SHARE EXCHANGE
AGREEMENT
By and Among
FLEURS DE VIE, INC.,
a Nevada corporation
and
AMERICAN D&C INVESTMENT,
INC.,
a Delaware corporation
and
the Shareholders of American D&C
Investment, Inc.
Dated as of August 11,
2009
SHARE EXCHANGE
AGREEMENT
THIS SHARE
EXCHANGE AGREEMENT (hereinafter referred to as this
“Agreement”) is entered into as of this 11th day
of August 2009, by and among Fleurs De Vie, Inc. , a Nevada
corporation (hereinafter referred to as “FDVI” or the
“Company”), American D&C Investment, Inc. ,
a Delaware corporation (hereinafter referred to as “American
D&C”) and the shareholders of American D&C (the
“American D&C Shareholders”), upon the following
premises:
Premises
WHEREAS , FDVI is a publicly held corporation organized
under the laws of the State of Nevada with no significant
operations;
WHEREAS , American D&C is a private company
incorporated under the laws of Delaware;
WHEREAS , American D&C owns 100% of the equity of
DaQing Yueyu Oilfield Underground Technology Services Co.,
Ltd. (“DaQing Yueyu”), a wholly foreign-owned
enterprise (WOFE) organized under the laws of the People’s
Republic of China (“Daqing
Yueyu”);
WHEREAS , the Boards of Directors of each of FDVI and
American D&C have determined that a business combination
between American D&C and FDVI through a share exchange among
FDVI, American D&C and American D&C Shareholders, is
advisable and in the best interests of their respective companies
and stockholders and in furtherance thereof have approved the share
exchange; and
WHEREAS , FDVI agrees to acquire up to 100% of the
issued and outstanding common stock, $0.0001 par value (the
“American D&C Shares”) of American D&C from the
American D&C Shareholders in exchange for the issuance of a
total of 30,000,000 shares of FDVE common stock equal to
approximately 94.17% of the issued and outstanding common stock,
$0.001 par value (the “Common Stock”) of FDVI (the
“Exchange”); and the American D&C Shareholders
agree to exchange their shares of American D&C on the terms
described herein. On the Closing Date, American D&C will become
a wholly-owned subsidiary of FDVI;
Agreement
NOW THEREFORE , on the stated premises and for and in
consideration of the mutual covenants and agreements hereinafter
set forth and the mutual benefits to the parties to be derived here
from, and intending to be legally bound hereby, it is hereby agreed
as follows:
ARTICLE I
REPRESENTATIONS, COVENANTS, AND
WARRANTIES OF AMERICAN D&C
As an inducement to, and to obtain the reliance
of FDVI, except as set forth in the American D&C Schedules, (as
hereinafter defined), American D&C represents and warrants as
of the Closing Date, as defined below, as follows:
Section 1.01
Incorporation .
American D&C is a company duly incorporated,
validly existing, and in good standing under the laws
of Delaware and has the corporate power and is duly
authorized under all applicable laws, regulations, ordinances, and
orders of public authorities to carry on its business in all
material respects as it is now being conducted. Included
in the American D&C Schedules are complete and correct copies
of the articles of incorporation of American D&C as in effect
on the date hereof. The execution and delivery of this
Agreement does not, and the consummation of the transactions
contemplated hereby will not, violate any provision of American
D&C’s articles of incorporation. American
D&C has taken all actions required by law, its articles of
incorporation, or otherwise to authorize the execution and delivery
of this Agreement. American D&C has full power,
authority, and legal capacity and has taken all action required by
law, its articles of incorporation, and otherwise to consummate the
transactions herein contemplated.
Section 1.02 Authorized
Shares .
The
number of shares which American D&C is authorized to issue
consists of 100,000,000 shares of common stock, par value $0.0001
per share. There are 1,000 shares of common stock
currently issued and outstanding. The issued and
outstanding shares are validly issued, fully paid, and
non-assessable and not issued in violation of the preemptive or
other rights of any person.
