SHARE EXCHANGE AGREEMENT
THIS
SHARE EXCHANGE AGREEMENT, dated as of the 15th day of December, 2006 (the
“Agreement”),
by
and among SRKP 9, Inc., a Delaware corporation (the “Company”);
Times
Manufacture & E-commerce Corporation Limited, a British Virgin Islands
corporation (“Times”);
and
Xxxxx Xxx Shun (the “Shareholder”).
The
Company, Times and the Shareholder are collectively referred to herein as the
“Parties”.
WITNESSETH:
WHEREAS,
the Shareholder owns all of the issued and outstanding shares of the capital
of
Times (the “Times
Shares”).
WHEREAS,
the Company desires to acquire from Shareholder, and Shareholder desires to
sell
to the Company, the Times Shares in exchange for the issuance by the Company
of
an aggregate of 19,454,420 shares (the “Company
Shares”)
of
Company Common Stock to the Shareholder on the terms and conditions set forth
herein (the “Exchange”).
WHEREAS,
after giving effect to the Exchange, the Stock Split, and Equity Financing
as
described herein, there will be approximately 23,156,629 shares of Company
Common Stock and 2,325,581 shares of Series A Convertible Preferred Stock
issued and outstanding.
WHEREAS,
the parties intend, by executing this Agreement, to implement a tax-deferred
exchange of property governed by Xxxxxxx 000 xx xxx Xxxxxx Xxxxxx Internal
Revenue Code of 1986, as amended (the “Code”).
NOW,
THEREFORE, in consideration, of the promises and of the mutual representations,
warranties and agreements set forth herein, the parties hereto agree as
follows:
ARTICLE
I
THE
EXCHANGE
1.1 The
Exchange. Subject
to the terms and conditions of this Agreement, on the Closing Date (as
hereinafter defined):
(a) the
Company shall issue and deliver to the Shareholder 19,454,420 authorized
but
unissued shares of Company Common Stock, and
(b) the
Shareholder agrees to deliver to the Company duly endorsed certificates
representing the Times Shares.
1.2 Time
and Place of Closing. The
closing of the transactions contemplated hereby (the “Closing”)
shall
take place at the offices of Xxxxxxxxxxx & Xxxxxxxx Xxxxxxxxx Xxxxxx LLP on
or before December 31, 2006 (the “Closing
Date”)
at
6:00 p.m. Pacific Time, or at such place and time as mutually agreed upon
by the
parties hereto.
1.3 Effective
Time. The
Exchange shall become effective (the “Effective
Time”)
at
such time as all of the conditions to set forth in Article VII hereof have
been
satisfied or waived by the Parties hereto.
1.4 Tax
Consequences. It
is
intended by the parties hereto that for United States income tax purposes,
the
contribution and transfer of the Times Shares by the Shareholder to the Company
in exchange for Company Shares constitutes a tax-deferred exchange within
the
meaning of Section 351 of the Code.
ARTICLE
II
REPRESENTATIONS
AND WARRANTIES OF THE
COMPANY
The
Company represents and warrants to Times and the Shareholder that now and/or
as
of the Closing:
2.1 Due
Organization and Qualification; Due Authorization.
(a) The
Company is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware, with full corporate power
and
authority to own, lease and operate its respective business and properties
and
to carry on its business in the places and in the manner as presently conducted
or proposed to be conducted. The Company is in good standing as a foreign
corporation in each jurisdiction in which the properties owned, leased or
operated, or the business conducted, by it requires such qualification except
for any such failure, which when taken together with all other failures,
is not
likely to have a material adverse effect on the business of the
Company.
(b) The
Company does not own, directly or indirectly, any capital stock, equity or
interest in any corporation, firm, partnership, joint venture or other
entity.
(c) The
Company has all requisite corporate power and authority to execute and deliver
this Agreement, and to consummate the transactions contemplated hereby and
thereby. The Company has taken all corporate action necessary for the execution
and delivery of this Agreement and the consummation of the transactions
contemplated hereby, and this Agreement constitutes the valid and binding
obligation of the Company, enforceable against the Company in accordance
with
its terms, except as may be affected by bankruptcy, insolvency, moratoria
or
other similar laws affecting the enforcement of creditors’ rights generally and
subject to the qualification that the availability of equitable remedies
is
subject to the discretion of the court before which any proceeding therefore
may
be brought, equitable remedies is subject to the discretion of the court
before
which any proceeding therefore may be brought.
2.2 No
Conflicts or Defaults. The
execution and delivery of this Agreement by the Company and the consummation
of
the transactions contemplated hereby do not and shall not (a) contravene
the
Certificate of Incorporation or By-laws of the Company or (b) with or without
the giving of notice or the passage of time (i) violate, conflict with, or
result in a breach of, or a default or loss of rights under, any material
covenant, agreement, mortgage, indenture, lease, instrument, permit or license
to which the Company is a party or by which the Company is bound, or any
judgment, order or decree, or any law, rule or regulation to which the Company
is subject, (ii) result in the creation of, or give any party the right to
create, any lien, charge, encumbrance or any other right or adverse interest
(“Liens”)
upon
any of the assets of the Company, (iii) terminate or give any party the right
to
terminate, amend, abandon or refuse to perform, any material agreement,
arrangement or commitment to which the Company is a party or by which the
Company’s assets are bound, or (iv) accelerate or modify, or give any party the
right to accelerate or modify, the time within which, or the terms under
which,
the Company is to perform any duties or obligations or receive any rights
or
benefits under any material agreement, arrangement or commitment to which
it is
a party.
2
2.3 Capitalization. The
authorized capital stock of the Company immediately prior to giving effect
to
the transactions contemplated hereby consists of 110,000,000 shares of which
100,000,000 have been designated as Company Common Stock $.0001 par value
and
10,000,000 shares have been designed as preferred stock, $.0001 par value
(“Preferred
Stock”).
