STOCK PURCHASE
AGREEMENT
This Share Exchange Agreement ("
Agreement "), is made and entered into as of the 30
th day of April 2009 by and among RINEON GROUP
INC . (formerly, Jupiter Resources, Inc.) , a
corporation organized under the laws of the State of Nevada
(“ Rineon ”); NATPROV HOLDINGS,
INC. , a British Virgin Islands corporation (" NatProv
"); and DARCY GEORGE RONEY (“ Roney ” or
the “ Rineon Principal Stockholder ”).
Rineon, NatProv, and the Rineon Principal Stockholder
hereinafter sometimes individually referred to as a “
Party ” and collectively referred to as the “
Parties .”
RECITALS:
A. Rineon
desires to purchase from NatProv all of the shares of capital stock
of AMALPHIS GROUP INC ., a British Virgin Island corporation
(“ Amalphis ”) that are owned of record and
beneficially by NatProv.
B. NatProv
is the record and beneficial owner of 1,985,834 shares of common
stock of Amalphis (the “ Subject Shares ”),
representing 81.5% of the 2,437,500 issued and outstanding shares
of common stock of Amalphis, $0.001 par value per share (the
“ Amalphis Outstanding Shares ”).
C. NatProv
is willing to sell the Subject Shares to Rineon, all upon the terms
and subject to the conditions hereinafter set forth.
D. The
board of directors of each of Rineon and NatProv and the Rineon
Principal Stockholder each deem it to be in the best interests of
Rineon and NatProv and their respective shareholders to
consummate the sale and purchase of the Subject Shares, as a result
of which Rineon shall acquire 81.5% of all of the issued and
outstanding Amalphis Outstanding Shares and NatProv shall receive
the Purchase Price (as hereinafter defined).
NOW, THEREFORE,
in consideration of the mutual
covenants, agreements, representations and warranties
contained in this Agreement, the parties hereto agree as
follows:
DEFINITIONS
As used in this Agreement, the
following terms shall have the meanings set forth below:
“ Applicable Law” means any
domestic or foreign law, statute, regulation, rule, policy,
guideline or ordinance applicable to the businesses of the Parties,
the Share Exchange and/or the Parties.
“ Affiliate ” means any
one or more Person controlling, controlled by or under common
control with any other Person or their affiliate.
“ Amalphis ” means Amalphis
Group Inc., a British Virgin Island corporation.
“ Amalphis Common Stock ”
means the 100,000,000 shares of common stock, $0.001 par value per
share, of Amalphis that are authorized for issuance pursuant to its
certificate of incorporation.
“ Amalphis Outstanding Shares
” means the 2,437,500 shares of Amalphis Common Stock that
are issued and outstanding as at the date of this Agreement and as
at the Closing Date.
“ Amalphis Group ” shall have
the meaning set forth in Section 2.3 of this
Agreement.
“ Business Day ” shall
mean any day, excluding Saturday, Sunday and any other day on which
national banks located in New York, New York shall be closed for
business.
“ Certificate of Designations
” shall mean the certificate of designations of the relative
rights, privileges and preferences of the 36,000 shares of Series A
Preferred Stock in the form of Exhibit A annexed hereto and
made a part hereof.
“ Closing Date ” shall mean
the date upon which the purchase and sale of the Subject Shares
shall be consummated.
“ Dollar” and “
$” means lawful money of the United States of
America.
“ Exchange Act” means
the Securities Exchange Act of 1934, as amended.
“ Financial Statements
” shall have the meaning as is defined in Section 2.4
of this Agreement.
“ GAAP ” means generally
accepted accounting principles in the United States of America as
promulgated by the American Institute of Certified Public
Accountants and the Financial Accounting Standards Board or any
successor Institutes concerning the treatment of any accounting
matter.
“ Intigy ” means Intigy
Absolute Return, Ltd., a British Virgin Islands
corporation.
“ Intigy Purchase Agreement ”
mean the preferred stock purchase agreement, dated as of April 30,
2009, between Rineon and Intigy, in the form of Exhibit
B annexed hereto and made a part hereof.
“ Knowledge ” means the
knowledge after reasonable inquiry.
“ Lien ” means, with respect
to any property or asset, any mortgage, lien, pledge, charge,
security interest, encumbrance or other adverse claim of any kind
in respect of such property or asset.
“ Material Adverse Effect ”
with respect to any entity or group of entities means any event,
change or effect that has or would have a materially adverse effect
on the financial condition, business or results of operations of
such entity or group of entities, taken as a consolidated
whole.
