STOCK PURCHASE AGREEMENT
THIS AGREEMENT (this “Agreement”),
entered
into as of the 10th
day of March, 2010, is made by and between Xxxxxxx Xxxxxx (the “Shareholder”) of
El Maniel International, Inc. (“EMLL”), and Co-Max
International Ltd, a BVI entity at 5-4, 4th
floor, Xxxxx 00/00X, Xxxxxx Xxxx Xxxx, Xxx Xxxxx Xxxxxx, Xxxxx Xxxxxx
(the “Buyer”).
Whereas, the
Shareholder desires to sell to the Buyer and the Buyer wishes to purchase and
acquire from the Shareholder an aggregate of Sixty Five (65,000,000) common
restricted shares (the “Shares”) of the common stock, par value $.0001, pursuant
to the terms and conditions of this Agreement.
Now, Therefore, in
consideration of the representations, warranties and agreements set forth
herein, the parties hereto hereby agree as follows:
ARTICLE 1
DEFINITIONS AND INTERPRETATION
1.1 Definitions.
In this Agreement the following terms will have the following
meanings:
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(a)
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“Agreement” means
this Stock Purchase Agreement;
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(b)
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“Closing” means the
completion, on the date hereof, of the transactions contemplated hereby in
accordance with Article 7 hereof;
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(c)
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“Place of Closing” means
the offices of Xxxxxx &
Xxxxxx, LLP, 00 Xxx. 0 Xxxxx, Xxxxx #000, Xxxxxxxxx, Xxx Xxxxxx 00000
or such other place as the Buyer and EMLL may mutually agree
upon;
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(d)
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“EMLL Accounts Payable and
Liabilities” means all accounts payable and liabilities of EMLL, on
a consolidated basis, due and owing or otherwise constituting a binding
obligation of EMLL and its subsidiaries (other than an EMLL Material
Contract) as of March 1st,
2010.
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(e)
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“EMLL Accounts
Receivable” means all accounts receivable and other debts owing to
EMLL, on a consolidated basis, as of March 1st
2010.
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(f)
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“EMLL Assets” means the
undertaking and all the property and assets of the EMLL Business of every
kind and description wheresoever situated including, without limitation,
EMLL Equipment, EMLL Inventory, EMLL Material Contracts, EMLL Accounts
Receivable, EMLL Cash, EMLL Intangible Assets and EMLL Goodwill, and all
credit cards, charge cards and banking cards issued to
EMLL;
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(g)
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“EMLL Bank Accounts”
means all of the bank accounts, lock boxes and safety deposit boxes of
EMLL and its subsidiaries or relating to the EMLL
Business.
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(h)
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“EMLL Business” means all
aspects of any business conducted by EMLL and its
subsidiaries;
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(i)
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“EMLL Cash” means all
cash on hand or on deposit to the credit of EMLL and its subsidiaries on
the date hereof;
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(j)
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“EMLL Common Shares”
means the shares of common stock in the capital of
EMLL;
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(k)
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“EMLL Debt to Related
Parties” means the debts owed by EMLL and its subsidiaries to any
affiliate, director or officer of
EMLL;
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(l)
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“EMLL Equipment” means
all machinery, equipment, furniture, and furnishings used in the EMLL
Business,
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(m)
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“EMLL Financial
Statements” means, collectively, the audited consolidated financial
statements of EMLL for the fiscal year ended September 30, 2009, and the
unaudited consolidated financial statements of EMLL for the three month
period ended December 31, 2009;
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(n)
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“EMLL Goodwill” means the
goodwill of the EMLL Business including the right to all corporate,
operating and trade names associated with the EMLL Business, or any
variations of such names as part of or in connection with the EMLL
Business, all books and records and other information relating to the EMLL
Business, all necessary licenses and authorizations and any other rights
used in connection with the EMLL
Business;
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(o)
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“EMLL Insurance Policies”
means the public liability insurance and insurance against loss or damage
to the EMLL Assets and the EMLL
Business;
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(p)
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“EMLL Intangible Assets”
means all of the intangible assets of EMLL and its subsidiaries,
including, without limitation, EMLL Goodwill, all trademarks, logos,
copyrights, designs, and other intellectual and industrial property of
EMLL and its subsidiaries;
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(q)
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“EMLL Inventory” means
all inventory and supplies of the EMLL Business as of March 1st,
2010;
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(r)
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“EMLL Material Contracts”
means the burden and benefit of and the right, title and interest of EMLL
and its subsidiaries in, to and under all trade and non-trade contracts,
engagements or commitments, whether written or oral, to which EMLL or its
subsidiaries are entitled whereunder EMLL or its subsidiaries are
obligated to pay or entitled to receive the sum of $750 or more including,
without limitation, any pension plans, profit sharing plans, bonus plans,
loan agreements, security agreements, indemnities and guarantees, any
agreements with employees, lessees, licensees, managers, accountants,
suppliers, agents, distributors, officers, directors, attorneys or others
which cannot be terminated without liability on not more than one month's
notice; and
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(s)
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“Shares” shall mean the
65,000,000 shares of EMLL Common Stock to be sold to Buyer by the
Shareholder hereunder.
