STOCK PURCHASE AGREEMENT AND PLAN OF REORGANIZATION Dated as of October 4, 2004 By and Between Sunrise Energy Services, Inc. and Eurosecurities Ltd. EMU Capital, Ltd. Twinstar International, Ltd. Exeter Financing Group, Inc. Midland Trust Company,...
Execution
Copy
AND
PLAN OF REORGANIZATION
Dated
as
of October 4, 2004
By
and
Between
Sunrise
Energy Services, Inc.
and
Eurosecurities
Ltd.
EMU
Capital, Ltd.
Twinstar
International, Ltd.
Exeter
Financing Group, Inc.
Midland
Trust Company, Ltd.
and
Independent
Commonwealth Resources, LLC
Xxxxxxxx
Xxxxxx Partners, Inc.
Huntington
Ventures, Inc.
Wellburn
Resources, Inc.
Tunbridge
Falcon Industries, LLC
i
TABLE
OF
CONTENTS
SECTION
1. DEFINITIONS AND INTERPRETATIONS
|
1
|
1.1.
DEFINED TERMS
|
1
|
1.2.
PRINCIPLES OF CONSTRUCTION
|
3
|
SECTION
2. THE TRANSACTION
|
3
|
2.1.
REESTABLISHING SES' TRADING STATUS
|
3
|
2.2.
AUTHORIZATION AND ISSUANCE OF ADDITIONAL SES SHARES
|
4
|
2.3.
TRANSFER OF SHARES
|
5
|
2.3.1.
Transfer of the Currently Issued and Authorized Shares
|
5
|
2.3.2.
Transfer of SES' and EP' Shares upon Closing
|
5
|
2.4.
CLOSING
|
5
|
2.5.
EP AUDITED FINANCIAL REPORTS
|
6
|
2.6.
RESTRICTION ON TRANSFERABILITY OF SHARES
|
6
|
2.7.
ACQUISITION OF ADDITIONAL SHARES BY THE PURCHASERS
|
6
|
SECTION
3. REPRESENTATIONS AND WARRANTIES
|
7
|
3.1.
REPRESENTATIONS AND WARRANTIES OF SES AND THE SES SHAREHOLDERS
|
7
|
3.2.
REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS
|
8
|
SECTION
4. CONFIDENTIAL INFORMATION
|
10
|
4.1.
CONFIDENTIAL INFORMATION DEFINED
|
10
|
4.2.
CONFIDENTIALITY
|
10
|
4.3.
SURVIVAL OF CONFIDENTIALITY
|
11
|
SECTION
5. MISCELLANEOUS
|
11
|
5.1.
EXPENSES
|
11
|
5.2.
GOVERNING LAW
|
11
|
5.3.
RESIGNATION OF OLD AND APPOINTMENT OF NEW BOARD OF DIRECTORS
|
11
|
5.4.
DISCLOSURE
|
11
|
5.5.
NOTICES
|
12
|
5.6.
PARTIES IN INTEREST
|
12
|
5.7.
ENTIRE AGREEMENT
|
13
|
5.8.
AMENDMENTS
|
13
|
5.9.
SEVERABILITY
|
13
|
5.10.
COUNTERPARTS
|
13
|
5.11.
NO LIABILITY OF AGENT
|
13
|
APPENDIX
A
|
00
|
XXXXXXXX
X
|
00
|
XXXXXXXX
X
|
00
|
XXXXXXXX
X
|
18
|
APPENDIX
E
|
19
|
APPENDIX
F
|
20
|
APPENDIX
G
|
21
|
APPENDIX
H
|
24
|
ii
STOCK
PURCHASE AGREEMENT AND PLAN OF REORGANIZATION
This
stock purchase agreement and plan of reorganization ("Agreement"),
dated
as of October 4, 2004, is entered into by and between Sunrise Energy Services,
Inc., a corporation organized and existing under the laws of the State of
Delaware ("SES"
or the
"Company"),
and
certain of SES' shareholders as identified
on Appendix
A,
(collectively, the "SES
Shareholders"),
and
the owners, identified on Appendix
B,
of one
hundred percent (100%) of the shares of Esko-Pivnich "EP"),
a
privately-owned company incorporated under the laws of Ukraine (collectively,
the "Purchasers").
