SHARE EXCHANGE AGREEMENT by and among Skystar Bio-Pharmaceutical Company a Cayman Island company and the Shareholders of Skystar Bio-Pharmaceutical Company, on the one hand; and The Cyber Group Network Corporation, a Nevada corporation, and the...
EXHIBIT
10.1
by
and among
Skystar
Bio-Pharmaceutical Company
a
Cayman
Island company
and
the
Shareholders of
Skystar
Bio-Pharmaceutical Company,
on
the one hand;
and
The
Cyber
Group Network Corporation,
a
Nevada
corporation,
and
the
Majority Stockholders of The Cyber Group Network Corporation,
on
the other hand
September
20, 2005
This
Share Exchange Agreement, dated as of September 20, 2005 (this “Agreement”), is
made and entered into by and among the shareholders of Skystar
Bio-Pharmaceutical Company, a Cayman Island Company (“Skystar”), listed on
Schedule I attached (each, a “Skystar Shareholder,” collectively, the “Skystar
Shareholders”), on the one hand; and The Cyber Group Network Corporation, a
publicly traded Nevada corporation (OTCBB: CGPN.OB) (“CGPN”), R. Xxxxx Xxxxxx,
an individual, Xxxxx Xxxx, an individual, Xxxxx Xxxxxxx, an individual (all
hereinafter referred to collectively as the “CGPN Shareholders”) on the other
hand. Skystar is a party to this agreement solely to make representations
and
warranties as set forth herein.
R
E C I T A L S
WHEREAS,
the Board of Directors of CGPN has adopted resolutions approving CGPN’s
acquisition of shares of Skystar (the “Acquisition”) upon the terms and
conditions hereinafter set forth in this Agreement;
WHEREAS,
each Skystar Shareholder owns the number of shares of common stock of Skystar
set forth opposite such Skystar Shareholder’s name in Column I on Schedule I
attached hereto (collectively, the “Skystar Shares”);
WHEREAS,
the Skystar Shareholders own, collectively, an amount of shares of common
stock
of Skystar, constituting 100% of the issued and outstanding capital stock
of
Skystar, and the Skystar Shareholders desire to sell their respective portion
of
the Skystar Shares pursuant to the terms and conditions of this
Agreement;
WHEREAS,
the CGPN Stockholders hold an amount of shares of CGPN common stock which
represents at least a majority of the issued and outstanding capital stock
of
CGPN;
WHEREAS,
the
CGPN
Stockholders will enter into this Agreement for the purpose of making certain
representations, warranties, covenants, indemnifications and
agreements;
WHEREAS,
it
is
intended that the terms and conditions of this Agreement comply in all respects
with Section 368(a)(1)(B) of the Code and the regulations corresponding thereto,
so that the Acquisition shall qualify as a tax free reorganization under
the
Code;
NOW,
THEREFORE, the parties hereto, intending to be legally bound, agree as
follows:
ARTICLE
1
THE
ACQUISITION
1.1
The
Acquisition.
Upon
the terms and subject to the conditions hereof, at the Closing (as hereinafter
defined) the Skystar Shareholders will sell, convey, assign, transfer and
deliver to CGPN one or more stock certificates representing the Skystar Shares,
and as consideration for the acquisition of the Skystar Shares, CGPN will
issue
to each Skystar Shareholder, in exchange for such Skystar Shareholder’s pro rata
portion of the Skystar Shares, one or more stock certificates representing
the
number of shares of CGPN Series B Preferred Stock set forth opposite such
Skystar Shareholder’s name in Column II on Schedule 1.1(a) attached hereto
(collectively, the “CGPN Shares”). The CGPN Shares issued shall be convertible,
in the aggregate, into a number of shares of CGPN common stock that would
equal
89.5% of the outstanding shares of CGPN common stock, if the CGPN Shares
were to
be full converted at the time of Closing. In addition, at Closing, Skystar
shall
pay to CGPN an amount equal to $120,000, which shall be used to pay liabilities
of CGPN in the amounts owed to each person as set forth in Schedule 1.1(b).
1.2
Closing.
The
closing of the Acquisition (the “Closing”) shall take place on or before October
15, 2005, or on such other date as may be mutually agreed upon by the parties.
Such date is referred to herein as the “Closing Date.”
ARTICLE
2
REPRESENTATIONS
AND WARRANTIES OF SKYSTAR
Skystar
hereby represents and warrants to CGPN as follows:
2.1
Organization.
Skystar
has been duly incorporated, is validly existing as a corporation and is in
good
standing under the laws of its jurisdiction of incorporation, and has the
requisite power to carry on its business as now conducted.
2.2
Capitalization.
The
authorized capital stock of Skystar consists of 10,000 shares of common stock,
no par value, of which at the Closing, no more than 10,000 shares shall be
issued and outstanding. All of the issued and outstanding shares of capital
stock of Skystar, as of the Closing, are duly authorized, validly issued,
fully
paid, non-assessable and free of preemptive rights. There are no voting trusts
or any other agreements or understandings with respect to the voting of
Skystar’s capital stock.
2.3
Certain
Corporate Matters.
Skystar
is duly qualified to do business as a corporation and is in good standing
in
each jurisdiction in which the ownership of its properties, the employment
of
its personnel or the conduct of its business requires it to be so qualified,
except where the failure to be so qualified would not have a material adverse
effect on Skystar’s financial condition, results of operations or business.
Skystar has full corporate power and authority and all authorizations, licenses
and permits necessary to carry on the business in which it is engaged and
to own
and use the properties owned and used by it.
2.4
Authority
Relative to this Agreement.
Skystar
has the requisite power and authority to enter into this Agreement and to
carry
out its obligations hereunder. The execution, delivery and performance of
this
Agreement by Skystar and the consummation by Skystar of the transactions
contemplated hereby have been duly authorized by the Board of Directors of
Skystar and no other actions on the part of Skystar are necessary to authorize
this Agreement or the transactions contemplated hereby. This Agreement has
been
duly and validly executed and delivered by Skystar and constitutes a valid
and
binding agreement of Skystar, enforceable against Skystar in accordance with
its
terms, except as such enforcement may be limited by bankruptcy, insolvency
or
other similar laws affecting the enforcement of creditors’ rights generally or
by general principles of equity.
2.5
Consents
and Approvals; No Violations.