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Any other terms defined within the text
of this Agreement will have the meanings so ascribed to them.
1.2 Captions and Section Numbers.
The headings and section references in this Agreement are for convenience of
reference only and do not form a part of this Agreement and are not intended to
interpret, define or limit the scope, extent or intent of this Agreement or any
provision thereof.
1.3 Section References and
Schedules. Any
reference to a particular “Article”, “section”, “paragraph”, “clause” or other
subdivision is to the particular Article, section, clause or other subdivision
of this Agreement and any reference to a Schedule by letter will mean the
appropriate Schedule attached to this Agreement and by such reference the
appropriate Schedule is incorporated into and made part of this
Agreement.
2
1.4 Severability of Clauses. If
any part of this Agreement is declared or held to be invalid for any reason,
such invalidity will not affect the validity of the remainder which will
continue in full force and effect and be construed as if this Agreement had been
executed without the invalid portion, and it is hereby declared the intention of
the parties that this Agreement would have been executed without reference to
any portion which may, for any reason, be hereafter declared or held to be
invalid.
ARTICLE
2
PURCHASE
AND SALE
2.1 Issuance of the
Shares. Subject to all of the terms and conditions of this
Agreement, the Shareholder does hereby sell, assign, transfer and convey to the
Buyer, and the Buyer does hereby purchase and accept from the Shareholder, the
Shares, free and clear of all encumbrances, liens, charges and
claims.
2.2 Purchase Price; Payment. The
purchase price for the Shares is $325,000.00 (Three Hundred Twenty Five Thousand
Dollars) (the “Purchase
Price”) and shall be paid by wire transfer of immediately available funds
or bank or certified check in accordance with this Agreement.
ARTICLE
3
SELLERS’
REPRESENTATIONS AND WARRANTIES
3.1 Representations and
Warranties. The Shareholder and EMLL jointly and severally make the
representations and warranties set forth below and intend and acknowledge that
the Buyer will rely thereon in entering into this Agreement and in approving and
completing the transactions contemplated hereby. Any schedules described in or
contemplated by such representations and warranties shall be prepared both as of
the date of this Agreement and as of the date of the Closing.
The
Seller
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(a)
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Power and
Capacity. The Shareholder has the power, authority and
capacity to enter into this Agreement and to consummate the transactions
contemplated hereby. This Agreement constitutes the
Shareholder’s valid, legal and binding obligation and is enforceable
against the Shareholder in accordance with its terms, subject, however, as
to enforcement, to bankruptcy, insolvency, fraudulent transfer, moratorium
and similar laws of general applicability relating to or affecting
creditors’ rights;
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(b)
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Legal Proceedings,
Etc. There is no legal,
equitable, administrative or arbitration action, suit, proceeding or known
investigation pending or threatened against or affecting the
Shareholder. There is no judgment, decree, injunction, rule or
order of any court, governmental department, commission, agency,
instrumentality or arbitrator outstanding against either party
constituting the Shareholder and there is no basis for any action, suit,
proceeding or investigation against the
Shareholder.
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(c)
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Ownership. The
Shareholder is the sole legal, beneficial and registered owner of the
Shares, free and clear of any liens, security interests, charges or other
encumbrances of any nature whatsoever. The Shares are validly
issued, fully paid and
non-assessable.
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3
EMLL
- Corporate Status and Capacity
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(d)
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Incorporation.
