Exhibit 10.1
SHARE PURCHASE
AGREEMENT
BY AND AMONG
MIZI RESEARCH,
INC.,
SHAREHOLDERS OF MIZI RESEARCH,
INC.
AND
WIND RIVER SYSTEMS,
INC.
A UGUST 26, 2008
TABLE OF CONTENTS
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Page
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SECTION 1.
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DEFINITIONS
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2
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SECTION 2.
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SALE AND PURCHASE OF SALE SHARES
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5
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SECTION 3
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CLOSING
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6
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SECTION 4.
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CONDITION PRECEDENTS TO CLOSING
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8
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SECTION 5.
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REPRESENTATIONS AND WARRANTIES OF
PURCHASER
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10
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SECTION 6.
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REPRESENTATIONS AND WARRANTIES OF
SELLERS
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11
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SECTION 7.
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REPRESENTATIONS AND WARRANTIES OF THE
COMPANY
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12
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SECTION 8.
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COVENANTS
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21
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SECTION 9.
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INDEMNIFICATION
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24
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SECTION 10.
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TERMINATION
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26
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SECTION 11.
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GENERAL PROVISIONS
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26
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EXECUTION COPY
SHARE PURCHASE
AGREEMENT
THIS SHARE PURCHASE AGREEMENT (the
“ Agreement ”) is entered into as of
August 26, 2008 (the “ Effective Date ”),
by and among:
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(1)
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WIND RIVER
SYSTEMS, INC. , a
corporation organized and existing under the laws of Delaware with
its registered office located at 500 Wind River Way, Alameda,
California, U.S.A. 94501 (“ Purchaser
”);
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(2)
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MIZI
RESEARCH, INC. , a
corporation organized and existing under the laws of Korea with its
registered office located at 9/F Sambo B/D, 88, Samsung-dong,
Kangnam-gu, Seoul, 135-090, Korea (the “ Company
”);
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(3)
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YOUNG-JIN,
SEO , a Korean national
having an address at
(the
“ Seller Representative ”);
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(4)
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INNOVALUE
CAPITAL, INC., a
corporation organized and existing under the laws of the British
Virgin Islands with its registered office located at
(“
Innovalue ”);
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(5)
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KB
INVESTMENT CO., LTD., a
corporation organized and existing under the laws of Korea with its
registered office located at
(“
KB ”);
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(6)
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SUNG-HO
WANG , a Korean national
having an address at
;
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(7)
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JOON
JO , a Korean national
having an address at
;
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(8)
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MYONG-KIE
LEE , a Korean national
having an address at
;
and
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(9)
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CHI-DEOK
HWANG , a Korean national
having an address at
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(The Seller Representative,
Innovalue, KB, Sung-Ho Wang, Joon Jo, Myong-kie Lee and Chi-Deok
Hwang shall each be referred to as “ Seller ”
and collectively as “ Sellers ”).
R E C I T A L S
WHEREAS , the Company is a joint stock company engaged
in the business of software and mobile application platform
development and as of the date hereof, Sellers are the record
owners of 3,082,000 shares of common stock, par value KRW
500 per share (the “ Sale Shares ”) of the
Company, representing approximately 77% of the Company’s
issued and outstanding share capital;
WHEREAS , simultaneously with the execution of this
Agreement, the other Key Employees (as defined below) who are
shareholders shall enter into the short-form share purchase
agreement with Purchaser, in the form attached hereto as Exhibit
B (the “ Short-Form SPA ”) to sell the
number of Shares set forth opposite the name of such shareholder
listed in Exhibit A ;
WHEREAS , the Seller Representative shall use his best
efforts to cause other remaining shareholders of the Company to
enter into the Short-Form SPA on or prior to the Closing
Date;
WHEREAS , it is desired by the Sellers and the Purchaser
that, prior to the Closing, sufficient number of other remaining
shareholders of the Company will enter into the Short-Form SPA with
Purchaser to sell Shares owned by them to Purchaser so that
Purchaser will acquire at the Closing at least 95% of the total
issued and outstanding share capital of the Company; and
WHEREAS , in connection therewith, Sellers wish to sell
to Purchaser and Purchaser wishes to purchase from Sellers the Sale
Shares upon the terms and conditions set forth herein.
