__________
SHARE EXCHANGE
AGREEMENT
TECHMEDIA ADVERTISING,
INC.
TECHMEDIA ADVERTISING
MAURITIUS
THE SHAREHOLDERS
OF
TECHMEDIA ADVERTISING
MAURITIUS
SHARE EXCHANGE
AGREEMENT
THIS
SHARE EXCHANGE AGREEMENT is dated and made for reference effective as
fully executed on this 27 th day of July, 2009.
BETWEEN :
TECHMEDIA
ADVERTISING, INC. , a
corporation organized under the laws of the State of Nevada and
having an address for notice and delivery located at c/o 62 Upper
Cross Street, #04-01, Singapore 058353
OF THE FIRST
PART
AND :
TECHMEDIA
ADVERTISING MAURITIUS , a corporation organized under the laws of
Mauritius and having an address for notice and delivery located at
c/o Appleby Management (Mauritius) Ltd., 8th Floor, Medine Mews, La
Chaussée Street, Port Louis, Mauritius
OF THE SECOND
PART
AND :
TERNES
CAPITAL LTD. , a
shareholder of TechMedia Advertising Mauritius, having an address
for notice and delivery located at P.O. Box 957, Offshore
Incorporations Centre, Road Town, Tortola, British Virgin
Islands
OF THE THIRD
PART
JOHNNY
LIAN TIAN YONG, a shareholder of TechMedia Advertising
Mauritius, having an address for notice and delivery located at Blk
84 Jalan Daud #06-01 Windy Heights Singapore 419593
OF THE FOURTH
PART
ONEMEDIA
LIMITED, a shareholder of TechMedia Advertising
Mauritius, having an address for notice and delivery located at 10A
Gemmill Lane, Singapore 069251
OF THE FIFTH
PART
(Ternes, Johnny
and OneMedia each being hereinafter singularly referred to as a
“ Vendor ” and collectively referred to as the
“ Vendors ” as the context so
requires);
(the Vendors,
the Company and the Acquirer being hereinafter singularly also
referred to as a “ Party ” and collectively
referred to as the “ Parties ” as the context so
requires).
WHEREAS :
A. The
Company is a body corporate subsisting under and registered
pursuant to the laws of Mauritius;
B. The
Company is the sole beneficial shareholder of TechMedia Advertising
(India) Private Limited (“TM India”), a company
organized under the laws of India, or is in the process of
acquiring the beneficial interest in all of the issued and
outstanding shares in the capital of TM India, which is engaged in
selling outdoor advertising on billboards and digital signs in
India located in high traffic locations, which locations range from
transportation vehicles, commercial buildings, supermarkets and
restaurants, by partnering with media space owners (the “
Company’s Business ”);
C. The
Vendors are, or will prior to Closing, become the legal and
beneficial owner of all of the issued and outstanding shares in the
capital of the Company; the particulars of the registered and
beneficial ownership of such Company Stock being set forth in
Schedule “A” which is attached hereto and which forms a
material part hereof;
D. The
Parties hereto have agreed to enter into this Share Exchange
Agreement (the “ Agreement ”) which formalizes,
amends and replaces, in its entirety, the Letter of Intent, dated
March 13, 2009, and which clarifies their respective duties and
obligations in connection with the acquisition by the Acquirer from
the Vendors of all of the issued and outstanding shares in the
capital of the Company (the “Company Stock”)
together with the further development of the Company’s
Business as a consequence thereof;
E. The
exchange of Company Stock for Acquirer Stock is intended to
constitute a tax-free reorganization under Section 368 of the
Internal Revenue Code of 1986, as amended (the “ Code
”), or such other tax free reorganization exemptions that may
be available under the Code; and
F. The
exchange of Company Stock for Acquirer Stock will be conducted
concurrently with the cancellation of 24,000,000 shares of the
Acquirer’s common stock with a par value of US$0.001 per
share, held by Mr. Alan Goh, CEO of the Acquirer.
