of SLTS or the Common Stock under the Exchange
Act has been issued by any court, securities commission or regulatory authority
in the United States and no proceedings for such purpose are pending or, to
the
Knowledge of SLTS, after reasonable inquiry, threatened.
6
Section
3.16 Trading. The
Common Stock is traded on the OTC Bulletin Board under the symbol
“SLTS”. SLTS has not received any notice of de-registration, and SLTS
will take no action to suspend or terminate trading in the Common Stock on
the
OTC Bulletin Board.
Section
3.17 Books and
Records. The books and records, financial and
others, of SLTS are in all material respects complete and correct and have
been
maintained in accordance with good business accounting practices.
Section
3.18 Insurance. SLTS
has no insurable properties and SLTS does not maintain any insurance covering
its assets, business, equipment, properties, operations, employees, officers,
or
directors. To SLTS’s knowledge since SLTS’s inception there has not
been any damage, destruction or loss, which could have been deemed as an
“Insurance Event”.
Section
3.19 Compliance. SLTS
is in compliance with all foreign, federal, state and local laws and regulations
of any Governmental Authority, except to the extent that failure to comply
would
not, individually or in the aggregate, have a Material Adverse
Effect. SLTS has not received any notice asserting a failure, or
possible failure, to comply with any such law or regulation, the subject of
which notice has not been resolved as required thereby or otherwise to the
satisfaction of the party sending the notice, except for such failure as would
not, individually or in the aggregate, have a Material Adverse
Effect. SLTS does not, and is not require to, hold any permits,
licenses or franchises from Governmental Authorities.
Section
3.20 Absence of
Certain Changes. Since June 30, 2007, except as
described in the SLTS SEC Documents or as expressly permitted or required by
this Agreement or with the consent of AIMMS, SLTS has not:
(a)
sold or otherwise issued any shares of capital
stock;
(b)
acquired any assets or incurred any Liabilities;
(c)
amended its certificate of incorporation or bylaws;
(d)
waived or released any rights or claims of value which in the aggregate are
extraordinary or material considering the business of SLTS;
(e)
made any material change in its method of management, operation or
accounting;
(f)
increased the compensation payable or made any accrual or arrangement for
or payment of bonuses or special compensation of any kind or any severance
or
termination pay to any present or former officer or employee;
(g)
granted or agreed to grant any options, warrants or other rights for its stocks,
bonds or other corporate securities calling for the issuance thereof, which
option, warrant or other right has not been cancelled as of the Closing
Date;
7
(h)
borrowed or agreed to borrow any funds or incurred or become subject
to, any material obligation or liability (absolute or contingent) except
liabilities incurred in the ordinary course of business;
(i)
become subject to any law or regulation which materially and adversely affects,
or in the future may adversely affect, the business, operations, properties,
assets or condition of SLTS or become subject to any change or development
in,
or effect on, SLTS that has or could reasonably be expected to have a Material
Adverse Effect; or
(j)
entered into any agreement to take any action described in clauses
(a) through (i) above.
Section
3.21 Material
Transactions or Affiliations. Except as disclosed
in the SLTS SEC Documents, there is no contract, agreement or arrangement
between SLTS and any person who was, at the time of such contract, agreement
or
arrangement an officer, director or person owning of record, or known by SLTS
to
own beneficially, five percent or more of the issued and outstanding Common
Stock and which is to be performed in whole or in part after the date
hereof. SLTS has no commitment, whether written or oral, to lend any
funds to, borrow any money from or enter into any other material transactions
with, any such affiliated person.
Section
3.22 Employees. SLTS
has no employees other its sole officer and director. SLTS has no
liabilities and/or debts towards any such officers and
directors. SLTS has no agreement, obligation or commitment with
respect to the election of any individual or individuals to SLTS’s board of
directors.
Section
3.23 Previous Sales
of Securities. Since inception, SLTS has sold
Common Stock to investors only in reliance upon applicable exemptions from
the
registration requirements under any applicable law including the laws of the
United States and any applicable states and all such sales were made in
accordance with the laws of said jurisdictions. SLTS has not granted
or agreed to grant any registration rights, including piggyback rights, to
any
Person or entity.
Section
3.24 Principals of
SLTS. During the past five years, no officer or
director of SLTS has been:
(a)
the subject of any bankruptcy petition filed by or
against any business of which such person was a general partner or executive
officer either at the time of the bankruptcy or within two years prior to that
time;
(b)
the subject of any conviction in a criminal proceeding
or being subject to a pending criminal proceeding (excluding traffic violations
and other minor offenses);
(c)
the subject of any order, judgment, or
decree, not subsequently reversed, suspended or vacated, of any court of
competent jurisdiction, permanently or temporarily enjoining, barring,
suspending or otherwise limiting his involvement in any type of business,
securities or banking activities; or
8
(d)
found by a court of competent jurisdiction (in a civil
action), the Commission or the Commodity Futures Trading Commission to have
violated a federal or state securities or commodities law, and the judgment
has
not been reversed, suspended, or vacated.
Section
3.25 Tax-Free
Exchange. SLTS has not taken any action, nor does
SLTS know of any fact, that is reasonably likely to prevent the Exchange from
qualifying as a “reorganization” within the meaning of Section 351 or 368 of the
Code.
Section
3.26 Brokers and
Finders. Neither SLTS, nor any of its officers,
directors, employees or managers, has employed any broker, finder, advisor
or
consultant, or incurred any liability for any investment banking fees, brokerage
fees, commissions or finders’ fees, advisory fees or consulting fees in
connection with the Exchange for which SLTS has or could have any
liability.
Section
3.27 Disclosure. As
of the Closing Date, there is no known material fact or information relating
to
the business, condition (financial or otherwise), affairs, operations or assets
of SLTS and/or its subsidiaries that has not been disclosed in writing to AIMMS
and/or Sellers by SLTS. No representation or warranty of SLTS in this
Agreement or any statement or document delivered in connection herewith or
therewith, contained or will contain any untrue statement of a material fact
or
fail to state any material fact necessary in order to make the statements made,
in light of the circumstances under which they were made, not
misleading.
ARTICLE
IV
REPRESENTATIONS
AND WARRANTIES OF AIMMS
AIMMS
hereby makes the following representations and warranties to SLTS:
Section
4.1
Organization and Qualification. AIMMS
is duly organized and validly existing under the laws of its jurisdiction of
organization, with the corporate power and authority to own and operate its
business as presently conducted, except where the failure to be or have any
of
the foregoing would not have a Material Adverse Effect. AIMMS is duly
qualified as a foreign corporation to do business in each jurisdiction where
the
character of its properties owned or held under lease or the nature of its
activities makes such qualification necessary, except for such failures to
be so
qualified as would not have a Material Adverse Effect. AIMMS has no
subsidiaries.
Section
4.2
Authorization; Validity and Effect of
Agreement. AIMMS has the requisite corporate
power and authority to execute, deliver and perform its obligations under this
Agreement and to consummate the Exchange. This Agreement has been
duly and validly executed and delivered by AIMMS and, assuming that it has
been
duly authorized, executed and delivered by the other parties hereto, constitutes
a legal, valid and binding obligation of AIMMS, in accordance with its terms
except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting enforcement of
creditors’ rights generally.