A G R E E M E N T
NOW , THEREFORE , in consideration of the
agreements and obligations set forth herein and for other good and
valuable consideration, the receipt and legal sufficiency of which
are hereby acknowledged, the parties hereto agree as
follows:
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1.1
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Certain
Defined Terms . For
purposes of this Agreement, the following terms shall have the
following respective meanings:
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“ Affiliate ”
means, with respect to any Person, any other Person who (at the
time when the determination is made), directly or indirectly
through one or more intermediaries, Controls, is Controlled by, or
is under common Control with, the specified Person.
“ Balance Sheet Date
” means July 31, 2008.
“ Business Day ”
means any day that is not a Saturday, a Sunday or other day on
which banks are required or authorized by Law to be closed in Korea
or in the U.S.A.
“ Control ”
(including the terms “ Controlled by ” and
“ under Common Control with ”) means the
possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract, or
otherwise.
“ Disclosure Schedule
” means the Disclosure Schedule delivered by the Company to
the Purchaser on or prior to the signing of this
Agreement.
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“ Encumbrances ”
means any claim, charge, easement, encumbrance, lease, covenant,
security interest, lien, yangdo dambo , option, pledge,
restriction on voting, sale, transfer or disposition, whether
imposed by contract, legal requirement, equity or
otherwise.
“ Escrow Agreement
” means the escrow agreement to be entered into by and among
Purchaser, the Seller Representative for himself and on behalf of
the other Escrow Sellers, and the Escrow Agent on or prior to the
Closing Date in the form and substance substantially similar to
Exhibit C hereto.
“ Escrow Sellers
” means Seller Representative, Innovalue, KB and Sung-Ho
Wang.
“ Government Approval
” means any approval, consent, permission or license from,
registration or filing with, or notice or report to, any Government
Authority.
“ Government Authority
” means any national, federal, provincial or local (including
city) government in Korea, the U.S.A. or any other relevant
countries, any political subdivision thereof or any other
governmental, judicial, public, regulatory, or statutory
instrumentality, authority, body, agency, department, court, bureau
or entity or any arbitrator with authority to bind a party hereto
at law.
“ Hazardous Materials
” shall mean (a) any chemicals, materials or substances
defined as or included in the definition of “hazardous
substances”, “hazardous wastes”, “hazardous
materials”, “extremely hazardous wastes”,
“restricted hazardous wastes”, “toxic
substances”, “toxic pollutants”,
“contaminants” or “pollutants”, or words of
similar import, under any applicable Korean law, and (b) any
other chemical, material or substance exposure to which is
regulated by any Government Authority.
“ Key Employees ”
means Young-Jin Seo, Myong-Kie Lee, Chi-Deok Hwang, Woo-Hyun Jang,
Yeong-Ho Cha, Beom-Chol Kim, Joeong-Hoi Kim, Yong-Il Jo, Geun-Oh
Park, Jun-Cheol Park and Won-Yeong Jeong.
“ Knowledge ”
means (i) with respect to Purchaser or Sellers, the knowledge
of such party after reasonable inquiry, and (ii) with respect
to the Company, the knowledge of the management of the Company (
isa level or higher) after reasonable inquiry.
“ Law ” means any
law, rule, regulation, legislation, statute, ordinance, order,
treaty, bilateral or multilateral agreement, proclamation,
executive order, restriction, embargo, sanction or interpretation
thereof by any Government Authority.
“ Long Stop Date
” means the date that is 60 days from the Effective
Date.
