Document:

Unassociated Document

Exhibit 4.4

 

PIPER ACQUISITION II, INC.

2901 W. Coast Highway, 3rd Floor

Newport Beach, California 92663

April 28, 2011

_______________

_______________

_______________

_______________

Re:           Piper   Acquisition II Inc. (the “Company”)

 

 

5

Mr. ___________:

Reference is hereby made to the 10% convertible note (the “Note”) issued by the Company on [insert issuance date] to the undersigned (the “Investor”).  The Note is convertible, at any time at the option of the Investor into shares of common stock of the Company at a conversion price of $0.11 per share.  The Note bears interest at 10% per annum and matured in [insert date 12 months from issuance date] (the “Maturity Date”).

By executing this letter, Investor agrees to extend the Maturity Date of the Note to October 30, 2011.

In consideration for extending the Maturity Date,  the Company hereby grants to the Investor a continuing first priority security interest in, lien upon and a right of setoff against, and the Company hereby assigns to the Investor, all of the Company's right, title and interest in and to the Collateral (as defined below), to secure the full and prompt payment, performance and observance of all present and future indebtedness, obligations, liabilities and agreements of any kind of the Company to Investor, now existing or hereafter arising under or in connection with the Note or this agreement (all of the foregoing being herein referred to as the "Obligations").  The Collateral is described on Schedule A annexed hereto as part hereof and on any separate schedule(s) at any time or from time to time furnished by Company to Investor (all of which are hereby deemed part of this agreement) and includes claims of Company against third parties for loss or damage to or destruction of any Collateral.

Upon the occurrence and during the continuance of any Default (as defined in the Note), Investor may, with notice to or demand upon Company, declare any Obligations immediately due and payable. Company, upon receipt of notice of default, shall have 15 days to cure such default, (the “Cure Period”). In the event Company still remains in default subsequent to the Cure Period, Investor shall have the following rights and remedies (to the extent permitted by applicable law) in addition to all rights and remedies of a Investor under the UCC or of Investor under the Obligations, all such rights and remedies being cumulative, not exclusive and enforceable alternatively, successively or concurrently:

 

	
  

	
(a)

	
Investor may, at any time and from time to time, with or without  judicial process or the aid and assistance of others, (i) enter upon any premises in which any Collateral may be located and, without resistance or interference by Company, take possession of the Collateral, (ii) dispose of any part or all of the Collateral on any such premises, (iii) require Company to assemble and make available to Investor at the expense of Company any part or all of the Collateral at any place and time designated by Investor which is reasonably convenient to both parties, (iv) remove any part or all of the Collateral from any such premises for the purpose of effecting sale or other disposition thereof (and if any of the Collateral consists of motor vehicles, Investor may use Company's license plates), and (v) sell, resell, lease, assign and deliver, grant options for or otherwise dispose of any part or all of the Collateral in its then condition or following any commercially reasonable preparation or processing, at public or private sale or proceedings or otherwise, by one or more contracts, in one or more parcels, at the same or different times, with or without having the Collateral at the place of sale or other disposition, for cash and/or credit, and upon any terms, at such place(s) and time(s) and to such person(s) as Investor deems best, all without demand, notice or advertisement whatsoever except that where an applicable statute requires reasonable notice of sale or other disposition Company hereby agrees that the sending of ten days' notice by ordinary mail, postage prepaid, to any address of Company set forth in this Security Agreement shall be deemed reasonable notice thereof.  If any Collateral is sold by Investor upon credit or for future delivery, Investor shall not be liable for the failure of the purchaser to pay for same and in such event Investor may resell or otherwise dispose of such Collateral.  Investor may buy any part or all of the Collateral at any public sale and, if any part or all of the Collateral is of a type customarily sold in a recognized market or is of the type which is the subject of widely distributed standard price quotations, Investor may buy such Collateral at private sale and in each case may make payment therefor by any means, whether by credit against the Obligations or otherwise.  Investor may apply the cash proceeds actually received from any sale or other disposition to the reasonable expenses of retaking, holding, preparing for sale, selling, leasing and the like, to reasonable attorneys' fees and all legal, travel and other expenses which may be incurred by Investor in attempting to collect the Obligations, proceed against the Collateral or enforce this agreement or in the prosecution or defense of any action or proceeding related to the Obligations, the Collateral or this agreement; and then to the Obligations in such order and as to principal or interest as Investor may desire; and Company shall remain liable and will pay Investor on demand any deficiency remaining, together with interest thereon at the highest rate then payable on the Obligations and the balance of any expenses unpaid, with any surplus to be paid to Company, subject to any duty of Investor imposed by law to the holder of any subordinate security interest in the Collateral known to Investor.

 

 

  

1

  

 

 

	
  

	
(b)

	
Investor may, at any time and from time to time, appropriate, set off and apply to the payment of the Obligations, any Collateral in or coming into the possession of Investor or its agents, without notice to Company, and in such manner as Investor may in its discretion determine.

 

To the extent necessary to enforce its rights hereunder, and after the occurrence and during the continuance of a Default, Company hereby designates and appoints Nobis Capital Advisors Inc. (“Nobis”) and each of its designees or agents as attorney-in-fact of Company, irrevocably and with power of substitution, with authority to:  receive, open and dispose of all mail addressed to Company and notify the Post Office authorities to change the address for delivery of mail addressed to Company to such address as Nobis may designate; endorse the name of Company on any notes, acceptances, checks, drafts, money orders, instruments or other evidences of Collateral that may come into Investor's possession; sign the name of Company on any invoices, documents, drafts against and notices to account debtors or obligors of Company, assignments and requests for verification of accounts; execute proofs of claim and loss; execute endorsements, assignments or other instruments of conveyance or transfer; adjust and compromise any claims under insurance policies or otherwise; execute releases; and do all other acts and things necessary or advisable in the sole discretion of Nobis to carry out and enforce this agreement or the Obligations.  All acts done under the foregoing authorization are hereby ratified and approved and neither Nobis nor any designee or agent thereof shall be liable for any acts of commission or omission done in good faith, for any error of judgment or for any mistake of fact or law.  This power of attorney being coupled with an interest is irrevocable while any Obligations shall remain unpaid.

 

With respect to the enforcement of Investor's rights under this agreement, Company hereby releases Investor from any claims, causes of action and demands at any time arising out of or with respect to this agreement, the Obligations, the Collateral and its use, and/or any actions taken or omitted to be taken by Investor in good faith with respect thereto, and Company hereby agrees to hold Investor harmless from and with respect to any and all such claims, causes of action and demands unless any claims, causes of action or demands are the result of  Investor’s  willful misconduct or gross negligence.

 

Investor's prior recourse to any Collateral shall not constitute a condition of any demand, suit or proceeding for payment or collection of the Obligations nor shall any demand, suit or proceeding for payment or collection of the Obligations constitute a condition of any recourse by Investor to the Collateral.  Any suit or proceeding by Investor to recover any of the Obligations shall not be deemed a waiver of, or bar against, subsequent proceedings by Investor with respect to any other Obligations and/or with respect to the Collateral.  No act, omission or delay by Investor shall constitute a waiver of its rights and remedies hereunder or otherwise.  No single or partial waiver by Investor of any covenant, warranty, representation, Default or right or remedy which he may have shall operate as a waiver of any other covenant, warranty, representation, Default, right or remedy or of the same covenant, warranty, representation, Default, right or remedy on a future occasion.  Company hereby is entitled to  presentment, notice of dishonor and protest of all instruments included in or evidencing any Obligations or Collateral, and all other notices and demands whatsoever (including those  expressly provided herein).

 

Company hereby agrees to pay, on demand, all reasonable out-of-pocket expenses incurred by Investor in connection with the enforcement of the Note, this agreement, and the Obligations and in connection with any amendment, including, without limitation, the fees and disbursements of counsel to Investor.

 

In the event of any litigation with respect to any matter connected with this agreement, the Obligations, the Collateral or the Note, Company hereby waives the right to a trial by jury and all rights of setoff.  Company hereby waives personal service of any process in connection with any such action or proceeding and agrees that the service thereof may be made by certified or registered mail directed to Company at any address of Company set forth in this Security Agreement.  Company so served shall appear or answer to such process within thirty days after the mailing thereof.  Should Company so served fail to appear or answer within said thirty-day period, Company shall be deemed in default and judgment may be entered by Investor against Company for the amount or such other relief as may be demanded in any process so served.  In the alternative, Investor may in its discretion effect service upon Company in any other form or manner permitted by law.

 

 

  

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Company shall deliver to Investor on the date of execution of this agreement duly executed UCC-1 financing statements with respect to the Collateral.

 

All terms herein shall have the meanings as defined in the UCC, unless the context otherwise requires.  No provision hereof shall be modified, altered, waived, released, terminated or limited except by a written instrument expressly referring to this agreement and to such provision, and executed by the party to be charged.  The execution and delivery of this agreement has been authorized by the Board of Directors of Company.  This agreement and all Obligations shall be binding upon the successors and assigns of Company and shall, together with the rights and remedies of Investor hereunder, inure to the benefit of Investor, its executors, administrators, successors, endorsees and assigns.  This agreement and the Obligations shall be governed in all respects by the laws of the State of California applicable to contracts executed and to be performed in such state.  Any controversy, claim or dispute arising out of or relating to this Agreement, shall be settled solely and exclusively by binding arbitration in Los Angeles, California. Such arbitration shall be conducted in accordance with the then prevailing commercial arbitration rules of the American Arbitration Association, with the following exceptions if in conflict: (a) one arbitrator shall be chosen by the parties; (b) each party to the arbitration will pay its pro rata share of the expenses and fees of the arbitrator, together with other expenses of the arbitration incurred or approved by the arbitrator; and (c) arbitration may proceed in the absence of any party if written notice (pursuant to the American Arbitration's rules and regulations) of the proceedings has been given to such party. Each party shall bear its own attorneys fees and expenses. The parties agree to abide by all decisions and awards rendered in such proceedings. Such decisions and awards rendered by the arbitrator shall be final and conclusive. All such controversies, claims or disputes shall be settled in this manner in lieu of any action at law or equity; provided however, that nothing in this subsection shall be construed as precluding the bringing an action for injunctive relief or other equitable relief. The arbitrator shall not have the right to award punitive damages or speculative damages to either party and shall not have the power to amend this agreement. The arbitrator shall be required to follow applicable law. IF FOR ANY REASON THIS ARBITRATION CLAUSE BECOMES NOT APPLICABLE, THEN EACH PARTY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER MATTER INVOLVING THE PARTIES HERETO.  This agreement shall be interpreted under the laws of the State of California. Any litigation under this agreement shall be resolved in the trial courts of Los Angeles County, State of California.  If any term of this agreement shall be held to be invalid, illegal or unenforceable, the validity of all other terms hereof shall in no way be affected thereby.  Investor is authorized to annex hereto any schedules referred to herein.

 

The Notes rank, and will rank, pari passu in right of payment with all other present indebtedness of the Company as set forth on Schedule B.

 

This letter agreement may be executed in one or more counterparts.  We hereby request that you execute this letter agreement below acknowledging and agreeing to the terms set forth herein.

Sincerely,

PIPER ACQUISITION II, INC.

