SHARE EXCHANGE AGREEMENT
EXHIBIT 10.1
THIS AGREEMENT is dated for reference the 28th day of January, 2005.
AMONG:
Those Persons Named in Schedule “A” hereto (the “Vendors”) |
AND:
XXXXXXXXX INTERNATIONAL CORPORATION (the “Purchaser”) |
WHEREAS:
(A) The Vendors are collectively the registered and beneficial owners of 100% of the outstanding shares (the “Shares”) of Syngas Energy Corp., each owning that number of shares set out opposite such Vendor’s name in Schedule “A” hereto;
(B) The Vendors have agreed to sell the Shares to the Purchaser and the Purchaser has agreed to purchase the Shares as provided herein;
THEREFORE for and in consideration of the premises, covenants and agreements herein set forth, the parties hereto agree as follows:
1. DEFINITIONS AND INTERPRETATION
1.1 In this Agreement:
(a) “Closing Date” means
the date on which the transactions contemplated in the Share Exchange
Agreement are complete currently contemplated to be within seven days
of the effective date of the consolidation of the shares of the Purchase
on a 25 for 1 basis as approved by the shareholders of the Purchaser
on December 31, 2004; |
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(b) “Company” means Syngas
Energy Corp.; |
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(c) “Lien” means any
mortgage, debenture, charge, hypothecation, pledge, lien, or other
security interest or encumbrance of whatever kind or nature, regardless
of form and |
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| whether consensual or arising by laws,
statutory or otherwise that secures the payment of any indebtedness
or the performance of any obligation or creates in favour of or grants
to any person any proprietary right; |
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| (d) “Purchase Shares”
means a total of 30,000,000 post-consolidation common shares in
the capital of the Purchaser which are to be issued as consideration for
the Shares, said shares to be issued to the Vendors pro rata in
accordance with their interest in the Shares, in the amounts set
out opposite their names in Schedule “A” hereto; |
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| (e) “Purchaser” means
Xxxxxxxxx International Corporation. |
2. WARRANTIES AND REPRESENTATIONS
2.1 Each of the Vendors severally warrants and represents to the Purchaser that:
| (a) such Vendor is the registered
and beneficial owner of the Shares set out opposite his name in
Schedule “A” hereto, free and clear of all Liens; |
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| (b) if the Vendor is a corporation,
the Vendor is duly organized, validly existing, and in good standing
under the laws of the jurisdiction of its incorporation; |
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| (c) the Vendor has full power and
authority (including, if the Vendor is a corporation, full corporate
power and authority) to execute and deliver this Agreement and to perform
his, her or its obligations hereunder. This Agreement constitutes the
valid and legally binding obligation of the Vendor. The Vendor is
not required to obtain any authorization, consent or approval of
any person, including any court or governmental agency, in order
to complete the transactions contemplated by this Agreement; |
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| (d) the Vendor is the registered
owner of the number of Shares set out opposite his name in Schedule
“A” hereto, free and clear of security interests, liens, charges,
encumbrances, spousal or community property rights, options, warrants,
purchase rights, contracts, commitments, equities, claims, demands
or any other restrictions on transfer (other than any restrictions
under applicable laws relating to securities). The Vendor is not
a party to any option, warrant, purchase right, or other contract or commitment
that could require the Vendor to sell, transfer, or otherwise dispose
of any Shares to any other person. The Vendor is not a party to
any voting trust, proxy, or other agreement or understanding with
respect to the voting of the Shares; |
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| (e) the Shares as set out opposite
such Vendor’s name in Schedule “A” hereto are
validly issued and outstanding as fully paid and non-assessable shares
in the capital of the Company; and |
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| (f) the Vendor has been advised
that there may be tax consequences to the Vendor arising from the
transactions contemplated hereby and the Vendor acknowledges that it
has been advised to seek its own counsel in this regard. |
2.2 The Vendors jointly and severally warrant and represent to the Purchaser that:
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| (a) the Shares represent
all of the issued and outstanding shares of the Company; |
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| (b) no person has any agreement,
right, option or privilege, consensual or arising by law, present
or future, contingent or absolute, or capable of becoming an agreement,
right or option: |
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| (i) to require the Company to issue any further or other shares in its capital or any other security convertible or exchangeable into shares in its capital or to convert or exchange any securities into or for shares in the capital of the Company; | ||
| (ii) for the issue or allotment of any of the authorized but unissued shares in the capital of the Company; | ||