As of
the date hereof and after giving effect to the Stock Split referenced herein,
there are 3,702,209, shares of Company Common Stock issued and outstanding
and
no shares of Preferred Stock outstanding. All of the outstanding shares of
Company Common Stock are, and the Company Shares when issued in accordance
with
the terms hereof, will be, duly authorized, validly issued, fully paid and
nonassessable, and have not been or, with respect to the Company Shares will
not
be issued in violation of any preemptive right of stockholders. There is
no
outstanding voting trust agreement or other contract, agreement, arrangement,
option, warrant, call, commitment or other right of any character obligating
or
entitling the Company to issue, sell, redeem or repurchase any of its
securities, and there is no outstanding security of any kind convertible
into or
exchangeable for Company Common Stock. The Company has not granted registration
rights to any person.
2.4 Financial
Statements. The
Company has provided Times and the Shareholder copies of the (i) balance
sheet
of the Company at February 28, 2006, and the related statements of
operations, stockholders’ equity (deficit) and cash flows for the period from
January 3, 2006 (inception) to February 28, 2006, including the notes
thereto, as audited by X.X. Xxxxxxx, PC, independent registered public
accounting firm and (ii) balance sheet of the Company at September 30, 2006,
and
the related statements of operations, and cash flows for the three month
period
then ended (the “Financial
Statements”).
The
Financial Statements, together with the notes thereto, have been prepared
in
accordance with U.S. generally accepted accounting principles applied on
a basis
consistent throughout all periods presented. The Financial Statements present
fairly the financial position of the Company as of the dates and for the
periods
indicated. The books of account and other financial records of the Company
have
been maintained in accordance with good business practices.
2.5 No
Assets or Liabilities. Except
as
set forth on the Financial Statements, the Company does not have any (a)
material assets of any kind or (b) material liabilities or obligations, whether
secured or unsecured, accrued, determined, absolute or contingent, asserted
or
unasserted or otherwise.
3
2.6 Taxes. The
Company has filed all United States federal, state, county and local returns
and
reports which were required to be filed on or prior to the date hereof in
respect of all income, withholding, franchise, payroll, excise, property,
sales,
use, value-added or other taxes or levies, imposts, duties, license and
registration fees, charges, assessments or withholdings of any nature whatsoever
(together, “Taxes”),
and
has paid all Taxes (and any related penalties, fines and interest) which
have
become due pursuant to such returns or reports or pursuant to any assessment
which has become payable, or, to the extent its liability for any Taxes (and
any
related penalties, fines and interest) has not been fully discharged, the
same
have been properly reflected as a liability on the books and records of the
Company and adequate reserves therefore have been established.
2.7 Indebtedness;
Contracts; No Defaults. The
Company has no material instruments, agreements, indentures, mortgages,
guarantees, notes, commitments, accommodations, letters of credit or other
arrangements or understandings, whether written or oral, to which the Company
is
a parry.
2.8 Real
Property. The
Company does not own or lease any real property.
2.9 Compliance
with Law. The
Company is in compliance with all applicable federal, state, local and
foreign
laws and regulations relating to the protection of the environment and
human
health. There are no claims, notices, actions, suits, hearings, investigations,
inquiries or proceedings pending or, to the knowledge of the Company, threatened
against the Company that are based on or related to any environmental matters
or
the failure to have any required environmental permits, and there are no
past or
present conditions that the Company has reason to believe are likely to
give
rise to any material liability or other obligations of the Company under
any
environmental laws.
2.10 Permits
and Licenses. The
Company has all certificates of occupancy, rights, permits, certificates,
licenses, franchises, approvals and other authorizations as are reasonably
necessary to conduct its respective business and to own, lease, use, operate
and
occupy its assets, at the places and in the manner now conducted and operated,
except those the absence of which would not materially adversely affect
its
respective business.
2.11 Litigation. There
is
no claim, dispute, action, suit, proceeding or investigation pending or,
to the
knowledge of the Company, threatened, against or affecting the business
of the
Company, or challenging the validity or propriety of the transactions
contemplated by this Agreement, at law or in equity or admiralty or before
any
federal, state, local, foreign or other governmental authority, board,
agency,
commission or instrumentality, nor to the knowledge of the Company, has
any such
claim, dispute, action, suit, proceeding or investigation been pending
or
threatened, during the twelve month period preceding the date hereof. There
is
no outstanding judgment, order, writ, ruling, injunction, stipulation or
decree
of any court, arbitrator or federal, state, local, foreign or other governmental
authority, board, agency, commission or instrumentality, against or materially
affecting the business of the Company. The Company has not received any
written
or verbal inquiry from any federal, state, local, foreign or other governmental
authority, board, agency, commission or instrumentality concerning the
possible
violation of any law, rule or regulation or any matter disclosed in respect
of
its business.
4
2.12 Insurance. The
Company does not currently maintain any form of insurance.
2.13 Patents;
Trademarks and Intellectual Property Rights. The
Company does not own or possesses any patents, trademarks, service marks,
trade
names, copyrights, trade secrets, licenses, information, Internet web site(s)
or
proprietary rights of any nature.
2.14 Securities
Law Compliance. The
Company has complied with all of the applicable requirements of the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”)
and
the Securities Act of 1933, as amended (the “Securities
Act”),
and
has complied with all applicable blue sky laws.
2.15 Conflict
of Interest. Conflict
of Interest. The
Company acknowledges that it is aware and understands the facts and
circumstances of the Conflicts of Interest, as defined in Section 3.7,
that may,
individually and in the aggregate, create a conflict of interest. The Company
hereby waives each and all of the Conflicts of Interest, in addition to
any
other conflicts of interest that may arise may exist or arise by virtue
of the
Conflicts of Interest and acknowledges that it has carefully read this
Agreement, that it is consistent with the terms previously negotiated by
the
parties, and understands that it is free at any time to obtain independent
counsel for further guidance.
