SHARE EXCHANGE AGREEMENT by and among FRESH IDEAS MEDIA, INC., EVER AUSPICIOUS INTERNATIONAL LIMITED, and BRIGHT PRAISE ENTERPRISES LIMITED Dated as November 10, 2008
Exhibit
2.1
by
and among
FRESH
IDEAS MEDIA, INC.,
EVER
AUSPICIOUS INTERNATIONAL LIMITED,
and
BRIGHT
PRAISE ENTERPRISES LIMITED
Dated
as November 10, 2008
TABLE
OF CONTENTS
PAGE
|
||
ARTICLE
I REPRESENTATIONS, COVENANTS, AND WARRANTIES OF HKCO
|
1
|
|
Section
1.01
|
Organization
|
2
|
Section
1.02
|
Capitalization
|
2
|
Section
1.03
|
Subsidiaries
and Predecessor Corporations
|
2
|
Section
1.04
|
Financial
Statements
|
2
|
Section
1.05
|
Information
|
3
|
Section
1.06
|
Options
or Warrants
|
3
|
Section
1.07
|
Absence
of Certain Changes or Events
|
3
|
Section
1.08
|
Litigation
and Proceedings
|
4
|
Section
1.09
|
Contracts
|
4
|
Section
1.10
|
No
Conflict With Other Instruments
|
4
|
Section
1.11
|
Compliance
With Laws and Regulations
|
5
|
Section
1.12
|
Approval
of Agreement
|
5
|
Section
1.13
|
Valid
Obligation
|
5
|
ARTICLE
II REPRESENTATIONS, COVENANTS, AND WARRANTIES OF USCO
|
5
|
|
Section
2.01
|
Organization
|
5
|
Section
2.02
|
Capitalization
|
5
|
Section
2.03
|
Subsidiaries
and Predecessor Corporations
|
6
|
Section
2.04
|
Financial
Statements
|
6
|
Section
2.05
|
Information
|
7
|
Section
2.06
|
Options
or Warrants
|
7
|
Section
2.07
|
Absence
of Certain Changes or Events
|
7
|
Section
2.08
|
Litigation
and Proceedings
|
8
|
Section
2.09
|
Contracts
|
8
|
Section
2.10
|
No
Conflict With Other Instruments
|
8
|
Section
2.11
|
Compliance
With Laws and Regulations
|
8
|
Section
2.12
|
Approval
of Agreement
|
8
|
Section
2.13
|
Material
Transactions or Affiliations
|
8
|
Section
2.14
|
Bank
Accounts; Power of Attorney
|
9
|
Section
2.15
|
Valid
Obligation
|
9
|
Section
2.16
|
Filings
|
9
|
Section
2.17
|
OTCBB
|
9
|
ARTICLE
III PLAN OF EXCHANGE
|
9
|
|
Section
3.01
|
The
Exchange
|
9
|
Section
3.02
|
Anti-Dilution
|
10
|
Section
3.03
|
Closing
Events
|
10
|
Section
3.04
|
Termination
|
10
|
ARTICLE
IV SPECIAL COVENANTS
|
10
|
|
Section
4.01
|
Access
to Properties and Records
|
10
|
Section
4.02
|
Delivery
of Books and Records
|
10
|
Section
4.03
|
Third
Party Consents and Certificates
|
10
|
Section
4.04
|
Board
Actions
|
10
|
Section
4.05
|
Cancellation
of Certain Shares of USCo Common Stock
|
11
|
Section
4.06
|
Designation
of Directors and Officer
|
11
|
Section
4.07
|
Exclusive
Dealing Rights
|
12
|
Section
4.08
|
Actions
Prior to Closing
|
12
|
Section
4.09
|
Indemnification
|
13
|
Section
4.10
|
The
Acquisition of USCo Common Stock
|
14
|
Section
4.11
|
Sales
of Securities Under Rule 144, If Applicable
|
15
|
i
ARTICLE
V CONDITIONS PRECEDENT TO OBLIGATIONS OF USCO
|
15
|
|
Section
5.01
|
Accuracy
of Representations and Performance of Covenants
|
15
|
Section
5.02
|
Officer’s
Certificate
|
16
|
Section
5.03
|
Good
Standing
|
16
|
Section
5.04
|
No
Governmental Prohibition
|
16
|
Section
5.05
|
Consents
|
16
|
Section
5.06
|
Other
Items
|
16
|
ARTICLE
VI CONDITIONS PRECEDENT TO OBLIGATIONS OF HKCO AND THE HKCO
STOCKHOLDER
|
16
|
|
Section
6.01
|
Accuracy
of Representations and Performance of Covenants
|
16
|
Section
6.02
|
Officer’s
Certificate
|
16
|
Section
6.03
|
Good
Standing
|
17
|
Section
6.04
|
No
Governmental Prohibition
|
17
|
Section
6.05
|
Consents
|
17
|
Section
6.06
|
Other
Items
|
17
|
ARTICLE
VII MISCELLANEOUS
|
17
|
|
Section
7.01
|
Brokers
|
17
|
Section
7.02
|
Governing
Law
|
17
|
Section
7.03
|
Notices
|
18
|
Section
7.04
|
Attorney’s
Fees
|
18
|
Section
7.05
|
Confidentiality
|
19
|
Section
7.06
|
Public
Announcements and Filings
|
19
|
Section
7.07
|
Schedules;
Knowledge
|
19
|
Section
7.08
|
Third
Party Beneficiaries
|
19
|
Section
7.09
|
Expenses
|
20
|
Section
7.10
|
Entire
Agreement
|
20
|
Section
7.11
|
Survival;
Termination
|
20
|
Section
7.12
|
Counterparts
|
20
|
Section
7.13
|
Amendment
or Waiver
|
20
|
Section
7.14
|
Best
Efforts
|
20
|
Section
7.15
|
References
|
20
|
Exhibits
A. |
Suitability
Letter
|
B. |
Investment
Letter
|
ii
THIS
SHARE EXCHANGE AGREEMENT
(hereinafter referred to as this “Agreement”)
is
entered into as of November 10, 2008 (the “Closing
Date”),
by
and between FRESH
IDEAS MEDIA, INC.,
a
Nevada corporation (hereinafter referred to as “USCo”),
with
principal offices located at 0000 Xxxxxx Xxxx Xxxxx, Xxxxxx Xxxx, Xxxxxxxx,
EVER
AUSPICIOUS INTERNATIONAL LIMITED,
a Hong
Kong corporation (hereinafter referred to as “HKCo”)
and
BRIGHT
PRAISE ENTERPRISES LIMITED
(the
“HKCo
Stockholder”),
a
British Virgin Islands company, upon the following premises:
Premises
WHEREAS,
USCo is
a publicly held corporation organized under the laws of the State of Nevada
with
no significant operations;
WHEREAS,
Xxxxxxx
X. Xxx and Xxxx Daily (each, a “Principal
USCo Stockholder”
and
collectively, the “Principal
USCo Stockholders”)
are
currently the principal stockholders of USCo, with (a) Xxxxxxx X. Xxx owning,
directly or indirectly, 1,800,000 shares of USCo Common Stock (as defined
below), representing approximately 23.89% of the issued and outstanding USCo
Common Stock as of the date hereof, and (b) Xxxx Daily owning, 1,250,000 shares
of USCo Common Stock, representing approximately 16.59% of the issued and
outstanding USCo Common Stock as of the date hereof;
WHEREAS,
HKCo is
a privately held corporation organized under the laws of Hong Kong;
WHEREAS,
USCo
agrees to acquire 100% of the issued and outstanding capital stock of HKCo
in
exchange for the issuance of certain shares of USCo Common Stock (the
“Exchange”)
and
the HKCo Stockholder agrees to exchange its shares of HKCo on the terms
described herein; and
WHEREAS,
the
parties hereto intend for this transaction to constitute a tax-free
reorganization pursuant to the provisions of Section 368(a)(1)(B) of the
Internal Revenue Code of 1986, as amended.
Agreement
NOW
THEREFORE,
on the
stated premises and for and in consideration of the mutual covenants and
agreements hereinafter set forth and the mutual benefits to the parties to
be
derived herefrom, and intending to be legally bound hereby, it is hereby agreed
as follows:
ARTICLE
I
REPRESENTATIONS,
COVENANTS, AND WARRANTIES OF HKCO
As
an
inducement to, and to obtain the reliance of, USCo, and except as set forth
in
the corresponding disclosure schedules delivered by HKCo in connection with
this
Agreement (the “HKCo
Schedules”),
HKCo
represents and warrants, as of the date hereof and as of the Closing Date,
as
defined below, as follows:
Section
1.01 Organization.
HKCo is
a corporation duly organized, validly existing, and in good standing under
the
laws of Hong Kong and has the corporate power and is duly authorized under
all
applicable laws, regulations, ordinances, and orders of public authorities
to
carry on its business in all material respects as it is now being conducted.
Included in Schedule
1.01
of the
HKCo Schedules are complete and correct copies of the articles of association
(such documents, or other equivalent corporate organizational documents, the
“Organizational
Documents”)
of
HKCo as in effect on the date hereof. The execution and delivery of this
Agreement does not, and the consummation of the transactions contemplated
hereby, including the transactions contemplated in Sections 4.04 and 4.05
(collectively, the “Contemplated
Transactions”)
will
not, violate any provision of HKCo’s Organizational Documents. HKCo has full
power, authority, and legal right and has taken all action required by law,
its
Organizational Documents, or otherwise to authorize the execution and delivery
of this Agreement and to consummate the Contemplated Transactions.
Section
1.02 Capitalization.
The
authorized capital stock of HKCo consists of ten thousand (10,000) shares of
ordinary shares, par value of HK$1.00 per
share
(the “HKCo
Common Stock”),
all
of which are currently issued and outstanding. All 10,000 shares of HKCo Common
Stock are legally issued, fully paid, and non-assessable and not issued in
violation of the preemptive or other rights of any person.
Section
1.03 Subsidiaries
and Predecessor Corporations.
Except
as set forth on Schedule
1.03,
HKCo
does not have any predecessor corporation(s) or subsidiaries, and does not
own,
beneficially or of record, any shares of any other corporation. For purposes
hereinafter, the term “HKCo”
also
includes those subsidiaries set forth in Schedule
1.03
of the
HKCo Schedules.
Section
1.04 Financial
Statements.
(a) Included
in Schedule
1.04
of the
HKCo Schedules are (a) the audited balance sheets of Tianjin Seashore New
District Shisheng Business Trading Group Ltd. (“Shisheng”), the
wholly owned subsidiary of HKCo, as December 31, 2006 and December 31, 2007
and
the related audited statements of operations, stockholders’ equity and cash
flows for the fiscal years ended December 31, 2005, December 31, 2006, December
31, 2007, together with the notes to such statements and the opinion of
Stonefield Xxxxxxxxx, Inc., independent certified public accountants, and (b)
the unaudited balance sheet of Shisheng as of June 30, 2008 (together with
the balance sheets of Shisheng as of December 31, 2006 and 2007, the
“Shisheng
Balance Sheets”)
and
the related unaudited statements of operations, stockholders’ equity and cash
flows for the six-month period ended June 30, 2008 (the financial statements
referred to in (a) and (b) collectively, the “Shisheng
Financial Statements”).
(b) The
Shisheng Financial Statements have been prepared in accordance with United
States generally accepted accounting principles (“GAAP”)
consistently applied throughout the periods involved. The Shisheng Balance
Sheets are true and accurate and fairly present as of their respective dates
the
financial condition of Shisheng. As of the respective dates of the Shisheng
Balance Sheets, except as and to the extent reflected or reserved against
therein, Shisheng had no liabilities or obligations (absolute or contingent)
which should be reflected in the Shisheng Balance Sheets or the notes thereto
prepared in accordance with GAAP, and all assets reflected therein are properly
reported and fairly present the value of the assets of Shisheng, in accordance
with GAAP. The statements of operations, stockholders’ equity and cash flows
included in the Shisheng Financial Statements reflect fairly the information
required to be set forth therein by GAAP.
2
(c) HKCo
has
no liabilities with respect to the payment of any federal, state, county, local
or other taxes (including any deficiencies, interest or penalties), except
for
taxes accrued but not yet due and payable.
(d) HKCo
has
timely filed all state, federal or local income and/or franchise tax returns
required to be filed by it from inception to the date hereof. Each such income
tax return reflects the taxes due for the period covered thereby, except for
amounts which, in the aggregate, are immaterial.
(e) All
of
Shisheng’s assets are reflected on the Shisheng Financial Statements, and,
except as set forth in the HKCo Schedules or the Shisheng Financial
Statements, Shisheng has no material liabilities, direct or indirect, matured
or
unmatured, contingent or otherwise.
Section
1.05 Information.
The
information concerning HKCo set forth in this Agreement and in the HKCo
Schedules is complete and accurate in all material respects and does not contain
any untrue statement of a material fact or omit to state a material fact
required to make the statements made, in light of the circumstances under which
they were made, not misleading.
Section
1.06 Options
or Warrants.
There
are no existing options, warrants, calls, or commitments of any character
relating to the authorized and unissued HKCo Common Stock.
Section
1.07 Absence
of Certain Changes or Events.
Except
as set forth in Schedule
1.09,
since
December 31, 2007:
(a) there
has
not been any material adverse change in the business, operations, properties,
assets, or condition (financial or otherwise) of HKCo;
(b) HKCo
has
not (i) amended its Organizational Documents; (ii) declared or made, or agreed
to declare or make, any payment of dividends or distributions of any assets
of
any kind whatsoever to stockholders or purchased or redeemed, or agreed to
purchase or redeem, any of its capital stock; (iii) made any material change
in
its method of management, operation or accounting, (iv) entered into any other
material transaction other than sales in the ordinary course of its business;
or
(v) made any increase in or adoption of any profit sharing, bonus, deferred
compensation, insurance, pension, retirement, or other employee benefit plan,
payment, or arrangement made to, for, or with its officers, directors, or
employees; and
3
(c) Except
as
required by this Agreement, HKCo has not (i) granted or agreed to grant any
options, warrants or other rights for its stock, bonds or other corporate
securities calling for the issuance thereof, (ii) borrowed or agreed to borrow
any funds or incurred, or become subject to, any material obligation or
liability (absolute or contingent) except as disclosed herein and except
liabilities incurred in the ordinary course of business; (iii) sold or
transferred, or agreed to sell or transfer, any of its assets, properties,
or
rights or canceled, or agreed to cancel, any debts or claims; or (iv) issued,
delivered, or agreed to issue or deliver any stock, bonds or other corporate
securities including debentures (whether authorized and unissued or held as
treasury stock).