| (iii) to require the Company to purchase, redeem or otherwise acquire any of the issued and outstanding shares in the capital of the Company; or | ||
| (iv) to purchase or otherwise acquire any shares in the capital of the Company; |
| (c) the Company is duly incorporated,
validly existing and in good standing under its jurisdiction of
incorporation; |
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| (d) the Company now is and has
since its incorporation been a “Canadian controlled private
corporation” within the meaning of the Income Tax Act (Canada);
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| (e) all alterations to the constating
documents of the Company since its incorporation, have been duly
approved by the shareholders of the Company and duly filed as required
other than as disclosed to the Purchaser; |
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| (f) the Company has the power,
authority and capacity to carry on its business presently conducted
by it; |
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| (g) the Company has no liabilities;
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| (h) the Company holds all licences
and permits required for the conduct in the ordinary course of the
business currently conducted by it and for the uses to which its
assets have been or may be put and all such licences and permits are in
good standing and the conduct and uses of the same by it are in
compliance with all laws, zoning and other bylaws, building and
other restrictions, rules, regulations and ordinances applicable to it,
and neither the execution and delivery of this Agreement nor the completion
of the purchase and sale hereby contemplated will give any person
the right to terminate or cancel the said licences or permits or
affect such compliance; |
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| (i) the making of this Agreement
and the completion of the transactions contemplated hereby and the
performance of and compliance with the terms hereof does not and
will not: |
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| (i) conflict with or result in
a breach of or violate any of the terms, conditions, or provisions
of the constating documents of the Company; |
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| (ii) conflict with or result in
a breach of or violate any of the terms, conditions or provisions
of any law, judgment, order, injunction, decree, regulation or ruling
of any court or governmental authority, domestic or foreign, to which
the Company or any of the Vendors are subject or constitute or result
in a default under any agreement, contract or commitment to which
the Company or any of the Vendors are a party; |
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| (iii) give to any person any remedy,
cause of action, right of termination, cancellation or acceleration
in or with respect to any agreement, contract, or commitment to
which the Company is a party; |
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| (iv) give to any government or
governmental authority, including any governmental department, commission,
bureau, board, or administrative agency any right of termination,
cancellation, or suspension of, or constitute a breach of or result
in a default under any permit, license, control, or authority issued to
the Company and which is necessary or desirable in connection with
the conduct and operation of its business and the ownership, leasing
or use of its assets; |
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| (v) there is no basis for and there
are no actions, suits, judgements, investigations or proceedings
outstanding or pending or threatened against or affecting the Company
at law or in equity or before or by any court or federal, provincial,
state, municipal or other governmental authority, department, commission,
board, tribunal, bureau or agency and neither the Company is a party
or threatened with any litigation. |
2.3 The Purchaser warrants and represents to the Vendors and the Company that:
| (a) the Purchaser is a corporation
duly incorporated, validly existing and in good standing under the
laws of its jurisdiction of incorporation and has the power, authority
and capacity to incur the obligations of the Purchaser created by this
Agreement and to carry out its terms; and |
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| (b) the execution and delivery
of this Agreement and the completion of the transactions contemplated
hereby has been duly and validly authorized by all necessary corporate
action on the part of the Purchaser, and this Agreement constitutes a
legal, valid and binding obligation of the Purchaser in accordance
with its terms except as limited by laws of general application
affecting the rights of creditors. |
3. PURCHASE AND SALE
3.1 On the basis of the warranties and representations set forth in §2 of this Agreement and subject to the terms and conditions of this Agreement, the Purchaser agrees to buy from the Vendors and the Vendors agree to sell to the Purchaser, the Shares on the Closing Date and the Purchaser agrees to issue the Purchase Shares as consideration therefore provided that it is acknowledged and agreed that certain of the Purchase Shares, as denoted in Schedule
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“A” hereto, will be issued in escrow to be released upon the Company having completed in first prototype unit and the Purchaser having raised a minimum of US$1,000,000 by way of equity private placements subsequent to the Closing Date.