NOW
THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual promises,
covenants and agreements herein contained, THE PARTIES
HERETO COVENANT AND AGREE WITH EACH OTHER as
follows:
Article 1
DEFINITIONS
1.1
Definitions . For the purposes of
this Agreement, except as otherwise expressly provided or unless
the context otherwise requires, the following words and phrases
shall have the following meanings:
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“
Action ” has the meaning ascribed to it in Article
“4.1(q)” hereinbelow;
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“
Acquirer ” means TechMedia Advertising, Inc., a
corporation organized under the laws of the State of Nevada, or any
successor company, however formed, whether as a result of merger,
amalgamation or other action;
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“
Acquirer Commission Documents ” has the meaning
ascribed to it in Article “4.1(m)”
hereinbelow;
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“
Acquirer’s Financial Statements ” has the
meaning ascribed to it in Article “4.1(n)”
hereinbelow;
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“
Acquirer’s Ratification ” has the meaning
ascribed to it in Article “5.1(a)”
hereinbelow;
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“
Acquirer Stock ” means the 24,000,000 shares of common
stock of the Acquirer to be issued and delivered to the Vendors on
a pro rata basis in Consideration for the Company Stock,
representing 53.4% of the total issued and outstanding shares of
common stock of the Acquirer post-Closing and subsequent to the
concurrent cancellation of 24,000,000 shares by the
Acquirer’s current officer and director;
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“
Agreement ” means this “Share Exchange
Agreement” as entered into among the Vendors, the Company and
the Acquirer herein, together with any amendments thereto and any
Schedules as attached thereto;
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“
Board of Directors ” means, as applicable, the
respective Board of Directors of each of the Parties hereto as duly
constituted from time to time;
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“
business day ” means any day that is not a Saturday,
Sunday or other day on which commercial banks in New York, New
York, are authorized or required by law to remain
closed;
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“
Closing ” has the meaning ascribed to it in Article
“6.1” hereinbelow;
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“
Closing Date ” has the meaning ascribed to it in
Article “6.1” hereinbelow;
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“
Code ” has the meaning ascribed to it in recital
“E.” hereinabove;
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“
Commission ” means the United States Securities and
Exchange Commission;
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“
Company ” means TechMedia Advertising Mauritius, a
corporation organized under the laws of Mauritius, or any successor
company, however formed, whether as a result of merger,
amalgamation or other action;
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“
Company’s Business ” has the meaning ascribed to
it in recital “B.” hereinabove;
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“Company Stock” has the
meanin g ascribed to it
in recital “D.” hereinabove; the particulars of the
registered and beneficial ownership of such Company Stock being set
forth in Schedule “A” which is attached
hereto;
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“
Consideration ” has the meaning ascribed to it in
Article “2.2” hereinbelow;
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“
Defaulting Party ” and “ Non-Defaulting
Party ” have the meanings ascribed to them in Article
“12” hereinbelow;
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“
Encumbrances ” means mortgages, liens, charges,
security interests, encumbrances and third party claims of any
nature;
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“
Exchange Act ” means the Securities Exchange Act of
1934, as amended;
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“
Execution Date ” means the actual date of the complete
execution of this Agreement and any amendment thereto by all
Parties hereto as set forth on the front page hereof;
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“
GAAP ” means United States generally accepted
accounting principles applied on a consistent basis during the
periods involved (except (i) as may be otherwise indicated in such
financial statements or the notes thereto or (ii) in the case of
unaudited interim statements, to the extent they may not include
footnotes or may be condensed or summary statements);
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“
Indemnified Party ” and “ Indemnified
Parties ” have the meanings ascribed to them in Article
“7.1” hereinbelow;
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“
Intellectual Property ” means all rights and interests
to all patents, patents pending, inventions, know-how, any
operating or identifying name or registered or unregistered
trademarks and trade names, all computer programs, licensed
end-user software, source codes, products and applications (and
related documentation and materials) and other works of authorship
(including notes, reports, other documents and materials, magnetic,
electronic, sound or video recordings and any other work in which
copyright or similar rights may subsist) and all copyrights
(registered or unregistered) therein, industrial designs
(registered or unregistered), franchises, licenses, authorities,
restrictive covenants or other industrial or intellectual
property;
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“
Material Adverse Effect ” shall mean any event,
occurrence, change in facts, conditions or other change or effect
which has resulted or could reasonably be expected to be materially
adverse to the Acquirer. For the purposes hereof, an event,
occurrence, change in facts, conditions or other change or effect
which has resulted or could reasonably be expected to result in a
suit, action, charge, claim, demand, cost, damage, penalty, fine,
liability or other adverse consequence of at least US$250,000 shall
be deemed to constitute a “Material Adverse
Effect”;
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“
OTCBB ” means the Over-the-Counter Bulletin
Board;
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“
Parties ” or “ Party ” means,
respectively, the Vendors, the Company and/or the Acquirer hereto,
as the case may be, together with their respective successors and
permitted assigns as the context so requires;
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“
person ” or “ persons ” means an
individual, corporation, partnership, party, trust, fund,
association and any other organized group of persons and the
personal or other legal representative of a person to whom the
context can apply according to law;
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“
Regulatory Authorities ” means any public authority or
governmental agency responsible for exercising autonomous
authority in enforcing statutes or regulations in relation to
matters relating to the transactions contemplated
herein;
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“
Securities Act ” means the Securities Act of 1933, as
amended;
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“
Takeover ” means that transaction or series of
transactions pursuant to which the Acquirer will acquire all of the
Company Stock of the Company from the Vendors in exchange for the
issuance by the Acquirer of 24,000,000 shares of common stock of
the Acquirer and all matters necessarily ancillary
thereto;
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“ Time
of Closing ” means 2:00 o’clock, p.m. (New York
City Time) on the Closing Date; and
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“
Vendors ” means the shareholders of the Company who
have executed this Agreement as a Party hereto.