Section
1.08 Litigation
and Proceedings.
There
are no actions, suits, proceedings, or investigations pending or, to the
knowledge of HKCo after reasonable investigation, threatened by or against
HKCo
or affecting HKCo or its properties, at law or in equity, before any court
or
other governmental agency or instrumentality, domestic or foreign, or before
any
arbitrator of any kind. HKCo does not have any knowledge of any material default
on its part with respect to any judgment, order, injunction, decree, award,
rule, or regulation of any court, arbitrator, or governmental agency or
instrumentality or of any circumstances which, after reasonable investigation,
would result in the discovery of such a default.
Section
1.09 Contracts.
(a) All
“material” contracts, agreements, franchises, license agreements, debt
instruments or other commitments to which HKCo is a party or by which it or
any
of its assets, products, technology, or properties are bound other than those
incurred in the ordinary course of business are set forth in Schedule
1.09
of the
HKCo Schedules. A “material” contract, agreement, franchise, license agreement,
debt instrument or commitment is one which would be required to be disclosed
in
connection with a current report on Form 8-K by HKCo if HKCo were a registrant
subject to Rule 13a-1 and Rule 13a-11 of the Securities and Exchange Act of
1934, as amended (the “Exchange
Act”);
(b) All
contracts, agreements, franchises, license agreements, and other commitments
to
which HKCo is a party or by which its properties are bound and which are
material to the operations of HKCo taken as a whole are valid and enforceable
by
HKCo in all respects, except as limited by bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and subject to the qualification that
the availability of equitable remedies is subject to the discretion of the
court
before which any proceeding therefore may be brought (collectively,
“Bankruptcy
and Equity Exceptions”);
and
(c) Except
as
included or described in Schedule
1.09
of the
HKCo Schedules or reflected in the most recent Shisheng Balance Sheet, HKCo
is
not a party to any oral or written (i) contract for the employment of any
officer or employee; (ii) profit sharing, bonus, deferred compensation, stock
option, severance pay, pension benefit or retirement plan, (iii) agreement,
contract, or indenture relating to the borrowing of money, (iv) guaranty of
any
obligation; (vi) collective bargaining agreement; or (vii) agreement with any
present or former officer or director of HKCo.
Section
1.10 No
Conflict With Other Instruments.
The
execution of this Agreement and the consummation of the Contemplated
Transactions will not result in the breach of any term or provision of,
constitute a default under, or terminate, accelerate or modify the terms of,
any
indenture, mortgage, deed of trust, or other material agreement, or instrument
to which HKCo is a party or to which any of its assets, properties or operations
are subject.
4
Section
1.11 Compliance
With Laws and Regulations.
To the
best of its knowledge, HKCo has complied with all applicable statutes and
regulations of any federal, state, or other governmental entity or agency
thereof, except to the extent that noncompliance would not materially and
adversely affect the business, operations, properties, assets, or condition
of
HKCo or except to the extent that noncompliance would not result in the
occurrence of any material liability for HKCo. This compliance includes, but
is
not limited to, the filing of all reports to date with federal and state
securities authorities.
Section
1.12 Approval
of Agreement.
The
Board of Directors of HKCo has authorized the execution and delivery of this
Agreement by HKCo and has approved this Agreement and the Contemplated
Transactions, and will recommend to the HKCo Stockholder that the Exchange
be
approved.
Section
1.13 Valid
Obligation.
This
Agreement and all agreements and other documents executed by HKCo in connection
herewith constitute valid and binding obligations of HKCo, enforceable in
accordance with their respective terms, except as may be limited by Bankruptcy
and Equity Exceptions.
ARTICLE
II
REPRESENTATIONS,
COVENANTS, AND WARRANTIES OF USCO
As
an
inducement to, and to obtain the reliance of, HKCo and the HKCo Stockholder,
and
except as set forth in the corresponding disclosure schedules delivered by
USCo
in connection with this Agreement (the “USCo
Schedules”),
USCo
represents and warrants, as of the date hereof and as of the Closing Date,
as
follows:
Section
2.01 Organization.
USCo is
a corporation duly organized, validly existing, and in good standing under
the
laws of the State of Nevada and has the corporate power and is duly authorized
under all applicable laws, regulations, ordinances, and orders of public
authorities to carry on its business in all material respects as it is now
being
conducted. Included in Schedule
2.01
of the
USCo Schedules are complete and correct copies of the Organizational Documents
of USCo as in effect on the date hereof. The execution and delivery of this
Agreement does not, and the consummation of Contemplated Transactions will
not,
violate any provision of USCo’s Organizational Documents. USCo has full power,
authority, and legal right and has taken all action required by law, its
Organizational Documents, or otherwise to authorize the execution and delivery
of this Agreement and to consummate the Contemplated Transactions.
Section
2.02 Capitalization.
The
authorized capital stock of USCo consists of (a) 95,000,000 shares of common
stock, par value $0.001 per share (“USCo
Common Stock”),
of
which 7,535,000 shares
are issued and outstanding immediately prior to the consummation of the
Contemplated Transactions, 4,535,000 shares of which have been registered for
resale with the U.S. Securities and Exchange Commission pursuant to an effective
registration statement, and (b) 5,000,000 shares of preferred stock, par value
$0.001 per share (“USCo
Preferred Stock”),
none
of which are issued and outstanding. All issued and outstanding shares of USCo
Common Stock are legally issued, fully paid, and non-assessable and not issued
in violation of the preemptive or other rights of any person.
5
Section
2.03 Subsidiaries
and Predecessor Corporations.
Except
for (a) Community Alliance, Inc., a Nevada corporation (“Community
Alliance”),
which
is a wholly-owned subsidiary of USCo, and (b) Our Best Wishes, Inc., a Nevada
corporation, which is a wholly-owned subsidiary of Community Alliance, USCo
does
not have any predecessor corporation(s), no subsidiaries, and does not own,
beneficially or of record, any shares of any other corporation.
Section
2.04 Financial
Statements.
(a) Copies
of
(a) the audited balance sheet of USCo as of November 30, 2007 and the related
audited statements of operations, stockholders’ equity and cash flows for
November 30, 2007, together with the notes to such statements and the opinion
of
Xxxxxx X. Xxxxxxxx, P.C., independent certified public accountants, and (b)
the
unaudited balance sheet of USCo as of September 30, 2008 (together with the
balance sheets of USCo as of November 30, 2007, the “USCo
Balance Sheets”)
and
the related unaudited statements of operations, stockholders’ equity and cash
flows for the ten-month period ending September 30, 2008 (the financial
statements referred to in (a) and (b) collectively, the “USCo
Financial Statements”)
have
been filed with the U.S. Securities and Exchange Commission.
(b) The
USCo
Financial Statements have been prepared in accordance with GAAP consistently
applied throughout the periods involved. The USCo Balance Sheets are true and
accurate and fairly present as of their respective dates the financial condition
of USCo. As of the respective dates of the USCo Balance Sheets, except as and
to
the extent reflected or reserved against therein, USCo had no liabilities or
obligations (absolute or contingent) which should be reflected in the USCo
Balance Sheets or the notes thereto prepared in accordance with GAAP, and all
assets reflected therein are properly reported and fairly present the value
of
the assets of USCo, in accordance with GAAP. The statements of operations,
stockholders’ equity and cash flows in the USCo Financial Statements reflect
fairly the information required to be set forth therein by GAAP.
(c) USCo
has
no liabilities with respect to the payment of any federal, state, county, local
or other taxes (including any deficiencies, interest or penalties), except
for
taxes accrued but not yet due and payable.
(d) USCo
has
timely filed all state, federal or local income and/or franchise tax returns
required to be filed by it from inception to the date hereof. Each such income
tax return reflects the taxes due for the period covered thereby, except for
amounts which, in the aggregate, are immaterial.
(e) All
of
USCo’s assets are reflected on the USCo Financial Statements, and, except as set
forth in the USCo Schedules or the USCo Financial Statements, USCo has no
material liabilities, direct or indirect, matured or unmatured, contingent
or
otherwise.
6
(f) USCo
shall have no liabilities on the Closing Date, except for (i) duly documented
fees and expenses of Xxxxxx X. Xxxxxxxx, P.C. and Xxxx X. Xxxxxx, Attorney
at
Law, in each case incurred solely in connection with the preparation and filing
of USCo’s quarterly report with the SEC on Form 10-Q for the period ended
September 30, 2008, and (ii) fees and expenses of Corporate Stock Transfer,
Inc.
Section
2.05 Information.
The
information concerning USCo set forth in this Agreement and the USCo Schedules
is complete and accurate in all material respects and does not contain any
untrue statements of a material fact or omit to state a material fact required
to make the statements made, in light of the circumstances under which they
were
made, not misleading.
Section
2.06 Options
or Warrants.
There
are no existing options, warrants, calls, or commitments of any character
relating to the authorized and unissued capital stock of USCo (including, but
not limited to, the USCo Common Stock and the USCo Preferred Stock).
Section
2.07 Absence
of Certain Changes or Events.
Except
in connection with the Spin-Off, since the date of the most recent USCo Balance
sheet:
(a) There
has
not been any material adverse change in the business, operations, properties,
assets or condition (financial or otherwise) of USCo;
(b) Except
as
required by this Agreement and in connection with the Forward Stock Split (as
defined below), USCo has not (i) amended its Organizational Documents; (ii)
declared or made, or agreed to declare or make any payment of dividends or
distributions of any assets of any kind whatsoever to stockholders or purchased
or redeemed, or agreed to purchase or redeem, any of its capital stock; (iii)
made any material change in its method of management, operation or accounting;
(iv) entered into any transactions or agreements; or (v) made any increase
in or
adoption of any profit sharing, bonus, deferred compensation, insurance,
pension, retirement, or other employee benefit plan, payment, or arrangement,
made to, for or with its officers, directors, or employees; and
(c) Except
as
required by this Agreement and in connection with the Forward Stock Split (as
defined below), USCo has not (i) granted or agreed to grant any options,
warrants, or other rights for its stock, bonds, or other corporate securities
calling for the issuance thereof; (ii) borrowed or agreed to borrow any funds
or
incurred, or become subject to, any material obligation or liability (absolute
or contingent); (iii) sold or transferred, or agreed to sell or transfer, any
of
its assets, properties, or rights, or canceled, or agreed to cancel, any debts
or claims; or (iv) issued, delivered or agreed to issue or deliver, any stock,
bonds or other corporate securities including debentures (whether authorized
and
unissued or held as treasury stock).
Section
2.08 Litigation
and Proceedings.
There
are no actions, suits, proceedings or investigations pending or, to the
knowledge of USCo after reasonable investigation, threatened by or against
USCo
or affecting USCo or its properties, at law or in equity, before any court
or
other governmental agency or instrumentality, domestic or foreign, or before
any
arbitrator of any kind. USCo does not have any knowledge of any default on
its
part with respect to any judgment, order, writ, injunction, decree, award,
rule
or regulation of any court, arbitrator, or governmental agency or
instrumentality or any circumstance which after reasonable investigation would
result in the discovery of such default.
7
Section
2.09 Contracts(a) .
USCo is
not a party to, and neither it nor any of its assets, products, technology
and
properties are not bound by:
(a) any
contract, agreement, franchise, license, debt instrument, or other commitment,
whether such agreement is in writing or oral;
(b) any
charter or other corporate restriction, except as set forth in the
Organizational Documents of USCo;
(c) any
judgment, order, writ, injunction, decree, or award; or
(d) any
oral
or written (i) contract for the employment of any officer or employee; (ii)
profit sharing, bonus, deferred compensation, stock option, severance pay,
pension benefit or retirement plan, (iii) agreement, contract, or indenture
relating to the borrowing of money, (iv) guaranty of any obligation, (vi)
collective bargaining agreement; or (vii) agreement with any present or former
officer or director of USCo.
Section
2.10 No
Conflict With Other Instruments.
The
execution of this Agreement and the consummation of the Contemplated
Transactions will not result in the breach of any term or provision of,
constitute a default under, or terminate, accelerate or modify the terms of,
any
indenture, mortgage, deed of trust, or other material agreement or instrument
to
which USCo is a party or to which any of its assets, properties or operations
are subject.
Section
2.11 Compliance
With Laws and Regulations.
To the
best of its knowledge, USCo has complied with all applicable statutes and
regulations of any federal, state, or other applicable governmental entity
or
agency thereof. This compliance includes, but is not limited to, the filing
of
all reports to date with federal and state securities authorities.
Section
2.12 Approval
of Agreement.
The
Board of Directors of USCo has authorized the execution and delivery of this
Agreement by USCo and has approved this Agreement and the Contemplated
Transactions.
Section
2.13 Material
Transactions or Affiliations.
Except
for this Agreement and the Contemplated Transactions, there exists no contract,
agreement or arrangement between USCo and any predecessor and any person who
was
at the time of such contract, agreement or arrangement an officer, director,
or
person owning of record or known by USCo to own beneficially, five percent
(5%)
or more of the issued and outstanding USCo Common Stock and which is to be
performed in whole or in part after the date hereof or was entered into not
more
than three (3) years prior to the date hereof. Neither any officer, director,
nor five percent (5%) stockholder of USCo has, or has had since inception of
USCo, any known interest, direct or indirect, in any such transaction with
USCo
which was material to the business of USCo. USCo has no commitment, whether
written or oral, to lend any funds to, borrow any money from, or enter into
any
other transaction with, any such affiliated person.
8
Section
2.14 Bank
Accounts; Power of Attorney.
Set
forth in Schedule
2.14
of the
USCo Schedules is a true and complete list of (a) all accounts with banks,
money
market mutual funds or securities or other financial institutions maintained
by
USCo within the past twelve (12) months, the account numbers thereof, and all
persons authorized to sign or act on behalf of USCo, (b) all safe deposit boxes
and other similar custodial arrangements maintained by USCo within the past
twelve (12) months, (c) the check ledger for the last twelve (12) months, (d)
the names of all persons holding powers of attorney from USCo or who are
otherwise authorized to act on behalf of USCo with respect to any matter, other
than its officers and directors, and a summary of the terms of such powers
or
authorizations, and (e) a list of all the current officers and directors of
USCo.
