Share Exchange Agreement
This
Share Exchange Agreement dated as of this 12th day of
January 2010 (the "Agreement") between East Coast Diversified Corporation, a
publicly-held Nevada corporation with offices located at 0000 Xxxx Xxxxxxx Xxxxx Xxxx, Xxxxx
000, Xxxx Xxxxxxxxxx, XX 00000 ("ECDC"), EarthSearch Communications
International, Inc., a Delaware corporation, with offices located at 000 Xxxxxxxxxx Xxxxx Xxxxxxx, Xxxxx
000, Xxxxxxx, XX 00000 ("EarthSearch") and the shareholders of
EarthSearch ("EarthSearch Shareholders") set forth in Annex A
hereto.
WHEREAS,
ECDC, EarthSearch and the EarthSearch Shareholders wish to enter into
this Agreement pursuant to which ECDC will acquire 100% of the issued and
outstanding shares co common stock of EarthSearch, par value $.__ ("EarthSearch
Shares") in exchange for thirty-five million (35,000,000) shares of the ECDC's
common stock, par value $.0001 ("ECDC Shares") in a transaction intended to
qualify as a reorganization within the meaning of Section 368(a)(1)(B) of the
Internal Revenue Code of 1986, as amended, and as a result of this Agreement,
EarthSearch will become a wholly-owned subsidiary of ECDC; and
WHEREAS,
the ECDC and EarthSearch
and the EarthSearch Shareholders agree that this Agreement shall become effective (the
"Effective Date") as of the completion by ECDC of the fulfillment of all obligations under a
separate private stock purchase agreement dated December 18, 2009 ("PSPA"), between those ECDC
shareholders set forth in the PSPA (the "Sellers") and Kayode Aladesuyi (the "Buyer").
NOW,
THEREFORE, ECDC, EarthSearch and the EarthSearch Shareholders agree as
follows:
1.3.
FURTHER ASSURANCES. At the Effective Date and from time to time thereafter, the
parties
shall execute such additional instruments and take such other action as ECDC and
EarthSearch
may request in order to effectively consummate the transactions and purposes of
this Agreement.
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4.7. NO
SUBSIDIARIES. ECDC has no subsidiaries.
5.REPRESENTATIONS
AND WARRANTIES OF EARTHSEARCH. EarthSearch represents
and warrants that:
5.1.
CORPORATE ORGANIZATION AND GOOD STANDING. EarthSearch is a corporation
duly
organized and validly existing, and in good standing under the laws of the State
of Delaware,
and is qualified to do business as a foreign corporation in each jurisdiction,
if any, in which its property or business requires such
qualification.
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6. CONDUCT
PENDING THE EFFECTIVE DATE. ECDC and
EarthSearch covenant that between the date of this Agreement and the Effective
Date as to each of them:
6.1 No
change will be made in the charter documents, by-laws, or other corporate
documents of ECDC.
6.2. ECDC
will use its best efforts to maintain and preserve its business organization and
except as contemplated under this Agreement will not enter into any material
commitment other than as provided herein.
6.3.
EarthSearch will use its best efforts to maintain and preserve its business
organization, employee relationships, and goodwill intact, and will not enter
into any material commitment except in the ordinary course of
business.
6.4
EarthSearch shall have prepared and delivered to ECDC the EarthSearch Financial
Statements as provided in Section 5.8 above.
6.5. None
of the EarthSearch Shareholders listed in Annex A will sell, transfer, assign,
hypothecate, lien, or otherwise dispose or encumber the EarthSearch Shares owned
by them.
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7.1.
ECDC'S REPRESENTATIONS AND WARRANTIES. The
representations and warranties of ECDC set forth herein shall be true and
correct at the date of this Agreement and at the Effective Date, as though made
at and as of such dates, except as affected by transactions contemplated
hereby.
8. CONDITIONS PRECEDENT TO
OBLIGATIONS OF ECDC. EarthSearch's obligations to
consummate this share exchange shall be subject to fulfillment on or before the
Effective Date each of the following conditions, unless waived in writing by
ECDC:
(a)
|
A
certificate from the Secretary of State of Delaware, stating that
EarthSearch is a corporation duly organized and validly
existing;
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(b)
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A
Secretary's certificate stating that EarthSearch has the authorized
capital stock is as set forth
herein;
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(c)
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Copies
of the resolutions of the board of directors of EarthSearch authorizing
the execution of this Agreement and the consummation
hereof;
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(d)
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A
Secretary's certificate of incumbency of the officers and directors of
EarthSearch;
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(e)
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Any
document as may be specified herein or required to satisfy the conditions,
representations and warranties enumerated elsewhere
herein.
|
9. CONDUCT AND COVENANTS. On or
prior to the Effective Date the parties shall take the
following actions:
(a)
|
ECDC
shall prepare and file with FINRA all necessary documents and forms
necessary to effect the name change of ECDC to EarthSearch Communications
International, Inc. in an expedited
manner;
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(b)
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ECDC
will take no action to terminate its registration under Section 12(g) the
Exchange Act;
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(c)
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ECDC
shall continue to utilize the services of a recognized stock transfer
agent and shall execute and deliver all necessary and proper documentation
to effect in an expeditious mannerthe
issuance of ECDC Shares as provided in this Agreement and the transactions
contemplated hereby in compliance with the Federal securities laws and the
rules and regulations of the SEC.
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(d)
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EarthSearch
shall cooperate with all reasonable requests and provide all necessary
documents in order to ECDC to become a reporting company and remain
current under the Exchange Act.
|
11.1
SCOPE. The parties hereby agree that any and all under the terms of this
Agreement will be resolved by arbitration before the American Arbitration
Association within Dade County, State of Florida.
11.2.
APPLICABLE LAW. The law applicable to the arbitration and this Agreement shall
be that of the State of Florida determined without regard to its provisions
which would otherwise apply to a question of conflict of laws.
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If to
ECDC, to:
East
Coast Diversified Corporation
Attention:
Xxxxx Xxxxxx, President
0000 Xxxx
Xxxxxxx Xxxxx Xxxx, Xxxxx 000
Xxxx
Xxxxxxxxxx, XX 00000
If to EarthSearch Communications
International, Inc.
Attention: Kayode Aladesuyi, CEO and
President
000 Xxxxxxxxxx Xxxxx Xxxxxxx,
Xxxxx 000
Xxxxxxx,
XX 00000
12.5. GOVERNING LAW. This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of Florida.
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The
parties have duly executed this Agreement this 12th day of January 2010.
East Coast Diversified
Corporation
By:
/s/ Xxxxx
Xxxxxx
Xxxxx
Xxxxxx, President
EarthSearch
Communications International, Inc.
By: /s/ Kayode
Aladesuyi
Kayode
Aladesuyi, CEO and President
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