STOCK PURCHASE AGREEMENT AND SHARE EXCHANGE by and among JPC CAPITAL PARTNERS, INC. a Delaware Corporation; and COMPONUS INC. a Nevada Corporation; March 20, 2008
Exhibit
2.1
STOCK PURCHASE AGREEMENT AND SHARE EXCHANGE
by and among
a Delaware Corporation;
and
COMPONUS INC.
a Nevada Corporation;
March 20, 2008
STOCK PURCHASE AGREEMENT AND SHARE EXCHANGE
THIS STOCK PURCHASE AGREEMENT
AND SHARE EXCHANGE, made and entered into as of this
20th day
of March, 2008 (the “Agreement”), by and among JPC CAPITAL PARTNERS, INC., a
Delaware Corporation with its principal place of business located at 0000 Xxxxxxx Xxxxx Xxxx, Xxxxx
000, Xxxxxxxxxx, XX 00000 (“JPCI”); the undersigned JPCI Shareholders (the “JPCI Shareholder”) and
COMPONUS INC., a Nevada Corporation, with its principal place of business located at 000 Xxxxxx
Xxx., Xxx. 000, Xxx Xxxx, XX 00000 (“Componus”).
WHEREAS, this Agreement provides for the acquisition of Componus whereby Componus shall become
a wholly owned subsidiary of JPCI and in connection therewith, JPCI shall issue 89,000,000 total of
shares of JPCI common stock, which will represent, and equate to,
87.25% of the issued and
outstanding JPCI common stock to Componus or its designated entities after the transaction is
closed.
WHEREAS, the boards of directors of JPCI and Componus have determined, subject to the terms
and conditions set forth in this Agreement, that the transaction contemplated hereby is desirable
and in the best interests of their stockholders, respectively. This Agreement is being entered
into for the purpose of setting forth the terms and conditions of the proposed acquisition.
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,
it is hereby agreed as follows:
ARTICLE
I
REPRESENTATIONS, COVENANTS AND WARRANTIES OF JPCI SHAREHOLDERS
REPRESENTATIONS, COVENANTS AND WARRANTIES OF JPCI SHAREHOLDERS
As an inducement to and to obtain the reliance of Componus, JPCI represents and warrants as
follows:
Section 1.1 Organization. JPCI is a corporation duly organized, validly existing, and in good
standing under the laws of Delaware and has the corporate power and is duly authorized, qualified,
franchised and licensed under all applicable laws, regulations, ordinances and orders of public
authorities to own all of its properties and assets and to carry on its business in all material
respects as it is now being conducted, including qualification to do business as a foreign
corporation in the jurisdiction in which the character and location of the assets owned by it or
the nature of the business transacted by it requires qualification. Included in the Schedules
attached hereto (hereinafter defined) are complete and correct copies of the articles of
incorporation, by-laws and amendments thereto as in effect on the date hereof. The execution and
delivery of this Agreement does not and the consummation of the transactions contemplated by this
Agreement in accordance with the terms hereof will not violate any provision of JPCI’s articles of
incorporation or by-laws. JPCI has full power, authority and legal right and has taken
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all action required by law, its articles of incorporation, its by-laws or otherwise to authorize
the execution and delivery of this Agreement.
Section 1.2 Capitalization. The authorized capitalization of JPCI consists of 95,000,000
shares of common stock, $0.001 par value per share and is not authorized to issue any shares of
preferred stock. As of the date hereof, JPCI has 24,796,546 common shares issued and outstanding.
All issued and outstanding shares are legally issued, fully paid and non-assessable and are not
issued in violation of the preemptive or other rights of any person. There are no securities,
warrants or options authorized or issued.
Section 1.3 Subsidiaries. JPCI has no subsidiaries.
Section 1.4 Tax Matters: Books and Records.
(a) | The books and records, financial and others, of JPCI are in all material respects complete and correct and have been maintained in accordance with good business accounting practices; and | ||
(b) | JPCI has no liabilities with respect to the payment of any country, federal, state, county, or local taxes (including any deficiencies, interest or penalties); and | ||
(c) | JPCI shall pay all outstanding liabilities at or prior to the Closing. |
Section 1.5 Litigation and Proceedings. There are no actions, suits, proceedings or
investigations pending or threatened by or against or affecting JPCI 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 that would have a material adverse affect on the business,
operations, financial condition or income of JPCI. JPCI is not in default with respect to any
judgment, order, writ, 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 1.6 Material Contract Defaults. JPCI is not in default in any material respect under
the terms of any outstanding contract, agreement, lease or other commitment which is material to
the business, operations, properties, assets or condition of JPCI, and there is no event of default
in any material respect under any such contract, agreement, lease or other commitment in respect of
which JPCI has not taken adequate steps to prevent such a default from occurring.
Section 1.7 Information. All periodic reports filed by JPCI with the Securities and
Exchange Commission pursuant to the Securities Act of 1934, as amended, during its last two fiscal
years are true and correct in all material respects and do 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. There has been no material adverse
change in the business of JPCI since its last period filing. The information concerning JPCI as
set forth in this Agreement and in the attached 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.
