Document:

Unassociated Document

Exhibit 10.3

 

Guarantee Agreement on Pledge of Right

Contract No.: 93202110410100101

Pledgor: Kunming Shenghuo Pharmaceutical (group) Co., Ltd.

Address: No.2 Jing You Road, Kunming National Economy and Technology Developing District

Legal Representative: Guihua Lan

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Pledgee: Yunnan Fudian Bank Co., Ltd. (Fudian Bank), Kunming Hi-tech Development Zone Branch

Address: No.1-6, Block B   Hecheng Century Park, Kunming Hi-tech Development Zone

Person-in-Charge: Wei Lu

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Table Content

1. Representations and Warranties Made by the Pledgor

2. Category and Amounts of Guaranteed Creditor’s Principal Claim

3. Term for the Borrower to Fulfill Its Debts under the Master Contract

4. Scope of the Guaranty of Pledge

5. Pledged Right

6. Transfer of the Certificate for Pledged Right

7. Registration on Pledge

8. Enforcement of Pledged Right

9. Early Extinguishment of Debts or Put in Drawing

10. Pledgor’s Rights and Obligations

11. Pledgee’s Rights and Obligations

12. Liability for Breach of Agreement

13. Effect of the Agreement and Its Modification or Termination

14. Applicable Laws and Jurisdiction

15. Others

16. Supplementary

 

 

  

  

  

Pledgor ( Hereinafter referred to as Party A): Kunming Shenghuo Pharmaceutical (group) Co., Ltd.

Pledgee ( Hereinafter referred to as Party B): Yunnan Fudian Bank Co., Ltd. (Fudian Bank), Kunming Hi-tech Development Zone Branch

To ensure the performance of the Loan Contract (“Master Contract”) No. 932021104101001 and the enforcement of the creditor’s right by the pledgee, the pledgor agrees to provide the guaranty of pledge for the creditor’s right generated between the pledgee and the debtor under the Master Contract.  Party A and Party B, through their consultations,  have entered into the following agreement (“ Agreement”) pursuant to The Contract Law, The Security Law and other related laws and regulations of People’s Republic of China.

1. Pledge of Right

 

1.  The Pledgor disposes  its pledged right on the list in Section 14 of the Master Contract.

     (1)  for the related pledge right under the Contract  see the List of Pledged Right

     (2)   At the time of signing this Agreement,  the agreed upon value by both parties neither serves as the basis of evaluation by party B to dispose the pledged right, nor poses any restriction on Party B to exercise its right..

2.  Representations and Warranties Made by the Pledgor

    (1)  The pledgor has the full capability of civil conduct, possessing the pledged right completely, validly and legally or running a business under authorization of the state. The pledgor assures that there is no dispute over the pledged right under this Agreement and that it enjoys the right of ownership or disposal by law to the pledged right.

    (2)  The pledgor has a full understanding of the purpose of loan under the Master Contract; it’s of its own will to provide guaranty of pledge for the borrower under the Master Contract and all of its declaration of intention is genuine.

    (3) The right under this Agreement may be placed for pledge by law; the pledge that this Agreement is established for would not by limited for any excuse.

    (4 ) All the documents, materials, financial statements and vouches provided to the pledgee are accurate, genuine, complete and valid.

2. Scope of the Guaranty of Pledge

The guaranteed creditor’s principal claim under this Agreement consists of the released loan in amount of RMB 8 million and interest (both compound interest and penalty interest), liquidated damages, compensation, advance payment by the pledgee for related expenses and all expenditures on the pledgee’s enforcement of creditor’s right and pledge right, including but not limited to expenditures on litigation, arbitration, property preservation, traveling, execution, evaluation and auction, etc.

3. Duration Term of Pledged Right

The duration term will end two years after the statute of limitation for guaranteed creditor’s right expires.

The term for fulfilling the debts by the borrower under Master Contract dated from April 22, 2011 to April 21, 2012. Any change to the term will be subject to the Master Contract.

  

  

  

4. Independence of the Validity of This Agreement

This Agreement is independent from the Master Contract; the invalidity of Master Contract shall not affect the validity of this Agreement. Should the Master Contract be confirmed as invalid, the pledgor shall also bear the guaranty responsibility with pledged right for debts caused by return of property or compensation for damage.