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1.2
Schedules . For the purposes of this
Agreement, except as otherwise expressly provided or unless the
context otherwise requires, the following shall represent the
Schedules which are attached to this Agreement and which form a
material part hereof:
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Schedule
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Description
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Company Stock
and Vendors;
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1.3
Interpretation . For the purposes of
this Agreement, except as otherwise expressly provided or unless
the context otherwise requires:
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the words
“herein”, “hereof” and
“hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular Article,
section or other subdivision of this Agreement;
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any reference
to an entity shall include and shall be deemed to be a reference to
any entity that is a permitted successor to such entity;
and
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words in the
singular include the plural and words in the masculine gender
include the feminine and neuter genders, and vice versa
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Article 2
EXCHANGE OF
SHARES
2.1
Exchange by Vendors . Subject to the
terms and conditions hereof and based upon the representations and
warranties contained in Articles “3” and
“4” hereinbelow and prior satisfaction of the
conditions precedent which are set forth in Article “5”
hereinbelow, the Vendors hereby agree to assign, sell and transfer
at the Closing Date (as hereinafter determined) all of their
respective rights, entitlements and interests in and to the Company
Stock to the Acquirer and the Acquirer hereby agrees to acquire all
of the Company Stock from the Vendors on the terms and subject to
the conditions contained in this Agreement.
2.2
Consideration . The aggregate
consideration (the “ Consideration ”) for all of
the Company Stock will be satisfied by way of the issuance and
delivery by the Acquirer to the Vendors at the Closing Date, in
accordance with Article “2.3” hereinbelow, of an
aggregate of 24,000,000 shares of common stock in the capital of
the Acquirer (the “ Acquirer Stock ”) on a
pro rata basis in accordance with each Vendors percentage
ownership in the Company.
2.3
Resale Restrictions . The Vendors
hereby acknowledge and agree that the Acquirer makes no
representations as to any resale or other restriction affecting the
Acquirer Stock and that it is presently contemplated that the
Acquirer Stock will be issued by the Acquirer to the Vendors in
reliance upon the registration and prospectus exemptions contained
in the Securities Act, or “ Regulation S ”
promulgated under the Securities Act which will impose a trading
restriction in the United States on the Acquirer Stock for a period
of at least 6 months from the Closing Date (as hereinafter
determined).