W
I T N E
S S E T H:
WHEREAS,
the
Purchasers desire to purchase, and the Company and the SES Shareholders desire
to sell to the Purchasers, such number of shares (the "Acquired
Shares")
of
SES' common stock ("SES
Stock"),
which
upon issuance and payment therefor shall represent ninety one percent (91%)
of
the issued and outstanding SES Stock;
WHEREAS,
the
SES
Shareholders hold in the aggregate 6,194,095 shares of SES Stock, which
represent approximately ninety-five percent (95%) of the currently issued
and
outstanding shares of SES, and in order to benefit SES intend to transfer
5,000,000 of such shares of SES to the Purchasers as part of the Acquired
Shares; and SES desires to issue additional 10,479,900 shares of its authorized
but not issued shares to be transferred to the Purchasers as part of the
Acquired Shares; and
WHEREAS,
the
Purchasers own 100% of the shares of EP (the "EP
Stock"),
and
as part of the consideration for the purchase of the Acquired Shares, the
Purchasers desire to transfer to SES the EP Stock; and
WHEREAS,
it
is the
intention of the Company, the SES Shareholders and the Purchasers that upon
consummation of the foregoing transactions (collectively, the "Transaction"),
the
Purchasers shall own approximately ninety one percent (91%) of the issued
and
outstanding SES Stock and SES shall own 100% of the EP Stock;
NOW, THEREFORE,
in
consideration of the premises and of the mutual covenants, representations,
warranties and agreements herein contained, the Parties agree as
follows:
SECTION
l.
DEFINITIONS AND INTERPRETATIONS
1.1.
Defined Terms
In
this
Agreement the following words and expressions shall have the following meanings
(such meaning to be equally applicable to both the singular and plural terms
of
the terms defined):
"Additional
Shares" shall have the meaning provided in Section 2.7.1;
1
"Agreement"
shall have the meaning provided in the introductory paragraph;
"Acquired
Shares" shall have the meaning provided in the introductory
paragraph;
"Assets"
shall have the meaning provided in Section 3.2.1 (d);
"Bankruptcy
Court" shall mean the United States Bankruptcy Court for the Northern District
of Texas;
"Closing"
shall have the meaning provided in Section 2.3.2.1;
"Closing
Date" shall have the meaning provided in Section 2.4.1;
"Company"
means SES and its subsidiaries.
"Condition
Precedent" shall have the meaning provided in Section 2.1.1;
"Confidential
Information" shall have the meaning provided in Section 4.1;
"EP"
(Esko-Pivnich) shall have the meaning provided to it in the
introductory paragraph.
"EP
Stock" shall have the meaning provided to it in the introductory
paragraph;
"Escrow
Amount" shall have the meaning provided in Section 2.1.2;
"Escrow
Agent" shall have the meaning provided in Section 2.3.1.1 (i);
"Letter
Agreements" shall have the meaning provided in Section 2.7.1;
"Newly
Issued Shares" shall have the meaning provided in Section 2.2.1;
"Party"
or "Parties" means SES, each of the SES Shareholders or all of them, and
each of
the Purchasers or all of them, as the case may be;
"Plan
of
Reorganization" shall mean the plan of reorganization filed by SES in its
Chapter 11 proceedings and approved by the Bankruptcy Court on February 20,
1997;
"Purchasers"
shall mean the beneficial owners, identified on Appendix B, of one hundred
percent of the shares of EP;
"Reserve
Report" shall have the meaning provided in Section 3.2.1 (e);
"SEC"
(Securities and Exchange Commission) shall have the meaning provided to it
in
Section 2.1.1;
2
"SES"
(Sunrise Energy Services, Inc.) shall have the meaning provided in the
introductory paragraph; and shall include SES' subsidiaries;
"SES
Shareholders" shall have the meaning provided in the recitals and indicated
on
Appendix A;
"SES
Stock" shall have the meaning provided in the introductory paragraph;
"Transaction" shall have the meaning provided in the recitals;
1.2.