ARTICLE
III
REPRESENTATIONS
AND WARRANTIES OF TIMES
Times
and
the Shareholder severally represent and warrant to the Company that now
and/or
as of the Closing:
3.1 Due
Organization and Qualification; Subsidiaries, Due Authorization.
(a) Times
is
a corporation duly incorporated, validly existing and in good standing
under the
laws of the British Virgin Islands, with full corporate power and authority
to
own, lease and operate its business and properties and to carry on its
business
in the places and in the manner as presently conducted or proposed to be
conducted. Times is in good standing as a foreign corporation in each
jurisdiction in which the properties owned, leased or operated, or the
business
conducted, by it requires such qualification except for any such failure,
which
when taken together with all other failures, is not likely to have a material
adverse effect on the business of Times.
(b) Times
does not own, directly or indirectly, any capital stock, equity or interest
in
any corporation, firm, partnership, joint venture or other entity, other
than
Times
Manufacturing and E-commerce Corporation Limited, a British Virgin Islands
corporation, which is the 100% owner of Xxxxxx Win International Enterprise
Ltd., Goldcome Industrial Ltd., Citibond Industrial Ltd., and Megamooch
International Ltd., each of which is a Hong Kong corporation, and Citibond
Design Ltd., TME Enterprise Ltd., and Megamooch Online Ltd., each of which
is a
British Virgin Islands corporation (the “Subsidiaries”).
Each
of the Subsidiaries is wholly owned by Times, free and clear of all liens.
There
is no contract, agreement, arrangement, option, warrant, call, commitment
or
other right of any character obligating or entitling Times to issue, sell,
redeem or repurchase any of its securities, and there is no outstanding
security
of any kind convertible into or exchangeable for securities of Times or
the
Subsidiaries.
5
(c) Times
has
all requisite power and authority to execute and deliver this Agreement,
and to
consummate the transactions contemplated hereby and thereby. Times has
taken all
corporate action necessary for the execution and delivery of this Agreement
and
the consummation of the transactions contemplated hereby, and this Agreement
constitutes the valid and binding obligation of Times, enforceable against
Times
in accordance with its terms, except as may be affected by bankruptcy,
insolvency, moratoria or other similar laws affecting the enforcement of
creditors’ rights generally and subject to the qualification that the
availability of equitable remedies is subject to the discretion of the
court
before which any proceeding therefore may be brought.
3.2 No
Conflicts or Defaults. The
execution and delivery of this Agreement by Times and the consummation
of the
transactions contemplated hereby do not and shall not (a) contravene the
governing documents of Times or any of the Subsidiaries, or (b) with or
without
the giving of notice or the passage of time, (i) violate, conflict with,
or
result in a breach of, or a default or loss of rights under, any material
covenant, agreement, mortgage, indenture, lease, instrument, permit or
license
to which Times or any of the Subsidiaries is a party or by which Times
or any of
the Subsidiaries or any of their respective assets are bound, or any judgment,
order or decree, or any law, rule or regulation to which their assets are
subject, (ii) result in the creation of, or give any party the right to
create,
any lien upon any of the assets of Times or any of the Subsidiaries, (iii)
terminate or give any parry the right to terminate, amend, abandon or refuse
to
perform any material agreement, arrangement or commitment to which Times
is a
party or by which Times or any of its assets are bound, or (iv) accelerate
or
modify, or give any party the right to accelerate or modify, the time within
which, or the terms under which Times is to perform any duties or obligations
or
receive any rights or benefits under any material agreement, arrangement
or
commitment to which it is a party.
3.3 Capitalization. The
authorized capital stock of Times immediately prior to giving effect to
the
transactions contemplated hereby consists of 50,000 shares of common stock
of
which, as of the date hereof, there were 20,002 shares issued and outstanding.
Except as set forth herein, all of the outstanding shares of Times are
duly
authorized, validly issued, fully paid and nonassessable, and have not
been or,
with respect to Times Shares, will not be transferred in violation of any
rights
of third parties. The Times Shares are not subject to any preemptive or
subscription right, any voting trust agreement or other contract, agreement,
arrangement, option, warrant, call, commitment or other right of any character
obligating or entitling Times to issue, sell, redeem or repurchase any
of its
securities, and there is no outstanding security of any kind convertible
into or
exchangeable for common shares. All of the Times Shares are owned of record
and
beneficially by the Shareholder free and clear of any liens, claims,
encumbrances, or restrictions of any kind.
3.4 Taxes. Times
has
filed all returns and reports which were required to be filed on or prior
to the
date hereof, and has paid all Taxes (and any related penalties, fines and
interest) which have become due pursuant to such returns or reports or
pursuant
to any assessment which has become payable, or, to the extent its liability
for
any Taxes (and any related penalties, fines and interest) has not been
fully
discharged, the same have been properly reflected as a liability on the
books
and records of Times and adequate reserves therefore have been established.
All
such returns and reports filed on or prior to the date hereof have been
properly
prepared and are true, correct (and to the extent such returns reflect
judgments
made by Times such judgments were reasonable under the circumstances) and
complete in all material respects. Except as indicated in 3.4 of the Disclosure
Schedule, no extension for the filing of any such return or report is currently
in effect. Except as indicated in Item 3.4 of the Disclosure Schedule,
no tax
return or tax return liability of Times has been audited or, presently
under
audit. All taxes and any penalties, fines and interest which have been
asserted
to be payable as a result of any audits have been paid. Except as indicated
in
Item 3.4 of the Disclosure Schedule, Times has not given or been requested
to
give waivers of any statute of limitations relating to the payment of any
Taxes
(or any related penalties, fines and interest). There are no claims pending
for
past due Taxes. Except as indicated in Item 3.4 of the Disclosure Statement,
all
payments for withholding taxes, unemployment insurance and other amounts
required to be paid for periods prior to the date hereof to any governmental
authority in respect of employment obligations of Times have been paid
or shall
be paid prior to the Closing and have been duly provided for on the books
and
records of Times and in the Times Financial Statements.