By: ____________________

Name: Tim Betts

Title: Chief Executive Officer

 

 

AGREED AND ACKNOWLEDGED:

 

____________________________

 

 

 

 

  

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SCHEDULE A

 

The property covered by this agreement consists of (in each case, wherever located and whether now owned or hereafter made, developed or acquired by Company):

 

(a) all equipment, computer hardware, machinery, furniture, fixtures, dies, tools, vehicles, trucks, cars, tractors, trailers, fork lifts, cranes, hoists and tangible personal property of Company, and all accessions and attachments to or relating to any of the foregoing;

 

(b) all books, records, computer software and other property relating to or referring to any of the foregoing;

 

(c) all patents, trade names, trade styles, service marks, all rights associated with the foregoing, and goodwill;

 

(d) all present and future accounts, contract rights, general intangibles, chattel paper, documents and instruments, as such terms are defined in the Uniform Commercial Code, including, without limitation, all accounts receivable and other receivables of any kind, and all obligations for the payment of money arising out of the sale of goods, rendition of services or the lease by the Company of its property; (e) all other property of the Company;

 

(f) all guaranties or other agreements securing or relating to any of the items referred to in subparagraphs (a)-(e) above, or acquired for the purpose of securing and enforcing any of such items; and

 

(g) all proceeds of any of the foregoing in whatever form, including, without limitation, any claims against third parties for loss or damage to or destruction of any or all of the foregoing and cash, negotiable instruments and other instruments for the payment of money, chattel paper, security agreements or other documents.

 

 

 

 

  

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SCHEDULE B

10% convertible notes in the principal amount of $565,000 held by various accredited investors

5% convertible notes in the principal amount of $696,850 held by various accredited investors

5% convertible notes in the principal amount of $501,100 held by various accredited investors

 

 

 

 

5ex101.htm

Exhibit 10.1

SHARE EXCHANGE AGREEMENT

THIS AGREEMENT is made as of the 16th day of May, 2011 and shall be effective as of the 31st day of December 2010

AMONG:

PIPER ACQUISITION II, INC., a corporation formed pursuant to the laws of the State of Nevada and having an office for business at 2901 W. Coast Highway, 3rd Floor, Newport Beach, California 92663. (“Piper”)

	
  

	
AND:

HYGEA HEALTH HOLDINGS, INC., a company formed pursuant to the laws of the State of Florida and having an office for business located at 9100 South Dadeland Blvd, Suite 1500, Miami, Florida 33156 ("Hygea")

AND:

The shareholders of Hygea, each of whom is set forth on the signature page of this Agreement (the “Hygea Shareholders”)

AND:

MANUEL R. AND OLGA IGLESIAS FAMILY TRUST AND GEHARA FAMILY TRUST (collectively, the “Majority Hygea Shareholders”)

	
  

	
WHEREAS:

A.              The Hygea Shareholders own 63,042,777 shares of common stock, $0.001 par value, being 100% of the presently issued and outstanding Hygea Shares;

B.              Piper is a company whose sole purpose has been to raise capital to be used in connection with an acquisition; and

C.           The respective Boards of Directors of Piper and Hygea deem it advisable and in the best interests of Piper and Hygea that Hygea become a wholly-owned subsidiary of Piper (the “Acquisition”) pursuant to this Agreement.

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the premises and the mutual covenants, agreements, representations and warranties contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

 

 

  

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ARTICLE 1

DEFINITIONS AND INTERPRETATION

Definitions

1.1 In this Agreement the following terms will have the following meanings:

	
(a)  

	
“Acquisition” means the Acquisition, at the Closing, of Hygea by Piper pursuant to this Agreement;

 

 

	
(b)  

	
“Acquisition Shares” means the 135,788,575 Piper Common Shares to be issued to the Hygea Shareholders at Closing pursuant to the terms of the Acquisition;

	
(c)  

	
“Agreement” means this share purchase agreement among Piper, Hygea, and the Hygea Shareholders;

	
(d)  

	
“Closing” means the completion, on the Closing Date, of the transactions contemplated hereby in accordance with Article 9 hereof;

	
(e)  

	
“Closing Date” means the day on which all conditions precedent to the completion of the transaction as contemplated hereby have been satisfied or waived, but in any event no later than May 16, 2011;

	
(f)  

	
“Hygea Accounts Payable and Liabilities” means all accounts payable and liabilities of Hygea, due and owing or otherwise constituting a binding obligation of Hygea as of December 31, 2010;

	
(g)  

	
“Hygea Accounts Receivable” means all accounts receivable and other debts owing to Hygea, as of December 31, 2010;

	
(h)  

	
“Hygea Assets“ means the undertaking and all the property and assets of the Hygea Business of every kind and description wheresoever situated including, without limitation, Hygea Equipment, Hygea Inventory, Hygea Material Contracts, Hygea Accounts Receivable, Hygea Cash, Hygea Intangible Assets and Hygea Goodwill, and all credit cards, charge cards and banking cards issued to Hygea;

	
(i)  

	
“Hygea Bank Accounts” means all of the bank accounts, lock boxes and safety deposit boxes of Hygea or relating to the Hygea Business;

	
(j)  

	
“Hygea Business” means all aspects of the business conducted by Hygea;

	
(k)  

	
“Hygea Cash” means all cash on hand or on deposit to the credit of Hygea on the Closing Date;

	
(l)  

	
“Hygea Debt to Related Parties” means the debts owed by Hygea and its subsidiaries to the Hygea Shareholders or to any family member thereof, or to any affiliate, director or officer of Hygea or the Hygea Shareholders;

	
(m)  

	
“Hygea Equipment” means all machinery, equipment, furniture, and furnishings used in the Hygea Business;

	
(n)  

	
“Hygea Goodwill” means the goodwill of the Hygea Business together with the exclusive right of Piper to represent itself as carrying on the Hygea Business in succession of Hygea subject to the terms hereof, and the right to use any words indicating that the Hygea Business is so carried on including the right to use the name "Hygea” or any variation thereof as part of the name of or in connection with the Hygea Business or any part thereof carried on or to be carried on by Piper, the right to all corporate, operating and trade names associated with the Hygea Business, or any variations of such names as part of or in connection with the Hygea Business, all telephone listings and telephone advertising contracts, all lists of customers, books and records and other information relating to the Hygea Business, all necessary licenses and authorizations and any other rights used in connection with the Hygea Business;

 

 

 

  

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(o)  

	
“Hygea Insurance Policies” means the public liability insurance and insurance against loss or damage to Hygea Assets and the Hygea Business;

	
(p)  

	
“Hygea Intangible Assets” means all of the intangible assets of Hygea, including, without limitation, Hygea Goodwill, all trademarks, logos, copyrights, designs, and other intellectual and industrial property of Hygea and its subsidiaries;

	
(q)  

	
“Hygea Inventory” means all inventory and supplies of the Hygea Business as of December 31, 2010;

	
(r)  

	
“Hygea Material Contracts” means the burden and benefit of and the right, title and interest of Hygea in, to and under all trade and non-trade contracts, engagements or commitments, whether written or oral, to which Hygea is entitled in connection with the Hygea Business whereunder Hygea is obligated to pay or entitled to receive the sum of $10,000 or more including, without limitation, any pension plans, profit sharing plans, bonus plans, loan agreements, security agreements, indemnities and guarantees, any agreements with employees, lessees, licensees, managers, accountants, suppliers, agents, distributors, officers, directors, attorneys or others which cannot be terminated without liability on not more than one month's notice;

	
(s)  

	
“Hygea Related Party Debts” means the debts owed by the Hygea Shareholders or by any family member thereof, or by any affiliate, director or officer of Hygea or the Hygea Shareholders, to Hygea;

	
(t)  

	
“Hygea Shares” means all of the issued and outstanding shares of Hygea equity stock;

	
(u)  

	
“Piper Accounts Payable and Liabilities” means all accounts payable and liabilities of Piper, on a consolidated basis, due and owing or otherwise constituting a binding obligation of Piper and its subsidiaries as of December 31, 2010;

	
(v)  

	
“Piper Accounts Receivable” means all accounts receivable and other debts owing to Piper, on a consolidated basis, as of December 31, 2010;

	
(w)  

	
“Piper Assets” means the undertaking and all the property and assets of the Piper Business of every kind and description wheresoever situated including, without limitation, Piper Equipment, Piper Inventory, Piper Material Contracts, Piper Accounts Receivable, Piper Cash, Piper Intangible Assets and Piper Goodwill, and all credit cards, charge cards and banking cards issued to Piper;

	
(x)  

	
“Piper Bank Accounts” means all of the bank accounts, lock boxes and safety deposit boxes of Piper and its subsidiaries or relating to the Piper Business;

	
(y)  

	
“Piper Business” means all aspects of any business conducted by Piper and its subsidiaries;

	
(z)  

	
“Piper Cash” means all cash on hand or on deposit to the credit of Piper and its subsidiaries on the Closing Date;

	
(aa)  

	
“Piper Common Shares” means the shares of common stock of Piper;

	
(bb)  

	
“Piper Debt to Related Parties” means the debts owed by Piper to any affiliate, director or officer of Piper;

	
(cc)  

	
“Piper Equipment” means all machinery, equipment, furniture, and furnishings used in the Piper Business;

	
(dd)  

	
“Piper Financial Statements” means, collectively, the audited financial statements of Piper for the fiscal year ended December 31, 2010;

	
(ee)  

	
“Piper Goodwill” means the goodwill of the Piper Business including the right to all corporate, operating and trade names associated with the Piper Business, or any variations of such names as part of or in connection with the Piper Business, all books and records and other information relating to the Piper Business, all necessary licenses and authorizations and any other rights used in connection with the Piper Business;

	
(ff)  

	
“Piper Intangible Assets" means all of the intangible assets of Piper and its subsidiaries, including, without limitation, Piper Goodwill, all trademarks, logos, copyrights, designs, and other intellectual and industrial property of Piper and its subsidiaries;

 

 

 

  

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(gg)  

	
“Piper Material Contracts” means the burden and benefit of and the right, title and interest of Piper and its subsidiaries in, to and under all trade and non-trade contracts, engagements or commitments, whether written or oral, to which Piper or its subsidiaries are entitled whereunder Piper or its subsidiaries are obligated to pay or entitled to receive the sum of $10,000 or more including, without limitation, any pension plans, profit sharing plans, bonus plans, loan agreements, security agreements, indemnities and guarantees, any agreements with employees, lessees, licensees, managers, accountants, suppliers, agents, distributors, officers, directors, attorneys or others which cannot be terminated without liability on not more than one month's notice.

	
(hh)  

	
“Place of Closing” means the offices of Fleming PLLC, 49 Front Street, Suite 206, Rockville Centre, New York 11570 or such other place as Piper and Hygea may mutually agree upon;

Any other terms defined within the text of this Agreement will have the meanings so ascribed to them.

Captions and Section Numbers

1.2           The headings and section references in this Agreement are for convenience of reference only and do not form a part of this Agreement and are not intended to interpret, define or limit the scope, extent or intent of this Agreement or any provision thereof.

Section References

1.3           Any reference to a particular “Article”, “section”, “paragraph”, “clause” or other subdivision is to the particular Article, section, clause or other subdivision of this Agreement and any reference to a Schedule by letter will mean the appropriate Schedule attached to this Agreement and by such reference the appropriate Schedule is incorporated into and made part of this Agreement.

Severability of Clauses

1.4              If any part of this Agreement is declared or held to be invalid for any reason, such invalidity will not affect the validity of the remainder which will continue in full force and effect and be construed as if this Agreement had been executed without the invalid portion, and it is hereby declared the intention of the parties that this Agreement would have been executed without reference to any portion which may, for any reason, be hereafter declared or held to be invalid.

ARTICLE 2

THE ACQUISITION

Sale of Shares

2.1           The Hygea Shareholders hereby agree to sell to Piper the Hygea Shares in exchange for the Acquisition Shares on the Closing Date and to transfer to Piper on the Closing Date a 100% undivided interest in and to the Hygea Shares free from all liens, mortgages, charges, pledges, encumbrances or other burdens with all rights now or thereafter attached thereto.

