EXHIBIT 10.3
CONTRIBUTION AGREEMENT
THIS CONTRIBUTION AGREEMENT ("AGREEMENT") is made and entered into as of
this 14th day of February, 2003 by and among WESTPORT INVESTMENTS LIMITED, a
Bahamian corporation ("Investments"), its wholly-owned subsidiary, WESTPORT
ENERGY LLC, a Delaware limited liability company ("WELLC" and, collectively with
Investments, the "WELLC Entities"), and MEDICOR FOUNDATION, a Liechtenstein
foundation ("Medicor").
WITNESSETH
WHEREAS, Medicor is an organization formed to support and further medical,
educational, humanitarian and cultural causes; and
WHEREAS, WELLC owns shares of Common Stock, par value $0.01 per share, of
Westport Resources Corporation ("WRC"); and
WHEREAS, the WELLC Entities desire to contribute to Medicor Eleven Million
(11,000,000) shares of Common Stock of WRC, which number of shares represents
not more than 90 percent of the fair market value of the net assets of
Investments and not more than 70 percent of the fair market value of the gross
assets held by Investments immediately prior to the transfer contemplated
hereby, based on the value of the assets as determined by Xxxxxx Xxxxxxx Xxxxxx
Xxxxxxx, Inc. (the "Shares"), and Medicor desires to accept the contribution of
the Shares.
NOW, THEREFORE, in consideration of the covenants and agreements made
herein, the parties hereto agree as follows:
1. Recitations. The recitations set forth hereinabove are true, correct and
incorporated herein by reference.
2. Shares. The WELLC Entities hereby agree to transfer all of their right,
title and interest to the Shares to Medicor.
3. Restrictions. Medicor hereby covenants and agrees that it shall use the
Shares only in accordance with the terms and conditions of its Formation Deed
and Articles.
4. Representations and Warranties. Medicor acknowledges and agrees that the
Shares are being contributed pursuant to an exemption from registration
contained in the Securities Act of 1933, as amended (the "Securities Act"),
based in part upon Medicor's representations contained in this Agreement.
Medicor hereby represents and warrants as follows:
4.1 Medicor is capable of evaluating the merits and risks of its
investment in WRC. Medicor must bear the economic risk of this investment
indefinitely unless the Shares are registered pursuant to the Securities Act, or
an exemption from registration is available. Medicor understands that there is
no assurance that any exemption from registration under the Securities Act will
be available and that, even if available, such exemption may not allow Medicor
to
-1-
transfer all or any portion of the Shares under the circumstances, in the
amounts or at the times Medicor might propose.
4.2 Medicor is acquiring the Shares for its own account for investment
only, and not with a view towards their distribution.
4.3 Medicor represents that by reason of its, or of its management's,
business or financial experience, it has the capacity to protect its own
interests in connection with the transactions contemplated in this Agreement
4.4 Medicor acknowledges and agrees that it has access to information
regarding WRC, including but not limited to annual, quarterly and other
securities filings and reports of WRC filed pursuant to the Securities Exchange
Act of 1934, as amended (the "Exchange Act").
4.5 Medicor acknowledges and agrees that the Shares must be held
indefinitely unless they are subsequently registered under the Securities Act or
an exemption from such registration is available. Medicor has been advised or is
aware of the provisions of Rule 144 promulgated under the Securities Act, which
permits limited resale of shares purchased or acquired in a private placement
subject to the satisfaction of certain conditions, including, among other
things: the availability of certain current public information about a company,
the resale occurring not less than one year after a party has purchased and paid
for the security to be sold, the sale being through an unsolicited "broker's
transaction" or in transactions directly with a market maker (as said term is
defined under the Exchange Act) and the number of shares being sold during any
three-month period not exceeding specified limitations.
5. Severability. If any provision of this Agreement or the application of
any provision hereof to any party or set of circumstances is held invalid, the
remainder of this Agreement and the application of such provision to the other
parties or set of circumstances shall not be affected, unless the provision held
invalid shall substantially impair the benefits of the remaining portions of
this Agreement.
6. Entire Agreement. This Agreement contains the entire agreement among the
parties with respect to the subject matter hereof, and supersedes all prior
agreements, written or oral, with respect thereto. The headings in this
Agreement are for reference purposes only and shall not in any way affect the
meaning or interpretation of this Agreement.
7. Waivers and Amendments. This Agreement may be amended, modified,
superseded, cancelled, renewed or extended, and the terms and conditions hereof
may be waived only be a written instrument signed by all of the parties hereto.
No delay on the part of any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any waiver by any party
of any right, power or privilege hereunder, nor any single or partial exercise
of any right, power or privilege hereunder, preclude any other or further
exercise thereof or the exercise of any other right, power or privilege
hereunder. The rights and remedies herein provided are cumulative and are not
exclusive of any rights or remedies which either party may otherwise have at law
or in equity.
-2-
8. Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the Commonwealth of the Bahamas, without regard to
the conflicts of law provisions thereof.
9. Binding Effect; Assignment. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective legal representatives,
successors and assigns.
10. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall constitute an original copy
hereof, but all of which together shall be considered but one in the same
document.
`
[signature page follows]
-3-
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first above written.
MEDICOR FOUNDATION
By: /s/ Xxxxxx Xxxxx von Liechtenstein
----------------------------------------
Name: Xxxxxx Xxxxx von Liechtenstein
Title: Vice President
By: /s/ Xxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxx X. Xxxxxx
Title: _________________________________
WESTPORT INVESTMENTS LIMITED
By: /s/ Xxxxxxx Xxxxxxx
----------------------------------------
Name: Xxxxxxx Xxxxxxx
Title: under Power of Attorney dated
17 October 2002
WESTPORT ENERGY LLC
By: Westport Investments Limited, its
managing member
By: /s/ Xxxxxxx Xxxxxxx
----------------------------------------
Name: Xxxxxxx Xxxxxxx
Title: under Power of Attorney dated
17 October 2002