9
Section
4.3 No
Conflict. Neither the execution and delivery of
this Agreement by AIMMS nor the performance by AIMMS of its obligations
hereunder, nor the consummation of the Exchange, will: (i) conflict with AIMMS’s
Articles of Incorporation; (ii) violate any statute, law, ordinance, rule or
regulation, applicable to AIMMS or any of its properties or assets; or (iii)
violate, breach, be in conflict with or constitute a default (or an event which,
with notice or lapse of time or both, would constitute a default) under, or
permit the termination of any provision of, or result in the termination of,
the
acceleration of the maturity of, or the acceleration of the performance of
any
obligation of AIMMS, or result in the creation or imposition of any Lien upon
any properties, assets or business of AIMMS under, any Material Contract or
any
order, judgment or decree to which AIMMS is a party or by which it or any of
its
assets or properties is bound or encumbered except, in the case of clauses
(ii)
or (iii), for such violations, breaches, conflicts, defaults or other
occurrences which, individually or in the aggregate, would not have a Material
Adverse Effect on its obligation to perform its covenants under this
Agreement.
Section
4.4 Required
Filings and Consents. The execution and delivery
of this Agreement by AIMMS do not, and the performance of this Agreement by
AIMMS will not require any consent, approval, authorization or permit of, or
filing with or notification to, any Governmental Authority, with respect to
AIMMS, except where the failure to obtain such consents, approvals,
authorizations or permits, or to make such filings or notifications would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on AIMMS, or materially delay consummation of the Exchange or
otherwise prevent the parties hereto from performing their obligations under
this Agreement.
Section
4.5
Capitalization. The
authorized capital stock of AIMMS is 16,000,000 shares of common stock, KRW500
par value, of which 1,862,000 shares are issued and outstanding. All
AIMMS Shares outstanding as of the date of this Agreement have been duly
authorized and validly issued, are fully paid and nonassessable, and are free
of
preemptive rights. No share of outstanding capital stock is
represented by a share certificate or other document evidencing ownership,
and
no such certificate or ownership is necessary for an outstanding share of
capital stock to be deemed duly authorized, validly issued, fully paid or
nonassessable.
Section
4.6 Financial
Statements. AIMMS has previously furnished to
SLTS true and complete copies of the audited interim copies of the consolidated
balance sheet of AIMMS for the six month period ended August 31, 2007 together
with the related statements of operations, stockholders equity and cash flows
for such period (all of such financial statements of AIMMS collectively, the
“AIMMS Financial Statements”). The AIMMS Financial Statements
(including the notes thereto) present fairly in all material respects the
financial position and results of operations and cash flows of AIMMS at the
date
or for the period set forth therein, in each case in accordance with GAAP
applied on a consistent basis throughout the periods involved (except as
otherwise indicated therein). The AIMMS Financial Statements have
been prepared from and in accordance with the books and records of
AIMMS.
Section
4.7 No
Undisclosed Liabilities. Except as disclosed in
the AIMMS Financial Statements, AIMMS has no material liabilities, indebtedness
or obligations, except those that have been incurred in the ordinary course
of
business, whether absolute, accrued, contingent or otherwise, and whether due
or
to become due, and there is no existing condition, situation or set of
circumstances that could reasonably be expected to result in such a liability,
indebtedness or obligation.
10
Section
4.8 Properties
and Assets. AIMMS has good and marketable title
to, valid leasehold interests in, or the legal right to use, all of the assets,
properties and leasehold interests reflected in the most recent AIMMS Financial
Statements, except for those sold or otherwise disposed of since the date of
such AIMMS Financial Statements in the ordinary course of business consistent
with past practice.
Section
4.9
Litigation. There
is no Action pending or threatened against AIMMS that, individually or in the
aggregate, directly or indirectly, would be reasonably likely to have a Material
Adverse Effect, nor is there any outstanding judgment, decree or injunction,
in
each case against AIMMS, that, individually or in the aggregate, has or would
be
reasonably likely to have a Material Adverse Effect.
Section
4.10 Taxes. AIMMS
has timely filed (or has had timely filed on its behalf) with the appropriate
tax authorities all tax returns required to be filed by it or on behalf of
it,
and each such tax return was complete and accurate in all material respects,
and
AIMMS has timely paid (or has had paid on its behalf) all material Taxes due
and
owing by it, regardless of whether required to be shown or reported on a tax
return, including Taxes required to be withheld by it. No deficiency
for a material Tax has been asserted in writing or otherwise, to AIMMS’s
Knowledge, against AIMMS or with respect to any of its assets, except for
asserted deficiencies that either (i) have been resolved and paid in full or
(ii) are being contested in good faith. There are no material Liens
for Taxes upon AIMMS’s assets.
Section
4.11 Compliance. AIMMS
is in compliance with all applicable laws and regulations of any Governmental
Authority applicable to its operations or with respect to which compliance
is a
condition of engaging in the business thereof, except to the extent that failure
to comply would not, individually or in the aggregate, have a Material Adverse
Effect. AIMMS has not received any notice asserting a failure, or
possible failure, to comply with any such law or regulation, the subject of
which notice has not been resolved as required thereby or otherwise to the
satisfaction of the party sending the notice, except for such failure as would
not, individually or in the aggregate, have a Material Adverse
Effect. AIMMS holds all permits, licenses and franchises from
Governmental Authorities required to conduct its business as it is now being
conducted, except for such failures to have such permits, licenses and
franchises that would not, individually or in the aggregate, have a Material
Adverse Effect.
Section
4.12 Absence of
Certain Changes. Since the date of the most
recent AIMMS Financial Statements, (i) there has been no change or development
in, or effect on, AIMMS that has or could reasonably be expected to have a
Material Adverse Effect, (ii) AIMMS has not sold, transferred, disposed of,
or
agreed to sell, transfer or dispose of, any material amount of its assets other
than in the ordinary course of business, (iii) AIMMS has not paid any dividends
or distributed any of its assets to any of its stockholders, (iv) AIMMS has
not
acquired any material amount of assets except in the ordinary course of
business, nor acquired or merged with any other business, (v) AIMMS has not
waived or amended any of its respective material contractual rights except
in
the ordinary course of business, and (vi) AIMMS has not entered into any
agreement to take any action described in clauses (i) through (v)
above.
11
Section
4.13 Brokers and
Finders. Except as disclosed, AIMMS has not, nor
to AIMMS’s Knowledge have any of its officers, directors, employees or managers,
employed any broker, finder, advisor or consultant, or incurred any liability
for any investment banking fees, brokerage fees, commissions or finders’ fees,
advisory fees or consulting fees in connection with the Exchange for which
AIMMS
has or could have any liability.
Section
4.14 Intellectual
Property Rights.
(a)
AIMMS owns, or is licensed or otherwise possesses legally
enforceable rights to use, all patents, trademarks, trade names, trade secrets
(including customer lists), service marks and copyrights, and any applications
for and registrations of such patents, trademarks, service marks, and copyrights
and all processes, formulas, methods, schematics, technology, know-how, computer
software programs, data or applications and tangible or intangible proprietary
information or material that are used in its business, free and clear of all
liens, claims or encumbrances (all of which are referred to as the
“AIMMS Intellectual Property Rights”). The foregoing
representation as it relates to all licenses, sublicenses and other agreements
to which AIMMS is a party and pursuant to which AIMMS is authorized to use
any
third party technology, trade secret, know-how, process, patent, trademark
or
copyright, including software (“Licensed Intellectual
Property”) is limited to the interests of AIMMS pursuant to licenses
from third parties, each of which is in full force and effect, is valid, binding
and enforceable and grants AIMMS such rights to such intellectual property
as
are used in the business as currently conducted.