Allocation of Consideration

2.2              The Acquisition Shares shall be allocated to the Hygea Shareholders on the basis of 2.153911809 Acquisition Shares for each one Hygea Share held by a Hygea Shareholder as set forth in Schedule 2.2 attached hereto.

Adherence with Applicable Securities Laws

2.3           The Hygea Shareholders agree that they are acquiring the Acquisition Shares for investment purposes and will not offer, sell or otherwise transfer, pledge or hypothecate any of the Acquisition Shares issued to them (other than pursuant to an effective Registration Statement under the Securities Act of 1933, as amended) directly or indirectly unless:

 

 

 

  

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(a)  

	
the sale is to Piper;

	
(b)  

	
the sale is made pursuant to the exemption from registration under the Securities Act of 1933, as amended, provided by Rule 144 thereunder; or

	
(c)  

	
the Acquisition Shares are sold in a transaction that does not require registration under the Securities Act of 1933, as amended, or any applicable United States state laws and regulations governing the offer and sale of securities, and the vendor has furnished to Piper an opinion of counsel to that effect or such other written opinion as may be reasonably required by Piper.

The Hygea Shareholders acknowledge that the certificates representing the Acquisition Shares shall bear the following legend:

NO SALE, OFFER TO SELL, OR TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL BE MADE UNLESS A REGISTRATION STATEMENT UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED, IN RESPECT OF SUCH SHARES IS THEN IN EFFECT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SAID ACT IS THEN IN FACT APPLICABLE TO SAID SHARES.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES

OF PIPER

Representations and Warranties

3.1              Piper hereby represents and warrants in all material respects to Hygea and the Hygea Shareholders, with the intent that Hygea and the Hygea Shareholders will rely thereon in entering into this Agreement and in approving and completing the transactions contemplated hereby, that:

Piper- Corporate Status and Capacity

	
(a)  

	
Incorporation. Piper is a corporation duly incorporated and validly subsisting under the laws of the State of Nevada and in good standing with the office of the Secretary of State for the State of Nevada;

	
(b)  

	
Carrying on Business. Piper conducts the business described and does not conduct any other business. Piper is duly authorized to carry on such business in the State of Nevada.  The nature of the Piper Business does not require Piper to register or otherwise be qualified to carry on business in any other jurisdictions;

	
(c)  

	
Corporate Capacity. Piper has the corporate power, capacity and authority to own the Piper Assets and to enter into and complete this Agreement;

	
  

	
Piper- Capitalization

	
(d)  

	
Authorized Capital. The authorized capital of Piper consists of 250,000,000 Piper Common Shares, $0.0001 par value and 10,000,000 shares of preferred stock, $0.0001 par value, of which 12,775,904 Piper Common Shares, and no shares of Piper Preferred Shares are presently issued and outstanding;

	
(e)  

	
No Option, Warrant or Other Right. No person, firm or corporation has any agreement, option, warrant, preemptive right or any other right capable of becoming an agreement, option, warrant or right for the acquisition of Piper Common Shares or for the purchase, subscription or issuance of any of the unissued shares in the capital of Piper except that 16,027,733 shares of common stock of Piper ware issuable upon conversion of Secured Convertible Promissory Notes (the “Notes”);

	
  

	
Piper- Records and Financial Statements

	
(f)  

	
Charter Documents. The charter documents of Piper and its subsidiaries have not been altered since the incorporation of each, respectively, except as filed in the record books of Piper or its subsidiaries, as the case may be;

	
(g)  

	
Corporate Minute Books. The corporate minute books of Piper and its subsidiaries are complete and each of the minutes contained therein accurately reflect the actions that were taken at a duly called and held meeting or by consent without a meeting. All actions by Piper and its subsidiaries which required director or shareholder approval are reflected on the corporate minute books of Piper and its subsidiaries. Piper and its subsidiaries are not in violation or breach of, or in default with respect to, any term of their respective Certificates of Incorporation (or other charter documents) or by-laws.

	
(h)  

	
Piper Financial Statements. The Piper Financial Statements present fairly, in all material respects, the assets and liabilities (whether accrued, absolute, contingent or otherwise) of Piper, on a consolidated basis, as of the respective dates thereof, and the sales and earnings of the Piper Business during the periods covered thereby, in all material respects and have been prepared in substantial accordance with generally accepted accounting principles consistently applied;

	
(i)  

	
Piper Accounts Payable and Liabilities. There are no material liabilities, contingent or otherwise, of Piper or its subsidiaries which are not disclosed in the Piper Financial Statements except those incurred in the ordinary course of business since the date of the Piper Financial Statements, and neither Piper nor its subsidiaries have guaranteed or agreed to guarantee any debt, liability or other obligation of any person, firm or corporation. Without limiting the generality of the foregoing, all accounts payable and liabilities of Piper as of December 31, 2010;

 

 

 

  

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(j)  

	
Piper Accounts Receivable. All the Piper Accounts Receivable result from bona fide business transactions and services actually rendered without, to the knowledge and belief of Piper, any claim by the obligor for set-off or counterclaim. Without limiting the generality of the foregoing, all accounts receivable of Piper as of December 31, 2010 as described in the Piper Financial Statements;

	
(k)  

	
Piper Bank Accounts. All of the Piper Bank Accounts, their location, numbers and the authorized signatories thereto will be provided to Hygea following the Closing;

	
(l)  

	
No Debt to Related Parties. Neither Piper nor any of its subsidiaries is, and on Closing will not be, indebted to any affiliate, director or officer of Piper except accounts payable on account of bona fide business transactions of Piper incurred in normal course of the Piper Business, including employment agreements, none of which are more than 30 days in arrears;

	
(m)  

	
No Related Party Debt to Piper. No director or officer or affiliate of Piper is now indebted to or under any financial obligation to Piper or any subsidiary on any account whatsoever, except for advances on account of travel and other expenses not exceeding $1,000 in total;

	
(n)  

	
No Dividends. No dividends or other distributions on any shares in the capital of Piper have been made, declared or authorized since the date of Piper Financial Statements;

	
(o)  

	
No Payments. No payments of any kind have been made or authorized since the date of the Piper Financial Statements to or on behalf of officers, directors, shareholders or employees of Piper or its subsidiaries or under any management agreements with Piper or its subsidiaries, except payments made in the ordinary course of business and at the regular rates of salary or other remuneration payable to them;

	
(p)  

	
No Pension Plans. There are no pension, profit sharing, group insurance or similar plans or other deferred compensation plans affecting Piper;

	
(q)  

	
No Adverse Events. Since the date of the Piper Financial Statements

	
(i)  

	
there has not been any material adverse change in the consolidated financial position or condition of Piper, its subsidiaries, its liabilities or the Piper Assets or any damage, loss or other change in circumstances materially affecting Piper, the Piper Business or the Piper Assets or Piper’ right to carry on the Piper Business, other than changes in the ordinary course of business,

	
(ii)  

	
there has not been any damage, destruction, loss or other event (whether or not covered by insurance) materially and adversely affecting Piper, its subsidiaries, the Piper Business or the Piper Assets,

	
(iii)  

	
there has not been any material increase in the compensation payable or to become payable by Piper to any of Piper’ officers, employees or agents or any bonus, payment or arrangement made to or with any of them,

	
(iv)  

	
the Piper Business has been and continues to be carried on in the ordinary course,

	
(v)  

	
Piper has not waived or surrendered any right of material value,

	
(vi)  

	
neither Piper nor its subsidiaries have discharged or satisfied or paid any lien or encumbrance or obligation or liability other than current liabilities in the ordinary course of business, and

	
(vii)  

	
no capital expenditures in excess of $10,000 individually or $30,000 in total have been authorized or made.

Piper- Income Tax Matters

	
(r)  

	
Tax Returns. All tax returns and reports of Piper and its subsidiaries required by law to be filed have been filed and are true, complete and correct, and any taxes payable in accordance with any return filed by Piper and its subsidiaries or in accordance with any notice of assessment or reassessment issued by any taxing authority have been so paid;

	
(s)  

	
Current Taxes. Adequate provisions have been made for taxes payable for the current period for which tax returns are not yet required to be filed and there are no agreements, waivers, or other arrangements providing for an extension of time with respect to the filing of any tax return by, or payment of, any tax, governmental charge or deficiency by Piper or its subsidiaries.  Piper is not aware of any contingent tax liabilities or any grounds which would prompt a reassessment including aggressive treatment of income and expenses in filing earlier tax returns;

 

 

 

  

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Piper- Applicable Laws and Legal Matters

	
(t)  

	
Licenses. Piper and its subsidiaries hold all licenses and permits as may be requisite for carrying on the Piper Business in the manner in which it has heretofore been carried on, which licenses and permits have been maintained and continue to be in good standing except where the failure to obtain or maintain such licenses or permits would not have a material adverse effect on the Piper Business;

	
(u)  

	
Applicable Laws. Neither Piper nor its subsidiaries have been charged with or received notice of breach of any laws, ordinances, statutes, regulations, by-laws, orders or decrees to which they are subject or which apply to them the violation of which would have a material adverse effect on the Piper Business, and neither Piper nor its subsidiaries are in breach of any laws, ordinances, statutes, regulations, bylaws, orders or decrees the contravention of which would result in a material adverse impact on the Piper Business;

	
(v)  

	
Pending or Threatened Litigation. There is no material litigation or administrative or governmental proceeding pending or threatened against or relating to Piper, its subsidiaries, the Piper Business, or any of the Piper Assets nor does Piper have any knowledge of any deliberate act or omission of Piper or its subsidiaries that would form any material basis for any such action or proceeding;

	
(w)  

	
No Bankruptcy. Neither Piper nor its subsidiaries have made any voluntary assignment or proposal under applicable laws relating to insolvency and bankruptcy and no bankruptcy petition has been filed or presented against Piper or its subsidiaries and no order has been made or a resolution passed for the winding-up, dissolution or liquidation of Piper or its subsidiaries;

	
(x)  

	
Labor Matters. Neither Piper nor its subsidiaries are party to any collective agreement relating to the Piper Business with any labor union or other association of employees and no part of the Piper Business has been certified as a unit appropriate for collective bargaining or, to the knowledge of Piper, has made any attempt in that regard;

	
(y)  

	
Finder's Fees. Neither Piper nor its subsidiaries are party to any agreement which provides for the payment of finder's fees, brokerage fees, commissions or other fees or amounts which are or may become payable to any third party in connection with the execution and delivery of this Agreement and the transactions contemplated herein;

Execution and Performance of Agreement

	
(z)  

	
Authorization and Enforceability. The execution and delivery of this Agreement, and the completion of the transactions contemplated hereby, have been duly and validly authorized by all necessary corporate action on the part of Piper;

	
(aa)  

	
No Violation or Breach. The execution and performance of this Agreement will not:

	
(i)  

	
violate the charter documents of Piper or result in any breach of, or default under, any loan agreement, mortgage, deed of trust, or any other agreement to which Piper or its subsidiaries are party,

	
(ii)  

	
give any person any right to terminate or cancel any agreement including, without limitation, the Piper Material Contracts, or any right or rights enjoyed by Piper or its subsidiaries,

	
(iii)  

	
result in any alteration of Piper’ or its subsidiaries’ obligations under any agreement to which Piper or its subsidiaries are party including, without limitation, the Piper Material Contracts,

	
(iv)  

	
result in the creation or imposition of any lien, encumbrance or restriction of any nature whatsoever in favor of a third party upon or against the Piper Assets,