Section 1.03 Subsidiaries
and Predecessor Corporations
. Except for DaQing Yueyu, American
D&C does not have any subsidiaries, and does not own,
beneficially or of record, any shares of any other
corporation.
Section 1.04 Financial
Statements .
(a) Included in the
American D&C Schedules are (i) the audited financial statements
of American D&C for the years ended September 30, 2008 and 2007
and (ii) the reviewed financial statements for the quarters ended
March 31, 2009.
(b) All such financial
statements have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods
involved. The balance sheets are true and accurate and present
fairly as of their respective dates the financial condition of
American D&C. As of the date of such balance sheets,
except as and to the extent reflected or reserved against therein,
American D&C had no liabilities or obligations (absolute or
contingent) which should be reflected in the balance sheets or the
notes thereto prepared in accordance with generally accepted
accounting principles, and all assets reflected therein are
properly reported and present fairly the value of the assets of
American D&C, in accordance with generally accepted accounting
principles. The statements of operations, stockholders’
equity and cash flows reflect fairly the information required to be
set forth therein by generally accepted accounting
principles.
(c) American D&C
has duly and punctually paid all Governmental fees and taxation
which it has become liable to pay and has duly allowed for all
taxation reasonably foreseeable and is under no liability to pay
any penalty or interest in connection with any claim for
governmental fees or taxation and American D&C has made any and
all proper declarations and returns for taxation purposes and all
information contained in such declarations and returns is true and
complete and full provision or reserves have been made in its
financial statements for all Governmental fees and
taxation.
(d) The books and
records, financial and otherwise, of American D&C are in all
material aspects complete and correct and have been maintained in
accordance with good business and accounting practices.
(e) All of American
D&C’s assets are reflected on its financial statements,
and, except as set forth in the American D&C Schedules or the
financial statements of or the notes thereto, American D&C has
no material liabilities, direct or indirect, matured or unmatured,
contingent or otherwise.
. The information concerning American
D&C set forth in this Agreement and in the American D&C
Schedules is complete and accurate in all material respects and
does not contain any untrue statement of a material fact or omit to
state a material fact required to make the statements made, in
light of the circumstances under which they were made, not
misleading. In addition, American D&C has fully
disclosed in writing to FDVI (through this Agreement or the
American D&C Schedules) all information relating to matters
involving American D&C or its assets or its present or past
operations or activities which (i) indicated or may indicate, in
the aggregate, the existence of a greater than $50,000 liability ,
(ii) have led or may lead to a competitive disadvantage on the part
of American D&C or (iii) either alone or in aggregation with
other information covered by this Section, otherwise have led or
may lead to a material adverse effect on American D&C, its
assets, or its operations or activities as presently conducted or
as contemplated to be conducted after the Closing Date, including,
but not limited to, information relating to governmental, employee,
environmental, litigation and securities matters and transactions
with affiliates.
Section 1.06 Absence of
Certain Changes or Events
. Since March 31, 2009, to the best
of American D&C’s knowledge:
(a) there has not been
any material adverse change in the business, operations,
properties, assets, or condition (financial or otherwise) of
American D&C;
(b) American D&C
has not (i) declared or made, or agreed to declare or make, any
payment of dividends or distributions of any assets of any kind
whatsoever to stockholders or purchased or redeemed, or agreed to
purchase or redeem, any of its shares; (ii) made any material
change in its method of management, operation or accounting, (iii)
entered into any other material transaction other than sales in the
ordinary course of its business; or (iv) made any increase in or
adoption of any profit sharing, bonus, deferred compensation,
insurance, pension, retirement, or other employee benefit plan,
payment, or arrangement made to, for, or with its officers,
directors, or employees; and
Section 1.07 Litigation and
Proceedings
. There are no actions, suits, proceedings, or
investigations pending or, to the knowledge of American D&C
after reasonable investigation, threatened by or against American
D&C or affecting American D&C or its properties, at law or
in equity, before any court or other governmental agency or
instrumentality, domestic or foreign, or before any arbitrator of
any kind. American D&C does not have any knowledge
of any material default on its part with respect to any judgment,
order, injunction, decree, award, rule, or regulation of any court,
arbitrator, or governmental agency or instrumentality or of any
circumstances which, after reasonable investigation, would result
in the discovery of such a default.