EMLL is a corporation duly incorporated and validly subsisting under the
laws of the State of Nevada, and is in good standing with the office of
the Secretary of State for the State of
Nevada;
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(e)
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Carrying on
Business. EMLL does not currently conduct any business
activity. EMLL is not required to register or otherwise be
qualified to carry on business in any foreign
jurisdiction;
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(f)
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Corporate
Capacity. EMLL has the corporate power, capacity and authority to
own the EMLL Assets;
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(g)
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Reporting Status;
Listing. EMLL is required to file current reports with the
Securities and Exchange Commission pursuant to section 12(g) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) and
EMLL’s Common Shares are quoted on the National Association of Securities
Dealers, Inc.’s Over-the-Counter Bulletin Board System (the “OTC Bulletin
Board”). EMLL has filed all reports required to be filed by it under the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for
the five years preceding the date hereof (or such shorter period as the
EMLL was required by law to file such material) (the foregoing materials
being collectively referred to herein as the “SEC Documents”) and is
current with respect to its Exchange Act filing requirements. As of
their respective dates, the SEC Documents complied in all material
respects with the requirements of the Securities Act of 1933, as amended
(the “Securities Act”) and the Exchange Act and the rules and regulations
of the Commission promulgated thereunder, and none of the SEC Documents,
when filed, contained any untrue statement of a material fact or omitted
to state a material fact required to be stated therein or necessary in
order to make the statement therein, in light of the circumstances under
which they were made, not misleading. All material agreements to
which EMLL is a party or to which the property or assets of EMLL are
subject have been appropriately filed as exhibits to the SEC Documents as
and to the extent required under the Exchange Act. The financial
statements of EMLL included in the SEC Documents comply in all material
respects with applicable accounting requirements and the rules and
regulations of the Commission with respect thereto as in effect at the
time of filing, were prepared in accordance with GAAP applied on a
consistent basis during the periods involved (except as may be indicated
in the notes thereto, or, in the case of unaudited statements, as
permitted by Form 10-Q of the Commission), and fairly present in all
material respects (subject in the case of unaudited statements, to normal,
recurring audit adjustments) the financial position of EMLL as at the
dates thereof and the results of its operations and cash flows for the
periods then ended. EMLL is not aware of any facts which
would make EMLL’s Common Stock ineligible for quotation on the OTC
Bulletin Board;
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4
EMLL
- Capitalization
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(h)
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Authorized
Capital. The authorized capital of EMLL consists of: (i)
110,000,000 shares of Common Stock, $.001 par value, of which 91,110,000
are presently issued and outstanding (65,000,000 restricted, 26,110,000
free trading). There are no other securities authorized, issued
or outstanding. There are no declared or accrued unpaid dividends with
respect to any shares of the EMLL’s Common Shares. EMLL has no
other capital stock authorized, issued or
outstanding.
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(i)
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No Option. No
person, firm or corporation has any agreement, warrant or option or any
right capable of becoming an agreement or option for the acquisition of
EMLL Common Shares or for the purchase, subscription or issuance of any
other securities of EMLL;
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EMLL
- Records and Financial Statements
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(j)
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Charter
Documents. The charter documents of EMLL have not been altered
since its incorporation, except as filed in the record books of
EMLL;
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(k)
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Corporate Minute
Books. The corporate minute books of EMLL and its subsidiaries are
complete and each of the minutes contained therein accurately reflect the
actions that were taken at a duly called and held meeting or by consent
without a meeting. All actions by EMLL and its subsidiaries which required
director or shareholder approval are reflected on the corporate minute
books of EMLL and its subsidiaries. EMLL and its subsidiaries are not in
violation or breach of, or in default with respect to, any term of their
respective Certificates of Incorporation (or other charter documents) or
by-laws.
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(l)
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EMLL Financial
Statements. The EMLL Financial Statements present fairly, in all
material respects, the assets and liabilities (whether accrued, absolute,
contingent or otherwise) of EMLL, on a consolidated basis, as of the
respective dates thereof, and the sales and earnings of the EMLL Business
during the periods covered thereby, in all material respects and have been
prepared in substantial accordance with generally accepted accounting
principles consistently applied;
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(m)
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EMLL Accounts Payable
and Liabilities. There are no liabilities, contingent or otherwise,
of EMLL or its subsidiaries which are not disclosed as part of this
Agreement or reflected in the EMLL Financial Statements and neither EMLL
nor its subsidiaries have guaranteed or agreed to guarantee any debt,
liability or other obligation of any person, firm or corporation. Without
limiting the generality of the foregoing, all accounts payable and
liabilities of EMLL and its subsidiaries as of March 1st
2010 have been fully divulged as part of this
transaction;
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(n)
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EMLL Accounts
Receivable. All the EMLL Accounts Receivable result from bona fide
business transactions and services actually rendered without, to the
knowledge and belief of EMLL, any claim by the obligor for set-off or
counterclaim;
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(o)
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EMLL Bank
Accounts. All of the EMLL Bank Accounts, their location, numbers
and the authorized signatories thereto shall be furnished prior to
closing;
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(p)
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No Debt to Related
Parties. EMLL will not be indebted to any affiliate, director or
officer of EMLL; and further the company warrants herein that all debts of
the company as noted in the last 10Q filing, shall be paid in full within
7 days of closing, and that all said debts shall be satisfied fully, with
no obligations inuring to Buyer.