Section
2.15 Valid
Obligation.
This
Agreement and all agreements and other documents executed by USCo in connection
herewith constitute the valid and binding obligations of USCo, enforceable
in
accordance with their respective terms, except as may be limited by Bankruptcy
and Equity Exceptions.
Section
2.16 Filings.
USCo has
timely filed all reports, statements, and other information required to be
filed
by it under the Securities Exchange Act of 1934, as amended.
Section
2.17 OTCBB.
USCo
trades its USCo Common Stock on the Over-The-Counter Bulletin Board
(“OTCBB”)
and
meets all requirements to be listed on the OTCBB.
ARTICLE
III
PLAN
OF EXCHANGE
Section
3.01 The
Exchange.
On the
terms and subject to the conditions set forth in this Agreement, on the Closing
Date (as defined in Section 3.03) and after the consummation of the transactions
contemplated in Sections 4.04 and 4.05, the HKCo Stockholder shall assign,
transfer and deliver, free and clear of all liens, pledges, encumbrances,
charges, restrictions or known claims of any kind, nature, or description,
all
of the shares of HKCo Common Stock held by the HKCo Stockholder; the objective
of such Exchange being the acquisition by USCo of not less than 100% of the
issued and outstanding HKCo Common Stock. In exchange for the transfer of such
securities by the HKCo Stockholder, USCo shall issue to the HKCo Stockholder
11,700,000 shares, representing 64.64% of total USCo Common Stock (the
“Initial
Shares”).
At
the closing of the transactions described in this Section 3.01 (the
“Closing”),
the
HKCo Stockholder shall, on surrender of its certificate or certificates
representing the HKCo Common Stock to USCo or its registrar or transfer agent,
be entitled to receive a certificate or certificates evidencing its interest
in
the Initial Shares. Upon consummation of the Contemplated Transactions, all
of
the shares of capital stock of HKCo shall be held by USCo. Upon consummation
of
the Contemplated Transactions (including, but not limited to, the cancellation
of the shares set forth in Section 4.05 below), there shall be 18,100,000 shares
of USCo Common Stock issued and outstanding.
Section
3.02 Anti-Dilution.
The
number of shares of USCo Common Stock issuable upon exchange pursuant to Section
3.01 shall be appropriately adjusted to take into account any other stock split,
stock dividend, reverse stock split, recapitalization, or similar change in
the
USCo Common Stock which may occur, other than the Forward Stock Split and share
cancellation described in Sections 4.04 and 4.05 (which has already been taken
into consideration in the determination of the Initial Shares), between the
date
of the execution of this Agreement and the Closing Date, as to the Initial
Shares.
9
Section
3.03 Closing
Events.
At the
Closing, USCo, HKCo and the HKCo Stockholder shall execute, acknowledge, and
deliver (or shall ensure to be executed, acknowledged, and delivered), any
and
all certificates, opinions, financial statements, schedules, agreements,
resolutions, rulings or other instruments required by this Agreement to be
so
delivered at or prior to the Closing, together with such other items as may
be
reasonably requested by the parties hereto and their respective legal counsel
in
order to effectuate or evidence the Contemplated Transactions.
Section
3.04 Termination.
This
Agreement may be terminated by the Board of Directors of HKCo or HKCo only
in
the event that USCo or HKCo do not meet the conditions precedent set forth
in
Articles
V
and
VI.
If this
Agreement is terminated pursuant this section, this Agreement shall be of no
further force or effect, and no obligation, right or liability shall arise
hereunder.
ARTICLE
IV
SPECIAL
COVENANTS
Section
4.01 Access
to Properties and Records.
USCo
and HKCo will each afford to the officers and authorized representatives of
the
other party full access to the properties, books and records of USCo or HKCo,
as
the case may be, in order that each party may have a full opportunity to make
such reasonable investigation as it shall desire to make of the affairs of
the
other party, and each party will furnish to the other party such additional
financial and operating data and other information as to the business and
properties of USCo or HKCo, as the case may be, as the other party shall from
time to time reasonably request. Without limiting the foregoing, as soon as
practicable after the end of each fiscal quarter (and in any event through
the
last fiscal quarter prior to the Closing Date), each party shall provide the
other party with quarterly internally prepared and unaudited financial
statements.
Section
4.02 Delivery
of Books and Records.
At the
Closing, HKCo shall deliver to USCo the originals of the corporate minute books,
books of account, contracts, records, and all other books or documents of HKCo
now or then in the possession of HKCo or its representatives. USCo shall deliver
to HKCo the originals of the corporate minute books, books of account,
contracts, records, and all other books or documents of USCo now or then in
the
possession of USCo or its representatives.
Section
4.03 Third
Party Consents and Certificates.
USCo
and HKCo agree to cooperate with each other in order to obtain any required
third party consents to this Agreement and the Contemplated
Transactions.
Section
4.04 Board
Actions.
(a) Prior
to
the Closing, USCo shall effectuate a 5-for-1 forward stock split with respect
to
the USCo Common Stock (the “Forward
Stock Split”),
which
shall be pursuant to documentation in form and substance reasonably satisfactory
to HKCo and its counsel.
10
(b) Prior
to
the Closing, USCo shall cause its fiscal year-end to be changed from November
30
to December 31, effective on or prior to August 29, 2008.
(c) Prior
to
the Closing, USCo shall (i) declare a dividend of the issued and outstanding
capital stock of Community Alliance to the holders of the USCo Common Stock
as
of a date prior to the Closing Date, which dividend shall be paid upon the
effectiveness of the registration of the common stock, par value $0.001 per
share, of Community Alliance (the “Spin-Off”),
(ii)
distribute to its shareholders an information statement that describes the
Spin-Off and Community Alliance and that substantially complies with Regulation
14A or Regulation 14C of the Exchange Act, and (iii) cause Community Alliance
to
file a Form 10 to register the common stock of Community Alliance with the
U.S.
Securities and Exchange Commission.
(d) After
the
Closing, USCo shall cause Community Alliance to use its best efforts to cause
the registration of Community Alliance’s common stock to be effective as soon as
possible, including responding as promptly as practicable, but in any event
within 30 days, after the receipt of any comments from the U.S. Securities
and
Exchange Commission and submitting any other filings or information as may
be
required by any Governmental Authorities in connection with the consummation
of
the Spin-Off.
Section
4.05 Cancellation
of Certain Shares of USCo Common Stock.
Prior to
the Closing Date, each Principal USCo Stockholder shall, after the Forward
Stock
Split, deliver to the Company, and the Company shall caused to be cancelled,
567,500 shares
of
USCo Common Stock. In consideration for the cancellation of such USCo Common
Stock, each Principal USCo Stockholders will receive, on the Closing Date,
a
wire transfer of $5,000 in
immediately available funds to an account designated by such Principal USCo
Stockholder at least five (5) Business Days prior to the Closing Date.
Section
4.06 Designation
of Directors and Officer.
Upon the
execution of this Agreement, USCo shall, as promptly as practicable, (i) accept
the resignation of Ms. Xxxxx Xxxxx Xxx as director, Treasurer and Secretary,
effective as of the Closing Date, (ii) accept Xx. Xxxxxxx Xxx’x resignation as
President and Chief Executive Officer (effective as of the Closing Date) and
as
director (effective upon the expiration of time period required under Rule
14F-1), (iii) increase its Board of Directors to seven (7), and (iv) elect
Xx.
Xxxx Shiping to the Board of Directors as a director and Chairman of the Board.
Upon compliance with Rule 14F-1, promulgated under the Exchange Act, the
following persons will be appointed as directors of USCo: Xxxxxx X. Xxxxx,
Yang
Bin, Gao Yang, Qu Zhong, Kong Xiaoyan and Xxxxx Xxxxxxx. In addition, USCo
shall
also, immediately upon the execution of this Agreement, appoint as officers
of
USCo the following persons: Xx.
Xxxx
Shiping as President and Chief Executive Officer of USCo, Xx. Xxxx
Xinwei as
Chief
Financial Officer, Treasurer and Vice President of USCo, Xx. Xx
Yangqian as
Chief
Operating Officer and Vice President of USCo, and Xx. Xxxx Bin as Senior Vice
President (General Manager, Head of Sales) of USCo and Xx. Xxxxx
Weihong as
Secretary and Senior Vice President (Head of Human Resources and General
Administration) of USCo, in each case effective as of the date
hereof.
Section
4.07 Exclusive
Dealing Rights.
Until
5:00 P.M. New York City time on November 12, 2008:
11
(a) In
recognition of the substantial time and effort which USCo has spent and will
continue to spend in investigating HKCo and its business and in addressing
the
matters related to the Contemplated Transactions, each of which may preempt
or
delay other management activities, neither HKCo, nor any of its officers,
directors, employees, representatives or agents will directly or indirectly
solicit or initiate any discussions or negotiations with or, except where
required by fiduciary obligations under applicable law as advised by counsel,
participate in any negotiations with or provide any information to or otherwise
cooperate in any other way with, or facilitate or encourage any effort or
attempt by, any corporation, partnership, person or other entity or group (other
than USCo and its directors, officers, employees, representatives and agents)
concerning any merger, sale of substantial assets, sale of shares of capital
stock, (including without limitation, any public or private offering of the
HKCo
Common Stock) or similar transactions involving HKCo (all such transactions
being referred to as “HKCo
Acquisition Transactions”),
other
than activities related to financings. If HKCo receives any proposal with
respect to an HKCo Acquisition Transaction, it will immediately communicate
to
USCo the fact that it has received such proposal and the principal terms
thereof.
(b) In
recognition of the substantial time and effort which HKCo has spent and will
continue to spend in investigating USCo and its business and in addressing
the
matters related to the Contemplated Transactions, each of which may preempt
or
delay other management activities, neither USCo, nor any of its officers,
directors, employees, representatives or agents will directly or indirectly
solicit or initiate any discussions or negotiations with or, except where
required by fiduciary obligations under applicable law as advised by counsel,
participate in any negotiations with or provide any information to or otherwise
cooperate in any other way with, or facilitate or encourage any effort or
attempt by, any corporation, partnership, person or other entity or group (other
than HKCo and its directors, officers, employees, representatives and agents)
concerning any merger, sale of substantial assets, sale of shares of capital
stock, (including without limitation, any public or private offering of the
USCo
Common Stock) (all such transactions being referred to as “USCo
Acquisition Transactions”).
If
USCo receives any proposal with respect to a USCo Acquisition Transaction,
it
will immediately communicate to HKCo the fact that it has received such proposal
and the principal terms thereof.
Section
4.08 Actions
Prior to Closing.
(a) From
and
after the date of this Agreement until the Closing Date and except as set forth
in the USCo Schedules or HKCo Schedules or as permitted or contemplated by
this
Agreement, USCo (subject to paragraph (b) below) and HKCo respectively, will
each:
(i) carry
on
its business in substantially the same manner as it has heretofore;
(ii) maintain
and keep its properties in states of good repair and condition as at present,
except for depreciation due to ordinary wear and tear and damage due to
casualty;
12
(iii) maintain
in full force and effect insurance comparable in amount and in scope of coverage
to that now maintained by it;
(iv) perform
in all material respects all of its obligations under any material contracts,
leases, and instruments relating to or affecting its assets, properties, and
business;
(v) use
its
best efforts to maintain and preserve intact its business organization, to
retain its key employees, and to maintain its relationship with its material
suppliers and customers; and
(vi) fully
comply with and perform in all material respects all obligations and duties
imposed on it by all federal and state laws and all rules, regulations, and
orders imposed by federal or state governmental authorities.
(b) From
and
after the date of this Agreement until the Closing Date, neither USCo nor HKCo
will:
(i) make
any
changes in their Organizational Documents, including any change of name, except
as contemplated by this Agreement;
(ii) take
any
action described in Section 1.07, in the case of HKCo, or in Section 2.07,
in
the case of USCo (all except as permitted therein or as disclosed in the HKCo
Schedules or USCo Schedules, as applicable);
(iii) enter
into or amend any contract, agreement, or other instrument of any of the types
described in the HKCo Schedules or USCo Schedules, except that a party may
enter
into or amend any contract, agreement, or other instrument in the ordinary
course of business involving the sale of goods or services; or
(iv) sell
any
assets or discontinue any operations, sell any shares of capital stock or
conduct any similar transactions other than in the ordinary course of
business.
Section
4.09 Indemnification.
(a) HKCo
hereby agrees to indemnify USCo and each of the officers, agents and directors
of USCo as of the date of execution of this Agreement against any loss,
liability, claim, damage, or expense (including, but not limited to, any and
all
expense whatsoever reasonably incurred in investigating, preparing, or defending
against any litigation, commenced or threatened, or any claim whatsoever)
(“Loss”),
to
which it or they may become subject arising out of or based on any inaccuracy
appearing in or misrepresentations made under Article
I.
The
indemnification provided for in this paragraph shall survive the Closing and
consummation of Contemplated Transactions and termination of this Agreement
for
one (1) year following the Closing.
(b) The
HKCo
Stockholder, agrees to indemnify USCo and each of the officers, agents and
directors of USCo as of the date of execution of this Agreement against any
Loss, to which it or they may become subject arising out of or based on any
inaccuracy appearing in or misrepresentations made under Section 3.01. The
indemnification provided for in this paragraph shall survive the Closing and
consummation of the Contemplated Transactions and termination of this Agreement
for one (1) year following the Closing.
13
(c) USCo
hereby agrees to indemnify HKCo and each of the officers, agents, and directors
of HKCo and the HKCo Stockholder as of the date of execution of this Agreement
against any Loss to which it or they may become subject arising out of or based
on any inaccuracy appearing in or misrepresentation made under Article
II.
The
indemnification provided for in this paragraph shall survive the Closing and
consummation of the Contemplated Transactions and termination of this Agreement
for one (1) year following the Closing.
Section
4.10 The
Acquisition of USCo Common Stock.
USCo
and HKCo understand and agree that the consummation of the Contemplated
Transactions, including the issuance of the USCo Common Stock to HKCo
Stockholder in exchange for the HKCo Common Stock as contemplated herein,
constitutes the offer and sale of securities under the Securities Act and
applicable state statutes. USCo and HKCo agree that such transactions shall
be
consummated in reliance on exemptions from the registration and prospectus
delivery requirements of such statutes, which depend, among other items, on
the
circumstances under which such securities are acquired.
