SHAREHOLDERS’
AGREEMENT
THIS AGREEMENT dated this 6
th day of June 2008 by and between
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1.
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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.
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AND
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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.
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AND
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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).
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WHEREAS
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A.
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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.
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B.
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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.
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C.
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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.
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NOW IT IS HEREBY AGREED BETWEEN THE PARTIES AS
FOLLOWS:
Definitions
In this Agreement the expressions mentioned
below shall have the following meaning:--
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1.1
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“Act” means the Securities Act of 1933 as amended from
time to time.
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1.2
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“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.
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1.3
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“Closing Date”
means the date of execution of this
Agreement;
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1.4
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“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.
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“Parties”
means the parties to this Agreement
when referred to collectively and
“Party” when referred to
individually.
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“Related Person”
means and includes:-
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(i)
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any company in
which any Shareholder holds more than 10% of the equity share
capital of such company;
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(ii)
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any company
which is under the control and management of a
Shareholder;
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(iii)
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any holding or
subsidiary company of the Company or of a Shareholder;
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(iv)
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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;
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(v)
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any director of
the or of any Shareholder or of
any holding or subsidiary company of the Company or of a
Shareholder.
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1.7
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“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.
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1.8
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“Stock Option(s)”
or
“ESOP” means the equity shares of the
Company which may be issued in favor of the Employees of the
Company.
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1.9
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“Third Party”
means any party which is not a party
to this Agreement.
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1.10
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Headings are
used for convenience only and shall not affect the meaning or
interpretation of this Agreement.
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1.11
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In this
Agreement, (unless the context requires otherwise):--
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(i)
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reference to
the singular includes a reference to the plural and vice
versa,
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(ii)
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reference to
any gender includes a reference to all other genders.
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(iii)
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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).
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(iv)
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reference to an
individual shall include his legal representative, successor, legal
heir, executor and administrator.
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(v)
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words and
expressions used but not defined in this Agreement shall have the
same meaning as in the Act.
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(vi)
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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.
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(vii)
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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.
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(viii)
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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.
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1.12
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The Schedules
to this Agreement shall form an integral part of this
Agreement.
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1.13
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For the purpose
of this Agreement, “Confidential Information” shall
include all:
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(a)
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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;
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(b)
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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;
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(c)
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Source and
object code, flowcharts, algorithms, coding sheets, routines,
subroutines, compilers, assemblers, design concepts and related
documentation and manuals.
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(d)
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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.
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(e)
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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.
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(f)
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All ideas which
are derived from or related to the access to or knowledge of any of
the enumerated materials and information; and
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(g)
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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.
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The term
Confidential Information shall not include
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a)
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information or
knowledge which may become available to the public
generally;
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b)
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any disclosure
or use required by law or the order of a court or tribunal of
competent jurisdiction or by any appropriate regulatory
authority;
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c)
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any disclosure
or use with the consent of the Board.
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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:
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The Company is
a corporation legally organi
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