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(q)
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No Related Party Debt
to EMLL. No director or officer or affiliate of EMLL is now
indebted to or under any financial obligation to EMLL or its subsidiaries
on any account whatsoever;
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(r)
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No Dividends.
No dividends or other distributions on any shares in the capital of EMLL
have been made, declared or authorized since the date of EMLL Financial
Statements;
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(s)
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No Payments. No
payments of any kind have been made or authorized since the date of the
EMLL Financial Statements to or on behalf of officers, directors,
shareholders or employees of EMLL or its subsidiaries or under any
management agreements with EMLL or its subsidiaries, except payments made
in the ordinary course of business;
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(t)
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No Pension
Plans. There are no pension, profit sharing, group insurance or
similar plans or other deferred compensation plans affecting EMLL or its
subsidiaries;
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(u)
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No Adverse
Events. Since the date of the EMLL Financial
Statements
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(i)
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there
has not been any adverse change in the financial position or condition of
EMLL, its subsidiaries, its liabilities or the EMLL Assets or any damage,
loss or other change in circumstances affecting EMLL, the EMLL Business or
the EMLL Assets or EMLL’s right to carry on the EMLL Business, other than
changes in the ordinary course of
business,
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(ii)
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there
has not been any damage, destruction, loss or other event (whether or not
covered by insurance) adversely affecting EMLL, its
subsidiaries, the EMLL Business or the EMLL
Assets,
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(iii)
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there
has not been any increase in the compensation payable or to become payable
by EMLL to any of EMLL’s officers, employees or agents or any bonus,
payment or arrangement made to or with any of
them,
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(iv)
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the
EMLL Business has been and continues to be carried on in the ordinary
course,
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(v)
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EMLL
has not waived or surrendered any right of material
value,
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(vi)
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Neither
EMLL nor its subsidiaries have discharged or satisfied or paid any lien or
encumbrance or obligation or liability other than current liabilities in
the ordinary course of business,
and
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(vii)
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no
capital expenditures in excess of $500 individually or $1,000 in total
have been authorized or made.
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EMLL
- Income Tax Matters
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(v)
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Tax Returns.
All tax returns and reports of EMLL and its subsidiaries required by law
to be filed have been filed and are true, complete and correct, and any
taxes payable in accordance with any return filed by EMLL and its
subsidiaries or in accordance with any notice of assessment or
reassessment issued by any taxing authority have been so
paid;
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(w)
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Current Taxes.
Adequate provisions have been made for taxes payable for the current
period for which tax returns are not yet required to be filed and there
are no agreements, waivers, or other arrangements providing for an
extension of time with respect to the filing of any tax return by, or
payment of, any tax, governmental charge or deficiency by EMLL or its
subsidiaries. There are no contingent tax liabilities or any
grounds which would prompt a reassessment including aggressive treatment
of income and expenses in filing earlier tax
returns;
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EMLL
- Applicable Laws and Legal Matters
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(x)
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Licenses. EMLL
and its subsidiaries hold all licenses and permits as may be required for
carrying on the EMLL Business in the manner in which it has heretofore
been carried on, which licenses and permits have been maintained and
continue to be in good standing except where the failure to obtain or
maintain such licenses or permits would not have an adverse effect on the
EMLL Business;
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(y)
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Applicable
Laws. Neither EMLL nor its subsidiaries have been charged with or
received notice of breach of any laws, ordinances, statutes, regulations,
by-laws, orders or decrees to which they are subject or which apply to
them the violation of which would have an adverse effect on the EMLL
Business (greater than $500), and to EMLL’s knowledge, neither EMLL nor
its subsidiaries are in breach of any laws, ordinances, statutes,
regulations, bylaws, orders or decrees the contravention of which would
result in an adverse impact on the EMLL
Business;
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(z)
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Pending or Threatened
Litigation. There is no litigation or administrative or
governmental proceeding pending or threatened against or relating to EMLL,
its subsidiaries, the EMLL Business, or any of the EMLL Assets nor does
EMLL have any knowledge after due investigation of any deliberate act or
omission of EMLL or its subsidiaries that would form any basis for any
such action or proceeding;
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(aa)
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No Bankruptcy.
Neither EMLL nor its subsidiaries have made any voluntary assignment or
proposal under applicable laws relating to insolvency and bankruptcy and
no bankruptcy petition has been filed or presented against EMLL or its
subsidiaries and no order has been made or a resolution passed for the
winding-up, dissolution or liquidation of EMLL or its
subsidiaries;
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(bb)
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Labor Matters.
