SHARE EXCHANGE AGREEMENT
SHARE
EXCHANGE AGREEMENT
THIS
AGREEMENT is made effective as of the 31st
day of
January 0000
XXXXX:
NOBLE
QUESTS, INC.
000
Xxxx
Xxxxxx
Xxxx
Xxxx
Xxxx, Xxxx 00000
(“Pubco”)
AND:
THE
UNDERSIGNED SHAREHOLDER OF PUBCO AS LISTED ON THE
SIGNATURE PAGE ATTACHED
HERETO
(the
“Major
Pubco Shareholder”)
AND:
WELL
CHANCE INVESTMENTS LIMITED,
00X,
Xxxxx X, Xxxxxxxx Xx. 0 XX Xxxxxxxxxxxxx Center
Jia3
Yongandongli, Xxxxxxxxxxxxx Xxxxxx,
Xxxxxxxx
Xxxxxxxx, Xxxxxxx 000000, Xxxxx
(“Priveco”)
AND:
THE
UNDERSIGNED SOLE SHAREHOLDER OF PRIVECO AS LISTED ON SCHEDULE
1
ATTACHED HERETO
(the
“Selling Shareholder”)
WHEREAS:
A. The
parties hereto wish to enter into this Share Exchange Agreement (the
“Agreement”) whereby, in addition to other changes set out in this Agreement,
Pubco will issue 1,200,000 common shares in the capital of Pubco for all of
the
issued and outstanding shares of Priveco on the basis of 1,200 common shares
in
the capital of Pubco for every one share of Priveco.
B. Upon
the
terms and subject to the conditions set forth in this Agreement, the Selling
Shareholder has agreed to sell all of the issued and outstanding common shares
of Priveco held by the Selling Shareholder to Pubco in exchange for common
shares of Pubco.
THEREFORE,
in consideration of the mutual covenants and agreements herein contained and
other good and valuable consideration (the receipt and sufficiency of which
are
hereby acknowledged), the parties covenant and agree as follows:
1.
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DEFINITIONS
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1.1 Definitions.
The
following terms have the following meanings, unless the context indicates
otherwise:
(a)
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“Agreement”
shall mean this Agreement, and all the exhibits, schedules and other
documents attached to or referred to in this Agreement, and all amendments
and supplements, if any, to this
Agreement;
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(b)
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“Closing”
shall mean the completion of the Transaction, in accordance with
Section
8
hereof, at which the Closing Documents shall be exchanged by the
parties,
except for those documents or other items specifically required to
be
exchanged at a later time;
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(c)
|
“Closing
Date”
shall mean a date mutually agreed upon by the parties hereto in writing
and in accordance with Section 11.6
following the satisfaction or waiver by Pubco, Priveco of the conditions
precedent set out in Sections 6.1
and 6.2
respectively;
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(d)
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“Closing
Documents”
shall mean the papers, instruments and documents required to be executed
and delivered at the Closing pursuant to this
Agreement;
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(e)
|
“Exchange
Act”
shall mean the United States Securities Exchange Act of 1934, as
amended;
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(f)
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“Financing”
shall mean the equity or debt financing by Pubco or Priveco of at
least
$500,000, which may consist of the issuance of promissory notes of
Pubco
or Priveco to certain lenders;
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(g)
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“GAAP”
shall mean United States generally accepted accounting principles
applied
in a manner consistent with prior
periods;
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(h)
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“Liabilities”
shall include any direct or indirect indebtedness, guaranty, endorsement,
claim, loss, damage, deficiency, cost, expense, obligation or
responsibility, fixed or unfixed, known or unknown, asserted xxxxxx
or
inchoate, liquidated or unliquidated, secured or
unsecured;
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(i)
|
“Priveco
Shares” shall
mean the 1,000 common shares of Priveco held by the Selling Shareholder,
being all of the issued and outstanding common shares of Priveco
beneficially held, either directly or indirectly, by the Selling
Shareholder;
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(j)
|
“Pubco
Shares”
shall mean the 1,200,000 fully paid and non-assessable common shares
of
Pubco, to be issued to the Selling Shareholder by Pubco on the Closing
Date;
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(k)
|
“SEC”
shall mean the Securities and Exchange
Commission;
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2
(l)
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“Securities
Act”
shall mean the United States Securities Act of 1933, as
amended;
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(m)
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“Taxes”
shall include international, federal, state, provincial and local
income
taxes, capital gains tax, value-added taxes, franchise, personal
property
and real property taxes, levies, assessments, tariffs, duties (including
any customs duty), business license or other fees, sales, use and
any
other taxes relating to the assets of the designated party or the
business
of the designated party for all periods up to and including the Closing
Date, together with any related charge or amount, including interest,
fines, penalties and additions to tax, if any, arising out of tax
assessments; and
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(n)
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“Transaction”
shall mean the purchase of the Priveco Shares by Pubco from the Selling
Shareholder in consideration for the issuance of the Pubco
Shares.
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1.2 Currency.
All
references to currency referred to in this Agreement are in United States
Dollars (US$), unless expressly stated otherwise.
2.
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CASH
PAYMENT
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2.1 Payment.
Pubco
and certain Pubco shareholders set forth in Schedule
2.1
shall
have been paid an aggregate of $437,500 by Priveco or its designees in
consideration of: (a) the compromise and settlement of any amounts due and
owing
for advances of the certain Pubco shareholders; (b) the purchase of 1,517,437
newly issued restricted common voting stock of Pubco by persons set forth in
Schedule
2.1;
(c) the
transfer of 1,200,000 free-trading, registered shares of common stock, which
provides that the purchase price paid by the purchasers of these shares shall
be
deducted from the aggregate sum of $437,500 due of parties identified by Priveco
at Closing (the “Trading Shares”); and (d) and the cancellation of 2,419,885
shares of Pubco common stock by certain Pubco shareholders (the “Returned
Shares”) as set forth in Schedule
2.1.
3.
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THE
OFFER, PURCHASE AND SALE OF
SHARES
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3.1 Offer,
Purchase and Sale of Shares.
Subject
to the terms and conditions of this Agreement, the Selling Shareholder hereby
covenants and agrees to sell, assign and transfer to Pubco, and Pubco hereby
covenants and agrees to purchase from the Selling Shareholder all of the Priveco
Shares held by the Selling Shareholder.
3.2 Consideration.
As
consideration for the sale of the Priveco Shares by the Selling Shareholder
to
Pubco, Pubco shall allot and issue the Pubco Shares to the Selling Shareholder
in the amount set out opposite each Selling Shareholder’s name in Schedule
1
on the
basis of approximately
1,200 Pubco Shares for each Priveco Share held by the Selling Shareholder.
The
Selling Shareholder acknowledges and agrees that the Pubco Shares are being
issued pursuant to an exemption from the prospectus and registration
requirements of the Securities Act. As required by applicable securities law,
the Selling Shareholder agrees to abide by all applicable
resale restrictions and holding periods imposed by all applicable securities
legislation. All certificates representing the Pubco Shares issued on Closing
will be endorsed with one of the following legends pursuant to the Securities
Act in order to reflect the fact that the Pubco Shares will be issued to the
Selling Shareholder pursuant to an exemption from the registration requirements
of the Securities Act:
3
For
Selling Shareholders not residing in the United States:
“THE
SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION
TO A
PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION
S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”).
NONE
OF
THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT,
OR
ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED
OR
SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO
U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER
THE
1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT,
OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS
INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
1933
ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE
1933 ACT.”
For
Selling Shareholders residing in the United States:
“NONE
OF
THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE
SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY
OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT,
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS
INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
1933
ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE
1933 ACT.”
All
options and warrants to purchase Priveco common stock shall be exchanged into
options and warrants to purchase that number of Pubco common stock. All Priveco
debt that may be converted into Priveco common stock shall be exchanged for
Priveco debt that may be converted into shares of Priveco common stock. The
conversion price at which Priveco debt may be converted into Priveco common
stock shall be based on the conversion price of Priveco debt and also
proportional to the price at which Priveco common stock may be exchanged for
Priveco common stock. The exercise price of Pubco options or warrants granted
in
exchange for existing Priveco options and warrants shall be proportional to
the
ratio at which Priveco common stock may be exchanged for Priveco common stock.
The number of shares of common stock issuable under Pubco options or warrants
granted in exchange for existing Priveco options and warrants shall be
proportional to the ratio at which Priveco common stock may be exchanged for
Priveco common stock. For example, if each Priveco common stock is exchanged
for
five (5) shares of Pubco common stock, then a warrant to purchase 10 Priveco
shares of common stock at $2.50 per share shall be exchanged for a warrant
to
purchase 50 Pubco shares of common stock at $0.50 per share.
4
The
Selling Shareholder may exchange his, her or its certificate representing the
Priveco Shares by delivering such certificate to Pubco duly executed and
endorsed in blank (or accompanied by duly executed stock powers duly endorsed
in
blank), in each case in proper form for transfer, with signatures
guaranteed, and, if applicable, with all stock transfer and any other required
documentary stamps affixed thereto and with appropriate instructions to allow
the transfer agent to issue certificates for the Pubco Shares to the holder
thereof, together with:
(a)
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if
the Selling Shareholder does not reside in the United States, a
Certificate of Non-U.S. Shareholder (the “Regulation
S Certificate”),
a copy of which is set out in Schedule 3.2A;
and
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(b)
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if
the Selling Shareholder resides in the United States, a Certificate
of
U.S. Shareholder (the “Rule
506 Certificate”),
a copy of which is set out in Schedule
3.2B.
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3.3 Fractional
Shares.
Notwithstanding any other provision of this Agreement, no certificate for
fractional shares of the Pubco Shares will be issued in the Transaction. In
lieu
of any such fractional shares, if the Selling Shareholder would otherwise be
entitled to receive a fraction of a share of the Pubco Shares upon surrender
of
certificates representing the Priveco Shares for exchange pursuant to this
Agreement, the Selling Shareholder will be entitled to have such fraction
rounded up to the nearest whole number of Pubco Shares and will receive from
Pubco a stock certificate representing same.
3.4 Closing
Date.
The
Closing will take place, subject to the terms and conditions of this Agreement,
on the Closing Date.
3.5 Restricted
Shares.
The
Selling Shareholder acknowledges that the Pubco Shares issued pursuant to the
terms and conditions set forth in this Agreement in exchange for the Priveco
Shares will have such hold periods as are required under applicable securities
laws and as a result may not be sold, transferred or otherwise disposed, except
pursuant to an effective registration statement under the Securities Act, or
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and in each case only in
accordance with all applicable securities laws.
3.6 Exemptions.
The
Selling Shareholder acknowledges that Pubco has advised such Selling Shareholder
that Pubco is relying upon the representations and warranties of the Selling
Shareholder set out in the Questionnaires to issue the Pubco Shares under an
exemption from the prospectus and registration requirements of the Securities
Act.
4.
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REPRESENTATIONS
AND WARRANTIES OF
PRIVECO
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As
of the
Closing, Priveco represents and warrants to Pubco, and acknowledges that Pubco
is relying upon such representations and warranties, in connection with the
execution, delivery and performance of this Agreement, notwithstanding any
investigation made by or on behalf of Pubco, as follows:
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4.1 Organization
and Good Standing.
Priveco
is a corporation duly organized, validly existing and in good standing under
the
laws of its jurisdiction of incorporation and has the requisite corporate power
and authority to own, lease and to carry on its business as now being conducted.
Priveco is duly qualified to do business and is in good standing as a
corporation in each of the jurisdictions in which Priveco owns property, leases
property, does business, or is otherwise required to do so, where the failure
to
be so qualified would have a material adverse effect on the business of Priveco
taken as a whole.
4.2 Authority.
Priveco
has all requisite corporate power and authority to execute and deliver this
Agreement and any other document contemplated by this Agreement (collectively,
the “Priveco
Documents”)
to be
signed by Priveco and to perform its obligations hereunder and to consummate
the
transactions contemplated hereby. The execution and delivery of each of the
Priveco Documents by Priveco and the consummation of the transactions
contemplated hereby have been duly authorized by Priveco’s board of directors.
No other corporate or shareholder proceedings on the part of Priveco is
necessary to authorize such documents or to consummate the transactions
contemplated hereby. This Agreement has been, and the other Priveco Documents
when executed and delivered by Priveco as contemplated by this Agreement will
be, duly executed and delivered by Priveco and this Agreement is, and the other
Priveco Documents when executed and delivered by Priveco as contemplated hereby
will be, valid and binding obligations of Priveco enforceable in accordance
with
their respective terms except:
(a)
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as
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and other laws of general application affecting enforcement of creditors’
rights generally;
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(b)
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as
limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies;
and
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(c)
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as
limited by public policy.
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4.3 Capitalization
of Priveco.
The
entire authorized capital stock and other equity securities of Priveco consists
of 1,000]
common shares (the “Priveco
Common Stock”).
