SHARE PURCHASE AGREEMENT
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THIS AGREEMENT made as of the 1st day of September, 2001.
AMONG:
WINQ INDUSTRIES INC. a Nevada corporation, (hereinafter referred to as the "Purchaser") | |||
OF THE FIRST PART |
|||
AND; | |||
XXXXXXXX XXXXXXXXX of the City of Mississauga, Province of Ontario, Canada (hereinafter referred to as the "Seller") | |||
OF THE SECOND PART | |||
AND; | |||
BIOGNOSTICS INC., a body corporate, duly incorporated under the laws of (hereinafter referred to as the "Company") | |||
OF THE THIRD PART |
- 1.
- RECITALS
This Agreement, in consideration of the payment by each party to the other of the sum of One Dollar ($1.00), and other good and valuable consideration, receipt and sufficiency whereof is hereby acknowledged, is entered into with reference to and in contemplation of the following facts, circumstances and representations:
- 1.1
- The
Seller is the owner of One Hundred percent (100%) of the issued and outstanding shares of common stock of the Company (hereinafter referred to as the "the Company Shares").
- 1.2
- The
Company's assets and intellectual property are as described in Appendix "A" of this Agreement.
- 1.3
- The
Purchaser desires to purchase the Company Shares from the Seller and the Seller wishes to sell the Company Shares to the Purchaser.
- 1.4
- The
parties have agreed that the purchase price for the Company Shares will be US$5,000.00 payable by the issuance of 5,000,000 (Five Million) shares of common stock of the Purchaser
at a price per share of US$00.001, (hereinafter collectively referred to as the "Purchase Price").
- 1.5
- The
Company and the Seller desire that this transaction be consummated.
- 2.
- EXCHANGE
AND ISSUANCE OF SHARES
- 2.1
- Exchange
of Purchaser Shares: At the closing, the Purchaser shall exchange and deliver to the Seller, a total of 5,000,000 shares of the Purchaser's common stock (hereinafter referred
to as the "Purchaser Shares").
- 2.2
- Exchange
of the Company Shares: At the closing, the Seller shall exchange and deliver to the Purchaser, shares of the Company's common stock which represent One Hundred percent (100%)
of the issued and outstanding shares of the Company.
- 2.3
- Nature
of the Purchaser Shares: The Seller shall be issued the Purchaser Shares which unless otherwise contractually restricted, shall be subject to a one (1) year holding
period before the Purchaser Shares are eligible for sale in the U.S. public market. The sale of the Purchaser Shares will be further limited by the resale provisions of SEC Rule 144.
- 2.4
- Restricted Nature of Purchaser Shares: Notwithstanding the one (1) year holding period for the Purchaser Shares, a shareholder who becomes an "affiliate" or "Control person" of the Purchaser
will be subject to certain limitations with respect to the sale of its Purchaser Shares. Accordingly, as a result of such a designation, the sale of the Purchaser Shares will be limited by SEC Rule 144.
- 2.5
- Private
Sale Acknowledgment: The parties acknowledge and agree that the exchange and issuance of the Purchaser Shares is being undertaken as a private sale pursuant to
Section 4(2) of the Securities Act of 1933, as amended and Nevada Revised Statutes Chapters 78 and 90 and is not being transacted via a
broker-dealer and/or in the public market place.
- 2.6
- Status of Present Share Ownership and Contemplated Share Issuance by the Purchaser: The parties hereto acknowledge and agree that in addition to the issuance of the 5,000,000 Purchaser Shares, and upon the Closing of the share exchange contemplated by this Agreement, that the following will be the resulting share ownership of the Purchaser:
|
Name |
No. Shares |
||
---|---|---|---|---|
1. | Present Purchaser | |||
Shareholders | 12,620,000 | |||
2. | The Seller | 5,000,000 | ||
Total Issued Shares | 17,620,000 |
- 3.
- REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
The Purchaser represents and warrants to the Seller and the Company as follows:
- 3.1
- Organization:
The Purchaser is a corporation duly incorporated and validly existing under the laws of Nevada and is in good standing with respect to all of its regulatory filings.
- 3.2
- Capitalization:
The authorized capital of the Purchaser consists of 100,000,000 common shares with a par value $.001.
- 3.3
- Books
and Records: All material transactions of the Purchaser have been promptly and properly recorded or filed in or with its books and records and the Minute Book of the Purchaser
contains records of all meetings and proceedings of the shareholders and directors thereof.
- 3.4
- Legal
Compliance: To the best of its knowledge, the Purchaser is not in breach of any laws, ordinances, statutes, regulations, by-laws, orders or decrees to which the
Purchaser is subject or which apply to it or any of its assets.
- 3.5
- Tax
Returns: All tax returns and reports of the Purchaser required by law to be filed prior to the date hereof have been filed and are substantially true, complete and correct and all
taxes and governmental charges have been paid.
- 3.6
- Adverse
Financial Events: The Purchaser has not experienced nor is it aware of any occurrence or event which has had or might reasonably be expected to have a material adverse effect
on its financial condition.