(b)
AIMMS (i) has not received notice of a claim of infringement of any
patent, trademark, service xxxx, copyright, trade secret or other proprietary
right of any third party and (ii) does not have any knowledge of any claim
challenging or questioning the validity or effectiveness of any license or
agreement relating to any AIMMS Intellectual Property Rights or Licensed
Intellectual Property. AIMMS has at all times used reasonable efforts
to protect its proprietary information and to prevent such information from
being released into the public domain.
Section
4.15 Transactions or
Affiliations. Except for employment agreements,
stock option agreements, and deferred compensation plans, there is no contract,
agreement or arrangement between AIMMS and any person who was, at the time
of
such contract, agreement or arrangement an officer, director or person owning
of
record, or known by AIMMS to own beneficially, five percent or more of its
issued and outstanding common stock or preferred stock and which is to be
performed in whole or in part after the date hereof. AIMMS has no
commitment, whether written or oral, to lend any funds to, borrow any money
from
or enter into any other material transactions with, any such affiliated
person.
Section
4.16 Employees. AIMMS
is in compliance with all currently applicable laws and regulations respecting
terms and conditions of employment, except where any failure to comply would
not
constitute a Material Adverse Effect. There are no proceedings
pending or, to AIMMS’s knowledge, reasonably expected or threatened, between
AIMMS, on the one hand, and any or all of its current or former employees,
on
the other hand. There are no claims pending, or, to AIMMS’s
knowledge, reasonably expected or threatened, against AIMMS under any workers’
compensation or long term disability plan or policy. AIMMS has no
unsatisfied obligations that would have a Material Adverse Effect on AIMMS
to
any employees, former employees, or qualified beneficiaries pursuant to any
employee benefit plans, or any applicable law governing health care coverage
extension or continuation.
12
Section
4.17 Material
Contracts. Each AIMMS Material Contract (i) is
legal, valid, binding and enforceable and in full force and effect with respect
to AIMMS, and to AIMMS’s knowledge is legal, valid, binding, enforceable and in
full force and effect with respect to each other party thereto, in either case
subject to the effect of bankruptcy, insolvency, moratorium or other similar
laws affecting the enforcement of creditors’ rights generally and except as the
availability of equitable remedies may be limited by general principles of
equity; and (ii) will continue to be legal, valid, binding and
enforceable and in full force and effect immediately following the Closing
in
accordance with the terms thereof as in effect prior to the Closing, subject
to
the effect of bankruptcy, insolvency, moratorium or other similar laws affecting
the enforcement of creditors’ rights generally and except as the availability of
equitable remedies may be limited by general principles of
equity. Neither AIMMS nor, to AIMMS’s knowledge, any other
party, is in breach or default, and no event has occurred which with notice
or
lapse of time would constitute a breach or default by AIMMS or, to AIMMS’s
knowledge, by any such other party, or permit termination, modification or
acceleration, under the AIMMS Material Agreement.
Section
4.18 Principals of
AIMMS. During the past five years, no officer or
director of AIMMS has been:
(a)
the subject of any bankruptcy petition filed by or
against any business of which such person was a general partner or executive
officer either at the time of the bankruptcy or within two years prior to that
time;
(b)
the subject of any conviction in a criminal
proceeding or being subject to a pending criminal proceeding (excluding traffic
violations and other minor offenses);
(c)
the subject of any order, judgment, or decree, not
subsequently reversed, suspended or vacated, of any court of competent
jurisdiction, permanently or temporarily enjoining, barring, suspending or
otherwise limiting his involvement in any type of business, securities or
banking activities; or
(d)
found by a court of competent jurisdiction (in a civil
action), the Commission or the Commodity Futures Trading Commission to have
violated a federal or state securities or commodities law, and the judgment
has
not been reversed, suspended, or vacated.
Section
4.19 Disclosure. As
of the Closing Date, there is no known material fact or information relating
to
the business, condition (financial or otherwise), affairs, operations or assets
of AIMMS that has not been disclosed in writing to SLTS by AIMMS. No
representation or warranty of AIMMS in this Agreement or any statement or
document delivered in connection herewith or therewith, contained or will
contain any untrue statement of a material fact or fail to state any material
fact necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading.
13
ARTICLE
V
REPRESENTATIONS
AND WARRANTIES OF EACH SELLER
Each
Seller, severally and not jointly, hereby make the following representations
and
warranties to AIMMS and SLTS:
Section
5.1 Authority
and Validity. Such Seller has all requisite power
to execute and deliver, to perform its obligations under, and to consummate
the
transactions contemplated by, this Agreement.
Section
5.2
Validity. Upon the execution and
delivery of this Agreement and each other document to which such Seller is
a
party (assuming due execution and delivery by each other party thereto), each
such document will be the legal, valid and binding obligations of such Seller,
enforceable against such Seller in accordance with their respective terms except
as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and
other laws of general application affecting enforcement of creditors’ rights
generally.
Section
5.3 No Breach
or Violation. The execution, delivery and
performance by such Seller of this Agreement and each document to which it
is a
party, and the consummation of the transactions contemplated hereby and thereby
in accordance with the terms and conditions hereof and thereof, do not and
will
not conflict with (i) the certificate of incorporation or bylaws of such Seller,
if applicable, or (ii) any agreement to which such Seller is a party, or by
which such Seller or such Seller’s Assets are bound or affected.
Section
5.4 Consents
and Approvals. Except for approval from the Bank
of Korea, no consent, approval, authorization or order of, registration or
filing with, or notice to, any Governmental Authority or any other Person is
necessary to be obtained, made or given by such Seller in connection with the
execution, delivery and performance by such Seller of this Agreement or any
other document to which it is a party or for the consummation by such Seller
of
the transactions contemplated hereby or thereby.
Section
5.5
Title. AIMMS Shares to be
delivered by such Seller in connection with the transactions contemplated herein
are, and at the Closing will be owned, of record and beneficially, solely by
such Seller, free and clear of any Lien and represent such Seller’s entire
ownership interest in AIMMS.
Section
5.6 Investor
Status. Each of the Sellers listed on Schedule
5.6 is an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D under the Securities Act and has properly completed the form
attached hereto as Exhibit C.
Section
5.7 No
Government Review. Such Seller understands that
neither the SEC nor any securities commission or other Governmental Authority
of
any state, country or other jurisdiction has approved the issuance of the Common
Stock or passed upon or endorsed the merits of the Common Stock or this
Agreement or any of the other documents relating to the Exchange (collectively,
the “Offering Documents”), or confirmed the accuracy of,
determined the adequacy of, or reviewed this Agreement or any of the other
documents relating to the Exchange.
14
Section
5.8 Investment
Intent. The shares of Common Stock are being
acquired by Seller for Seller’s own account for investment purposes only, not as
a nominee or agent and not with a view to the resale or distribution of any
part
thereof, and Seller has no present intention of selling, granting any
participation in or otherwise distributing the same. Seller further
represents that Seller does not have any contract, undertaking, agreement or
arrangement with any Person to sell, transfer or grant participation to such
Person or third person with respect to any AIMMS Shares.