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Section 1.8 Title and Related Matters. JPCI does not have substantial assets, however,
if any, JPCI has good and marketable title to and is the sole and exclusive owner of all of its
properties, inventory, interest in properties and assets, real and personal (collectively, the
“Assets”) free and clear of all liens, pledges, charges or encumbrances. JPCI owns free and clear
of any liens, claims, encumbrances, royalty interests or other restrictions or limitations of any
nature whatsoever and all procedures, techniques, marketing plans, business plans, methods of
management or other information utilized in connection with JPCI’s business. No third party has
any right to, and JPCI has not received any notice of infringement of or conflict with asserted
rights of other with respect to any product, technology, data, trade secrets, know-how, proprietary
techniques, trademarks, service marks, trade names or copyrights which, singly on in the aggregate,
if the subject of an unfavorable decision ruling or finding, would have a materially adverse affect
on the business, operations, financial conditions or income of JPCI or any material portion of its
properties, assets or rights.
Section 1.9 Contracts. On the closing date:
(a) | There are no material contracts, agreements, franchises, license agreements, or other commitments to which JPCI is a party or by which it or any of its properties are bound; | ||
(b) | JPCI is not a party to any contract, agreement, commitment or instrument or subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree or award materially and adversely affects, or in the future may (as far as JPCI can now foresee) materially and adversely affect, the business, operations, properties, assets or conditions of JPCI; and | ||
(c) | JPCI is not a party to any material 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, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended; (iii) agreement, contract or indenture relating to the borrowing of money; (iv) guaranty of any obligation for the borrowing of money or otherwise, excluding endorsements made for collection and other guaranties, of obligations, which, in the aggregate exceeds $1,000; (v) consulting or other contract with an unexpired term of more than one year or providing for payments in excess of $10,000 in the aggregate; (vi) collective bargaining agreement; and (vii) contract, agreement or other commitment involving payments by it for more than $10,000 in the aggregate. |
Section 1.10 Compliance With Laws and Regulations. To the best of JPCI’s knowledge and
belief, JPCI 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 JPCI
or would not result in JPCI incurring material liability.
Section 1.11 Approval of Agreement. The directors of JPCI have authorized the execution and
delivery of this Agreement and have approved the transactions contemplated. A copy of the
Director’s Resolution authorizing entry into this Agreement is attached as Schedule 1.11.
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Section 1.12 Material Transactions or Affiliations. Other than the agreement with respect to
staffing and administration with X.X. Xxxxx Asset Management, LLC (the “Administration Agreement”)
between JPCI and an affiliate, X.X. Xxxxx Asset Management, there are no material contracts or
agreements of arrangements between JPCI and any person, who was at the time of such contract,
agreement or arrangement, directly or indirectly, an officer, director or person owning of record,
or known to beneficially own ten percent (10%) or more of the issued and outstanding Common Shares
of JPCI and which is to be performed in whole or in part after the date hereof. JPCI has no
commitment, whether written or oral, to lend any funds, to borrow any money from or enter into
material transactions with any such affiliated person.
Section 1.13 No Conflict With Other Instruments. The execution of this Agreement and the
consummation of the transactions contemplated by this Agreement will not result in the breach of
any term or provision of, or constitute an event of default under, any material indenture,
mortgage, deed of trust or other material contract, agreement or instrument to which JPCI is a
party or to which any of its properties or operations are subject.
Section 1.14 Governmental Authorizations. JPCI has all licenses, franchises, permits or other
governmental authorizations legally required to enable it to conduct its business in all material
respects as conducted on the date hereof. Except for compliance with federal and state securities
and corporation laws, as hereinafter provided, no authorization, approval, consent or order of, or
registration, declaration or filing with, any court or other governmental body is required in
connection with the execution and delivery by JPCI of this Agreement and the consummation of the
transactions contemplated hereby.
ARTICLE II
REPRESENTATIONS, COVENANTS AND WARRANTIES OF COMPONUS
REPRESENTATIONS, COVENANTS AND WARRANTIES OF COMPONUS
As an inducement to, and to obtain the reliance of JPCI and the JPCI Shareholder, Componus
represents and warrants as follows:
Section 2.1 Organization. Componus is a corporation duly organized, validly existing and in
good standing under the laws of Nevada and has the corporate power and is duly authorized,
qualified, franchised and licensed under all applicable laws, regulations, ordinances and orders of
public authorities to own all of its properties and assets and to carry on its business in all
material respects as it is now being conducted, including qualification to do business as a foreign
entity in the country or states in which the character and location of the assets owned by it or
the nature of the business transacted by it requires qualification. Included in the attached
Schedules (as hereinafter defined) are complete and correct copies of the articles of
incorporation, by-laws and amendments thereto as in effect on the date hereof. The execution and
delivery of this Agreement does not and the consummation of the transactions contemplated by this
Agreement in accordance with the terms hereof will not, violate any provision of Componus’
certificate of incorporation or by-laws. Componus has full power, authority and legal right and
has taken all action required by law, its articles of incorporation, by-laws or otherwise to
authorize the execution and delivery of this Agreement.
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Section 2.2 Capitalization. Componus’ authorized capitalization consists of a total of
500,000,000 shares, par value $0.001; 89,000,000 shares of common stock of Componus are issued and
outstanding held by the individuals and entities listed on Schedule 2.2.
All issued and outstanding common shares have been legally issued, fully paid, are
non-assessable and not issued in violation of the preemptive rights of any other person. Componus
has no other securities, warrants or options authorized or issued.