(a) In
order
to provide documentation for reliance upon the exemptions from the registration
and prospectus delivery requirements for such transactions, each stockholder
of
HKCo shall execute and deliver to USCo a Suitability Letter and an Investment
Representation Letter in substantially the same form as that attached hereto
as
Exhibit
A
and
Exhibit
B,
respectively.
(b) In
connection with the Contemplated Transactions, USCo and HKCo shall each file,
with the assistance of the other party and their respective legal counsel,
such
notices, applications, reports, or other instruments as may be deemed by them
to
be necessary or appropriate in an effort to document reliance on such
exemptions, and the appropriate regulatory authority in the states where the
stockholders of HKCo reside unless an exemption requiring no filing is available
in such jurisdiction, all to the extent and in the manner as may be deemed
by
such party to be appropriate.
(c) In
order
to more fully document reliance on the exemptions as provided herein, HKCo,
the
HKCo Stockholder, and USCo shall execute and deliver to the other party, at
or
prior to the Closing, such further letters of representation, acknowledgment,
suitability, or the like as HKCo or USCo and their respective counsel may
reasonably request in connection with reliance on exemptions from registration
under such securities laws.
(d) The
HKCo
Stockholder acknowledges that the basis for relying on exemptions from
registration or qualifications are factual, depending on the conduct of the
various parties, and that no legal opinion or other assurance will be required
or given to the effect that the Contemplated Transactions are in fact exempt
from registration or qualification.
14
Section
4.11 Sales
of Securities Under Rule 144, If Applicable.
(a) USCo
will
use its best efforts to at all times satisfy the current public information
requirements of Rule 144 promulgated under the Securities Act so that its
stockholders can sell restricted securities that have been held for one (1)
year
or more or such other restricted period as required by Rule 144 as it is from
time to time amended.
(b) Upon
being informed in writing by any person holding restricted stock of USCo that
such person intends to sell any shares under Rule 144 promulgated under the
Securities Act (including any rule adopted in substitution or replacement
thereof), USCo will certify in writing to such person that it is compliance
with
Rule 144 current public information requirement to enable such person to sell
such person’s restricted stock under Rule 144, as may be applicable under the
circumstances.
(c) If
any
certificate representing any such restricted stock is presented to USCo’s
transfer agent for registration or transfer in connection with any sales
theretofore made under Rule 144, provided
such
certificate is duly endorsed for transfer by the appropriate person(s) or
accompanied by a separate stock power duly executed by the appropriate
person(s), in each case with reasonable assurances that such endorsements are
genuine and effective and is accompanied by a legal opinion that such transfer
has complied with the requirements of Rule 144, as the case may be, USCo will
promptly instruct its transfer agent to register such transfer and to issue
one
or more new certificates representing such shares to the transferee and, if
appropriate under the provisions of Rule 144, as the case may be, free of any
stop transfer order or restrictive legend.
(d) This
Section 4.11 shall survive the closing of this Agreement for a period of two
(2)
years.
ARTICLE
V
CONDITIONS
PRECEDENT TO OBLIGATIONS OF USCO
The
obligations of USCo under this Agreement are subject to the satisfaction, at
or
before the Closing Date, of the following conditions:
Section
5.01 Accuracy
of Representations and Performance of Covenants.
The
representations and warranties made by HKCo and the HKCo Stockholder in this
Agreement were true when made and shall be true on the Closing Date with the
same force and effect as if such representations and warranties were made on
and
as of the Closing Date. HKCo shall have performed or complied with all covenants
and conditions required by this Agreement to be performed or complied with
by
HKCo prior to or at the Closing.
Section
5.02 Officer’s
Certificate.
USCo
shall have been furnished with a certificate dated the Closing Date and signed
by the sole director of HKCo, certifying that: (a) no litigation, proceeding,
investigation, or inquiry is pending, or to the best knowledge of HKCo,
threatened, which might result in an action to enjoin or prevent the
consummation of the Contemplated Transactions, or, to the extent not disclosed
in the HKCo Schedules, by or against HKCo, which might result in any material
adverse change in any of the assets, properties, business, or operations of
HKCo, and (b) the conditions set forth in Sections 5.01, 5.04 and 5.05 have
been
satisfied.
15
Section
5.03 Good
Standing.
USCo
shall have received a certificate of good standing from a qualified attorney
in
Hong Kong, dated as of a date prior to the Closing Date certifying that HKCo
is
in good standing as a corporation in Hong Kong.
Section
5.04 No
Governmental Prohibition.
No
order, statute, rule, regulation, executive order, injunction, stay, decree,
judgment or restraining order shall have been enacted, entered, promulgated
or
enforced by any court or governmental or regulatory authority or instrumentality
which prohibits the consummation of the Contemplated Transactions.
Section
5.05 Consents.
All
consents, approvals, waivers or amendments pursuant to all contracts, licenses,
permits, trademarks and other intangibles in connection with the Contemplated
Transactions, or for the continued operation of HKCo after the Closing Date
on
the basis as presently operated shall have been obtained.
Section
5.06 Other
Items.
USCo
shall have received such further opinions, documents, certificates or
instruments relating to the Contemplated Transactions as USCo may reasonably
request.
ARTICLE
VI
CONDITIONS
PRECEDENT TO OBLIGATIONS OF HKCO
AND
THE HKCO STOCKHOLDER
The
obligations of HKCo and the HKCo Stockholder under this Agreement are subject
to
the satisfaction, at or before the Closing Date, of the following
conditions:
Section
6.01 Accuracy
of Representations and Performance of Covenants.
The
representations and warranties made by USCo in this Agreement and by the
Principal USCo Stockholders in the Indemnity Agreement to be delivered on the
Closing Date (the “Indemnity
Agreement”)
were
true when made and shall be true on the Closing Date with the same force and
effect as if such representations and warranties were made on and as of the
Closing Date. Each of USCo and each Principal USCo Stockholder shall have
performed and complied with all covenants and conditions required by this
Agreement and the Indemnity Agreement to be performed or complied with by USCo
and the Principal USCo Stockholders (as the case may be) prior to or at the
Closing.
Section
6.02 Officer’s
Certificate.
HKCo
shall have been furnished with a certificate dated the Closing Date and signed
by a duly authorized officer of USCo, certifying that: (a) no litigation,
proceeding, investigation or inquiry is pending, or to the best knowledge of
USCo threatened, which might result in an action to enjoin or prevent the
consummation of the Contemplated Transactions, or, to the extent not disclosed
in the USCo Schedules, by or against USCo, which might result in any material
adverse change in any of the assets, properties or operations of USCo, and
(b)
the conditions set forth in Section 6.01, 6.04, and 6.05 have been
satisfied.
16
Section
6.03 Good
Standing.
HKCo
shall have received a certificate of good standing from the Secretary of State
of Nevada or other appropriate office, dated as of a date within ten (10) days
prior to the Closing Date, certifying that USCo is in good standing as a
corporation in the State of Nevada and has filed all tax returns required to
have been filed by it to date and has paid all taxes reported as due
thereon.
Section
6.04 No
Governmental Prohibition.
No
order, statute, rule, regulation, executive order, injunction, stay, decree,
judgment or restraining order shall have been enacted, entered, promulgated
or
enforced by any court or governmental or regulatory authority or instrumentality
which prohibits the consummation of the Contemplated Transactions.
Section
6.05 Consents.
All
consents, approvals, waivers or amendments pursuant to all contracts, licenses,
permits, trademarks and other intangibles in connection with the Contemplated
Transactions, or for the continued operation of USCo after the Closing Date
on
the basis as presently operated shall have been obtained.
Section
6.06 Other
Items.
HKCo
and the HKCo Stockholder shall have received:
(a) An
original counterpart to the Indemnity Agreement duly executed by each Principal
USCo Stockholder; and
(b) further
opinions, documents, certificates, or instruments relating to the Contemplated
Transactions as HKCo and the HKCo Stockholder may reasonably
request.
ARTICLE
VII
MISCELLANEOUS
Section
7.01 Brokers.
USCo
and HKCo agree that, except as set out on Schedule
7.01
attached
hereto, there were no finders or brokers involved in bringing the parties
together or who were instrumental in the negotiation or execution of this
Agreement or consummation of the Contemplated Transactions. USCo and HKCo each
agree to indemnify the other party against any claim by any third person other
than those described above for any commission, brokerage, or finder’s fee
arising from the Contemplated Transactions based on any alleged agreement or
understanding between the indemnifying party and such third person, whether
express or implied from the actions of the indemnifying party.
Section
7.02 Governing
Law.
This
Agreement shall be governed by, enforced, and construed under and in accordance
with the laws of the United States of America and, with respect to the matters
of state law, with the laws of the State of New York. Venue for all matters
shall be in New York, New York, without giving effect to principles of conflicts
of law thereunder. Each of the parties irrevocably consents and agrees that
any
legal or equitable action or proceedings arising under or in connection with
this Agreement shall be brought exclusively in the federal courts of the United
States. By execution and delivery of this Agreement, each party hereto
irrevocably submits to and accepts, with respect to any such action or
proceeding, generally and unconditionally, the jurisdiction of the aforesaid
court, and irrevocably waives any and all rights such party may now or hereafter
have to object to such jurisdiction.
17
Section
7.03 Notices.
Any
notice or other communications required or permitted hereunder shall be in
writing and shall be sufficiently given if personally delivered to it or sent
by
facsimile, overnight courier or registered mail or certified mail, postage
prepaid, addressed as follows:
If
to HKCo or
|
|
HKCo
Stockholder, to:
|
Xx. Xxxx Shiping |
Xx.
00 Xx. 0 Xxxxxxx Xxx, Xxxxx 2, Construction Bank, FTZ
|
|
Tianjin
Province, The People’s Republic of China
|
|
Tel:
00-00-0000-0000
|
|
Fax:
00-00-0000-0000
|
|
With
copies to:
|
Xxxxxx
X. Xxxxxx, Esq.
|
K&L
Gates LLP
|
|
000
Xxxxxxxxx Xxxxxx
|
|
Xxx
Xxxx, XX 00000
|
|
Tel:
000-000-0000
|
|
Fax:
000-000-0000
|
|
If
to USCo, to:
|
Xxxxxxx
X. Xxx
|
c/o
Fresh Ideas Media, Inc.
|
|
0000
Xxxxxx Xxxx Xxxxx
|
|
Xxxxxx
Xxxx, XX 00000
|
|
Tel:
000-000-0000
|
|
Fax:
000-000-0000
|
|
Email:
xxxxxxxx@xxx.xxx
|
|
With
copies to:
|
Xxxx
X. Xxxxxx, Attorney At Law
|
0000
X. Xxxxxxxx Xxx
|
|
Xxxxxxxxxx,
XX 00000
|
|
Tel:
000-000-0000
|
|
Fax:
000-000-0000
|
|
Email:
xxxxxxxx00@xxxxxxxxx.xxx
|
or
such
other addresses as shall be furnished in writing by any party in the manner
for
giving notices hereunder, and any such notice or communication shall be deemed
to have been given (a) upon receipt, if personally delivered, (b) on the day
after dispatch, if sent by overnight courier, (c) upon dispatch, if transmitted
by facsimile and receipt is confirmed by telephone, or (d) three (3) days after
mailing, if sent by registered or certified mail.
Section
7.04 Attorney’s
Fees.
In the
event that either party institutes any action or suit to enforce this Agreement
or to secure relief from any default hereunder or breach hereof, the prevailing
party shall be reimbursed by the losing party for all costs, including
reasonable attorney’s fees, incurred in connection therewith and in enforcing or
collecting any judgment rendered therein.
Section
7.05 Confidentiality.
Each
party hereto agrees with the other parties that, unless and until the
Contemplated Transactions have been consummated, it and its representatives
will
hold in strict confidence all data and information obtained with respect to
another party or any subsidiary thereof from any representative, officer,
director or employee, or from any books or records or from personal inspection,
of such other party, and shall not use such data or information or disclose
the
same to others, except (a) to the extent such data or information is published,
is a matter of public knowledge, or is required by law to be published; or
(b)
to the extent that such data or information must be used or disclosed in order
to consummate the Contemplated Transactions. In the event of the termination
of
this Agreement, each party shall return to the other parties all documents
and
other materials obtained by it or on its behalf and shall destroy all copies,
digests, work papers, abstracts or other materials relating thereto, and each
party will continue to comply with the confidentiality provisions set forth
herein.
18
Section
7.06 Public
Announcements and Filings.
Unless
required by applicable law or regulatory authority, none of the parties will
issue any report, statement or press release to the general public, to the
trade, to the general trade or trade press, or to any third party (other than
its advisors and representatives in connection with the Contemplated
Transactions) or file any document, relating to this Agreement and Contemplated
Transactions, except as may be mutually agreed by the parties. Copies of any
such filings, public announcements or disclosures, including any announcements
or disclosures mandated by law or regulatory authorities, shall be delivered
to
each party at least one (1) business day prior to the release
thereof.
Section
7.07 Schedules;
Knowledge.
The
HKCo Schedules and USCo Schedules referred to herein and delivered pursuant
to
and attached to this Agreement (collectively, “Schedules”)
are
integral parts of this Agreement. Nothing in a Schedule shall be deemed adequate
to disclose an exception to a representation or warranty made herein, unless
the
Schedule identifies the exception with reasonable particularity and describes
the relevant facts in reasonable detail, including by cross-reference to another
Schedule. The inclusion of any information in the Schedules shall not be deemed
to be an admission or acknowledgment, in and of itself, that such information
is
required by the terms hereof to be disclosed, is material to the business of
HKCo or USCo, as the case may be, or is outside the ordinary course of business.
HKCo is responsible for preparing the HKCo Schedules and USCo is responsible
for
preparing the USCo Schedules. Each of the HKCo Schedules and the USCo Schedules
will be arranged in paragraphs corresponding to the numbered and lettered
paragraphs contained in this Agreement, and the disclosure in any such numbered
and lettered section of the HKCo Schedules or the USCo Schedules, as the case
may be, shall qualify and shall be deemed to qualify such other paragraphs
in
this Agreement to the extent such qualification is reasonably apparent
regardless of the absence of any express cross-reference to such other
paragraph. Each party is presumed to have full knowledge of all information
set
forth in the other party’s Schedules delivered pursuant to this Agreement.