Except
for applicable requirements of federal securities laws and state securities
or
blue-sky laws, no filing with, and no permit, authorization, consent or approval
of, any third party, public body or authority is necessary for the consummation
by Skystar of the transactions contemplated by this Agreement. Neither the
execution and delivery of this Agreement by Skystar nor the consummation
by
Skystar of the transactions contemplated hereby, nor compliance by Skystar
with
any of the provisions hereof, will (a) conflict with or result in any breach
of
any provisions of the charter or Bylaws of Skystar, (b) result in a violation
or
breach of, or constitute (with or without due notice or lapse of time or
both) a
default (or give rise to any right of termination, cancellation or acceleration)
under, any of the terms, conditions or provisions of any note, bond, mortgage,
indenture, license, contract, agreement or other instrument or obligation
to
which Skystar or any Subsidiary (as hereinafter defined) is a party or by
which
they any of their respective properties or assets may be bound or (c) violate
any order, writ, injunction, decree, statute, rule or regulation applicable
to
Skystar or any Subsidiary, or any of their respective properties or assets,
except in the case of clauses (b) and (c) for violations, breaches or defaults
which are not in the aggregate material to CGPN or any Subsidiary taken as
a
whole.
2
2.6
Books
and Records.
The
books and records of Skystar delivered to the CGPN Shareholders prior to
the
Closing fully and fairly reflect the transactions to which Skystar is a party
or
by which they or their properties are bound and there shall be no material
difference between the unaudited financials of Skystar given to CGPN and
the
actual reviewed US GAAP results of Skystar for the six month period ended
June
30, 2005.
2.7
Intellectual
Property.
Skystar
has no knowledge of any claim that, or inquiry as to whether, any product,
activity or operation of Skystar infringes upon or involves, or has resulted
in
the infringement of, any trademarks, trade-names, service marks, patents,
copyrights or other proprietary rights of any other person, corporation or
other
entity; and no proceedings have been instituted, are pending or are threatened.
2.8
Litigation.
Skystar
is not subject to any judgment or order of any court or quasijudicial or
administrative agency of any jurisdiction, domestic or foreign, nor is there
any
charge, complaint, lawsuit or governmental investigation pending against
Skystar. Skystar is not a plaintiff in any action, domestic or foreign, judicial
or administrative. There are no existing actions, suits, proceedings against
or
investigations of Skystar, and Skystar knows of no basis for such actions,
suits, proceedings or investigations. There are no unsatisfied judgments,
orders, decrees or stipulations affecting Skystar or to which Skystar is
a
party.
2.9
Legal
Compliance.
To the
best knowledge of Skystar, after due investigation, no claim has been filed
against Skystar alleging a violation of any applicable laws and regulations
of
foreign, federal, state and local governments and all agencies thereof. Skystar
hold all of the material permits, licenses, certificates or other authorizations
of foreign, federal, state or local governmental agencies required for the
conduct of their respective businesses as presently conducted.
2.10
Contracts.
Skystar
has delivered to CGPN copies of each and every:
(a)
|
Contract
or series of related contracts with Xian Tianxing Bio-Pharmaceutical
Co.,
Ltd., a Chinese company; and
|
(b)
|
material
agreement of Skystar not made in the ordinary course of
business.
|
All
of
the foregoing are referred to as the “Contracts.” The copies of each of the
Contracts delivered are accurate and complete. Each Contract is in full force
and effect and constitutes a legal, valid and binding obligation of, and
is
legally enforceable against, the respective parties thereto. There is no
material default with respect to any such contract which will give rise to
liability in respect thereof on the part of Skystar or the other parties
thereto. No notice of default or similar notice has been given or received
by
Skystar under any of such contracts.
3
2.11
Disclosure.
The
representations and warranties and statements of fact made by Skystar in
this
Agreement are, as applicable, accurate, correct and complete and do not contain
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements and information contained herein
not
false or misleading.
ARTICLE
3
REPRESENTATIONS
AND WARRANTIES
OF
THE SKYSTAR SHAREHOLDERS
The
Skystar Shareholders hereby represent and warrant to CGPN as
follows:
3.1
Ownership
of the Skystar Shares.
Each
Skystar Shareholder owns, beneficially and of record, good and marketable
title
to the Skystar Shares set forth opposite such Skystar Shareholder’s name in
Column I on Schedule I attached hereto, free and clear of all security
interests, liens, adverse claims, encumbrances, equities, proxies, options
or
stockholders’ agreements. Each Skystar Shareholder represents that such person
has no right or claims whatsoever to any shares of Skystar capital stock,
other
than shares listed across such Skystar Shareholder on Schedule I and does
not
have any options, warrants or any other instruments entitling such Skystar
Shareholder to exercise to purchase or convert into shares of Skystar capital
stock. At the Closing, the Skystar Shareholders will convey to CGPN good
and
marketable title to the Skystar Shares, free and clear of any security
interests, liens, adverse claims, encumbrances, equities, proxies, options,
stockholders’ agreements or restrictions.
3.2
Authority
Relative to this Agreement.
This
Agreement has been duly and validly executed and delivered by each Skystar
Shareholder and constitutes a valid and binding agreement of each Skystar
Shareholder, enforceable against each Skystar Shareholder in accordance with
its
terms, except as such enforcement may be limited by bankruptcy, insolvency
or
other similar laws affecting the enforcement of creditors’ rights generally or
by general principles of equity.
3.3
Restricted
Securities.
Each
Skystar Shareholder acknowledges that the CGPN Shares will not be registered
pursuant to the Securities Act of 1933, as amended (the “Securities Act”) or any
applicable state securities laws, that the CGPN Shares will be characterized
as
“restricted securities” under federal securities laws, and that under such laws
and applicable regulations the CGPN Shares cannot be sold or otherwise disposed
of without registration under the Securities Act or an exemption therefrom.
In
this regard, each Skystar Shareholder is familiar with Rule 144 promulgated
under the Securities Act, as currently in effect, and understands the resale
limitations imposed thereby and by the Securities Act.
3.4
Accredited
Investor.
Each
Skystar Shareholder is an “Accredited Investor” as that term is defined in rule
501 of Regulation D promulgated under the Securities Act. Each Skystar
Shareholder is able to bear the economic risk of acquiring the CGPN Shares
pursuant to the terms of this Agreement, including a complete loss of such
Skystar Shareholder’s investment in the CGPN Shares.
4
3.5
Legend.
Each
Skystar Shareholder acknowledges that the certificate(s) representing such
Skystar Shareholder’s pro rata portion of the CGPN Shares shall each
conspicuously set forth on the face or back thereof a legend in substantially
the following form:
THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER
SAID
ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
ARTICLE
4
REPRESENTATIONS
AND WARRANTIES OF
CGPN
AND THE CGPN STOCKHOLDERS
CGPN
and
the CGPN Stockholders hereby represent and warrant, jointly and severally,
to
Skystar and the Skystar Shareholders as follows:
4.1
Organization.
CGPN is
a corporation duly organized, validly existing and in good standing under
the
laws of the state of its incorporation, and has the requisite corporate power
to
carry on its business as now conducted.
