SHARE EXCHANGE AGREEMENT
This
Agreement dated as of the 3rd
day of
December, 2007, by and among Capital Solutions I, Inc., a Delaware corporation
having its offices at One X.X. Xxxxx Xxxxxx, Xxxxx 000, Xxxxx, Xxxxxxx 00000
(the “Issuer”), and Jibrin Xxxx Xxxxxx Xx Xxxxxx, trustee of the Xx Xxxxxx Stock
Trust, having at office at 205
Nad
Building, Al Musalla Road, Baniyas (Nasser) Square, Dubai-United Arab Emirates
(the
“Shareholder”).
WITNESSETH:
WHEREAS,
the Shareholder is the holder of all of the issued and outstanding capital
stock
(the “Acquisition Shares”) of Moral Star Development Limited, a British Virgin
Islands corporation (“BVI Company”), which is the sole stockholder of Jiangxi
Moral Star Copper Technology Limited, a corporation organized under the laws
of
the Peoples’ Republic of China as a wholly foreign owned enterprise (“Moral
Star”);
WHEREAS,
the Shareholder is acquiring a controlling interest in the Issuer;
WHEREAS,
the Issuer is willing to issue shares of its common stock, par value $.0000001
per share (“Common Stock”), to the Shareholder and its designees listed on
Schedule I hereto (the “Designees”) in consideration for the Acquisition
Shares.
NOW,
THEREFORE, for the mutual consideration set out herein, the parties agree as
follows:
1.
Exchange
of Shares.
(a)
Issuance
of Shares by Issuer.
On and
subject to the conditions set forth in this Agreement, the Issuer will issue
to
the Shareholder and the Designees, in exchange for all of the Acquisition
Shares, which represents all of the issued and outstanding capital stock of
BVI
Company, which is the sole stockholder of Moral Star, an aggregate of 3,301,452
shares of Common Stock (the “Shares”). The Shares will be issued to the
Shareholder and the Designees in the amounts set forth after their respective
names in Schedule I to this Agreement.
(b)
Transfer
of Acquisition Shares by the Shareholder.
On and
subject to the conditions set forth in this Agreement, the Shareholder will
transfer to the Issuer all of the Acquisition Shares, free and clear of any
and
all liens, claims, encumbrances, preemptive rights, right of first refusal
and
adverse interests of any kind, in exchange for the Shares to be issued to the
Shareholder and the Designees.
(c)
Closing.
The
issuance of the Shares to the Shareholder and the Designees and the transfer
of
the Acquisition Shares to the Issuer will take place at a closing (the
“Closing”) to be held at the office of Sichenzia Xxxx Xxxxxxxx Xxxxxxx, LLP, 00
Xxxxxxxx, 00xx
Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000 as soon as possible after or contemporaneously with
the
satisfaction or waiver of all of the conditions to closing set forth in Section
4 of this Agreement.
2.
Representations
and Warranties of the Issuer.
The
Issuer hereby represents, warrants, covenants and agrees as
follows:
(a)
General.
(i)
The Issuer is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware. The Issuer has the
corporate power to own its properties and to carry on its business as now being
conducted and is duly qualified to do business and is in good standing in each
jurisdiction in which the failure to be so qualified and in good standing would
have a material adverse effect on the Issuer. The Issuer is not in violation
of
any provisions of its certificate of incorporation or its bylaws. No consent,
approval or agreement of any individual or entity is required to be obtained
by
the Issuer in connection with the execution and performance by the Issuer of
this Agreement or the execution and performance by the Issuer of any agreements,
instruments or other obligations entered into in connection with this Agreement.
The Issuer does not have any equity investment or other interest, direct or
indirect, in, or any outstanding loans, advances or guarantees to or on behalf
of, any domestic or foreign corporation, limited liability company, association,
partnership, joint venture or other entity.