As of
the date of this Agreement, there are 1,000
shares of Priveco Common Stock issued and outstanding. All
of
the
issued and outstanding shares of Priveco Common Stock have been duly authorized,
are validly issued, were not issued in violation of any pre-emptive rights
and
are fully paid and non-assessable, are not subject to pre-emptive rights and
were issued in full compliance with the laws of the British Virgin Islands
and
its Constitution and Articles of Association. There
are
no outstanding options, warrants, subscriptions, conversion rights, or other
rights, agreements, or commitments obligating Priveco to issue any additional
common shares of Priveco Common Stock, or any other securities convertible
into,
exchangeable for, or evidencing the right to subscribe for or acquire from
Priveco any common shares of Priveco Common Stock. There are no agreements
purporting to restrict the transfer of the Priveco Common Stock, no voting
agreements, shareholders’ agreements, voting trusts, or other arrangements
restricting or affecting the voting of the Priveco Common Stock.
4.4 Directors
and Officers of Priveco.
The
duly elected or appointed directors and the duly appointed officers of Priveco
are as set out in Schedule 4.4.
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4.5 Corporate
Records of Priveco.
The
corporate records of Priveco, as required to be maintained by it pursuant to
all
applicable laws, are accurate, complete and current in all material respects,
and the minute book of Priveco is, in all material respects, correct and
contains all records required by all applicable laws, as applicable, in regards
to all proceedings, consents, actions and meetings of the shareholders and
the
board of directors of Priveco.
4.6 Non-Contravention.
Neither
the execution, delivery and performance of this Agreement, nor the consummation
of the Transaction, will:
(a)
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conflict
with, result in a violation of, cause a default under (with or without
notice, lapse of time or both) or give rise to a right of termination,
amendment, cancellation or acceleration of any obligation contained
in or
the loss of any material benefit under, or result in the creation
of any
lien, security interest, charge or encumbrance upon any of the material
properties or assets of Priveco or any of its subsidiaries under
any term,
condition or provision of any loan or credit agreement, note, debenture,
bond, mortgage, indenture, lease or other agreement, instrument,
permit,
license, judgment, order, decree, statute, law, ordinance, rule or
regulation applicable to Priveco or any of its subsidiaries, or any
of
their respective material property or
assets;
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(b)
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violate
any provision of the Constitution, Articles of Association or any
other
constating documents of Priveco, any of its subsidiaries or any applicable
laws; or
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(c)
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violate
any order, writ, injunction, decree, statute, rule, or regulation
of any
court or governmental or regulatory authority applicable to Priveco,
any
of its subsidiaries or any of their respective material property
or
assets.
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4.7 Actions
and Proceedings.
To the
best knowledge of Priveco, there is no basis for and there is no action, suit,
judgment, claim, demand or proceeding outstanding or pending, or threatened
against or affecting Priveco, any of its subsidiaries or which involves any
of
the business, or the properties or assets of Priveco or any of its subsidiaries
that, if adversely resolved or determined, would have a material adverse effect
on the business, operations, assets, properties, prospects, or conditions of
Priveco and its subsidiaries taken as a whole (a “Priveco
Material Adverse Effect”).
There
is no reasonable basis for any claim or action that, based upon the likelihood
of its being asserted and its success if asserted, would have such a Priveco
Material Adverse Effect.
4.8 Compliance.
(a)
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To
the best knowledge of Priveco, Priveco and each of its subsidiaries
is in
compliance with, is not in default or violation in any material respect
under, and has not been charged with or received any notice at any
time of
any material violation of any statute, law, ordinance, regulation,
rule,
decree or other applicable regulation to the business or operations
of
Priveco and its subsidiaries;
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(b)
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To
the best knowledge of Priveco, neither Priveco nor any of its subsidiaries
is subject to any judgment, order or decree entered in any lawsuit
or
proceeding applicable to its business and operations that would constitute
a Priveco Material Adverse
Effect;
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(c)
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Each
of Priveco and its subsidiaries has duly filed all reports and returns
required to be filed by it with governmental authorities and has
obtained
all governmental permits and other governmental consents, except
as may be
required after the execution of this Agreement. All of such permits
and
consents are in full force and effect, and no proceedings for the
suspension or cancellation of any of them, and no investigation relating
to any of them, is pending or to the best knowledge of Priveco,
threatened, and none of them will be adversely affected by the
consummation of the Transaction;
and
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(d)
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Each
of Priveco and its subsidiaries has operated in material compliance
with
all laws, rules, statutes, ordinances, orders and regulations applicable
to its business. Neither Priveco nor any of its subsidiaries has
received
any notice of any violation thereof, nor is Priveco aware of any
valid
basis therefore.
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4.9 Filings,
Consents and Approvals.
No
filing or registration with, no notice to and no permit, authorization, consent,
or approval of any public or governmental body or authority or other person
or
entity is necessary for the consummation by Priveco or any of its subsidiaries
of the Transaction contemplated by this Agreement or to enable Pubco to continue
to conduct Priveco’s business after the Closing Date in a manner which is
consistent with that in which the business is presently conducted.
4.10 Financial
Representations.
The
audited balance sheets for Priveco dated on or before December 31, 2007 (the
“Priveco
Accounting Date”),
together with related statements of income, cash flows, and changes in
shareholder’s equity for such fiscal years and interim period then ended
(collectively, the “Priveco
Financial Statements”)
to be
supplied on or before the Closing Date:
(a)
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are
in accordance with the books and records of
Priveco;
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(b)
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present
fairly the financial condition of Priveco as of the respective dates
indicated and the results of operations for such periods;
and
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(c)
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have
been prepared in accordance with GAAP(except as may be otherwise
specified
in such financial statements or the notes thereto and except that
unaudited financial statements may not contain all footnotes required
by
GAAP).The books, records, and accounts of Priveco accurately and
fairly
reflect, in reasonable detail, the assets, and Liabilities of Priveco.
Priveco has not engaged in any transaction, maintained any bank account,
or used any funds of Priveco, except for transactions, bank accounts,
and
funds which have been and are reflected in the normally maintained
books
and records of Priveco.
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4.11 Absence
of Undisclosed Liabilities.
Neither
Priveco nor any of its subsidiaries has any material Liabilities or obligations
either direct or indirect, matured or unmatured, absolute, contingent or
otherwise that exceed $5,000, which:
(a)
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are
not set forth in the Priveco Financial Statements or have not heretofore
been paid or discharged;
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(b)
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did
not arise in the regular and ordinary course of business under any
agreement, contract, commitment, lease or plan specifically disclosed
in
writing to Pubco; or
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8
(c)
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have
not been incurred in amounts and pursuant to practices consistent
with
past business practice, in or as a result of the regular and ordinary
course of its business since the date of the last Priveco Financial
Statements.
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4.12 Tax
Matters.
(a)
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As
of the date hereof:
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(i)
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each
of Priveco and its subsidiaries has timely filed all tax returns
in
connection with any Taxes which are required to be filed on or prior
to
the date hereof, taking into account any extensions of the filing
deadlines which have been validly granted to Priveco or its subsidiaries,
and
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(ii)
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all
such returns are true and correct in all material
respects;
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(b)
|
each
of Priveco and its subsidiaries has paid all Taxes that have become
or are
due with respect to any period ended on or prior to the date hereof,
and
has established an adequate reserve therefore on its balance sheets
for
those Taxes not yet due and payable, except for any Taxes the non-payment
of which will not have a Priveco Material Adverse
Effect;
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(c)
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neither
Priveco nor any of its subsidiaries is presently under or has received
notice of, any contemplated investigation or audit by regulatory
or
governmental agency of body or any foreign or state taxing authority
concerning any fiscal year or period ended prior to the date hereof;
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(d)
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all
Taxes required to be withheld on or prior to the date hereof from
employees for income Taxes, social security Taxes, unemployment Taxes
and
other similar withholding Taxes have been properly withheld and,
if
required on or prior to the date hereof, have been deposited with
the
appropriate governmental agency;
and
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(e)
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to
the best knowledge of Priveco, the Priveco Financial Statements contain
full provision for all Taxes including any deferred Taxes that may
be
assessed to Priveco or its subsidiaries for the accounting period
ended on
the Priveco Accounting Date or for any prior period in respect of
any
transaction, event or omission occurring, or any profit earned, on
or
prior to the Priveco Accounting Date or for any profit earned by
Priveco
on or prior to the Priveco Accounting Date or for which Priveco is
accountable up to such date and all contingent Liabilities for Taxes
have
been provided for or disclosed in the Priveco Financial
Statements.
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4.13 Absence
of Changes.
Except
as
listed in Schedule 4.13 or as contemplated in this Agreement, since the Priveco
Accounting Date, neither Priveco or any of its subsidiaries has:
(a)
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incurred
any Liabilities, other than Liabilities incurred in the ordinary
course of
business consistent with past practice, or discharged or satisfied
any
lien or encumbrance, or paid any Liabilities, other than in the ordinary
course of business consistent with past practice, or failed to pay
or
discharge when due any Liabilities of which the failure to pay or
discharge has caused or will cause any material damage or risk of
material
loss to it or any of its assets or
properties;
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9
(b)
|
sold,
encumbered, assigned or transferred any material fixed assets or
properties except for ordinary course business transactions consistent
with past practice;
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(c)
|
created,
incurred, assumed or guaranteed any indebtedness for money borrowed,
or
mortgaged, pledged or subjected any of the material assets or properties
of Priveco or its subsidiaries to any mortgage, lien, pledge, security
interest, conditional sales contract or other encumbrance of any
nature
whatsoever;
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(d)
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made
or suffered any amendment or termination of any material agreement,
contract, commitment, lease or plan to which it is a party or by
which it
is bound, or cancelled, modified or waived any substantial debts
or claims
held by it or waived any rights of substantial value, other than
in the
ordinary course of business;
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(e)
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declared,
set aside or paid any dividend or made or agreed to make any other
distribution or payment in respect of its capital shares or redeemed,
purchased or otherwise acquired or agreed to redeem, purchase or
acquire
any of its capital shares or equity
securities;
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(f)
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suffered
any damage, destruction or loss, whether or not covered by insurance,
that
materially and adversely effects its business, operations, assets,
properties or prospects;
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(g)
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suffered
any material adverse change in its business, operations, assets,
properties, prospects or condition (financial or
otherwise);
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(h)
|
received
notice or had knowledge of any actual or threatened labour trouble,
termination, resignation, strike or other occurrence, event or condition
of any similar character which has had or might have an adverse effect
on
its business, operations, assets, properties or
prospects;
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(i)
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made
commitments or agreements for capital expenditures or capital additions
or
betterments exceeding in the aggregate
$5,000;
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(j)
|
other
than in the ordinary course of business, increased the salaries or
other
compensation of, or made any advance (excluding advances for ordinary
and
necessary business expenses) or loan to, any of its employees or
directors
or made any increase in, or any addition to, other benefits to which
any
of its employees or directors may be
entitled;
|
(k)
|
entered
into any transaction other than in the ordinary course of business
consistent with past practice; or
|
(l)
|
agreed,
whether in writing or orally, to do any of the
foregoing.
|
4.14 Absence
of Certain Changes or Events.
Except
as listed in Schedule 4.14, since the Priveco Accounting Date, there has not
been:
(a)
|
a
Priveco Material Adverse Effect;
or
|
10
(b)
|
any
material change by Priveco in its accounting methods, principles
or
practices.
|
4.15 Subsidiaries.
Priveco
does not have any subsidiaries.
4.16 Personal
Property.
Except
for its rights under certain agreements, Priveco has no personal property.
4.17 Employees
and Consultants.
All
employees and consultants of Priveco and its subsidiaries have been paid all
salaries, wages, income and any other sum due and owing to them by Priveco
or
its subsidiaries, as at the end of the most recent completed pay period. Neither
Priveco nor any of its subsidiaries is aware of any labor conflict with any
employees that might reasonably be expected to have a Priveco Material Adverse
Effect. To the best knowledge of Priveco, no employee of Priveco or any of
its
subsidiaries is in violation of any term of any employment contract,
non-disclosure agreement, non-competition agreement or any other contract or
agreement relating to the relationship of such employee with Priveco or its
subsidiaries or any other nature of the business conducted or to be conducted
by
Priveco its subsidiaries.
4.18 Real
Property.
Neither
Priveco nor any of its subsidiaries owns or leases any real property.
Each of
the leases, subleases, claims or other real property interests (collectively,
the “Leases”)
to
which Priveco is bound, as set out in Schedule
4.18,
is
legal, valid, binding, enforceable and in full force and effect in all material
respects. All rental and other payments required to be paid by Priveco and
its
subsidiaries pursuant to any such Leases have been duly paid and no event has
occurred which, upon the passing of time, the giving of notice, or both, would
constitute a breach or default by any party under any of the Leases. The Leases
will continue to be legal, valid, binding, enforceable and in full force and
effect on identical terms following the Closing Date.
4.19 Material
Contracts and Transactions.
Schedule
4.19
attached
hereto lists each material contract, agreement, license, permit, arrangement,
commitment, instrument or contract to which Priveco or any of its subsidiaries
is a party (each, a “Contract”).