Neither EMLL nor its subsidiaries are party to any collective agreement
relating to the EMLL Business with any labor union or other association of
employees and no part of the EMLL Business has been certified as a unit
appropriate for collective bargaining or, to the best knowledge of EMLL,
has made any attempt in that
regard;
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Execution
and Performance of Agreement
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(cc)
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Authorization and
Enforceability. The completion of the transactions contemplated
hereby, have been duly and validly authorized by all necessary corporate
action on the part of EMLL;
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(dd)
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No Violation or
Breach. The execution and performance of this Agreement will
not:
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7
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(i)
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violate
the charter documents of EMLL or result in any breach of, or default
under, any loan agreement, mortgage, deed of trust, or any other agreement
to which EMLL or its subsidiaries are
party,
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(ii)
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give
any person any right to terminate or cancel any agreement including,
without limitation, the EMLL Material Contracts, or any right or rights
enjoyed by EMLL or its
subsidiaries,
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(iii)
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result
in any alteration of EMLL’s or its subsidiaries’ obligations under any
agreement to which EMLL or its subsidiaries are party including, without
limitation, the EMLL Material
Contracts,
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(iv)
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result
in the creation or imposition of any lien, encumbrance or restriction of
any nature whatsoever in favor of a third party upon or against the EMLL
Assets,
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(v)
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result
in the imposition of any tax liability to EMLL or its subsidiaries
relating to the EMLL Assets, or
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(vi)
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violate
any court order or decree to which either EMLL or its subsidiaries are
subject;
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EMLL
Assets - Ownership and Condition
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(ee)
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Business
Assets. The EMLL Assets comprise all of the property and assets of
the EMLL Business, and no other person, firm or corporation owns any
assets used by EMLL in operating the EMLL Business, whether under a lease,
rental agreement or other arrangement, other than as disclosed as part of
this transaction;
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(ff)
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Title. EMLL is
the legal and beneficial owner of the EMLL Assets, free and clear of all
mortgages, liens, charges, pledges, security interests, encumbrances or
other claims whatsoever, save and except as disclosed as part of this
transaction;
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(gg)
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No Option. No
person, firm or corporation has any agreement or option or a right capable
of becoming an agreement for the purchase of any of the EMLL
Assets;
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(hh)
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EMLL Insurance
Policies. EMLL does not maintain public liability insurance nor
insurance against loss or damage to the EMLL Assets and the EMLL
Business;
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(ii)
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EMLL Material
Contracts. There are no EMLL Material Contracts other than those
disclosed as part of this
transaction;
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(jj)
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No Default.
There has not been any default in any obligation of EMLL or any other
party to be performed under any of the EMLL Material Contracts, each of
which is in good standing and in full force and effect and unamended, and
EMLL is not aware of any default in the obligations of any other party to
any of the EMLL Material Contracts;
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(kk)
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No Compensation on
Termination. There are no agreements, commitments or understandings
relating to severance pay or separation allowances on termination of
employment of any employee of EMLL or its subsidiaries. Neither EMLL nor
its subsidiaries are obliged to pay benefits or share profits with any
employee after termination of employment except as required by
law;
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8
EMLL
Assets - EMLL Equipment
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(ll)
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EMLL Equipment.
The EMLL Equipment has been maintained in a manner consistent with that of
a reasonably prudent owner and such equipment is in good working
condition;
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EMLL
Assets - EMLL Goodwill and Other Assets
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(mm)
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EMLL Goodwill.
EMLL and its subsidiaries do not carry on the EMLL Business under any
other business or trade names. EMLL does not have any knowledge of any
infringement by EMLL or its subsidiaries of any patent, trademarks,
copyright or trade secret;
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EMLL
Business
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(nn)
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Maintenance of
Business. Since the date of the EMLL Financial Statements, EMLL and
its subsidiaries have not entered into any agreement or commitment except
in the ordinary course and except as disclosed
herein;
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(oo)
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Subsidiaries.
EMLL does not own any subsidiaries and does not otherwise own, directly or
indirectly, any shares or interest in any other corporation, partnership,
joint venture or firm; and
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EMLL
- Shares
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(pp)
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Shares. The
Shares when delivered to the Buyer shall be validly issued and outstanding
as fully paid and non-assessable shares and the Shares shall be
transferable upon the books of EMLL, in all cases subject to the
provisions and restrictions of all applicable securities
laws.