Section
7.08 Third
Party Beneficiaries.
This
contract is strictly between USCo, HKCo and the HKCo Stockholder, and, except
as
specifically provided, no director, officer, stockholder (other than the HKCo
Stockholder), employee, agent, independent contractor or any other person or
entity shall be deemed to be a third party beneficiary of this
Agreement.
Section
7.09 Expenses.
Subject
to Section 7.04 above, whether or not the Exchange is consummated, each of
USCo,
the HKCo Stockholder and HKCo will bear their own respective expenses, including
legal, accounting and professional fees, incurred in connection with the
Exchange or any of the other Contemplated Transactions.
19
Section
7.10 Entire
Agreement.
This
Agreement, together with the Schedules and any certificate or agreements
delivered on the Closing Date, represents the entire agreement between the
parties relating to the subject matter thereof and supersedes all prior
agreements, understandings and negotiations, written or oral, with respect
to
such subject matter.
Section
7.11 Survival;
Termination.
Except
as otherwise set forth in this Agreement, the representations, warranties,
and
covenants of the respective parties shall survive the Closing Date and the
consummation of Contemplated Transactions for a period of two (2)
years.
Section
7.12 Counterparts.
This
Agreement may be executed in multiple counterparts, each of which shall be
deemed an original and all of which taken together shall be but a single
instrument.
Section
7.13 Amendment
or Waiver.
Every
right and remedy provided herein shall be cumulative with every other right
and
remedy, whether conferred herein, at law, or in equity, and may be enforced
concurrently herewith, and no waiver by any party of the performance of any
obligation by the other parties shall be construed as a waiver or any other
default then, theretofore, or thereafter occurring or existing. At any time
prior to the Closing Date, this Agreement may by amended by a writing signed
by
all parties hereto, with respect to any of the terms contained herein, and
any
term or condition of this Agreement may be waived or the time for performance
may be extended by a writing signed by the party or parties for whose benefit
the provision is intended.
Section
7.14 Best
Efforts.
Subject
to the terms and conditions herein provided, each party shall use its best
efforts to perform or fulfill all conditions and obligations to be performed
or
fulfilled by it under this Agreement so that the Contemplated Transactions
shall
be consummated as soon as practicable. Each party also agrees that it shall
use
its best efforts to take, or cause to be taken, all actions and to do, or cause
to be done, all things necessary, proper or advisable under applicable laws
and
regulations to consummate and make effective this Agreement and the Contemplated
Transactions.
Section
7.15 References.
References to Sections, Articles, Schedules or Exhibits in this Agreement shall
be to Sections, Articles, Schedules or Exhibits to this Agreement unless
explicitly provided otherwise.
20
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first-above written.
By:
|
/s/
Xxxxxxx X. Xxx
|
|
Name: Xxxxxxx X. Xxx |
Title:
President
|
|
EVER
AUSPICIOUS INTERNATIONAL LIMITED
|
|
By:
|
Bright
Praise Enterprises Limited, its sole director
|
By:
|
/s/
Xxxxxx Xxxx
|
|
Name: Xxxx Xxxx Xxxxx Xxxxxx |
Title:
Director
|
|
BRIGHT
PRAISE ENTERPRISES LIMITED
|
|
By:
|
/s/
Xxxxxx Xxxx
|
|
Name: Xxxx Xxxx Xxxxx Xxxxxx |
Title:
Director
|
[Signature
Page to Share Exchange Agreement]
Exhibit
A
SUITABILITY
LETTER
TO: |
FRESH
IDEAS MEDIA, INC.
|
I
make
the following representations with the intent that they may be relied on by
Fresh Ideas Media, Inc. (the “Company”),
in
determining my suitability as a purchaser of securities of the Company.
2. I
have
had the opportunity to ask questions of, and receive answers and information,
from the officers of the Company and I deemed such information sufficient to
make an investment decision in the Company.
3. I
have
such knowledge and experience in business and financial matters that I am
capable of evaluating the Company, its business activities, and the risks and
merits of this prospective investment, and I
am
not
utilizing a purchaser representative (as defined in regulation D (“Regulation
D”)
promulgated pursuant to the Securities Act of 1933, as amended (the
“Securities
Act”))
in
connection with the evaluation of such risks and merits, except as set forth
in
paragraph 3.
4. I
shall
provide a separate written statement from each purchaser representative on
the
Purchaser Representative Acknowledgment Form available from the Company, in
which is disclosed (i) the relationship of the purchaser representative with
the
Company, if any, which has existed at any time during the previous two (2)
years, and compensation received or to be received as a result of such
relationship, and (ii) the education, experience, and knowledge in financial
and
business matters which enables the purchaser representative to evaluate the
relative merits and risks of an investment in the Company.
5. The
undersigned and the purchaser representatives listed above, if any, together
have such knowledge and experience in financial and business matters that they
are capable of evaluating the Company and the proposed activities thereof and
the merits and risks of this prospective investment.
6. I
have
adequate means of providing for my current needs and possible personal
contingencies and have no need in the foreseeable future for liquidity of an
investment in the Company.
7. Instructions:
Complete either (a) or (b) below, as applicable:
(a) FOR
ACCREDITED INVESTORS.
I
confirm that I am an “accredited investor” as defined under rule 501 of
Regulation D, as checked below:
A-1
(i) Any
bank
as defined in section 3(a)(2) of the Securities Act or any savings and loan
association or other institution as defined in section 3(a)(5)(A) of the
Securities Act whether acting in its individual or fiduciary capacity; any
broker or dealer registered pursuant to section 15 of the Securities Exchange
Act of 1934; any insurance company as defined in section 2(13) of the Securities
Act; any investment company registered under the Investment Company Act of
1940
or a business development company as defined in section 2(a)(48) of that Act;
any small business investment company licensed by the U. S. Small Business
Administration under section 301(c) or (d) of the Small Business Investment
Act
of 1958; any plan established and maintained by a state, its political
subdivisions, or any agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees, if such plan has total assets
in
excess of $5,000,000; any employee benefit plan within the meaning of the
Employee Retirement Income Security Act of 1974, if the investment decision
is
made by a plan fiduciary, as defined in section 3(21) of such Act, which is
either a bank, savings and loan association, insurance company, or registered
investment adviser, or if the employee benefit plan has total assets in excess
of $5,000,000 or, if a self-directed plan, with investment decisions made solely
by persons that are accredited investors;
o |
Yes
|
o
|
No
|
(ii) Any
private business development company as defined in section 302(a)(22) of the
Investment Advisers Act of 1940;
o |
Yes
|
o
|
No
|
(iii) Any
organization described in section 501(c)(3) of the Internal Revenue Code,
corporation, Massachusetts or similar business trust, or partnership, not formed
for the specific purpose of acquiring the securities offered, with total assets
in excess of $5,000,000;
o |
Yes
|
o
|
No
|
(iv) Any
director, executive officer, or general partner of the issuer of the securities
being offered or sold, or any director, executive officer, or general partner
of
a general partner of that issuer;
o |
Yes
|
o
|
No
|
(v) Any
natural person whose individual net worth or joint net worth with that person’s
spouse, at the time of his or her purchase exceeds $1,000,000;
o |
Yes
|
o
|
No
|
For
purposes of category (v), the term “net worth” means the excess of total assets
over total liabilities. In computing net worth for the purposes of category
(v)
above, the undersigned’s principal residence must be valued either at (A) cost,
including the cost of improvements, net of current encumbrances upon the
property or (B) the appraised value of the property as determined upon a written
appraisal used by an institutional lender making a loan to the individual
secured by the property, including the cost of subsequent improvements, net
of
current encumbrances upon the property.
A-2
(vi) Any
natural person who had an individual income in excess of $200,000 in each of
the
two (2) most recent years or joint income with that person’s spouse in excess of
$300,000 in each of those years and has a reasonable expectation of reaching
the
same income level in the current year;
o |
Yes
|
o
|
No
|
In
determining income, the undersigned should add to his or her adjusted gross
income any amounts attributable to tax exempt income received, losses claimed
as
a limited partner in any limited partnership, deductions claimed for depletion,
contributions to an XXX or Xxxxx retirement plan, alimony payments, and any
amount by which income from long-term capital gains has been reduced in arriving
at adjusted gross income.
(vii) Any
trust, with total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the securities offered, whose purchase is directed by
a
sophisticated person as described in section 230.506(b)(2)(ii); and
o |
Yes
|
o
|
No
|
(viii) Any
entity in which all of the equity owners are accredited investors.
o |
Yes
|
o
|
No
|
(b) FOR
NONACCREDITED INVESTORS.
I am
not
an
accredited investor.
The
following information is being provided here in lieu of furnishing a personal
financial statement.
(i) My
net
worth excluding principal residence, furnishings, and automobiles is at least
_____ times the total investment I intend to make in the Company;
(ii) My
annual
disposable income, after excluding all of my personal and family living expenses
and other cash requirements for current obligations, is such that the loss
of my
entire investment in the Company would not materially alter my standard of
living;
o |
Yes
|
o
|
No
|
(iii) Considering
the foregoing and all other relevant factors in my financial and personal
circumstances, I am able to bear the economic risk of an investment in the
Company.
o |
Yes
|
o
|
No
|
(b) FOR
NONACCREDITED INVESTORS.
I am
not
an
accredited investor.
The
following information is being provided here in lieu of furnishing a personal
financial statement.
(i) My
net
worth excluding principal residence, furnishings, and automobiles is at least
_____ times the total investment I intend to make in the Company;
(ii) My
annual
disposable income, after excluding all of my personal and family living expenses
and other cash requirements for current obligations, is such that the loss
of my
entire investment in the Company would not materially alter my standard of
living;
o |
Yes
|
o
|
No
|
(iii) Considering
the foregoing and all other relevant factors in my financial and personal
circumstances, I am able to bear the economic risk of an investment in the
Company.
o |
Yes
|
o
|
No
|
8. I
have
previously been advised that I would have an opportunity to review all the
pertinent facts concerning the Company, and to obtain any additional information
which I might request, to the extent possible or obtainable, without
unreasonable effort and expense, in order to verify the accuracy of the
information provided me.
A-3
9. I
have
personally communicated or been offered the opportunity to communicate with
executive officers of the Company to discuss the business and financial affairs
of the Company, its products and activities, and its plans for the future.
I
acknowledge that if I would like to further avail myself of the opportunity
to
ask additional questions of the Company, the Company will make arrangements
for
such an opportunity on request.
10. I
have
been advised that no accountant or attorney engaged by the Company is acting
as
my representative, accountant, or attorney.
11. I
will
hold title to my interest as follows:
o |
Community
Property
|
o
|
Separate
Property
|
o |
Joint
Tenants, with Right of Survivorship
|
o
|
Tenants
in Common
|
o
|
Other
(Single Person, Trust, etc., please indicate.)
|
||
12. I
am a
bona fide resident of the state of __________. The address below is my true
and
correct principal residence.
DATED
this ____ day of __________, 2008.
Name
(Please Print)
|
Name
of Joint Subscriber, If Any
|
|
Signature
|
Signature
|
|
Xxxxxx
Xxxxxxx
|
Xxxxxx
Xxxxxxx
|
|
Xxxx,
Xxxxx, and Zip Code
|
City,
State, and Zip Code
|
A-4
Exhibit
B
INVESTMENT
LETTER
FRESH
IDEAS MEDIA, INC.
Re: Purchase
of shares of Common Stock of Fresh Ideas Media, Inc.
Gentlemen:
In
connection with the acquisition by the undersigned of shares of Common Stock
of
Fresh Ideas Media, Inc. (the “Securities”),
the
undersigned represents that the Securities are being acquired without a view
to,
or for, resale in connection with any distribution of such Securities or any
interest therein without registration or other compliance under the Securities
Act of 1933, as amended (the “Securities
Act”),
and
that the undersigned has no direct or indirect participation in any such
undertaking or in the underwriting of such an undertaking.
The
undersigned understands that the Securities have not been registered, but are
being acquired by reason of a specific exemption under the Securities Act as
well as under certain state statutes for transactions by an issuer not involving
any public offering and that any disposition of the subject Securities may,
under certain circumstances, be inconsistent with this exemption and may make
the undersigned an “underwriter” within the meaning of the Securities Act. It is
understood that the definition of an “underwriter” focuses on the concept of
“distribution” and that any subsequent disposition of the subject Securities can
only be effected in transactions which are not considered distributions.
Generally, the term “distribution” is considered synonymous with “public
offering” or any other offer or sale involving general solicitation or general
advertising. Under present law, in determining whether a distribution occurs
when securities are sold into the public market, under certain circumstances
one
must consider the availability of public information regarding the issuer,
a
holding period for the securities sufficient to assure that the persons desiring
to sell the securities without registration first bear the economic risk of
their investment, and a limitation on the number of securities which the
stockholder is permitted to sell and on the manner of sale, thereby reducing
the
potential impact of the sale on the trading markets. These criteria are set
forth specifically in rule 144 promulgated under the Securities Act
(“Rule
144”).
After
one (1) year from the date the Securities are fully paid for and the
subscription is accepted by the issuer, all as calculated in accordance with
Rule 144(d), sales of the Securities in reliance on Rule 144 can only be made
in
limited amounts in accordance with the terms and conditions of that rule. After
two (2) years from the date the Securities are fully paid for, as calculated
in
accordance with Rule 144(d), it can generally be sold without meeting these
conditions provided the holder is not (and has not been for the preceding three
(3) months) an affiliate of the issuer.
B-1
Exhibit
B
Fresh
Ideas Media, Inc.
Page
Two
The
undersigned acknowledges that the Securities must be held and may not be sold,
transferred, or otherwise disposed of for value unless it is subsequently
registered under the Securities Act or an exemption from such registration
is
available; the issuer is under no obligation to register the Securities under
the Securities Act or under section 12 of the Securities Exchange Act of 1934,
as amended, except as may be expressly agreed to by it in writing; if Rule
144
is available, and no assurance is given that it will be, initially only routine
sales of such Securities in limited amounts can be made in reliance on Rule
144
in accordance with the terms and conditions of that rule; the issuer is under
no
obligation to the undersigned to make Rule 144 available, except as may be
expressly agreed to by it in writing; in the event Rule 144 is not available,
compliance with regulation A promulgated under the Securities Act or some other
exemption may be required before the undersigned can sell, transfer, or
otherwise dispose of such Securities without registration under the Securities
Act; the issuer’s registrar and transfer agent will maintain a stop transfer
order against the registration of transfer of the Securities; and the
certificate representing the convertible promissory notes and warrants composing
the Securities will bear a legend in substantially the following form so
restricting the sale of such Securities.
THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ARE “RESTRICTED
SECURITIES” WITHIN THE MEANING OF RULE 144 PROMULGATED UNDER THE SECURITIES ACT.
THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD OR
TRANSFERRED WITHOUT COMPLYING WITH RULE 144 IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION OR OTHER COMPLIANCE UNDER THE SECURITIES ACT.
The
issuer may refuse to register transfer of the Securities in the absence of
compliance with Rule 144 unless the undersigned furnishes the issuer with a
“no-action” or interpretative letter from the Securities and Exchange Commission
or an opinion of counsel reasonably acceptable to the issuer stating that the
transfer is proper; further, unless such letter or opinion states that the
Securities are free of any restrictions under the Securities Act, the issuer
may
refuse to transfer the Securities to any transferee who does not furnish in
writing to the issuer the same representations and agree to the same conditions
with respect to such Securities as are set forth herein. The issuer may also
refuse to transfer the Securities if any circumstances are present reasonably
indicating that the transferee’s representations are not accurate.
Very
truly yours,
|
|||
Dated:
|
|||
(Subscriber)
|
|||
|
(Joint Subscriber) |
B-2
HKCo
Schedules
Schedule
1.01 - Organization
See
attached.
Schedule
1.03 - Subsidiaries
Ever
Auspicious International Limited’s (the “Company”) wholly owned operating
subsidiary is Tianjin Seashore New District Shisheng Business Trading Group
Co.
Ltd. (formerly Tianjin Shisheng Investment Group Co. Ltd.) (“Shisheng”), a
company formed under the laws of the People’s Republic of China (the “PRC” or
“China”) and doing business in the PRC.
Shisheng
has three majority-owned operating subsidiaries, Tianjin Hengjia Port Logistics
Corp. (“Hengjia”), Tianjin Ganghui Information Technology Corp. (“Ganghui”), and
Tianjin Zhengji International Trading Corp. (“Zhengji”), each of which is a
company formed under the laws of the PRC and is doing business in the PRC.
The
Company operates through its operating subsidiaries, Shisheng, Hengjia, Ganghui
and Zhengji.
Schedule
1.04 - Financial Statements
Reference
is made to Exhibits 99.1 and 99.2 of the Current Report on Form 8-K filed by
Fresh Ideas Media, Inc. on September 10, 2008.
Schedule
1.09 - Material Contracts
1. Lease
Agreement, effective as of March 31, 2003 between China Construction Bank
Tianjin Tariff-free Zone Branch and Tianjin Shisheng Investment Group
Ltd.
2. Lease
Agreement, effective as of January 1, 2007, between Tianjin Port International
Car Exhibit Center and Tianjin Shisheng Investment Group Ltd.
3.
Supplementary
Agreement, dated as of December 8, 2007, between Tianjin Port International
Car
Exhibit Centre and Tianjin Shisheng Investment Group Ltd.
4. During
2007, Xxxxx Xxxxxxx, the Secretary and Chairwoman of Shisheng, made non-interest
bearing loans to Shisheng from time to time to meet working capital needs of
Shisheng. As of December 31, 2006, the outstanding balance of such loans was
$9,881,836. For the year ended December 31, 2007, Shisheng made borrowings
in an
aggregate amount of $114,514,111 from Xxxxx Xxxxxxx, and Shisheng made
repayments in an aggregate amount of $125,243,219. As of December 31, 2007,
the
outstanding balance due from Shisheng to Xxxxx Xxxxxxx was $306,088. The
transactions were approved by all the directors and stockholders of
Shisheng.
For
the
six months ended June 30, 2008, Shisheng made aggregate borrowings from Xxxxx
Xxxxxxx of $69,711,751 and aggregate repayments of $69,883,086. As of June
30,
2008, the outstanding balance due to Xxxxx Xxxxxxx was $150,628. The
transactions were approved by all the directors and stockholders of
Shisheng.
5. Each
of
the executive officers of Shisheng have entered into standard employment
contracts with Shisheng. The contracts have one-year terms and are otherwise
consistent with the standard form prescribed by the Tianjin Labor and Social
Security Administration. None of the employment contracts provide for annual
total compensation payments in excess of $100,000.
6.
On
November 1, 2007, the Company entered into a Share Exchange Agreement with
Xxxxx
Xxxxxxx, Xia Qiming, and Qian Yuxi, pursuant to which the Sellers transferred
their interest in Shisheng to the Company for an aggregate purchase price of
RMB
95,000,000. As a result of this transaction, the Company owns all of the capital
stock of Shisheng.
USCo
Schedules
Schedule
2.01 - Organization
See
attached.
Schedule
2.14 - Bank Accounts
(a)
|
Compass
Bank
|
000
Xxxxxx Xxxxx Xxxxxxx
|
|
Xxxxxx
Xxxx, XX 00000
|
|
Account
Number #2504562789
|
|
Signatories
- Xxxxxxx X. Xxx and A. Xxxxx Xxx
|
|
(b)
|
None
|
(c)
|
Delivered
separately.
|
(d)
|
None
|
(e)
|
Xxxxxxx
X. Xxx, President, Chief Executive Officer, Director
|
A.
Xxxxx Xxx, Treasurer, Secretary,
Director
|
Schedule
7.01 - Brokers
None
ARTICLES
OF INCORPORATION
OF
FRESH
IDEAS MEDIA, INC.
The
undersigned Incorporator, being a natural person of the age of eighteen (18)
years or more and desiring to form a body corporate under the laws of the
State
of Nevada, does hereby sign, verify and deliver in duplicate to the Secretary
of
State of the State of Nevada these Articles of Incorporation:
ARTICLE
I
NAME
The
name
of the Corporation is: Fresh Ideas Media, Inc.
ARTICLE
II
PERIOD
OF
DURATION
This
Corporation shall exist in perpetuity, from and after the date of filing
these
Articles of Incorporation with the Secretary of State of the State of Nevada
unless dissolved according to law.
ARTICLE
III
CAPITAL
STRUCTURE
Section
1. Authorized Capital. The Corporation is authorized to issue two classes
of
stock to be designated, respectively, Preferred Stock ("Preferred Stock")
and
Common Stock ("Common Stock"). The total number of shares of capital stock
that
the Corporation shall have authority to issue is One Hundred Million
(100,000,000). The total number of shares of Preferred Stock the Corporation
shall have authority to issue is Five Million (5,000,000). The total number
of
shares of Common Stock the Corporation shall have authority to issue is Ninety
Five Million (95,000,000). The Preferred Stock shall have a par value of
$0.001
and the Common Stock shall have a par value of $0.001.
Section
2. Preferred Stock. The Corporation, by resolution of its Board of Directors,
may divide and issue the Preferred Stock in series. Preferred Stock of each
series when issued shall be designated to distinguish them from the shares
of
all other series. The Board of Directors is hereby expressly vested with
the
authority to divide the class of Preferred Stock into series and to fix and
determine the relative rights and preferences of the shares of any such series
so established to the full extent permitted by these Articles of Incorporation
and the Nevada Corporation Code in respect to the following:
1
1.
The
number of shares to constitute such series, and the distinctive designations
thereof;
(a) The
rate
and preference of dividends, if any, the time of payment of dividends, whether
dividends are cumulative and the date from which any dividend shall
accrue;
(b)
Whether shares may be redeemed and, if so, the redemption price and the terms
and conditions of redemption;
(c)
The
amount payable upon shares in event of involuntary
liquidation;
(d)
The
amount payable upon shares in event of voluntary
liquidation;
(e)
Sinking
fund or other provisions, if any, for the redemption or purchase of
shares;
(f)
The
terms
and conditions on which shares may be converted, if the shares of any series
are
issued with the privilege of conversion;
(g)
Voting
powers, if any; and
(h)
Any
other
relative rights and preferences of shares of such series, including, without
limitation, any restriction on an increase in the number of shares of any
series
theretofore authorized and any limitation or restriction of rights or powers
to
which shares of any future series shall be subject.
Section
3. Common Stock. The holders of the Common Stock shall be entitled to one
vote
for each share of Common Stock held by them of record at the time for
determining the holders thereof entitled to vote.
The
rights of holders of Common Stock to receive dividends or share in the
distribution of assets in the event of liquidation, dissolution or winding
up of
the affairs of the Corporation shall be subject to the preferences, limitations
and relative rights of the Preferred Stock fixed in the resolution or
resolutions which may be adopted from time to time by the Board of Directors
of
the Corporation providing for the issuances of one or more series of the
Preferred Stock.
Section
4. Assessment and Consideration. The capital stock, after the amount of the
subscription price has been paid in, shall not be subject to assessment to
pay
the debts of the Corporation.
Any
stock
of the Corporation may be issued for money, property, services rendered,
labor
done, cash advances for the Corporation, or for any other assets of value
in
accordance with the action of the Board of Directors, whose judgment as to
value
received in return therefor shall be conclusive and, upon the receipt of
said
consideration, when issued shall be fully paid and
nonassessable
shares.
2
ARTICLE
IV
OFFICES
AND AGENT
Section
1. Initial Registered Office and Initial Registered Agent. The address of
the
Corporation's initial registered office and the name of its initial registered
agent at that office are:
Incorp
Services, Inc. 0000 X. Xxxxxxx Xxxx, Xxxxx 0, Xxx Xxxxx, Xxxxxx
00000
Section
2. Initial Principal Office. The address of the Corporation's initial principal
office is:
558
Castle Pines Pkwy Suite B4-158
Castle
Rock, Colorado 80108
ARTICLE
V
PURPOSES
The
purposes for which the Corporation is organized are as follows:
(a)
To
engage in all lawful business; and
(b)
To
have, enjoy and exercise all of the rights, powers and privileges conferred
upon
corporations incorporated pursuant to Nevada law, whether now or hereafter
in
effect and whether or not herein specifically mentioned.
The
foregoing enumeration of purposes and powers shall not limit or restrict
in any
manner the transaction of other business, the pursuit of other purposes,
or the
exercise of other and further rights and powers that may now or hereafter
be
permitted or provided by law.
ARTICLE
VI
QUORUM
FOR SHAREHOLDERS' MEETINGS
Unless
otherwise provided in the bylaws, fifty on percent (51%) of the outstanding
shares shall constitute a quorum at any meeting of shareholders.
3
ARTICLE
VII
BOARD
OF
DIRECTORS
The
corporate powers shall be exercised by or under the authority of, and the
business and affairs of the Corporation shall be managed under the direction
of,
a Board of Directors.
The
number of directors shall be fixed in accordance with the bylaws.
ARTICLE
VIII
CUMULATIVE
VOTING
Cumulative
voting shall not be permitted in the election of directors.
ARTICLE
IX
PREEMPTIVE
RIGHTS
No
holder
of any shares of the Corporation, whether now or hereafter authorized, shall
have any preemptive or preferential right to acquire any unissued shares
or
securities of the Corporation, including shares or securities held in the
treasury of the Corporation or securities convertible into shares or carrying
stock purchase warrants or privileges.
ARTICLE
X
LIMITATION
ON DIRECTOR LIABILITY
A
director of the Corporation shall not be personally liable to the Corporation
or
to its shareholders for monetary damages for breach of fiduciary duty as
a
director; except that this provision shall not eliminate or limit the liability
of a director to the Corporation or to its shareholders for monetary damages
otherwise existing for (i) any breach of the director's duty of loyalty to
the
Corporation or to its shareholders; (ii) acts or omissions not in good faith
or
which involve intentional misconduct or a knowing violation of law; (iii)
acts
specified in Section 78.7502 and other sections of the Nevada Corporation
Code;
or (iv) any transaction from which the director directly or indirectly derived
any improper personal benefit. If the Nevada Corporation Code is hereafter
amended to eliminate or limit further the liability of a director, then,
in
addition to the elimination and limitation of liability provided by the
preceding sentence, the liability of each director shall be eliminated or
limited to the fullest extent permitted by the Nevada Corporation Code as
so
amended. Any repeal or modification of this Article X shall not adversely
affect
any right or protection of a director of the Corporation under this Article
X,
as in effect immediately prior to such repeal or modification, with respect
to
any liability that would have accrued, but for this Article X, prior to such
repeal or modification.
4
ARTICLE
XI
INDEMNIFICATION
The
Corporation shall indemnify, to the fullest extent permitted by applicable
law
in effect from time to time, any person, and the estate and personal
representative of any such person, against all liability and expense (including
attorneys' fees and costs of litigation) incurred by reason of the fact that
he
is or was a director or officer of the Corporation or, while serving as a
director or officer of the Corporation, he is or was serving at the request
of
the Corporation as a director, officer, partner, trustee, employee, fiduciary,
or agent of, or in any similar managerial or fiduciary position of, another
domestic or foreign corporation or other individual or entity or of an employee
benefit plan.
The
Corporation shall also indemnify any person who is serving or has served
the
Corporation as director, officer, employee, fiduciary, or agent, and that
person's estate and personal representative, to the extent and in the manner
provided in any bylaw, resolution of the shareholders or directors, contract,
or
otherwise, so long as such provision is legally permissible.
ARTICLE
XII
INTERESTED
CONTRACTS
No
contract or transaction between the Corporation and one or more of its directors
or officers, or between the Corporation and any other corporation, firm
association, or entity in which one or more of its directors are directors
or
officers or are financially interested, shall be void or voidable solely
for
this reason, or solely because such directors are present at the meeting
of the
Board of Directors or a committee thereof which authorizes, approves or ratifies
such contract or transactions or solely because their votes are counted for
such
purpose if (i) the material facts of such relationship or interest and as
to the
contract or transaction are disclosed or known to the Board of Directors
or
committee, and the Board of Directors or the committee in good faith authorizes
the contract or transaction by the affirmative votes of a majority of the
disinterested directors, even through the disinterested directors be less
than a
quorum; or (ii) the material facts of such relationship or interest and as
to
the contract or transaction are disclosed or known to the shareholders entitled
to vote, and the contract or transaction is specifically approved in good
faith
by the vote of the shareholders; or (iii) the contract or transaction is
fair
and reasonable to the Corporation as of the time it is authorized, approved
or
ratified, by the Board of Directors, a committee thereof or the stockholders.