5. Procedures on Pledge

5.1 Transfer and custody of the certificate of pledged right

The pledgor shall transfer the certificate of pledged right to the pledgee for possession before April 22, 2011. A receipt will be returned to the pledgor.

5.2 Registration and documentation of the pledged right

If a pledge registration or documentation is required by law, the pledgor shall have it done before April 22, 2011.

5.3 If a change of registration is needed for changed registered items, both parties shall go through the procedures within 15 days.

5.4 The pledgor shall be liable for expenses related to the above registration or change of registration.

6. Disposal of Pledged Right

The pledgor shall request for the pledgee’s written consent before it disposes the pledged right on duration term. And the pledgor agrees that the pledgee may handle the proceeds from disposal by following ways:

  a. To discharge or early discharge the principal and interest and relevant expenses under the Master Contract;

  b. To deposit it for fixed periods and have the deposit receipt pledged.

  c. To put in drawing to third person designated by the pledgee.

  d. The pledgor could dispose the proceeds at its will after it provides a new guaranty required by the pledgee.

7. Enforcement of Pledged Right

7.1 Should any of following conditions happen, the pledgee may dispose the collateral at reduced price or earn proceeds from auction of the collateral to compensate for the debts unpaid by the borrower under the Master Contract:

7.1.1 The pledgee is not repaid with the whole or part of the principal or interest under the Master Contract upon its expiration.

7.1.2 Other condition that the pledgee may take an early enforcement of the creditor’ right as agreed in the Master Contract.

7.2 The pledgor shall be cooperative when the pledgee disposes the pledged right as prescribed in this Agreement.

  

  

  

8. Early Extinguishment of Debts or Put in Drawing

8.1 Upon the pledgee’s consent, the pledgor may transfer or have authorized person transfer the patent right under this Agreement. The proceeds from transfer of paten right shall be used to make an early extinguishment of guaranteed debts or put in drawing to third party as agreed by both parties, and the expenses on drawing shall be born by the pledgor.

8.2  Party A can transfer the equity under this Agreement upon Party B’s approval.  The proceeds from transferring the shares shall pay off Party B’s secured debt in advance, or put into the escrow of a third party agreed by both parties.  Party A shall bear the fees related to the escrow.

8.3   Upon Party B’s approval, Party A can transfer  or  permit others to use trademark, patents, copyright under the provisions of this Agreement, but  party A shall use the transfer fees, license fees to pay off Party B’s secured debt in advance, or put into the escrow of a third party agreed by both parties.  Party A shall bear the fees related to the escrow.

9. Pledgor’s Rights and Obligations

9.1 Rights

9.1.1 After the extinguishment of all debts, the pledgor may request the pledgee to indemnify it for the loss or damage of collateral due to pledgee’s improper custody during the pledge period. If the debts were not fully extinguished, the amount of indemnity could be partially off set by the unfulfilled debts.

9.1.2 The pledgor bears no responsibility of guaranty when the borrower under Master Contract extinguished all the debts.

9.1.3 Should the debts under the Master Contract are fulfilled, or the pledgor take an early extinguishment of guaranteed creditor’s right, the pledgee shall return the collateral timely.

9.2 Obligations

9.2.1 The pledgor is required to inform the pledgee in written at least 30 days before making changes in business mechanism (such as, exercise contracting, leasing, jointing business, merging, separating, stock system reforming and jointing venture, etc ), scope of business, registered capital and stock ownership through the duration of pledged right.

9.2.2 The pledgor is required to inform the pledgee in written within 5 days when it is found being involved in disputes over serious economic issue or the ownership of pledged property, or facing bankruptcy, suspension of business, dissolving, suspension of business for regulation, forced revocation of business license, forced cancellation, or changing its place of residence, telephone number or legal representative.

9.2.3 The pledgor shall not grant, transfer or remortgage the collateral under this Contract through the duration of the pledged right.

9.2.4 The pledgor shall be liable for all expenses related to, including but not limited to, legal services, property insurance, evaluation, drawing, registration, transfer of ownership, custody and litigation.

9.2.5 The compensation for lost or damaged collateral is required to be deposited into the account designated by the pledgor for purpose of guarantying the performance of creditor’s principal claim.

9.2.6 Should the collateral bring damage to the pledgee or third person and this damage is not caused by the pledgee, then the pledgor shall be liable for indemnity.