4.2
Capitalization.
CGPN’s
authorized capital stock consists of 550,000,000 shares of capital stock,
of
which 500,000,000 shares are designated as Common Stock, of which 500,000,000
shares are issued and outstanding and of which 50,000,000 shares are designated
as Preferred Stock, of which 2,000,000 shares of Preferred Stock are issued
and
outstanding. When issued, the CGPN Shares and the securities into which the
CGPN
Shares can be converted into will be duly authorized, validly issued, fully
paid, non-assessable and free of preemptive rights. There are no outstanding
or
authorized options, rights, warrants, calls, convertible securities, rights
to
subscribe, conversion rights or other agreements or commitments to which
CGPN is
a party or which are binding upon CGPN providing for the issuance by CGPN
or
transfer by CGPN of additional shares of CGPN’s capital stock and CGPN has not
reserved any shares of its capital stock for issuance, nor are there any
outstanding stock option rights, phantom equity or similar rights, contracts,
arrangements or commitments to issue capital stock of CGPN. There are no
voting
trusts or any other agreements or understandings with respect to the voting
of
CGPN’s capital stock. There are no obligations of CGPN to repurchase, redeem or
otherwise require any shares of its capital stock as of the Closing. At the
time
of closing, no shares of Preferred Stock will be issued and outstanding other
than the Preferred Stock to be issued pursuant to Section 1.1 of this
Agreement.
4.3
Certain
Corporate Matters.
CGPN is
duly licensed or qualified to do business and is in good standing as a foreign
corporation in every jurisdiction in which the character of CGPN’s properties or
nature of CGPN’s business requires it to be so licensed or qualified other than
such jurisdictions in which the failure to be so licensed or qualified does
not,
or insofar as can reasonably be foreseen, in the future will not, have a
material adverse effect on its financial condition, results of operations
or
business. CGPN has full corporate power and authority and all authorizations,
licenses and permits necessary to carry on the business in which it is engaged
or in which it proposes presently to engage and to own and use the properties
owned and used by it. CGPN has delivered to Skystar true, accurate and complete
copies of its certificate or articles of incorporation and bylaws, which
reflect
all restatements of and amendments made thereto at any time prior to the
date of
this Agreement. The records of meetings of the stockholders and Board of
Directors of CGPN are complete and correct in all material respects. The
stock
records of CGPN and the stockholder lists of CGPN that CGPN has previously
furnished to Skystar are complete and correct in all material respects and
accurately reflect the record ownership and the beneficial ownership of all
the
outstanding shares of CGPN’s capital stock and any other outstanding securities
issued by CGPN. CGPN is not in default under or in violation of any provision
of
its certificate or articles of incorporation or bylaws in any material respect.
CGPN is not in any material default or in violation of any restriction, lien,
encumbrance, indenture, contract, lease, sublease, loan agreement, note or
other
obligation or liability by which it is bound or to which any of its assets
is
subject.
5
4.4
Authority
Relative to this Agreement.
Each of
CGPN and the CGPN Stockholders has the requisite power and authority to enter
into this Agreement and carry out its or his obligations hereunder. The
execution, delivery and performance of this Agreement by CGPN and the
consummation of the transactions contemplated hereby have been duly authorized
by the Board of Directors of CGPN and no other actions on the part of CGPN
are
necessary to authorize this Agreement or the transactions contemplated hereby.
This Agreement has been duly and validly executed and delivered by CGPN and
the
CGPN Stockholders and constitutes a valid and binding obligation of CGPN
and
each CGPN Stockholder, enforceable in accordance with its terms, except as
such
enforcement may be limited by bankruptcy, insolvency or other similar laws
affecting the enforcement of creditors’ rights generally or by general
principles of equity.
4.5
Consents
and Approvals; No Violations.
Except
for applicable requirements of federal securities laws and state securities
or
blue-sky laws, no filing with, and no permit, authorization, consent or approval
of, any third party, public body or authority is necessary for the consummation
by CGPN of the transactions contemplated by this Agreement. Neither the
execution and delivery of this Agreement by CGPN nor the consummation by
CGPN of
the transactions contemplated hereby, nor compliance by CGPN with any of
the
provisions hereof, will (a) conflict with or result in any breach of any
provisions of the charter or Bylaws of CGPN, (b) result in a violation or
breach
of, or constitute (with or without due notice or lapse of time or both) a
default (or give rise to any right of termination, cancellation or acceleration)
under, any of the terms, conditions or provisions of any note, bond, mortgage,
indenture, license, contract, agreement or other instrument or obligation
to
which CGPN or any Subsidiary (as hereinafter defined) is a party or by which
they any of their respective properties or assets may be bound or (c) violate
any order, writ, injunction, decree, statute, rule or regulation applicable
to
CGPN or any Subsidiary, or any of their respective properties or assets,
except
in the case of clauses (b) and (c) for violations, breaches or defaults which
are not in the aggregate material to CGPN or any Subsidiary taken as a
whole.
4.6
SEC
Documents.
CGPN
hereby makes reference to the following documents filed with the United States
Securities and Exchange Commission (the “SEC”), as posted on the SEC’s website,
xxx.xxx.xxx:
(collectively, the “SEC Documents”): (a) Registration Statement on Form 10SB as
filed on November 11, 1999, and all amendments thereto; (b) Annual Report
on
Form 10-KSB for the fiscal year ended December 31, 2004, 2003, 2002, and
2001
and any amendments thereto; (c) Quarterly Reports on Form 10-QSB for the
periods
ended March 31, 2005, 2004, 2003, 2002, 2001, June 30, 2004, 2003, 2002,
2001,
September 30, 2004, 2003, 2002, 2001, and any amendments thereto; and (d)
Current Reports on Form 8K filed in 2001 through the date of Closing. The
SEC
Documents constitute all of the documents and reports that CGPN was required
to
file with the SEC pursuant to the Securities Exchange Act of 1934 (“Exchange
Act”) and the rules and regulations promulgated thereunder by the SEC since the
effectiveness of CGPN’s Form 10SB. As of their respective dates, the SEC
Documents complied in all material respects with the requirements of the
Securities Act and/or the Exchange Act, as the case may require, and the
rules
and regulations promulgated thereunder and none of the SEC Documents contained
an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein,
in
light of the circumstances under which they were made, not misleading. The
consolidated financial statements of CGPN included in the SEC Documents comply
as to form in all material respects with applicable accounting requirements
and
the published rules and regulations of the SEC with respect thereto, have
been
prepared in accordance with generally accepted accounting principles in the
United States (except, in the case of unaudited statements, as permitted
by the
applicable form under the Securities Act and/or the Exchange Act) applied
on a
consistent basis during the periods involved (except as may be indicated
in the
notes thereto) and fairly present the financial position of CGPN as of the
dates
thereof and its consolidated statements of operations, stockholders’ equity and
cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal and recurring year-end audit adjustments which were
and
are not expected to have a material adverse effect on CGPN, its business,
financial condition or results of operations). Except as and to the extent
set
forth on the consolidated balance sheet of CGPN as of December 31, 2004,
including the notes thereto, CGPN has no liability or obligation of any nature
(whether accrued, absolute, contingent or otherwise and whether required
to be
reflected on a balance sheet or not).