	
(v)  

	
result in the imposition of any tax liability to Piper or its subsidiaries relating to the Piper Assets, or

	
(vi)  

	
violate any court order or decree to which either Piper or its subsidiaries are subject;

 

 

 

  

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The Piper Assets - Ownership and Condition

	
(bb)  

	
Business Assets. The Piper Assets comprise all of the property and assets of the Piper Business, and no other person, firm or corporation owns any assets used by Piper or its subsidiaries in operating the Piper Business, whether under a lease, rental agreement or other arrangement;

	
(cc)  

	
Title. Piper or its subsidiaries are the legal and beneficial owner of the Piper Assets, free and clear of all mortgages, liens, charges, pledges, security interests, encumbrances or other claims whatsoever;

	
(dd)  

	
No Option. Except for the security interest granted to the holders of the Notes, no person, firm or corporation has any agreement or option or a right capable of becoming an agreement for the purchase of any of the Piper Assets;

	
(ee)  

	
No Default. There has not been any default in any material obligation of Piper or any other party to be performed under any of the Piper Material Contracts, each of which is in good standing and in full force and effect and unamended, and Piper is not aware of any default in the obligations of any other party to any of the Piper Material Contracts;

	
(ff)  

	
No Compensation on Termination. There are no agreements, commitments or understandings relating to severance pay or separation allowances on termination of employment of any employee of Piper or its subsidiaries. Neither Piper nor its subsidiaries are obliged to pay benefits or share profits with any employee after termination of employment except as required by law;

Piper Assets - Piper Equipment

	
(gg)  

	
Piper Equipment. The Piper Equipment has been maintained in a manner consistent with that of a reasonably prudent owner and such equipment is in good working condition;

Piper Assets - Piper Goodwill and Other Assets

	
(hh)  

	
Piper Goodwill. Piper and its subsidiaries do not carry on the Piper Business under any other business or trade names. Piper does not have any knowledge of any infringement by Piper or its subsidiaries of any patent, trademarks, copyright or trade secret;

The Piper Business

	
(ii)  

	
Maintenance of Business. Since the date of the Piper Financial Statements, Piper and its subsidiaries have not entered into any material agreement or commitment except in the ordinary course and except as disclosed herein;

	
(jj)  

	
Subsidiaries. Piper does not own any subsidiaries and does not otherwise own, directly or indirectly, any shares or interest in any other corporation, partnership, joint venture or firm;

Piper- Acquisition Shares

	
(kk)  

	
Acquisition Shares. The Acquisition Shares when delivered to the Hygea Shareholders pursuant to the Acquisition shall be validly issued and outstanding as fully paid and non-assessable shares and the Acquisition Shares shall be transferable upon the books of Piper, in all cases subject to the provisions and restrictions of all applicable securities laws; and

Piper – Registration Rights

	
(ll)  

	
Registration Rights.  Piper has agreed to register the shares of common stock and the shares of common stock issuable upon conversion of the Notes as set forth on Schedule 3.1(ll) (the “Registrable Securities”).

Non-Merger and Survival

3.2           The representations and warranties of Piper contained herein will be true at and as of Closing in all material respects as though such representations and warranties were made as of such time.  Notwithstanding the completion of the transactions contemplated hereby, the waiver of any condition contained herein (unless such waiver expressly releases a party from any such representation or warranty) or any investigation made by Hygea or the Hygea Shareholders, the representations and warranties of Piper shall survive the Closing.

 

 

 

  

8

  

 

Indemnity

3.3           Piper agrees to indemnify and save harmless Hygea and the Hygea Shareholders from and against any and all claims, demands, actions, suits, proceedings, assessments, judgments, damages, costs, losses and expenses, including any payment made in good faith in settlement of any claim (subject to the right of Piper to defend any such claim), resulting from the breach by it of any representation or warranty made under this Agreement or from any misrepresentation in or omission from any certificate or other instrument furnished or to be furnished by Piper to Hygea or the Hygea Shareholders hereunder.

ARTICLE 4

COVENANTS OF PIPER

Covenants

4.1              Piper covenants and agrees with Hygea and the Hygea Shareholders that it will:

	
(a)  

	
Conduct of Business. Until the Closing, conduct the Piper Business diligently and in the ordinary course consistent with the manner in which the Piper Business generally has been operated up to the date of execution of this Agreement;

	
(b)  

	
Preservation of Business.  Until the Closing, use its best efforts to preserve the Piper Business and the Piper Assets and, without limitation, preserve for Hygea, Piper and its subsidiaries’ relationships with any third party having business relations with them;

	
(c)  

	
Access. Until the Closing, give Hygea, the Hygea Shareholders, and their representatives full access to all of the properties, books, contracts, commitments and records of Piper, and furnish to Hygea, the Hygea Shareholders and their representatives all such information as they may reasonably request; and

	
(d)  

	
Procure Consents. Until the Closing, take all reasonable steps required to obtain, prior to Closing, any and all third party consents required to permit the Acquisition and to preserve and maintain the Piper Assets notwithstanding the change in control of Hygea arising from the Acquisition.

Authorization

4.2              Piper hereby agrees to authorize and direct any and all federal, state, municipal, foreign and international governments and regulatory authorities having jurisdiction respecting Piper and its subsidiaries to release any and all information in their possession respecting Piper and its subsidiaries to the Hygea Shareholders. Piper shall promptly execute and deliver to the Hygea Shareholders any and all consents to the release of information and specific authorizations which the Hygea Shareholders reasonably requires to gain access to any and all such information.

Survival

4.3              The covenants set forth in this Article shall survive the Closing for the benefit of Hygea and the Hygea Shareholders.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF

THE MAJORITY HYGEA SHAREHOLDERS AND THE HYGEA SHAREHOLDERS

Representations and Warranties

5.1              The Majority Hygea Shareholders and the Hygea Shareholders (with respect to sections 5.1 (e) and (g)) hereby jointly and severally represent and warrant in all material respects to Piper, with the intent that it will rely thereon in entering into this Agreement and in approving and completing the transactions contemplated hereby, that:

Hygea- Company Status and Capacity

	
(a)  

	
Formation. Hygea is a corporation duly incorporated and validly subsisting under the laws of the State of Florida and in good standing with the office of the Secretary of State for the State of Florida;

	
(b)  

	
Carrying on Business. Hygea carries on the Hygea Business primarily in the State of California and carries on material business activity in other jurisdiction. The nature of the Hygea Business does not require Hygea to register or otherwise be qualified to carry on business in any jurisdiction;

	
(c)  

	
Legal Capacity. Hygea has the legal power, capacity and authority to own Hygea Assets, to carry on the Business of Hygea and to enter into and complete this Agreement;

Hygea- Capitalization

	
(d)  

	
Authorized Capital. The authorized capital of Hygea consists of 100,000,000 shares of common stock, $0.001 par value of which 63,042,777 are issued and outstanding and 5,000,000 shares of preferred stock, $0.001 par value of which none are issued and outstanding;

	
(e)  

	
Ownership of Hygea Shares. The issued and outstanding shares of Hygea common stock will on Closing consist of 63,042,777 of common stock, $0.001 par value, (being the Hygea Shares), which shares on Closing shall be validly issued and outstanding as fully paid and non-assessable shares. The Hygea Shareholders will be at Closing the registered and beneficial owners of the 63,042,777 Hygea Shares. The Hygea Shares owned by the Hygea Shareholders will on Closing be free and clear of any and all liens, charges, pledges, encumbrances, restrictions on transfer and adverse claims whatsoever;

 

 

  

9

  

 

	
(f)  

	
Options, Warrants or Other Rights. No person, firm or corporation has any agreement, option, warrant, preemptive right or any other right capable of becoming an agreement, option, warrant or right for the acquisition of Hygea Shares held by the Hygea Shareholders or for the purchase, subscription or issuance of any of the unissued shares in the capital of Hygea;

	
(g)  

	
No Restrictions. There are no restrictions on the transfer, sale or other disposition of Hygea Shares contained in the charter documents of Hygea or under any agreement;

Hygea- Records and Financial Statements

	
(h)  

	
Charter Documents. The charter documents of Hygea have not been altered since its formation date, except as filed in the record books of Hygea;

	
(i)  

	
Minute Books. The minute books of Hygea are complete and each of the minutes contained therein accurately reflect the actions that were taken at a duly called and held meeting or by consent without a meeting. All actions by Hygea which required director or shareholder approval are reflected on the corporate minute books of Hygea. Hygea is not in violation or breach of, or in default with respect to, any term of its Certificate of Incorporation (or other charter documents) or by-laws.

	
(j)  

	
Hygea Financial Statements. The financial statements of Hygea present fairly, in all material respects, the assets and liabilities (whether accrued, absolute, contingent or otherwise) of Hygea as of the date thereof, and the sales and earnings of the Hygea Business during the periods covered thereby, in all material respects, and have been prepared in substantial accordance with generally accepted accounting principles consistently applied;

	
(k)  

	
Hygea Accounts Payable and Liabilities. There are no material liabilities, contingent or otherwise, of Hygea reflected in the Hygea Financial Statements except those incurred in the ordinary course of business since the date of the Hygea Financial Statements, and Hygea has not guaranteed or agreed to guarantee any debt, liability or other obligation of any person, firm or corporation;

	
(l)  

	
Hygea Accounts Receivable. All the Hygea Accounts Receivable result from bona fide business transactions and services actually rendered without, to the knowledge and belief of the Hygea Shareholders, any claim by the obligor for set-off or counterclaim;

	
(m)  

	
No Debt to Related Parties. Hygea is not and on Closing will not be, indebted to the Hygea Shareholders nor to any family member thereof, nor to any affiliate, director or officer of Hygea or the Hygea Shareholders except accounts payable on account of bona fide business transactions of Hygea incurred in normal course of Hygea Business, including employment agreements with the Hygea Shareholders, none of which are more than 30 days in arrears;

	
(n)  

	
No Related Party Debt to Hygea. No Hygea Shareholder nor any director, officer or affiliate of Hygea is now indebted to or under any financial obligation to Hygea on any account whatsoever, except for advances on account of travel and other expenses not exceeding $5,000 in total;

	
(o)  

	
No Dividends. No dividends or other distributions on any shares in the capital of Hygea have been made, declared or authorized since the date of the Hygea Financial Statements;

	
(p)  

	
No Payments. No payments of any kind have been made or authorized since the date of the Hygea Financial Statements to or on behalf of the Hygea Shareholders or to or on behalf of officers, directors, shareholders or employees of Hygea or under any management agreements with Hygea, except payments made in the ordinary course of business and at the regular rates of salary or other remuneration payable to them;

	
(q)  

	
No Pension Plans. There are no pension, profit sharing, group insurance or similar plans or other deferred compensation plans affecting Hygea, except as set forth in the Hygea Financial Statements;

	
(r)  

	
No Adverse Events. Since the date of the Hygea Financial Statements:

	
(i)  

	
there has not been any material adverse change in the consolidated financial position or condition of Hygea, its liabilities or the Hygea Assets or any damage, loss or other change in circumstances materially affecting Hygea, the Hygea Business or the Hygea Assets or Hygea right to carry on the Hygea Business, other than changes in the ordinary course of business,

	
(ii)  

	
there has not been any damage, destruction, loss or other event (whether or not covered by insurance) materially and adversely affecting Hygea, the Hygea Business or the Hygea Assets,

	
(iii)  

	
there has not been any material increase in the compensation payable or to become payable by Hygea to the Hygea Shareholders or to any of Hygea officers, employees or agents or any bonus, payment or arrangement made to or with any of them,

	
(iv)  

	
the Hygea Business has been and continues to be carried on in the ordinary course,