6
3.5 Compliance
with Law. Times
and
the Subsidiaries are conducting their respective businesses in material
compliance with all applicable law, ordinance, rule, regulation, court
or
administrative order, decree or process, or any requirement of insurance
carriers material to its business. Neither Times nor any of the Subsidiaries
has
received any notice of violation or claimed violation of any such law,
ordinance, rule, regulation, order, decree, process or requirement.
3.6 Litigation.
(a) There
is
no claim, dispute, action, suit, proceeding or investigation pending or
threatened, against or affecting Times or any of the Subsidiaries or challenging
the validity or propriety of the transactions contemplated by this Agreement,
at
law or in equity or admiralty or before any federal, state, local, foreign
or
other governmental authority, board, agency, commission or instrumentality,
has
any such claim, dispute, action, suit, proceeding or investigation been
pending
or threatened, during the 12-month period preceding the date
hereof;
(b) there
is
no outstanding judgment, order, writ, ruling, injunction, stipulation or
decree
of any court, arbitrator or federal, state, local, foreign or other governmental
authority, board, agency, commission or instrumentality, against or materially
affecting Times or any of the Subsidiaries; and
(c) neither
Times nor any of the Subsidiaries has received any written or verbal inquiry
from any federal, state, local, foreign or other governmental authority,
board,
agency, commission or instrumentality concerning the possible violation
of any
law, rule or regulation or any matter disclosed in respect of its
business.
3.7 Conflict
of Interest. Times
and
each of the Subsidiaries acknowledges that it is aware and understands
the
following facts and circumstances that may, individually and in the aggregate,
create a conflict of interest: (i) WestPark Capital, Inc., an NASD member
(“WestPark”),
is
the placement agent for the Equity Financing and WestPark will be paid
a
commission of the gross proceeds from the Equity Financing for its services;
(ii) Xxxxxxx Xxxxxxxxx, who is the founder, Chief Executive President and
indirectly holds a 100% interest in WestPark, is also the President, a
Director
and controlling stockholder of the Company who beneficially holds approximately
36% of the Company’s common stock (prior to the Share Exchange); (iii) Xxxxxxx
X. Xxxxxxxxxxxx, who is the Chief Financial Officer of WestPark, is also
the
Secretary, Chief Financial Officer, and a Director and a controlling stockholder
of the Company who beneficially holds approximately 15% of the Company’s common
stock (prior to the Share Exchange); (iv) Xxxxxx Xxxxxxxxxxxx is a noteholder
of
the parent company of WestPark, which entitles her to a 1.5% interest in
the net
profits of the parent company of WestPark, and is also a controlling stockholder
of the Company holding approximately 36% of the Company’s outstanding common
stock (prior to the Share Exchange); (v) Xxxxxx Xxxxxxx is a partner of
Xxxxxxxxxxx & Xxxxxxxx Xxxxxxxxx Xxxxxx LLP, which is providing U.S. legal
representation to Times with respect to the Exchange, holds approximately
5% of
the outstanding common stock of the Company (prior to the Share Exchange)
and
Xx. Xxxxxxx is also a stockholder of other XXXX xxxxx companies of which
Messrs.
Xxxxxxxxx and Pintsopoulos are officers and directors thereof; (vi) Xxxxx
Xxxxxxx is a stockholder of the Company holding approximately 5% of the
outstanding common stock of the Company (prior to the Share Exchange) and
Xx.
Xxxxxxx is also partner with the law firm of Ropes & Xxxx LLP, which has
conducted affiliated transactions with WestPark in the past and (vii) Xxxxx
XxXxxxxx and Xxx Xxxxx, each employees of WestPark, each own less then
5% of the
outstanding common stock of the Company (prior to the Share Exchange) (items
(i)
through (vii) in this Section are herein referred to as, the “Conflicts
of Interest”).
Times
hereby waives each and all of the Conflicts of Interest, in addition to
any
other conflicts of interest that may arise may exist or arise by virtue
of the
Conflicts of Interest and acknowledges that it has carefully read this
Agreement, that it is consistent with the terms previously negotiated by
the
parties, and understands that it is free at any time to obtain independent
counsel for further guidance.
7
ARTICLE
IV
REPRESENTATION
AND WARRANTIES OF THE SHAREHOLDER
The
Shareholder hereby represents and warrants to the Company that now and/or
as of
the Closing:
4.1 Title
to Shares. The
Shareholder is the legal and beneficial owner of the Times Shares to be
transferred to the Company, and upon consummation of the exchange contemplated
herein, the Company will acquire from the Shareholder good and marketable
title
to the Times Shares, free and clear of all liens excepting only such
restrictions hereunder upon future transfers by the Company, if any, as
maybe
imposed by applicable law. The information set forth on Schedule I
with
respect to the Shareholder is accurate and complete.
4.2 Due
Authorization. The
Shareholder has all requisite power and authority to execute and deliver
this
Agreement, and to consummate the transactions contemplated hereby and thereby.
This Agreement constitutes the valid and binding obligation of the Shareholder,
enforceable against him in accordance with its terms, except as may be
affected
by bankruptcy, insolvency, moratoria or other similar laws affecting the
enforcement of creditors’ rights generally and subject to the qualification that
the availability of equitable remedies is subject to the discretion of
the court
before which any proceeding therefore may be brought.
8
4.3 Purchase
for Investment.
(a) The
Shareholder is acquiring the Company Shares for investment for his own
account
and not as a nominee or agent, and not with a view to the resale or distribution
of any part thereof, and he has no present intention of selling, granting
any
participation in, or otherwise distributing the same. The Shareholder further
represents that he does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to
such
person or to any third person, with respect to any of the Company
Shares.