6
4.7
Financial
Statements.
(a) Included
in the SEC Documents are the audited consolidated balance sheet of CGPN as
at
December 31, 2004 and 2003, and the related statement of operations,
stockholders’ equity and cash flows for the two years then ended, together with
the unqualified report thereon (except with respect to continuation as a
going
concern) of Xxxxxxxx & Company (“Xxxxxxxx”), independent auditors
(collectively, “CGPN’s Audited Financials”).
(b) Included
in the SEC Documents are the unaudited consolidated balance sheet of CGPN
as at
March 31, 2005, and the related statement of operations, stockholders’ equity
and cash flows for the three months then ended, as reviewed by Xxxxxx (“CGPN’s
Interim Financials”).
(c) CGPN’s
Audited Financials and CGPN’s Interim Financials (collectively “CGPN’s Financial
Statements”) are (i) in accordance with the books and records of CGPN, (ii)
correct and complete, (iii) fairly present the financial position and results
of
operations of CGPN and each Subsidiary as of the dates indicated, and (iv)
prepared in accordance with U.S. GAAP (except that (x) unaudited financial
statements may not be in accordance with GAAP because of the absence of
footnotes normally contained therein, and (y) interim (unaudited) financials
are
subject to normal year-end audit adjustments that in the aggregate will not
have
a material adverse effect on CGPN or any Subsidiary, their respective
businesses, financial conditions or results of operations.
4.8
Events
Subsequent to Financial Statements.
Except
as disclosed in Schedule 4.8, since December 31, 2004, there has not
been:
(a) Any
sale,
lease, transfer, license or assignment of any assets, tangible or intangible,
of
CGPN or any Subsidiary;
(b)
Any
damage, destruction or property loss, whether or not covered by insurance,
affecting adversely the properties or business of CGPN or any
Subsidiary;
(c)
Any
declaration or setting aside or payment of any dividend or distribution with
respect to the shares of capital stock of CGPN or any Subsidiary or any
redemption, purchase or other acquisition of any such shares;
7
(d)
Any
subjection to any lien on any of the assets, tangible or intangible, of CGPN
or
any Subsidiary;
(e)
Any
incurrence of indebtedness or liability or assumption of obligations by CGPN
or
any Subsidiary;
(f)
Any
waiver or release by CGPN or any Subsidiary of any right of any material
value;
(g)
Any
compensation or benefits paid to officers or directors of CGPN or any
Subsidiary;
(h)
Any
change made or authorized in the Certificate of Incorporation or Bylaws of
CGPN
or any Subsidiary;
(i)
Any
loan
to or other transaction with any officer, director or stockholder of CGPN
or any
Subsidiary giving rise to any claim or right of CGPN or any Subsidiary against
any such person or of such person against CGPN or any Subsidiary;
or
(j)
Any
material adverse change in the condition (financial or otherwise) of the
respective properties, assets, liabilities or business of CGPN or any
Subsidiary.
4.9
Liabilities.
Except
as otherwise disclosed in CGPN’s Financial Statements, neither CGPN nor any
Subsidiary has any liability or obligation whatsoever, either direct or
indirect, matured or unmatured, accrued, absolute, contingent or otherwise.
In
addition, CGPN and the CGPN Stockholders represent that upon Closing, neither
CGPN nor any Subsidiary will have any liability or obligation whatsoever,
either
direct or indirect, matured or unmatured, accrued, absolute, contingent or
otherwise.
4.10
Tax
Matters.
Except
as disclosed in Schedule 4.10:
(a)
CGPN
and
each Subsidiary have duly filed all material federal, state, local and foreign
tax returns required to be filed by or with respect to them with the Internal
Revenue Service or other applicable taxing authority, and no extensions with
respect to such tax returns have been requested or granted;
(b)
CGPN
and
each Subsidiary have paid, or adequately reserved against in CGPN’s Financial
Statements, all material taxes due, or claimed by any taxing authority to
be
due, from or with respect to them;
(c)
To
the
best knowledge of CGPN, there has been no material issue raised or material
adjustment proposed (and none is pending) by the Internal Revenue Service
or any
other taxing authority in connection with any of CGPN’s or any Subsidiary’s tax
returns;
8
(d)
No
waiver
or extension of any statute of limitations as to any material federal, state,
local or foreign tax matter has been given by or requested from CGPN or any
Subsidiary; and
For
the
purposes of this Section
4.10,
a tax
is due (and must therefore either be paid or adequately reserved against
in
CGPN’s Financial Statements) only on the last date payment of such tax can be
made without interest or penalties, whether such payment is due in respect
of
estimated taxes, withholding taxes, required tax credits or any other
tax.
4.11
Real
Property.
Neither
CGPN nor any Subsidiary owns or leases any real property.
4.12
Books
and Records.
The
books and records of CGPN and each Subsidiary delivered to the Skystar
Shareholders prior to the Closing fully and fairly reflect the transactions
to
which CGPN each Subsidiary is a party or by which they or their properties
are
bound.
4.13
Questionable
Payments.
Neither
CGPN or any Subsidiary, nor any employee, agent or representative of CGPN
or any
Subsidiary has, directly or indirectly, made any bribes, kickbacks, illegal
payments or illegal political contributions using Company funds or made any
payments from CGPN’s or any Subsidiary’s funds to governmental officials for
improper purposes or made any illegal payments from CGPN’s or any Subsidiary’s
funds to obtain or retain business.
4.14
RESERVED
4.15
Intellectual
Property.
Neither
CGPN nor any Subsidiary owns or uses any trademarks, trade names, service
marks,
patents, copyrights or any applications with respect thereto. CGPN and the
CGPN
Stockholders have no knowledge of any claim that, or inquiry as to whether,
any
product, activity or operation of CGPN or any Subsidiary infringes upon or
involves, or has resulted in the infringement of, any trademarks, trade-names,
service marks, patents, copyrights or other proprietary rights of any other
person, corporation or other entity; and no proceedings have been instituted,
are pending or are threatened.
4.16
Insurance.
Neither
CGPN nor any Subsidiary has any insurance policies in effect.
4.17
Contracts.