(ii)
The Issuer provided to the Shareholder true, correct and complete
copies of the Issuer’s articles of incorporation, including all amendments
thereto, and the Issuer’s bylaws, including all amendments thereto, as such
articles of incorporation and bylaws are in effect on the date
hereof.
(iii)
The Issuer has full power and authority to carry out the
transactions provided for in this Agreement, and this Agreement constitutes
the
legal, valid and binding obligations of the Issuer, enforceable in accordance
with its terms, except as enforceability may be limited by bankruptcy,
insolvency and other laws of general application affecting the enforcement
of
creditor’s rights and except that any remedies in the nature of equitable relief
are in the discretion of the court. All necessary action required to be taken
by
the Issuer for the consummation of the transactions contemplated by this
Agreement has been taken.
(iv)
The Shares, when issued pursuant to this Agreement, will be duly
and validly authorized and issued, fully paid and non-assessable. The issuance
of the Shares to Shareholder and Designees is exempt from the registration
requirements of the Securities Act of 1933, as amended (the “Securities Act”),
pursuant to an exemption provided by Regulation S promulgated by the Securities
and Exchange Commission (“SEC”) thereunder (“Regulation S”).
(v) The
Issuer has authorized capital stock consisting of 900,000,000shares of Issuer
Common Stock, and 20,000,000 shares of preferred stock, no par value (the
“Preferred Stock”), of which 66,732 shares of Common Stock (subject to
adjustment in the event of a reverse split of the Common Stock), and 50,000
shares of Preferred Stock are presently issued and outstanding. The Issuer
has
not created or authorized any other series of Preferred Stock and has no
obligation or understanding to do so, except as contemplated in that certain
securities purchase agreement to be executed in connection with a proposed
reverse acquisition transaction between the Issuer and the Investors named
therein (the “Purchase Agreement”). The presently outstanding shares of
preferred stock will be conveyed to the Company and cancelled on or prior to
the
Closing Date.
(vi)
The
Issuer is not party to any agreement or understanding pursuant to which any
securities of any class of capital stock are to be issued or created or
transferred. Except as contemplated in the Purchase Agreement, neither the
Issuer nor any officer, director or 5% stockholder of the Issuer has any
agreements, plans, understandings or proposals, whether formal or informal
or
whether oral or in writing, pursuant to which it or he granted or may have
issued or granted any individual or entity any Convertible Security or any
interest in the Issuer or the Issuer’s earnings or profits, however defined. As
used in this Agreement, the term “Convertible Securities” shall mean any
options, rights, warrants, convertible debt, equity securities or other
instrument or agreement upon the exercise or conversion of which or upon the
exchange of which or pursuant to the terms of which additional shares of any
class of capital stock of the Issuer may be issued.
2
(vii) There
is
no private or governmental action, suit, proceeding, claim, arbitration or
investigation pending before any agency, court or tribunal, foreign or domestic,
or, to the Issuer’s Best Knowledge, threatened against the Issuer or any of its
properties or any of its officers or directors (in their capacities as such).
There is no judgment, decree or order against the Issuer that could prevent,
enjoin, alter or delay any of the transactions contemplated by this Agreement.
The term “Best Knowledge” of the Issuer shall mean and include (i) actual
knowledge and (ii) that knowledge which a prudent businessperson would
reasonably have obtained in the management of such Person’s business affairs
after making due inquiry and exercising the due diligence which a prudent
businessperson should have made or exercised, as applicable, with respect
thereto.
(viii) There
are
no material claims, actions, suits, proceedings, inquiries, labor disputes
or
investigations (whether or not purportedly on behalf of the Issuer) pending
or,
to the Issuer’s Best Knowledge, threatened against the Issuer or any of its
assets, at law or in equity or by or before any governmental entity or in
arbitration or mediation. No bankruptcy, receivership or debtor relief
proceedings are pending or, to the best of the Issuer’s knowledge, threatened
against the Issuer.