Each
Contract is in full force and effect, and there exists no material breach or
violation of or default by Priveco or any of its subsidiaries under any
Contract, or any event that with notice or the lapse of time, or both, will
create a material breach or violation thereof or default under any Contract
by
Priveco or any of its subsidiaries. The continuation, validity, and
effectiveness of each Contract will in no way be affected by the consummation
of
the Transaction contemplated by this Agreement. There exists no actual or
threatened termination, cancellation, or limitation of, or any amendment,
modification, or change to any Contract.
4.20 Certain
Transactions.
Neither
Priveco nor any of its subsidiaries is a guarantor or indemnitor of any
indebtedness of any third party,
including any person, firm or corporation.
4.21 No
Brokers.
Except
as set forth in Schedule 4.21, neither Priveco nor any of its subsidiaries
has
incurred any independent obligation or liability to any party for any brokerage
fees, agent’s commissions, or finder’s fees in connection with the Transaction
contemplated by this Agreement.
11
4.22 Completeness
of Disclosure.
No
representation or warranty by Priveco in this Agreement nor any certificate,
schedule, statement, document or instrument furnished or to be furnished to
Pubco pursuant hereto contains or will contain any untrue statement of a
material fact or omits or will omit to state a material fact required to be
stated herein or therein or necessary to make any statement herein or therein
not materially misleading.
5.
|
REPRESENTATIONS
AND WARRANTIES OF
PUBCO
|
As
of the
Closing, Pubco represents and warrants to Priveco and the Selling Shareholder
and acknowledges that Priveco and the Selling Shareholder are relying upon
such
representations and warranties in connection with the execution, delivery and
performance of this Agreement, notwithstanding any investigation made by or
on
behalf of Priveco or the Selling Shareholder, as follows:
5.1 Organization
and Good Standing.
Pubco
is duly incorporated, organized, validly existing and in good standing under
the
laws of the State of Nevada and has all requisite corporate power and authority
to own, lease and to carry on its business as now being conducted. Pubco is
qualified to do business and is in good standing as a foreign corporation in
each of the jurisdictions in which it owns property, leases property, does
business, or is otherwise required to do so, where the failure to be so
qualified would have a material adverse effect on the businesses, operations,
or
financial condition of Pubco.
5.2 Authority.
Pubco
has all requisite corporate power and authority to execute and deliver this
Agreement and any other document contemplated by this Agreement (collectively,
the “Pubco
Documents”)
to be
signed by Pubco and to perform its obligations hereunder and to consummate
the
transactions contemplated hereby. The execution and delivery of each of the
Pubco Documents by Pubco and the consummation by Pubco of the transactions
contemplated hereby have been duly authorized by its board of directors and
no
other corporate or shareholder proceedings on the part of Pubco is necessary
to
authorize such documents or to consummate the transactions contemplated hereby.
This Agreement has been, and the other Pubco Documents when executed and
delivered by Pubco as contemplated by this Agreement will be, duly executed
and
delivered by Pubco and this Agreement is, and the other Pubco Documents when
executed and delivered by Pubco, as contemplated hereby will be, valid and
binding obligations of Pubco enforceable in accordance with their respective
terms, except:
(a)
|
as
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and other laws of general application affecting enforcement of creditors’
rights generally;
|
(b)
|
as
limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies;
and
|
(c)
|
as
limited by public policy.
|
12
5.3 Capitalization
of Pubco.
The
entire authorized capital stock and other equity securities of Pubco consists
of
50,000,000 shares of common stock with a par value of $0.001 (the “Pubco
Common Stock”)
and
10,000,000 shares of preferred stock with a par value of $0.001 (the
“Preferred
Stock”).
As of
the date of this Agreement, there are 5,119,885 shares of Pubco Common Stock
and
no shares of Preferred Stock issued and outstanding. At closing, there will
be
no more than 2,700,000 shares of Pubco Common Stock and no shares of Preferred
Stock issued and outstanding. All of the issued and outstanding shares of Pubco
Common Stock have been duly authorized, are validly issued, were not issued
in
violation of any pre-emptive rights and are fully paid and non-assessable,
are
not subject to pre-emptive rights and were issued in full compliance with all
federal, state, and local laws, rules and regulations. Except as contemplated
by
this Agreement, there are no outstanding options, warrants, subscriptions,
phantom shares, conversion rights, or other rights, agreements, or commitments
obligating Pubco to issue any additional shares of Pubco Common Stock, or any
other securities convertible into, exchangeable for, or evidencing the right
to
subscribe for or acquire from Pubco any shares of Pubco Common Stock as of
the
date of this Agreement. There are no agreements purporting to restrict the
transfer of the Pubco Common Stock, no voting agreements, voting trusts, or
other arrangements restricting or affecting the voting of the Pubco Common
Stock.
5.4 Directors
and Officers of Pubco.
The
duly elected or appointed directors and the duly appointed officers of Pubco
are
as listed on Schedule 5.4.
5.5 Corporate
Records of Pubco.
The
corporate records of Pubco, as required to be maintained by it pursuant to
the
laws of the State of Nevada, are accurate, complete and current in all material
respects, and the minute book of Pubco is, in all material respects, correct
and
contains all material records required by the law of the State of Nevada in
regards to all proceedings, consents, actions and meetings of the shareholders
and the board of directors of Pubco.
5.6 Non-Contravention.
Neither
the execution, delivery and performance of this Agreement, nor the consummation
of the Transaction, will:
(a)
|
conflict
with, result in a violation of, cause a default under (with or without
notice, lapse of time or both) or give rise to a right of termination,
amendment, cancellation or acceleration of any obligation contained
in or
the loss of any material benefit under, or result in the creation
of any
lien, security interest, charge or encumbrance upon any of the material
properties or assets of Pubco under any term, condition or provision
of
any loan or credit agreement, note, debenture, bond, mortgage, indenture,
lease or other agreement, instrument, permit, license, judgment,
order,
decree, statute, law, ordinance, rule or regulation applicable to
Pubco or
any of its material property or
assets;
|
(b)
|
violate
any provision of the applicable incorporation or charter documents
of
Pubco; or
|
(c)
|
violate
any order, writ, injunction, decree, statute, rule, or regulation
of any
court or governmental or regulatory authority applicable to Pubco
or any
of its material property or assets.
|
5.7 Validity
of Pubco Common Stock Issuable upon the Transaction.
The
Pubco Shares to be issued to the Selling Shareholder upon consummation of the
Transaction in accordance with this Agreement will, upon issuance, have been
duly and validly authorized and, when so issued in accordance with the terms
of
this Agreement, will be duly and validly issued, fully paid and
non-assessable.
13
5.8 Actions
and Proceedings.
To the
best knowledge of Pubco, there is no claim, charge, arbitration, grievance,
action, suit, investigation or proceeding by or before any court, arbiter,
administrative agency or other governmental authority now pending or, to the
best knowledge of Pubco, threatened against Pubco which involves any of the
business, or the properties or assets of Pubco that, if adversely resolved
or
determined, would have a material adverse effect on the business, operations,
assets, properties, prospects or conditions of Pubco taken as a whole (a
“Pubco
Material Adverse Effect”).
There
is no reasonable basis for any claim or action that, based upon the likelihood
of its being asserted and its success if asserted, would have such a Pubco
Material Adverse Effect.
5.9 Compliance.
(a)
|
To
the best knowledge of Pubco, Pubco is in compliance with, is not
in
default or violation in any material respect under, and has not been
charged with or received any notice at any time of any material violation
of any statute, law, ordinance, regulation, rule, decree or other
applicable regulation to the business or operations of
Pubco;
|
(b)
|
To
the best knowledge of Pubco, Pubco is not subject to any judgment,
order
or decree entered in any lawsuit or proceeding applicable to its
business
and operations that would constitute a Pubco Material Adverse
Effect;
|
(c)
|
Pubco
has duly filed all reports and returns required to be filed by it
with
governmental authorities and has obtained all governmental permits
and
other governmental consents, except as may be required after the
execution
of this Agreement. All of such permits and consents are in full force
and
effect, and no proceedings for the suspension or cancellation of
any of
them, and no investigation relating to any of them, is pending or
to the
best knowledge of Pubco, threatened, and none of them will be affected
in
a material adverse manner by the consummation of the Transaction;
and
|
(d)
|
Pubco
has operated in material compliance with all laws, rules, statutes,
ordinances, orders and regulations applicable to its business. Pubco
has
not received any notice of any violation thereof, nor is Pubco aware
of
any valid basis therefore.
|
5.10 Filings,
Consents and Approvals.
No
filing or registration with, no notice to and no permit, authorization, consent,
or approval of any public or governmental body or authority or other person
or
entity is necessary for the consummation by Pubco of the Transaction
contemplated by this Agreement to continue to conduct its business after the
Closing Date in a manner which is consistent with that in which it is presently
conducted.
5.11 SEC
Filings.
Pubco
has furnished or made available to Priveco and the Selling Shareholder a true
and complete copy of each report, schedule, registration statement and proxy
statement filed by Pubco with the SEC (collectively, and as such documents
have
since the time of their filing been amended, the “Pubco
SEC Documents”).
As of
their respective dates, the Pubco SEC Documents complied in all material
respects with the requirements of the
Securities Act, or the Exchange Act, as the case may be, and the rules and
regulations of the SEC thereunder applicable to such Pubco SEC
Documents.
The
Pubco SEC Documents constitute all of the documents and reports that Pubco
was
required to file with the SEC pursuant to the Securities Exchange Act of 1934
(“Exchange Act”) and the rules and regulations promulgated thereunder by the
SEC.
14
5.12 Financial
Representations.
Included with the Pubco SEC Documents are true, correct, and complete copies
of
audited balance sheets for Pubco dated as of June 30, 2007 and unaudited balance
sheets for Pubco dated as of September 30, 2007 (the “Pubco
Accounting Date”),
together with related statements of income, cash flows, and changes in
shareholder’s equity for the fiscal year and interim period then ended
(collectively, the “Pubco
Financial Statements”).
The
Pubco Financial Statements:
(a)
|
are
in accordance with the books and records of
Pubco;
|
(b)
|
present
fairly the financial condition of Pubco as of the respective dates
indicated and the results of operations for such periods;
and
|
(c)
|
have
been prepared in accordance with
GAAP.
|
Pubco
has
not received any advice or notification from its independent certified public
accountants that Pubco has used any improper accounting practice that would
have
the effect of not reflecting or incorrectly reflecting in the Pubco Financial
Statements or the books and records of Pubco, any properties, assets,
Liabilities, revenues, or expenses. The books, records, and accounts of Pubco
accurately and fairly reflect, in reasonable detail, the assets, and Liabilities
of Pubco. Pubco has not engaged in any transaction, maintained any bank account,
or used any funds of Pubco, except for transactions, bank accounts, and funds
which have been and are reflected in the normally maintained books and records
of Pubco.
5.13 Absence
of Undisclosed Liabilities.
Pubco
has no material Liabilities or obligations either direct or indirect, matured
or
unmatured, absolute, contingent or otherwise, which:
(a)
|
are
not set forth in the Pubco Financial Statements or have not heretofore
been paid or discharged;
|
(b)
|
did
not arise in the regular and ordinary course of business under any
agreement, contract, commitment, lease or plan specifically disclosed
in
writing to Priveco; or
|
(c)
|
have
not been incurred in amounts and pursuant to practices consistent
with
past business practice, in or as a result of the regular and ordinary
course of its business since the date of the last Pubco Financial
Statements.
|
5.14 Tax
Matters.
(a)
|
As
of the date hereof:
|
(i)
|
Pubco
has timely filed all tax returns in connection with any Taxes which
are
required to be filed on or prior to the date hereof, taking into
account
any extensions of the filing deadlines which have been validly granted
to
them, and
|
15
(ii)
|
all
such returns are true and correct in all material
respects;
|
(b)
|
Pubco
has paid all Taxes that have become or are due with respect to any
period
ended on or prior to the date
hereof;
|
(c)
|
Pubco
is not presently under and has not received notice of, any contemplated
investigation or audit by the Canada Revenue Agency or the Internal
Revenue Service or any foreign or state taxing authority concerning
any
fiscal year or period ended prior to the date
hereof;
|
(d)
|
All
Taxes required to be withheld on or prior to the date hereof from
employees for income Taxes, social security Taxes, unemployment Taxes
and
other similar withholding Taxes have been properly withheld and,
if
required on or prior to the date hereof, have been deposited with
the
appropriate governmental agency;
and
|
(e)
|
To
the best knowledge of Pubco, the Pubco Financial Statements contain
full
provision for all Taxes including any deferred Taxes that may be
assessed
to Pubco for the accounting period ended on the Pubco Accounting
Date or
for any prior period in respect of any transaction, event or omission
occurring, or any profit earned, on or prior to the Pubco Accounting
Date
or for any profit earned by Pubco on or prior to the Pubco Accounting
Date
or for which Pubco is accountable up to such date and all contingent
Liabilities for Taxes have been provided for or disclosed in the
Pubco
Financial Statements.
|
5.15 Absence
of Changes.
