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SHAREHOLDERS' AGREEMENT

Shareholder Agreement

SHAREHOLDERS' AGREEMENT | Document Parties: SFH Acquisition Corp | SFH1 Acquisition Corp You are currently viewing:
This Shareholder Agreement involves

SFH Acquisition Corp | SFH1 Acquisition Corp

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Title: SHAREHOLDERS' AGREEMENT
Date: 10/29/2008

SHAREHOLDERS' AGREEMENT, Parties: sfh acquisition corp , sfh1 acquisition corp
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SHAREHOLDERS’ AGREEMENT

 

THIS AGREEMENT dated this 6 th day of June 2008 by and between

 

 

1.

Mr. Sanjiw Kumar Singh, Mr. Raju Kumar Singh, and Mr. Rana Rajesh Kumar residing at F-1194 Chittranjan Park, New DeIhi-110019 (hereinafter collectively referred to as “Dr. Sanjiw which expression shall, subject to the terms of this Agreement, include their successors, nominees, legal representative and permitted assigns) of the First Part.

 

AND

 

 

2.

Armen Karapetyan, and Joseph Rached the majority shareholders of SFH1 Acquisition Corp., (hereinafter collectively referred to as “the Shareholders” which expression shall subject to the terms of this Agreement, include their heirs, legal representatives, successors and permitted assigns) of the Second Part.

 

AND

 

 

3.

SFH Acquisition Corp., a Delaware corporation, incorporated under the laws of U.S. and having its registered office at 3363 NE 163 rd Street Suite 705,   North Miami Beach, Florida (hereinafter referred to as “the Company” which expression shall, subject to the terms of this Agreement, include its successors-in-business and permitted assigns).

 


 

WHEREAS

 

 

A.

The Company had an authorized share capital of 100,000,000 shares of common stock of   which 10,793,650 par value $.0001 are issued and outstanding as of June 2, 2008 of which the Shareholders own a total of 5,000,000 shares of Common Stock.

 

 

 

 

 

B.

The Company acquired from Dr. Sanjiw one hundred percent (100%) of the shares of Protech Biosystems Pvt. Ltd, a company incorporated in India, and in exchange agreed to allot six million one hundred thousand (6.1 million) shares of the Company to Dr. Sanjiw . Following issuance of the 6.1 million shares of common stock, Dr. Sanjiw will own approximately 36.1% of the issued and outstanding common stock of the Company.

 

 

C.

For the aforesaid purpose, the parties had executed a Share Exchange Agreement dated the same date in June 2008, summarizing the proposed terns of the transaction and have on this date authorized the issuance of six million one hundred thousand (6.1 million) shares of the Company to Dr. Sanjiw.

 

NOW IT IS HEREBY AGREED BETWEEN THE PARTIES AS FOLLOWS:

 

Article I

 

Definitions

 

In this Agreement the expressions mentioned below shall have the following meaning:--

 

 

1.1

“Act” means the Securities Act of 1933 as amended from time to time.

 

 

1.2

“Affiliate” means companies within the same “group”, and any entity, which controls, is controlled by, or is under the common control of any of the Parties to this Agreement. The term “control” being used in the sense of power to elect, appoint or remove either singly by itself or together with other Affiliates a majority of its directors or to direct and control the management of a company, or to hold in excess of 50% of the voting interest. The term Common Control being used in the sense that the shareholder and the other person are both ultimately controlled by the same person. Common Control shall mean the predominant ultimate beneficial interest and/or effective control being exercised by the same person or a group of persons over third parties, any Party to this Agreement and/or any of their Affiliates.

 

2


 

 

1.3

“Closing Date” means the date of execution of this Agreement;

 

 

1.4

“Law” includes all applicable statutes, enactments, acts of legislature or Parliament, laws, ordinances, rules, bye-laws, regulations, notifications, guidelines, policies, directions, directives and orders of any Government, statutory authority, tribunal, board, court or recognized stock exchange.

 

 

1.5

“Parties” means the parties to this Agreement when referred to collectively and “Party” when referred to individually.