Section 2.3 Subsidiaries. Componus has the following subsidiary: Asia Forging Supply Co., Ltd.
(“AFS”) – a company incorporated in the Taiwan.
Section 2.4 Tax Matters, Books & Records.
(a) | Componus’ books and records, financial and others are in all material respects complete and correct and have been maintained in accordance with US GAAP; | ||
(b) | Componus has no liabilities with respect to the payment of any country, federal, state, county, local or other taxes (including any deficiencies, interest or penalties); and | ||
(c) | Componus shall remain responsible for all debts incurred prior to the closing. |
Section 2.5 Information. The information concerning Componus as set forth in this Agreement
and in the attached Schedules is complete and accurate in all material respects and does not
contain any untrue statement of a material fact or omit a material fact required to make the
statements made, in light of the circumstances under which they were made, not misleading.
Section 2.6 Title and Related Matters. Componus has good and marketable title to and is the
sole and exclusive owner of all of its properties, inventory, interests in properties and assets,
real and personal (collectively, the “Assets”) free and clear of all liens, pledges, charges or
encumbrances. Except as set forth in the attached Schedules, Componus owns free and clear of any
liens, claims, encumbrances, royalty interests or other restrictions or limitations of any nature
whatsoever and all procedures, techniques, marketing plans, business plans, methods of management
or other information utilized in connection with Componus’ business. Except as set forth in the
attached Schedule 2.6, no third party has any right to, and Componus has not received any notice of
infringement of or conflict with asserted rights of others with respect to any product, technology,
data, trade secrets, know-how, proprietary techniques, trademarks, service marks, trade names or
copyrights which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or
finding, would have a materially adverse affect on the business, operations, financial conditions
or income of Componus or any material portion of its properties, assets or rights.
Section 2.7 Litigation and Proceedings. There are no actions, suits or proceedings pending or
threatened by or against or affecting Componus, at law or in equity, before any court or other
governmental agency or instrumentality, domestic or foreign or before any arbitrator of any kind
that would have a material adverse effect on the business, operations, financial condition, income
or business prospects of Componus. Componus does not have any knowledge of any default on its part
with respect
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to any judgment, order, writ, injunction, decree, award, rule or regulation of any court,
arbitrator or governmental agency or instrumentality.
Section 2.8 Contracts. On the Closing Date:
(a) | Except for those enumerated on the attached Schedule 2.8(a), there are no material contracts, agreements, franchises, license agreements, or other commitments to which Componus is a party to or by which it or any of its subsidiaries or properties are bound; | ||
(b) | Componus is not a party to any contract, agreement, commitment or instrument or subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree or award which materially and adversely affects, or in the future may (as far as Componus can now foresee) materially and adversely affect, the business, operations, properties, assets or conditions of Componus; and | ||
(c) | Except as enumerated on the attached Schedule 2.8(c), Componus is not a party to any material 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, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended; (iii) agreement, contract or indenture relating to the borrowing of money; (iv) guaranty of any obligation for the borrowing of money or otherwise, excluding endorsements made for collection and other guaranties of obligations, which, in the aggregate exceeds $1,000; (v) consulting or other contract with an unexpired term of more than one year or providing for payments in excess of $10,000 in the aggregate; (vi) collective bargaining agreement; and (vii) contract, agreement, or other commitment involving payments by it for more than $10,000 in the aggregate. |
Section 2.9 No Conflict With Other Instruments. The execution of this Agreement and the
consummation of the transactions contemplated by this Agreement will not result in the breach of
any term or provision of, or constitute an event of default under, any material indenture,
mortgage, deed of trust or other material contract, agreement or instrument to which Componus is a
party or to which any of its properties or operations are subject.
Section 2.10 Material Contract Defaults. To the best of Componus’ knowledge and belief, it is
not in default in any material respect under the terms of any outstanding contract, agreement,
lease or other commitment which is material to the business, operations, properties, assets or
condition of Componus, and there is no event of default in any material respect under any such
contract, agreement, lease or other commitment in respect of which Componus has not taken adequate
steps to prevent such a default from occurring.
Section 2.11 Governmental Authorizations. To the best of Componus’ knowledge, Componus has
all licenses, franchises, permits and other governmental authorizations that are legally required
to enable it to conduct its business operations in all material respects as conducted on the date
hereof. Except for compliance with federal and state securities or corporation laws, no
authorization, approval, consent or order of, or registration, declaration or filing with, any
court or other governmental body is
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required in connection with the execution and delivery by Componus of the transactions contemplated
hereby.
Section 2.12 Compliance With Laws and Regulations. To the best of Componus’ knowledge and
belief, Componus 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
Componus or would not result in Componus incurring any material liability.
Section 2.13 Insurance. All of Componus’ insurable properties are insured for Componus’
benefit under valid and enforceable policy or policies containing substantially equivalent coverage
and will be outstanding and in full force at the Closing Date.
Section 2.14 Approval of Agreement. The directors of Componus have authorized the execution
and delivery of this Agreement and have approved the transactions contemplated hereby.
Section 2.15 Material Transactions or Affiliations. As of the Closing Date, there will exist
no material contract, agreement or arrangement between Componus 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 Componus to own beneficially, ten percent (10%) or more of the issued and outstanding
Common Shares of Componus and which is to be performed in whole or in part after the date hereof
except with regard to an agreement with the shareholders of Componus providing for the distribution
of cash to provide for payment of federal and state taxes on Subchapter S income. Componus has no
commitment, whether written or oral, to lend any funds to, borrow any money from or enter into any
other material transactions with, any such affiliated person.