Article 3
REPRESENTATIONS AND WARRANTIES
BY THE VENDORS
3.1
General Representations and Warranties by the Vendors
. In order to induce the Acquirer to enter into
and consummate this Agreement, the Vendors severally represent and
warrant to the Acquirer, with the intent that the Acquirer will
rely thereon in entering into this Agreement and in concluding the
transactions contemplated herein, that in respect of the Company,
to the best of the knowledge, information and belief of each of the
Vendors, after having made due inquiry:
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it is duly
organized under the laws of its respective jurisdiction of
incorporation and is validly existing and in good standing with
respect to all statutory filings required by the applicable
corporate laws;
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it is qualified
to do business in those jurisdictions where it is necessary to
fulfill its obligations under this Agreement and it has the full
power and authority to enter into this Agreement and any agreement
or instrument referred to or contemplated by this
Agreement;
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it has the
requisite power, authority and capacity to own and use all of its
respective business assets and to carry on its respective business
as presently conducted by it and to fulfill its respective
obligations under this Agreement;
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the execution
and delivery of this Agreement and the agreements contemplated
hereby have been duly authorized by all necessary action, corporate
or otherwise, on its respective part;
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there are no
other consents, approvals or conditions precedent to the
performance of this Agreement which have not been
obtained;
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this Agreement
constitutes a legal, valid and binding obligation of it enforceable
against it in accordance with its terms, except as enforcement may
be limited by laws of general application affecting the rights of
creditors;
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no proceedings
are pending for, and it is unaware of, any basis for the
institution of any proceedings leading to its respective
dissolution or winding up, or the placing of it in bankruptcy or
subject to any other laws governing the affairs of insolvent
companies or persons;
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the making of
this Agreement and the completion of the transactions contemplated
hereby and the performance of and compliance with the terms hereof
does not and will not:
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conflict with
or result in a breach of or violate any of the terms, conditions or
provisions of its respective organizational documents;
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conflict with
or result in a breach of or violate any of the terms, conditions or
provisions of any law, judgment, order, injunction, decree,
regulation or ruling of any Court or governmental authority,
domestic or foreign, to which it is subject, or constitute or
result in a default under any agreement, contract, license, permit,
or commitment to which it is a party;
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give to any
party the right of termination, cancellation or acceleration in or
with respect to any agreement, contract, license or commitment to
which it is a party;
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give to any
government or governmental authority, or any municipality or any
subdivision thereof, including any governmental department,
commission, bureau, board or administration agency, any right of
termination, cancellation or suspension of, or constitute a breach
of or result in a default under, any permit, license, control or
authority issued to it which is necessary or desirable in
connection with the conduct and operations of its respective
business and the ownership or leasing of its respective business
assets; or
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constitute a
default by it, or any event which, with the giving of notice or
lapse of time or both, might constitute an event of default, under
any agreement, contract, indenture or other instrument relating to
any indebtedness of it which would give any party to that
agreement, contract, indenture or other instrument the right to
accelerate the maturity for the payment of any amount payable under
that agreement, contract, indenture or other instrument;
and
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neither this
Agreement nor any other document, certificate or written statement
furnished to the Acquirer by or on behalf of any of the Vendors or
the Company in connection with the transactions contemplated hereby
knowingly or negligently contains any untrue or incomplete
statement of material fact or omits to state a material fact
necessary in order to make the statements therein not
misleading;
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this Agreement
has been duly authorized, executed and delivered by the Vendors and
the Company and is a legal, valid and binding obligation of each of
the Vendors and the Company, enforceable against each of the
Vendors and/or the Company, as the case may be, by the Acquirer in
accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency and other laws affecting the rights of
creditors generally and except that equitable remedies may be
granted only in the discretion of a court of competent
jurisdiction;
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no person other
than the Acquirer has any written or oral agreement or option or
any right or privilege (whether by law, pre-emptive or contractual)
capable of becoming an agreement, or option for the purchase or
acquisition from the Vendors of any of the Company
Stock;
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the Company
Stock is beneficially owned by the Vendors with good and marketable
title thereto free of all Encumbrances and is registered in the
books of the Company in the name of the Vendors and, without
limitation thereto, none of the Company Stock is subject to any
voting trust, unanimous shareholders agreement, other shareholders
agreements, pooling agreements or voting agreements;
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upon completion
of the transactions contemplated by this Agreement, all of the
Company Stock will be owned by the Acquirer as the beneficial owner
of record, with good and marketable title thereto (except for such
Encumbrances as may have been granted by the Acquirer);
and
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the Company is,
or is in the process of becoming, the sole beneficial shareholder
of TM India, a company organized under the laws of
India.
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3.2
Survival of the Representations and Warranties by each of the
Vendors . To the extent they have not been
fully performed at or prior to the Time of Closing, each and every
representation and warranty of the Vendors contained in this
Agreement and any agreement, instrument, certificate or other
document executed or delivered pursuant to this Agreement
shall:
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be materially
true and correct on and as of the Closing Date with the same force
and effect as though made or given on the Closing Date;
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remain in full
force and effect notwithstanding any investigations conducted by or
on behalf of the Acquirer; and
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survive the
completion of the transactions contemplated by this Agreement until
the second anniversary of the Closing Date and shall continue in
full force and effect for the benefit of the Acquirer during that
period, except that a claim for any breach of any of the
representations and warranties contained in this Agreement or in
any agreement, instrument, certificate or other document executed
or delivered pursuant hereto involving fraud or fraudulent
misrepresentation may be made at any time following the Closing
Date, subject only to applicable limitation periods imposed by
law.