	
(v)  

	
Hygea has not waived or surrendered any right of material value,

	
(vi)  

	
Hygea has not discharged or satisfied or paid any lien or encumbrance or obligation or liability other than current liabilities in the ordinary course of business, and

 

 

  

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(vii)  

	
no capital expenditures in excess of $10,000 individually or $30,000 in total have been authorized or made;

Hygea- Income Tax Matters

	
(s)  

	
Tax Returns. All tax returns and reports of Hygea required by law to be filed have been filed and are true, complete and correct, and any taxes payable in accordance with any return filed by Hygea or in accordance with any notice of assessment or reassessment issued by any taxing authority have been so paid;

	
(t)  

	
Current Taxes. Adequate provisions have been made for taxes payable for the current period for which tax returns are not yet required to be filed and there are no agreements, waivers, or other arrangements providing for an extension of time with respect to the filing of any tax return by, or payment of, any tax, governmental charge or deficiency by Hygea. Hygea is not aware of any contingent tax liabilities or any grounds which would prompt a reassessment including aggressive treatment of income and expenses in filing earlier tax returns;

	
  

	
Hygea- Applicable Laws and Legal Matters

	
(u)  

	
Licenses. Hygea holds all licenses and permits as may be requisite for carrying on the Hygea Business in the manner in which it has heretofore been carried on, which licenses and permits have been maintained and continue to be in good standing except where the failure to obtain or maintain such licenses or permits would not have a material adverse effect on the Hygea Business;

	
(v)  

	
Applicable Laws. Hygea has not been charged with or received notice of breach of any laws, ordinances, statutes, regulations, by-laws, orders or decrees to which they are subject or which applies to them the violation of which would have a material adverse effect on the Hygea Business, and, to the knowledge of the Hygea Shareholders, Hygea is not in breach of any laws, ordinances, statutes, regulations, by-laws, orders or decrees the contravention of which would result in a material adverse impact on the Hygea Business;

	
(w)  

	
Pending or Threatened Litigation. There is no material litigation or administrative or governmental proceeding pending or threatened against or relating to Hygea, the Hygea Business, or any of the Hygea Assets, nor do the Hygea Shareholders have any knowledge of any deliberate act or omission of Hygea that would form any material basis for any such action or proceeding;

	
(x)  

	
No Bankruptcy. Hygea has not made any voluntary assignment or proposal under applicable laws relating to insolvency and bankruptcy and no bankruptcy petition has been filed or presented against Hygea and no order has been made or a resolution passed for the winding-up, dissolution or liquidation of Hygea;

	
(y)  

	
Labor Matters. Hygea is not party to any collective agreement relating to the Hygea Business with any labor union or other association of employees and no part of the Hygea Business has been certified as a unit appropriate for collective bargaining or, to the knowledge of the Hygea Shareholders, has made any attempt in that regard;

	
(z)  

	
Finder's Fees. Hygea is not a party to any agreement which provides for the payment of finder's fees, brokerage fees, commissions or other fees or amounts which are or may become payable to any third party in connection with the execution and delivery of this Agreement and the transactions contemplated herein;

Execution and Performance of Agreement

	
(aa)  

	
Authorization and Enforceability. The execution and delivery of this Agreement, and the completion of the transactions contemplated hereby, have been duly and validly authorized by all necessary corporate action on the part of Hygea;

	
(bb)  

	
No Violation or Breach. The execution and performance of this Agreement will not

	
(i)  

	
violate the charter documents of Hygea or result in any breach of, or default under, any loan agreement, mortgage, deed of trust, or any other agreement to which Hygea is a party,

	
(ii)  

	
give any person any right to terminate or cancel any agreement including, without limitation, Hygea Material Contracts, or any right or rights enjoyed by Hygea,

	
(iii)  

	
result in any alteration of Hygea  obligations under any agreement to which Hygea is a party including, without limitation, the Hygea Material Contracts,

	
(iv)  

	
result in the creation or imposition of any lien, encumbrance or restriction of any nature whatsoever in favor of a third party upon or against the Hygea Assets,

	
(v)  

	
result in the imposition of any tax liability to Hygea relating to Hygea Assets or the Hygea Shares, or

 

 

  

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(vi)  

	
violate any court order or decree to which either Hygea is subject;

Hygea Assets - Ownership and Condition

	
(cc)  

	
Business Assets. The Hygea Assets, comprise all of the property and assets of the Hygea Business, and neither the Hygea Shareholders nor any other person, firm or corporation owns any assets used by Hygea in operating the Hygea Business, whether under a lease, rental agreement or other arrangement;

	
(dd)  

	
Title. Hygea is the legal and beneficial owner of the Hygea Assets, free and clear of all mortgages, liens, charges, pledges, security interests, encumbrances or other claims whatsoever;

	
(ee)  

	
No Option. No person, firm or corporation has any agreement or option or a right capable of becoming an agreement for the purchase of any of the Hygea assets;

	
(ff)  

	
Hygea Insurance Policies. Hygea maintains the public liability insurance and insurance against loss or damage to the Hygea Assets and the Hygea Business;

	
(gg)  

	
Hygea Material Contracts. Hygea has no material contracts;

	
(hh)  

	
No Default. There has not been any default in any material obligation of Hygea or any other party to be performed under any of Hygea Material Contracts, each of which is in good standing and in full force and effect and unamended and Hygea is not aware of any default in the obligations of any other party to any of the Hygea Material Contracts;

	
(ii)  

	
No Compensation on Termination. There are no agreements, commitments or understandings relating to severance pay or separation allowances on termination of employment of any employee of Hygea.  Hygea is not obliged to pay benefits or share profits with any employee after termination of employment except as required by law;

HygeaAssets - HygeaEquipment

	
(jj)  

	
Hygea Equipment. The Hygea Equipment has been maintained in a manner consistent with that of a reasonably prudent owner and such equipment is in good working condition;

Hygea Assets - Hygea Goodwill and Other Assets

	
(kk)  

	
Hygea Goodwill. Hygea carries on the Hygea Business only under the name "Hygea Health Holdings, Inc." and variations thereof and under no other business or trade names. The Hygea Shareholders do not have any knowledge of any infringement by Hygea of any patent, trademark, copyright or trade secret;

	
  

	
The Business of Hygea

	
(ll)  

	
Maintenance of Business. Since the date of the Hygea Financial Statements, the Hygea Business has been carried on in the ordinary course and Hygea has not entered into any material agreement or commitment except in the ordinary course; and

	
(mm)  

	
Subsidiaries. Except as set forth in the Hygea Financial Statements, Hygea does not own any subsidiaries and does not otherwise own, directly or indirectly, any shares or interest in any other corporation, partnership, joint venture or firm and Hygea does not own any subsidiary and does not otherwise own, directly or indirectly, any shares or interest in any other corporation, partnership, joint venture or firm.

	
  

	
Miscellaneous

	
(nn)  

	
Patriot Act.  Hygea has not been designated, and is not owned or controlled, by a “suspected terrorist” as defined in Executive Order 13224.  Hygea hereby acknowledges that Piper seeks to comply with all applicable laws concerning money laundering and related activities.  In furtherance of those efforts, It is represented, warranted and agreed that:  (i) none of the cash or property owned by Hygea has been or shall be derived from, or related to, any activity that is deemed criminal under United States law; and (ii) no contribution or payment by Hygea has, and this Agreement will not, cause Hygea to be in violation of the United States Bank Secrecy Act, the United States International Money Laundering Control Act of 1986 or the United States International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001.

	
(oo)  

	
Compliance with Medicare/Medicaid Programs.  Neither Hygea, nor any of Hygea's Affiliates, if any, have been charged with, convicted of, or pled guilty or nolo contendere to, patient abuse or neglect, or any offense related to a "Federal health care program" as that term is defined in 42 U.S.C. Sect. 1320a-7b(f).   Likewise, neither Hygea, nor any of Hygea's Affiliates, if any, have:  (i) committed any offense which may serve as the basis for suspension or exclusion from a Federal health care program (as defined above), including, but not limited to, defrauding a government program, loss of a license to provide health care services, and failure to provide quality care; or (ii) engaged in any prohibited reassignment of Federal health care program (as defined above) accounts receivable.

	
(pp)  

	
Environmental Matters.  Hygea is and has been at all times in compliance in all material respects with all applicable laws, regulations, common law and other requirements of governmental entities relating to pollution, to the protection of the environment or to natural resources (“Environmental Laws”). Hygea has in effect all material licenses, permits and other authorizations required under all Environmental Laws in connection with the conduct of its business and is in compliance in all material respects with all such licenses, permits and authorizations. Hygea has not received any notice of violation or potential liability under any Environmental Laws from any Person or any governmental entity or any inquiry, request for information, or demand letter under any Environmental Law relating to operations or properties of Hygea which could reasonably be expected to result in Hygea incurring material liability under Environmental Laws. Hygea is not subject to any orders arising under Environmental Laws nor are there any administrative, civil or criminal actions, suits, proceedings or investigations pending or, to the Knowledge of Hygea, threatened, against Hygea under any Environmental Law which could reasonably be expected to result in Hygea incurring material liability under Environmental Laws. Hygea has not entered into any agreement pursuant to which Hygea has assumed or will assume any liability under Environmental Laws, including, without limitation, any obligation for costs of remediation, of any other Person.  To the Knowledge of Hygea, there has been no release or threatened release of a hazardous substance, hazardous waste, contaminant, pollutant, toxic substance or petroleum and its fractions, the presence of which requires investigation or remediation under any applicable Environmental Law (“Hazardous Material”), on, at or beneath any of Hygea leased real property or other properties currently or previously owned or operated by Hygea or any surface waters or groundwaters thereon or thereunder which requires any material disclosure, investigation, cleanup, remediation, monitoring, abatement, deed or use restriction by Hygea, or which would be expected to give rise to any other material liability or damages to Hygea under any Environmental Laws.  Hygea has not arranged for the disposal of any Hazardous Material, or transported any Hazardous Material, in a manner that has given, or could reasonably be expected to give, rise to any material liability for any damages or costs of remediation.

  

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Non-Merger and Survival

5.2           The representations and warranties of Hygea contained herein will be true at and as of Closing in all material respects as though such representations and warranties were made as of such time.  Notwithstanding the completion of the transactions contemplated hereby, the waiver of any condition contained herein (unless such waiver expressly releases a party from any such representation or warranty) or any investigation made by Piper, the representations and warranties of Hygea shall survive the Closing.

Indemnity

5.3           The Majority Hygea Shareholders agree to indemnify and save harmless Piper and each of is shareholders from and against any and all claims, demands, actions, suits, proceedings, assessments, judgments, damages, costs, losses and expenses, including any payment made in good faith in settlement of any claim (collectively, the “Claims”) (subject to the right of the Hygea Shareholders to defend any such claim), resulting from the breach by any of them of any representation or warranty of such party made under this Agreement or from any misrepresentation in or omission from any certificate or other instrument furnished or to be furnished by Hygea or the Hygea Shareholders to Piper hereunder; provided, however, the Hygea Shareholders shall not be required to indemnify Piper for any such Claims in excess of the value of the Hygea Shares.