(a) All
“material” contracts, agreements, franchises, license
agreements, debt instruments or other commitments to
which American D&C is a party or by which it or any
of its assets, products, technology, or properties are bound other
than those incurred in the ordinary course of business are set
forth on the American D&C Schedules. A
“material” contract, agreement, franchise, license
agreement, debt instrument or commitment is one which (i) will
remain in effect for more than six (6) months after the date of
this Agreement or (ii) involves aggregate obligations of at least
fifty thousand dollars ($50,000);
(b) All contracts,
agreements, franchises, license agreements, and other commitments
to which American D&C is a party or by which its properties are
bound and which are material to the operations of American D&C
taken as a whole are valid and enforceable by American D&C in
all respects, except as limited by bankruptcy and insolvency laws
and by other laws affecting the rights of creditors generally;
and
Section 1.09 No Conflict
With Other Instruments
. The execution of this Agreement and
the consummation of the transactions contemplated by this Agreement
will not result in the breach of any term or provision of,
constitute a default under, or terminate, accelerate or modify the
terms of any indenture, mortgage, deed of trust, or other material
agreement, or instrument to which American D&C is a party or to
which any of its assets, properties or operations are
subject.
Section 1.10 Compliance With
Laws and Regulations
. To the best of its knowledge,
American D&C has complied with all applicable statutes and
regulations of any federal, state, or other governmental entity or
agency thereof, except to the extent that noncompliance would not
materially and adversely affect the business, operations,
properties, assets, or condition of American D&C or except to
the extent that noncompliance would not result in the occurrence of
any material liability for American D&C. This
compliance includes, but is not limited to, the filing of all
reports to date with federal and state securities
authorities.
Section 1.11 Approval of
Agreement
. The Board of Directors of American
D&C has authorized the execution and delivery of this Agreement
by American D&C and has approved this Agreement and the
transactions contemplated hereby, and will recommend to the
American D&C Shareholders that the Exchange be
accepted.
Section 1.12 American
D&C Schedules
. American D&C has delivered to
FDVI the following schedules, which are collectively referred to as
the “American D&C Schedules” and which consist of
separate schedules dated as of the date of execution of this
Agreement, all certified by the chief executive officer of American
D&C as complete, true, and correct as of the date of this
Agreement in all material respects:
(a) a schedule
containing complete and correct copies of the articles of
incorporation and amendments thereto of American D&C in effect
as of the date of this Agreement;
(b) a schedule
containing the financial statements identified in paragraph
1.04(a);
(c) a schedule setting
forth a description of any material adverse change in the business,
operations, property, inventory, assets, or condition of American
D&C since March 31, 2009, required to be provided pursuant to
section 1.07 hereof;
(d) a schedule of any
exceptions to the representations made herein; and
(e) a schedule
containing the other information requested above.
American D&C shall cause the American
D&C Schedules and the instruments and data delivered to FDVI
hereunder to be promptly updated after the date hereof up to and
including the Closing Date.
Section 1.13 Valid
Obligation
. This Agreement and all agreements
and other documents executed by American D&C in connection
herewith constitute the valid and binding obligation of American
D&C, enforceable in accordance with its or their terms, except
as may be limited by bankruptcy, insolvency, moratorium or other
similar laws affecting the enforcement of creditors’ rights
generally and subject to the qualification that the availability of
equitable remedies is subject to the discretion of the court before
which any proceeding therefore may be brought.