ARTICLE III
EXCHANGE PROCEDURE AND OTHER CONSIDERATION
EXCHANGE PROCEDURE AND OTHER CONSIDERATION
Section 3.1 Share Exchange/Delivery of Componus’ Securities. On the Closing Date, Componus
shall deliver to JPCI all of its issued and outstanding shares (the “Componus Common Shares”), duly
endorsed in blank or with executed power attached thereto in transferable form, so that Componus
shall become a wholly owned subsidiary of JPCI.
Section 3.2 Issuance of JPCI Shares. In exchange for all of the Componus Common Shares
tendered pursuant to Section 3.1, JPCI will issue 89,000,000 common shares of JPCI common stock to
Componus or their designees which will represent, and equate to approximately 78.07% of JPCI’s
issued and outstanding common stock after the closing of this transaction (the “JPCI Common
Shares”). Such shares will be issued to Componus or their designees. Such shares are restricted
in accordance with Rule 144 of the 1933 Securities Act.
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Section 3.3 Additional Consideration. On the Closing Date, in addition to the share exchange
as contemplated by Sections 3.1 and 3.2, Componus shall pay up to $25,000 (the “Additional
Consideration”) to JPCI for reimbursement of its legal fees incurred as a result of the
transactions contemplated by this Agreement.
Section 3.4 Satisfaction of Present Liabilities of JPCI. At or prior to the Closing Date, the
liabilities and obligations of JPCI as set forth on Schedule 3.4 shall be satisfied by JPCI.
Section 3.5 Events Prior to Closing. Upon execution hereof or as soon thereafter as
practical, management of JPCI and Componus shall execute, acknowledge and deliver (or shall cause
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, 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
transactions contemplated hereby, subject only to the conditions to Closing referenced herein
below.
Section 3.6 Closing. The closing (“Closing Date”) of the transactions contemplated by this
Agreement shall be on the date and at the time the exchange documents are executed herewith.
Section 3.7 Effective Date. The date, on or after the Closing Date, when all of the terms and
conditions of this Agreement are satisfied, including but not limited to the Conditions Precedent
set forth in Articles V and VI (the “Effective Date”).
Section 3.8 Termination.
(a) | This Agreement may be terminated by the board of directors or majority interest of Shareholders of either JPCI or Componus, respectively, at any time prior to the Closing Date if: |
(i) | there shall be any action or proceeding before any court or any governmental body which shall seek to restrain, prohibit or invalidate the transactions contemplated by this Agreement and which, in the judgment of such board of directors, made in good faith and based on the advice of its legal counsel, makes it inadvisable to proceed with the exchange contemplated by this Agreement; or | ||
(ii) | any of the transactions contemplated hereby are disapproved by any regulatory authority whose approval is required to consummate such transactions. |
In the event of termination pursuant to Paragraph (a) of this Section 3.8, no obligation,
right, or liability shall arise hereunder and each party shall bear all of the expenses incurred by
it in connection with the negotiation, drafting and execution of this Agreement and the
transactions herein contemplated.
(b) | This Agreement may be terminated at any time prior to the Closing Date by action of the board of directors of JPCI if Componus shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or |
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warranties of Componus contained herein shall be inaccurate in any material respect,
which noncompliance or inaccuracy is not cured after 20 days written notice thereof is
given to Componus. If this Agreement is terminated pursuant to Paragraph (b) of this
Section 3.8, this Agreement shall be of no further force or effect and no obligation,
right or liability shall arise hereunder.
(c) | This Agreement may be terminated at any time prior to the Closing Date by action of the board of directors of Componus if JPCI shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or warranties of Componus contained herein shall be inaccurate in any material respect, which noncompliance or inaccuracy is not cured after 20 days written notice thereof is given to Componus. If this Agreement is terminated pursuant to Paragraph (c) of this Section 3.8, this Agreement shall be of no further force or effect and no obligation, right or liability shall arise hereunder. |
In the event of termination pursuant to paragraph (b) and (c) of Section 3.8, the breaching
party shall bear all of the expenses incurred by the other party in connection with the
negotiation, drafting and execution of this Agreement and the transactions herein contemplated.
Section 3.9 Directors of JPCI After Acquisition. At the Effective Date, Xxxx X. Xxxxxxx,
Xxxxxx X. Xxxxxx and Xxxxx X. Xxxxxxxx shall each resign as the members of the Board of Directors
of JPCI and Xxxx-Xxxx Xxxxx, Xxxx Xxxx-Xxxx Xxxxx, Xxxx-Pin Xxx, Xxxxx Xxxxxxxx, Xxxx-Xxxx Xxxx and
Yung-Xxxxxx Xxxx shall be appointed to the Board of Directors of JPCI. Each director shall hold
office until his successor has been duly elected and has qualified or until his death, resignation
or removal.
Section 3.10 Officers of JPCI. At the Effective Date, Xxxx X. Xxxxxxx, Xxxxxx X. Xxxxxx and
Xxxxx X. Xxxxxxxx shall each resign as the officers of JPCI and Xxxx-Xxxx Xxxxx shall be appointed
Chairman, President and Chief Executive Officer of JPCI and Xxxx Xxxx-Xxxx Xxxxx shall be appointed
Secretary, Treasurer, Chief Financial Officer of JPCI. Each officer shall hold office until his
successor has been duly elected and has qualified or until his death, resignation or removal.