- 3.7
- Disputes,
Claims and Investigations: There are no disputes, claims, actions, suits, judgments, investigations or proceedings outstanding or pending or to the knowledge of the
Purchaser threatened against or affecting the Purchaser at law or in equity or before or by any federal, state, municipal or other governmental department, commission, board, bureau or agency.
- 3.8
- Employee
Liabilities: The Purchaser has no liability to former employees or any liability to any governmental authorities with respect to current or former employees.
- 3.9
- No Conflicts or Agreement Violations: The execution, delivery and performance of this Agreement will not conflict with or be in violation of the articles or by-laws of the Purchaser or of any agreement to which the Purchaser is a party and will not give any person or company a right to terminate or cancel any agreement or right enjoyed by the Purchaser and will not result in the
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creation or imposition of any lien, encumbrance or restriction of any nature whatsoever in favor of a third party upon or against the assets of the Purchaser.
- 3.10
- Validly
Issued and Authorized Shares: The Purchaser Shares will be validly authorized and issued by the Purchaser, they will be fully paid and non-assessable and they
will be issued in full compliance with all federal and state securities laws.
- 3.11
- Corporate
Authority: The officers or representatives of the Purchaser executing this Agreement represent that they have been authorized to execute this Agreement pursuant to a
resolution of the Board of Directors of the Purchaser.
- 4.
- REPRESENTATIONS OF SELLER AND THE COMPANY
The Seller and the Company collectively and individually hereby represent and warrant to the Purchaser as follows:
- 4.1
- Share
Ownership: That the Seller is the owner of record of the Company Shares and said shares are free and clear of all liens, encumbrances, claims, charges and restrictions.
- 4.2
- Transferability
of the Company Shares: That the Seller has full power to transfer the Company Shares to the Purchaser without obtaining the consent or approval of any other person or
governmental agency.
- 4.3
- Validly
Issued and Authorized Shares: That the Company Shares are validly authorized and issued, fully paid, and non-assessable, and the Company Shares have been so issued
in full compliance with all federal and provincial securities laws.
- 4.4
- Asset
Ownership: That the Company has good, valid and clear title to its assets and intellectual property (described in Appendix A) and such assets are free and clear of any
and all liens, charges and encumbrances, save and except as otherwise disclosed in writing to the Purchaser prior to the date of this Agreement.
- 4.5
- Organization:
That the Company is a corporation duly incorporated and validly existing under the laws of Ontario, Canada and is in good standing with respect to all of its regulatory
filings.
- 4.6
- Capitalization:
That the Company Shares are the only issued and outstanding shares of the Company.
- 4.7
- Financial
Statements: That the Company has furnished to the Purchaser financial statements for the period ending December 31st, 2000 and at the Closing the financial affairs of
the Company will be materially the same as represented in such financial statements.
- 4.8
- Books
and Records: That all material transactions of the Company have been promptly and properly recorded or filed in or with its books and records and the Minute Book of the Company
contains records of all meetings and proceeds of the shareholders and directors thereof.
- 4.9
- Legal
Compliance: That the Company is not in breach of any laws, ordinances, statutes, regulations, by-laws, orders or decrees to which the Company is subject or which
apply to it or any of its assets.
- 4.10
- Tax
Returns: That all tax returns and reports of the Company required by law to be filed prior to the date hereof have been filed and are substantially true, complete and correct and
all taxes and governmental charges have been paid.
- 4.11
- Adverse Financial Events: That the Company has not experienced nor is it aware of any occurrence or event which has had or might reasonably be expected to have a material adverse effect on its financial condition.
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- 4.12
- Disputes,
Claims and Investigations: That there are no disputes, claims, actions, suits, judgments, investigations or proceedings outstanding or pending or to the knowledge of the
Company threatened against or affecting the Company at law or in equity or before or by any federal, provincial, municipal or other governmental department, commission, board, bureau or agency.
- 4.13
- No
Conflicts or Agreement Violations: That the execution, delivery and performance of this Agreement will not conflict with or be in violation of the articles or by-laws
of the Company or of any agreement to which the Company is a party and will not give any person or company a right to terminate or cancel any agreement or right enjoyed by the Company and will not
result in the creation or imposition of any lien, encumbrances or restriction of any nature whatsoever in favor of a third party upon or against the
assets of the Company.
- 4.14
- No
Liens: That the Company has not received a notice of any assignment, lien, encumbrance, claim or charge against the Company Shares.
- 4.15
- Corporate
Authority: That the officers or representatives of the Company executing this Agreement represent that they have been authorized to execute this Agreement pursuant to a
resolution of the Boards of Directors of the Company.
- 5.
- REPRESENTATIONS AND WARRANTIES OF SELLER ALONE
The Seller alone further represents and warrants to the Purchaser as follows with respect to the Company Shares:
- 5.1
- Financially
Responsible: That the Seller is financially responsible and able to meet her obligations and acknowledge that this investment will be speculative.