“ Ordinary Course of
Business ” means any action taken by or on behalf of the
Company that is recurring in nature, is consistent with the past
practices of the Company and is taken in the ordinary course of the
Company’s normal day-to-day operations.
“ Permit ” means
any permit, license (export, import or otherwise), certificate,
approval, consent, notice, waiver, franchise, registration, filing,
accreditation, or other similar authorization required by any Law
or Government Authority.
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“ Person ” means
an individual, corporation, limited liability company, partnership,
joint venture, trust, fund or an incorporated organization or
association or other form of business enterprise, a governmental
entity or any other form of a legal entity.
“ Proceeding ”
means any claim, suit, action, arbitration, investigation or legal,
administrative or other proceeding of any nature, domestic or
foreign, civil or criminal, commenced, brought, conducted or heard
by or before, or that otherwise involves or may involve any
Government Authority, arbitrator, mediator, or arbitral or
mediation panel pending against a party to this
Agreement.
“ Proprietary Assets
” shall mean all intellectual properties owned by the Company
or in which the Company has any interest (including the right to
use pursuant to any contractual arrangement). The Proprietary
Assets shall include (i) all trademarks, service marks, trade
names, corporate names, trade dress and logos (together with all
translations), all applications therefor, and all associated
goodwill; (ii) all statutory and registered copyrights, all
applications therefor and all associated goodwill; (iii) all
patents and patent applications, all associated technical
information, know-how, trade secrets, processes, operating,
maintenance and other manuals, designs, drawings and
specifications, process flow diagrams and related data, and all
associated goodwill; (iv) all “software” and
documentation thereof (including all Proprietary Software and all
electronic data processing systems and program specifications,
source codes, input data and report layouts and format, record file
layouts, diagrams, functional specifications and narrative
descriptions); and (v) all other inventions, discoveries,
improvements, processes, formula (secret or otherwise), data,
drawings, specifications, trade secrets, confidential information,
know-how and ideas (including those in the possession of third
parties, but which are the property of the Company), and all
drawings, records, books or other tangible media embodying the
foregoing.
“ Shares ” shall
mean the issued and outstanding common shares of the
Company.
“ USD ” means the
currency of the United States of America.
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1.2
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Index of
Other Defined Terms . The
following terms shall have the meanings given to such terms in the
Sections set forth opposite such terms below:
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Section
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Agreement
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Preamble
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Aggregate Purchase Price
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2.2
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Closing
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3.1
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Closing Date
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3.1
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Company
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Preamble
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Effective Date
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Preamble
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Escrow Account
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3.2
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Escrow Agent
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3.2
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Escrow Agreement
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3.2
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Escrow Amount
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3.2
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FCPA
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4.2(l)
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Financial Statements
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7.6
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GAAP
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7.6
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IBK
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4.2(j)
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IBK Loan Agreements
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4.2(j)
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Indemnified Party
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9.1
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Indemnifying Party
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9.2
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Innovalue
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Preamble
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KB
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Preamble
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Loss
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9.1
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Material Adverse Effect
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4.2(h)
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Outstanding Shares
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2.2
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Pay-Off Amount
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4.2(j)
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Per Share Purchase Price
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2.2
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Proprietary Software
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7.11(e)
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Purchaser
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Preamble
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Sale Shares
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Recitals
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Seller Representative
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Preamble
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Sellers
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Preamble
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Short-Form SPA
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Recitals
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2.
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Share and
Purchase of Sale Shares
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2.1
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Sale of Sale
Shares . Subject to the
terms and conditions set forth in this Agreement and in reliance on
the representations, warranties, undertakings, indemnities and
agreements set forth in this Agreement, at the Closing (as defined
below), each Seller hereby agrees to sell, transfer and deliver to
Purchaser the number of Sale Shares set forth opposite the name of
such Seller in Schedule 2.1 , free and clear of all
Encumbrances, and Purchaser agrees to purchase such Sale Shares
from Sellers.