“NatProv”
means NatProv Holdings Inc., a
British Virgin Islands corporation.
“ National Securities
Exchange ” means the collective reference to the New York
Stock Exchange, the NYSE Alternext Exchange, the Nasdaq Stock
Exchange, the FINRA OTC Bulletin Board or any other recognized
national securities exchange in the United States.
“ Person ” means any
individual, corporation, partnership, trust or unincorporated
organization or a government or any agency or political subdivision
thereof.
“ Purchase Price ” shall mean
Thirty Six Million United States Dollars (U.S.
$36,000,000).
“ Rineon Common Stock ” shall
mean the 75,000,000 shares of common stock of Rineon, $0.001 par
value per share, that are authorized for issuance pursuant to the
certificate of incorporation of Rineon.
“ Rineon Preferred Stock”
means the 10,000,000 shares of preferred stock of Rineon, $0.001
par value per share, that are authorized for issuance pursuant to
the certificate of incorporation of Rineon, and containing such
rights, privileges and designations as the board of directors of
Rineon may, from time to time determine.
“ Rineon Reincorporation
Documents ” shall mean the documents annexed
hereto as Exhibit C and made a part hereof which are
required to reincorporate and redomicile Rineon as a corporation
organized under the laws of the British Virgin Islands under the
name RINEON GROUP, INC.
“ Sale of Control
” means the sale or transfer of all or
substantially all of the shares of capital stock or assets of
Rineon and its consolidated Subsidiaries, whether through merger,
consolidation, asset sale, tender offer or like combination or
consolidation, to any Person who is not an Affiliate of Rineon
immediately prior to such Sale of Control.
“ Series A Preferred Stock
” shall mean the 36,000 shares of Series A convertible
preferred stock of Rineon, $1,000 stated value per share,
authorized for issuance pursuant to the Certificate of
Designation.
“ Stock Redemption Agreement
” shall have the meaning as defined in the Intigy Purchase
Agreement.
“ Subject Shares ” shall mean
an aggregate of 1,985,834 of the Amalphis Outstanding Shares that
are owned of record and beneficially by NatProv as at the date
hereof and as at the Closing Date.
“ Subsidiary ” of any Person
means another Person, an amount of the voting securities, other
voting ownership or voting partnership interests of which is
sufficient to elect at least a majority of its Board of Directors
or other governing body (or, if there are no such voting interests,
50% or more of the equity interests of which) is owned directly or
indirectly by such first Person.
“ Tax ” (and, with
correlative meaning, “ Taxes ” and “
Taxable ”) means:
(i) any income, alternative or add-on minimum
tax, gross receipts tax, sales tax, use tax, ad valorem tax,
transfer tax, franchise tax, profits tax, license tax, withholding
tax, payroll tax, employment tax, excise tax, severance tax, stamp
tax, occupation tax, property tax, environmental or windfall profit
tax, custom, duty or other tax, impost, levy, governmental fee or
other like assessment or charge of any kind whatsoever together
with any interest or any penalty, addition to tax or additional
amount imposed with respect thereto by any governmental or Tax
authority responsible for the imposition of any such tax (domestic
or foreign), and
(ii) any liability for the payment of any
amounts of the type described in clause (i) above as a result of
being a member of an affiliated, consolidated, combined or unitary
group for any Taxable period, and
(iii) any liability for the payment of any
amounts of the type described in clauses (i) or (ii) above as a
result of any express or implied obligation to indemnify any other
person.
“ Tax Return ” means any
return, declaration, form, claim for refund or information return
or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.
“ Trading Days ”
means any day on which the New York Stock Exchange or other
National Securities Exchange on which Rineon Common Stock trades is
open for trading.
“ VWAP ” means
the volume weighted average price per share of Rineon Common Stock
as reported by Bloomberg Reporting Service or other recognized
stock market price reporting service.
SECTION 1.
PURCHASE AND SALE OF THE SUBJECT SHARES
1.1
Sale of the Subject Shares .
(a) On
the Closing Date and subject to and upon the terms and conditions
of this Agreement, NatProv shall sell, assign, transfer and
exchange (collectively, “ Transfer ”) to
Rineon all, and not less than all, of the Subject Shares,
consisting of 1,985,834 of the Amalphis Outstanding Shares that are
owned of record and beneficially by NatProv, and representing 81.5%
of the Amalphis Outstanding Shares at the Closing Date.
(b) On
the Closing Date, NatProv shall deliver to Rineon one or more stock
certificates evidencing the Subject Shares, duly endorsed in blank
(the “ Subject Shares Certificates
”).