Principles of Construction.
(a)
All
references to Articles, Sections, subsections and Appendixes are to Articles,
Sections, subsections and Appendixes in or to this Agreement unless otherwise
specified. The words "hereof," "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole
and
not to any particular provision of this Agreement, The term "including" is
not
limiting and means "including without limitations."
(b)
In
the computation of periods of time from a specified date to a later specified
date, the word "from" means "from and including"; the words "to" and "until"
each mean "to but excluding"; and the word "through" means "to and including."
(c)
The
Table of Contents hereto and the Section headings herein are for convenience
only and shall not affect the construction hereof
(d)
This
Agreement is the result of negotiations among and has been reviewed by each
Party's counsel. Accordingly, this Agreement shall not be construed against
any
Party merely because of such Party's involvement in its preparation.
(e)
Wherever in this Agreement the intent so requires, reference to the neuter,
masculine or feminine shall be deemed to include each of the other, and
reference to either the singular or the plural shall be deemed to include
the
other.
SECTION
2. THE TRANSACTION
2.1.
Reestablishing SES' Trading Status. 2.1.1. Condition Precedent.
As
a
condition precedent to the Transaction, SES and the SES Shareholders undertake
to reestablish SES' trading capacity as a fully Securities and Exchange
Commission ("SEC")
reporting company whose shares are quoted on the Over the Counter
"Pink Sheet" trading and quotation system, with at least one active market
maker, designated by Thor Capital Group, and a current 15c211 Form (the
"Condition
Precedent").
It is
acknowledged by the Parties to this Agreement that SES has failed to file
certain documents and provide certain financial information required by the
SEC,
and that such documents and information will have to be properly filed prior
to
the reestablishment of SES' trading status,
3
Appendix
C
sets
forth certain forms and documents that SES and the SES Shareholders have
undertaken to file in order to establish SES' trading status.
2.1.2.
It
is agreed upon that the filing of such documents and the responsibility of
relisting SES is that of the Company and the SES Shareholders alone; provided
that any and all information which the Purchasers are to provide under this
Agreement has been so provided. Nevertheless, to cover part of the expense
of
preparation and filing of such forms and documents, the Purchasers have agreed
to transfer the sum of USD 35,000 to an escrow account at SES' counsel's
client
trust account (the "Escrow
Account")
in the
name of the Company, to be used for such expenses.
Appendix
D
lists
certain expenses and other sums for the preparation and Fling of the required
forms.
2.1.3.
The Purchasers shall transfer the above amount within five (5) days from
the
date of this Agreement, subject to the conditions set forth in Section
2.3.1.1,
2.1.4.
It
is noted that the Purchasers have agreed to the expenses listed in Appendix
D.
Funds remaining in the Escrow Account, if any, shall be returned to the
Purchasers
2.1.5,
It
is further agreed upon that notwithstanding any other provision in this
Agreement, any other amounts, exceeding the funds transferred by the Purchasers
to the Escrow Account, that are required for reestablishing SES' trading
status
will be the sole responsibility of the SES Shareholders. Furthermore, should
the
SES Shareholders not fulfill their obligation to reestablish SES' trading
status; the Purchasers shall be entitled to receive the SES Stock transferred
to
the Escrow Agent pursuant to Section 2.3.1.1 (i) below, without any farther
obligation on their part. Provided, however, that any information which the
Purchasers are to provide under this Agreement has been so provided.
2.1.6.
The Company and the SES Shareholders will have 60 days from the date of this
Agreement to finalize any and all of the requirements and reestablish SES'
trading capacity.
2.2.
Authorization and Issuance of Additional SES Shares.
4
2.2.1.
As
early as practicable, but in no event later than 30 days from the date of
this
Agreement, the Company shall (i) increase its authorized share capital to
75,000,000, and (2) reserve an additional 10,479,900 shares (the "Newly
Issued Shares"),
which
will be transferred to the purchasers in consideration for the EP Stock,
in
accordance with Section 2.3.2.1.