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2.2
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Purchase
Price . Subject to
(i) the withholding of any applicable withholding taxes at the
Closing in accordance with Section 2.3 below and (ii) the
withholding of applicable escrow amounts from Escrow Sellers at the
Closing in accordance with Section 3.2 below, the purchase
price for each Sale Share sold and purchased at the Closing shall
be the amount in cash in US dollars equal to the Per Share Purchase
Price (as defined below), with the aggregate Per Share Purchase
Price to be paid to each Seller and the aggregate escrow amount to
be deducted from Escrow Sellers being rounded to the nearest whole
cent.
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For purposes of this Agreement, the
following terms shall have the following meanings:
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(i)
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“
Aggregate Purchase Price ” shall be
$16,000,000;
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(ii)
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“
Outstanding Shares ” shall be the number of Shares
outstanding at the Closing, which shall be 4,000,000;
and
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(iii)
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“ Per
Share Purchase Price ” shall be the amount equal to the
Aggregate Purchase Price divided by the Outstanding
Shares.
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2.3
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Withholding
Taxes . The Purchaser
shall be entitled to deduct and withhold from any amount payable
pursuant to this Agreement such amounts as may be required to be
deducted or withheld therefrom under any applicable provision of
any Korean, U.S. or other foreign law or under any applicable legal
or tax requirement. To the extent such amounts are so deducted or
withheld, such amounts shall be treated for all purposes under this
Agreement as having been paid to the Person to whom such amounts
would otherwise have been paid. The Parties agree that the
Purchaser will withhold from the applicable Per Share Purchase
Price payable to Innovalue (i) securities transaction tax in
the amount of 0.5% of the applicable aggregate Per Share Purchase
Price and (ii) capital gains tax in the amount of 11% of the
applicable aggregate Per Share Purchase Price or 27.5% of the
actual capital gains realized by Innovalue, whichever is less,
according to information to be provided by Innovalue.
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3.1
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Time and
Place . The consummation
of the sale and purchase of the Sale Shares contemplated hereby
(the “ Closing ”) shall take place at the law
office of Kim & Chang located at Northgate B/D, 66
Juksun-Dong, Chongro-ku, Seoul, Korea (or at such other place as
the parties hereto may mutually agree), on the date (the “
Closing Date ”) that is the later of
(i) October 1, 2008 and (ii) the third Business Day
following the satisfaction or waiver of the conditions set forth in
Section 4.1 and Section 4.2.
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3.2
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Escrow . Prior to the Closing, the Purchaser and the
Seller Representative, on behalf of all Escrow Sellers, shall enter
into an Escrow Agreement substantially in the form of Exhibit
C attached hereto (the “ Escrow Agreement ”)
with the Korea Exchange Bank or such other commercial bank as the
Purchaser and the Seller Representative may agree as escrow agent
(the “ Escrow Agent ”). At the Closing, an
amount equivalent to USD 1,785,360 (One Million Seven Hundred
Eighty Five Thousand Three Hundred Sixty Dollars) which equals the
total of 21.40% of the aggregate purchase price payable to the
Seller Representative prior to any withholdings, 20% of the
aggregate purchase price payable to Sung-Ho Wang prior to any
withholdings and 10% of the aggregate purchase price payable to
each of Innovalue and KB prior to any withholdings (the “
Escrow Amount ”) shall be deposited by the Purchaser
in an escrow account established and maintained in accordance with
the Escrow Agreement (“ Escrow Account ”) for
satisfaction of any claims arising in relation to the indemnities
set forth in Article 9 of this Agreement. The Purchaser shall be
entitled to deduct from any payments due to an Escrow Seller at the
Closing pursuant to this Agreement the following amounts: 21.40% of
the aggregate purchase price payable to the Seller Representative
prior to any withholdings, 20% of the aggregate purchase price
payable to Sung-Ho Wang prior to any withholdings and 10% of the
aggregate purchase price payable to each of Innovalue and KB prior
to any withholdings. The Escrow Amount shall be held in the Escrow
Account for the 2-year period following the Closing Date, unless
released, in whole or in part, in accordance with the Escrow
Agreement during such 2-year period. For the avoidance of doubt,
the parties hereto acknowledge that in the event of any conflict
between the terms of this Agreement and the Escrow Agreement, the
terms of the Escrow Agreement will prevail.