1.2
Payment of Purchase Price . On the Closing Date,
against delivery of the Subject Shares Certificates, Rineon shall
pay to NatProv the $36,000,000 Purchase Price. Such
Purchase Price shall be paid by wire transfer of immediately
available funds to a bank account designated by NatProv prior to
the Closing Date.
The closing of the sale and purchase of the
Subject Shares (the “ Closing ”) will take place
immediately following the consummation of the sale of the Series A
Preferred Stock to Intigy under the Intigy Purchase Agreement, at
the offices of Hodgson Russ LLP, at its office in New York, New
York, within five (5) Business Days following the delivery of
satisfaction or waiver of the conditions precedent set forth in
Section 4 or at such other date as Rineon and NatProv shall agree
(the “ Closing Date ”), but in no event shall
the Closing Date occur later than May 14, 2009, unless such date
shall be extended by mutual agreement of Rineon and
NatProv.
SECTION 2. REPRESENTATIONS AND
WARRANTIES OF NATPROV .
NatProv
hereby represents and warrants to
Rineon as follows:
2.1
Organization and Good Standing: Ownership of Shares.
NatProv is a corporation duly organized and validly
existing under the laws of the British Virgin
Islands. There are no outstanding subscriptions, rights,
options, warrants or other agreements obligating NatProv to issue,
sell or transfer any stock or other securities of
NatProv.
2.2
Authority and Ownership of Subject Shares.
(a) NatProv
has the corporate power to enter into this Agreement and to perform
its obligations hereunder. The execution and delivery of
this Agreement and the consummation of the transaction contemplated
hereby have been duly authorized by the Board of Directors of
NatProv. The execution and performance of this Agreement
will not constitute a material breach of any agreement, indenture,
mortgage, license or other instrument or document to which NatProv
is a party and will not violate any judgment, decree, order, writ,
rule, statute, or regulation applicable to NatProv or its
properties. The execution and performance of this
Agreement will not violate or conflict with any provision of the
Articles of Incorporation or by-laws of NatProv.
(b) As
at the date of this Agreement and the Closing Date, NatProv is the
record and beneficial owner of all, and not less than all, of the
Subject Shares. The Subject Shares are owned of record and
beneficially by NatProv free and clear of all rights, claims, liens
and encumbrances, and have not been sold, pledged, assigned or
otherwise transferred except pursuant to this Agreement.
As at the date of this Agreement,
and as at the Closing Date:
(a) NatProv
is the owner of 1,985,834 Subject Shares of Amalphis ,
representing 81.5% of the Amalphis Outstanding Shares;
(b) Amalphis
owns 100% of the issued and outstanding share capital of Allied
Provident Insurance, Inc ., an exempt insurance company
organized under the laws of Barbados (“ Allied
Provident ”);
(c) Allied
Provident, owns 66.7% of the issued and outstanding capital stock
of First Florida Holdings, Inc. , an inactive Florida
corporation (“ FFH ”).
Amalphis, Allied Provident and FFH
are hereinafter sometimes collectively referred to as the “
Amalphis Group .”
2.4
Financial Statements, Books and Records.
(a)
Schedule 2.4(a) consists of the audited consolidated
financial statements (balance sheet, income statement, statements
of cash flows and shareholder equity and notes thereto) of Amalphis
and Allied Provident as of December 31, 2007 and December 31, 2008
and for the two (2) fiscal years then ended (the “
Amalphis Annual Financial Statements ”).
(b) The
Amalphis Financial Statements fairly represent the financial
position of the Amalphis Group as at such dates and the results of
their operations for the periods then ended. The
Financial Statements were prepared in accordance with generally
accepted accounting principles applied on a consistent basis with
prior periods except as otherwise stated therein. The books of
account and other financial records of the Amalphis Group are in
all respects complete and correct in all material respects and are
maintained in accordance with good business and accounting
practices.
(e) The
Amalphis Annual Financial Statements were audited in accordance
with generally accepted accounting principles and Regulation S-X,
as promulgated under the Securities Act of 1933, as
amended.
(f) In
addition to the Amalphis Annual Financial Statements, the auditors
engaged pursuant to Section 2.4(e) above shall review, and
assist Amalphis in the preparation of, an unaudited consolidated
balance sheet and statement of income of the Amalphis Group as may
be required for the comparative fiscal quarters ended March 31,
2009 and March 31, 2008 (collectively, the “ Additional
Financial Statements ”).
2.5
Access to Records. The corporate financial
records, minute books and other documents and records of the
Amalphis Group have been made available to Rineon prior to the
Closing hereof.