2.3.
Transfer of Shares.
2.3.1.
Transfer of the Currently Issued and Authorized Shares.
2.3.1.1.
In consideration for the transfer of the 5,000,000 shares by the SES
Shareholders to the Purchasers, the Purchasers shall pay (i) the sum of USD
35,000 to the Escrow Account, in accordance with Section 2.1.3, and (ii)
pay to
the SES Shareholders the sum of USD 40,000. Transfer of the shares and payment
thereof shall be in the following manner:
(i)
Simultaneously with the transfer of the funds to the Escrow Account by the
Purchasers, as set forth in Section 2.1.3, the SES Shareholders shall assign,
transfer and deliver to Thor Capital Group, attention of Xx. Xxxxx Xxxxxx,
as
Escrow Agent (the "Escrow
Agent"),
the
certificates for 5,000,000 currently issued and outstanding shares, registered
in the names of the Purchasers and/or their nominees in the manner set forth
in Appendix
E.
(ii)
Subject to the requirements set forth in Section 2.1 above, once SES has
regained its trading status, the Purchasers shall transfer the remaining
USD
40,000 to the Escrow Account for the benefit of the SES
Shareholders.
2.3.2.
Transfer of SES' and EP' Shares upon Closing.
2.3.2.1.
Subject to the terms, conditions and warranties set forth in this Agreement,
on
the Closing Date, (i) SES, in consideration for the EP Stock, will transfer
and
deliver to the Purchasers and/or their nominees, in the manner set forth
in
Appendix
F,
the
certificates for the Newly Issued Shares, (ii) in consideration for the Newly
Issued Shares, the Purchasers shall transfer to SES the EP Stock, by way
of
amending the EP Bylaws to reflect the transfer of ownership to SES, and deliver
an executed amended bylaws to SES, and (iii) the Escrow Agent shall deliver
the
currently issued 5,000,000 shares to the Purchasers, bringing the Purchasers'
stake in the Company to approximately 91%, (collectively, the "Closing").
5
2.3.2.2.
Approval for the transfer of the EP Stock. It is noted and understood by
SES and
the SES Shareholders that the transfer of the EP Stock may be subject to
the
anti-monopoly laws of Ukraine. Such laws apply, with certain
exceptions, to any transfer of shares to one party resulting in ownership
of
more than 25% of a company's shares. It is likely that the EP Stock transfer
will not be
subject to such laws, however, should the Transaction require approval of
the
Anti-monopoly Committee of Ukraine, it should be the responsibility of the
Purchasers to obtain such approval. The Purchasers shall have 120 days following
the date of this Agreement to obtain and furnish to the SES Shareholders
a copy
of the approval together with a certified English translation of the same.
Should the Purchasers fail to obtain such approval, and provided that this
Transaction is subject to the anti-monopoly laws of Ukraine, the Purchasers
shall return all the shares of SES transferred to them to the SES Shareholders,
the SES Shareholders will return any and all sums transferred to them by
the
Purchasers, however, the SES
Shareholders
shall be entitled to retain the USD 35,000 transferred to the Escrow
Account.
2.4.
Closing.
2.4.1.
The Closing shall take place at 10:00 AM. at the offices of Thor Capital
Group,
at 000 Xxxxx Xxxxxx, Xxxxx 000, Xxx Xxxx, Xxx Xxxx on the earlier of (i)
the
60th day following the date of this Agreement, or (ii) the date on which
all the
conditions precedent, conditions and warranties set forth in this Agreement
shall have been satisfied or waived (the "Closing
Date").
2.5.
EP
Audited Financial Reports.
2.5.1.
EP
shall furnish to the SES Shareholders its audited financial reports for each
of
the last two fiscal years, prepared by a US Qualified SEC accounting firm
using
GAAP and Regulation SX, no later than January 31, 2005. In addition, EP shall
provide the SES Shareholders its most recent interim financial statements
for
the current year, such financial statements shall be provided no latter then
30
days following the date of this Agreement.
2.6.