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3.3
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Payment at
Closing . At the Closing,
the Purchaser shall pay the aggregate Per Share Purchase Price for
all of the Sale Shares, net of the Escrow Amount and any applicable
withholding taxes, by wire transfer of immediately available funds
to two separate accounts as follows:
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(a)
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All Sellers
except Innovalue: The Purchaser shall pay the aggregate Per Share
Purchase Price in US Dollars, net of the applicable portion of the
Escrow Amount and any applicable withholding taxes, for all of the
Sale Shares being sold by all of the Sellers except Innovalue to
the bank account at the Escrow Agent designated by the Seller
Representative in writing at least three (3) Business days
prior to the Closing Date. The Seller Representative shall arrange
for such funds to be converted into Korean Won at the applicable
exchange rate and shall disburse to each Seller and to each other
shareholder who has signed a Short-Form SPA the amount of funds to
which each such Seller or other shareholder is entitled pursuant to
this Agreement or a Short-Form SPA with respect to the Shares sold
by such Seller or other shareholder as converted into Korean Won;
and
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(b)
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Innovalue: The
Purchaser shall pay the aggregate Per Share Purchase Price in US
Dollars, net of the applicable portion of the Escrow Amount and any
applicable withholding taxes, for all of the Sale Shares being sold
by Innovalue to the bank account designated by Innovalue in writing
at least three (3) Business Days prior to the Closing
Date.
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3.4
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Closing
Actions of Sellers . At
the Closing, Sellers shall deliver or cause to be delivered, to
Purchaser, the following:
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(a)
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certificates of
non-issuance of share certificates with respect to the Sale Shares
and any other documentation required under applicable Laws to
transfer to Purchaser good and valid title and all rights to, and
all interest in, the Sale Shares free and clear of any and all
Encumbrances and to enable Purchaser to be registered as the holder
thereof;
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(b)
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the resignation
letters of each registered director and the statutory auditor of
the Company whose names are set forth in Schedule 3.4(b)
whose resignation shall be effective as of the Closing
Date;
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(c)
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an appropriate
W-9 form for U.S. tax identification number certification or a W-8
form for non-resident alien certification;
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(e)
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a copy of the
Escrow Agreement executed by the Seller Representative on behalf of
all Escrow Sellers;
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(f)
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a certificate,
dated the Closing Date, signed by the representative director of
the Company, certifying that the conditions set forth in
Section 4.2 have been fulfilled or waived; and
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(g)
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a duly executed
receipt evidencing the receipt of the Purchase Price.
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3.5
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Closing
Actions of Purchaser . At
the Closing:
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(a)
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the Purchaser
shall pay for the Sale Shares in accordance with
Section 3.3.
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(b)
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the Purchaser
shall deliver or cause to be delivered to the Escrow Agent the
Escrow Amount to be held by the Escrow Agent in accordance with the
terms of the Escrow Agreement; and
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(c)
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the Purchaser
shall deliver or cause to be delivered to the Seller Representative
a duly executed receipt evidencing the receipt of the Sale
Shares.
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4.
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Conditions
Precedent to the Closing
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4.1
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Conditions
to Obligations of Sellers and the Company . The obligations of Sellers to sell the Sale
Shares and to take the other actions required to be taken by
Sellers at the Closing and the obligations of the Company under
this Agreement, in each case, is subject to the satisfaction, at or
prior to the Closing, of each of the following conditions (any of
which may be waived in whole or in part by the Seller
Representative on behalf of the Company and the
Sellers):
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(a)
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Representation and Warranties
. The representations and warranties
of Purchaser set forth in Article 5 shall be true and correct in
all material respects as of the Effective Date and as of the
Closing Date as if made on and as of the Closing Date (or, with
respect to representations and warranties that are given as of a
specific date, as of such date).