(b) The
Shareholder understands that the Company Shares are not registered under
the
Securities Exchange Act of 1933, as amended (the “Act”)
on the
ground that the sale and the issuance of securities hereunder is exempt
from
registration under the Act pursuant to Section 4(2) thereof, and that the
Company’s reliance on such exemption is predicated on the Shareholder’s
representations set forth herein. The Shareholder is an “accredited investor” as
that term is defined in Rule 501(a) of Regulation D under the Act.
4.4 Investment
Experience. The
Shareholder acknowledges that he can bear the economic risk of his investment,
and has such knowledge and experience in financial and business matters
that he
is capable of evaluating the merits and risks of the investment in the
Company
Shares.
4.5 Information. The
Shareholder has carefully reviewed such information as such he deemed necessary
to evaluate an investment in the Company Shares. To the full satisfaction
of the
Shareholder, he has been furnished all materials that he has requested
relating
to the Company and the issuance of the Company Shares hereunder, and the
Shareholder has been afforded the opportunity to ask questions of
representatives of the Company to obtain any information necessary to verify
the
accuracy of any representations or information made or given to him.
Notwithstanding the foregoing, nothing herein shall derogate from or otherwise
modify the representations and warranties of the Company set forth in this
Agreement, on which the Shareholder has relied in making an exchange of
the
Times Shares for the Company Shares.
4.6 Restricted
Securities. The
Shareholder understands that the Company Shares may not be sold, transferred,
or
otherwise disposed of without registration under the Act or an exemption
there
from, and that in the absence of an effective registration statement covering
the Company Shares or any available exemption from registration under the
Act,
the Company Shares must be held indefinitely. The Shareholder is aware
that the
Company Shares may not be sold pursuant to Rule 144 promulgated under the
Act
unless all of the conditions of that Rule are met. Among the conditions
for use
of Rule 144 may be the availability of current information to the public
about
the Company.
4.7 Conflict
of Interest. The
Shareholder acknowledges that he is aware and understands the facts and
circumstances of the Conflicts of Interest, as defined in Section 3.7,
that may,
individually and in the aggregate, create a conflict of interest. The
Shareholder hereby waives each and all of the Conflicts of Interest, in
addition
to any other conflicts of interest that may arise may exist or arise by
virtue
of the Conflicts of Interest and acknowledges that he has carefully read
this
Agreement, that it is consistent with the terms previously negotiated by
the
parties, and understands that he is free at any time to obtain independent
counsel for further guidance.
9
ARTICLE
V
COVENANTS
5.1 Further
Assurances.
Each
of
the Parties shall use its reasonable commercial efforts to proceed promptly
with
the transactions contemplated herein, to fulfill the conditions precedent
for
such parry’s benefit or to cause the same to be fulfilled and to execute such
further documents and other papers and perform such further acts as may
be
reasonably required or desirable to carry out the provisions of this Agreement
and to consummate the transactions contemplated herein.
ARTICLE
VI
DELIVERIES
Items
to
be delivered to the Shareholder prior to or at Closing by the
Company.
(a) Certificate
of Incorporation and amendments thereto, By-laws and amendments thereto,
and
certificate of good standing of the Company in Delaware;
(b) all
applicable schedules hereto;
(c) all
minutes and resolutions of board of director and shareholder meetings in
possession of the Company;
(d) shareholder
list;
(e) all
financial statements and all tax returns in possession of the
Company;
(f) resolution
from the Company’s Board appointing the designees of the Shareholder to the
Company’s Board of Directors;
(g) resolution
from the Company’s Board, and if applicable, shareholder resolutions approving
this transaction and authorizing the issuances of the shares
hereto;
(h) letters
of resignation from the Company’s current officers and directors to be effective
upon Closing and after the appointments described in this section;
(i) certificates
representing 19,454,420 shares of the Company Shares issued in the name
of the
Shareholder;
(j) any
other
document reasonably requested by the Shareholder that he deems necessary
for the
consummation of this transaction.
Items
to
be delivered to the Company prior to or at Closing by Times and the
Shareholder.
(a) all
applicable schedules hereto;
10
(b) instructions
from Times appointing its designees to the Company’s Board of
Directors;
(c) share
certificates and duly executed stock powers from the Shareholder transferring
the Times Shares to the Company;
(d) resolutions
from the Board of Directors of Times, if applicable, and shareholder resolutions
approving the transactions contemplated hereby; and
(e) any
other
document reasonably requested by the Company that it deems necessary for
the
consummation of this transaction.
ARTICLE
VII
CONDITIONS
PRECEDENT
7.1 Conditions
Precedent to Closing. The
obligations of the Parties under this Agreement shall be and are subject
to
fulfillment, prior to or at the Closing, of each of the following
conditions:
(a) That
each
of the representations and warranties of the Parties contained herein shall
be
true and correct at the time of the Closing date as if such representations
and
warranties were made at such time except for changes permitted or contemplated
by this Agreement.
(b) That
the
Parties shall have performed or complied with all agreements, terms and
conditions required by this Agreement to be performed or complied with
by them
prior to or at the time of the Closing;
(c) The
Company shall have effected (in the form of a stock dividend) a
1.371188519-for-1 forward stock split of its outstanding shares of Common
Stock
(the “Stock
Split”);
(d) That
the
Company shall have engaged a public relations firm prior to Closing that
is
mutually acceptable to the Company and Times; and
(e) The
Company shall have concluded an equity financing of at least $1,000,000
at the
time of Closing (the “Equity
Financing”).
7.2 Conditions
to Obligations of Shareholder. The
obligations of Shareholder shall be subject to fulfillment prior to or
at the
Closing, of each of the following conditions:
(a) The
Company shall have received all of the regulatory, shareholder and other
third
party consents, permits, approvals and authorizations necessary to consummate
the transactions contemplated by this Agreement;
(b) The
Company shall have complied with Rule 14(f)(1) of the Exchange Act, if
required;
and
11
(c) The
Equity Financing shall have been concluded.