ARTICLE IV
SPECIAL COVENANTS
SPECIAL COVENANTS
Section 4.1 Access to Properties and Records. Prior to closing, JPCI and Componus will each
afford to the officers and authorized representatives of the other full access to the properties,
books and records of each other, so that each may have full opportunity to make such reasonable
investigation as it shall desire to make of the affairs of the other and each will furnish the
other with such additional financial and operating data and other information as to the business
and properties of each other, as the other shall from time to time reasonably request.
Section 4.2 Availability of Rule 144. JPCI and the JPCI Shareholders holding “restricted
securities,” as that term is defined in Rule 144 of the 1933 Securities Act will remain as
“restricted securities.” JPCI is under no obligation to register such shares under the Securities
Act, except as
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otherwise provided. The stockholders of JPCI and Componus holding restricted securities of JPCI
and Componus as of the date of this Agreement and their respective heirs, administrators, personal
representatives, successors and assigns, are intended third party beneficiaries of the provisions
set forth herein. The covenants set forth in Article IV shall survive the Closing Date and the
consummation of the transactions herein contemplated.
Section 4.3 Special Covenants and Representations Regarding the JPCI Common Shares to be
Issued in the Exchange. The consummation of this Agreement, including the issuance of the JPCI
Common Shares to the Shareholders of Componus as contemplated hereby, constitutes the offer and
sale of securities under the Securities Act, and applicable state statutes. Such transaction shall
be consummated in reliance on exemptions from the registration and prospectus delivery requirements
of such statutes which depend, inter alia, upon the circumstances under which the Componus
Shareholders and their designees acquire such securities.
Section 4.4 Third Party Consents. JPCI and Componus agree to cooperate with each other in
order to obtain any required third party consents to this Agreement and the transactions herein
contemplated.
Section 4.5 Actions Prior to and Subsequent to Closing.
(a) | From and after the date of this Agreement until the Closing Date, except as permitted or contemplated by this Agreement, JPCI and Componus will each use its best efforts to: |
(i) | 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; | ||
(ii) | maintain in full force and effect insurance comparable in amount and in scope of coverage to that now maintained by it; and | ||
(iii) | perform in all material respects all of its obligations under material contracts, leases and instruments relating to or affecting its assets, properties and business. |
(b) | From and after the date of this Agreement until the Effective Date, each of JPCI and Componus will not, without the prior consent of the other party: |
(i) | except as otherwise specifically set forth herein, make any change in its articles of incorporation or by-laws; | ||
(ii) | declare or pay any dividend on its outstanding Common Shares, except as may otherwise be required by law, or effect any stock split or otherwise change its capitalization, except as provided herein; | ||
(iii) | enter into or amend any employment, severance or agreements or arrangements with any directors or officers; | ||
(iv) | enter into any agreement with respect to the transfer, assignment or sale of its assets (other than the ordinary course of business); | ||
(v) | grant, confer or award any options, warrants, conversion rights or other rights not existing on the date hereof to acquire any Common Shares; or | ||
(vi) | purchase or redeem any Common Shares. |
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Section 4.6 Indemnification.
(a) | JPCI hereby agrees to indemnify Componus and each of the officers, agents and directors and current shareholders of Componus as of the Closing Date 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), to which it or they may become subject to or rising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement; and | ||
(b) | Componus hereby agrees to indemnify JPCI and each of the officers, agents, directors and current shareholders of JPCI as of the Closing Date 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), to which it or they may become subject arising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement. |
ARTICLE V
CONDITIONS PRECEDENT TO OBLIGATIONS OF JPCI
CONDITIONS PRECEDENT TO OBLIGATIONS OF JPCI
The obligations of JPCI under this Agreement are subject to the satisfaction, at or before the
Closing Date, of the following conditions:
Section 5.1 Accuracy of Representations. The representations and warranties made by Componus
in this Agreement were true when made and shall be true at the Closing Date with the same force and
effect as if such representations and warranties were made at the Closing Date (except for changes
therein permitted by this Agreement), and Componus shall have performed or complied with all
covenants and conditions required by this Agreement to be performed or complied with by Componus
prior to or at the Closing. JPCI shall be furnished with a certificate, signed by a duly
authorized officer of Componus and dated the Closing Date, to the foregoing effect.
Section 5.2 Director Approval. The Board of Directors of Componus shall have approved this
Agreement and the transactions contemplated herein.
Section 5.3 Officer’s Certificate. JPCI shall have been furnished with a certificate dated the
Closing Date and signed by a duly authorized officer of Componus to the effect that: (a) the
representations and warranties of Componus set forth in the Agreement and in all Exhibits,
Schedules and other documents furnished in connection herewith are in all material respects true
and correct as if made on the Closing Date; (b) Componus has performed all covenants, satisfied all
conditions, and complied with all other terms and provisions of this Agreement to be performed,
satisfied or complied with by it as of the Closing Date; (c) since such date and other than as
previously disclosed to JPCI on the attached
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Schedules, Componus has not entered into any material transaction other than transactions
which are usual and in the ordinary course if its business; and (d) no litigation, proceeding,
investigation or inquiry is pending or, to the best knowledge of Componus, threatened, which might
result in an action to enjoin or prevent the consummation of the transactions contemplated by this
Agreement or, to the extent not disclosed in the Componus Schedules, by or against Componus which
might result in any material adverse change in any of the assets, properties, business or
operations of Componus.