2.6
No Material Adverse Changes. Except as otherwise
described on Schedule 2.6 hereto, since December 31, 2008
there has not been:
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any material adverse change in the
financial position of the Amalphis Group, except changes arising in
the ordinary course of business, which changes will in no event
materially and adversely affect the financial position of the
Amalphis Group;
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any damage, destruction or loss
materially affecting the assets, prospective business, operations
or condition (financial or otherwise) of the Amalphis Group whether
or not covered by insurance;
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any declaration, setting aside or
payment of any dividend or distribution with respect to any
redemption or repurchase of the Amalphis Group capital
stock;
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any sale of an asset (other than in
the ordinary course of business) or any mortgage or pledge by the
Amalphis Group of any properties or assets, other than as set forth
in Section 2.13 below; or
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adoption of any pension, profit
sharing, retirement, stock bonus, stock option or similar plan or
arrangement.
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2.7 Taxes.
The Amalphis Group as of December 31, 2008, has filed
all material tax, governmental and/or related forms and reports (or
extensions thereof) due or required to be filed and has (or will
have) paid or made adequate provisions for all taxes or assessments
which had become due as of December 31, 2005, and there are no
deficiency notices outstanding.
2.8 Compliance with
Laws. Except as set forth on Schedule 2.8,
the Amalphis Group has complied with all federal, state,
county and local laws, ordinances, regulations, inspections,
orders, judgments, injunctions, awards or decrees applicable to it
or its business which, if not complied with, would materially and
adversely affect the business of the Amalphis
Group.
2.9
No Breach. The execution, delivery and
performance of this Agreement and the consummation of the
transactions contemplated hereby will not:
(a) violate any provision
of the Articles of Incorporation or By-Laws of the Amalphis
Group;
(b) violate, conflict
with or result in the breach of any of the terms of, result in a
material modification of, otherwise give any other contracting
party the right to terminate, or constitute (or with notice or
lapse of time, or both constitute) a default under any contract or
other agreement to which the Amalphis Group is a party or by or to
which it or any of its assets or properties may be bound or
subject;
(c) violate any order,
judgment, injunction, award or decree of any court, arbitrator or
governmental or regulatory body against, or binding upon, the
Amalphis Group or upon the properties or business of the
Amalphis Group; or
(d) violate
any statute, law or regulation of any jurisdiction applicable to
the transactions contemplated herein which could have a materially
adverse effect on the business or operations of the Amalphis
Group.
2.10
Actions and Proceedings. The Amalphis
Group is not a party to any material pending litigation or, to its
knowledge, any governmental investigation or proceeding not
reflected in the Amalphis Group Financial Statements, and to its
best knowledge, no material litigation, claims, assessments or
Non-governmental proceedings are threatened against the Amalphis
Group except as set forth on Schedule 2.10 attached hereto and made
a part hereof.
2.11
Agreements. Schedule 2.11 sets forth any
material contract or arrangement to which the Amalphis
Group is a party or by or to which it or its assets,
properties or business are bound or subject, whether written or
oral.
2.12
Brokers or Finders. No broker's or finder's fee
will be payable by the Amalphis Group in connection with the
transactions contemplated by this Agreement, nor will any such fee
be incurred as a result of any actions by the Amalphis Group or
NatProv.
2.13
Real Estate. Except as set forth on Schedule
2.13, the Amalphis Group owns no real property nor is a party to
any leasehold agreement.
2.14
Tangible Assets. Except as set forth on Schedule
2.14 hereto, the Amalphis Group has full title and interest
in all machinery, equipment, furniture, leasehold improvements,
fixtures, projects, owned or leased by the Amalphis Group,
any related capitalized items or other tangible property material
to the business of the Amalphis Group (the " Tangible Assets
"). the Amalphis Group holds all rights, title and
interest in all the Tangible Assets owned by it on the Balance
Sheet or acquired by it after the date on the Balance Sheet free
and clear of all liens, pledges, mortgages, security interests,
conditional sales contracts or any other
encumbrances. All of the Tangible Assets are in good
operating condition and repair and are usable in the ordinary
course of business of the Amalphis Group and conform to all
applicable laws, ordinances and government orders, rules and
regulations relating to their construction and operation, except as
set forth on Schedule 2.14 hereto.
2.15
Liabilities. The Amalphis Group did not
have any direct or indirect indebtedness, liability, claim, loss,
damage, deficiency, obligation or responsibility, known or unknown,
fixed or unfixed, liquidated or unliquidate