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(b)
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Performance . Purchaser shall have performed, or complied
with, in all material respects all of its respective obligations,
covenants, agreements and conditions required under this Agreement
to be performed by it, or complied with, on or prior to the Closing
Date.
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(c)
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Government
Approvals . All
Government Approvals necessary for the transactions contemplated
under this Agreement shall have been obtained and be in full force
and effect.
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4.2
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Conditions
to Obligations of Purchaser . The obligations of Purchaser to purchase the
Sale Shares and to take the other actions required to be taken by
Purchaser at the Closing is subject to the satisfaction, at or
prior to the Closing, of each of the following conditions (any of
which may be waived by Purchaser, in whole or in part):
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(a)
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Representation and Warranties
. The representations and warranties
of each of Sellers and the Company set forth in Article 6 and
Article 7, respectively, shall be true and correct in all material
respects as of the Effective Date and as of the Closing Date as if
made on and as of the Closing Date (or, with respect to
representations and warranties that are given as of a specific
date, as of such date).
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(b)
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Performance . Each of Sellers and the Company shall have
performed, or complied with, in all material respects all of its
respective obligations, covenants, agreements and conditions
required under this Agreement to be performed by it, or complied
with, on or prior to the Closing Date.
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(c)
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Government
Approvals . All
Government Approvals necessary for the transactions contemplated
under this Agreement shall have been obtained and be in full force
and effect.
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(d)
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Minimum
Share Transfer . At the
Closing, the Seller Representative shall have procured and
delivered to Purchaser all Short-Form SPAs signed by all or some of
the other shareholders of the Company and other documents required
thereunder to sell the Shares owned by them, which shall, together
with the Sale Shares, constitute at least 95% of the total issued
and outstanding shares of the Company.
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(e)
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Consents and
Waivers . The Company
shall have obtained any and all consents and waivers from third
parties that are required under any agreement entered into by the
Company for consummation of the transactions contemplated by this
Agreement.
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(f)
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Key
Employees . All Key
Employees are continuously employed by the Company as of the
Closing Date and at least 90% of the Company’s employees as
of the Effective Date are continuously employed by the Company as
of the Closing Date and have signed the Proprietary Rights
Agreement in the form agreed between Purchaser and the Company. The
Company’s representative director and the other Key Employees
shall have entered into the agreements with the Company
contemplated by Section 8.7 below.
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(g)
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Legal
Opinion . Purchaser shall
have received from the Company’s legal counsel an executed
legal opinion, in the form attached hereto as Exhibit D.
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(h)
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No Material
Adverse Effect . No
event, change or occurrence shall have occurred, which,
individually or in the aggregate with any other events, changes or
occurrences has or could reasonably be expected to have a material
adverse effect on the business, financial condition, results of
operation or prospects of the Company or on the ability of the
Company or the Sellers to perform their obligations hereunder
(hereinafter, “ Material Adverse Effect
”).
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(i)
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Escrow
Agreement . The Escrow
Agreement shall have been signed by the Escrow Agent and the Seller
Representative on behalf of all of the Escrow Sellers.
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(j)
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Pay-Off
Letter from IBK .
Industrial Bank of Korea (“ IBK ”) shall have
delivered to the Purchaser and the Company a signed
“pay-off” letter in the form attached hereto as Exhibit
E, pursuant to which: (i) IBK certifies as to the aggregate
amount owed by the Company to IBK as of immediately prior to the
Closing (the “ Pay-off Amount ”) under all
financing agreements between the Company and IBK (“ IBK
Loan Agreements ”), which amount shall not be greater
than KRW 1,152,000,000; and (ii) IBK agrees that, among other
things, upon the payment of the Pay-off Amount by the Purchaser to
IBK immediately following the Closing, IBK will release all
security interests or other encumbrances on assets of the Company
and all IBK Loan Agreements will terminate.