Section 5.4 No Material Adverse Change. Prior to the Closing Date, there shall not have
occurred any material adverse change in the financial condition, business or operations of nor
shall any event have occurred which, with the lapse of time or the giving of notice, may cause or
create any material adverse change in the financial condition, business or operations of Componus.
Section 5.5 Recapitalization. Prior to the Closing Date, JPCI shall: (i) have completed a
reverse stock split with respect to its common stock in the amount of two (2) shares for one (1)
share; (ii) have filed an amendment to its certificate of incorporation with the Secretary of State
of the State of Delaware that: (a) increases the authorized shares of common stock to 250,000,000
shares of common stock; and (b) changes the name of the company to “Componus, Inc.”
Section 5.6 Other Items. JPCI shall have received such further documents, certificates or
instruments relating to the transactions contemplated hereby as JPCI may reasonably request.
ARTICLE VI
CONDITIONS PRECEDENT TO OBLIGATIONS OF COMPONUS
CONDITIONS PRECEDENT TO OBLIGATIONS OF COMPONUS
The obligations of Componus under this Agreement are subject to the satisfaction, at or before
the Closing date (unless otherwise indicated herein), of the following conditions:
Section 6.1 Accuracy of Representations. The representations and warranties made by JPCI in
this Agreement were true when made and shall be true as of the Closing Date (except for changes
therein permitted by this Agreement) with the same force and effect as if such representations and
warranties were made at and as of the Closing Date, and JPCI shall have performed and complied with
all covenants and conditions required by this Agreement to be performed or complied with by JPCI
prior to or at the Closing. Componus shall have been furnished with a certificate, signed by a
duly authorized executive officer of JPCI and dated the Closing Date, to the foregoing effect.
Section 6.2 Director and Shareholder Approval. The Board of Directors of JPCI and
shareholders that own a majority of the issued and outstanding common stock of JPCI shall have
approved this Agreement and the transactions contemplated herein.
Section 6.3 Officer’s Certificate. Componus shall be furnished with a certificate dated the
Closing Date and signed by a duly authorized officer of JPCI to the effect that: (a) the
representations and warranties of JPCI set forth in the Agreement and in all Exhibits, Schedules
and other documents furnished in connection herewith are in all material respects true and correct
as if made on the Effective Date; and (b) JPCI has performed all covenants, satisfied all
conditions, and complied with all other terms and provisions of the Agreement to be performed,
satisfied or complied with by it as of the Effective
12
Date.
Section 6.4 No Material Adverse Change. Prior to the Closing Date, there shall not have
occurred any material adverse change in the financial condition, business or operations of nor
shall any event have occurred which, with the lapse of time or the giving of notice, may cause or
create any material adverse change in the financial condition, business or operations of JPCI.
Section 5.5 Recapitalization. Prior to the Closing Date, JPCI shall: (i) have completed a
reverse stock split with respect to its common stock in the amount of two (2) shares for one (1)
share; (ii) have filed an amendment to its certificate of incorporation with the Secretary of State
of the State of Delaware that: (a) increases the authorized shares of common stock to 250,000,000
shares of common stock; and (b) changes the name of the company to “Componus, Inc.”; and (iii) have
sold, transferred or otherwise assigned all assets and agreements (other than this agreement) of
JPCI to a third party.
Section 6.5 1934 Exchange Act Compliance. JPCI must file any necessary reports to become and
stay current with its 1934 Exchange Act filings up to and including the Effective Date of this
Agreement including any filings which may be required in order to consummate the transactions
contemplated by this Agreement. This shall include, but not be limited to all annual, quarterly and
current filings.
ARTICLE VII
MISCELLANEOUS
MISCELLANEOUS
Section 7.1 Brokers and Finders. Each party to this Agreement represents and warrants that it
is under no obligation, express or implied, to pay certain finders in connection with the bringing
of the parties together in the negotiation, execution, or consummation of this Agreement. The
parties each agree to indemnify the other against any claim by any third person for any commission,
brokerage or finder’s fee or other payment with respect to this Agreement or the transactions
contemplated hereby 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 7.2 Law, Forum and Jurisdiction. This Agreement shall be construed and interpreted in
accordance with the laws of the State of Delaware, United States of America.
Section 7.3 Notices. Any notices or other communications required or permitted hereunder
shall be sufficiently given if personally delivered to it or sent by registered mail or certified
mail, postage prepaid, or by prepaid telegram addressed as follows:
If to JPCI:
|
JPC CAPITAL PARTNERS, INC. | |
0000 Xxxxxxx Xxxxx Xxxx | ||
Xxxxx 000 | ||
Xxxxxxxxxx, XX 00000 | ||
Attention: |
13
tel. | ||
fax. | ||
with a copy to: |
||
If to Componus:
|
COMPONUS, INC. | |
000 Xxxxxx Xxx., Xxxxx 000 | ||
Xxx Xxxx, XX 00000 | ||
Attention: | ||
tel. | ||
fax. | ||
With a copy to: |
||
Xxxxxxx X. Xxxxxxx | ||
Xxxxx & Xxxxxxx LLP | ||
00 Xxxxx Xxxxxx, 00xx Xxxxx | ||
Xxx Xxxx, Xxx Xxxx 00000 | ||
tel. (000) 000-0000 | ||
fax.(000) 000-0000 |
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 as of
the date so delivered, mailed or telegraphed.