(ix) The
Issuer has complied with, is not in violation of, and has not received any
notices of violation with respect to, any federal, state, local or foreign
Law,
judgment, decree, injunction or order, applicable to it, the conduct of its
business, or the ownership or operation of its business. References in this
Agreement to “Laws” shall refer to any laws, rules or regulations of any
federal, state or local government or any governmental or quasi-governmental
agency, bureau, commission, instrumentality or judicial body (including, without
limitation, any federal or state securities law, regulation, rule or
administrative order).
(x) The
Issuer has properly filed all tax returns required to be filed and has paid
all
taxes shown thereon to be due. All tax returns previously filed are true and
correct in all material respects.
(xi)
The
Issuer has no outstanding liabilities or obligations to any party except as
reflected on the Issuer’s Form 10-QSB for the quarter ended August 31, 2007,
other than charges since such date similar to those incurred in past periods
and
consistent with past practice, all of which will be paid in full or otherwise
satisfied on or prior to the Closing Date.
(xii)
The
Issuer’s Form 10-KSB for the year ended May 30, 2007, contains the audited
financial statements of the Issuer, certified by Bagell, Josephs, Xxxxxx &
Company, L.L.C. (“Bagell”), the Issuer’s independent registered accounting firm,
and the Issuer’s Form 10-QSB for the quarter ended August 31, 2007 contains the
unaudited financial statements of the Issuer which have been reviewed by Bagell.
The balance sheets fairly present the financial position of the Issuer, as
of
their respective dates, and each of the consolidated statements of income,
stockholders’ equity and cash flows (including any related notes and schedules
thereto) fairly presents the results of operations, cash flows and changes
in
stockholders’ equity, as the case may be, of the Issuer for the periods to which
they relate, in each case in accordance with generally accepted accounting
principles (“GAAP”) consistently applied during the periods involved. Bagell is
independent as to the Issuer in accordance with the rules and regulations of
the
SEC. The books and records of the Issuer have been, and are being, maintained
in
all material respects in accordance with GAAP and any other applicable legal
and
accounting requirements and reflect only actual transaction. The Issuer has
not
received any letters of comments from the SEC relating to any filing made by
the
Issuer with the SEC which has not been addressed by an amended filing, and
each
amended filing fully responds to the questions raised by the staff of the SEC.
The Issuer maintains disclosure controls and procedures that are effective
to
ensure that information required to be disclosed by the Issuer in its annual
and
quarterly reports filed with the SEC is accumulated and communicated to the
Issuer’s management, including its principal executive and financial officers as
appropriate, to allow timely decisions regarding required disclosure. There
were
no significant changes in the Issuer’s internal controls or other factors that
could significantly affect such controls subsequent to December 31, 2006. The
Issuer has not received any advice from Bagell to the effect that there is
any
significant deficiency or material weakness in the Issuer’s controls or
recommending any corrective action on the part of the Issuer or any subsidiary
of the Issuer. The Issuer does not have any contingent liabilities.
3
(xiii) The
execution and delivery of this Agreement by the Issuer and the consummation
of
the transactions contemplated by this Agreement will not result in any material
violation of the Issuer’s certificate of incorporation or by-laws, or any
applicable Law.
(b)
SEC
Documents.
The
Issuer’s Common Stock is registered pursuant to Section 12(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). The Issuer is current
with its reporting obligations under the Exchange Act. The Common Stock is
listed on the OTC Bulletin Board. The Issuer has received no notice, either
oral
or written, with respect to the continued listing of the Common Stock on the
OTC
Bulletin Board. The Issuer has not provided to any investor any information
that, according to applicable law, rule or regulation, should have been
disclosed publicly prior to the date hereof by the Issuer, but which has not
been so disclosed. As of their respective dates, the Issuer’s filings made
pursuant to the Exchange Act (the “Issuer SEC Documents”) complied in all
material respects with the requirements of the Exchange Act, and rules and
regulations of the SEC promulgated thereunder and the Issuer SEC Documents
did
not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.
3.
Representations
and Warranties of Shareholder.