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(k)
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Amendment of
Rules of Employment . The
Company shall have convened a meeting of the employees to discuss
the amendments to the Company’s Rules of Employment agreed
between the Company and the Purchaser and at least a majority of
the employees of the Company shall have consented to such
amendments in accordance with relevant Law and
regulations.
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(l)
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Audit of
Company Financial Statements . The Company shall have complied with its
obligations under Section 8.9 and (i) the Purchaser shall
be reasonably satisfied with the status of the pending audit
contemplated by Section 8.9, (ii) the independent
accounting firm retained in accordance with Section 8.9 shall
have completed its audit of the balance sheet of the Company as of
July 31, 2008 in accordance with U.S. GAAP and (iii) the
independent accounting firm retained in accordance with
Section 8.9 shall have completed its review of the
Company’s compliance with the U.S. Foreign Corrupt Practices
Act (“ FCPA ”) and the Purchaser shall be
reasonably satisfied with the result of the FCPA review, provided,
however, that the Purchaser may not rely upon this condition set
forth in this paragraph (l) if the failure of this condition
to be satisfied is primarily attributable to the action or inaction
of the Purchaser.
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(m)
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Agreement
with Joon Jo . In
connection with Joon Jo’s resignation as an employee of the
Company, the Company shall have caused Joon Jo to sign an agreement
substantially in the form of Exhibit F attached hereto.
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5.
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Representations and Warranties of
Purchaser
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Purchaser hereby represents and
warrants to Sellers and the Company that all of the following
statements are true and correct as of the Effective Date and the
Closing Date as if made on and as of the Closing Date (or, with
respect to representations and warranties that are given as of a
specific date, as of such date):
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5.1
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Organization . Purchaser is duly organized and validly
existing under the laws of its jurisdiction of incorporation
and has all requisite power and authority necessary to conduct
its business as it is presently being conducted.
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5.2
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Authorization and Enforceability
. Purchaser has all requisite
corporate power and authority necessary to execute, deliver and
perform its obligations under this Agreement, and any other
documents to be executed by it pursuant to or in connection with
this Agreement. The execution and delivery of this Agreement have
been duly authorized by all necessary corporate action on the part
of Purchaser. This Agreement has been duly executed and delivered
by Purchaser and constitutes its valid and binding obligation,
enforceable against it in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws
relating to or affecting creditors’ rights generally and by
general principles of equity.
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5.3
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No
Conflict . The execution,
delivery and performance of this Agreement will not
(a) violate any provision of Purchaser’s articles of
incorporation or other constitutional documents (b) violate
any Law or Government Approval applicable to Purchaser or
(c) violate or conflict with, or constitute (with due notice
or lapse of time or both) a default under, any agreement or
instrument to which it is a party or by which it is
bound.
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5.4
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No
Proceeding . There is no
Proceeding pending against Purchaser or, to the Knowledge of
Purchaser, threatened against Purchaser, at law or in equity, that
may have the effect of preventing, delaying, making illegal or
otherwise interfering with, any of the transactions contemplated by
this Agreement.
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6.
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Representations and Warranties of
Sellers
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Each Seller hereby severally
represents and warrants to Purchaser that all of the following
statements are true and accurate as of the Effective Date and as of
the Closing Date as if made on and as of the Closing Date (or, with
respect to representations and warranties that are given as of a
specific date, as of such date):
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6.1
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Organization . If such Seller is not a natural person, such
Seller is duly organized and validly existing under the laws of its
jurisdiction of incorporation and has requisite power and authority
necessary to conduct its business as it is presently being
conducted and to own, sell and transfer its respective portion of
the Sale Shares.