Except
as set forth on Schedule
4.17,
neither
CGPN nor any Subsidiary has any material contracts, leases, arrangements
or
commitments (whether oral or written). Neither CGPN nor any Subsidiary is
a
party to or bound by or affected by any contract, lease, arrangement or
commitment (whether oral or written) relating to: (a) the employment of any
person; (b) collective bargaining with, or any representation of any employees
by, any labor union or association; (c) the acquisition of services, supplies,
equipment or other personal property; (d) the purchase or sale of real property;
(e) distribution, agency or construction; (f) lease of real or personal property
as lessor or lessee or sublessor or sublessee; (g) lending or advancing of
funds; (h) borrowing of funds or receipt of credit; (i) incurring any obligation
or liability; or (j) the sale of personal property.
9
4.18
Litigation.
Neither
CGPN nor any Subsidiary is subject to any judgment or order of any court
or
quasijudicial or administrative agency of any jurisdiction, domestic or foreign,
nor is there any charge, complaint, lawsuit or governmental investigation
pending against CGPN or any Subsidiary. Neither CGPN nor any Subsidiary is
a
plaintiff in any action, domestic or foreign, judicial or administrative.
There
are no existing actions, suits, proceedings against or investigations of
CGPN or
any Subsidiary, and CGPN knows of no basis for such actions, suits, proceedings
or investigations. There are no unsatisfied judgments, orders, decrees or
stipulations affecting CGPN or any Subsidiary or to which CGPN or any Subsidiary
is a party.
4.19
Employees.
Neither
CGPN nor any Subsidiary has any employees. Neither CGPN nor any Subsidiary
owes
any compensation of any kind, deferred or otherwise, to any current or previous
employees. Neither CGPN nor any Subsidiary has a written or oral employment
agreement with any officer or director of CGPN or any Subsidiary. Neither
CGPN
nor any Subsidiary is a party to or bound by any collective bargaining
agreement. Except as set forth on Schedule
4.19,
there
are no loans or other obligations payable or owing by CGPN or any Subsidiary
to
any stockholder, officer, director or employee of CGPN or any Subsidiary,
nor
are there any loans or debts payable or owing by any of such persons to CGPN
or
any Subsidiary or any guarantees by CGPN or any Subsidiary of any loan or
obligation of any nature to which any such person is a party.
4.20
Employee
Benefit Plans.
Neither
CGPN nor any Subsidiary has any (a) non-qualified deferred or incentive
compensation or retirement plans or arrangements, (b) qualified retirement
plans
or arrangements, (c) other employee compensation, severance or termination
pay
or welfare benefit plans, programs or arrangements or (d) any related trusts,
insurance contracts or other funding arrangements maintained, established
or
contributed to by CGPN or any Subsidiary.
4.21
Legal
Compliance.
To the
best knowledge of CGPN, after due investigation, no claim has been filed
against
CGPN or any Subsidiary alleging a violation of any applicable laws and
regulations of foreign, federal, state and local governments and all agencies
thereof. CGPN and each Subsidiary hold all of the material permits, licenses,
certificates or other authorizations of foreign, federal, state or local
governmental agencies required for the conduct of their respective businesses
as
presently conducted.
4.22 Subsidiaries
and Investments.
(a) Except
as
set forth in Schedule 4.22(a), CGPN does not own any capital stock or have
any
interest of any kind whatsoever in any corporation, partnership, or other
form
of business organization (any such organization is referred to as a
“Subsidiary”).
(b) Schedule
4.22(b) sets forth true and complete copies of the charter of each Subsidiary,
as well as any limited liability company agreement, operating agreement or
shareholder agreement relating to such Subsidiary, and any acquisition agreement
relating to any Subsidiary. All corporate or other action that has been taken
by
any Subsidiary has been duly authorized and does not conflict with or violate
any provision of its charter, bylaws or other organizational
documents.
(c) Each
Subsidiary (i) is duly organized and validly existing under the laws of its
jurisdiction of organization, (ii) has all requisite and necessary power
and
authority to own, operate or lease those assets or properties which are owned,
operated or leased by it and to conduct its business as it has been and
currently is being conducted, (iii) is qualified to do business in all
jurisdictions where the failure to be so qualified would have a material
adverse
effect on its business.
10
(d) Except
as
set forth in Schedule 4.22(d), all outstanding shares of capital stock or
other
ownership interests of each Subsidiary are validly issued, fully paid,
nonassessable and free of preemptive rights and are owned (either directly
or
indirectly) by CGPN without any encumbrances.
(e) Except
as
set forth in Schedule 4.22(e), there are no outstanding securities convertible
into or exchangeable for the capital stock of or other equity interests in
any
Subsidiary and no outstanding options, rights, subscriptions, calls commitments,
warrants or rights of any character for CGPN, any Subsidiary or any other
person
or entity to purchase, subscribe for or to otherwise acquire any shares of
such
stock or other securities of any Subsidiary.
(f) Except
as
set forth in Schedule 4.22(f), there are no outstanding agreements affecting
or
relating to the voting, issuance, purchase, redemption, repurchase or transfer
of any capital stock of or other equity interests in any
Subsidiary.
(g) Each
Subsidiary’s stock register or similar register of ownership has complete and
accurate records indicating the following: (i) the name and address of each
person or entity owning shares of capital stock or other equity interest
of the
Subsidiary and (ii) the certificate number of each certificate evidencing
shares
of capital stock or other equity interest issued by the Subsidiary, the number
of shares or other equity interests evidenced by each such certificate, the
date
of issuance of such certificate, and, if applicable, the date of cancellation.
Copies of same have been made available to Skystar.
4.23
Broker’s
Fees.
Neither
CGPN, nor anyone on its behalf has any liability to any broker, finder,
investment banker or agent, or has agreed to pay any brokerage fees, finder’s
fees or commissions, or to reimburse any expenses of any broker, finder,
investment banker or agent in connection with this Agreement.
4.24
Internal
Accounting Controls.
CGPN
maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity
with
GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and (iv)
the recorded accountability for assets is compared with the existing assets
at
reasonable intervals and appropriate action is taken with respect to any
differences.
CGPN has
established disclosure controls and procedures (as defined in Exchange Act
Rules
13a-15(e) and 15d-15(e)) for CGPN and designed such disclosure controls and
procedures to ensure that material information relating to CGPN is made known
to
the certifying officers by others within those entities, particularly during
the
period in which the CGPN’s Form 10-KSB or 10-QSB, as the case may be, is being
prepared. CGPN’s certifying officers have evaluated the effectiveness of CGPN’s
controls and procedures as of end of the filing period prior to the filing
date
of the Form 10-QSB for the quarter ended March 31, 2004 (such date, the
“Evaluation
Date”).