The
Shareholder hereby represents, warrants, covenants and agrees as
follows:
(a)
The Shareholder understands that the offer and sale of the Shares
is being made only by means of this Agreement and understands that the Issuer
has not authorized the use of, and the Shareholder confirms that he or she
is
not relying upon, any other information, written or oral, other than material
contained in this Agreement. The Shareholder is aware that the purchase of
the
Shares involves a high degree of risk and that the Shareholder may sustain,
and
has the financial ability to sustain, the loss of his entire investment,
understands that no assurance can be given that the Issuer will be profitable
in
the future, that there is no public market for the Common Stock, and the Issuer
can give no assurance that there will ever be a public market for the Common
Stock. Furthermore, in subscribing for the Shares, the Shareholder acknowledges
it is not relying upon any projections or any statements of any kind relating
to
future revenue, earnings, operations or cash flow in making an investment in
the
Shares.
(b)
The Shareholder is not acquiring the Shares as a result of, and
will not itself engage in, any "directed selling efforts" (as defined in
Regulation S) in the United States in respect of the Shares which would include
any activities undertaken for the purpose of, or that could reasonably be
expected to have the effect of, conditioning the market in the United States
for
the resale of the Shares; provided, however, that the Shareholder may sell
or
otherwise dispose of the Shares pursuant to registration thereof under the
Securities Act and any applicable state and provincial securities laws or under
an exemption from such registration requirements;
4
(c)
The Shareholder acknowledges and agrees that none of the Shares
have been registered under the Securities Act, or under any state securities
or
"blue sky" laws of any state of the United States, and, unless so registered,
may not be offered or sold in the United States or, directly or indirectly,
to
U.S. Persons, as that term is defined in Regulation S, except in accordance
with
the provisions of Regulation S, pursuant to an effective registration statement
under the Securities Act, or pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act and in
each
case in accordance with applicable state and provincial securities
laws;
(d)
The Shareholder acknowledges and agrees that the Issuer will refuse
to register any transfer of the Shares not made in accordance with the
provisions of Regulation S, pursuant to an effective registration statement
under the Securities Act or pursuant to an available exemption from the
registration requirements of the Securities Act and in accordance with
applicable state and provincial securities laws;
(e)
The Shareholder represents and warrants that no broker or finder
was involved directly or indirectly in connection with his or her purchase
of
the Shares pursuant to this Agreement. The Shareholder shall indemnify the
Issuer and hold it harmless from and against any manner of loss, liability,
damage or expense, including fees and expenses of counsel, resulting from a
breach of the Shareholder’s warranty contained in this Paragraph
3(e).
(f)
The Shareholder understands that he or she has no registration
rights with respect to the Shares.
(g)
Neither the Shareholder nor any of the Designees is a citizen or
resident of the United States.
(h)
The
Shareholder is acquiring the Shares for investment only and not with a view
to
resale or distribution and, in particular, it has no intention to distribute
either directly or indirectly any of the Shares in the United States or to
U.S.
Persons;
(i)
The
Shareholder is acquiring the Shares as principal for the Shareholder’s own
account (except for the circumstances outlined in paragraph 3(k)), for
investment purposes only, and not with a view to, or for, resale, distribution
or fractionalization thereof, in whole or in part, and no other person has
a
direct or indirect beneficial interest in such Shares;
(j)
The
Shareholder is not an underwriter of, or dealer in, the common stock of the
Issuer, nor is the Shareholder participating, pursuant to a contractual
agreement or otherwise, in the distribution of the Shares;
(k)
If
the Shareholder is acquiring the Shares as a fiduciary or agent for one or
more
investor accounts, the investor accounts for which the Shareholder acts as
a
fiduciary or agent satisfy the definition of an “Accredited Investor,” as the
term is defined in Regulation D promulgated by the SEC under the Securities
Act
or satisfies the requirements of Regulation S.