Section
5.9
Restrictions on
Transfer. Seller understands that the shares of
Common Stock have not been registered under the Securities Act or registered
or
qualified under any foreign or state securities law, and may not be, directly
or
indirectly, sold, transferred, offered for sale, pledged, hypothecated or
otherwise disposed of without registration under the Securities Act and
registration or qualification under applicable state securities laws or the
availability of an exemption therefrom. In any case where such an
exemption is relied upon by Seller from the registration requirements of the
Securities Act and the registration or qualification requirements of such state
securities laws, Seller shall furnish SLTS with an opinion of counsel stating
that the proposed sale or other disposition of such securities may be effected
without registration under the Securities Act and will not result in any
violation of any applicable state securities laws relating to the registration
or qualification of securities for sale, such counsel and opinion to be
satisfactory to SLTS. Seller acknowledges that it is able to bear the
economic risks of an investment in the Common Stock for an indefinite period
of
time, and that its overall commitment to investments that are not readily
marketable is not disproportionate to its net worth.
Section
5.10 Informed
Investment. Seller has made such investigations
in connection herewith as it deemed necessary or desirable so as to make an
informed investment decision without relying upon AIMMS for legal or tax advice
related to this investment. In making its decision to acquire the
Common Stock, Seller has not relied upon any information other than information
contained in this Agreement.
Section
5.11 Access to
Information. Seller acknowledges that it has had
access to and has reviewed all documents and records relating to SLTS,
including, but not limited to, the SLTS SEC Documents, that it has deemed
necessary in order to make an informed investment decision with respect to
an
investment in SLTS.
Section
5.12 Reliance on
Representations. Seller understands that the
shares of Common Stock are being offered and sold to it in reliance on specific
exemptions from the registration and/or public offering requirements of the
U.S.
federal and state securities laws and that SLTS and AIMMS is relying in part
upon the truth and accuracy of, and such Seller’s compliance with, the
representations, warranties, agreements, acknowledgments and understandings
of
such Seller set forth herein in order to determine the availability of such
exemptions and the eligibility of such Seller to acquire the Common
Stock. Seller represents and warrants to SLTS and AIMMS that any
information Seller has heretofore furnished or furnishes herewith to SLTS and
AIMMS is complete and accurate, and further represents and warrants that it
will
notify and supply corrective information to SLTS and AIMMS
immediately upon the occurrence of any change therein occurring prior to AIMMS’s
issuance of the Common Stock. Within five (5) days after receipt of a
request from AIMMS, Seller will provide such information and deliver such
documents as may reasonably be necessary to comply with any and all laws and
regulations to which AIMMS is subject.
15
Section
5.13 No General
Solicitation. Seller is unaware of, and in
deciding to participate in the transactions contemplated hereby is in no way
relying upon, and did not become aware of the transactions contemplated hereby
through or as a result of, any form of general solicitation or general
advertising including, without limitation, any article, notice, advertisement
or
other communication published in any newspaper, magazine or similar media,
or
broadcast over television or radio or the internet, in connection with the
transactions contemplated hereby.
Section
5.14 Legends. Seller
understands that the certificates representing the Common Stock will bear the
following legend, and stop transfer instructions reflecting that these
restrictions on transfer will be placed with the transfer agent of the Common
Stock:
“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER
THE SECURITIES ACT OF 1933. THEY MAY NOT BE OFFERED OR
TRANSFERRED BY SALE, ASSIGNMENT, PLEDGE OR OTHERWISE UNLESS (I) A
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT
OF 1933
IS IN EFFECT, (II) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL,
WHICH
OPINION IS SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
1933. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT
BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT OF
1933.”
|
Section
5.15 Placement and
Finder’s Fees. No agent, broker, investment
banker, finder, financial advisor or other person acting on behalf of Seller
or
under its authority is or will be entitled to any broker’s or finder’s fee or
any other commission or similar fee, directly or indirectly, in connection
with
the transactions contemplated hereby, and no person is entitled to any fee
or
commission or like payment in respect thereof based in any way on any
agreements, arrangements or understanding made by or on behalf of
Seller.
Section
5.16 Disclosure. No
representation or warranty of Seller in this Agreement or any statement or
document delivered in connection herewith or therewith, contained or will
contain any untrue statement of a material fact or fail to state any material
fact necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading.
16
ARTICLE
VI
CERTAIN
COVENANTS
Section
6.1 Conduct of
Business by SLTS. Except (i) as expressly
permitted or required by this Agreement, or (ii) with the consent of AIMMS,
during the period commencing with the date of this Agreement and continuing
until the Closing Date, SLTS shall not conduct any trade or business other
than
as presently conducted, shall preserve intact its business organizations and
maintain the registration of SLTS and the Common Stock under the Exchange
Act.
Section
6.2 Access to
Information. At all times prior to the Closing or
the earlier termination of this Agreement in accordance with the provisions
of
Article IX, and in each case subject to Section 6.3, each party hereto shall
provide to the other party (and the other party’s authorized representatives)
reasonable access during normal business hours and upon reasonable prior notice
to the premises, properties, books, records, assets, liabilities, operations,
contracts, personnel, financial information and other data and information
of or
relating to such party (including without limitation all written proprietary
and
trade secret information and documents, and other written information and
documents relating to intellectual property rights and matters), and will
cooperate with the other party in conducting its due diligence investigation
of
such party, provided that the party granted such access shall not interfere
unreasonably with the operation of the business conducted by the party granting
access, and provided that no such access need be granted to privileged
information or any agreements or documents subject to confidentiality
agreements.
Section
6.3
Confidentiality; No
Solicitation. Each party shall hold, and shall
cause its respective Affiliates and representatives to hold, all Confidential
Information made available to it in connection with the Exchange in strict
confidence, shall not use such information except for the sole purpose of
evaluating the Exchange and shall not disseminate or disclose any of such
information other than to its directors, officers, managers, employees,
stockholders, interest holders, Affiliates, agents and representatives, as
applicable, who need to know such information for the sole purpose of evaluating
the Exchange (each of whom shall be informed in writing by the disclosing party
of the confidential nature of such information and directed by such party in
writing to treat such information confidentially). The above
limitations on use, dissemination and disclosure shall not apply to Confidential
Information that (i) is learned by the disclosing party from a third party
entitled to disclose it; (ii) becomes known publicly other than through the
disclosing party or any third party who received the same from the disclosing
party, provided that the disclosing party had no Knowledge that the disclosing
party was subject to an obligation of confidentiality; (iii) is required by
law
or court order to be disclosed by the parties; or (iv) is disclosed with the
express prior written consent thereto of the other party. The parties
shall undertake all necessary steps to ensure that the secrecy and
confidentiality of such information will be maintained. If a party is
required by court order or subpoena to disclose information which is otherwise
deemed to be confidential or subject to the confidentiality obligations
hereunder, prior to such disclosure, such party shall: (a) promptly notify
all
other parties hereto and, if having received a court order or subpoena, deliver
a copy of the same to all other parties hereto; (b) cooperate with all other
parties hereto, at the expense of all other parties hereto, in obtaining a
protective or similar order with respect to such information; and (c) provide
only that amount of information as such party is advised by its counsel is
necessary to strictly comply with such court order or subpoena.