Except
as set forth in Schedule 5.15 or as contemplated in this Agreement, since the
Pubco Accounting Date, except as disclosed in the Public SEC Documents and
except as contemplated in this Agreement, Pubco has not:
(a)
|
incurred
any Liabilities, other than Liabilities incurred in the ordinary
course of
business consistent with past practice, or discharged or satisfied
any
lien or encumbrance, or paid any Liabilities, other than in the ordinary
course of business consistent with past practice, or failed to pay
or
discharge when due any Liabilities of which the failure to pay or
discharge has caused or will cause any material damage or risk of
material
loss to it or any of its assets or
properties;
|
(b)
|
sold,
encumbered, assigned or transferred any material fixed assets or
properties;
|
(c)
|
created,
incurred, assumed or guaranteed any indebtedness for money borrowed,
or
mortgaged, pledged or subjected any of the material assets or properties
of Pubco to any mortgage, lien, pledge, security interest, conditional
sales contract or other encumbrance of any nature
whatsoever;
|
(d)
|
made
or suffered any amendment or termination of any material agreement,
contract, commitment, lease or plan to which it is a party or by
which it
is bound, or cancelled, modified or waived any substantial debts
or claims
held by it or waived any rights of substantial value, other than
in the
ordinary course of business;
|
(e)
|
declared,
set aside or paid any dividend or made or agreed to make any other
distribution or payment in respect of its capital shares or redeemed,
purchased or otherwise acquired or agreed to redeem, purchase or
acquire
any of its capital shares or equity
securities;
|
16
(f)
|
suffered
any damage, destruction or loss, whether or not covered by insurance,
that
materially and adversely effects its business, operations, assets,
properties or prospects;
|
(g)
|
suffered
any material adverse change in its business, operations, assets,
properties, prospects or condition (financial or
otherwise);
|
(h)
|
received
notice or had knowledge of any actual or threatened labor trouble,
termination, resignation, strike or other occurrence, event or condition
of any similar character which has had or might have an adverse effect
on
its business, operations, assets, properties or
prospects;
|
(i)
|
made
commitments or agreements for capital expenditures or capital additions
or
betterments exceeding in the aggregate
$5,000;
|
(j)
|
other
than in the ordinary course of business, increased the salaries or
other
compensation of, or made any advance (excluding advances for ordinary
and
necessary business expenses) or loan to, any of its employees or
directors
or made any increase in, or any addition to, other benefits to which
any
of its employees or directors may be
entitled;
|
(k)
|
entered
into any transaction other than in the ordinary course of business
consistent with past practice; or
|
(l)
|
agreed,
whether in writing or orally, to do any of the
foregoing.
|
5.16 Absence
of Certain Changes or Events.
Except
as set forth in Schedule 5.16 or as contemplated in this Agreement, since the
Pubco Accounting Date, except as and to the extent disclosed in the Pubco SEC
Documents, there has not been:
(a)
|
a
Pubco Material Adverse Effect; or
|
(b)
|
any
material change by Pubco in its accounting methods, principles or
practices.
|
5.17 Subsidiaries.
Pubco
does not have any subsidiaries or agreements of any nature to acquire any
subsidiary or to acquire or lease any other business operations, except as
disclosed in the Pubco SEC Documents.
5.18 Personal
Property.
There
are no material equipment, furniture, fixtures and other tangible personal
property and assets owned or leased by Pubco, except as disclosed in the Pubco
SEC Documents.
5.19 Employees
and Consultants.
Pubco
does not have any employees or consultants, except as disclosed in the Pubco
SEC
Documents.
17
5.20 Material
Contracts and Transactions.
Other
than as expressly contemplated by this Agreement and the Financing, there are
no
material contracts, agreements, licenses, permits, arrangements, commitments,
instruments, understandings or contracts, whether written or oral, express
or
implied, contingent, fixed or otherwise, to which Pubco is a party except as
disclosed in writing to Priveco or as disclosed in the Pubco SEC
Documents.
5.21 No
Brokers.
Other
than as set forth in Schedule 5.21, Pubco has not incurred any obligation or
liability to any party for any brokerage fees, agent’s commissions, or finder’s
fees in connection with the Transaction contemplated by this
Agreement.
5.22 Internal
Accounting Controls.
Pubco
maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and (iv)
the recorded accountability for assets is compared with the existing assets
at
reasonable intervals and appropriate action is taken with respect to any
differences.
Pubco
has established disclosure controls and procedures (as defined in Exchange
Act
Rules 13a-15(e) and 15d-15(e)) for Pubco and designed such disclosure controls
and procedures to ensure that material information relating to Pubco is made
known to the certifying officers by others within those entities, particularly
during the period in which Pubco’s Form 10-KSB or 10-QSB, as the case may be,
for all applicable periods prior to the Closing Date is being prepared. Pubco’s
certifying officers have evaluated the effectiveness of Pubco’s controls and
procedures as of end of the filing period prior to the filing date of its last
Form 10-KSB or Form 10-QSB (such date, the “Evaluation
Date”).
Pubco
presented in its most recently filed Form 10-KSB or Form 10-QSB the conclusions
of the certifying officers about the effectiveness of the disclosure controls
and procedures based on their evaluations as of the Evaluation Date. Since
the
Evaluation Date, there have been no significant changes in Pubco’s internal
controls (as such term is defined in Item 307(b) of Regulation S-K under the
Exchange Act) or, to Pubco’s knowledge, in other factors that could
significantly affect Pubco’s internal controls.
5.23 Listing
and Maintenance Requirements.
Pubco
is currently quoted on the OTC Bulletin Board and has not, in the 12 months
preceding the date hereof, received any notice from the OTC Bulletin Board
or
the NASD or any trading market on which Pubco’s common stock is or has been
listed or quoted to the effect that Pubco is not in compliance with the quoting,
listing or maintenance requirements of the OTCBB or such other trading
market.
5.24 Application
of Takeover Protections.
Pubco
and its board of directors have taken all necessary action, if any, in order
to
render inapplicable any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or other similar
anti-takeover provision under Pubco’s certificate or articles of incorporation
(or similar charter documents) or the laws of its state of incorporation that
is
or could become applicable to Pubco as a result of the transactions under this
Agreement or the exercise of any rights pursuant to this Agreement.
5.25 No
SEC
or FINRA Inquiries.
Neither
the Pubco nor any of its past or present officers or directors is the subject
of
any formal or informal inquiry or investigation by the SEC or FINRA. Pubco
currently does not have any outstanding comment letters or other correspondences
from the SEC or the FINRA.
18
5.26 No
Liabilities.
Upon
Closing, Pubco shall have no direct, indirect or contingent liabilities
outstanding aside from liabilities listed on Schedule
5.26.
5.27 Completeness
of Disclosure.
No
representation or warranty by Pubco in this Agreement nor any certificate,
schedule, statement, document or instrument furnished or to be furnished to
Priveco pursuant hereto contains or will contain any untrue statement of a
material fact or omits or will omit to state a material fact required to be
stated herein or therein or necessary to make any statement herein or therein
not materially misleading.
6.
|
CLOSING
CONDITIONS
|
6.1 Conditions
Precedent to Closing by Pubco.
The
obligation of Pubco to consummate the Transaction is subject to the satisfaction
or written waiver of the conditions set forth below by a date mutually agreed
upon by the parties hereto in writing and in accordance with Section
11.6.
The
Closing of the Transaction contemplated by this Agreement will be deemed to
mean
a waiver of all conditions to Closing. These conditions precedent are for the
benefit of Pubco and may be waived by Pubco in its sole discretion.
(a)
|
Representations
and Warranties.
The representations and warranties of Priveco and the Selling Shareholder
set forth in this Agreement will be true, correct and complete in
all
respects as of the Closing Date, as though made on and as of the
Closing
Date and Priveco will have delivered to Pubco a certificate dated
as of
the Closing Date, to the effect that the representations and warranties
made by Priveco in this Agreement are true and correct in all material
respects.
|
(b)
|
Performance.
All of the covenants and obligations that Priveco and the Selling
Shareholder are required to perform or to comply with pursuant to
this
Agreement at or prior to the Closing must have been performed and
complied
with in all material respects.
|
(c)
|
Transaction
Documents.
This Agreement, the Priveco Documents, the Priveco Financial Statements
and all other documents necessary or reasonably required to consummate
the
Transaction, all in form and substance reasonably satisfactory to
Pubco,
will have been executed and delivered to
Pubco.
|
(d)
|
Secretary’s
Certificate – Priveco.
Pubco will have received a certificate from the Secretary of Priveco
attaching:
|
(i)
|
a
copy of Priveco’s Constitution, Articles of Association and all other
incorporation documents, as amended through the Closing Date;
and
|
(ii)
|
copies
of resolutions duly adopted by the board of directors of Priveco
approving
the execution and delivery of this Agreement and the consummation
of the
transactions contemplated herein.
|
(e)
|
Third
Party Consents.
Pubco will have received duly executed copies of all third party
consents
and approvals contemplated by this Agreement, in form and substance
reasonably satisfactory to
Pubco.
|
19
(f)
|
No
Material Adverse Change.
No Priveco Material Adverse Effect will have occurred since the date
of
this Agreement.
|
(g)
|
No
Action.
No suit, action, or proceeding will be pending or threatened which
would:
|
(i)
|
prevent
the consummation of any of the transactions contemplated by this
Agreement; or
|
(ii)
|
cause
the Transaction to be rescinded following
consummation.
|
(h)
|
Lock-Up/Leak-Out.
The persons set forth in Schedule 6.1(h) shall have entered into
Lock-Up/Leak-Out Agreements with the Company in which 8,041,600 shares
out
of the 8,200,000 total shares outstanding shall be subject to certain
brokers’ requirements and manner of sale requirements. 158,400 free
trading shares shall not be subject to lock-up/leak-out
agreements.
|
(i)
|
Employment
Agreement.
The person set forth in Schedule 6.1(i) shall have entered into an
Employment Agreement with the
Company.
|
6.2 Conditions
Precedent to Closing by Priveco.
The
obligation of Priveco and the Selling Shareholder to consummate the Transaction
is subject to the satisfaction or written waiver of the conditions set forth
below by a date mutually agreed upon by the parties hereto in writing and in
accordance with Section 11.6.
The
Closing of the Transaction will be deemed to mean a waiver of all conditions
to
Closing. These conditions precedent are for the benefit of Priveco and the
Selling Shareholder and may be waived by Priveco and the Selling Shareholder
in
their discretion.
(a)
|
Representations
and Warranties.
The representations and warranties of Pubco set forth in this Agreement
will be true, correct and complete in all respects as of the Closing
Date,
as though made on and as of the Closing Date and Pubco will have
delivered
to Priveco a certificate dated the Closing Date, to the effect that
the
representations and warranties made by Pubco in this Agreement are
true
and correct in all material
respects.
|
(b)
|
Performance.
All of the covenants and obligations that Pubco is required to perform
or
to comply with pursuant to this Agreement at or prior to the Closing
must
have been performed and complied with in all material respects. Pubco
must
have delivered each of the documents required to be delivered by
it
pursuant to this Agreement.
|
(c)
|
Transaction
Documents.
This Agreement, the Pubco Documents and all other documents necessary
or
reasonably required to consummate the Transaction, all in form and
substance reasonably satisfactory to Priveco, will have been executed
and
delivered by Pubco.
|
(d)
|
Secretary’s
Certificate - Pubco.
Priveco will have received a certificate from the Secretary of Pubco
attaching:
|
20
(i)
|
a
copy of Pubco’s Articles of Incorporation and Bylaws, as amended through
the Closing Date; and
|
(ii)
|
copies
of resolutions duly adopted by the board of directors of Pubco approving
the execution and delivery of this Agreement and the consummation
of the
transactions contemplated herein.
|
(e)
|
Legal
Opinion – Pubco.
Priveco will have received a legal opinion, dated as of the Closing
Date,
from counsel for Pubco, and such other local or special legal counsel
as
is appropriate, all of which opinion shall be in the form and substance
reasonably satisfactory to Priveco and its
counsel.
|
(f)
|
Third
Party Consents.
Priveco will have received from Pubco duly executed copies of all
third-party consents, permits, authorisations and approvals of any
public,
regulatory (including the SEC) or governmental body or authority
or person
or entity contemplated by this Agreement, in the form and substance
reasonably satisfactory to Priveco.
|
(g)
|
Financing.
At least $300,000 of the Financing will have closed or has reasonable
assurances that the Financing will close concurrently with the Closing
either as Priveco or Pubco securities. Priveco covenants that the
other
$500,000 of the Financing will close within 21
days.
|
(h)
|
No
Material Adverse Change.
No Pubco Material Adverse Effect will have occurred since the date
of this
Agreement.
|
(i)
|
No
Action.
No suit, action, or proceeding will be pending or threatened before
any
governmental or regulatory authority wherein an unfavorable judgment,
order, decree, stipulation, injunction or charge
would:
|
(i)
|
prevent
the consummation of any of the transactions contemplated by this
Agreement; or
|
(ii)
|
cause
the Transaction to be rescinded following
consummation.
|
(j)
|
Outstanding
Shares.
On the Closing Date, there will be no more than 2,700,000 common
shares
issued and outstanding in the capital of Pubco;
|
(k)
|
Public
Market.
On the Closing Date, the
shares of Pubco Common Stock will be quoted on the FINRA’s OTC Bulletin
Board.
|
(l)
|
Resignations.