(l)
The
Shareholder is not aware of any advertisement of any of the Shares;
and
5
(m)
No
person has made to the Shareholder any written or oral
representations:
(i) that
any
person will resell or repurchase any of the Shares;
(ii) that
any
person will refund the purchase price of any of the Shares;
(iii) as
to the
future price or value of any of the Shares; or
(iv) that
any
of the Shares will be listed and posted for trading on any stock exchange or
automated dealer quotation system or that application has been made to list
and
post any of the Shares of the Issuer on any stock exchange or automated dealer
quotation system.
(n) The
Shareholder represents he has such knowledge and experience in financial and
business matters as to enable the Shareholder to understand the nature and
extent of the risks involved in purchasing the Shares. The Shareholder is fully
aware that such investments can and sometimes do result in the loss of the
entire investment. The Shareholder has engaged his or her own counsel and
accountants to the extent that the Shareholder deems it necessary.
(o) Moral
Star is a corporation duly organized, validly existing and in good standing
under the laws of the British Virgin Islands. Moral Star has the full power
and
authority to own all its assets and to conduct its business as and where its
business is presently conducted.
(p) The
authorized capital stock of Moral Star consists of 50,000 shares of capital
stock, all of which are outstanding and owned by the Shareholder. All the issued
and outstanding capital stock of Moral Star is duly authorized, validly issued,
fully paid and nonassessable.
4.
Conditions
to the Obligation of Shareholder and the Issuer.
The
obligations of Shareholder and the Issuer under this Agreement are subject
to
the following conditions:
(a) the
completion of the sale of preferred stock and warrants to an investor group
pursuant to an agreement between the Issuer and the investor contemporaneously
with the exchange contemplated by this Agreement;
(b) the
entry
into a buy-back agreement with Xxxxxxxxxxx Xxxxxx and Xxxxxxx Xxxxxx for the
purchase of 50,001 shares of the Company’s common stock for $625,000, which
shall is paid from the proceeds of the sale of preferred stock and warrants.
(c) the
issuance of 33,517 shares of the Company’s common stock to Belmont Partners
LLC.
(d) The
confirmation of the cancellation of all outstanding shares of all classes or
series of preferred stock.
(e) the
delivery by the Issuer of a legal opinion from counsel to the Company in a
form
reasonably satisfactory to the Shareholder that: (i) the Shares, when
issued pursuant to this Agreement, will be duly and validly authorized and
issued, fully paid and non-assessable and (ii) all of the outstanding shares
of
capital stock of the Issuer have been duly and validly authorized and issued,
fully paid and non-assessable and were either (x) registered pursuant to the
Securities Act of 1933, as amended, or (y) were issued in transactions exempt
from the registration requirements of such Act pursuant to Section 4(2) and/or
Rule 505 or 506 of the Securities and Exchange Commission under such Act;
and
6
(f) the
delivery by each Designee of a Regulation S letter in the form of Exhibit A
hereto; provided, that if any such letter shall not have been received on the
closing, the Issuer’s obligation to issue the shares shall be deferred until
receipt of such letter.
5.
Miscellaneous.
(a)
This Agreement constitutes the entire agreement between the parties
relating to the subject matter hereof, superseding any and all prior or
contemporaneous oral and prior written agreements, understandings and letters
of
intent. This Agreement may not be modified or amended nor may any right be
waived except by a writing that expressly refers to this Agreement, states
that
it is a modification, amendment or waiver and is signed by all parties with
respect to a modification or amendment or the party granting the waiver with
respect to a waiver. No course of conduct or dealing and no trade custom or
usage shall modify any provisions of this Agreement.
(b)
This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to
be
performed entirely within such State.
(c)
This Agreement shall be binding upon and inure to the benefit of
the parties hereto, and their respective successors and permitted
assigns.
(d)
This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together shall constitute
one
and the same document.
(e)
The
various representations, warranties, and covenants set forth in this Agreement
or in any other writing delivered in connection therewith shall survive the
issuance of the Shares.
[Signatures
on following page.]