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6.2
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Authorization and Enforceability
. Such Seller has all requisite
corporate or individual power and authority necessary to execute,
deliver and perform its obligations under this Agreement, and any
other documents to be executed by it pursuant to or in connection
with this Agreement. If such Seller is not a natural person, the
execution and delivery of, and consummation of all of the
transactions contemplated under, this Agreement have been duly
authorized by all necessary corporate action on the part of such
Seller. This Agreement has been duly executed and delivered by such
Seller and constitutes its valid and binding obligation,
enforceable against it in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar Laws
relating to or affecting creditors’ rights generally and by
general principles of equity.
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6.3
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Ownership of
Shares . Such Seller has
good and marketable title to, the full beneficial interest in and
the legal right and power to sell and deliver, the number of Sale
Shares set forth opposite the name of such Seller in Schedule
2.1 , free and clear of all Encumbrances. Such Sale Shares are
duly authorized and validly issued, fully paid and non-assessable.
Upon consummation of the share purchase transaction contemplated
under this Agreement, Purchaser will acquire from such Seller good
and marketable title to such Sale Shares with all rights and
entitlements as the owner and holder thereof free and clear of all
Encumbrances.
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6.4
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No
Conflict . The execution
and delivery of, and the consummation of transactions contemplated
by, this Agreement will not (a) if such Seller is not a
natural person, violate any provision of the articles of
incorporation or other constitutional documents of such Seller,
(b) violate any Law or Government Approval applicable to such
Seller, or (c) violate or conflict with, or constitute (with
due notice or lapse of time or both) a default under, any agreement
or instrument to which such Seller is a party or by which it is
bound.
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6.5
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Government
Approval . No Government
Approval is or will be necessary for the valid execution, delivery
and performance by such Seller of this Agreement or the
consummation by such Seller of the transactions contemplated by
this Agreement.
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6.6
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No
Proceeding . There is no
Proceeding pending against such Seller or, to the Knowledge of such
Seller, threatened against such Seller, at law or in equity, that
may have the effect of preventing, delaying, making illegal or
otherwise interfering with, any of the transactions contemplated by
this Agreement.
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6.7
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Non-US
Citizen or Resident .
Each Seller is a citizen of Korea (other than Innovalue) and is not
a citizen of the United States or a resident of the United States
within the meaning of the income tax treaty between Korea and the
United States.
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7.
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Representations and Warranties of the
Company
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The Company and the Escrow Sellers
hereby jointly represent and warrant that all of the following
statements are true and accurate as of the Effective Date and as of
the Closing Date as if made on and as of the Closing Date (or, with
respect to representations and warranties that are given as of a
specific date, as of such date):
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7.1
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Organization . The Company is duly incorporated and validly
existing under the Laws of Korea and has all necessary corporate
power and authority to conduct its business as it is presently
being conducted and to own and use the assets and properties that
it purports to own and use.
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7.2
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Authorization and Enforceability
. The Company has all requisite
corporate power and authority necessary to execute, deliver and
perform its obligations under this Agreement. The execution and
delivery of, and consummation of all of the transactions
contemplated under, this Agreement have been duly authorized by all
necessary corporate action on the part of the Company. This
Agreement has been duly executed and delivered by the Company and
constitutes valid and binding obligation of the Company,
enforceable against it in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws
relating to or affecting creditors’ rights generally and by
general principles of equity.
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7.3
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No
Conflict . The execution,
delivery and performance of this Agreement and the consummation of
any of the transactions contemplated hereby do not:
(a) contravene, conflict with, or result in a violation of any
provision of the Articles of Incorporation or other constitutional
or governing documents of the Company, (b) contravene,
conflict with, or result in a violation of, any Law or Government
Approval applicable to the Company or any of the assets owned or
used by the Company or (c) violate, conflict with, result in
any breach of, constitute a default (or event which with the giving
of notice or lapse of time, or both, would become a default) under,
require any consent under, or give to others any rights of
terminatio
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