Priveco will have received the written resignation from all officers
of
Pubco and all directors of Pubco except Xx. Xxxxxxx XxXxxxxx-Law
who will
remain as a Pubco director, effective as of the Closing Date, in
the form
and substance reasonably satisfactory to Priveco.
|
(m)
|
Cancellation.
2,419,885 Pubco common shares held by Major Pubco Shareholder will
be
cancelled.
|
21
(n)
|
Transfer.
1,200,000 freely tradable and registered Pubco common shares (of
which,
the parties acknowledge that 750,000 shares have already been transferred)
held by certain shareholders shall be transferred to the shareholders
set
forth in Schedule 6.2(n).
|
(o)
|
Share
Issuance.
Pubco shall sell shares to the entities or persons set forth in Schedule
6.2(o). 2,582,563 shares of Pubco Common Stock to RMK Emerging Growth
Opportunity Fund LP at $0.0214 per share and 175,000 shares to 4
Peas,
LLC, 592,437 to Terrace Lane, LLC; 400,000 shares to EVI, LLC; 100,000
shares of Pubco Common Stock to each of Nalp Capital, LLC and AMS
Development, LLC; and 150,000 to Xxxxx X. Xxxxxxxx..
|
7.
|
ADDITIONAL
COVENANTS OF THE
PARTIES
|
7.1 Access
and Investigation.
Between
the date of this Agreement and the Closing Date, Priveco, on the one hand,
and
Pubco, on the other hand, will, and will cause each of their respective
representatives to:
(a)
|
afford
the other and its representatives full and free access to its personnel,
properties, assets, contracts, books and records, and other documents
and
data;
|
(b)
|
furnish
the other and its representatives with copies of all such contracts,
books
and records, and other existing documents and data as required by
this
Agreement and as the other may otherwise reasonably request;
and
|
(c)
|
furnish
the other and its representatives with such additional financial,
operating, and other data and information as the other may reasonably
request.
|
All
of
such access, investigation and communication by a party and its representatives
will be conducted during normal business hours and in a manner designed not
to
interfere unduly with the normal business operations of the other party. Each
party will instruct its auditors to co-operate with the other party and its
representatives in connection with such investigations.
7.2 Confidentiality.
All
information regarding the business of Priveco including, without limitation,
financial information that Priveco provides to Pubco during Pubco’s due
diligence investigation of Priveco will be kept in strict confidence by Pubco
and will not be used (except in connection with due diligence), dealt with,
exploited or commercialized by Pubco or disclosed to any third party (other
than
Pubco’s professional accounting and legal advisors) without the prior written
consent of Priveco. If the Transaction contemplated by this Agreement does
not
proceed for any reason, then upon receipt of a written request from Priveco,
Pubco will immediately return to Priveco (or as directed by Priveco) any
information received regarding Priveco’s business. Likewise, all information
regarding the business of Pubco including, without limitation, financial
information that Pubco provides to Priveco during its due diligence
investigation of Pubco will be kept in strict confidence by Priveco and will
not
be used (except in connection with due diligence), dealt with, exploited or
commercialized by Priveco or disclosed to any third party (other than Priveco’s
professional accounting and legal advisors) without Pubco’s prior written
consent. If the Transaction contemplated by this Agreement does not proceed
for
any reason, then upon receipt of a written request from Pubco, each party will
immediately return to any other party (or as directed by such party) any
information received regarding such party’s business.
22
7.3 Notification.
Between
the date of this Agreement and the Closing Date, each of the parties to this
Agreement will promptly notify the other parties in writing if it becomes aware
of any fact or condition that causes or constitutes a material breach of any
of
its representations and warranties as of the date of this Agreement, if it
becomes aware of the occurrence after the date of this Agreement of any fact
or
condition that would cause or constitute a material breach of any such
representation or warranty had such representation or warranty been made as
of
the time of occurrence or discovery of such fact or condition. Should any such
fact or condition require any change in the Schedules relating to such party,
such party will promptly deliver to the other parties a supplement to the
Schedules specifying such change. During the same period, each party will
promptly notify the other parties of the occurrence of any material breach
of
any of its covenants in this Agreement or of the occurrence of any event that
may make the satisfaction of such conditions impossible or
unlikely.
7.4 Exclusivity.
Until
such time, if any, as this Agreement is terminated pursuant to this Agreement,
Priveco and Pubco will not, directly or indirectly, solicit, initiate, entertain
or accept any inquiries or proposals from, discuss or negotiate with, provide
any non-public information to, or consider the merits of any unsolicited
inquiries or proposals from, any person or entity relating to any transaction
involving the sale of the business or assets (other than in the ordinary course
of business), or any of the capital stock of Priveco or Pubco, as applicable,
or
any merger, consolidation, business combination, or similar transaction other
than as contemplated by this Agreement.
7.5 Conduct
of Priveco and Pubco Businesses Prior to Closing.
From
the date of this Agreement to the Closing Date, and except to the extent that
Pubco otherwise consents in writing, Priveco will operate its business
substantially as presently operated and only in the ordinary course and in
compliance with all applicable laws, and use its best efforts to preserve intact
its good reputation and present business organization and to preserve its
relationships with persons having business dealings with it. Likewise, from
the
date of this Agreement to the Closing Date, and except to the extent that
Priveco otherwise consents in writing, Pubco will operate its business
substantially as presently operated and only in the ordinary course and in
compliance with all applicable laws, and use its best efforts to preserve intact
its good reputation and present business organization and to preserve its
relationships with persons having business dealings with it.
7.6 Certain
Acts Prohibited – Priveco.
Except
as expressly contemplated by this Agreement or for purposes in furtherance
of
this Agreement, between the date of this Agreement and the Closing Date, Priveco
will not, without the prior written consent of Pubco:
(a)
|
amend
its Constitution, Articles of Association or other incorporation
documents;
|
(b)
|
incur
any liability or obligation other than in the ordinary course of
business
or encumber or permit the encumbrance of any properties or assets
of
Priveco except in the ordinary course of
business;
|
23
(c)
|
dispose
of or contract to dispose of any Priveco property or assets, including
the
Intellectual Property Assets, except in the ordinary course of business
consistent with past practice;
|
(d)
|
issue,
deliver, sell, pledge or otherwise encumber or subject to any lien
any
shares of the Priveco Common Stock, or any rights, warrants or options
to
acquire, any such shares, voting securities or convertible
securities;
|
(e)
|
not:
|
(i)
|
declare,
set aside or pay any dividends on, or make any other distributions
in
respect of the Priveco Common Stock,
or
|
(ii)
|
split,
combine or reclassify any Priveco Common Stock or issue or authorize
the
issuance of any other securities in respect of, in lieu of or in
substitution for shares of Priveco Common Stock;
or
|
(f)
|
not
materially increase benefits or compensation expenses of Priveco,
other
than as contemplated by the terms of any employment agreement in
existence
on the date of this Agreement, increase the cash compensation of
any
director, executive officer or other key employee or pay any benefit
or
amount not required by a plan or arrangement as in effect on the
date of
this Agreement to any such person.
|
7.7 Certain
Acts Prohibited - Pubco.
Except
as expressly contemplated by this Agreement and the Financing, between the
date
of this Agreement and the Closing Date, Pubco will not, without the prior
written consent of Priveco:
(a)
|
incur
any liability or obligation or encumber or permit the encumbrance
of any
properties or assets of Pubco except in the ordinary course of business
consistent with past practice;
|
(b)
|
dispose
of or contract to dispose of any Pubco property or assets except
in the
ordinary course of business consistent with past practice;
|
(c)
|
declare,
set aside or pay any dividends on, or make any other distributions
in
respect of the Pubco Common Stock;
or
|
(d)
|
materially
increase benefits or compensation expenses of Pubco, increase the
cash
compensation of any director, executive officer or other key employee
or
pay any benefit or amount to any such
person.
|
7.8 Public
Announcements.
Pubco
and Priveco each agree that they will not release or issue any reports or
statements or make any public announcements relating to this Agreement or the
Transaction contemplated herein without the prior written consent of the other
party, except as may be required upon written advice of counsel to comply with
applicable laws or regulatory requirements after consulting with the other
party
hereto and seeking their reasonable consent to such
announcement.
24
7.9 Pubco
Board of Directors.
The
current directors of Pubco will adopt resolutions appointing, Xxxxxxx Dash
and
Xxxxxxx X. Xxxxx to the Board of Directors of Pubco, which appointment will
be
effective on Closing or, if applicable, ten days after the filing of a Schedule
14f-1 in connection with the Transaction. If applicable, Pubco will prepare
and
file a Schedule 14f-1 information statement with the SEC as required under
the
Exchange Act in connection with the change of directors arising in connection
with the completion of the Transaction.
7.10 Pubco
Officers.
The
current directors of Pubco will adopt resolutions appointing, Xxxxxxx Dash
(as
Chief Executive Officer, acting Chief Financial Officer and Treasurer) as
officers of Pubco and will accept the resignations of Xxxxxxx XxXxxxxx-Law
(as
President, Secretary, PEO and PFO) and Xxxxxxxxx Xxxxxxx (Treasurer), which
appointment and resignation will be effective on Closing or, if applicable,
ten
days after the filing of a Schedule 14f-1 in connection with the
Transaction.
7.11 Assumption
of Liabilities.
The
Major Pubco Shareholder shall execute forms of agreements agreeing to assume
all
prior liabilities of Pubco.
7.12 Cancellation.
2,419,885 Pubco common shares held by Major Pubco Shareholder as set forth
in
Schedule
7.12
will be
cancelled.
7.13 Transfer.
1,200,000 freely tradable and registered Pubco common shares (of which, the
parties acknowledge that 750,000 shares have already been transferred) held
by
certain shareholders shall be transferred to the shareholders set forth in
Schedule 6.2(n).
8.
|
CLOSING
|
8.1 Closing.
The
Closing shall take place on the Closing Date at the offices of the lawyers
for
Pubco or at such other location as agreed to by the parties. Notwithstanding
the
location of the Closing, each party agrees that the Closing may be completed
by
the exchange of undertakings between the respective legal counsel for Priveco
and Pubco, provided such undertakings are satisfactory to each party’s
respective legal counsel.
8.2 Closing
Deliveries of Priveco and the Selling Shareholder.
At
Closing, Priveco and the Selling Shareholder will deliver or cause to be
delivered the following, fully executed and in the form and substance reasonably
satisfactory to Pubco:
(a)
|
copies
of all resolutions and/or consent actions adopted by or on behalf
of the
board of directors of Priveco evidencing approval of this Agreement
and
the Transaction;
|
(b)
|
if
the Selling Shareholder appoints any person, by power of attorney
or
equivalent, to execute this Agreement or any other agreement, document,
instrument or certificate contemplated by this agreement, on behalf
of the
Selling Shareholder, a valid and binding power of attorney or equivalent
from such Selling Shareholder;
|
(c)
|
share
certificates representing the Priveco Shares as required by Section
0
of
this Agreement;
|
(d)
|
all
certificates and other documents required by Sections 0
and 6.1
of
this Agreement;
|
25
(e)
|
a
certificate of an officer of Priveco, dated as of Closing, certifying
that:
|
(i)
|
each
covenant and obligation of Priveco has been complied with;
and
|
(ii)
|
each
representation, warranty and covenant of Priveco is true and correct
at
the Closing as if made on and as of the
Closing;
|
(f)
|
the
Priveco Documents, the Priveco Financial Statements and any other
necessary documents, each duly executed by Priveco, as required to
give
effect to the Transaction;
|
(g)
|
copies
of all agreements and arrangements required by Section of this
Agreement.
|
8.3 Closing
Deliveries of Pubco.
At
Closing, Pubco will deliver or cause to be delivered the following, fully
executed and in the form and substance reasonably satisfactory to
Priveco:
(a)
|
copies
of all resolutions and/or consent actions adopted by or on behalf
of the
board of directors of Pubco evidencing approval of this Agreement
and the
Transaction;
|
(b)
|
all
certificates and other documents required by Section 6.2
of
this Agreement;
|
(c)
|
a
certificate of an officer of Pubco, dated as of Closing, certifying
that:
|
(i)
|
each
covenant and obligation of Pubco has been complied with;
and
|
(ii)
|
each
representation, warranty and covenant of Pubco is true and correct
at the
Closing as if made on and as of the
Closing;
|
(d)
|
the
Pubco Documents and any other necessary documents, each duly executed
by
Pubco, as required to give effect to the Transaction;
and
|
(e)
|
the
resolutions required to
effect the changes contemplated in Sections 7.9
and 7.10
of
this Agreement.
|
8.4 Additional
Closing Delivery of Pubco.
At
Closing, Pubco will deliver or cause to be delivered the share certificates
representing the Pubco Shares.