7
IN
WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed as of the
date
first above written.
|
|
|
By: |
/s/
Xxxxxxx Xxxxxx
|
|
Xxxxxxx
Xxxxxx, Chief Executive Officer
|
/s/
Jibrin
Xxxx Xxxxxx Xx Xxxxxx
|
||
Jibrin
Xxxx Xxxxxx Xx Xxxxxx, as Trustee
|
8
Schedule
I
Name
|
No.
of Shares*
|
|||
Jibrin
Xxxx Xxxxxx AlJibrin, Trustee of Xx Xxxxxx Stock Trust
|
7,017,620
|
|||
XX
Xxx-Hong
|
350,250
|
|||
XX
Xxx-Qin
|
265,780
|
|||
XX
Xxx
|
350,325
|
|||
XXXXX
Xxx-E
|
475,000
|
|||
XX
Xxx-Xxx
|
475,000
|
|||
ZUO
Su-Hua
|
322,350
|
|||
XXXXX
Xxxx-Xxxxx
|
333,320
|
|||
XX
Xxx-Xxxx
|
100,000
|
|||
ZHANG
Ning
|
100,000
|
|||
XXX
Xx-Xxxxx
|
100,000
|
|||
XXX
Xxxx-Xxxx
|
100,000
|
|||
YU,Ze
Shi
|
50,000
|
|||
XX,
Xxx
|
140,000
|
|||
ZHAO,
Xx Xxxx
|
70,000
|
|||
Xxxxxx
International Capital Investment Limited
|
315,002
|
|||
Total
|
10,564,647
|
* The
number of shares reflects the 3.2-for-one stock distribution.
9
Exhibit
A
In
connection with the issuance to the undersigned of shares of common stock of
Capital Solutions I, Inc. (the “Issuer”) pursuant to the Share Exchange
Agreement (the “Agreement”), dated as of December 3, 2007, the Issuer and Jibrin
Xxxx Xxxxxx Xx Xxxxxx, trustee of the Xx Xxxxxx Stock Trust, the undersigned
hereby represents and warrants:
(a)
I am not acquiring the shares of common stock of the Issuer (the
“Shares”) as a result of, and will not itself engage in, any "directed selling
efforts" (as defined in Regulation S (“Regulations S”) promulgated by the
Securities and Exchange Commission (“SEC”) under the Securities Act of 1933, as
amended (the “Securities Act”)) in the United States in respect of the Shares
which would include any activities undertaken for the purpose of, or that could
reasonably be expected to have the effect of, conditioning the market in the
United States for the resale of the Shares; provided, however, that I may sell
or otherwise dispose of the Shares pursuant to registration thereof under the
Securities Act and any applicable state and provincial securities laws or under
an exemption from such registration requirements;
(b)
I acknowledge and agree that none of the Shares have been
registered under the Securities Act, or under any state securities or "blue
sky"
laws of any state of the United States, and, unless so registered, may not
be
offered or sold in the United States or, directly or indirectly, to U.S.
Persons, as that term is defined in Regulation S, except in accordance with
the
provisions of Regulation S, pursuant to an effective registration statement
under the Securities Act, or pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act and in
each
case in accordance with applicable state and provincial securities
laws;
(c)
I acknowledge and agree that the Issuer will refuse to register any
transfer of the Shares not made in accordance with the provisions of Regulation
S, pursuant to an effective registration statement under the Securities Act
or
pursuant to an available exemption from the registration requirements of the
Securities Act and in accordance with applicable state and provincial securities
laws;
(d)
No broker or finder was involved directly or indirectly in
connection with my acquisition of the Shares pursuant to the Agreement. I shall
indemnify the Issuer and hold it harmless from and against any manner of loss,
liability, damage or expense, including fees and expenses of counsel, resulting
from a breach of the warranty contained in this Paragraph (d).
(e)
I understand that I have no registration rights with respect to the
Shares.