Restriction on Transferability of Shares.
2.6.1.
The SES Shareholders agree to hold 400,000 of SES' shares remaining in their
names for a period of six (6) months from the Closing Date. Such restriction
shall be registered with the transfer agent of the SES Stock.
2.7.
Acquisition of Additional Shares by the Purchasers.
2.7.1.
In
addition to the purchase of the Acquired Shares described above, the Purchasers
desire to acquire 100,000 shares of SES that are registered in the names
of
individuals other than the SES Shareholders for the aggregate sum of USD
10,000
(the "Additional
Shares").
The
Purchasers have entered into the letter agreements (the "Letter
Agreements'')
attached herewith as Exhibit
1
and
Exhibit
2,
which
are subject to the Closing of this Agreement.
6
2.7.2.
It
is agreed and understood by the Parties that the Additional Shares shall
not
count towards the approximately 91% of the SES shares acquired by the Purchasers
pursuant to Sections 2.2 and 2.3 above.
SECTION
3. REPRESENTATIONS AND WARRANTIES
3.1.
Representations and Warranties of SES and the SES Shareholders
3.1.1.
SES and the SES Shareholders represent and warrant and agree with the Purchasers
as follows:
(a)
The
entire authorized capital stock of SES on the Closing Date shall be 75,000,000
common shares, of which 17,000,000 shares shall be issued and outstanding.
All
of the shares of SES have been duly authorized, are validly issued, fully
paid
and non-assessable. There are no outstanding or authorized options, warrants,
purchase rights, subscription rights, conversion rights, exchange rights,
or
other contracts or commitments that could require SES to issue, sell, or
otherwise cause to become outstanding any of its capital stock (other than
this
Agreement).
(b)
The
SES Shareholders are the lawful owners of record of 6,194,095 shares, obtained
in accordance with SES' Plan of Reorganization approved by the Bankruptcy
Court
on February 20, 1997, and presently have the power to transfer and deliver
to
the Purchasers 5,000,000 shares free and clear of any restrictions on transfer
and/or resale, including, my restrictions imposed under Rule 144 of the
Securities Act of 1933, taxes, security interests, options, warrants, purchase
rights or other contracts or commitments that could require them to sell,
transfer, or otherwise dispose of any capital stock of SES. The delivery
to the
Purchasers of certificates evidencing the transfer of the Acquired Shares
pursuant to the provisions of this Agreement will transfer to the Purchasers
good and marketable title thereto, free and clear of all liens, encumbrances
restrictions and claims of any kind.
(c)
SES
is duly organized, validly existing and in good standing under the laws of
the
state of Delaware. SES and the SES Shareholders have the power and authority
to
enter into, execute and deliver this Agreement and to perform their respective
obligations hereunder. This Agreement had been duly authorized and approved
by
SES and the SES Shareholders' respective corporate actions and constitutes
their
legally valid and binding obligations and is enforceable against them in
accordance with its terms.
(d)
All
financial and other information which the Company and/or the SES Shareholders
furnished or will furnish to the Purchasers, including information with regard
to the Company and/or the SES Shareholders (i) is true, accurate and complete
as
of its date and in all material respects except to the extent such information
is superseded by information marked as such, (ii) does not omit any material
fact, not misleading and (iii) presents fairly the financial condition of
the
organization as of the date and for the period covered thereby.
7
(e)
The
Company has or will have at Closing no outstanding debt or obligations
whatsoever, except for any items which have already been disclosed in writing
to
the Purchasers by the Company or the SES Shareholders. Should the Purchasers
discover any obligation of the Company that was not disclosed by the SES
Shareholder prior to the Closing Date, the SES Shareholders undertake to
indemnify the Purchasers for any and all such liabilities, when reduced to
judgment, whether outstanding or contingent at the time of Closing.
The
undertakings and representations made in subsection (e) above shall survive
the
Closing Date and shall expire for all purposes in the date numerically
corresponding to the Closing Date in the twelfth month after the Closing
Date.