9.
|
TERMINATION
|
9.1 Termination.
This
Agreement may be terminated at any time prior to the Closing Date contemplated
hereby by:
(a)
|
mutual
agreement of Pubco and Priveco;
|
(b)
|
Pubco,
if there has been a material breach by Priveco or the Selling Shareholder
of any material representation, warranty, covenant or agreement set
forth
in this Agreement on the part of Priveco or the Selling Shareholder
that
is not cured, to the reasonable satisfaction of Pubco, within ten
business
days after notice of such breach is given by Pubco (except that no
cure
period will be provided for a breach by Priveco or the Selling Shareholder
that by its nature cannot be
cured);
|
26
(c)
|
Priveco,
if there has been a material breach by Pubco of any material
representation, warranty, covenant or agreement set forth in this
Agreement on the part of Pubco that is not cured by the breaching
party,
to the reasonable satisfaction of Priveco, within ten business days
after
notice of such breach is given by Priveco (except that no cure period
will
be provided for a breach by Pubco that by its nature cannot be
cured);
|
(d)
|
Pubco
or Priveco, if the Transaction contemplated by this Agreement has
not been
consummated prior to 21 days after the delivery of the Priveco Financial
Statements, unless the parties hereto agree to extend such date in
writing; or March 31, 2008.
|
(e)
|
Pubco
or Priveco if any permanent injunction or other order of a governmental
entity of competent authority preventing the consummation of the
Transaction contemplated by this Agreement has become final and
non-appealable.
|
9.2 Effect
of Termination.
In the
event of the termination of this Agreement as provided in Section 9.1,
this
Agreement will be of no further force or effect, provided, however, that no
termination of this Agreement will relieve any party of liability for any
breaches of this Agreement that are based on a wrongful refusal or failure
to
perform any obligations.
10.
|
INDEMNIFICATION,
REMEDIES, SURVIVAL
|
10.1 Certain
Definitions.
For the
purposes of this Article
10, the terms “Loss”
and
“Losses”
mean
any and all demands, claims, actions or causes of action, assessments, losses,
damages, Liabilities, costs, and expenses, including without limitation,
interest, penalties, fines and reasonable attorneys, accountants and other
professional fees and expenses, but excluding any indirect, consequential or
punitive damages suffered by Pubco or Priveco including damages for lost profits
or lost business opportunities.
10.2 Agreement
of Priveco to Indemnify.
Priveco
will indemnify, defend, and hold harmless, to the full extent of the law, Pubco
and its shareholders from, against, and in respect of any and all Losses
asserted against, relating to, imposed upon, or incurred by Pubco and its
shareholders by reason of, resulting from, based upon or arising out
of:.
(a)
|
the
breach by Priveco of any representation or warranty of Priveco contained
in or made pursuant to this Agreement, any Priveco Document or any
certificate or other instrument delivered pursuant to this Agreement;
or
|
(b)
|
the
breach or partial breach by Priveco of any covenant or agreement
of
Priveco made in or pursuant to this Agreement, any Priveco Document
or any
certificate or other instrument delivered pursuant to this
Agreement.
|
10.3 Agreement
of Major Pubco Shareholder to Indemnify.
Major
Pubco Shareholders will indemnify, defend, and hold harmless, to the full extent
of the law, Priveco and the Selling Shareholder from, against, for, and in
respect of any and all Losses asserted against, relating to, imposed upon,
or
incurred by Priveco and the Selling Shareholder by reason of, resulting from,
based upon or arising out of:
27
(a)
|
the
breach by Pubco of any representation or warranty of Pubco contained
in or
made pursuant to this Agreement, any Pubco Document or any certificate
or
other instrument delivered pursuant to this
Agreement;
|
(b)
|
the
breach or partial breach by Pubco or Major Pubco Shareholder (but
the
indemnification obligation will only be applicable to the breaching
Major
Pubco Shareholder) of any covenant or agreement of Pubco or Major
Pubco
Shareholder made in or pursuant to this Agreement, any Pubco Document
or
any certificate or other instrument delivered pursuant to this Agreement;
or
|
(c)
|
any
liability of Pubco or Major Pubco Shareholder incurred prior to the
Closing or with respect to actions or events of Pubco prior to the
Closing.
|
10.4 Indemnification
Period. The
obligations in Sections 10.2 and 10.3 shall expire after a period of 12 months
from the date of Closing.
11.
|
MISCELLANEOUS
PROVISIONS
|
11.1 Effectiveness
of Representations; Survival.
Each
party is entitled to rely on the representations, warranties and agreements
of
each of the other parties and all such representations, warranties and
agreements will be effective regardless of any investigation that any party
has
undertaken or failed to undertake. Unless otherwise stated in this Agreement,
and except for instances of fraud, the representations, warranties and
agreements will survive the Closing Date and continue in full force and effect
until one (1) year after the Closing Date.
OK.
11.2 Further
Assurances.
Each of
the parties hereto will co-operate with the others and execute and deliver
to
the other parties hereto such other instruments and documents and take such
other actions as may be reasonably requested from time to time by any other
party hereto as necessary to carry out, evidence, and confirm the intended
purposes of this Agreement.
11.3 Amendment.
This
Agreement may not be amended except by an instrument in writing signed by each
of the parties.
11.4 Expenses.
Each
party will bear its costs incurred in connection with the preparation, execution
and performance of this Agreement and the Transaction contemplated hereby,
including all fees and expenses of its agents, representatives and accountants;
provided that Priveco will bear $25,000 of the legal fees of Xxxxxxx Xxxxxxxxxx,
Esq., counsel for Pubco, incurred in connection with the preparation, execution
and performance of this Agreement and the Transaction contemplated hereby.
The
parties agree that this payment has been advanced to Pubco prior to the
execution of this Agreement. Aside from the $25,000 paid to Xx. Xxxxxxxxxx,
the
parties agree that each party shall pay its own legal fees incurred in
connection with the preparation, execution and performance of this Agreement
and
the Transaction contemplated hereby.
11.5 Entire
Agreement.
This
Agreement, the schedules attached hereto and the other documents in connection
with this transaction contain the entire agreement between the parties with
respect to the subject matter hereof and supersede all prior arrangements and
understandings, both written and oral, expressed or implied, with respect
thereto. Any preceding correspondence or offers are expressly superseded and
terminated by this Agreement.
28
11.6 Notices.
All
notices and other communications required or permitted under to this Agreement
must be in writing and will be deemed given if sent by personal delivery, faxed
with electronic confirmation of delivery, internationally-recognized express
courier or registered or certified mail (return receipt requested), postage
prepaid, to the parties at the following addresses (or at such other address
for
a party as will be specified by like notice):
If
to
Priveco or the Selling Shareholder:
Well
Chance Investments Limited
Attn:
Xx.
Xxxxxxx Dash, CEO
00X,
Xxxxx X, Xxxxxxxx Xx. 0 XX Xxxxxxxxxxxxx Center
Jia3
Yongandongli, Jianguomenwai Avenue,
Xxxxxxxx
Xxxxxxxx, Xxxxxxx, Xxxxx 000000
Tel:
x00 00 0000 0000
Fax:
x00
00 0000 0000
With
a
copy (which will not constitute notice) to:
Xxxxxxxxxx
& Xxxxx LLP
0000
Xxxxxxxx Xxxx., Xxxxx 000
Xxx
Xxxxxxx, Xxxxxxxxxx 00000
Attention:
Xxxxx
X.
Xxxxx, Esq.
Telephone: 000-000-0000
Facsimile:
000-000-0000
E-mail:
Xxxxxx@xxxxxxxxxxxxxxx.xxx
If
to
Pubco:
Noble
Quests
000
Xxxx
Xxxxxx
Xxxx
Xxxx
Xxxx, Xxxx 00000
Attention:
Xxxxxxx XxXxxxxx-Law.
Telephone:
Facsimile:
With
a
copy (which will not constitute notice) to:
Xxxxxxx
X. Xxxxxxxxxx, Esq.
000
Xxxx
000 Xxxxx, Xxxxx 000
Xxxx
Xxxx
Xxxx, Xxxx 00000
Telephone: 000-000-0000
Facsimile:
000-000-0000
All
such
notices and other communications will be deemed to have been
received:
(a)
|
in
the case of personal delivery, on the date of such
delivery;
|
29
(b)
|
in
the case of a fax, when the party sending such fax has received electronic
confirmation of its delivery;
|
(c)
|
in
the case of delivery by internationally-recognized express courier,
on the
business day following dispatch;
and
|
(d)
|
in
the case of mailing, on the fifth business day following
mailing.
|
11.7 Headings.
The
headings contained in this Agreement are for convenience purposes only and
will
not affect in any way the meaning or interpretation of this
Agreement.
11.8 Benefits.
This
Agreement is and will only be construed as for the benefit of or enforceable
by
those persons party to this Agreement.
11.9 Assignment.
This
Agreement may not be assigned (except by operation of law) by any party without
the consent of the other parties.
11.10 Governing
Law.
This
Agreement will be governed by and construed in accordance with the laws of
the
State of Nevada applicable to contracts made and to be performed
therein.
11.11 Construction.
The
language used in this Agreement will be deemed to be the language chosen by
the
parties to express their mutual intent, and no rule of strict construction
will
be applied against any party.
11.12 Gender.
All
references to any party will be read with such changes in number and gender
as
the context or reference requires.
11.13 Business
Days.
If the
last or appointed day for the taking of any action required or the expiration
of
any rights granted herein shall be a Saturday, Sunday or a legal holiday in
the
State of Utah, then such action may be taken or right may be exercised on the
next succeeding day which is not a Saturday, Sunday or such a legal
holiday.
11.14 Counterparts.
This
Agreement may be executed in one or more counterparts, all of which will be
considered one and the same agreement and will become effective when one or
more
counterparts have been signed by each of the parties and delivered to the other
parties, it being understood that all parties need not sign the same
counterpart.
11.15 Fax
Execution.
This
Agreement may be executed by delivery of executed signature pages by fax and
such fax execution will be effective for all purposes.
30
11.16 Schedules
and Exhibits.
The
schedules and exhibits are attached to this Agreement and incorporated
herein.
IN
WITNESS WHEREOF the parties hereto have executed this Share Exchange Agreement
as of the day and year first above written.
NOBLE
QUESTS, INC., a Nevada corporation
|
|
Per:
|
/s/
Xxxxxxx XxXxxxxx-Law
|
Authorized
Signatory
|
|
Name:
Xxxxxxx XxXxxxxx-Law
|
|
Title:
President
|
|
WELL
CHANCE INVESTMENTS LIMITED,
|
|
a
British Virgin Islands corporation
|
|
Per:
|
/s/
Xxxxxxx Dash
|
Authorized
Signatory
|
|
Name:
Xxxxxxx Dash
|
|
Title:
President
|
WELL
CHANCE SHAREHOLDERS
/s/
Xxxxxxx Dash
|
Xxxxxxx
Dash
31
[SHARE
EXCHANGE AGREEMENT SIGNATURE PAGE CONTINUED]
MAJOR
PUBCO SHAREHOLDER
/s/
Xxxxxxx XxXxxxxx-Law
|
Xxxxxxx
XxXxxxxx-Law
32
SCHEDULE
1
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AND MAJOR PUBCO SHAREHOLDER AS SET OUT IN THE
THE
SELLING SHAREHOLDERS
Name
|
Address
|
Number of Priveco
Shares held before
Closing
|
Total Number of
Pubco Shares to be
issued by Pubco on
Closing
|
|||||||
Xxxxxxx
Dash
|
1,000
|
1,200,000
|
||||||||
|
TOTAL:
|
1,200,000
|
SCHEDULE
2.1
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
PAYMENT
Shareholder
|
Amount to wire
|
Purpose of funds
|
||
EVI,
LLC
|
$8,560
|
Paid
to NBLQ for subscription shares
|
||
Nalp
Capital, LLC
|
$180,153
(already
wired $12,500)
|
$95,250
to Xxxxx Xxxxxxx
$2,140
to NBLQ for subscription shares
$82,763
to Xxxxxxx XxXxxxxx-Law to cancel shares and Finders (Xxxxxx X. Xxxxxx
and
Xxxxxx X. Xxxxxxx)
|
||
Tarpido
Enterprises, LLC
|
$9,000
|
Paid
to Dominion World ($1,000), Xxxxx Xxxxx ($1,000), K-COM Corp. ($1,000),
Xxx Xxxxx ($1,000)
|
||
Aries
Equity Corp.
|
$2,500
(already
wired $12,500)
|
Paid
to Xxxxx Xxxxxxx
|
||
4
Peas, LLC
|
$3,745
|
Paid
to NBLQ for subscription shares
|
||
Terrace
Lane
|
$12,679
|
Paid
to NBLQ for subscription shares
|
||
Xxxxx
X. Xxxxxxxx
|
$3,210
|
Paid
to NBLQ for subscription shares
|
||
AMS
Development, LLC
|
$180,153
(already
wired $12,500)
|
$95,250
to Xxxxx Xxxxxxx
$2,140
to NBLQ for subscription shares
$82,763
to Xxxxxxx XxXxxxxx-Law to cancel shares and Finders (Xxxxxx X. Xxxxxx
and
Xxxxxx X. Xxxxxxx)
|
||
TOTAL
|
SCHEDULE
3.2A
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
CERTIFICATE
OF NON-U.S. SHAREHOLDER
In
connection with the issuance of common stock (the “Pubco Shares”) of NOBLE
QUESTS, INC., a Nevada corporation (“Pubco”), to the undersigned, pursuant to
that certain Share Exchange Agreement dated January 31, 2008 (the “Agreement”),
among Pubco, Well Chance Investments Ltd., a company incorporated pursuant
to
the laws of the British Virgin Islands (“Priveco”) and the shareholders of
Priveco as set out in the Agreement (each, a “Selling Shareholder”), the
undersigned Selling Shareholder hereby agrees, acknowledges, represents and
warrants that:
1. the
undersigned is not a “U.S. Person” as such term is defined by Rule 902 of
Regulation S under the United States Securities Act of 1933, as amended (“U.S.