4. CONDITIONS
4.1 The obligations of the Purchaser to carry out the terms of this Agreement and to complete the purchase referred to in §3.1 hereof is subject to the following conditions:
| (a) that on the Closing Date the
warranties and representations of the Vendors as set forth in §2.1
of this Agreement are true in every particular as if such warranties and
representations had been made by the Vendors on the Closing Date;
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| (b) that on the Closing Date, the
Vendors will have delivered to the Purchaser, the following documents:
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| (i) share certificates representing the Shares, duly endorsed for transfer; | ||
| (ii) a directors resolution of the directors of the Company approving the transfer of the Shares; | ||
| (iii) a share certificate in the name of the Purchaser representing the Shares as transferred hereby; | ||
| (iv) such other documentation as the Purchaser may reasonably request. |
4.2 The conditions set forth in §5.1 of this Agreement are for the exclusive benefit of the Purchaser and may be waived by the Purchaser in writing in whole or in part on or before the Closing Date, but save as so waived, the completion of the purchase referred to in §3.1 hereof by the Purchaser will not prejudice or affect in any way the rights of the Purchaser in respect of the warranties and representations of the Vendors as set forth in §2.1 of this Agreement and the warranties and representations of the Vendors set forth in §2.1 of this Agreement will survive the Closing Date for a 24 month period after the Closing Date.
4.3 The obligation of the Vendors to carry out the terms of this Agreement and to complete the purchase referred to in §3.1 hereof is subject to the following conditions:
| (a) that on the Closing Date, the warranties and representations of the Purchaser as set forth in §2.3 of this Agreement are true in every particular as if they had been made by the Purchaser on the Closing Date; |
4.4 on the Closing Date, the Purchaser will have delivered to each of the Vendors certificates representing the Purchase Shares issuable to such Vendor as provided for in Schedule “A” hereto, it being acknowledged that such certificates will bear a legend evidencing that the Purchaser’s Shares represented by such certificate are “restricted securities” as defined in Rule 144 of the United States Securities Act of 1933.
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5. SURVIVAL OF OBLIGATIONS
5.1 Except as otherwise specifically provided herein, the obligations of the parties arising herefrom will not merge on the Closing Date.
6. ENUREMENT
6.1 This Agreement will enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators and permitted assigns.
7. GENERAL PROVISIONS
7.1 Time is of the essence of this Agreement.
7.2 The parties covenant and agree to execute and deliver all such further documents and instruments and to do all acts and things as may be necessary or desirable to carry out the full intent and meaning of this Agreement and to ensure to the Purchaser delivery of the Shares and to effect the payment of the Purchase Price to each of the Vendors.
7.3 The proper law of this Agreement is the law of the Province of British Columbia.
7.4 This Agreement may be executed in several counterparts and by facsimile transmission, each of which will be deemed to be an original and all of which will together constitute one and the same instrument.
IN WITNESS WHEREOF the parties have executed this Agreement on the ____ day of _______________ , 2005.
| XXXXXXXXX INTERNATIONAL | |
| CORPORATION | |
| /s/ Xxxxx Xxxxxx | |
| Per: | _______________________________ |
| Authorized Signatory |
SCHEDULE “A”
| Name of Vendor | Number of Vendor Shares Held |
Number of Purchaser’s Shares to be Received |
Signature of Xxxxxx |
| 000000 Xxxxxxx | 10,000,000 | 10,000,000* | /s/ Xxxx Xxxxxxxxx |
| Draycott Investments Ltd. |
10,000,000 | 10,000,000 | /s/ Xxxxxxxx Xxxxxx |
| Xxxxxxx Xxxxxx | 10,000,000 | 10,000,000 | /s/ Xxxxxxx Xxxxxx |
| TOTALS | 30,000,000 | 30,000,000 |