Common or interested directors may be counted in determining the presence
of a
quorum at a meeting of the Board of Directors or a committee thereof which
authorizes, approves, or ratifies such contract or transaction.
5
ARTICLE
XIII
INITIAL
BOARD OF DIRECTORS
The
initial board of directors of the Corporation shall consist of not less than
1
and not more than 9 members. The names of the initial directors
are:
NAME:
Xxxx X. Xxx
ARTICLE
XIV
INCORPORATOR
The
name
and address of the incorporator is: Xxxx X. Xxx 000 Xxxxxx Xxxxx Xxxx, Xxxxx
X0-000, Xxxxxx Xxxx Xxxxxxxx 00000
ARTICLE
XV
RESERVATION
The
Corporation reserves the right to amend, alter, change or repeal any provision
contained in these Articles of Incorporation, in the manner now or thereafter
prescribed by statute, and all rights conferred upon shareholders herein
are
granted subject to this reservation.
ARTICLE
XVI
EFFECTIVE
DATE AND TIME
These
Articles of Incorporation shall become effective upon filing.
On
behalf
of Fresh Ideas Media, Inc., the undersigned, by his signature below, does
hereby
confirm, under penalty of perjury, that the foregoing Articles of Incorporation
of Fresh Ideas Media, Inc. constitute the act and deed of Fresh Ideas Media,
Inc. and the facts stated herein are true.
6
Fresh
Ideas Media, Inc. hereby consents to the appointment as the initial registered
agent for the Corporation.
Registered
Agent:
Incorp
Services, Inc. 0000 X. Xxxxxxx Xxxx Xxxxx 0, Xxx Xxxxx, Xxxxxx
00000.
IN
WITNESS WHEREOF, the above-named incorporator has signed these Articles of
Incorporation
this 18th day of February, 2005.
Xxxx
X. Xxx, Incorporator
|
7
BYLAWS
OF
FRESH
IDEAS MEDIA, INC.
(As
amended on October 19, 2007)
ARTICLE
I
OFFICES
The
registered office of Fresh Ideas Media, Inc. (the “Corporation”), shall be
located in the State of Nevada. The Corporation may have its principal
office
and such other offices either within or without the State of Nevada as
the Board
of Directors of the Corporation (the “Board”) may designate or as the business
of the Corporation may require.
The
registered office of the Corporation in the Articles of Incorporation (the
“Articles”) need not be identical with the principal office.
ARTICLE
II
SHAREHOLDERS
Section
1. Annual
Meeting.
The
annual meeting of the shareholders shall be held each year on a date and
at a
time and place to be determined by resolution of the Board, for the purpose
of
electing directors and for the transaction of such other business as may
come
before the meeting. If the election of directors shall not be held on the
day
designated for the annual meeting of the shareholders, or at any adjournment
thereof, the Board shall cause the election to be held at a special meeting
of
the shareholders.
Section
2. Special
Meetings.
Special
meetings of the shareholders for any purpose, unless otherwise provided
for by
statute, may be called by the president, the Board or by the president
at the
request of the holders of not less than one-tenth of all the shares of
the
Corporation entitled to vote at the meeting.
Section
3. Place
of Meeting.
The
Board may designate any place, either within or without the State of Nevada,
as
the place of meeting for any annual or special meeting. If no designation
is
made, the place of meeting shall be the registered office of the Corporation
in
the State of Nevada.
Section
4. Notice
of Meeting.
Written
notice, stating the place, day and hour of the meeting and, in case of
a special
meeting, the purpose or purposes for which the meeting is called, shall
be
delivered as the laws of the State of Nevada shall provide.
Section
5. Fixing
of Record Date.
For the
purpose of determining shareholders entitled to notice of or to vote at
any
meeting of shareholders or any adjournment thereof, or shareholders entitled
to
receive payment of any dividend, or in order to make a determination of
shareholders for any other proper purpose, the Board may fix in advance
a date
(the “Record Date”) for any such determination of shareholders, which date shall
be not more than 50 days prior to the date on which the particular action
requiring such determination of shareholders is to be taken. If no Record
Date
is fixed by the Board, the Record Date for any such purpose shall be ten
days
before the date of such meeting or action. The Record Date determined for
the
purpose of ascertaining the number of shareholders entitled to notice of
or to
vote at a meeting may not be less than ten days prior to the meeting. When
a
Record Date has been determined for the purpose of a meeting, the determination
shall apply to any adjournment thereof.
-1-
Section
6. Quorum.
If less
than a quorum of the outstanding shares as provided for in the Articles
are
represented at a meeting, such meeting may be adjourned without further
notice
for a period which shall not exceed 60 days. At such adjourned meeting,
at which
a quorum shall be present, any business may be transacted which might have
been
transacted at the original meeting. Once a quorum is present at a duly
organized
meeting, the shareholders present may continue to transact business until
adjournment, notwithstanding any departures of shareholders during the
meeting
which leave less than a quorum.
Section
7. Voting
of Shares.
Each
outstanding share entitled to vote shall be entitled to one vote upon each
matter submitted to a vote at a meeting of shareholders.
Section
8. Proxies.
At all
meetings of shareholders, a shareholder may vote by proxy executed in writing
by
the shareholder or by his duly authorized attorney-in-fact. Such proxy
shall be
filed with the Secretary of the Corporation before or at the time of the
meeting. No proxy shall be valid after 11 months from the date of its execution,
unless otherwise provided in the proxy. Proxies shall be in such form as
shall
be required by the Board of Directors and as set forth in the notice of
meeting
and/or proxy or information statement concerning such meeting.
Section
9. Voting
of Shares by Certain Holders.
Shares
standing in the name of another corporation may be voted by agent or proxy
as
the bylaws of such corporation may prescribe or, in the absence of such
provision, as the Board of Directors of such corporation may determine
as
evidenced by a duly certified copy of either the bylaws or corporate resolution.
Neither
treasury shares nor shares held by another corporation, if the majority
of the
shares entitled to vote for the election of directors of such other corporation
is held by the Corporation, shall be voted at any meeting or counted in
determining the total number of outstanding shares at any given time.
Shares
held by an administrator, executor, guardian or conservator may be voted
by such
fiduciary, either in person or by proxy, without a transfer of such shares
into
the name of such fiduciary. Shares standing in the name of a trustee may
be
voted by such trustee, either in person or by proxy, but no trustee shall
be
entitled to vote shares held by a trustee without a transfer of the shares
into
such trust.
Shares
standing in the name of a receiver may be voted by such receiver and shares
held
by or under the control of a receiver may be voted by such receiver, without
the
transfer thereof into the name of such receiver if authority so to do is
contained in an appropriate order of the court by which the receiver was
appointed.
-2-
A
shareholder whose shares are pledged shall be entitled to vote such shares
until
the shares have been transferred on the books of the Corporation into the
name
of the pledgee, and thereafter the pledgee shall be entitled to vote the
shares
so transferred.
Section
10. Action
by Consent of all Shareholders.
Any
action required to be taken, or which may be taken at a meeting of the
shareholders may be taken without a meeting, if a consent in writing, before
or
after the action, a written consent thereto is signed by stockholders holding
at
least a majority of the voting power, except That if a different proportion
of
voting power is required for such an action at a meeting, then that proportion
of written consent is required. In no instance where action is authorized
by
written consent need a meeting of stockholders be called or notice given.
Such
written consent or consents shall be filed with the minutes of the Corporation.
Such action by written consent of all entitled to vote shall have the same
force
and effect as a unanimous vote of such shareholders.
Section
11. Inspectors.
The
Board may, in advance of any meeting of shareholders, appoint one or more
inspectors to act at such meeting or any adjournment thereof. If the inspectors
shall not be so appointed or if any of them shall fail to appear or act,
the
chairman of the meeting may appoint inspectors. Each inspector, before
entering
upon the discharge of his duties, shall take and sign an oath faithfully
to
execute the duties of inspector at such meeting with strict impartiality
and
according to the best of his ability. The inspectors shall determine the
number
of shares outstanding and the voting power of each, the number of shares
represented at the meeting, the existence of a quorum, the validity and
effect
of proxies and shall receive votes, ballots or consents, hear and determine
all
challenges and questions arising in connection with the right to vote,
count and
tabulate all votes, ballots or consents, determine the result and do such
acts
as are proper to conduct the election or vote with fairness to all shareholders.
On request of the chairman of the meeting or any shareholder entitled to
vote
thereat, the inspectors shall make a report in writing of any challenge,
request
or matter determined by them and shall execute a certificate of any fact
found
by them.
ARTICLE
III
BOARD
OF DIRECTORS
Section
1. General
Powers.
The
Board shall have the power to manage the business and affairs of the Corporation
in such manner as it sees fit. In addition to the powers and authorities
expressly conferred upon it, the Board may do all lawful acts which are
not
directed to be done by the shareholders by statute, by the Articles or
by these
Bylaws.
Section
2. Number,
Tenure and Qualifications.
The
number of directors of the Corporation shall not be less than one. Each
director
shall hold office until the next annual meeting of shareholders and until
a
successor director has been elected and qualified, or until the death,
resignation or removal of such director. Directors need not be residents
of the
State of Nevada or shareholders of the Corporation.
Section
3. Regular
Meetings.
A
regular meeting of the Board shall be held, without other notice than this
Bylaw, immediately after and at the same place as the annual meeting of
shareholders. The Board may provide, by resolution, the time and place,
either
within or without the State of Nevada, for the holding of additional regular
meetings, without other notice than such resolution.
-3-
Section
4. Special
Meetings.
Special
meetings of the Board may be called by or at the request of the Chairman
of the
Board, the Chief Executive Officer or any two directors. The person or
persons
authorized to call special meetings of the Board may fix any place, either
within or without the State of Nevada, as the place for holding any special
meeting of the Board called by them.
Section
5. Telephonic
Meetings.
Members
of the Board and committees thereof may participate and be deemed present
at a
meeting by means of conference telephone or similar communications equipment
by
which all persons participating in the meeting can hear each other at the
same
time.
Section
6. Notice.
Notice
of any special meeting of the Board shall be given by telephone, telegraph
or
written notice sent by mail. Notice shall be delivered at least one day
prior to
the meeting (five days before the meeting if the meeting is held outside
the
State of Nevada) if given by telephone or telegram or if delivered personally.
If notice is given by telegram, such notice shall be deemed to be delivered
when
the telegram is delivered by the telegraph company. Written notice may
be
delivered by mail to each director at such director’s business or home address
and, if mailed, shall be delivered at least five days prior to the meeting.
If
mailed, such notice shall be deemed to be delivered when deposited in the
United
States mail so addressed with postage thereon prepaid. Any director may
waive
notice of any meeting. The attendance of a director at a meeting shall
constitute a waiver of notice of such meeting, except where a director
attends a
meeting for the express purpose of objecting to the transaction of any
business
because the meeting is not lawfully called or convened. Neither the business
to
be transacted at, nor the purpose of, any regular or special meeting of
the
Board need be specified in the notice or waiver of notice of such meeting.
Section
7. Quorum.
A
majority of the total membership of the Board shall constitute a quorum
for the
transaction of business at any meeting of the Board, but if a quorum shall
not
be present at any meeting or adjournment thereof, a majority of the directors
present may adjourn the meeting without further notice.
Section
8. Action
by Consent of All Directors.
Any
action required to be taken, or which may be taken at a meeting of the
Board may
be taken without a meeting, if a consent in writing, setting forth the
action so
taken, shall be signed by all of the directors entitled to vote with respect
to
the subject matter thereof. Such written consent or consents shall be filed
with
the minutes of the Corporation. Such action by written consent of all entitled
to vote shall have the same force and effect as a unanimous vote of such
directors at a meeting of directors at which a quorum is present.
Section
9. Manner
of Acting.
The act
of a majority of the directors present at a meeting at which a quorum is
present
shall be an act of the Board.
The
order
of business at any regular or special meeting of the Board shall be:
1.
|
Record
of those present.
|
2.
|
Secretary’s
proof of notice of meeting, if notice is not waived.
|
3.
|
Reading
and disposal of unapproved minutes, if any.
|
4.
|
Reports
of officers, if any.
|
5.
|
Unfinished
business, if any.
|
6.
|
New
business.
|
7.
|
Adjournment.
|
-4-
Section
10. Vacancies.
Any
vacancy occurring in the Board by reason of an increase in the number specified
in these Bylaws, or for any other reason, may be filled by the affirmative
vote
of a majority of the remaining directors, though less than a quorum of
the Board
may remain at the time such meeting considering filling such vacancies
is held.
Section
11. Compensation.
By
resolution of the Board, the directors may be paid their expenses, if any,
for
attendance at each meeting of the Board and may be paid a fixed sum for
attendance at each meeting of the Board and a stated salary as director.
No such
payment shall preclude any director from serving the Corporation in any
other
capacity and receiving compensation therefor or from receiving compensation
for
any extraordinary or unusual services as a director.
Section
12. Presumption
of Assent.
A
director of the Corporation who is present at a meeting of the Board at
which
action on any corporate matter is taken shall be presumed to have assented
to
the action taken unless the dissent of such director shall be entered in
the
minutes of the meeting, filed in writing with the person acting as the
secretary
of the meeting before the adjournment thereof or forwarded by registered
mail to
the Secretary of the Corporation immediately after the meeting. Such right
to
dissent shall not apply to a director who voted in favor of such action.
Section
13. Executive
or Other Committees.
The
Board, by resolution adopted by a majority of the entire Board, may designate
among its members an executive committee and one or more other committees,
each
of which, to the extent provided in the resolution, shall have all of the
authority of the Board, but no such committee shall have the authority
of the
Board in reference to amending the Articles, adopting a plan of merger
or
consolidation, recommending to the shareholders the sale, lease, exchange
or
other disposition of all or substantially all of the property and assets
of the
Corporation otherwise than in the usual and regular course of its business,
recommending to the shareholders a voluntary dissolution of the Corporation
or a
revocation thereof, or amending the Bylaws. The designation of such committees
and the delegation thereto of authority shall not operate to relieve the
Board,
or any member thereof, of any responsibility imposed by law.