CGPN
presented in its most recently filed Form 10-KSB or Form 10-QSB the conclusions
of the certifying officers about the effectiveness of the disclosure controls
and procedures based on their evaluations as of the Evaluation Date. Since
the
Evaluation Date, there have been no significant changes in CGPN’s internal
controls (as such term is defined in Item 307(b) of Regulation S-K under
the
Exchange Act) or, to the Company’s knowledge, in other factors that could
significantly affect the Company’s internal controls.
11
4.25
Listing
and Maintenance Requirements. CGPN is currently quoted on the OTC Bulletin
Board
and CGPN has not, in the 12 months preceding the date hereof, received any
notice from the OTC Bulletin Board or the NASD or any trading market on which
CGPN’s common stock is or has been listed or quoted to the effect that CGPN is
not in compliance with the quoting, listing or maintenance requirements of
the
OTCBB or such other trading market. CGPN is, and has no reason to believe
that
it will not, in the foreseeable future continue to be, in compliance with
all
such quoting, listing and maintenance requirements.
4.26
Application
of Takeover Protections.
CGPN
and its board of directors have taken all necessary action, if any, in order
to
render inapplicable any control share acquisition, business combination,
poison
pill (including any distribution under a rights agreement) or other similar
anti-takeover provision under CGPN’s certificate or articles of incorporation
(or similar charter documents) or the laws of its state of incorporation
that is
or could become applicable to Skystar or the Skystar Shareholders as a result
of
the Acquisition or the exercise of any rights by Skystar or the Skystar
Shareholders pursuant to this Agreement.
4.27
No
SEC
or NASD Inquiries.
Neither
CGPN nor any of its past or present officers or directors is, or has ever
been,
the subject of any formal or informal inquiry or investigation by the SEC
or
NASD.
4.28
Disclosure.
The
representations and warranties and statements of fact made by CGPN in this
Agreement are, as applicable, accurate, correct and complete and do not contain
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements and information contained herein
not
false or misleading.
ARTICLE
5
INDEMNIFICATION
5.1
CGPN
Stockholders Indemnification.
For a
period of two years after the Closing, the CGPN Stockholders (each an
“Indemnifying Party”) jointly and severally agree to indemnify Skystar, the
Skystar Shareholders and each of the officers, agents and directors of Skystar
or the Skystar Shareholders against any loss, liability, claim, damage or
expense (including, but not limited to, any and all expenses whatsoever
reasonably incurred in investigating, preparing or defending against any
litigation, commenced or threatened, or any claim whatsoever) (each an
“Indemnified Party”) to which it or they may become subject arising out of or
based on either (i) any breach of or inaccuracy in any of the representations
and warranties or covenants or conditions made by CGPN and/or the CGPN
Stockholders herein in this Agreement; or (ii) any and all liabilities arising
out of or in connection with: (A) any of the assets of CGPN or any Subsidiary
prior to the Closing; or (B) the operations of CGPN prior to the Closing
(the
“CGPN Stockholders Indemnification”).
5.2
Indemnification
Procedures.
If any
action shall be brought against any Indemnified Party in respect of which
indemnity may be sought pursuant to this Agreement, such Indemnified Party
shall
promptly notify the Indemnifying Party in writing, and the Indemnifying Party
shall have the right to assume the defense thereof with counsel of its own
choosing. Any Indemnified Party shall have the right to employ separate counsel
in any such action and participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party
except to the extent that the employment thereof has been specifically
authorized by the Indemnifying Party in writing, the Indemnifying Party has
failed after a reasonable period of time to assume such defense and to employ
counsel or in such action there is, in the reasonable opinion of such separate
counsel, a material conflict on any material issue between the position of
the
Indemnifying Party and the position of such Indemnified Party. The Indemnifying
Party will not be liable to any Indemnified Party under this Article 5 for
any
settlement by an Indemnified Party effected without the Indemnifying Party’s
prior written consent, which shall not be unreasonably withheld or delayed;
or
to the extent, but only to the extent that a loss, claim, damage or liability
is
attributable to any Indemnified Party’s indemnification pursuant to this Article
5.
12
ARTICLE
6
COVENANTS
AND AGREEMENTS OF THE PARTIES
EFFECTIVE
PRIOR TO CLOSING
6.1
Corporate
Examinations and Investigations.
Prior
to the Closing, each party shall be entitled, through its employees and
representatives, to make such investigations and examinations of the books,
records and financial condition of Skystar and CGPN (and any Subsidiary)
as each
party may request. In order that each party may have the full opportunity
to do
so, Skystar and CGPN, the Skystar Shareholders and the CGPN Stockholders
shall
furnish each party and its representatives during such period with all such
information concerning the affairs of Skystar or CGPN or any Subsidiary as
each
party or its representatives may reasonably request and cause Skystar or
CGPN
and their respective officers, employees, consultants, agents, accountants
and
attorneys to cooperate fully with each party’s representatives in connection
with such review and examination and to make full disclosure of all information
and documents requested by each party and/or its representatives. Any such
investigations and examinations shall be conducted at reasonable times and
under
reasonable circumstances, it being agreed that any examination of original
documents will be at each party’s premises, with copies thereof to be provided
to each party and/or its representatives upon request.
6.2
Cooperation;
Consents.
Prior
to the Closing, each party shall cooperate with the other parties to the
end
that the parties shall (i) in a timely manner make all necessary filings
with,
and conduct negotiations with, all authorities and other persons the consent
or
approval of which, or the license or permit from which is required for the
consummation of the Acquisition and (ii) provide to each other party such
information as the other party may reasonably request in order to enable
it to
prepare such filings and to conduct such negotiations.
6.3
Conduct
of Business.
Subject
to the provisions hereof, from the date hereof through the Closing, each
party
hereto shall (i) conduct its business in the ordinary course and in such
a
manner so that the representations and warranties contained herein shall
continue to be true and correct in all material respects as of the Closing
as if
made at and as of the Closing and (ii) not enter into any material transactions
or incur any material liability not required or specifically contemplated
hereby, without first obtaining the written consent of Skystar and the Skystar
Shareholders on the one hand and CGPN and the CGPN Stockholders on the other
hand. Without the prior written consent of Skystar, the Skystar Stockholders,
CGPN or the CGPN Stockholders, except as required or specifically contemplated
hereby, each party shall not undertake or fail to undertake any action if
such
action or failure would render any of said warranties and representations
untrue
in any material respect as of the Closing.
6.4
Litigation.
From
the date hereof through the Closing, each party hereto shall promptly notify
the
representative of the other parties of any lawsuits, claims, proceedings
or
investigations which after the date hereof are threatened or commenced against
such party or any of its affiliates or any officer, director, employee,
consultant, agent or shareholder thereof, in their capacities as such, which,
if
decided adversely, could reasonably be expected to have a material adverse
effect upon the condition (financial or otherwise), assets, liabilities,
business, operations or prospects of such party or any of its
subsidiaries.