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to the extent
they have not been fully performed at or prior to the Time of
Closing, each and every representation and warranty of the Vendors
contained in this Agreement and any agreement, instrument,
certificate or other document executed or delivered pursuant to
this Agreement shall survive the completion of the transactions
contemplated by this Agreement and, notwithstanding such
completion, shall continue in full force and effect for the benefit
of the Acquirer.
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3.3 For
the avoidance of doubt and notwithstanding anything to the contrary
contained in this Agreement, all representations and warranties,
unless expressly provided otherwise in this Agreement, are in
respect of matters and events on or before the Closing and not
after.
Article 4
WARRANTIES AND REPRESENTATIONS
BY THE ACQUIRER
4.1
Warranties and Representations by the Acquirer
. In order to induce the Vendors and the Company to
enter into and consummate this Agreement, the Acquirer hereby
warrants to and represents to each of the Vendors and the Company,
with the intent that each of the Vendors and the Company will rely
thereon in entering into this Agreement and in concluding the
transactions contemplated herein, that, to the best of the
knowledge, information and belief of the Acquirer, after having
made due inquiry:
Corporate Status of the
Acquirer
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the Acquirer is
a company with limited liability duly and properly incorporated,
organized and validly subsisting under the laws of the State of
Nevada being the only jurisdiction where it is required to be
registered for the purpose of enabling it to carry on its business
and own its property as presently carried on and owned;
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the Acquirer
has good and sufficient power, authority and right to own or lease
its property, to enter into this Agreement and to perform its
obligations hereunder;
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this Agreement
has been duly authorized, executed and delivered by the Acquirer
and is a legal, valid and binding obligation of the Acquirer,
enforceable against the Acquirer, as the case may be, by the
Vendors and/or the Company in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency and other laws
affecting the rights of creditors generally and except that
equitable remedies may be granted only in the discretion of a court
of competent jurisdiction;
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the authorized
capital of the Acquirer currently consists of 1,100,000,000 shares
of common stock with a par value of US$0.001 per share of which
44,919,000 shares of common stock of the Acquirer have been duly
issued and are outstanding as fully paid and
non-assessable. There are no bonds, debentures, notes or
other indebtedness of Acquirer which have the right to vote (or
convertible into, or exchangeable for, securities having the right
to vote) on any matters on which holders of the Acquirer’s
common stock may vote;
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all of the
issued and outstanding shares of common stock of the Acquirer are
listed and posted for trading on the OTCBB;
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the Acquirer
will allot and issue the Acquirer Stock on the Closing Date in
accordance with Articles “2.2” and “2.3”
hereinabove as duly authorized, fully paid and non-assessable in
the capital of the Acquirer, free and clear of all actual or
threatened liens, charges, security interests, options,
encumbrances, voting agreements, voting trusts, demands,
limitations and restrictions of any nature whatsoever, other than
hold periods or other restrictions imposed under applicable
securities legislation or by securities regulatory
authorities;
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no person has
any agreement or option or any right or privilege (whether by law,
pre-emptive or contractual) capable of becoming an agreement,
including convertible securities, warrants or convertible
obligations of any nature, for the purchase, subscription,
allotment or issuance of any unissued shares or other securities of
the Acquirer;
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the present
directors and officers of the Acquirer are as follows:
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Name
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Position
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President, CEO,
CFO, Secretary, Treasurer and Director
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All tax
returns, if any were filed, were correct and complete in all
respects. All taxes due and owing by Acquirer or any of
its subsidiaries have been fully and timely
paid. Neither Acquirer nor any of its subsidiaries
currently is the beneficiary of any extension of time within which
to file any tax return. No claim has ever been made by
an authority in a jurisdiction where Acquirer does not file tax
returns that Acquirer is or may be subject to taxation by that
jurisdiction. There are no liens for taxes (other than
taxes not yet due and payable) upon any of the assets of Acquirer
or any of its subsidiaries;
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no foreign,
federal, state, or local tax audits or administrative or judicial
tax proceedings are pending or being conducted with respect to
Acquirer. Acquirer has not received from any foreign,
federal, state, or local taxing authority (including jurisdictions
where Acquirer has not filed tax returns) any (i) notice indicating
an intent to open an audit or other review, (ii) request for
information related to tax matters, or (iii) notice of deficiency
or proposed adjustment for any amount of tax proposed, asserted, or
assessed by any taxing authority against Acquirer;
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the making of
this Agreement and the completion of the transactions contemplated
hereby and the performance of and compliance
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