Section 7.4 Attorneys’ Fees. In the event that any party institutes any action or suit to
enforce this Agreement or to secure relief from any default hereunder or breach hereof, the
breaching party or parties shall reimburse the non-breaching party or parties for all costs,
including reasonable attorneys’ fees, incurred in connection therewith and in enforcing or
collecting any judgment rendered therein.
Section 7.5 Confidentiality. Each party hereto agrees with the other party that, unless and
until the transactions contemplated by this Agreement have been consummated, they and their
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: (i) to the extent such data is a
matter of public knowledge or is required by law to be published; and (ii) to the extent that such
data or information must be used or disclosed in order to consummate the transactions contemplated
by this Agreement.
Section 7.6 Schedules; Knowledge. Each party is presumed to have full knowledge of all
information set forth in the other party’s schedules delivered pursuant to this Agreement.
14
Section 7.7 Third Party Beneficiaries. This contract is solely between JPCI and Componus and
except as specifically provided, no director, officer, stockholder, employee, agent, independent
contractor or any other person or entity shall be deemed to be a third party beneficiary of this
Agreement.
Section 7.8 Entire Agreement. This Agreement represents the entire agreement between the
parties relating to the subject matter hereof. This Agreement alone fully and completely expresses
the agreement of the parties relating to the subject matter hereof. There are no other courses of
dealing, understanding, agreements, representations or warranties, written or oral, except as set
forth herein. This Agreement may not be amended or modified, except by a written agreement signed
by all parties hereto.
Section 7.9 Survival; Termination. The representations, warranties and covenants of the
respective parties shall survive the Closing Date and the consummation of the transactions herein
contemplated for 24 months.
Section 7.10 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 7.11 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 shall be construed as a waiver of the same or any other default then, theretofore, or
thereafter occurring or existing. At any time prior to the Closing Date, this Agreement may be
amended by a written consent 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
hereof may be extended by a written consent by the party or parties for whose benefit the provision
is intended.
Section 7.12 Expenses. Except as otherwise provided herein, each party herein shall bear all
of their respective costs and expenses incurred in connection with the negotiation of this
Agreement and in the consummation of the transactions provided for herein and the preparation
thereof.
Section 7.13 Headings; Context. The headings of the sections and paragraphs contained in this
Agreement are for convenience of reference only and do not form a part hereof and in no way modify,
interpret or construe the meaning of this Agreement.
Section 7.14 Benefit. This Agreement shall be binding upon and shall inure only to the
benefit of the parties hereto, and their permitted assigns hereunder. This Agreement shall not be
assigned by any party without the prior written consent of the other party.
Section 7.15 Public Announcements. Except as may be required by law, neither party shall make
any public announcement or filing with respect to the transactions provided for herein without the
prior consent of the other party hereto.
Section 7.16 Severability. In the event that any particular provision or provisions of this
Agreement or the other agreements contained herein shall for any reason hereafter be determined to
be
15
unenforceable, or in violation of any law, governmental order or regulation, such unenforceability
or violation shall not affect the remaining provisions of such agreements, which shall continue in
full force and effect and be binding upon the respective parties hereto.
Section 7.17 Failure of Conditions; Termination. In the event of any of the conditions
specified in this Agreement shall not be fulfilled on or before the Closing Date, either of the
parties have the right either to proceed or, upon prompt written notice to the other, to terminate
and rescind this Agreement. In such event, the party that has failed to fulfill the conditions
specified in this Agreement will liable for the other parties’ legal fees. The election to proceed
shall not affect the right of such electing party reasonably to require the other party to continue
to use its efforts to fulfill the unmet conditions.
Section 7.18 No Strict Construction. The language of this Agreement shall be construed as a
whole, according to its fair meaning and intendment, and not strictly for or against either party
hereto, regardless of who drafted or was principally responsible for drafting the Agreement or
terms or conditions hereof.
Section 7.19 Execution Knowing and Voluntary. In executing this Agreement, the parties
severally acknowledge and represent that each: (a) has fully and carefully read and considered
this Agreement; (b) has been or has had the opportunity to be fully apprized by its attorneys of
the legal effect and meaning of this document and all terms and conditions hereof; (c) is executing
this Agreement voluntarily, free from any influence, coercion or duress of any kind.
Section 7.20 Amendment. At any time after the Closing Date, this Agreement may be amended
by a writing signed by both parties, 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 hereof may be
extended by a writing signed by the party or parties for whose benefit the provision is intended.
[Remainder of Page Intentionally Blank]
[Signature Page Follows]
16
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective duly authorized officers or representatives and entered into as of the date first above
written.
ATTEST: | JPC CAPITAL PARTNERS, INC. | |||||||
/s/
Xxxxxx X. Xxxxxx
|
By: | /s/ Xxxx X. Xxxxxxx | ||||||
Secretary |
Name: | |||||||
Title: | CEO | |||||||
ATTEST: | COMPONUS INC. | |||||||
By: | /s/ Xxxx Xxxxx | |||||||
Name: | Xxxx-Xxxx Xxxxx | |||||||
Title: | President, Chief Executive Officer and | |||||||
Director |
JPCI SHAREHOLDERS
Name:
|
/s/ X.X. Xxxxxxx | |||
X.X.