ARTICLE 6

COVENANTS OF HYGEA THE MAJORITY HYGEA SHAREHOLDERS

Covenants

6.1              Hygea and the Hygea Majority Shareholders covenant and agree with Piper that they will:

	
(a)  

	
Conduct of Business. Until the Closing, conduct the Hygea Business diligently and in the ordinary course consistent with the manner in which the Hygea Business generally has been operated up to the date of execution of this Agreement;

	
(b)  

	
Preservation of Business.  Until the Closing, use their best efforts to preserve the Hygea Business and the Hygea Assets and, without limitation, preserve for Piper Hygea relationships with their suppliers, customers and others having business relations with them;

	
(c)  

	
Access. Until the Closing, give Piper and its representatives full access to all of the properties, books, contracts, commitments and records of Hygea relating to Hygea, the Hygea Business and the Hygea Assets, and furnish to Piper and its representatives all such information as they may reasonably request;

	
(d)  

	
Procure Consents. Until the Closing, take all reasonable steps required to obtain, prior to Closing, any and all third party consents required to permit the Acquisition and to preserve and maintain the Hygea Assets, including the Hygea Material Contracts, notwithstanding the change in control of Hygea arising from the Acquisition;

	
(e)  

	
Prohibitions.  From and for a period of twelve (12) months after the Closing Date, not effect any reverse splits, remove assets from Hygea without valid consideration, register shares pursuant to Form S-8, and will not issue shares for consideration less than a 50% discount to the then current market price of the Piper, which percentage shall be determined at the commencement of any offering to be conducted.

Authorization

6.2              Hygea hereby agrees to authorize and direct any and all federal, state, municipal, foreign and international governments and regulatory authorities having jurisdiction respecting Hygea to release any and all information in their possession respecting Hygea to Piper.  Hygea shall promptly execute and deliver to Piper any and all consents to the release of information and specific authorizations which Piper reasonably require to gain access to any and all such information.

 

 

  

13

  

 

Survival

6.3              The covenants set forth in this Article shall survive the Closing for the benefit of Piper.

ARTICLE 7

CONDITIONS PRECEDENT

Conditions Precedent in favor of Piper

7.1              Pipers obligations to carry out the transactions contemplated hereby are subject to the fulfillment of each of the following conditions precedent on or before the Closing:

	
(a)  

	
all documents or copies of documents required to be executed and delivered to Piper hereunder will have been so executed and delivered;

	
(b)  

	
all of the terms, covenants and conditions of this Agreement to be complied with or performed by Hygea or the Hygea Shareholders at or prior to the Closing will have been complied with or performed;

	
(c)  

	
title to the Hygea Shares held by the Hygea Shareholders and to the Hygea Assets will be free and clear of all mortgages, liens, charges, pledges, security interests, encumbrances or other claims whatsoever, save and except as disclosed herein, and the Hygea Shares shall be duly transferred to Mag Well;

	
(d)  

	
subject to Article 8 hereof, there will not have occurred

	
(i)  

	
any material adverse change in the financial position or condition of Hygea, its liabilities or the Hygea Assets or any damage, loss or other change in circumstances materially and adversely affecting Hygea, the Hygea Business or the Hygea Assets or Hygea right to carry on the Hygea Business, other than changes in the ordinary course of business, none of which has been materially adverse, or

	
(ii)  

	
any damage, destruction, loss or other event, including changes to any laws or statutes applicable to Hygea or the Hygea Business (whether or not covered by insurance) materially and adversely affecting Hygea, the Hygea Business or the Hygea Assets;

	
(e)  

	
the transactions contemplated hereby shall have been approved by all other regulatory authorities having jurisdiction over the subject matter hereof, if any;

	
(f)  

	
the transactions contemplated hereby shall have been approved by the Board of Directors and shareholders of Hygea;

	
(g)  

	
on or prior to the Closing Date, Hygea and/or the Hygea Shareholders shall have acquired all of the common shares held by Hygea Shareholders that are not participating in this Agreement so that Piper shall acquire 100% of the presently issued and outstanding Hygea Shares; and

	
(h)  

	
on or prior to the Closing Date, Hygea shall have delivered the Hygea Financial Statements.

Waiver by Piper

7.2              The conditions precedent set out in the preceding section are inserted for the exclusive benefit of Piper and any such condition may be waived in whole or in part by Piper at or prior to the Closing by delivering to Hygea a written waiver to that effect signed by Piper. In the event that the conditions precedent set out in the preceding section are not satisfied on or before the Closing, Piper shall be released from all obligations under this Agreement.

Conditions Precedent in Favor of Hygea and the Hygea Shareholders

7.3              The obligations of Hygea and the Hygea Shareholders to carry out the transactions contemplated hereby are subject to the fulfillment of each of the following conditions precedent on or before the Closing:

	
(a)  

	
all documents or copies of documents required to be executed and delivered to Hygea hereunder will have been so executed and delivered;

	
(b)  

	
all of the terms, covenants and conditions of this Agreement to be complied with or performed by Piper at or prior to the Closing will have been complied with or performed;

	
(c)  

	
Piper will have delivered the Acquisition Shares to be issued pursuant to the terms of the Acquisition to Hygea at the Closing and the Acquisition Shares will be registered on the books of Piper in the name of the holder of Hygea Shares at the time of Closing;

	
(d)  

	
title to the Acquisition Shares will be free and clear of all mortgages, liens, charges, pledges, security interests, encumbrances or other claims whatsoever;

	
(e)  

	
subject to Article 8 hereof, there will not have occurred

	
(i)  

	
any material adverse change in the financial position or condition of Piper, its subsidiaries, their liabilities or the Piper Assets or any damage, loss or other change in circumstances materially and adversely affecting Piper, the Piper Business or the Piper Assets or Piper right to carry on the Piper Business, other than changes in the ordinary course of business, none of which has been materially adverse, or

 

 

  

14

  

 

	
(ii)  

	
any damage, destruction, loss or other event, including changes to any laws or statutes applicable to Piper or the Piper Business (whether or not covered by insurance) materially and adversely affecting Piper, its subsidiaries, the Piper Business or the Piper Assets;

	
  

	
(f)

	
the transactions contemplated hereby shall have been approved by all other regulatory authorities having jurisdiction over the subject matter hereof, if any; and

	
  

	
(g)

	
the transactions contemplated hereby shall have been approved by the Board of Directors of Piper.

Waiver by Hygea and the Hygea Shareholders

7.4              The conditions precedent set out in the preceding section are inserted for the exclusive benefit of Hygea and the Hygea Shareholders and any such condition may be waived in whole or in part by Hygea or the Hygea Shareholders at or prior to the Closing by delivering to Piper a written waiver to that effect signed by Hygea and the Hygea Shareholders. In the event that the conditions precedent set out in the preceding section are not satisfied on or before the Closing, Hygea and the Hygea Shareholders shall be released from all obligations under this Agreement.

Nature of Conditions Precedent

7.5              The conditions precedent set forth in this Article are conditions of completion of the transactions contemplated by this Agreement and are not conditions precedent to the existence of a binding agreement. Each party acknowledges receipt of the sum of $10.00 and other good and valuable consideration as separate and distinct consideration for agreeing to the conditions of precedent in favor of the other party or parties set forth in this Article.

Termination

7.6              Notwithstanding any provision herein to the contrary, if the Closing does not occur on or before May 16, 2011 (the “Termination Date”), this Agreement will be at an end and will have no further force or effect, unless otherwise agreed upon by the parties in writing.

Confidentiality

7.7           Notwithstanding any provision herein to the contrary, the parties hereto agree that the existence and terms of this Agreement are confidential and that if this Agreement is terminated pursuant to the preceding section the parties agree to return to one another any and all financial, technical and business documents delivered to the other party or parties in connection with the negotiation and execution of this Agreement and shall keep the terms of this Agreement and all information and documents received from Hygea and Piper and the contents thereof confidential and not utilize nor reveal or release same.

ARTICLE 8

RISK

Material Change in the Business of Hygea

8.1              If any material loss or damage to the Hygea Business occurs prior to Closing and such loss or damage, in Pipers reasonable opinion, cannot be substantially repaired or replaced within sixty (60) days, Piper shall, within two (2) days following any such loss or damage, by notice in writing to Hygea, at its option, either:

	
(a)  

	
terminate this Agreement, in which case no party will be under any further obligation to any other party; or

	
(b)  

	
elect to complete the Acquisition and the other transactions contemplated hereby, in which case the proceeds and the rights to receive the proceeds of all insurance covering such loss or damage will, as a condition precedent to Pipers obligations to carry out the transactions contemplated hereby, be vested in Hygea or otherwise adequately secured to the satisfaction of Piper on or before the Closing Date.

Material Change in the Piper Business

8.2              If any material loss or damage to the Piper Business occurs prior to Closing and such loss or damage, in Hygea reasonable opinion, cannot be substantially repaired or replaced within sixty (60) days, Hygea shall, within two (2) days following any such loss or damage, by notice in writing to Piper, at its option, either:

	
(a)  

	
terminate this Agreement, in which case no party will be under any further obligation to any other party; or

	
(b)  

	
elect to complete the Acquisition and the other transactions contemplated hereby, in which case the proceeds and the rights to receive the proceeds of all insurance covering such loss or damage will, as a condition precedent to Hygea obligations to carry out the transactions contemplated hereby, be vested in Piper or otherwise adequately secured to the satisfaction of Hygea on or before the Closing Date.

 

 

 

  

15

  

 

ARTICLE 9

CLOSING

Closing

9.1              The Acquisition and the other transactions contemplated by this Agreement will be closed at the Place of Closing on Closing Date in accordance with the closing procedure set out in this Article.

Documents to be Delivered by Hygea

9.2              On or before the Closing, Hygea and the Hygea Shareholders will deliver or cause to be delivered to Piper:

	
(a)  

	
the original or certified copies of the charter documents of Hygea, including amendments thereof, and all corporate records documents and instruments of Hygea, the corporate seal of Hygea and all books and accounts of Hygea;

	
(b)  

	
all reasonable consents or approvals required to be obtained by Hygea for the purposes of completing the Acquisition and preserving and maintaining the interests of Hygea under any and all Hygea Material Contracts and in relation to Hygea Assets;

	
(c)  

	
certified copies of such resolutions and minutes of the shareholders and directors of Hygea as are required to be passed to authorize the execution, delivery and implementation of this Agreement;

	
(d)  

	
an acknowledgement from Hygea and the Majority Hygea Shareholders of the satisfaction of the conditions precedent set forth in section 7.3 hereof;

	
(e)  

	
the certificates or other evidence of ownership of the Hygea Shares, together with such other documents or instruments required to effect transfer of ownership of the Hygea Shares to Piper; and

	
(f)  

	
such other documents as Piper may reasonably require to give effect to the terms and intention of this Agreement.

Documents to be Delivered by Piper

9.3              On or before the Closing, Piper shall deliver or cause to be delivered to Hygea and the Hygea Shareholders:

	
(a)  

	
share certificates representing the Acquisition Shares duly registered in the names of the holders of shares of Hygea Common Stock;

	
(b)  

	
certified copies of such resolutions of the directors of Piper as are required to be passed to authorize the execution, delivery and implementation of this Agreement;

	
(c)  

	
a certified copy of a resolution of the directors of Piper dated as of the Closing Date appointing the nominees of Hygea as officers of Hygea and appointing the nominee of the Hygea Shareholders to the board of directors of Piper;

	
(d)  

	
resignations of all of the officers of Piper as of the Closing Date;

	
(e)  

	
an acknowledgement from Piper of the satisfaction of the conditions precedent set forth in section 7.1 hereof;

	
(f)  

	
certificate or incorporation and good standing certificate of Piper; and

	
(g)  

	
such other documents as Hygea may reasonably require to give effect to the terms and intention of this Agreement.

  

16

  

ARTICLE 10

POST-CLOSING MATTERS

Forthwith after the Closing, Piper, Hygea and the Hygea Shareholders, as the case may be, agree to use all their best efforts to:

	
(a)  

	
issue a news release reporting the Closing;

	
(b)  

	
change the name of Piper to “Hygea Holdings Corp.” of such other name as determined by the Board of Directors of Piper; and

	
(c)  

	
file a Form S-1 Registration Statement registering the Regisrable Securities and have such Registration Statement declared effective.