7.3 Conditions
to Obligations of the Company. The
obligations of the Company shall be subject to fulfillment at or prior
to or at
the Closing, of each of the following conditions:
(a) Times
and
the Shareholder shall have received all of the regulatory, shareholder
and other
third party consents, permits, approvals and authorizations necessary to
consummate the transactions contemplated by this Agreement; and
(b) The
Shareholder shall have delivered to the Company the share certificates
and duly
executed stock powers from the Shareholder transferring the Times Shares
to the
Company.
ARTICLE
VIII
INDEMNIFICATION
8.1 Indemnity
of the Company. The
Company agrees as to defend, indemnify and hold harmless the Shareholder
from
and against, and to reimburse the Shareholder with respect to, all liabilities,
losses, costs and expenses, including, without limitation, reasonable attorneys’
fees and disbursements (collectively the “Losses”)
asserted against or incurred by the Shareholder by reason of, arising out
of, or
in connection with any material breach of any representation or warranty
contained in this Agreement made by the Company or in any document or
certificate delivered by the Company pursuant to the provisions of this
Agreement or in connection with the transactions contemplated
thereby.
8.2 Indemnity
of the Shareholder. The
Shareholder agrees to defend, indemnify and hold harmless the Company from
and
against, and to reimburse the Company with respect to, all losses, including,
without limitation, reasonable attorneys’ fees and disbursements, asserted
against or incurred by the Company by reason of, arising out of, or in
connection with any material breach of any representation or warranty contained
in this Agreement and made by the Shareholder or in any document or certificate
delivered by the Shareholder pursuant to the provisions of this Agreement
or in
connection with the transactions contemplated thereby, it being understood
that
the Shareholder shall have responsibility hereunder only for the representations
and warranties made by him.
8.3 Indemnification
Procedure. A
party
(an “Indemnified
Party”)
seeking indemnification shall give prompt notice to the other party (the
“Indemnifying
Party”)
of any
claim for indemnification arising under this Article VIII. The Indemnifying
Party shall have the right to assume and to control the defense of any
such
claim with counsel reasonably acceptable to such Indemnified Party, at
the
Indemnifying Party’s own cost and expense, including the cost and expense of
reasonable attorneys’ fees and disbursements in connection with such defense, in
which event the Indemnifying Party shall not be obligated to pay the fees
and
disbursements of separate counsel for such in such action. In the event,
however, that such Indemnified Party’s legal counsel shall determine that
defenses may be available to such Indemnified Party that are different
from or
in addition to those available to the Indemnifying Party, in that there
could
reasonably be expected to be a conflict of interest if such Indemnifying
Party
and the Indemnified Party have common counsel in any such proceeding, or
if the
Indemnified Party has not assumed the defense of the action or proceedings, then
such Indemnifying Party may employ separate counsel to represent or defend
such
Indemnified Party, and the Indemnifying Party shall pay the reasonable
fees and
disbursements of counsel for such Indemnified Party. No settlement of any
such
claim or payment in connection with any such settlement shall be made without
the prior consent of the Indemnifying Parry which consent shall not be
unreasonably withheld.
12
ARTICLE
IX
TERMINATION
9.1 Termination. This
Agreement may be terminated at any time before or, at Closing, by:
(a) The
mutual agreement of the Parties;
(b) Any
party
if-
(i) Any
provision of this Agreement applicable to a party shall be materially untrue
or
fail to be accomplished; or
(ii) Any
legal
proceeding shall have been instituted or shall be imminently threatening
to
delay, restrain or prevent the consummation of this Agreement;
(c) Upon
termination of this Agreement for any reason, in accordance with the terms
and
conditions set forth in this paragraph, each said party shall bear all
costs and
expenses as each party has incurred.
ARTICLE
X
COVENANTS
SUBSEQUENT TO CLOSING
10.1 Registration
Rights. The
Company shall file, within thirty (30) days after the Closing and at its
expense, with the U.S. Securities and Exchange Commission (the “Commission”)
a
registration statement (the “Initial
Registration Statement”)
covering the resale of Common
Shares
held by those persons (and/or their designees) that are shareholders of
the
Company immediately prior to the Closing (“Pre-Existing
Shareholders”),
provided
that,
however, the Company shall not be required to register the Common Shares
held by
such shareholders who are affiliates of Westpark Capital, Inc. (“Westpark
Affiliates”),
as
specified in Item 10.1 of the Disclosure Schedules, who shall instead receive
registration rights to require the Company to file a registration statement
(the
“Second
Registration Statement”)
to
register such Common Shares within ten (10) days following to the end of
the six
(6) month period that immediately follows the date on which the Company
files
Initial Registration Statement with the Commission. The Company shall enter
into
a Registration Rights Agreement acceptable to the Westpark Affiliates with
respect to rights described in this Section 10.1. In the event the Second
Registration Statement is not timely filed to register the shares held
by the
Westpark Affiliates, or if the Second Registration Statement is not timely
declared effective by the Commission, as described in the Registration
Rights
Agreement, the Company shall issue to such holders penalty shares (the
“Penalty
Shares”)
equal
to one percent (1%) of the shares on a monthly basis until the Second
Registration Statement is filed with or declared effective by the Commission,
as
applicable. However, no Penalty Shares shall be due to the Westpark Affiliates
if the Company is using best efforts to cause the Second Registration Statement
to be filed and declared effective in a timely manner.
13
10.2 AMEX
Listing. The
Company shall take reasonable efforts to cause the Company’s securities to be
listed on the American Stock Exchange as soon as practicable after the
Closing.
ARTICLE
XI
MISCELLANEOUS
11.1 Survival
of Representations, Warranties and Agreements. Each
of
the parties hereto is executing and carrying out the provisions of this
Agreement in reliance upon the representations, warranties and covenants
and
agreements contained in this agreement or at the closing of the transactions
herein provided for and not upon any investigation which it might have
made or
any representations, warranty, agreement, promise or information, written
or
oral, made by the other party or any other person other than as specifically
set
forth herein. Except as specifically set forth in this Agreement,
representations and warranties and statements made by a party to in this
Agreement or in any document or certificate delivered pursuant hereto shall
not
survive the Closing Date, and no claims made by virtue of such representations,
warranties, agreements and covenants shall be made or commenced by any
party
hereto from and after the Closing Date.