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3.2 Survival. The representations and
warranties herein will be true at and as of the date hereof in all material
respects. Notwithstanding the completion of the transactions
contemplated hereby, the waiver of any condition contained herein (unless such
waiver expressly releases a party from any such representation or warranty) or
any investigation made by the Buyer, the representations and warranties made
herein shall survive the Closing and be effective for a period of twelve months
(12) months from the date hereof.
3.3 Indemnity. The Shareholder
agrees to indemnify and save harmless the Buyer from and against any and all
claims, demands, actions, suits, proceedings, assessments, judgments, damages,
costs, losses and expenses, including any payment made in good faith in
settlement of any claim (subject to the right of the Shareholders to defend any
such claim), resulting from the breach by him of any representation or warranty
made under this Agreement or from any misrepresentation in or omission from any
certificate or other instrument furnished or to be furnished by EMLL to the
Buyer hereunder.
ARTICLE
4
REPRESENTATIONS
AND WARRANTIES OF THE BUYER
4.1 Representations and
Warranties. The Buyer makes the representations and warranties set forth
below and intend and acknowledge that EMLL and the Shareholder will rely thereon
in entering into this Agreement and in approving and completing the transactions
contemplated hereby. Any schedules described in or contemplated by such
representations and warranties shall be prepared both as of the date of this
Agreement and as of the date of the Closing.
9
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(a)
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Power and
Capacity. The Buyer has the power, authority and capacity to enter
into this Agreement and to consummate the transactions contemplated
hereby. This Agreement constitutes the Buyer’s valid, legal and
binding obligation and is enforceable against it in accordance with its
terms, subject, however, as to enforcement, to bankruptcy, insolvency,
fraudulent transfer, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general principles of
equity, regardless of whether such enforceability is considered in equity
or at law;
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(b)
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No
Conflict. Neither the execution and delivery of this
Agreement by the Buyer, nor compliance with any of the provisions hereof,
nor the consummation of the transactions contemplated hereby, will: (a)
result in a default, or give rise to any right of termination,
cancellation or acceleration, under any term, condition or provision of
any contract or other instrument or obligation to which the Buyer is a
party or by which its assets may be bound; or (b) violate any order, writ,
injunction or decree applicable to the Buyer, or any of its properties or
assets.
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(c)
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Legal Proceedings,
Etc. There
is no legal, equitable, administrative or arbitration action, suit,
proceeding or known investigation pending or threatened against or
affecting the Buyer. There is no judgment, decree, injunction,
rule or order of any court, governmental department, commission, agency,
instrumentality or arbitrator outstanding against either party
constituting the Buyer and there is no basis for any action, suit,
proceeding or investigation against
Buyer.
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4.2 Survival. The representations and
warranties of the Buyer contained herein will be true at and as of Closing in
all material respects as though such representations and warranties were made as
of such time. Notwithstanding the completion of the transactions
contemplated hereby, the waiver of any condition contained herein (unless such
waiver expressly releases a party from any such representation or warranty) or
any investigation made by the Sellers, the representations and warranties of the
Buyer made herein shall survive the Closing and be effective for a period of
twelve (12) months from the date hereof.
ARTICLE
5
FURTHER
COVENANTS
5.1 Legend. The
Buyer agrees to the imprinting of the following legend on any certificates
representing the Shares:
“THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS. THESE SECURITIES ARE “RESTRICTED SECURITIES” WITHIN
THE MEANING OF RULE 144(3) OF THE SECURITIES ACT AND MAY NOT BE RESOLD PUBLICLY
UNDER RULE 144 UNTIL CERTAIN HOLDING PERIOD REQUIREMENTS ARE MET.”
5.2 Expenses of the
Parties. Except as otherwise expressly provided in this
Agreement, all expenses incurred by EMLL and the Shareholder in the preparation,
negotiation, authorization and consummation of this Agreement and the
transactions contemplated hereby, including all fees and expenses of agents,
representatives, counsel and accountants, shall be borne solely by the
respective parties.
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5.3 Further
Assurances. Each party shall cooperate with the other, take
such further action and execute and deliver such further documents as may be
reasonably requested by any other party in order to carry out the terms and
purposes of this Agreement.