Any
action required to be taken, or which may be taken at a meeting of a committee
designated in accordance with this Section of the Bylaws, may be taken
without a
meeting, if a consent in writing setting forth the action so taken shall
be
signed by all those entitled to vote with respect to the subject matter
thereof.
Such written consent or consents shall be filed with the minutes of the
Corporation. Such action by written consent of all entitled to vote shall
have
the same force and effect as a unanimous vote of such persons.
-5-
Section
14. Resignation
of Officers or Directors.
Any
director or officer may resign at any time by submitting a resignation
in
writing. Such resignation takes effect from the time of its receipt by
the
Corporation unless a date or time is fixed in the resignation, in which
case it
will take effect from that time. Acceptance of the resignation shall not
be
required to make it effective.
Section
15. Notice
Requirements for Director Nominations.
Any
nomination for election to the Board of Directors by the stockholders otherwise
than pursuant to Board resolution must be submitted to the Corporation’s
secretary no later than 25 days and no more than 60 days prior to the meeting
of
stockholders at which such nominations are to be submitted. In the event
notice
of the meeting at which such nomination is desired to be submitted is not
mailed
or otherwise sent to the stockholders of the Corporation at least 30 days
prior
to the meeting, the Corporation must receive the notice of intent to nominate
no
later than seven days after notice of the meeting is mailed or sent to
the
stockholders by the Corporation. Notices to the Corporation’s Secretary of
intent to nominate a candidate for election as a director must give the
name,
age, business address and principal occupation of such nominee and the
number of
shares of stock of the Corporation held by such nominee within seven days
after
filing of the notice, a signed and completed questionnaire relating to
the
proposed nominee (which questionnaire will be supplied by the Corporation
to the
person submitting the notice) must be filed with the Secretary of the
Corporation. Unless this notice procedure is followed, the chairman of
a
stockholders’ meeting may declare the nomination defective and it may be
disregarded.
ARTICLE
IV
OFFICERS
Section
1. Number.
The
officers of the Corporation shall be a president, a secretary and a treasurer,
all of whom shall be executive officers and each of whom shall be elected
by the
Board, and such other officers as the Board may designate from time to
time. A
Chairman of the Board, Vice Chairman of the Board and one or more Vice
Presidents shall be executive officers if the Board so determines by resolution.
Such other officers and assistant officers, as may be deemed necessary,
shall be
designated administrative assistant officers and may be appointed and removed
as
the Chief Executive Officer decides. Any two or more offices may be held
by the
same person, except the offices of President and Secretary.
Section
2. Election
and Term of Office.
The
executive officers of the Corporation, to be elected by the Board, shall
be
elected annually by the Board at its first meeting held after each annual
meeting of the shareholders or at a convenient time soon thereafter. Each
executive officer shall hold office until the resignation of such officer
or
until a successor shall be duly elected and qualified, until the death
of such
executive officer, or until removal of such officer in the manner herein
provided.
Section
3. Removal.
Any
officer or agent elected or appointed by the Board may be removed by the
Board
whenever, in its judgment, the best interests of the Corporation would
be served
thereby, but such removal shall be without prejudice to the contract rights,
if
any, of the person so removed.
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Section
4. Vacancies.
A
vacancy in any executive office because of death, resignation, removal,
disqualification or otherwise may be filled by the Board for the unexpired
portion of the term.
Section
5. The
Chairman of the Board.
If a
Chairman of the Board (the “Chairman”) shall be elected by the Board, the
Chairman shall preside at all meetings of the shareholders and of the Board.
The
Chairman may sign, with the officers authorized by the Chief Executive
Officer
or the Board, certificates for the shares of the Corporation and shall
perform
such other duties as from time to time are assigned by the Chief Executive
Officer or the Board. The Chairman of the Board may be elected as the Chief
Executive Officer, in which case the Chairman shall perform the duties
hereinafter set forth in Article IV, Section 7, of these Bylaws.
Section
6. The
President.
The
President may sign, with the officers authorized by the Chief Executive
Officer
or the Board, certificates for shares of the Corporation and shall perform
such
other duties as from time to time are assigned by the Chief Executive Officer
or
the Board. The President may be elected as the Chief Executive Officer
of the
Corporation, in which case, the President shall perform the duties hereinafter
set forth in Article IV, Section 7, of these Bylaws.
Section
7. The
Chief Executive Officer.
If no
Chairman shall be elected by the Board, the President shall be the Chief
Executive Officer of the Corporation. If a Chairman is elected by the Board,
the
Board shall designate, as between the Chairman and the President, who shall
be
the Chief Executive Officer. The Chief Executive Officer shall be, subject
to
the control of the Board, in general charge of the affairs of the Corporation.
The Chief Executive Officer may sign, with the other officers of the Corporation
authorized by the Board, deeds, mortgages, bonds, contracts or other instruments
whose execution the Board has authorized, except in cases where the signing
and
execution thereof shall be expressly delegated by the Board or these Bylaws
to
some other officer or agent of the Corporation, or shall be required by
law to
be otherwise signed or executed.
Section
8. The
Vice Chairman of the Board.
If a
Chairman shall be elected by the Board, the Board bay also elect a Vice
Chairman
of the Board (the “Vice Chairman”). In the absence of the Chairman or in the
event of the death or inability or refusal to act of the Chairman, the
Vice
Chairman shall perform the duties of the Chairman and when so acting shall
have
all of the powers of and be subject to all of the restrictions upon the
Chairman. The Vice Chairman may sign, with the other officers authorized
by the
Chief Executive Officer or the Board, certificates for shares of the Corporation
and shall perform such other duties as from time to time may be assigned
by the
Chief Executive Officer or the Board.
Section
9. The
Vice President.
In the
absence of the President or in the event of the death or inability or refusal
to
act of the President, the Vice President shall perform the duties of the
President, and when so acting shall have all the powers of and be subject
to all
the restrictions upon the President. In the event there is more than one
Vice
President, the Vice Presidents in the order designated at the time of their
election, or in the absence of any designation, then in the order of their
election, shall perform the duties of the President and, when so acting,
shall
have all the powers of and shall be subject to all the restrictions upon
the
President. Any Vice President may sign, with the other officers authorized
by
the Chief Executive Officer or the Board, certificates for shares of the
Corporation and shall perform such other duties as from time to time may
be
assigned by the Chief Executive Officer or the Board.
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Section
10. The
Secretary.
Unless
the Board otherwise directs, the Secretary shall keep the minutes of the
shareholders’ and directors’ meetings in one or more books provided for that
purpose. The Secretary shall also see that all notices are duly given in
accordance with the law and the provisions of the Bylaws; be custodian
of the
corporate records and the seal of the Corporation; affix the seal or direct
its
affixation to all documents, the execution of which on behalf of the Corporation
is duly authorized; keep a list of the address of each shareholder; sign,
with
the other officers authorized by the Chief Executive Officer or the Board,
certificates for shares of the Corporation; have charge of the stock transfer
books of the Corporation and perform all duties incident to the office
of
Secretary and such other duties as may be assigned by the Chief Executive
Officer or by the Board.
Section
10. The
Treasurer.
If
required by the Board, the Treasurer shall give a bond for the faithful
discharge of his duties in such sum and with such surety or sureties as
the
Board shall determine. He shall have charge and custody of and be responsible
for all funds and securities of the Corporation, receive and give receipts
for
monies due and payable to the Corporation from any source whatsoever and
deposit
all such monies in the name of the Corporation in such banks, trust companies
or
other depositories as shall be selected in accordance with the provisions
of the
Bylaws. The Treasurer may sign, with the other officers authorized by the
Chief
Executive Officer or the Board, certificates for shares of the Corporation
and
shall perform all duties incident to the office of Treasurer and such other
duties as from time to time may be assigned by the Chief Executive Officer
or
the Board.
Section
11. Assistant
Officers.
The
Chief Executive Officer may appoint such other officers and agents as may
be
necessary or desirable for the business of the Corporation. Such other
officers
shall include one or more assistant secretaries and treasurers who shall
have
the power and authority to act in place of the officer for whom they are
elected
or appointed as an assistant in the event of the officer’s inability or
unavailability to act in his official capacity. The assistant secretary
or
secretaries or assistant treasurer or treasurers may sign, with the other
officers authorized by the Chief Executive Officer or the Board, certificates
for shares of the Corporation. The assistant treasurer or treasurers shall,
if
required by the Board, give bonds for the faithful discharge of their duties
in
such sums and with such sureties as the Board shall determine. The assistant
secretaries and assistant treasurers, in general, shall perform such duties
as
shall be assigned to them by the Secretary or the Treasurer, respectively,
or by
the Chief Executive Officer or the Board.
Section
12. Salaries.
The
salaries of the executive officers shall be fixed by the Board and no officer
shall be prevented from receiving such salary by reason of the fact that
such
officer is also a director of the Corporation. The salaries of the
administrative assistant officers shall be fixed by the Chief Executive
Officer.
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ARTICLE
V
CONTRACTS,
LOANS, CHECKS AND DEPOSITS
Section
1. Contracts.
The
Board may authorize any officer or officers, agent or agents, to enter
into any
contract on behalf of the Corporation and such authority may be general
or
confined to specific instances.
Section
2. Checks,
Drafts, Etc.
All
checks, drafts or other orders for the payment of money, notes or other
evidence
of indebtedness, issued in the name of the Corporation, shall be signed
by such
officer or officers, agent or agents, of the Corporation and in such manner
as
shall from time to time be determined by resolution of the Board.
Section
3. Deposits.
All
funds of the Corporation not otherwise employed shall be deposited from
time to
time to the credit of the Corporation in such banks, trust companies or
other
depositories as the Board may select.
ARTICLE
VI
CERTIFICATES
FOR SECURITIES AND THEIR TRANSFER
Section
1. Certificates
for Securities.
Certificates representing securities of the Corporation (the “Securities”) shall
be in such form as shall be determined by the Board. To be effective, such
certificates for Securities (the “Certificates”) shall be signed by (i) the
Chairman or Vice Chairman or by the President or a Vice President; and
(ii) the
Secretary or an assistant Secretary or by the Treasurer or an assistant
treasurer of the Corporation. Any of all of the signatures may be facsimiles
if
the Certificate is either countersigned by the transfer agent, or countersigned
by the facsimile signature of the transfer agent and registered by the
written
signature of an officer of any company designated by the Board as registrar
of
transfers so long as that officer is not an employee of the Corporation.
A
Certificate signed or impressed with the facsimile signature of an officer,
who
ceases by death, resignation or otherwise to be an officer of the Corporation
before the Certificate is delivered by the Corporation, is valid though
signed
by a duly elected, qualified and authorized officer, provided that such
Certificate is countersigned by the signature of the transfer agent or
facsimile
signature of the transfer agent of the Corporation and registered as aforesaid.
All
Certificates shall be consecutively numbered or otherwise identified.
Certificates shall state the jurisdiction in which the Corporation is organized,
the name of the person to whom the Securities are issued, the designation
of the
series, if any, and the par value of each share represented by the Certificate,
or a statement that the shares are without par value. The name and address
of
the person to whom the Securities represented hereby are issued, the number
of
Securities, and date of issue, shall be entered on the Security transfer
books
of the Corporation. All Certificates surrendered to the Corporation for
transfer
shall be cancelled and no new Certificate shall be issued until the former
Certificate for a like number of shares shall have been surrendered and
cancelled, except that, in case of a lost, destroyed or mutilated Certificate,
a
new one may be issued therefor upon such terms and indemnity to the Corporation
as the Board may prescribe.
Section
2. Transfer
of Securities.
Transfers of Securities shall be made only on the security transfer books
of the
Corporation by the holder of record thereof, by the legal representative
of the
holder who shall furnish proper evidence of authority to transfer, or by
an
attorney authorized by a power of attorney which was duly executed and
filed
with the Secretary of the Corporation and a surrender for cancellation
of the
certificate for such shares. The person in whose name Securities stand
on the
books of the Corporation shall be deemed by the Corporation to be the owner
thereof for all purposes.
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ARTICLE
VII
FISCAL
YEAR
The
fiscal year of the Corporation shall be determined by resolution of the
Board.
ARTICLE
VIII
DIVIDENDS
The
Board
may declare, and the Corporation may pay in cash, stock or other property,
dividends on its outstanding shares in the manner and upon the terms and
conditions provided by law and its Articles.
ARTICLE
IX
SEAL
The
Board
may provide a corporate seal, circular in form, having inscribed thereon
the
corporate name, the state of incorporation and the word “Seal.” The seal on
securities, any corporate obligation to pay money or any other document
may be
facsimile, or engraved, embossed or printed.
ARTICLE
X
WAIVER
OF NOTICE
Whenever
any notice is required to be given to any shareholder or director of the
Corporation under the provisions of these Bylaws or under the provisions
of the
Articles or under the provisions of the applicable laws of the State of
Nevada,
a waiver thereof in writing, signed by the person or persons entitled to
such
notice, whether before, at or after the time stated therein, shall be deemed
equivalent to the giving of such notice.
ARTICLE
XI
INDEMNIFICATION
The
Corporation shall have the power to indemnify any director, officer, employee
or
agent of the Corporation or any person serving at the request of the Corporation
as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise to the fullest extent permitted
by the
laws of the State of Nevada.
-10-
ARTICLE
XII
AMENDMENTS
These
Bylaws may be altered, amended, repealed or replaced by new Bylaws by the
Board
at any regular or special meeting of the Board of Directors, or by consent
of
the Directors, and ratified by the shareholders.
ARTICLE
XIII
UNIFORMITY
OF INTERPRETATION AND SEVERABILITY
These
Bylaws shall be so interpreted and construed as to conform to the Articles
and
the statutes of the State of Nevada or of any other state in which conformity
may become necessary by reason of the qualification of the Corporation
to do
business in such foreign state, and where conflict between these Bylaws
and the
Articles or a statute has arisen or shall arise, the Bylaws shall be considered
to be modified to the extent, but only to the extent, conformity shall
require.
If any Bylaw provision or its application shall be deemed invalid by reason
of
the said nonconformity, the remainder of the Bylaws shall remain operable
in
that the provisions set forth in the Bylaws are severable.
Certified
to be the Bylaws of
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FRESH
IDEAS MEDIA, INC.
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By:
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A.
Xxxxx Xxx, Secretary
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Date:
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