13
6.5
Notice
of Default.
From
the date hereof through the Closing, each party hereto shall give to the
representative of the other parties prompt written notice of the occurrence
or
existence of any event, condition or circumstance occurring which would
constitute a violation or breach of this Agreement by such party or which
would
render inaccurate in any material respect any of such party’s representations or
warranties herein.
6.6
Certificate
of Designation.
CGPN
shall cause the Certificate of Designation (hereinafter defined) to be duly
filed with the Secretary of State of the State of Delaware prior to the Closing
of the Acquisition.
6.7
Retention
of 2 Former Board of Directors.
From
the Closing Date until 1 year anniversary of the Closing Date, Skystar and
the
Skystar Shareholders hereby agree to vote any and all of its shares to elect
and
retain R. Xxxxx Xxxxxx and Xxxxx Xxxx as members of the board of directors
of
CGPN.
ARTICLE
7
CONDITIONS
TO CLOSING
7.1
Conditions
to Obligations of Skystar and the Skystar Shareholders.
The
obligations of Skystar and the Skystar Shareholders under this Agreement
shall
be subject to each of the following conditions:
(a)
Closing
Deliveries.
At the
Closing, CGPN and/or the CGPN Stockholders shall have delivered or caused
to be
delivered to Skystar and the Skystar Stockholders the following:
(i)
resolutions
duly adopted by the Board of Directors of CGPN authorizing and approving
the
Acquisition and the execution, delivery and performance of this
Agreement;
(ii)
a
certificate of good standing for CGPN and each Subsidiary from their respective
jurisdictions of incorporation, dated not earlier than five days prior to
the
Closing Date;
(iii)
written
resignations of all officers and directors of CGPN (other than R. Xxxxx Xxxxxx
and Xxxxx Xxxx as directors of CGPN) and each Subsidiary in office immediately
prior to the Closing, and board resolutions electing the following individuals
to the positions with CGPN and each Subsidiary listed opposite their names
below:
Xx. Xxxxxxx XX | Director & CEO | |
Xx. Xxx XXX | Director | |
Xx. Xxxxx XXXXX | Director | |
Xx. Xxxx XXX | Director & CFO |
(iv) stock
certificates representing the CPGN Shares to be delivered pursuant to this
Agreement registered with the names set forth in Schedule I;
14
(v)
this
Agreement and the Escrow Agreement duly executed by CGPN and the CGPN
Stockholders;
(vi) all
corporate records, agreements, seals and any other information reasonably
requested by Skystar’s representatives with respect to CGPN;
(vii) such
other documents as Skystar and/or the Skystar Shareholders may reasonably
request in connection with the transactions contemplated hereby;
and
(viii)
a
release
without prejudice with respect to any and all claims against CGPN whether
actual
or contingent that is satisfactory to Skystar legal counsel, at his sole
discretion.
(b)
Representations
and Warranties to be True.
The
representations and warranties of CGPN and the CGPN Stockholders herein
contained shall be true in all material respects at the Closing with the
same
effect as though made at such time. CGPN and the CGPN Stockholders shall
have
performed in all material respects all obligations and complied in all material
respects with all covenants and conditions required by this Agreement to
be
performed or complied with by them at or prior to the Closing.
(c)
Assets
and Liabilities. At
the
Closing, neither CGPN nor any Subsidiary shall have any material assets or
liabilities, contingent or otherwise, or any tax obligations or any material
changes to its business or financial condition.
(c)
SEC
Filings.
At the
Closing, CGPN will be current in all SEC filings required by it to be filed,
and
will have filed its Quarterly Report on Form 10-QSB for the period ended
June
30, 2005.
(e)
Filing
of Certificate of Designation.
CGPN or
its officers shall have cause the certificate of designation in the form
attached as Exhibit
A
hereto
(“Certificate of Designation”), setting forth the rights, preferences and
privileges of the Series B Preferred Stock of CGPN, to be effective and filed
with the Secretary of State of the State of Delaware.
(f)
Due
Diligence.
Skystar
shall have delivered a written notice prior to or at Closing stating that
it is
fully satisfied with its due diligence of CGPN.
(g)
Preferred
Shares.
All
2,000,000 shares of Preferred Shares issued and outstanding shall either:
(i)
have been converted to common stock; or (ii) redeemed, rescinded or
cancelled.
7.2
Conditions
to Obligations of CGPN and the CGPN Stockholders.
The
obligations of CGPN and the CGPN Stockholders under this Agreement shall
be
subject to each of the following conditions:
(a)
Closing
Deliveries.
On the
Closing Date, Skystar and/or the Skystar Shareholders shall have delivered
to
CGPN the following:
15
(i)
|
this
Agreement duly executed by Skystar and the Skystar Shareholders;
|
(ii)
|
stock
certificates representing the Skystar Shares to be delivered pursuant
to
this Agreement duly endorsed or accompanied by duly executed stock
powers;
and
|
(ii) |
such
other documents as CGPN may reasonably request in connection with
the
transactions contemplated hereby.
|
(b)
Representations
and Warranties to be True.
The
representations and warranties of Skystar and the Skystar Shareholders herein
contained shall be true in all material respects at the Closing with the
same
effect as though made at such time. Skystar and the Skystar Shareholders
shall
have performed in all material respects all obligations and complied in all
material respects with all covenants and conditions required by this Agreement
to be performed or complied with by them at or prior to the
Closing.
(c)
Due
Diligence.
CGPN
shall have delivered a written notice prior to or at Closing stating that
it is
fully satisfied with its due diligence of Skystar.
ARTICLE
8
OTHER
COVENANTS AND AGREEMENTS
8.1
Intentionally
omitted.
8.2
Annual
Meeting of Stockholders.
CGPN
shall use its reasonable best efforts to (a) hold its annual meeting of
stockholders as soon as practicable following the Closing of the Acquisition,
and (b) put forth, and have its board of directors recommend, a proposal
to the
stockholders to amend CGPN’s charter in order to increase the authorized number
of shares of CGPN common stock to a number sufficient to allow conversion
of all
CGPN Shares into shares of common stock of CGPN.
8.3
Conversion
of CGPN Shares.
CGPN
shall take any and all actions reasonably necessary to facilitate and permit
the
conversion of CGPN Shares into shares of CGPN common stock in accordance
with
this Agreement and the Certificate of Designation, as soon as practicable
after
the Closing of the Acquisition.
8.4
Subsequent
Equity Issuances.