ARTICLE
6
CONDITIONS
PRECEDENT
6.1 Conditions Precedent in favor of EMLL
and the Shareholder. The obligations of EMLL and the Shareholder to carry
out the transactions contemplated hereby are subject to the fulfillment of each
of the following conditions precedent on or before the Closing:
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(a)
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all
documents or copies of documents required to be executed and delivered to
EMLL hereunder will have been so executed and
delivered;
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(b)
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all
of the terms, covenants and conditions of this Agreement to be complied
with or performed by the Buyer at or prior to the Closing will have been
complied with or performed; and
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6.2 Waiver by EMLL and the
Shareholder. The conditions precedent set out in the preceding section
are inserted for the exclusive benefit of EMLL and the Shareholder and any such
condition may be waived in whole or in part by EMLL or the Shareholder at or
prior to Closing by delivering to the Buyer a written waiver to that effect
signed by EMLL or the Shareholder, as the case may be. In the event that the
conditions precedent set out in the preceding section are not satisfied on or
before the Closing, the Shareholder shall be released from all obligations under
this Agreement.
6.3 Conditions Precedent in Favor of the
Buyer. The obligation of the Buyer to carry out the transactions
contemplated hereby is subject to the fulfillment of each of the following
conditions precedent on or before the Closing:
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(a)
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all
documents or copies of documents required to be executed and delivered to
the EMLL or the Shareholder hereunder will have been so executed and
delivered;
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(b)
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EMLL,
its officers and directors and each Shareholder shall be current in their
respective filing obligations with the Securities and Exchange Commission
(it being understood that Schedule 13Ds and Forms 3 and 4 may be required
to be filed by such parties, as
applicable);
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(c)
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all
of the terms, covenants and conditions of this Agreement to be complied
with or performed by the Shareholder or EMLL at or prior to the Closing
will have been complied with or
performed;
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(d)
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EMLL
will have delivered the Shares, duly and validly issued, to the Buyer at
the Closing;
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(e)
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title
to the Shares will be free and clear of all mortgages, liens, charges,
pledges, security interests, encumbrances or other claims
whatsoever;
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(h)
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the
completion of the transfer of all assets and liabilities of EMLL on or
prior to the Closing will have been completed to the satisfaction of the
Buyer, which transfer shall reflected in the schedules provided to the
Buyer as of the date of the Closing;
and
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11
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(i)
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The
Buyer shall have received from EMLL’s counsel a legal opinion in form and
substance satisfactory to EMLL.
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6.4 Waiver by the Buyer. The
conditions precedent set out in the preceding section are inserted for the
exclusive benefit of the Buyer and any such condition may be waived in whole or
in part by the Buyer at or prior to the Closing by delivering to EMLL and
Shareholder a written waiver to that effect signed by the Buyer. In the event
that the conditions precedent set out in the preceding section are not satisfied
on or before the Closing the Buyer shall be released from all obligations under
this Agreement.
6.5 Confidentiality.
Notwithstanding any provision herein to the contrary, the parties hereto agree
that the existence and terms of this Agreement are confidential and that if this
Agreement is terminated pursuant to the preceding section the parties agree to
return to one another any and all financial, technical and business documents
delivered to the other party or parties in connection with the negotiation and
execution of this Agreement and shall keep the terms of this Agreement and all
information and documents received from the other party and the contents thereof
confidential and not utilize nor reveal or release same, provided, however, that
EMLL will be required to issue news releases regarding the execution and
consummation of this Agreement and file a Current Report on Form 8-K with the
Securities and Exchange Commission respecting the proposed transaction
contemplated hereby together with such other documents as are required to
maintain EMLL’s status as being current in all of its filings with the
Securities and Exchange Commission.
ARTICLE
7
CLOSING
7.1 Closing. The sale of the
Shares and the other transactions contemplated by this Agreement will be closed
at the Place of Closing in accordance with the closing procedure set out in this
Article.
7.2 Closing Deliveries of the Buyer.
On or before the Closing, the Buyer will deliver or cause to be delivered
to the Shareholder:
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(a)
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this
Agreement, duly executed by the
Buyer;
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(b)
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the
Purchase Price
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(c)
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all
reasonable consents or approvals required to be obtained by the Buyer for
the purposes of completing the transaction contemplated herein and
preserving and maintaining the interests of the Buyer;
and
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(d)
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such
other documents as EMLL may reasonably require to give effect to the terms
and intention of this Agreement.