17
Section
6.4 Further
Assurances. Each of the parties hereto agrees to
use commercially reasonable efforts before and after the Closing Date to take
or
cause to be taken all action, to do or cause to be done, and to assist and
cooperate with the other party hereto in doing, all things necessary, proper
or
advisable under applicable laws to consummate and make effective, in the most
expeditious manner practicable, the Exchange, including, but not limited to:
(i)
satisfying the conditions precedent to the obligations of any of the parties
hereto; (ii) obtaining all waivers, consents and approvals from other parties
necessary for the consummation of the Exchange, (iii) making all filings with,
and obtain all consents, approvals and authorizations that are required to
be
obtained from, Governmental Authorities, (iv) defending of any lawsuits or
other
legal proceedings, whether judicial or administrative, challenging this
Agreement or the performance of the obligations hereunder; and (v) executing
and
delivering such instruments, and taking such other actions, as the other party
hereto may reasonably require in order to carry out the intent of this
Agreement.
Section
6.5 Public
Announcements. SLTS, the Sellers and AIMMS shall
consult with each other before issuing any press release or otherwise making
any
public statements with respect to the Exchange or this Agreement, and shall
not
issue any other press release or make any other public statement without prior
consent of the other parties, except as may be required by law or, with respect
to SLTS, by obligations pursuant to rule or regulation of the Exchange Act,
the
Securities Act, any rule or regulation promulgated thereunder or any rule or
regulation of the National Association of Securities Dealers.
Section
6.6
Notification of Certain
Matters. Each party hereto shall promptly notify
the other party in writing of any events, facts or occurrences that would result
in any breach of any representation or warranty or breach of any covenant by
such party contained in this Agreement.
Section
6.7 Financial
Statements. Prior to the Closing, AIMMS shall
deliver to SLTS (i) the AIMMS Financial Statements prepared in compliance with
GAAP, consistently applied, and in accordance with all applicable SEC rules
and
regulations, including Regulation S-X promulgated under the Securities Act,
and
(ii) the consent of its independent auditors to the inclusion of their audit
report and the AIMMS Financial Statements in a Current Report on Form 8-K
relating to the Exchange. AIMMS shall use its best efforts to have
its independent auditor consent to SLTS’s use of and reliance on the AIMMS
Financial Statements as may be required in connection with any further filings
made by SLTS under the United States federal securities laws.
Section
6.8 Waiver of
Claims. Each Seller for himself and his heirs,
executors, administrators, attorneys and assigns, hereby releases and
acknowledges full accord, satisfaction, discharge and settlement of, and further
irrevocably and unconditionally forever releases, remises, and acquits AIMMS
and
any of its present or former officers, directors, stockholders, employees,
agents, affiliates, parents, subsidiaries, predecessors, successors, attorneys
and assigns (the “AIMMS Released Parties”) of and from any and all manner of
actions, causes of action, arbitrations, controversies, expenses, damages,
liabilities, demands, claims, counterclaims, cross-claims, obligations, losses,
costs, promises, covenants, agreements, and suits of any kind or nature, whether
known or unknown, whether contingent or fixed, whether developed or undeveloped,
in law or equity, in tort or in contract from the beginning of time through
the
date of the full execution of this Agreement and the attachments and schedules
hereto, which he may have or claim to have against AIMMS Released Parties,
except for accrued wages for current employees and deferred compensation under
AIMMS’s deferred compensation plan. Each Seller expressly
acknowledges that such claims released and discharged by this Section include,
but are not limited to, any and all claims against AIMMS Released Parties for
remuneration, compensation or benefits (including but not limited to fees,
salary, expense reimbursements, commissions, stock, options or warrants for
stock, success fees, insurance or other benefits, or any other form of
remuneration, compensation or benefits of any kind) and any and all other claims
of any kind and nature arising prior to execution of this Agreement and the
attachments and schedules hereto, which relate in any way to
AIMMS.
18
Section
6.9 Release by
Directors; Appointment of Directors. SLTS shall
obtain from each of its directors and officers a written release agreement,
substantially in the form attached hereto as Exhibit A,
by which each such Person agrees to release SLTS from any and all
Liabilities. Prior to Closing, SLTS shall have filed with the SEC a
Schedule 14(f)-1 with respect to the change of control transactions described
in
this Agreement, and shall have caused the Schedule 14(f)-1 to be mailed to
each
registered holder of its Common Stock. Ten days following the mailing
of the Schedule 14(f)-1 to the SLTS registered stockholders, the current
director of SLTS shall appoint Sung Hwan Park, Xxxxx Xxx Xxx, Xxxxx Xxxx Xxx
and
Xxxxxxx Xxxxxxxxx to the SLTS board of directors.
Section
6.10 Cooperation of
SLTS. SLTS shall cooperate with AIMMS in
obtaining approval from the Bank of Korea with respect to the transaction
contemplated herein; provided, however, that SLTS shall not incur any
out-of-pocket costs or expenses in connection with the foregoing unless AIMMS
undertakes to reimburse such costs or expenses in full within five days of
the
date such costs or expenses are incurred.
ARTICLE
VII
CONDITIONS
TO CONSUMMATION OF THE EXCHANGE
Section
7.1 Conditions
to Obligations of AIMMS and Sellers. The
obligations of AIMMS and Sellers to consummate the Exchange shall be subject
to
the fulfillment, or written waiver by AIMMS, at or prior to the Closing, of
each
of the following conditions:
(a)
The representations and warranties of SLTS
set out in this Agreement shall be true and correct in all material respects
at
and as of the time of the Closing as though such representations and warranties
were made at and as of such time;
(b)
SLTS shall have performed and complied in all material
respects with all covenants, conditions, obligations and agreements required
by
this Agreement to be performed or complied with by it on or prior to the Closing
Date;
19
(c)
All consents, approvals, permits,
authorizations and orders, including approval from the Bank of Korea, required
to be obtained from, and all registrations, filings and notices required to
be
made with or given to, any Governmental Authority or Person as provided herein
shall have been obtained;
(d)
AIMMS shall have completed a due diligence
review of the business, operations, financial condition and prospects of SLTS
and shall have been satisfied with the results of its due diligence review
in
its sole and absolute discretion;
(e)
There has been no Material Adverse Effect on
the business, condition or prospects of SLTS until the Closing Date;
and
(f)
SLTS shall have no Assets (other than cash,
cash equivalents and marketable securities) or Liabilities.
Section
7.2 Conditions
to Obligations of SLTS. The obligations of SLTS
to consummate the Exchange shall be subject to the fulfillment, or written
waiver by SLTS, at or prior to the Closing of each of the following
conditions:
(a)
The representations and warranties of AIMMS and each
Seller set out in this Agreement shall be true and correct in all material
respects at and as of the time of the Closing as though such representations
and
warranties were made at and as of such time;
(b)
AIMMS and each Seller shall have performed and complied in all
material respects with all covenants, conditions, obligations and agreements
required by this Agreement to be performed or complied with by AIMMS or the
Sellers, as applicable, on or prior to the Closing Date;
(c)
All consents, approvals, permits, authorizations and orders,
including approval from the Bank of Korea, required to be obtained from, and
all
registrations, filings and notices required to be made with or given to, any
Governmental Authority or Person as provided herein shall have been
obtained;
(d)
SLTS shall have completed a due diligence
review of the business, operations, financial condition and prospects of AIMMS
and shall have been satisfied with the results of its due diligence review
in
its sole and absolute discretion; and
(e)
There has been no Material Adverse Effect on the
business, condition or prospects of AIMMS until the Closing Date.