ARTICLE II
REPRESENTATIONS, COVENANTS, AND
WARRANTIES OF FDVI
As an inducement to, and to obtain the reliance
of American D&C and the American D&C Shareholders, except
as set forth in the FDVI Schedules (as hereinafter defined), FDVI
represents and warrants, as of the date hereof and as of the
Closing Date, as follows:
Section 2.01
Organization
. FDVI is a corporation duly
organized, validly existing, and in good standing under the laws of
the State of Nevada and has the corporate power and is duly
authorized under all applicable laws, regulations, ordinances, and
orders of public authorities to carry on its business in all
material respects as it is now being conducted. Included
in the FDVI Schedules are complete and correct copies of the
certificate of incorporation and bylaws of FDVI as in effect on the
date hereof. The execution and delivery of this Agreement does not,
and the consummation of the transactions contemplated hereby will
not, violate any provision of FDVI’s certificate of
incorporation or bylaws. FDVI has taken all action
required by law, its certificate of incorporation, its bylaws, or
otherwise to authorize the execution and delivery of this
Agreement, and FDVI has full power, authority, and legal right and
has taken all action required by law, its certificate of
incorporation, bylaws, or otherwise to consummate the transactions
herein contemplated.
Section 2.02
Capitalization
. FDVI authorized capitalization
consists of 140,000,000 shares of common stock, par value $0.001
per share (“FDVI Common Stock”), of which 1,857,000
shares are issued and outstanding, and 10,000,000 shares of
preferred stock, par value $0.001 per share, of which no shares are
issued and outstanding as of the date hereof. All issued
and outstanding shares are legally issued, fully paid, and
non-assessable and not issued in violation of the preemptive or
other rights of any person.
Section 2.03 Subsidiaries
and Predecessor Corporations
. FDVI does not have any predecessor
corporation(s), no subsidiaries, and does not own, beneficially or
of record, any shares of any other corporation.
Section 2.04 Financial
Statements.
(a) Included in the
FDVI Schedules are (i) the audited balance sheets of FDVI for the
years ended December 31, 2008 and 2007 and the related audited
statements of operations, stockholders’ equity and cash flows
for December 31, 2008 and 2007 together with the notes to such
statements and the opinions of Paritz & Company, P.A. and
Malone & Bailey, P.C., independent certified public accountants
with respect thereto.
(b) Included in the
FDVI Schedules are: (i) unaudited balance sheets of March
31, 2009 and the related unaudited statements of operations,
stockholders’ equity and cash flows for the quarters ended on
such dates and all such financial statements have been reviewed by
Paritz & Company, P.A.
(c) All such financial
statements have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods
involved. The FDVI balance sheets are true and accurate and present
fairly as of their respective dates the financial condition of
FDVI. As of the date of such balance sheets, except as
and to the extent reflected or reserved against therein, FDVI had
no liabilities or obligations (absolute or contingent) which should
be reflected in the balance sheets or the notes thereto prepared in
accordance with generally accepted accounting principles, and all
assets reflected therein are properly reported and present fairly
the value of the assets of FDVI, in accordance with generally
accepted accounting principles. The statements of operations,
stockholders’ equity and cash flows reflect fairly the
information required to be set forth therein by generally accepted
accounting principles.
(d) FDVI has no
liabilities with respect to the payment of any federal, state,
county, local or other taxes (including any deficiencies, interest
or penalties), except for taxes accrued but not yet due and
payable.
(e) FDVI has timely
filed all state, federal or local income and/or franchise tax
returns required to be filed by it from inception to the date
hereof. Each of such income tax returns reflects the
taxes due for the period covered thereby, except for amounts which,
in the aggregate, are immaterial.
(f) The books and
records, financial and otherwise, of FDVI are in all material
aspects complete and correct and have been maintained in accordance
with good business and accounting practices
(g) All of FDVI assets
are reflected on its financial statements. FDVI has no material
liabilities, direct or indirect, matured or unmatured, contingent
or otherwise. FDVI further represents that any
liabilities reflected on the balance sheet as of March 31,
2009 have been fully paid as of the date hereof.