- 5.2
- Investment
Experience: That the Seller has had experience in the business of investments in one or more of the following: (i) investment experience with securities such as
stock and bonds; (ii) ownership of interests in partnerships, new ventures and start-up companies; (iii) experience in business and financial dealings; and that she can
protect her own interests in an investment of this nature and she does not have an "Investor Representative", as that term is defined in Regulation D of the Securities Act of 1933 and does not
need such an Investor Representative.
- 5.3
- Investment
Risk: That the Seller is capable of bearing the high degree of economic risks and burdens of this investment, including but not limited to the possibility of complete loss
of all her investment capital and the lack of a liquid market, such that she may not be able to liquidate readily the investment whenever desired or at the then current asking price.
- 5.4
- Access
to Information: That the Seller has had access to the information regarding the financial condition of the Purchaser and she was able to request copies of such information, ask
questions of and receive answers from the Purchaser regarding such information and any other information she desires concerning the Purchaser's Shares, and all such questions have been answered to
their full satisfaction.
- 5.5
- Private
Transaction: That at no time was she presented with or solicited by any leaflet, public promotional meeting, circular, newspaper or magazine article, radio or television
advertisement or any other form of general advertising.
- 5.6
- Investment
Intent: That the Purchaser Shares are not being purchased with a view to or for the resale or distribution thereof and the Seller has no present plans to enter into any
contract, undertaking, agreement or arrangement for such resale or distribution.
- 5.7
- Due Diligence: That the Seller has completed a due diligence review of the affairs of the Purchaser and is satisfied with the results of that review.
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- 6.
- CLOSING,
CONDITIONS TO CLOSING
- 6.1
- Closing
of Transaction: The closing of the transaction contemplated herein (the "Closing") shall take place upon the signing of this Agreement, at the offices of the Company on
September 1st, 2001.
- 6.2
- Conditions
and Closing: Prior to the Closing the following will be required:
- a.
- Delivery
of the Company Shares: The Seller shall deliver to the Purchaser the certificate or certificates representing the Company Shares, duly endorsed for transfer accompanied by a
duly executed transfer of the Company Shares to the Purchaser.
- b.
- Delivery
of the Purchaser Shares: The Purchaser shall arrange to have delivered to the Seller a total of 5,000,000 Shares of the Purchaser.
- c.
- Requisite
Corporate Resolutions: Each party shall deliver to the other, certified copies of resolutions from their respective Boards of Directors authorizing the subject transaction.
- d.
- Shareholders
or Board of Directors Approval: The Purchaser shall deliver to the Seller documentation evidencing the Purchaser shareholders approval of the subject transaction.
- 6.3
- Upon
closing the Seller and the Company will arrange to deliver to the Purchaser all corporate documentation, minute book, assets, intellectual property, all documentation relating to
the intellectual property and all other materials relating to the Company and its affairs.
- 7.
- COOPERATION,
ARBITRATION, INTERPRETATION, MODIFICATION AND ATTORNEY FEES
- 7.1
- Cooperation
of Parties: The parties further agree that they will do all things necessary to accomplish and facilitate the purpose of this Agreement and that they will sign and execute
any and all documents necessary to bring about and perfect the purposes of this Agreement.
- 7.2
- Arbitration:
The parties hereby submit all controversies, claims and matters of difference arising out of this Agreement to arbitration in Ontario according to the rules and practices
of the Province of Ontario from time to time in force. This submission and agreement to arbitrate shall be specifically enforceable. The Agreement shall further be governed by the laws of the Province
of Ontario.
- 7.3
- Interpretation
of Agreement: The parties agree that should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing such
provisions or any part of or the entire Agreement in favor of or against any party herein, but rather by construing the terms of this Agreement fairly and reasonable in accordance with their generally
accepted meaning.
- 7.4
- Modification
of Agreement: This Agreement may be amended or modified in any way at any time by an instrument in writing stating the manner in which it is amended or modified and
signed by each of the parties hereto. Any such writing amending or modifying this Agreement shall be attached to and kept with this Agreement.
- 7.5
- Attorney
Fees: If any legal action or any arbitration or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default or
misrepresentation in connection with any of the provisions of the Agreement, the successful or prevailing party shall be entitled to recover reasonable attorneys' fees and other costs incurred in that
action or proceeding, in addition to any other relief to which it may be entitled.
- 7.6
- Entire Agreement: This Agreement constitutes the entire Agreement and understanding of the parties hereto with respect to the matters herein set forth, and all prior negotiations, writings and
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understandings relating to the subject matter of this Agreement are merged herein and are superseded and canceled by this Agreement.
- 7.7
- Counterparts:
This Agreement may be signed in one or more counterparts.
- 7.8
- Facsimile Transmission Signatures: A signature received pursuant to a facsimile transmission shall be sufficient to bind a party to this Agreement.
SIGNED,
SEALED and DELIVERED.
DATED the 1st day of September, 2001
XXXXXXXX XXXXXXXXX (the Seller) Biognotics Inc., |
|||
Per: |
/s/ XXXXXXXX XXXXXXXX Xxxxxxxx Xxxxxxxx |
||
Winq Industries Inc. | |||
Per: |
/s/ TALAL CHEAAB Talal Cheaab Director |
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SHARE PURCHASE AGREEMENT