ARTICLE
VIII
INDEMNIFICATION
Section
8.1
Indemnification between the
Parties.
(a)
Notwithstanding any other indemnification provision hereunder,
SLTS (in this context, the “Indemnifying Party”) shall
indemnify and hold harmless AIMMS and its officers, directors and each of the
Sellers (in this context an “Indemnified Party”), from and
against any and all demands, claims, actions or causes of action, judgments,
assessments, losses, liabilities, damages or penalties and reasonable attorneys’
fees and related disbursements (collectively, “Claims”)
suffered by such Indemnified Party resulting from or arising out of (i) any
inaccuracy in or breach of any of the representations or warranties made by
SLTS
at the time they were made, and, except for representations and warranties
that
speak as of a specific date or time (which need only be true and correct as
of
such date or time), on and as of the Closing Date, (ii) any breach or
nonfulfillment of any covenants or agreements made by SLTS, (iii) any
misrepresentation made by SLTS, in each case as made herein or in the Schedules
or Exhibits annexed hereto or in any closing certificate, schedule or any
ancillary certificates or other documents or instruments furnished by SLTS
pursuant hereto or in connection with the Exchange, (iv) any untimely filing
of,
or inaccuracy in, any SLTS SEC Document, and (v) the operations and liabilities
of SLTS and/or any of its subsidiaries, whether known or unknown, arising out
of
any action, omission and/or period of time preceding the Closing Date, including
but not limited to any taxes levied with respect to same. If the
Indemnifying Party is obligated to indemnify the Indemnified Party for any
Claims pursuant to this Section 8.1(a), and the Indemnifying Party does not
have
sufficient funds legally available therefor, the Indemnified Party has the
right
to receive from the Indemnifying Party that number of shares of common stock
of
SLTS, the fair market value of which equals the amount of the Claims in respect
of which the indemnification is owed by the Indemnifying Party to the
Indemnified Party.
20
(b)
Notwithstanding any other indemnification provision
hereunder, AIMMS (in this context, the “Indemnifying Party”)
shall indemnify and hold harmless SLTS and its officers and directors (in this
context an “Indemnified Party”), from and against any and all
Claims suffered by such Indemnified Party resulting from or arising out of
(i)
any inaccuracy in or breach of any of the representations or warranties made
by
AIMMS at the time they were made, and, except for representations and warranties
that speak as of a specific date or time (which need only be true and correct
as
of such date or time), on and as of the Closing Date, (ii) any breach or
non-fulfillment of any covenants or agreements made by AIMMS,
and (iii) any misrepresentation made by AIMMS, in each case as made
herein or in the Schedules or Exhibits annexed hereto or in any closing
certificate, schedule or any ancillary certificates or other documents or
instruments furnished by AIMMS pursuant hereto or in connection with the
Exchange.
(c)
Notwithstanding any other indemnification provision hereunder,
Sellers, individually and not severally or jointly (in this context, the
“Indemnifying Party”), shall indemnify and hold harmless SLTS
(in this context an “Indemnified Party”), from and against any
and all Claims suffered by such Indemnified Party resulting from or arising
out
of (i) any inaccuracy in or breach of any of the representations or warranties
made by such Seller under this Agreement at the time they were made, and, except
for representations and warranties that speak as of a specific date or time
(which need only be true and correct as of such date or time), on and as of
the
Closing Date and (ii) any breach or nonfulfillment of any covenants or
agreements made by the Seller.
21
Section
8.2 Indemnification
Procedures for Third Party Claims.
(a)
Upon obtaining knowledge of any Claim by a third party which
has given rise to, or is expected to give rise to, a claim for indemnification
hereunder, the Indemnified Party shall give written notice (“Notice of
Claim”) of such claim or demand to the Indemnifying Party, specifying
in reasonable detail such information as the Indemnified Party may have with
respect to such indemnification claim (including copies of any summons,
complaint or other pleading which may have been served on it and any written
claim, demand, invoice, billing or other document evidencing or asserting the
same). No failure or delay by the Indemnified Party in the
performance of the foregoing shall reduce or otherwise affect the obligation
of
the Indemnifying Party to indemnify and hold the Indemnified Party harmless,
except to the extent that such failure or delay shall have actually adversely
affected the Indemnifying Party’s ability to defend against, settle or satisfy
any Claims for which the Indemnified Party entitled to indemnification
hereunder.
(b)
If the claim or demand set forth in
the Notice of Claim is a claim or demand asserted by a third party, the
Indemnifying Party shall have fifteen (15) days after the date on which such
Notice of Claim is given to notify the Indemnified Party in writing of their
election to defend such third party claim or demand on behalf of the Indemnified
Party. If the Indemnifying Party elects to defend such third party
claim or demand, the Indemnified Party must make available to the Indemnifying
Party and its agents and representatives all records and other materials that
are reasonably required in the defense of such third party claim or demand
and
must otherwise cooperate with, and assist the Indemnifying Party in the defense
of, such third party claim or demand, and so long as the Indemnifying Party
is
defending such third party claim in good faith, the Indemnified Party may not
pay, settle or compromise such third party claim or demand. If the
Indemnifying Party elects to defend such third party claim or demand, the
Indemnified Party must have the right to participate in the defense of such
third party claim or demand, at such Indemnified Party’s own
expense. In the event, however, that such Indemnified Party
reasonably determines that representation by counsel to the Indemnifying Party
of both the Indemnifying Party and such Indemnified Party could reasonably
be
expected to present counsel with a conflict of interest, then the Indemnified
Party may employ separate counsel to represent or defend it in any such action
or proceeding and the Indemnifying Party will pay the fees and expenses of
such
counsel. If the Indemnifying Party does not elect to defend such
third party claim or demand or does not defend such third party claim or demand
in good faith, the Indemnified Party has the right, in addition to any other
right or remedy it may have hereunder, at the Indemnifying Party’s expense, to
defend such third party claim or demand; provided, however, that (i) such
Indemnified Party will not have any obligation to participate in the defense
of,
or defend, any such third party claim or demand; (ii) such Indemnified Party’s
defense of or its participation in the defense of any such third party claim
or
demand will not in any way diminish or lessen the obligations of the
Indemnifying Party under the agreements of indemnification set forth in this
Article VIII; and (iii) such Indemnified Party may not settle any claim without
the consent of the Indemnifying Party, which consent may not be unreasonably
withheld or delayed.
(c)
The Indemnifying Party and the other Indemnified
Parties, if any, must cooperate fully in all aspects of any investigation,
defense, pre-trial activities, trial, compromise, settlement or discharge of
any
claim in respect of which indemnity is sought pursuant to this Article VIII,
including, but not limited to, by providing the other party with reasonable
access to employees and officers (including as witnesses) and other
information.