Securities Act”) (the definition of which includes, but is not limited to, an
individual resident in the U.S. and an estate or trust of which any executor
or
administrator or trust, respectively is a U.S. Person and any partnership or
corporation organized or incorporated under the laws of the U.S.);
2. none
of
the Pubco Shares have been or will be registered under the U.S. Securities
Act,
or under any state securities or “blue sky” laws of any state of the United
States, and may not be offered or sold in the United States or, directly or
indirectly, to U.S. Persons, as that term is defined in Regulation S, except
in
accordance with the provisions of Regulation S or pursuant to an exemption
from,
or in a transaction not subject to, the registration requirements of the U.S.
Securities Act and in compliance with any applicable state and foreign
securities laws;
3. the
Selling Shareholder understands and agrees that offers and sales of any of
the
Pubco Shares prior to the expiration of a period of one year after the date
of
original issuance of the Pubco Shares (the one year period hereinafter referred
to as the “Distribution Compliance Period”) shall only be made in compliance
with the safe harbor provisions set forth in Regulation S, pursuant to the
registration provisions of the U.S. Securities Act or an exemption therefrom,
and that all offers and sales after the Distribution Compliance Period shall
be
made only in compliance with the registration provisions of the U.S. Securities
Act or an exemption therefrom and in each case only in accordance with
applicable state and foreign securities laws;
4. the
Selling Shareholder understands and agrees not to engage in any hedging
transactions involving any of the Pubco Shares unless such transactions are
in
compliance with the provisions of the U.S. Securities Act and in each case
only
in accordance with applicable state and provincial securities laws;
5. the
Selling Shareholder is acquiring the Pubco Shares for investment only and not
with a view to resale or distribution and, in particular, it has no intention
to
distribute either directly or indirectly any of the Pubco Shares in the United
States or to U.S. Persons;
6. the
Selling Shareholder has not acquired the Pubco Shares as a result of, and will
not itself engage in, any directed selling efforts (as defined in Regulation
S
under the U.S. Securities Act) in the United States in respect of the Pubco
Shares which would include any activities undertaken for the purpose of, or
that
could reasonably be expected to have the effect of, conditioning the market
in
the United States for the resale of any of the Pubco Shares; provided, however,
that the Selling Shareholder may sell or otherwise dispose of the Pubco Shares
pursuant to registration thereof under the U.S. Securities Act and any
applicable state and provincial securities laws or under an exemption from
such
registration requirements;
7. the
statutory and regulatory basis for the exemption claimed for the sale of the
Pubco Shares, although in technical compliance with Regulation S, would not
be
available if the offering is part of a plan or scheme to evade the registration
provisions of the U.S. Securities Act or any applicable state and provincial
securities laws;
8. Pubco
has
not undertaken, and will have no obligation, to register any of the Pubco Shares
under the U.S. Securities Act;
9. Pubco
is
entitled to rely on the acknowledgements, agreements, representations and
warranties and the statements and answers of the Selling Shareholder contained
in the Agreement and this Certificate, and the Selling Shareholder will hold
harmless Pubco from any loss or damage either one may suffer as a result of
any
such acknowledgements, agreements, representations and/or warranties made by
the
Selling Shareholder not being true and correct;
10. the
undersigned has been advised to consult their own respective legal, tax and
other advisors with respect to the merits and risks of an investment in the
Pubco Shares and, with respect to applicable resale restrictions, is solely
responsible (and Pubco is not in any way responsible) for compliance with
applicable resale restrictions;
11. the
undersigned and the undersigned’s advisor(s) have had a reasonable opportunity
to ask questions of and receive answers from Pubco in connection with the
acquisition of the Pubco Shares under the Agreement, and to obtain additional
information, to the extent possessed or obtainable by Pubco without unreasonable
effort or expense;
12. the
books
and records of Pubco were available upon reasonable notice for inspection,
subject to certain confidentiality restrictions, by the undersigned during
reasonable business hours at its principal place of business and that all
documents, records and books in connection with the acquisition of the Pubco
Shares under the Agreement have been made available for inspection by the
undersigned, the undersigned’s attorney and/or advisor(s);
13. the
undersigned:
(a)
|
is
knowledgeable of, or has been independently advised as to, the applicable
securities laws of the securities regulators having application in
the
jurisdiction in which the undersigned is resident (the “International
Jurisdiction”) which would apply to the acquisition of the Pubco Shares;
|
-
2
-
(b)
|
the
undersigned is acquiring the Pubco Shares pursuant to exemptions
from
prospectus or equivalent requirements under applicable securities
laws or,
if such is not applicable, the undersigned is permitted to acquire
the
Pubco Shares under the applicable securities laws of the securities
regulators in the International Jurisdiction without the need to
rely on
any exemptions;
|
(c)
|
the
applicable securities laws of the authorities in the International
Jurisdiction do not require Pubco to make any filings or seek any
approvals of any kind whatsoever from any securities regulator of
any kind
whatsoever in the International Jurisdiction in connection with the
issue
and sale or resale of the Pubco Shares;
and
|
(d)
|
the
acquisition of the Pubco Shares by the undersigned does not
trigger:
|
(i)
|
any
obligation to prepare and file a prospectus or similar document,
or any
other report with respect to such purchase in the International
Jurisdiction; or
|
(ii)
|
any
continuous disclosure reporting obligation of Pubco in the International
Jurisdiction; and
|
the
undersigned will, if requested by Pubco, deliver to Pubco a certificate or
opinion of local counsel from the International Jurisdiction which will confirm
the matters referred to in Sections 13(c) and 13(d) above to the satisfaction
of
Pubco, acting reasonably;
14. the
undersigned (i) is able to fend for itself in connection with the acquisition
of
the Pubco Shares; (ii) has such knowledge and experience in business matters
as
to be capable of evaluating the merits and risks of its prospective investment
in the Pubco Shares; and (iii) has the ability to bear the economic risks of
its
prospective investment and can afford the complete loss of such
investment;
15. the
undersigned is not aware of any advertisement of any of the Pubco Shares and
is
not acquiring the Pubco Shares as a result of any form of general solicitation
or general advertising including advertisements, articles, notices or other
communications published in any newspaper, magazine or similar media or
broadcast over radio or television, or any seminar or meeting whose attendees
have been invited by general solicitation or general advertising;
16. no
person
has made to the undersigned any written or oral representations:
(a)
|
that
any person will resell or repurchase any of the Pubco
Shares;
|
(b)
|
that
any person will refund the purchase price of any of the Pubco
Shares;
|
(c)
|
as
to the future price or value of any of the Pubco Shares;
or
|
(d)
|
that
any of the Pubco Shares will be listed and posted for trading on
any stock
exchange or automated dealer quotation system or that application
has been
made to list and post any of the Pubco Shares on any stock exchange
or
automated dealer quotation system, except that currently certain
market
makers make market in the common shares of Pubco on the OTC Bulletin
Board;
|
-
3
-
17. none
of
the Pubco Shares are listed on any stock exchange or automated dealer quotation
system and no representation has been made to the undersigned that any of the
Pubco Shares will become listed on any stock exchange or automated dealer
quotation system, except that currently certain market makers make market in
the
common shares of Pubco on the OTC Bulletin Board;
18. the
undersigned is outside the United States when receiving and executing this
Agreement and is acquiring the Pubco Shares as principal for their own account,
for investment purposes only, and not with a view to, or for, resale,
distribution or fractionalization thereof, in whole or in part, and no other
person has a direct or indirect beneficial interest in the Pubco Shares;
19. neither
the SEC nor any other securities commission or similar regulatory authority
has
reviewed or passed on the merits of the Pubco Shares;
20. the
Pubco
Shares are not being acquired, directly or indirectly, for the account or
benefit of a U.S. Person or a person in the United States;
21. the
undersigned acknowledges and agrees that Pubco shall refuse to register any
transfer of Pubco Shares not made in accordance with the provisions of
Regulation S, pursuant to registration under the U.S. Securities Act, or
pursuant to an available exemption from registration under the U.S. Securities
Act;
22. the
undersigned understands and agrees that the
Pubco
Shares
will
bear the following legend:
“THE
SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION
TO A
PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION
S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”).
NONE
OF
THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT,
OR
ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED
OR
SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO
U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER
THE
1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT,
OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS
INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
1933
ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE
1933 ACT.”
-
4
-
23. the
address of the undersigned included herein is the sole address of the
undersigned as of the date of this certificate.
24. the
undersigned is a record and beneficial owner of the Priveco Shares listed on
the
signature page, all of which are owned free and clear of all liens, and have
not
been sold, pledged, assigned or otherwise transferred except pursuant to this
Agreement. There are no outstanding subscriptions, rights, options, warrants
or
other agreements obligating the undersigned to sell or transfer to any third
person any of the Priveco Shares owned by the undersigned, or any interest
therein. The undersigned has full power and authority to exchange, transfer
and
deliver to Pubco the Priveco Shares held by him.
IN
WITNESS WHEREOF, I have executed this Certificate of Non-U.S.
Shareholder.
Date:
|
,
2008
|
|||
Signature
|
||||
Print
Name
|
||||
Title
(if applicable)
|
||||
Address
|
||||
Number of Well Chance common shares held
|
-
5
-
SCHEDULE
3.2B
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
CERTIFICATE
OF U.S. SHAREHOLDERS
In
connection with the issuance of common stock (the “Pubco Shares”) of NOBLE
QUESTS, INC., a Nevada corporation (“Pubco”), to the undersigned, pursuant to
that certain Share Exchange Agreement dated January 31, 2008 (the “Agreement”),
among Pubco, Well Chance Investments Ltd., a company incorporated pursuant
to
the laws of the British Virgin Islands (“Priveco”) and the shareholders of
Priveco as set out in the Agreement (each, a “Selling Shareholder”), the
undersigned Selling Shareholder hereby agrees, acknowledges, represents and
warrants that:
1. the
undersigned satisfies one or more of the categories of "Accredited Investors",
as defined by Regulation D promulgated under the United States Securities Act
of
1933, as amended (the “U.S. Securities Act”), as indicated below: (Please
initial in the space provide those categories, if any, of an "Accredited
Investor" which the undersigned satisfies.)
_______ Category
1
|
An
organization described in Section 501(c)(3) of the United States
Internal
Revenue Code, a corporation, a Massachusetts or similar business
trust or
partnership, not formed for the specific purpose of acquiring the
Shares,
with total assets in excess of US $5,000,000.
|
|
_______ Category
2
|
A
natural person whose individual net worth, or joint net worth with
that
person's spouse, on the date of purchase exceeds
US $1,000,000.
|
|
_______ Category
3
|
A
natural person who had an individual income in excess of US $200,000
in each of the two most recent years or joint income with that
person's
spouse in excess of US $300,000 in each of those years and has a
reasonable expectation of reaching the same income level in the
current
year.
|
|
_______ Category
4
|
A
"bank" as defined under Section (3)(a)(2) of the 1933 Act or savings
and loan association or other institution as defined in
Section 3(a)(5)(A) of the Securities Act acting in its individual or
fiduciary capacity; a broker dealer registered pursuant to Section 15
of the Securities
Exchange Act of 0000
(Xxxxxx Xxxxxx); an insurance company as defined in Section 2(13) of
the 1933 Act; an investment company registered under the Investment
Company Act of 1940
(United States) or a business development company as defined in
Section 2(a)(48) of such Act; a Small Business Investment Company
licensed by the U.S. Small Business Administration under
Section 301(c) or (d) of the Small
Business Investment Act of 0000
(Xxxxxx Xxxxxx); a plan with total assets in excess of $5,000,000
established and maintained by a state, a political subdivision
thereof, or
an agency or instrumentality of a state or a political subdivision
thereof, for the benefit of its employees; an employee benefit
plan within
the meaning of the Employee
Retirement Income Security Act of 1974
(United States) whose investment decisions are made by a plan fiduciary,
as defined in Section 3(21) of such Act, which is either a bank,
savings and loan association, insurance company or registered investment
adviser, or if the employee benefit plan has total assets in excess
of
$5,000,000, or, if a self-directed plan, whose investment decisions
are
made solely by persons that are accredited
investors.
|
_______ Category
5
|
A
private business development company as defined in Section 202(a)(22)
of the Investment
Xxxxxxxx Xxx xx 0000
(Xxxxxx Xxxxxx).
|
|
_______ Category
6
|
A
director or executive officer of the Company.
|
|
_______ Category
7
|
A
trust with total assets in excess of $5,000,000, not formed for
the
specific purpose of acquiring the Shares, whose purchase is directed
by a
sophisticated person as described in Rule 506(b)(2)(ii) under the
1933 Act.
|
|
_______ Category
8
|
An
entity in which all of the equity owners satisfy the requirements
of one
or more of the foregoing
categories.
|
Note
that
if the Selling Shareholders is claiming to satisfy one of the above categories
of Accredited Investor may be required to supply the Company with a balance
sheet, prior years' federal income tax returns or other appropriate
documentation to verify and substantiate the Subscriber's status as an
Accredited Investor.