 

 

1.6

“Related Person” means and includes:-

 

 

(i)

any company in which any Shareholder holds more than 10% of the equity share capital of such company;

 

 

(ii)

any company which is under the control and management of a Shareholder;

 

 

(iii)

any holding or subsidiary company of the Company or of a Shareholder;

 

 

(iv)

any firm or company in which a Shareholder is, or was within the six months immediately preceding the concerned date, a director or partner or has any control or ownership interest in excess of 10% of the shareholding or the share as the case may be;

 

3


 

 

(v)

any director of the or of any Shareholder or of any holding or subsidiary company of the Company or of a Shareholder.

 

 

1.7

“Senior Management” means any officer or director of either the   Company or personnel of the Company or Protech or any other individual drawing emoluments or salaries in excess of $10,000 or more per month or a person functionally heading a department.

 

 

1.8

“Stock Option(s)” or “ESOP” means the equity shares of the Company which may be issued in favor of the Employees of the Company.

 

 

1.9

“Third Party” means any party which is not a party to this Agreement.

 

 

1.10

Headings are used for convenience only and shall not affect the meaning or interpretation of this Agreement.

 

 

1.11

In this Agreement, (unless the context requires otherwise):--

 

 

(i)

reference to the singular includes a reference to the plural and vice versa,

 

 

(ii)

reference to any gender includes a reference to all other genders.

 

 

(iii)

reference to any person includes any legal or natural person, partnership, firm, trust, company, government or local authority, department or other body (whether corporate or unincorporated).

 

 

(iv)

reference to an individual shall include his legal representative, successor, legal heir, executor and administrator.

 

4


 

 

(v)

words and expressions used but not defined in this Agreement shall have the same meaning as in the Act.

 

 

(vi)

reference to statutory provisions shall be construed as meaning and including references also to any amendment or re-enactment (whether before or after the date of this Agreement) for the time being in force and to all statutory instruments or orders made pursuant to statutory provisions.

 

 

(vii)

references to any statute or regulation made using a commonly used abbreviation shall be construed as a reference to the title of the statute or regulation.

 

 

(viii)

references to any Article, Clause or Annexure shall be deemed to be a reference to an Article, Clause or Annexure of or to this Agreement.

 

 

1.12

The Schedules to this Agreement shall form an integral part of this Agreement.

 

 

1.13

For the purpose of this Agreement, “Confidential Information” shall include all:

 

 

(a)

Production process, marketing techniques and arrangements, mailing lists, purchasing information, pricing policies, quoting procedure, financial information, customer and prospect names and requirements, employee, customer, supplier and distributor data, price lists and other materials or information relating to the Company’s business and activities and the manner in which the Company does business;

 

 

(b)

Computer software, whether, existing or hereafter developed for use on any operating system or machine, all modifications, enhancements and versions and all options available with respect thereto, and all future products developed or derived therefrom;

 

5


 

 

(c)

Source and object code, flowcharts, algorithms, coding sheets, routines, subroutines, compilers, assemblers, design concepts and related documentation and manuals.

 

(d)

Discoveries, concept and ideas including, without limitation, the nature and results of research and development activities, processes, formulas, inventions, computer-related equipment or technology, techniques, “know--how”, designs, drawings and specifications.

 

 

(e)

All other materials or information related to the business or activities of the Company which are not generally known to others engaged in similar business or activities.

 

(f)

All ideas which are derived from or related to the access to or knowledge of any of the enumerated materials and information; and

 

 

(g)

All information about or belonging to suppliers and clients of, and all parties to any agreement with the Company which would be confidential information pursuant to the above definition if such other parties were in the position of the Company.

 

The term Confidential Information shall not include

 

 

a)

information or knowledge which may become available to the public generally;

 

 

b)

any disclosure or use required by law or the order of a court or tribunal of competent jurisdiction or by any appropriate regulatory authority;

 

 

c)

any disclosure or use with the consent of the Board.

 

6


 

Article 2.

 

Representations and Warranties of the   Shareholders; Dr. Sanjiw and the Company

 

 

(a)   The Shareholders and the Company hereby jointly and severally represent and warrant to Dr.   Sanjiw that the following statements are true, accurate and not misleading as on the date of this Agreement:

 

2.1

The Company is a corporation legally organi


 
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