22
Section
8.3
Indemnification Procedures for Non-Third Party
Claims. In the event any Indemnified Party should
have an indemnification claim against the Indemnifying Party under this
Agreement that does not involve a claim by a third party, the Indemnified Party
must promptly deliver notice of such claim to the Indemnifying Party in writing
and in reasonable detail. The failure by any Indemnified Party to so
notify the Indemnifying Party does not relieve the Indemnifying Party from
any
liability that it may have to such Indemnified Party, except to the extent
that
Indemnifying Party has been actually prejudiced by such failure. If
the Indemnifying Party does not notify the Indemnified Party within fifteen
(15)
Business Days following its receipt of such notice that the Indemnifying Party
disputes such claim, such claim specified by the Indemnifying Party in such
notice will be conclusively deemed a liability of the Indemnifying Party under
this Article VIII and the Indemnifying Party must pay the amount of such
liability to the Indemnified Party on demand, or in the case of any notice
in
which the amount of the claim is estimated, on such later date when the amount
of such claim is finally determined. If the Indemnifying Party
disputes its liability with respect to such claim in a timely manner, the
Indemnifying Party and the Indemnified Party shall proceed in good faith to
negotiate a resolution of such dispute and, if not resolved through
negotiations, such dispute must be resolved in accordance with Section
10.11.
Section
8.4
Limitations on
Indemnification. No claim for indemnification
under this Article VIII may be asserted by, and no liability for such indemnify
may be enforced against, the Indemnifying Party to the extent the Indemnified
Party has theretofore received indemnification or otherwise been compensated
for
such Claim. If an Indemnified Party later collects any such amounts
recovered under insurance policies with respect to any Claim for which it has
previously received payments under this Article VIII from the Indemnifying
Party, such Indemnified Party must promptly repay to the Indemnifying Party
such
amount recovered.
ARTICLE
IX
TERMINATION
Section
9.1
Termination. This Agreement may
be terminated at any time prior to the Closing:
(a)
by mutual written consent of SLTS, AIMMS and Sellers
owning not less than 80% of the AIMMS Shares;
(b)
by AIMMS or Sellers owning not less than 80% of the
AIMMS Shares, if the Closing shall not have occurred on or before December
31,
2007 or if any of the conditions to the Closing set forth in Section 7.1 shall
have become incapable of fulfillment by December 15, 2007 and shall not have
been waived in writing by AIMMS; provided, however, that the right to terminate
this Agreement under this Section 9.1(b) shall not be available to AIMMS or
Sellers owning not less than 80% of the AIMMS Shares if its action or failure
to
act has been a principal cause of or resulted in the failure of the Exchange
to
occur on or before such date and such action or failure to act constitutes
a
breach of this Agreement;
23
(c)
by SLTS, if the Closing shall not have occurred on or
before December 31, 2007 or if any of the conditions to the Closing set forth
in
Section 7.2 shall have become incapable of fulfillment by December 15, 2007
and
shall not have been waived in writing by SLTS; provided, however, that the
right
to terminate this Agreement under this Section 9.1(c) shall not be available
to
SLTS if its action or failure to act has been a principal cause of or resulted
in the failure of the Exchange to occur on or before such date and such action
or failure to act constitutes a breach of this Agreement;
(d)
by SLTS, AIMMS or Sellers owning not less
than 80% of the AIMMS Shares, if any Governmental Authority shall have issued
an
injunction, order, decree or ruling or taken any other action restraining,
enjoining or otherwise prohibiting any material portion of the Exchange and
such
injunction, order, decree, ruling or other action shall have become final and
non-appealable;
Section
9.2 Procedure
and Effect of Termination. In the event of
termination of this Agreement pursuant to Section 9.1, written notice thereof
shall forthwith be given by the terminating party to the other party, and,
except as set forth below, this Agreement shall terminate and be void and have
no effect and the Exchange shall be automatically abandoned without any further
action by the parties hereto. If this Agreement is terminated as
provided herein:
(a)
each party hereto shall redeliver, and shall cause
its agents (including, without limitation, attorneys and accountants) to
redeliver, all documents, work papers and other material of each party hereto
relating to the Exchange, whether obtained before or after the execution hereof;
and
(b)
each party agrees that all Confidential Information received
by SLTS or AIMMS with respect to the other party, this Agreement or the Exchange
shall be kept confidential notwithstanding the termination of this
Agreement.
ARTICLE
X
MISCELLANEOUS
Section
10.1 Entire
Agreement. This Agreement and the Schedules and
Exhibits hereto contain the entire agreement between the parties and supersede
all prior agreements and understandings, both written and oral, between the
parties with respect to the subject matter hereof.
Section
10.2 Amendment and
Modifications. This Agreement may not be amended,
modified or supplemented except by an instrument or instruments in writing
signed by the party against whom enforcement of any such amendment, modification
or supplement is sought.
Section
10.3 Extensions and
Waivers. At any time prior to the Closing, the
parties hereto entitled to the benefits of a term or provision may (a) extend
the time for the performance of any of the obligations or other acts of the
parties hereto, (b) waive any inaccuracies in the representations and warranties
contained herein or in any document, certificate or writing delivered pursuant
hereto, or (c) waive compliance with any obligation, covenant, agreement or
condition contained herein. Any agreement on the part of a party to
any such extension or waiver is valid only if set forth in an instrument or
instruments in writing signed by the party against whom enforcement of any
such
extension or waiver is sought. No failure or delay on the part of any
party hereto in the exercise of any right hereunder shall impair such right
or
be construed to be a waiver of, or acquiescence in, any breach of any
representation, warranty, covenant or agreement.
24
Section
10.4 Successors and
Assigns. This Agreement is binding
upon and inures to the benefit of the parties hereto and their respective
successors and assigns, provided, however, that no party hereto may assign
its
rights or delegate its obligations under this Agreement without the express
prior written consent of the other party hereto. Except as provided
in Article VIII, nothing in this Agreement is intended to confer upon any person
not a party hereto (and their successors and assigns) any rights, remedies,
obligations or liabilities under or by reason of this Agreement.
Section
10.5 Survival of
Representations, Warranties and Covenants. The
representations and warranties contained herein shall survive the Closing and
shall thereupon terminate two (2) years from the Closing. Any claim
for indemnification for breach of representation or warranty must be brought
within two years from the Closing. All covenants and agreements
contained herein which by their terms contemplate actions following the Closing
shall survive the Closing and remain in full force and effect in accordance
with
their terms.
Section
10.6 Headings;
Definitions. The Section and Article headings
contained in this Agreement are inserted for convenience of reference only
and
will not affect the meaning or interpretation of this Agreement. All
references to Sections, Schedules or Articles contained herein mean Sections,
Schedules or Articles of this Agreement unless otherwise stated. All
capitalized terms defined herein are equally applicable to both the singular
and
plural forms of such terms.
Section
10.7 Severability. If
any provision of this Agreement or the application thereof to any Person or
circumstance is held to be invalid or unenforceable to any extent, the remainder
of this Agreement shall remain in full force and effect and shall be reformed
to
render the Agreement valid and enforceable while reflecting to the greatest
extent permissible the intent of the parties.
Section
10.8 Specific
Performance. The parties hereto agree that in the
event that any party fails to consummate the Exchange in accordance with the
terms of this Agreement, irreparable damage would occur, no adequate remedy
at
law would exist and damages would be difficult to determine. It is
accordingly agreed that the parties shall be entitled to specific performance
in
such event, without the necessity of proving the inadequacy of money damages
as
a remedy, in addition to any other remedy at law or in equity.