ARTICLE 11

GENERAL PROVISIONS

Arbitration

11.1           The parties hereto shall attempt to resolve any dispute, controversy, difference or claim arising out of or relating to this Agreement by negotiation in good faith.  If such good negotiation fails to resolve such dispute, controversy, difference or claim within fifteen (15) days after any party delivers to any other party a notice of its intent to submit such matter to arbitration, then any party to such dispute, controversy, difference or claim may submit such matter to arbitration in the City of Newport, California.

Notice

11.2              Any notice required or permitted to be given by any party will be deemed to be given when in writing and delivered to the address for notice of the intended recipient by personal delivery, prepaid single certified or registered mail, or telecopier. Any notice delivered by mail shall be deemed to have been received on the fourth business day after and excluding the date of mailing, except in the event of a disruption in regular postal service in which event such notice shall be deemed to be delivered on the actual date of receipt. Any notice delivered personally or by telecopier shall be deemed to have been received on the actual date of delivery.

Addresses for Service

11.3              The address for service of notice of each of the parties hereto is as follows:

	
(a)  

	
Piper:

2901 W. Coast Highway, 3rd Floor

Newport Beach, California 92663

Attention: Timothy Betts

Telephone no. (949) 270-7444

Facsimile no.  (949) 258-4389

	
(b)  

	
Hygea or the Hygea Shareholders:

 

 

9100 South Dadeland Blvd.

Suite 1500

Miami, Florida 33156

 

 

Attention: Manuel E. Iglesias, Chief Executive Officer and President

Telephone no. (305)-749-5540

Facsimile no. (866)-852-0454

 

 

 

  

17

  

 

Change of Address

11.4              Any party may, by notice to the other parties change its address for notice to some other address in North America and will so change its address for notice whenever the existing address or notice ceases to be adequate for delivery by hand. A post office box may not be used as an address for service.

Further Assurances

11.5              Each of the parties will execute and deliver such further and other documents and do and perform such further and other acts as any other party may reasonably require to carry out and give effect to the terms and intention of this Agreement.

Time of the Essence

11.6              Time is expressly declared to be the essence of this Agreement.

Entire Agreement

11.7              The provisions contained herein constitute the entire agreement among Hygea, the Hygea Shareholders and Piper respecting the subject matter hereof and supersede all previous communications, representations and agreements, whether verbal or written, among Hygea, the Hygea Shareholders and Piper with respect to the subject matter hereof.

Enurement

11.8              This Agreement will enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns.

Assignment

11.9              This Agreement is not assignable without the prior written consent of the parties hereto.

Counterparts

11.10              This Agreement may be executed in counterparts, each of which when executed by any party will be deemed to be an original and all of which counterparts will together constitute one and the same Agreement. Delivery of executed copies of this Agreement by telecopier will constitute proper delivery, provided that originally executed counterparts are delivered to the parties within a reasonable time thereafter.

Applicable Law

11.11           This Agreement shall be enforced, governed by and construed in accordance with the laws of the State of California applicable to agreements made and to be performed entirely within such state, without regard to the principles of conflict of laws  The parties hereto hereby submit to the exclusive jurisdiction of the United States federal courts located in Los Angeles, California with respect to any dispute arising under this Agreement, the agreements entered into in connection herewith or the transactions contemplated hereby or thereby. All parties irrevocably waive the defense of an inconvenient forum to the maintenance of such suit or proceeding.  All parties further agree that service of process upon a party mailed by first class mail shall be deemed in every respect effective service of process upon the party in any such suit or proceeding.  Nothing herein shall affect either party’s right to serve process in any other manner permitted by law.  All parties agree that a final non-appealable judgment in any such suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other lawful manner.  The party which does not prevail in any dispute arising under this Agreement shall be responsible for all fees and expenses, including attorneys’ fees, incurred by the prevailing party in connection with such dispute.

[Remainder of page intentionally left blank.]

 

 

  

18

  

 

IN WITNESS WHEREOF the parties have executed this Agreement effective as of the day and year first above written.

PIPER ACQUISITION II, INC.

By:/s/ Timothy Betts

Name: Timothy Betts

Title: Chief Executive Officer

HYGEA HEALTH HOLDINGS, INC.

By:/s/ Manuel E. Iglesias

Name: Manuel E. Iglesias

Tile: Chief Executive Officer/President

MAJORITY SHAREHOLDERS OF HYGEA HEALTH HOLDINGS, INC.

MANUEL R. AND OLGA IGLESIAS FAMILY TRUST

By:/s/ Manuel E. Iglesias

Name: Manuel E. Iglesias

Title: Managing Member

 

 

GEHARA LLC

By:/s/ Ted Moffly

Name: Ted Moffly

Title: Managing Member

SHAREHOLDERS OF HYGEA HEALTH HOLDINGS, INC.

SIGNATURE PAGE FOLLOWS

  

19

  

SIGNATURE PAGE for SHARE EXCHANGE AGREEMENT DATED 16th day of MAY, 2011 among PIPER ACQUISITION II, INC., and HYGEA HEALTH HOLDINGS, INC., and THE SHAREHOLDERS OF HYGEA and MANUEL R. AND OLGA IGLESIAS FAMILY TRUST AND GEHARA LLC

/s/ Alan Robert Schneider

Alan Robert Schneider, MD

/s/ Alan M Silbert

 Alan M Silbert, MD

/s/Alicia Harvey

 Alicia Harvey

/s/ Aurelio Mitjans

 Aurelio Mitjans, MD

/s/ Bobby Khan

 Bobby Khan, MD

/s/ David Rubin

 Capital Stack, LLC

/s/ Carl Rosencrantz

 Carl Rosencrantz, MD

/s/ Cesar Perez

 Cesar Perez, MD

/s/ Charles Stigger

 Charles Stigger

Cobran Investment LLC as Trustee of Markey Family Trust

By:      /s/ Denis Kleinfeld

Name: Denis Kleinfeld

Title:   Manager

/s/ Daniel T. McGowan

Daniel T. McGowan

/s/ David Shuey

David Shuey

 

  

20

  

/s/ Edward Moffly

Edward Moffly

/s/ Frank Kelly, Jr.

Frank Kelly, Jr.

/s/ Frank Recio

Frank Recio

/s/ Edward Moffly

Gehara LLC

/s/ Glenn Marrichi

Glenn Marrichi

/s/ Gregory Daniels

Gregory Daniels

Harbor View Investments LLC as Trustee of Herrmann Family Trust

By:       /s/ Denis Kleinfeld

Name: Denis Kleinfeld

Title:    Manager

/s/ Ivan Hadfeg

Ivan Hadfeg

/s/ John E. Kirkpatrick

John E. Kirkpatrick

/s/ John Padron 

John Padron MD.

/s/ Jose David Suarez

Jose David Suarez MD

/s/ Kathy Lubbers

Kathy Lubbers

/s/ Lacy Loar

Lacy Loar

/s/ Louis Biasi

Louis Biasi

 

 

  

21

  

 

/s/ Manuel E. Iglesias

Manuel E. Iglesias

 

Robinson Family I LLLP

/s/ Majorie Robinson

By; Majorie Robinson MD

Tittle: Member

 

/s/ Marilyn Ehrhardt

 Marilyn Ehrhardt

 

/s/ Martha Castillo

 Martha Castillo

 

/s/ Michael Sension

 Michael Sension MD

 

/s/ Miriam Cajiga

 Miriam Cajiga

 

/s/ Mitchell E. Goldstein

 Mitchell E. Goldstein, DO

 

/s/ Pedro Pedrianes

 Pedro Pedrianes

Rockfort Investments LLC as Trustee of CAI Hygea Trust

By:      /s/ Denis Kleinfeld

Name:  Denis Kleinfeld

Title:    Manager

Rockfort Investments LLC as Trustee of D’Arraigan Investment Trust

By:      /s/ Denis Kleinfeld      

Name:    Denis Kleinfeld

Title:      Manager

Millsborough Investment, LLC as Trustee of EDC Investment Trust

By:          /s/ Denis Kleinfeld  

Name:    Denis Kleinfeld

Title:      Manager

Rockfort Investments LLC as Trustee of San Felipe Investment Trust

By:       /s/ Denis Kleinfeld     

Name:    Denis Kleinfeld

Title:      Manager

 

/s/ Shahmir Quraeshi

 Shahmir Quraeshi

 

/s/ Keith Minella

 Steele Ventures LLC

 

/s/ Stephen Alan Kotzen

 Stephen Alan Kotzen, MD

 

/s/ Victor Klingelhofer

 Victor Klingelhofer

 

/s/ Yuri Shmerlis

 Yuri Shmerlis

 

Leistner Group LLC

 

By: /s/ 

 Name: Albert Leistner 

Title: Chairman

 

Manuel R. and Olga Iglesias Family, Trust

By: /s/ Brian Perlin

Name: Brian Perlin

Title: Trustee

 

Kirkpatrick Family Foundation Inc.

 

By; /s/ John E. Kirkpatrick

Name:John E. Kirkpatrick

Title: Managing Member

 

RT&C Holdings, Inc 

 

By: /s/ Carlos Trueba

 Name: Carlos Trueba

Title: Director 

 

Palm Medical Network, LLC.

 

By: /s/ Martha  Castillo

Name: Martha Castillo

Title: Chief Operating Officer

 

 

  

22

  

Schedule 2.2 – Acquisition Shares

	  	 	
Hygea Shares

	 	 	
Acquisition Shares

	 
	
Alan M Silbert, MD

	 	 	55,000	 	 	 	118,465	 
	
Alan Robert Schneider, MD

	 	 	55,000	 	 	 	118,465	 
	
Aurelio Mitjans, MD

	 	 	30,000	 	 	 	64,617	 
	
Bobby Khan, MD

	 	 	100,000	 	 	 	215,391	 
	
Rockfort Investments LLC as Trustee of CAI Hygea Trust

	 	 	1,000,000	 	 	 	2,153,912	 
	
Carl Rosencrantz, MD

	 	 	397,222	 	 	 	855,581	 
	
Cesar Perez, MD

	 	 	200,000	 	 	 	430,782	 
	
Daniel T McGowan

	 	 	711,111	 	 	 	1,531,670	 
	
Rockfort Investments LLC as Trustee of D'Arraigan Investment Trust

	 	 	2,375,000	 	 	 	5,115,541	 
	
Capital Stack LLC

	 	 	450,000	 	 	 	969,260	 
	
Edward Moffly

	 	 	1,250,000	 	 	 	2,692,390	 
	
Frank Kelly, Jr.