(f)
I am resident of the country set forth below;
(g)
I am
acquiring the Shares for investment only and not with a view to resale or
distribution and, in particular, I have no intention to distribute either
directly or indirectly any of the Shares in the United States or to U.S.
Persons;
(h)
I am
acquiring the Shares as principal for my own account (except for the
circumstances outlined in paragraph (j)), for investment purposes only, and
not
with a view to, or for, resale, distribution or fractionalization thereof,
in
whole or in part, and no other person has a direct or indirect beneficial
interest in such Shares;
10
(i)
I am
not an underwriter of, or dealer in, the common shares of the Issuer, nor am
I
participating, pursuant to a contractual agreement or otherwise, in the
distribution of the Shares;
(j)
If I
am acquiring the Shares as a fiduciary or agent for one or more investor
accounts:
(i) I
have
sole investment discretion with respect to each such account and it has full
power to make the foregoing acknowledgements, representations and agreements
on
behalf of such account, and
(ii) the
investor accounts for which I act as a fiduciary or agent satisfy the definition
of an “Accredited Investor”, as the term is defined in Regulation D promulgated
the SEC under the Securities Act;
(m)
I am
not aware of any advertisement of any of the Shares; and
(n)
No
person has made to me any written or oral representations:
(i) |
that
any person will resell or repurchase any of the
Shares;
|
(ii) |
that
any person will refund the purchase price of any of the
Shares;
|
(iii) |
as
to the future price or value of any of the Shares;
or
|
(iv) |
that
any of the Shares will be listed and posted for trading on any stock
exchange or automated dealer quotation system or that application
has been
made to list and post any of the Shares of the Issuer on any stock
exchange or automated dealer quotation
system.
|
(o)
I am
an accredited investor within the meaning of Rule 501 under the Securities
Act
and I understand the meaning of the term “accredited investor.” I further
represent that I have such knowledge and experience in financial and business
matters as to enable me to understand the nature and extent of the risks
involved in acquiring the Shares. I am fully aware that such investments can
and
sometimes do result in the loss of the entire investment. I have engaged my
own
counsel and accountants to the extent that I deem it necessary.
[Name
of stockholder]
|
|||
[Address] |
|||
[Signature]
|
|||
[Country
of Residence]
|
[Title,
if applicable]
|
11
Exhibit
B
Accredited
investors
A
Shareholder who meets any one of the following tests is an accredited
investor:
(a)
The Shareholder is an individual who has a net worth, or joint net worth
with the Shareholder’s spouse, of at least $1,000,000.
(b)
The Shareholder is an individual who had individual income of more than
$200,000 (or $300,000 jointly with the Shareholder’s spouse) for the past two
years, and the Shareholder has a reasonable expectation of having income of
at
least $200,000 (or $300,000 jointly with the Shareholder’s spouse) for the
current year.
(c)
The Shareholder is an officer or director of the Issuer.
(d)
The Shareholder is a 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.
(e)
The Shareholder is a broker or dealer registered pursuant to section 15
of the Securities Exchange Act of 1934.
(f)
The Shareholder is an insurance company as defined in section 2(13) of
the Securities
Act.
(g)
The Shareholder is an 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.
(h)
The Shareholder is a small Business Investment Company licensed by the
U.S. Small Business Administration under section 301(c) or (d) of the Small
Business Investment Act of 1958.
(i)
The Shareholder is an employee benefit plan within the meaning of Title I
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.
(j)
The Shareholder is a private business development company as defined in
section 202(a)(22) of the Investment Advisers Act of 1940.
(k)
The Shareholder is an 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.
12
(l)
The Shareholder is a 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 Rule
506(b)(2)(ii) of the Commission under the Securities Act.
(m)
The Shareholder is an entity in which all of the equity owners are
accredited investors (i.e., all of the equity owners meet one of the tests
for
an accredited investor).
If
an
individual Shareholder qualifies as an accredited investor, such individual
may
purchase the Shares in the name of his or her individual retirement account
(“XXX”).
13