(f)
The
Company is not subject to any
pending or threatened litigations, claims or lawsuits from any party. There
are
no pending or threatened proceedings against the Company by any federal,
state
or local government, or any department, board, agency or other governmental
body.
(g)
The
Company has not been engaged in any business activity in the past nine years,
and is not liable for any income, real or personal property taxes to any
governmental or local authorities.
(h)
The
SES Shareholders are not aware of any material fact nor any omission to describe
any fact concerning the business, affairs, or status of SES not disclosed
to the
Purchasers.
(i)
The
Company has no employment contracts or agreements with any of its officers,
directors or with any consultants, employees or other such parties.
3.2.
Representations and Warranties of the Purchasers
3.2.1.
The purchasers represent and warrant and agree with SES and the SES Shareholders
as follows:
(a)
The
entire authorized capital stock of EP is owned by the Purchasers. All of
the
shares of EP have been duly authorized, are validly issued, fully paid and
non-assessable.
(b)
The
Purchasers are, or will be as of the Closing Date, the lawful owners of record
of all of the outstanding EP Stock, and presently have the power to transfer
and
deliver the EP Stock to SES free and clear of any restrictions on transfer
(other than that described in Section 2.3.3.2), security interests, options,
warrants, purchase rights or other contracts or commitments that could require
then to sell, transfer, or otherwise dispose of any capital stock of EP.
The
delivery to SES of the amended bylaws of EP evidencing the transfer of the
EP
Stock pursuant to the provisions of this Agreement will transfer to SES good
and
marketable title thereto, free and clear of all liens, encumbrances restrictions
and claims of any kind.
8
(c)
EP is
duly organized, validly existing and in good standing under the laws of Ukraine.
The Purchasers have the power and authority to enter into, execute and. deliver
this Agreement and to perform their obligations hereunder. This Agreement
had
been duly authorized and approved by the Purchasers' respective corporate
actions and constitutes their legally valid and binding obligations and is
enforceable against them in accordance with its terms.
(d)
EP is
the owner of all and not less than all of the rights, claims, permits and
assets
described on Appendix
G
(collectively, the "Assets")
and no
other person, firm, entity or governmental agency or body has any right to
or
against or otherwise affecting the ownership rights of EP in the Assets.
(e)
to
addition to the description provided in Appendix G, attached herewith, as
Appendix
H,
are two
reserve reports (the "Reserve
Reports")
prepared by (i) The Central Committee for Development of Oil, Gas and Condensate
of the Ministry of Fuel and Energy of Ukraine, and (ii) The Ministry of Ecology
and Natural Resources of Ukraine, indicating the approximate total crude
volume
of type C1 in the Assets to be 989,000 tones. The Purchasers do not warrant
the
accuracy of the Reserve Reports, nor make any representation regarding the
commercial value of such reserves.
(f)
EP
has or will have at the Closing Date no outstanding debt that has not
been
assumed in the ordinary course of business.
(g)
Upon
execution and delivery of the amended bylaws of EP evidencing the transfer
of
the EP Stock to SES in accordance with the terms of this Agreement, SES shall
acquire and thereafter own not less than 100% of the equity of EP. EP shall
continue to hold good and valid title in and to all of the Assets with all
necessary or appropriate rights entitling it to drill, explore for, produce,
develop and commercialize, and sell any valuable oil and gas in or underlying
or
connected with the Assets subject to and in accordance with the description
of
such rights in Appendix G.
(h)
The
Purchasers know of no condition or fact, including any claim or threat involving
environmental protection laws or other restriction on the right to explore
for,
develop and commercialize oil, gas and other mineralization occurring in
or
around EP's properties which may affect the right of EP to commercialize
the
Assets.
(i)
The
Transaction described in this Agreement to which the Purchasers are, or are
to
be, parties to have been duly approved by all, required action under the
laws of
Ukraine (subject to the provisions of Section 2.3.2.2.), and there is no
requirement for approval by any other governmental authority.
(j)
The
Purchasers know of no material fact or any omission to describe any fact
concerning the business, affairs, or status of EP not disclosed to SES and
the
SES Shareholders
or which would adversely affect the right of the Purchasers to transfer the
EP
Stock to SES.