From
the date of the Closing until 12 months after the Closing, CGPN shall not,
without the prior written consent from one of the CGPN Shareholders, issue
an
amount of shares of CGPN’s common stock in excess of 5% of the issued and
outstanding common stock of CGPN as of the date of the Closing to any person;
provided,
however,
this
provision shall not apply to the following issuances: (i) common stock issued
in
connection with a public or private offering of CGPN’s common stock for the
purpose of raising capital; (ii) common stock issued in connection with a
merger
or acquisition consistent with its plan of operations; (iii) common stock
issued
in connection with any recapitalization of CGPN’s common stock; or (iv) of up to
5% of the issued and outstanding common stock of CGPN as of the date of the
Closing to CGPN’s consultants and advisors.
16
ARTICLE
9
GENERAL
PROVISIONS
9.1
Notices.
All
notices and other communications hereunder shall be in writing and shall
be
deemed to have been duly given if delivered personally, sent by overnight
courier or mailed by registered or certified mail (postage prepaid and return
receipt requested) to the party to whom the same is so delivered, sent or
mailed
at addresses set forth on the signature page hereof (or at such other address
for a party as shall be specified by like notice).
9.2
Interpretation.
The
headings contained in this Agreement are for reference purposes only and
shall
not affect in any way the meaning or interpretation of this Agreement.
References to Sections and Articles refer to sections and articles of this
Agreement unless otherwise stated.
9.3
Severability.
If any
term, provision, covenant or restriction of this Agreement is held by a court
of
competent jurisdiction to be invalid, void or unenforceable, the remainder
of
the terms, provisions, covenants and restrictions of this Agreement shall
remain
in full force and effect and shall in no way be affected, impaired or
invalidated and the parties shall negotiate in good faith to modify this
Agreement to preserve each party’s anticipated benefits under this
Agreement.
9.4
Miscellaneous.
This
Agreement (together with all other documents and instruments referred to
herein): (a) constitutes the entire agreement and supersedes all other prior
agreements and undertakings, both written and oral, among the parties with
respect to the subject matter hereof; (b) except as expressly set forth herein,
is not intended to confer upon any other person any rights or remedies hereunder
and (c) shall not be assigned by operation of law or otherwise, except as
may be
mutually agreed upon by the parties hereto.
9.5
Separate
Counsel.
Each
party hereby expressly acknowledges that it has been advised to seek its
own
separate legal counsel for advice with respect to this Agreement, and that
no
counsel to any party hereto has acted or is acting as counsel to any other
party
hereto in connection with this Agreement.
9.6
Governing
Law; Venue.
This
Agreement shall be governed by, and construed and enforced in accordance
with,
the laws of the State of Delaware, U.S.A. Any and all actions brought under
this
Agreement shall be brought in the state and/or federal courts of the United
States sitting in the City of Orlando, Florida and each party hereby waives
any
right to object to the convenience of such venue.
9.7
Counterparts
and Facsimile Signatures.
This
Agreement may be executed in two or more counterparts, which together shall
constitute a single agreement. This Agreement and any documents relating
to it
may be executed and transmitted to any other party by facsimile, which facsimile
shall be deemed to be, and utilized in all respects as, an original, wet-inked
document.
9.8
Amendment.
This
Agreement may be amended, modified or supplemented only by an instrument
in
writing executed by all parties hereto.
17
9.9
Parties
In Interest: No Third Party Beneficiaries.
Except
as otherwise provided herein, the terms and conditions of this Agreement
shall
inure to the benefit of and be binding upon the respective heirs, legal
representatives, successors and assigns of the parties hereto. This Agreement
shall not be deemed to confer upon any person not a party hereto any rights
or
remedies hereunder.
9.10
Waiver.
No
waiver by any party of any default or breach by another party of any
representation, warranty, covenant or condition contained in this Agreement
shall be deemed to be a waiver of any subsequent default or breach by such
party
of the same or any other representation, warranty, covenant or condition.
No
act, delay, omission or course of dealing on the part of any party in exercising
any right, power or remedy under this Agreement or at law or in equity shall
operate as a waiver thereof or otherwise prejudice any of such party’s rights,
powers and remedies. All remedies, whether at law or in equity, shall be
cumulative and the election of any one or more shall not constitute a waiver
of
the right to pursue other available remedies.
9.11
Expenses.
At or
prior to the Closing, the parties hereto shall pay all of their own expenses
relating to the transactions contemplated by this Agreement, including, without
limitation, the fees and expenses of their respective counsel and financial
advisers.
[SIGNATURES
FOLLOW]
18
IN
WITNESS WHEREOF,
the
parties have executed this Agreement as of the date first written
above.
Skystar Bio-Pharmaceutical Company | ||
|
|
|
By: | /s/ Xx Xxx Bing | |
|
||
Name: Xxxxxxx
Xx
Title:
Chairman
Address:
Scotia Centre. 4/F. P.O.B. 2806
Xxxxxx
Town. Grand Caymans
Cayman
Islands
|
||
|
[SIGNATURE
PAGES OF SKYSTAR SHAREHOLDERS,
CGPN
AND
CGPN STOCKHOLDERS FOLLOW]
19
[SIGNATURE
PAGE OF SKYSTAR SHAREHOLDERS]
Skystar Shareholders | |||
/s/ Xx Xxx Bing | |||
|
|||
Upform
Group Limited
By:
Chairman
Name: Xxxxxxx
Xx
Address: Sea
Meadow House, Blackburne Highway
P.O.
Box 116, Road Town, Tortola,
British
Virgin Islands
|
/s/ Xxx Xxx | |||
|
|||
Clever
Mind International Limited
By:
Chairman
Name: Xxx
Xxx
Address: Sea
Meadow House, Blackburne Highway
P.O.
Box 116, Road Town, Tortola,
British
Virgin Islands
|
/s/ Xxxx Xxxx Tai | |||
|
|||
Xxxxxxx
Xxxx
Room
801, Jianhang Jiashu Building
Jianjia
Xiang Community, Tangfang Street
Xian,
China
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/s/ Xuejian Yuan | |||
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Xuejian
Yuan
Room
101, Xx. 00, Xxxx 000, Xxxxxxx Xxxx,
Xxxxxxxx,
Xxxxx
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/s/ Xxxxxx Xxx | |||
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Xxxxxx
Xxx
12/F,
Xx. 000, Xxx Xx Xxxx Xxxx,
Xxxxxxxx,
Xxxxx
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20
[SIGNATURE
PAGE OF CGPN AND CGPN STOCKHOLDERS]
The
Cyber Group Network Corporation
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By: | /s/ R. Xxxxx Xxxxxx | |
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Name: R.
Xxxxx Xxxxxx
Title:
Chief Executive Officer
Address:
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CGPN
Stockholders:
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/s/ Xxxxx Xxxx | ||
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/s/ Xxxxx Xxxxxxx B.O.D. | ||
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