.
The information
concerning FDVI set forth in this Agreement and the FDVI Schedules
is complete and accurate in all material respects and does not
contain any untrue statements of a material fact or omit to state a
material fact required to make the statements made, in light of the
circumstances under which they were made, not
misleading. In addition, FDVI has fully disclosed in
writing to American D&C (through this Agreement or the FDVI
Schedules) all information relating to matters involving FDVI or
its assets or its present or past operations or activities which
(i) indicated or may indicate, in the aggregate, the existence of a
greater than $1,000 liability , (ii) have led or may lead to a
competitive disadvantage on the part of FDVI or (iii) either alone
or in aggregation with other information covered by this Section,
otherwise have led or may lead to a material adverse effect on
FDVI, its assets, or its operations or activities as presently
conducted or as contemplated to be conducted after the Closing
Date, including, but not limited to, information relating to
governmental, employee, environmental, litigation and securities
matters and transactions with affiliates.
Section 2.06 Options or
Warrants
. There are no existing options,
warrants, calls, or commitments of any character relating to the
authorized and unissued stock of FDVI.
Section 2.07 Absence of
Certain Changes or Events
. Since the date of the most recent
FDVI balance sheet:
(a) there has not been
(i) any material adverse change in the business, operations,
properties, assets or condition of FDVI or (ii) any damage,
destruction or loss to FDVI (whether or not covered by insurance)
materially and adversely affecting the business, operations,
properties, assets or condition of FDVI;
(b) FDVI has not (i)
amended its certificate of incorporation or bylaws except as
required by this Agreement; (ii) declared or made, or agreed to
declare or make any payment of dividends or distributions of any
assets of any kind whatsoever to stockholders or purchased or
redeemed, or agreed to purchase or redeem, any of its capital
stock; (iii) waived any rights of value which in the aggregate are
outside of the ordinary course of business or material considering
the business of FDVI; (iv) made any material change in its method
of management, operation, or accounting; (v) entered into any
transactions or agreements other than in the ordinary course of
business; (vi) made any accrual or arrangement for or payment of
bonuses or special compensation of any kind or any severance
or termination pay to any present or former officer or
employee; (vii) increased the rate of compensation payable or to
become payable by it to any of its officers or directors or any of
its salaried employees whose monthly compensation exceed $1,000;
or (viii) made any increase in any profit sharing,
bonus, deferred compensation, insurance, pension, retirement, or
other employee benefit plan, payment, or arrangement, made to, for
or with its officers, directors, or employees;
(c) FDVI has not (i)
granted or agreed to grant any options, warrants, or other rights
for its stock, bonds, or other corporate securities calling for the
issuance thereof; (ii) borrowed or agreed to borrow any funds or
incurred, or become subject to, any material obligation or
liability (absolute or contingent) except liabilities incurred in
the ordinary course of business; (iii) paid or agreed to pay any
material obligations or liabilities (absolute or contingent) other
than current liabilities reflected in or shown on the most recent
FDVI balance sheet and current liabilities incurred since that date
in the ordinary course of business and professional and other fees
and expenses in connection with the preparation of this Agreement
and the consummation of the transaction contemplated hereby; (iv)
sold or transferred, or agreed to sell or transfer, any of its
assets, properties, or rights (except assets, properties, or rights
not used or useful in its business which, in the aggregate have a
value of less than $1,000), or canceled, or agreed to cancel, any
debts or claims (except debts or claims which in the aggregate are
of a value less than $1,000); (v) made or permitted any amendment
or termination of any contract, agreement, or license to which it
is a party if such amendment or termination is material,
considering the business of FDVI; or (vi) issued, delivered or
agreed to issue or deliver, any stock, bonds or other corporate
securities including debentures (whether authorized and unissued or
held as treasury stock), except in connection with this Agreement;
and
(d) to its knowledge,
FDVI has not become subject to any law or regulation which
materially and adversely affects, or in the future, may adversely
affect, the business, operations, properties, assets or condition
of FDVI.