9
(k)
EP is
not subject to any pending or threatened litigations, claims or lawsuits
from my
party, either against EP or any of its oil & gas Assets. There are no
pending or threatened proceedings against EP by any federal, state or local
government, or any department, board, agency or other governmental
body.
(l)
All
financial and other information furnished or will be furnished by the Purchasers
to the SES Shareholders regarding EP and/or the Purchasers (i) is true, accurate
and complete as of
its
date and in all material respects except to the extent such information is
superseded by information marked as such, (ii) does not omit any material
fact,
not misleading and (iii) presents fairly the financial condition of the
organization as of the date and for the period covered thereby.
SECTION
4.
CONFIDENTIAL INFORMATION
4.1.
Confidential Information Defined.
Any
and
all information furnished (whether before or after the date hereof) by or
on
behalf of any Party to this Agreement, including, without limitation, by
such
Party's financial advisors, attorneys and accountants, or agents, to another
Party to this Agreement, or to such Party's directors, officers, employees,
affiliates, representatives, including, without limitation, financial advisors,
attorneys and accountants, or agents shall be regarded as "Confidential
Information."
The
term Confidential Information shall not, however, include information which
(i)
is or becomes publicly available other than as a result of a disclosure by
the
Party receiving such Confidential Information, (ii) is or becomes available
to a
Party to this Agreement on a non-confidential basis from a source (other
than
through another Party to this Agreement) which is not prohibited from disclosing
such information by a legal, contractual or fiduciary obligation to another
Party, (iii) was available to, known by or within the possession of a Party
to
this Agreement prior to its being furnished by (or on behalf of) another
Party,
or (iv) is independently developed by or on behalf of a Party to this Agreement
not in violation of the terms of this Agreement.
4.2.
Confidentiality.
The
Parties undertake to keep any and all Confidential Information provided with
regard to this Agreement confidential and will not, without the other Party's
prior written consent, disclose such Confidential Information in any manner
whatsoever and will not use any Confidential Information other than in
connection with the Transaction; provided, however, that they may reveal
the
Confidential Information to their respective representatives (a) who need
to
know the Confidential Information (and who agree to use such Confidential
Information in accordance with this Agreement) for the purpose of evaluating
the Transaction and (b) who are informed by the respective Party of the
confidential nature of the information provided.
10
4.3.
Survival of Confidentiality.
The
undertakings and representations made above shall survive the Closing Date
and
shall expire for all purposes in the date numerically corresponding to the
Closing Date in the twelfth month after the Closing Date.
SECTION
5. MISCELLANEOUS
5.1.
Expenses.
Each
of
the Parties shall bear its own expenses in connection with the transactions
contemplated by the Agreement.
5.2.
Governing Law.
The
interpretation and construction of this Agreement, and all matters relating
hereto, shall be governed by the laws of the State of New York applicable
to
agreements executed and to be wholly performed solely within such
state.
5.3.
Resignation of Old and Appointment of New Board of Directors.
The
Company and the SES Shareholders shall take such corporate action(s) required
by
SES' articles of incorporations and/or bylaws to (a) appoint the below named
persons to their respective positions, to be effective as of
the
Closing Date, and (b) obtain and submit to the Purchasers, together with
all
required corporate action(s) the resignation of the current board of directors,
and any and all corporate officers as of the Closing Date.
Name
|
Position
|
|
Mr.
Konstantin Tsiryulnikov
|
Director,
Principal Financial and Accounting Officer and Secretary
|
|
Xx.
Xxxxx Xxxxxx
|
Director
|
|
Xx.
Xxxx Xxxxxx
|
Director
|
5.4.
Disclosure.
SES
Shareholders agree that they will not make any public comments, statements,
or
communications with respect to, or otherwise disclose the execution of this
Agreement or the terms and conditions of the transactions contemplated by
this
Agreement without the prior written consent of the Purchases, which, consent
shall not be unreasonably withheld.
11
5.5.
Notices.