Section
10.9 Notices. All
notices hereunder shall be sufficiently given for all purposes hereunder if
in
writing and delivered personally, sent by documented overnight delivery service
or, to the extent receipt is confirmed, facsimile, email or other electronic
transmission service to the appropriate address or number as set forth below
(or
any other address duly notified by a party hereto pursuant to the provisions
of
this Section 10.9).
25
If
to SLTS:
|
with
a copy to:
|
||
Satellite
Security Corporation
|
Xxxxx
Xxxxxx LLP
|
||
0000
Xxxxxxx Xxx
|
000
Xxxx Xxxxxxxx, Xxxxx 000
|
||
Xxx
Xxxxx, XX 00000
|
Xxx
Xxxxx, XX 00000
|
||
Attn:
|
Zirk
Xxxxxxxxxxx
|
Attn:
|
Xxxxx
X. Xxxxxx III, Esq.
|
Fax:
|
(000)
000-0000
|
Fax:
|
(000)
000-0000
|
Email:
|
xxxxxxxxxxxx@xxxxx.xxx
|
Email:
|
xxxxxxxx@xxxxxxxxxxx.xxx
|
If
to AIMMS:
|
with
a copy to:
|
||
AIMMS
Co., Ltd.
|
Yulchon
|
||
4th
fl., Kumkang B/D, 681 Yeoksam-dong
|
Textile
Center 00X, 000-00 Xxxxxx 0-xxxx
|
||
Xxxxxxx-xx,
Xxxxx 135-713, Korea
|
Xxxxxxx-xx,
Xxxxx 000-000, Xxxxx
|
||
Attn:
|
Xxxxx
Xxx Xxx
|
Attn:
|
Young
Sun Cho
|
Fax:
|
00-0-0000-0000
|
Fax:
|
00-0-000-0000
|
Email:
|
xxxxxxxx@xxxxxxxxxx.xx.xx
|
Email:
|
xxxxx@xxxxxxx.xxx
|
If
to a Seller:
|
|||
AIMMS
Co., Ltd.
|
|||
4th
fl., Kumkang B/D, 681 Yeoksam
|
|||
Xxxxxxx-xx,
Xxxxx 000-000, Xxxxx
|
|||
Attn:
|
Xxxxx
Xxx Xxx
|
||
Fax:
|
00-0-0000-0000
|
||
Email:
|
xxxxxxxx@xxxxxxxxxx.xx.xx
|
Section
10.10 Governing
Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of California, without regard
to the laws that might otherwise govern under applicable principles of conflicts
of laws thereof.
Section
10.11 Consent to
Jurisdiction. Any action, suit or other legal
proceeding which is commenced to resolve any matter arising under or relating
to
any provision of this Agreement shall be commenced only in a state or federal
court of competent jurisdiction the State of California, County of San Diego,
and the parties hereto each consents to the jurisdiction of such a
court.
Section
10.12 Expenses. Except
as provided in this Agreement, each party will be solely responsible for, and
will bear, any and all out-of-pocket costs and expenses (including attorney’s
fees) incurred in connection with this Agreement and the Exchange.
Section
10.13 Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall
be
deemed to be an original, but all of which together shall constitute one and
the
same agreement.
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Section
10.14 Certain
Definitions. As used herein:
(a)
“Affiliate” shall have the meanings ascribed
to such term in Rule 12b 2 of the Exchange Act.
(b)
“Business Day” shall mean any day other than a
Saturday, Sunday or a day on which federally chartered financial institutions
are not open for business in the City of San Diego, California.
(c)
“Confidential Information” shall mean the existence and
contents of this Agreement and the Schedules and Exhibits hereto, and all
proprietary technical, economic, environmental, operational, financial and/or
business information or material of one party which, prior to or following
the
Closing Date, has been disclosed by AIMMS, on the one hand, or SLTS, on the
other hand, in written, oral (including by recording), electronic, or visual
form to, or otherwise has come into the possession of, the other.
(d)
“Contract” shall mean any oral, written or implied
contracts, agreements, licenses, instruments, indentures leases, powers of
attorney, guaranties, surety arrangements or other commitments of any
kind.
(e)
“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.
(f)
“GAAP” shall mean generally accepted accounting
principles in the United States as in effect on the date or for the period
with
respect to which such principles are applied.
(g)
“Governmental Authority” shall mean any nation or
government, any state, municipality or other political subdivision thereof
and
any entity, body, agency, commission or court, whether domestic, foreign or
multinational, exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government and any executive
official thereof.
(h)
“Knowledge” shall mean (i) with respect to an individual,
knowledge of a particular fact or other matter, if such individual is aware
of
such fact or other matter, and (ii) with respect to a Person that is not an
individual, knowledge of a particular fact or other matter if any individual
who
is serving, or who has at any time served, as a director, officer, partner,
executor, or trustee of such Person (or in any similar capacity) has, or at
any
time had, knowledge of such fact or other matter.
(i)
“Lien” shall mean any security or other property interest
or right, claim, lien, pledge, option, charge, security interest, contingent
or
conditional sale, or proxy, pre-emptive rights, first refusal rights,
participation rights, or other title claim or retention agreement, interest
or
other right or claim of third parties, whether perfected or not perfected,
voluntarily incurred or arising by operation of law, and including any agreement
(other than this Agreement) to grant or submit to any of the foregoing in the
future.
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(j)
“Material Adverse Effect” shall mean
any material adverse effect on the business, condition (financial or otherwise)
or results of operation of the applicable entity.
(k)
“Material Contract” shall mean any Contract,
other than equipment and furniture leases entered into in the ordinary course
of
business, where the liabilities or commitments associated therewith exceed
$10,000 individually or $50,000 in the aggregate.
(l)
“Person” shall mean any individual, corporation, partnership,
association, trust or other entity or organization, including a governmental
or
political subdivision or any agency or institution thereof.
(m) “SEC”
shall mean the United States Securities and Exchange Commission.
(n)
“Securities Act” shall mean the Securities Act of 1933,
as amended, and the rules and regulations promulgated thereunder.
(o)
“Taxes” shall mean all taxes (whether U.S. federal,
state, local or other non-U.S.) based upon or measured by income and any other
tax whatsoever, including, without limitation, gross receipts, profits, sales,
levies, imposts, deductions, charges, rates, duties, use, occupation, value
added, ad valorem, transfer, franchise, withholding, payroll and social
security, employment, excise, stamp duty or property taxes, together with any
interest, penalties, charges or fees imposed with respect thereto.
IN
WITNESS WHEREOF, each of the parties have caused this Agreement to be signed
by
their respective officers hereunto duly authorized, all as of the date first
written above.
SATELLITE
SECURITY CORPORATION
|
AIMMS
CO., LTD.
|
||||
By:
|
/s/
Zirk Xxxxxxxxxxx
|
By:
|
/s/
Xxxxx Xxx Xxx
|
||
Zirk
Xxxxxxxxxxx
|
Xxxxx
Xxx Xxx
|
||||
Chief
Executive Officer
|
Chief
Executive Officer
|
SELLERS
|
||
By:
|
/s/
Xxxxx Xxx Xxx
|
|
Xxxxx
Xxx Xxx, as attorney-in-fact pursuant to special power of
attorney
|
||
Chief
Executive Officer of AIMMS CO., LTD
|
28