Section 2.08 Litigation and
Proceedings
. There are no actions, suits,
proceedings or investigations pending or, to the knowledge of FDVI
after reasonable investigation, threatened by or against FDVI or
affecting FDVI or its properties, at law or in equity, before any
court or other governmental agency or instrumentality, domestic or
foreign, or before any arbitrator of any kind except as disclosed
in the FDVI Schedules. FDVI has no knowledge of any
default on its part with respect to any judgment, order, writ,
injunction, decree, award, rule or regulation of any court,
arbitrator, or governmental agency or instrumentality or any
circumstance which after reasonable investigation would result in
the discovery of such default.
(a) FDVI is not a
party to, and its assets, products, technology and properties are
not bound by, any contract, franchise, license agreement,
agreement, debt instrument or other commitments whether such
agreement is in writing or oral.
(b) FDVI is not a
party to or bound by, and the properties of FDVI are not subject to
any contract, agreement, other commitment or instrument; any
charter or other corporate restriction; or any judgment, order,
writ, injunction, decree, or award; and
(c) FDVI is not a
party to any oral or written (i) contract for the employment of any
officer or employee; (ii) profit sharing, bonus, deferred
compensation, stock option, severance pay, pension benefit or
retirement plan, (iii) agreement, contract, or indenture relating
to the borrowing of money, (iv) guaranty of any obligation, (vi)
collective bargaining agreement; or (vii) agreement with any
present or former officer or director of FDVI.
Section 2.10 No Conflict
With Other Instruments
. The execution of this Agreement and
the consummation of the transactions contemplated by this Agreement
will not result in the breach of any term or provision of,
constitute a default under, or terminate, accelerate or modify the
terms of, any indenture, mortgage, deed of trust, or other material
agreement or instrument to which FDVI is a party or to which any of
its assets, properties or operations are subject.
Section 2.11 Compliance With
Laws and Regulations
. To the best of its knowledge, FDVI
has complied with all applicable statutes and regulations of any
federal, state, or other applicable governmental entity or agency
thereof. This compliance includes, but is not limited
to, the filing of all reports to date with federal and state
securities authorities.
Section 2.12 Approval of
Agreement
. The Board of Directors of FDVI has
authorized the execution and delivery of this Agreement by FDVI and
has approved this Agreement and the transactions contemplated
hereby.
Section 2.13 Material
Transactions or Affiliations
. Except as disclosed herein and in
the FDVI Schedules, there exists no contract, agreement or
arrangement between FDVI and any predecessor and any person who was
at the time of such contract, agreement or arrangement an officer,
director, or person owning of record or known by FDVI to own
beneficially, 5% or more of the issued and outstanding common stock
of FDVI and which is to be performed in whole or in part after the
date hereof or was entered into not more than three years prior to
the date hereof. Neither any officer, director, nor 5%
Shareholders of FDVI has, or has had since inception of FDVI, any
known interest, direct or indirect, in any such transaction with
FDVI which was material to the business of FDVI. FDVI
has no commitment, whether written or oral, to lend any funds to,
borrow any money from, or enter into any other transaction with,
any such affiliated person.
Section 2.14 FDVI
Schedules
. FDVI has delivered to American
D&C the following schedules, which are collectively referred to
as the “FDVI Schedules” and which consist of separate
schedules, which are dated the date of this Agreement, all
certified by the chief executive officer of FDVI to be complete,
true, and accurate in all material respects as of the date of this
Agreement.
(a) a schedule
containing complete and accurate copies of the certificate of
incorporation and bylaws of FDVI as in effect as of the date of
this Agreement;
(b) a schedule
containing the financial statements of FDVI identified in paragraph
2.04(a) and (b);
(c) a schedule setting
forth a description of any material adverse change in the business,
operations, property, inventory, assets, or condition of FDVI since
March 31, 2009, required to be provided pursuan
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