Any
notice or other communication required or permitted under this Agreement
shall
be sufficiently given if delivered in person or sent by facsimile or by
overnight registered mail, postage prepaid, addressed as follows:
If
to
SES, to:
Xxxxx
X.
Xxxxxx
0000
Xxxxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx,
XX 00000
Telephone:
x0 (000) 000-0000
Facsimile:
x0 (000) 000-0000
With
a
copy to:
Xxxx
X.
Xxxxxx, LLC
0000
Xxxxxxx Xx., Xxxxx 0000
Xxxxxx,
XX 00000
Telephone:
x0 (000) 000-0000
Facsimile:
x0 (000) 000-0000
If
to SES
Shareholders, to:
Xxxxx
X.
Xxxxxx
0000
Xxxxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx,
XX 00000
Telephone:
x0 (000) 000-0000
Facsimile:
x0 (000) 000-0000
If
to the
Purchasers, to:
Thor
United Corporation; Attention: Xxxxx Xxxxxx and/or Xxxxxxx Xxxxxx
000
Xxxxx
Xxxxxx, Xxxxx 000
Xxx
Xxxx,
XX 00000
Telephone:
x0 (000) 000 0000
Facsimile:
x0 (000) 000 0000
Or
such
other address or number as shall be furnished in writing by any such Party,
and
such notice or communication shall, if properly addressed, be deemed to have
been given as of the date so delivered or sent by facsimile.
5.6.
Parties in Interest
This
Agreement may not be transferred, assigned or pledged by any Party hereto,
other
than by operation of law. This Agreement shall be binding upon and shall
inure
to the
benefit of the Parties hereto and their respective heirs, executors,
administrators, successors and permitted assigns.
12
5.7.
Entire Agreement.
This
Agreement and the other documents referred to herein contain, the entire
understanding of the Parties hereto with respect to the subject matter contained
herein. This Agreement shall supersede all prior agreements and understandings
between the Parties with respect to the transactions contemplated
herein.
5.8.
Amendments.
This
Agreement may not be amended or modified orally, but only by an agreement
in
writing signed by the Parties.
5.9.
Severability.
In
case
any provision in this Agreement shall be held invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions hereof
will not in any way be affected or impaired thereby.
5.10.
Counterparts.
This
Agreement may be executed in any number of counterparts, including counterparts
transmitted by telecopier or facsimile transmission, any one of which shall
constitute an original of this Agreement. When counterparts of facsimile
copies
have been executed by all parties, they shall have the same effect as if
the
signatures to each counterpart or copy were upon the same document and copies
of
such documents shall be deemed valid as originals. The Parties agree that
all
such signatures may be transferred to a single document upon the request
of any
Party.
5.11.
No
Liability Of Agent
The
Parties acknowledge and agree that nor Thor Capital Group neither Xxxxx Xxxxxx,
or any other officer, director or employee of Thor Capital Group, shall have
any
responsibility or liability arising under or relating to this Agreement,
other
than their role as Escrow Agent.
IN
WITNESS WHEREOF,
each of
the Parties hereto has caused its corporate name to be hereunto subscribed
by
its officer(s) thereunto duly authorized as of
the
day and year first above written.
Sunrise
Energy Services, Inc.
|
|||
By:
|
/s/
Xxxxx X. Xxxxxx
|
||
Name:
|
Xxxxx
X. Xxxxxx
|
||
Title:
|
President
|
13
The
SES Shareholders
|
|||
By:
|
/s/
Xxxxx X. Xxxxxx
|
||
Name:
|
Xxxxx
X. Xxxxxx
|
||
Attorney-In-Fact1
|
The
Purchasers
|
|||
By:
|
/s/
Xxxxx Xxxxxx
|
||
Name:
|
Xxxxx
Xxxxxx
|
||
Authorized
Agent 2
|
_______________________
1
Power
authorizing Xx. Xxxxxx to sign on behalf of the SES Shareholders is attached
hereto as Exhibit
3.
2
Power
authorizing Xx. Xxxxxx to sign on behalf of the Purchasers is attached hereto
as Exhibit
4.
14