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7.3 Closing Deliveries of the
Shareholder. On or before the Closing, EMLL and the Shareholder shall
deliver or cause to be delivered to the Buyer:
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(a)
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this
Agreement, duly executed by the
Shareholder;
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(b)
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share
certificates representing the
Shares;
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12
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(c)
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resignations
of all of the officers of EMLL as of the date
hereof;
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(d)
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updated
schedules of EMLL and the Shareholder, dated as of the date of the
Closing;
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(e)
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a
certified copy of a resolution of the directors of EMLL dated as of the
date hereof appointing the nominees of the Buyer as officers of the
Buyer;
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(f)
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an
undated resolution of the directors of EMLL appointing the nominee of the
Buyer listed below in Article 8 to the board of directors of
EMLL;
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(g)
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undated
resignation of the Director of
EMLL;
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(h)
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resignations
of all directors and officers of EMLL dated as of the date
hereof;
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(i)
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all
reasonable consents or approvals required to be obtained by the Buyer for
the purposes of completing the transaction contemplated herein and
preserving and maintaining the interests of the
Buyer;
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(j)
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the
legal opinion of EMLL’s counsel referred to in Section 6.3(j);
and
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(k)
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such
other documents as the Buyer may reasonably require to give effect to the
terms and intention of this
Agreement.
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ARTICLE
8
POST-CLOSING
MATTERS
Forthwith after the Closing, the
Buyer and the Shareholder agree to use all their best efforts to:
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(a)
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file with the
Securities and Exchange Commission a report on Form 14f-1 disclosing the
change in control of EMLL and, 10 days after such filing, date the
resolutions appointing to the board of directors of EMLL, Khoo Xxxxxx Xxx
and Xxx Xxxx Hing , and forthwith date and accept the resignation of the
Xxxxxxx Xxxxxx, immediate past Director of
EMLL;
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(b)
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file
a Form 8-K with the Securities and Exchange Commission disclosing the
terms of this Agreement;
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(c)
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file
reports on Forms 13D and 3 with the Securities and Exchange Commission
disclosing the acquisition of the Shares by the Buyer;
and
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(d)
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take
such steps are required to change the name of EMLL to as Buyer may
determine.
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ARTICLE
9
GENERAL
PROVISIONS
9.1 Notice. Any notice required or
permitted to be given by any party will be deemed to be given when in writing
and delivered to the address for notice of the intended recipient by personal
delivery, prepaid single certified or registered mail, or telecopier. Any notice
delivered by mail shall be deemed to have been received on the fourth business
day after and excluding the date of mailing, except in the event of a disruption
in regular postal service in which event such notice shall be deemed to be
delivered on the actual date of receipt. Any notice delivered personally or by
telecopier shall be deemed to have been received on the actual date of
delivery.
9.2 Addresses for Service. The
address for service of notice of each of the parties hereto is as
follows:
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(a)
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the
Shareholder:
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Xxxxxxx Xxxxxx
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(b)
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the
Buyer:
Co-Max
International Ltd.
5-4,
4th
floor, Xxxxx 00/00X,
Xxxxxx
Xxxx Xxxx, Xxx Xxxxx Xxxxxx,
Xxxxx
Xxxxxx 00000
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with a copy to:
Xxxxx
X. Xxxxx, Esq.
00000
Xxxxxxxx Xx
Xxxxxxxxx,
Xx 00000
(000)
000-0000
Xxxxx@XxxXxxxXxxxxxxxxx.xxx
9.3 Change of Address. Any party
may, by notice to the other parties change its address for notice to some other
address in North America and will so change its address for notice whenever the
existing address or notice ceases to be adequate for delivery by hand. A post
office box may not be used as an address for service.
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9.4 Amendment. This
Agreement may be amended only by a writing executed by each of the parties
hereto.
9.5 Entire Agreement. The
provisions contained herein constitute the entire agreement among the Buyer and
the Sellers respecting the subject matter hereof and supersede all previous
communications, representations and agreements, whether verbal or written, among
the Buyer and the Sellers with respect to the subject matter
hereof.
9.6 Enurement. This Agreement will
enure to the benefit of and be binding upon the parties hereto and their
respective heirs, executors, administrators, successors and permitted
assigns.
9.7 Assignment. This Agreement is
not assignable without the prior written consent of the parties
hereto.
9.8 Counterparts. This Agreement
may be executed in counterparts, each of which when executed by any party will
be deemed to be an original and all of which counterparts will together
constitute one and the same Agreement. Delivery of executed copies of this
Agreement by telecopier will constitute proper delivery, provided that
originally executed counterparts are delivered to the parties within a
reasonable time thereafter.
9.9 Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of the State of
New York applicable to agreements made and to be performed entirely within such
State. The parties agree to be subject to the exclusive jurisdiction
and venue of the state and federal courts located in the state of New
York.
[Remainder
of page intentionally left blank.]
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IN WITNESS WHEREOF the parties
have executed this Agreement effective as of the day and year first above
written.
Shareholder:
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/s/ Xxxxxxx Xxxxxx
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Xxxxxxx
Xxxxxx
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Buyer:
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_____________________
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Co-Max
International
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16