If
the
Selling Shareholder is an entity which initialled Category 8 in reliance upon
the Accredited Investor categories above, state the name, address, total
personal income from all sources for the previous calendar year, and the net
worth (exclusive of home, home furnishings and personal automobiles) for each
equity owner of the said entity:
2. none
of
the Pubco Shares have been or will be registered under the U.S. Securities
Act,
or under any state securities or “blue sky” laws of any state of the United
States, and may not be offered or sold in the United States or, directly or
indirectly, to U.S. Persons, as that term is defined in Regulation S, except
in
accordance with the provisions of Regulation S or pursuant to an exemption
from,
or in a transaction not subject to, the registration requirements of the U.S.
Securities Act and in compliance with any applicable state and foreign
securities laws;
3. the
Selling Shareholder understands and agrees that offers and sales of any of
the
Pubco Shares shall be made only in compliance with the registration provisions
of the U.S. Securities Act or an exemption therefrom and in each case only
in
accordance with applicable state and foreign securities laws;
4. the
Selling Shareholder understands and agrees not to engage in any hedging
transactions involving any of the Pubco Shares unless such transactions are
in
compliance with the provisions of the U.S. Securities Act and in each case
only
in accordance with applicable state and provincial securities laws;
5. the
Selling Shareholder is acquiring the Pubco Shares for investment only and not
with a view to resale or distribution and, in particular, it has no intention
to
distribute either directly or indirectly any of the Pubco Shares in the United
States or to U.S. Persons;
6. Pubco
has
not undertaken, and will have no obligation, to register any of the Pubco Shares
under the U.S. Securities Act;
-
2
-
7. Pubco
is
entitled to rely on the acknowledgements, agreements, representations and
warranties and the statements and answers of the Selling Shareholder contained
in the Agreement and this Certificate, and the Selling Shareholder will hold
harmless Pubco from any loss or damage either one may suffer as a result of
any
such acknowledgements, agreements, representations and/or warranties made by
the
Selling Shareholder not being true and correct;
8. the
undersigned has been advised to consult their own respective legal, tax and
other advisors with respect to the merits and risks of an investment in the
Pubco Shares and, with respect to applicable resale restrictions, is solely
responsible (and Pubco is not in any way responsible) for compliance with
applicable resale restrictions;
9. the
undersigned and the undersigned’s advisor(s) have had a reasonable opportunity
to ask questions of and receive answers from Pubco in connection with the
acquisition of the Pubco Shares under the Agreement, and to obtain additional
information, to the extent possessed or obtainable by Pubco without unreasonable
effort or expense;
10. the
books
and records of Pubco were available upon reasonable notice for inspection,
subject to certain confidentiality restrictions, by the undersigned during
reasonable business hours at its principal place of business and that all
documents, records and books in connection with the acquisition of the Pubco
Shares under the Agreement have been made available for inspection by the
undersigned, the undersigned’s attorney and/or advisor(s);
11. the
undersigned:
(a)
|
is
knowledgeable of, or has been independently advised as to, the applicable
securities laws of the securities regulators having application in
the
jurisdiction in which the undersigned is resident (the “International
Jurisdiction”) which would apply to the acquisition of the Pubco Shares;
|
(b)
|
the
undersigned is acquiring the Pubco Shares pursuant to exemptions
from
prospectus or equivalent requirements under applicable securities
laws or,
if such is not applicable, the undersigned is permitted to acquire
the
Pubco Shares under the applicable securities laws of the securities
regulators in the International Jurisdiction without the need to
rely on
any exemptions;
|
(c)
|
the
applicable securities laws of the authorities in the International
Jurisdiction do not require Pubco to make any filings or seek any
approvals of any kind whatsoever from any securities regulator of
any kind
whatsoever in the International Jurisdiction in connection with the
issue
and sale or resale of the Pubco Shares;
and
|
(d)
|
the
acquisition of the Pubco Shares by the undersigned does not
trigger:
|
(i)
|
any
obligation to prepare and file a prospectus or similar document,
or any
other report with respect to such purchase in the International
Jurisdiction; or
|
-
3
-
(ii)
|
any
continuous disclosure reporting obligation of Pubco in the International
Jurisdiction; and
|
the
undersigned will, if requested by Pubco, deliver to Pubco a certificate or
opinion of local counsel from the International Jurisdiction which will confirm
the matters referred to in Sections 11(c) and 11(d) above to the satisfaction
of
Pubco, acting reasonably;
12. the
undersigned (i) is able to fend for itself in connection with the acquisition
of
the Pubco Shares; (ii) has such knowledge and experience in business matters
as
to be capable of evaluating the merits and risks of its prospective investment
in the Pubco Shares; and (iii) has the ability to bear the economic risks of
its
prospective investment and can afford the complete loss of such
investment;
13. the
undersigned is not aware of any advertisement of any of the Pubco Shares and
is
not acquiring the Pubco Shares as a result of any form of general solicitation
or general advertising including advertisements, articles, notices or other
communications published in any newspaper, magazine or similar media or
broadcast over radio or television, or any seminar or meeting whose attendees
have been invited by general solicitation or general advertising;
14. no
person
has made to the undersigned any written or oral representations:
(a)
|
that
any person will resell or repurchase any of the Pubco
Shares;
|
(b)
|
that
any person will refund the purchase price of any of the Pubco
Shares;
|
(c)
|
as
to the future price or value of any of the Pubco Shares;
or
|
(d)
|
that
any of the Pubco Shares will be listed and posted for trading on
any stock
exchange or automated dealer quotation system or that application
has been
made to list and post any of the Pubco Shares on any stock exchange
or
automated dealer quotation system, except that currently certain
market
makers make market in the common shares of Pubco on the OTC Bulletin
Board;
|
15. none
of
the Pubco Shares are listed on any stock exchange or automated dealer quotation
system and no representation has been made to the undersigned that any of the
Pubco Shares will become listed on any stock exchange or automated dealer
quotation system, except that currently certain market makers make market in
the
common shares of Pubco on the OTC Bulletin Board;
16. the
undersigned is acquiring the Pubco Shares as principal for their own account,
for investment purposes only, and not with a view to, or for, resale,
distribution or fractionalization thereof, in whole or in part, and no other
person has a direct or indirect beneficial interest in the Pubco Shares;
17. neither
the SEC nor any other securities commission or similar regulatory authority
has
reviewed or passed on the merits of the Pubco Shares;
-
4
-
18. the
undersigned acknowledges and agrees that Pubco shall refuse to register any
transfer of Pubco Shares not made in accordance with the provisions of
Regulation S, pursuant to registration under the U.S. Securities Act, or
pursuant to an available exemption from registration under the U.S. Securities
Act;
19. the
undersigned understands and agrees that the
Pubco
Shares
will
bear the following legend:
“NONE
OF
THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE
SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY
OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT,
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS
INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
1933
ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE
1933 ACT.”
-
5
-
20. the
address of the undersigned included herein is the sole address of the
undersigned as of the date of this certificate.
21. the
undersigned is a record and beneficial owner of the Priveco Shares listed on
the
signature page, all of which are owned free and clear of all liens, and have
not
been sold, pledged, assigned or otherwise transferred except pursuant to this
Agreement. There are no outstanding subscriptions, rights, options, warrants
or
other agreements obligating the undersigned to sell or transfer to any third
person any of the Priveco Shares owned by the undersigned, or any interest
therein. The undersigned has full power and authority to exchange, transfer
and
deliver to Pubco the Priveco Shares held by him.
IN
WITNESS WHEREOF, I have executed this Certificate of U.S.
Shareholder.
Date:
|
,
2008
|
|||
Signature
|
||||
Print
Name
|
||||
Title
(if applicable)
|
||||
Address
|
||||
Number of Priveco common shares held
|
-
6
-
SCHEDULE
4.4
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
DIRECTORS
AND OFFICERS OF PRIVECO
Directors:
|
Xxxxxxx
Dash
|
Officers:
|
Xxxxxxx
Dash, CEO
|
SCHEDULE
4.13
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
PRIVECO
ABSENCE OF CHANGES
SCHEDULE
4.14
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
PRIVECO
ABSENCE OF CERTAIN CHANGES
SCHEDULE
4.18
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
PRIVECO
LEASES
SCHEDULE
4.19
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
PRIVECO
MATERIAL CONTRACTS
See
Attached Lists.
OTHER
CONTRACTS
SCHEDULE
4.21
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
BROKER’S
FEES
SCHEDULE
5.4
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
DIRECTORS
AND OFFICERS OF PUBCO
Directors:
|
Xxxxxxx
XxXxxxxx-Law
|
Officers:
|
|
Xxxxxxx-XxXxxxxx-Law,
President, PEO, PFO and Secretary
Xxxxxxxxx
Xxxxxxx, Treasurer
|
SCHEDULE
5.15
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC. WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
PUBCO
ABSENCE OF CHANGES
None.
SCHEDULE
5.16
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC. WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
PUBCO
ABSENCE OF CERTAIN CHANGES
None.
SCHEDULE
5.21
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC. WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
BROKER’S
FEES
None.
SCHEDULE
5.26
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC. WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
PUBCO
LIABILITIES
Line
of Credit
|
349.00
|
|||
Xxxxx
Xxxxxxx – Convertible Note Payable
|
1,702.00
|
|||
Shareholder
Loan
|
180.00
|
|||
Data
Electronic Filing Service LC
|
4,509.00
|
|||
Justeene
Xxxxxxxxxxx
|
1,534.00
|
|||
Xxxxxx
Xxxxxxxxx, Esq.
|
1,808.00
|
|||
Utah
Franchise Taxes
|
142.00
|
|||
Xxxxxxx
XxXxxxxxxx LLC
|
15,103.34
|
|||
Xxxxxxx
X. Xxxxxxxxxx, Esq.
|
12,500.00
|
|||
Total:
|
$
|
37,827.34
|
SCHEDULE
6.1(h)
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC. WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
LOCK-UP/LEAK-OUT
AGREEMENTS
The
following persons and/or entities will have executed a Lock-Up/Leak-Out
Agreement:
Xxxxxxx
Dash
Tapirdo
Enterprises, LLC
RMK
Emerging Growth Opportunity Fund LP
Nalp
Capital, LLC
EVI,
LLC
Terrace
Lane, LLC
Xxxxx
X.
Xxxxxxxx
AMS
Development, LLC
4
Peas,
LLC
Aries
Equity Corp.
Fiona
E,
LLC
Xxxxxx
X.
Xxxxxx
Xxxxxx
X.
Xxxxxxx
Xxxxxxx
X. Xxxxxxxxxx, Esq.
Xxxxx
Xxxxxxx
Xxxxx
Xxxxx
Xxxxxxxxx
Xxxxx
Xxxxxxx
XxXxxxxx-Law
-
2
-
SCHEDULE
6.1(i)
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
PRIVECO
EMPLOYMENT AGREEMENTS AND ARRANGEMENTS
As
of the
date of this Agreement, the following hourly and salaried employees of Priveco
are reasonably necessary to operate the business of Priveco as substantially
presently operated:
Name
|
Position
|
||
Xxxxxxx
Dash
|
Chief
Executive Officer
|
||
SCHEDULE
6.2(n)
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
TRANSFER
OF 1,200,000 FREELY-TRADEABLE PUBCO SHARES
1,200,000
freely-tradeable Pubco Shares will be transferred to the following persons
and/or entities:
Tapirdo
Enterprises, LLC
Nalp
Capital, LLC
AMS
Development, LLC
Aries
Equity Corp.
SCHEDULE
6.2(o)
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
SALE
OF NEWLY-ISSUED NOBLE QUESTS, INC. COMMON STOCK
SHAREHOLDER
|
# OF NOBLE QUESTS
COMMON STOCK @ $0.0214
|
|||
RMK
EMERGING GROWTH OPPORTUNITY FUND LP
|
2,582,563
|
|||
NALP
CAPITAL, LLC
|
100,000
|
|||
EVI,
LLC
|
000,000
|
|||
XXXXXXX
XXXX
|
592,437
|
|||
XXXXX
X. XXXXXXXX
|
150,000
|
|||
AMS
DEVELOPMENT, LLC
|
100,000
|
|||
4
Peas, LLC
|
175,000
|
|||
TOTAL
|
4,100,000
|
SCHEDULE
7.12
TO
THE
SHARE EXCHANGE AGREEMENT
AMONG
NOBLE QUESTS, INC., WELL CHANCE INVESTMENTS LIMITED AND THE
SELLING
SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
CANCELLATION
OF SHARES
The
following Pubco Shareholder will cancel the following shares of
Pubco:
Xxxxxxx
XxXxxxxx-Law
|
2,419,885
|