Xxxxxxx, Director of City Trust Ltd. as Trustee of the Xxxxxxx Trust |
||||
Name:
|
/s/ X.X. Xxxxxx | |||
X.X.
Xxxxxx, Director of City Trust Ltd. as Trustee of the Xxxxxxx Trust |
||||
Name:
|
/s/ Xxxxxx Xxxxxxx | |||
Name:
|
/s/ Xxxxxx Xxxxxxx | |||
XX
Xxxxx Assett Management, LLC
|
||||
Name:
|
||||
Name:
|
||||
COMPONUS SHAREHOLDERS | ||||
Name:
|
/s/ Xxxx Xxxxx | |||
Xxxx-Xxxx Xxxxx
|
17
/s/ Xxxx Xxxx-Xxxx Xxxxx | ||||
Name:
|
||||
Hebron Holding Corp | ||||
/s/ Xxxx Xxxxx | ||||
Name:
|
||||
Title: |
||||
Jabez Holding Corp | ||||
/s/ Xxxx Xxxxx | ||||
Name:
|
||||
Title: |
18
Schedule 2.6
Patents: None
Trademarks and Service Marks:
Accepted Trademarks
File Number | Country of Origin | Trademark | Acceptance Date | |||
004450987
|
Europe | AFS | June 16, 2006 | |||
000000
|
Xxxxxx | F | March 16, 2007 | |||
000000
|
Xxxxxx | Componus Logo | March 16, 2007 |
Pending Trademarks
Application Number | Country of Origin | Trademark | Application Date | |||
005678644
|
Europe | F | February 9, 2007 | |||
005678529
|
Europe | Componus Logo | February 9, 2007 | |||
5812200
|
China | F | December 27, 2006 | |||
5812199
|
China | Componus Logo | December 27, 2006 | |||
77071741
|
USA | F | December 27, 2006 |
Abandoned Trademarks
File Number | Country of Origin | Trademark | Application Date | |||
78683861
|
USA | AFS Logo | August 12, 2005 | |||
77071736
|
USA | Componus Logo | December 27, 2006 |
Physical Property:
The Company owns its principal office at B1, 207, Sec. 0, Xxxxxxx Xxxx, Xxxxxxxx Xxxx, Xxxxxx,
00000, Taiwan, R.O.C. A portion of this office is available for leasing to a third-party with; it
is currently vacant. The income generated from this lease is approximately $120,000 USD and the
lease terms are for two years years with a renewable option.
Schedule 2.8(a)
Supplier Contract: Between Hanil Forging and AFS
Supplier
Contract: Between Sun Castle and AFS
Supplier
Contract: Between King Zone and AFS
Supplier
Contract: Between Xxx Xxxx and AFS
Supplier
Contract: Between Su-Chuan and AFS
Supplier Contract: Between Want Win and AFS
Supplier
Contract: Between CIXI ZhenXing and AFS
Sales Contract: Between Xxxxx Manufacturing and AFS
Sales Contract: Between Kirzman/Xxxx(Affina)and AFS
Schedule 2.8 [c]
SUMMARY COMPENSATION TABLE
ANNUAL COMPENSATION TABLE
ANNUAL COMPENSATION TABLE
LONG-TERM
COMPENSATION AWARDS
SECURITIES UNDERLYING | ||||||||||||||||||||
NAME AND PRINCIPAL | YEAR | SALARY | BONUS | COMPENSATION | OTHER/SARS | |||||||||||||||
Xxxx-Xxxx Xxxxx |
2006 | $ | 1,568,000 | $ | — | $ | 60,000 | $ | — | |||||||||||
President, CEO & Director |
2005 | $ | 1,568,000 | $ | — | $ | 60,000 | $ | — | |||||||||||
Officer & Director |
2004 | $ | 1,568,000 | $ | — | $ | 60,000 | $ | — | |||||||||||
Xxxx Xxxx-Xxxx Xxxxx |
2006 | $ | 1,344,000 | $ | — | $ | 60,000 | $ | — | |||||||||||
Secretary, Treasurer, |
2005 | $ | 1,344,000 | $ | — | $ | 60,000 | $ | — | |||||||||||
Chief
Financial Officer and Director |
2004 | $ | 1,344,000 | $ | — | $ | 60,000 | $ | — |
EMPLOYMENT CONTRACTS BETWEEN AFS (SUBSIDIARY) AND EMPLOYEES:
Xxxx Xxxxxx
Xxxxxxxx Xxxxxx
Xxxxx CO. Xxxx
Xxxxxxx Weensy
Xxxxxxxx Xxxxxx
Xxxxx CO. Xxxx
Xxxxxxx Weensy
UNDER THE BASIC LABOR LAW OF TAIWAN (X.X.XX.), ALL COMPANIES ARE REQUIRED TO PUT 6% OF ALL
EMPLOYEE WAGES INTO THE RETAIL PLANNING ACCOUNT, ALL EMPLOYEES ARE REQUIRED BY LAW TO JOIN THE
HEALTH INSURANCE SKIN.