	 	 	2,783,333	 	 	 	5,995,055	 
	
Frank Recio

	 	 	500,000	 	 	 	1,076,956	 
	
Gehara LLC

	 	 	13,375,000	 	 	 	28,808,570	 
	
Glenn Marrichi

	 	 	600,000	 	 	 	1,292,347	 
	
Harbor View Investments LLC as trustee

of the Herrmann Family Trust

	 	 	1,500,000	 	 	 	3,230,868	 
	
Jose David Suarez MD

	 	 	200,000	 	 	 	430,782	 
	
Kathy Lubbers

	 	 	44,444	 	 	 	95,728	 
	
Lacy Loar

	 	 	750,000	 	 	 	1,615,434	 
	
Leistner Group LLC

	 	 	125,000	 	 	 	269,239	 
	
Louis Biasi

	 	 	44,444	 	 	 	95,728	 
	
Millsborough Investments LLC as Trustee of EDC Investment Trust

	 	 	1,000,000	 	 	 	2,153,912	 
	
Manuel E. Iglesias

	 	 	450,000	 	 	 	969,260	 
	
Manuel R. and Olga Iglesias Family Trust

	 	 	25,550,000	 	 	 	55,032,446	 
	
Robinson Family I LLLP

	 	 	350,000	 	 	 	753,869	 
	
Marilyn Ehrhardt

	 	 	150,000	 	 	 	323,087	 
	
Martha Castillo

	 	 	500,000	 	 	 	1,076,956	 
	
Miriam Cajiga

	 	 	200,000	 	 	 	430,782	 
	
Mitchell E. Goldstein, DO

	 	 	55,000	 	 	 	118,465	 
	
Pedro Pedrianes

	 	 	600,000	 	 	 	1,292,347	 
	
Rockfort Investments LLC as Trustee of San Felipe Investment Trust

	 	 	2,375,000	 	 	 	5,115,541	 
	
Stephen Alan Kotzen, MD

	 	 	55,000	 	 	 	118,465	 
	
Yuri Shmerlis

	 	 	500,000	 	 	 	1,076,956	 
	
Victor Klingelhofer

	 	 	300,000	 	 	 	646,174	 
	
John Padron MD

	 	 	200,000	 	 	 	430,782	 
	
Gregory Daniels

	 	 	22,222	 	 	 	47,864	 
	
David Shuey

	 	 	22,222	 	 	 	47,864	 
	
Ivan Hadfeg

	 	 	11,111	 	 	 	23,932	 
	
John E. Kirkpatrick

	 	 	2,000,000	 	 	 	4,307,823	 
	
Steele Ventures LLC

	 	 	42,222	 	 	 	90,942	 
	
Michael Sension

	 	 	22,222	 	 	 	47,864	 
	
Alicia Harvey

	 	 	22,222	 	 	 	47,864	 
	
Charles Stigger

	 	 	33,333	 	 	 	71,796	 
	
Cobran Investment LLC as Trustee of the Markey Family Trust

	 	 	1,000,000	 	 	 	2,153,912	 
	
RT & C Holdings, Inc.

	 	 	70,000	 	 	 	150,774	 
	
Palm Medical Network, LLC

	 	 	422,225	 	 	 	909,435	 
	
Shahmir Quraeshi

	 	 	100,000	 	 	 	215,391	 
	Kirkpatrick Family Foundation, Inc.	 	 	444,444	 	 	 	957,293	 
	  	 	 	63,042,777	 	 	 	135,788,575	 

 

 

  

23

  

Schedule 3.1(ll) – Registrable Securities

Private Placement 1

	
Hill, Paul

	 	 	30,000	 
	
Anderson, James

	 	 	20,000	 
	
Witham, Betram Col.

	 	 	10,000	 
	
Horn, Charles L.

	 	 	10,000	 
	
Dockstader, Ephraim H.

	 	 	30,000	 
	
Rowell, John A.

	 	 	30,000	 
	
JM Assets LP

	 	 	30,000	 
	
Stubblefield, Barbara J.

	 	 	60,000	 
	
Shapiro, Joel

	 	 	50,000	 
	
Kellner, Lawrence M.

	 	 	33,333	 
	
Bratek, Ronald

	 	 	40,000	 
	
Frederick, Susan and Nick

	 	 	40,000	 
	
Maine, Jerry I.

	 	 	20,000	 
	
Paul W. Heisey Trust

	 	 	20,000	 
	
Krauss, Bob

	 	 	40,000	 
	
Robert E. & Rosalie T. Dettle Living Trust Dated 2/29/1980

	 	 	25,000	 
	
Benz, Robert T.

	 	 	25,000	 
	
Firebaugh, Robert T.

	 	 	40,000	 
	
Davis, Thomas W. Jr.

	 	 	10,000	 
	
Kaplan, Joel

	 	 	20,000	 
	
The Klar Family Trust

	 	 	10,000	 
	
Dees, Tannie G.

	 	 	10,000	 
	
ELG Family Trust

	 	 	20,000	 
	
Elg, Mark

	 	 	20,000	 
	
Russell, John R

	 	 	10,000	 
	
Gerald Yanowitz

	 	 	15,000	 
	
Paul Kaye

	 	 	10,000	 
	
Dees, James

	 	 	10,000	 
	
Morgan, William E.

	 	 	25,000	 
	
Kaplan, Joel

	 	 	7,000	 
	
Cragg, Geoffrey

	 	 	20,000	 
	
Meador Trust

	 	 	20,000	 

Miscellaneous

	  	 	 	 
	
Eric Horton

	 	 	250,000	 
	
Tom Rubin

	 	 	2,049,000	 
	
Tim Betts

	 	 	2,049,000	 
	
Sean Harrison

	 	 	966,667	 
	
Michael Arnold

	 	 	300,000	 
	
Kevin Mohan

	 	 	500,000	 
	
Stephen Fleming

	 	 	760,000	 
	Rosemary Fleming  	 	 	760,000	 
	Christine Bailey  	 	 	100,000	 
	Evan Costaldo   	 	 	40,000	 
	Stephen Cohen      	 	 	40,000	 
	Lauren Eschmann   	 	 	100,000	 
	Nobis Capital Advisors, Inc.	 	 	3,725,904	 
	Chanwest Resources, Inc.	 	 	50,000	 
	Richard Solomon	 	 	200,000	 
	Robert T. Firebough	 	 	100,000	 
	Dennis F. Trainor	 	 	25,000	 

                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                    

  

24

  

                                                                                                                                       

Nobis Capital Advisors LLC 3,725,904

PPM – 5% Notes

	
Hartmann, John

	 	 	63,026	 
	
Kellner, Lawrence M.

	 	 	69,329	 
	
Maine, Jerry

	 	 	63,026	 
	
Klar, Lawrence

	 	 	69,329	 
	
Anderson, James

	 	 	69,329	 
	
Meador Trust

	 	 	252,105	 
	
Peterson, Clifton

	 	 	126,053	 
	
McKellips Family Trust

	 	 	157,566	 
	
Morgan, William

	 	 	63,026	 
	
Brathwaite, Denise

	 	 	138,658	 
	
Firebaugh, Robert

	 	 	138,658	 
	
John and Kay Kabage Family Trust

	 	 	69,329	 
	
Hillock Revocable Trust

	 	 	63,026	 
	
Rosenberger, Francis

	 	 	346,645	 
	
Anderson, James

	 	 	138,658	 
	
Neugebauer, Jerry

	 	 	157,566	 
	
Spoltman, John

	 	 	63,026	 
	
Hill, Paul

	 	 	157,566	 
	
Heisey, Paul

	 	 	346,645	 
	
Theodore E. Roeth Trust

	 	 	138,658	 
	
Rosenberger, Francis

	 	 	346,645	 
	
Brathwaite, Denise

	 	 	34,665	 
	
Southall, A.B.

	 	 	157,566	 
	
Phil and Colette Mitchell Trust

	 	 	69,329	 
	
Shea, David

	 	 	138,658	 
	
Elg Family Trust

	 	 	159,457	 
	
Applestein, David

	 	 	69,329	 
	
Roder, Norman

	 	 	69,329	 
	
Benz, Robert

	 	 	346,645	 
	
Hardin, Dorthea

	 	 	138,658	 
	
Dockstader, Ephraim

	 	 	69,329	 
	
Bunkers, Douglas

	 	 	69,329	 
	
Decker, Stanley

	 	 	69,329	 
	
Stubblefield, Barbara

	 	 	69,329	 
	
Gold, Sidney

	 	 	69,329	 
	
Mulrooney, John

	 	 	63,026	 
	
Mylnarski, Joel

	 	 	69,329	 
	
Lamers Forests, Ltd

	 	 	138,658	 
	
Robert E. Dettle Trustee

	 	 	69,329	 
	
Wellbrock Family Trust

	 	 	69,329	 
	
Simpson, Charles

	 	 	159,457	 

 

 

 

  

25

  

 

PPM – Notes 10%

	
Kellner, Lawrence M.

	 	 	90,909	 
	
Elg Family Trust

	 	 	225,000	 
	
AB Southall

	 	 	910,000	 
	
Benz, Robert

	 	 	1,000,000	 
	
Witham, Bertram

	 	 	500,000	 
	
JM Assets

	 	 	1,000,000	 
	
Neugebauer, Jerry

	 	 	318,182	 
	
Bethel, Roy

	 	 	90,909	 
	
Rowell, John

	 	 	200,000	 
	
Lindsay, John

	 	 	181,818	 
	
Parker, Robert

	 	 	227,273	 
	
Maine, Jerry

	 	 	90,909	 
	
Robert and Rosalie Dettle Living Trust

	 	 	90,909	 
	
Krause, Sharon

	 	 	181,818	 
	
Bratek, Ronald

	 	 	90,909	 
	
Benz, Robert

	 	 	1,136,364	 

PPM -Notes 10%

 

	
Neugebauer, Jerry

	 	 	418,182	 
	
McKellips, Jeff

	 	 	227,273	 
	
Holmes, Shawn

	 	 	227,273	 
	
Stubblefield, Barbara

	 	 	90,909	 
	
Stahl Family Rev Living Trust

	 	 	90,909	 
	
Eiseman, Jeffrey

	 	 	181,818	 
	
Morgan, William

	 	 	90,909	 
	
Elg Family Trust

	 	 	210,000	 
	
Neugebauer, Jerry

	 	 	381,818	 
	
Mehl, Robert

	 	 	454,545	 
	
Richard Solomon Trustee F/B/O Richard Solomon

	 	 	909,091	 
	
Hewson, Thomas

	 	 	90,909	 
	
Frederick, Susan and Nick

	 	 	90,909	 
	
Shea, David

	 	 	181,818	 
	
Stubblefield, Barbara

	 	 	90,909	 
	
Kellner, Lawrence M.

	 	 	90,909	 
	
Maine, Jerry

	 	 	90,909	 
	
Hartmann, John

	 	 	90,909	 
	
Neugebauer, Jerry

	 	 	363,636	 
	
Gill, Stephen

	 	 	90,909	 
	
Kaplan, Joel

	 	 	90,909	 

HYGEA Shareholders

	
Bobby Khan, MD

	 	 	100,000	 
	
Rockfort Investments LLC as Trustee of CAI Hygea Trust

	 	 	500,000	 
	
Rockfort Investments LLC as Trustee of D'Arraigan Investment Trust

	 	 	500,000	 
	
Jose David Suarez MD

	 	 	100,000	 
	
Kathy Lubbers

	 	 	44,444	 
	
Louis Biasi

	 	 	44,444	 
	
Millsborough Investments as Trustee of EDC Investment Trust

	 	 	500,000	 
	
Pedro Pedrianes

	 	 	100,000	 
	
Rockfort Investments LLC as Trustee of San Felipe Investment Trust

	 	 	500,000	 
	
Gregory Daniels

	 	 	22,222	 
	
David Shuey

	 	 	22,222	 
	
Ivan Hadfeg

	 	 	11,111	 
	Kirkpatrick Family Foundation, Inc.	 	 	444,444	 
	
Steele Ventures LLC

	 	 	22,222	 
	
Michael Sension MD

	 	 	22,222	 
	
Alicia Harvey

	 	 	22,222	 
	
Charles Stigger

	 	 	33,333	 
	
Carl Rosencrantz, MD

	 	 	22,222	 
	
RT & C Holdings, Inc.

	 	 	70,000	 
	
Palm Medical Network LLC

	 	 	422,225	 

26

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