11.2 Access
to Books and Records. During
the course of this transaction through Closing, each party agrees to make
available for inspection all corporate books, records and assets, and otherwise
afford to each other and their respective representatives, reasonable access
to
all documentation and other information concerning the business, financial
and
legal conditions of each other for the purpose of conducting a due diligence
investigation thereof. Such due diligence investigation shall be for the
purpose
of satisfying each party as to the business, financial and legal condition
of
each other for the purpose of determining the desirability of consummating
the
proposed transaction. The Parties further agree to keep confidential and
not use
for their own benefit, except in accordance with this Agreement any information
or documentation obtained in connection with any such
investigation.
11.3 Further
Assurances. If,
at
any time after the Closing, the parties shall consider or be advised that
any
further deeds, assignments or assurances in law or that any other things
are
necessary, desirable or proper to complete the merger in accordance with
the
terms of this agreement or to vest, perfect or confirm, of record or otherwise,
the title to any property or rights of the parties hereto, the Parties
agree
that their proper officers and directors shall execute and deliver all
such
proper deeds, assignments and assurances in law and do all things necessary,
desirable or proper to vest, perfect or confirm title to such property
or rights
and otherwise to carry out the purpose of this Agreement, and that the
proper
officers and directors the parties are fully authorized to take any and
all such
action.
11.4 Notice. All
communications, notices, requests, consents or demands given or required
under
this Agreement shall be in writing and shall be deemed to have been duly
given
when delivered to, or received by prepaid registered or certified mail
or
recognized overnight courier addressed to, or upon receipt of a facsimile
sent
to, the party for whom intended, as follows, or to such other address or
facsimile number as may be furnished by such party by notice in the manner
provided herein:
14
Attention:
If
to the
Shareholder and Times:
Times
Manufacture & E-commerce Corporation Limited
Room
1601-1604, 16/F.
CRE
Center
000
Xxxxxx Xxx Xxx Xxxx
Xxxxxxx,
Xxxx Xxxx
Attn:
Xx.
Xxxxx Kai Shun
Fax:
(000) 00000000
With
a
copy to:
Xxxxxxxxxxx
& Xxxxxxxx Xxxxxxxxx Xxxxxx LLP
00000
Xxxxx Xxxxxx Xxxx., Xxxxxxx Xxxxx
Xxx
Xxxxxxx, Xxxxxxxxxx 00000
Attn:
Xxxxxx X. Xxxxxxx, Esq.
Fax.:
(000) 000-0000
If
to the
Company:
SRKP
9,
Inc.
0000
Xxxxxx xx xxx Xxxxx, Xxxxx 000
Xxx
Xxxxxxx, XX 00000
Attn:
Xxxxxxx Xxxxxxxxx
Fax:
(000) 000-0000
11.5 Entire
Agreement. This
Agreement, the Disclosure Schedules and any instruments and agreements
to be
executed pursuant to this Agreement, sets forth the entire understanding
of the
parties hereto with respect to its subject matter, merges and supersedes
all
prior and contemporaneous understandings with respect to its subject matter
and
may not be waived or modified, in whole or in part, except by a writing
signed
by each of the parties hereto. No waiver of any provision of this Agreement
in
any instance shall be deemed to be a waiver of the same or any other provision
in any other instance. Failure of any party to enforce any provision of
this
Agreement shall not be construed as a waiver of its rights under such
provision.
11.6 Successors
and Assigns. This
Agreement shall be binding upon, enforceable against and inure to the benefit
of, the parties hereto and their respective heirs, administrators, executors,
personal representatives, successors and assigns, and nothing herein is
intended
to confer any right, remedy or benefit upon any other person. This Agreement
may
not be assigned by any party hereto except with the prior written consent
of the
other parties, which consent shall not be unreasonably withheld.
15
11.7 Governing
Law. This
Agreement shall in all respects be governed by and construed in accordance
with
the laws of the State of Delaware are applicable to agreements made and
fully to
be performed in such state, without giving effect to conflicts of law
principles.
11.8 Counterparts. This
Agreement may be executed in multiple counterparts, each of which shall
be
deemed an original, but all of which together shall constitute one and
the same
instrument.
11.9 Construction. Headings
contained in this Agreement are for convenience only and shall not be used
in
the interpretation of this Agreement. References herein to Articles, Sections
and Exhibits are to the articles, sections and exhibits, respectively,
of this
Agreement. The Disclosure Schedule is hereby incorporated herein by reference
and made a part of this Agreement. As used herein, the singular includes
the
plural, and the masculine, feminine and neuter gender each includes the
others
where the context so indicates.
11.10 Severability. If
any
provision of this Agreement is held to be invalid or unenforceable by a
court of
competent jurisdiction, this Agreement shall be interpreted and enforceable
as
if such provision were severed or limited, but only to the extent necessary
to
render such provision and this Agreement enforceable.
[SIGNATURE
PAGE FOLLOWS]
16
IN
WITNESS WHEREOF, each of the parties hereto has executed this Agreement
as of
the date first set forth above.
SRKP 9, INC. | ||
|
|
|
By: | /s/ Xxxxxxx Xxxxxxxxx | |
Name: Xxxxxxx Xxxxxxxxx |
||
Title: President |
TIMES
MANUFACTURE & E-COMMERCE
CORPORATION
LIMITED
|
||
|
|
|
By: | /s/ XXXXX XXX SHUN | |
Name: XXXXX XXX SHUN |
||
Title: Chief Executive Officer |
|
|
|
By: | /s/ XXXXX XXX SHUN | |
Name: XXXXX XXX SHUN |
Witness:
|
||
|
|
WestPark Capital Inc. |
By: | /s/ Xxxxxxx Xxxxxxxxx | |
Name: Xxxxxxx Xxxxxxxxx |
||
Title: Chief Executive Officer |
17
TIMES
MANUFACTURE & E-COMMERCE CORPORATION LIMITED
SHAREHOLDER’S
SIGNATURE PAGE TO
Dated
December 15, 2006
Among
SRKP 9, Inc.,
Times
Manufacture & E-commerce Corporation Limited., and
The
Shareholder of Times Manufacture & E-commerce Corporation
Limited
The
undersigned Shareholder hereby executes and delivers the Share Exchange
Agreement (the “Agreement”)
to
which this Signature Page is attached, which, together with all counterparts
of
the Agreement and Signature Pages of the other parties named in said Agreement,
shall constitute one and the same document in accordance with the terms
of the
Agreement.
(Signature)
|
||
XXXXX
XXX SHUN
|
||
(Type
or print name)
|
||
(Type
or print name as it should appear on certificate, if
different)
|
||
Address:
Room
1601-1604, 00/X, XXX Xxxxxx
000 Xxxxxx Xxx Xxx Xxxx
Telephone: (___) _____________________
Facsimile:
(___) _____________________
|
Number
of Times Shares Held: 20,002
1
SCHEDULE
I
SHAREHOLDER
AND TIMES SHARES
Name
|
Number
of Times Shares
|
|||
Xxxxx
Xxx Shun
|
20,002
|
1
ITEM
10.1
WESTPARK
AFFILIATES
Xxxxxxx
Xxxxxxxxx
Xxxxxxx
X. Xxxxxxxxxxxx
Xxxxx
XxXxxxxx
Xxx
Xxxxx
2
TABLE
OF CONTENTS
Page
|
||
ARTICLE
I
THE EXCHANGE
|
1
|
|
1.1
|
The
Exchange.
|
1
|
1.2
|
Time
and Place of Closing.
|
2
|
1.3
|
Effective
Time.
|
2
|
1.4
|
Tax
Consequences.
|
2
|
|
||
ARTICLE
II
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
|
2
|
|
2.1
|
Due
Organization and Qualification; Due Authorization.
|
2
|
2.2
|
No
Conflicts or Defaults.
|
2
|
2.3
|
Capitalization.
|
3
|
2.4
|
Financial
Statements.
|
3
|
2.5
|
No
Assets or Liabilities.
|
3
|
2.6
|
Taxes.
|
4
|
2.7
|
Indebtedness;
Contracts; No Defaults.
|
4
|
2.8
|
Real
Property.
|
4
|
2.9
|
Compliance
with Law.
|
4
|
2.10
|
Permits
and Licenses.
|
4
|
2.11
|
Litigation.
|
4
|
2.12
|
Insurance.
|
5
|
2.13
|
Patents;
Trademarks and Intellectual Property Rights.
|
5
|
2.14
|
Securities
Law Compliance.
|
5
|
2.15
|
Conflict
of Interest. Conflict of Interest.
|
5
|
|
||
ARTICLE
III
REPRESENTATIONS AND WARRANTIES OF TIMES
|
5
|
|
3.1
|
Due
Organization and Qualification; Subsidiaries, Due
Authorization.
|
5
|
3.2
|
No
Conflicts or Defaults.
|
6
|
3.3
|
Capitalization.
|
6
|
3.4
|
Taxes.
|
6
|
3.5
|
Compliance
with Law.
|
7
|
3.6
|
Litigation.
|
7
|
3.7
|
Conflict
of Interest.
|
7
|
ARTICLE
IV
REPRESENTATION AND WARRANTIES OF THE SHAREHOLDER
|
8
|
|
4.1
|
Title
to Shares.
|
8
|
4.2
|
Due
Authorization.
|
8
|
4.3
|
Purchase
for Investment.
|
9
|
4.4
|
Investment
Experience.
|
9
|
4.5
|
Information.
|
9
|
4.6
|
Restricted
Securities.
|
9
|
4.7
|
Conflict
of Interest.
|
0
|
-x-
XXXXXXX
X
XXXXXXXXX
|
00
|
|
5.1
|
Further
Assurances.
|
10
|
|
||
ARTICLE
VI
DELIVERIES
|
10
|
|
|
||
ARTICLE
VII
CONDITIONS PRECEDENT
|
11
|
|
7.1
|
Conditions
Precedent to Closing.
|
11
|
7.2
|
Conditions
to Obligations of Shareholder.
|
11
|
7.3
|
Conditions
to Obligations of the Company.
|
12
|
|
||
ARTICLE
VIII
INDEMNIFICATION
|
12
|
|
8.1
|
Indemnity
of the Company.
|
12
|
8.2
|
Indemnity
of the Shareholder.
|
12
|
8.3
|
Indemnification
Procedure.
|
12
|
|
||
ARTICLE
IX
TERMINATION
|
13
|
|
9.1
|
Termination.
|
13
|
|
||
ARTICLE
X
COVENANTS SUBSEQUENT TO CLOSING
|
13
|
|
10.1
|
Registration
Rights.
|
13
|
10.2
|
AMEX
Listing.
|
14
|
|
||
ARTICLE
XI
MISCELLANEOUS
|
14
|
|
11.1
|
Survival
of Representations, Warranties and Agreements.
|
14
|
11.2
|
Access
to Books and Records.
|
14
|
11.3
|
Further
Assurances.
|
14
|
11.4
|
Notice.
|
14
|
11.5
|
Entire
Agreement.
|
15
|
11.6
|
Successors
and Assigns.
|
15
|
11.7
|
Governing
Law.
|
16
|
11.8
|
Counterparts.
|
16
|
11.9
|
Construction.
|
16
|
11.10
|
Severability.
|
16
|
-ii-