9.2.7 The pledgor is obligated to inform and prevent the pledgee from damage when the pledged right could or already have damaged by any third party.

9.2.8 Should the pledgee transfer its creditor’s principal right to third party after this Agreement become effective, the pledgor’s obligation of guaranty remains effective.

  

  

  

10. Pledgee’s Rights and Obligations

10.1 Rights

10.1.1 Should the borrower fail to pay back the principal and interest and other expenses upon expiration of the Master Contract, the pledgee may dispose the collateral under this Agreement.

10.1.2 May dispose the pledged property early and have the priority to be indemnified with proceeds from disposal should any following event happen:

a. Terminate the Master Contract pursuant to agreed provisions or by rules of law.

b. Withdraw the loan ahead of schedule pursuant to other agreements as prescribed in the Master Contract, resulting in a failure in enforcing or fully enforcing the creditor’s right under the Master Contract.

C. May ask for the pledgor’s assistance to prevent the pledged right from damaging by any third party.

10.2 Obligations

10.2.1 Obligated to keep the collateral in proper custody.

10.2.2 Required to inform the pledgor immediately when transfers the creditor’s principal claim within the validity period of this Agreement.

10.2.3 Required to return the collateral to the pledgor soon after the pledgor extinguishes all debts under the Master Contract and this Agreement.

10.2.4 For the proceeds from disposal of the collateral under this Agreement, the pledgee is required to return rest of the proceeds to the pledgor after it extinguishes all the debts within the scope of guaranty of pledge under this Agreement.

 

11. Default and Its Resolution

11.1 The pledgee shall bear civil responsibility for loss or damage of certificate of rights due to improper custody through duration of the pledged right.

11.2 The pledgor shall be deemed as default for providing false representation and statement and shall be liable for any possible compensation.

11.3 After this Agreement become effective, both parties shall fully perform their obligations as prescribed in this Agreement. Any party fails in performing or fully performing the obligations hereunder shall be liable for default and any possible compensation.

11.4 Should the pledgor breach this Agreement through the duration of the pledged right, the pledge may ask the pledgor to redress the breach, to provide corresponding guaranty, to indemnify for damage and also may require an early disposal of the pledged right.

The pledgor agrees that the pledgee has the right to handle the proceeds from disposal of pledged right by following ways:

  a. To discharge or early discharge the principal and interest and relevant expenses under the Master Contract;

  b. To deposit it for fixed periods and have the deposit receipt pledged.

  c. To put in drawing to third person designated by the pledgee.

  d. The pledgor could dispose the proceeds at its will after it provided a new guaranty required by the pledgee.

11.5. Should this Agreement become invalid due to the pledgor’s malpractice, it shall indemnify for all damages happen to the pledgee within the scope of the guaranty of pledge.

  

  

  

12. Effect of the Agreement and Its Modification or Termination

12.1 This Agreement comes into force immediately after the date of executing by both parties or by their authorized agents and the delivery of collateral, or after the date of registration if required by law.

12.2 This Agreement remains valid till the date when the principal, interest, penalty interest, compound interest, liquidated damages and all the other payables are paid off.

12.3 Neither party shall modify the Agreement unilaterally or terminate the Agreement ahead of expired date after the Agreement become effective. Both parties shall reach a written consent  to modify or terminate this Agreement.

13. Others

13.1 The property right for pledge is the patent right No.2L00109992 possessed by Kunming Shenghuo Pharmaceutical (Group) Co., Ltd.

13.2 The patent is named as A Method of Synthetic Preparation of Dencichine for Treatment of Bleeding.

14. Resolution of Dispute

Any dispute occurring in the performing this Agreement should be settled through negotiation by both parties. If it fails, the dispute should be solved using the first method below:

 

1. File a law suit with People’s Court in pledgee’s domicile.

2. Submit  (this column is blank)  to arbitration committee (Place of arbitration is: _________). The arbitration shall be conducted in accordance with the arbitration rules effective as of the time of application. The arbitral award is final and has binding upon both parties.

During lawsuit or arbitration, clauses in this contract that are not in controversy shall still be performed.

15. List of Collateral Pledged with Personal Property

 

  Blank ( none)

16. Recital Clause

16.1 The pledgor has a clear knowledge of the business scope and authorization scope of the pledgee.

16.2 The pledgor has read all provisions of this Agreement. The pledgee has made explanations for corresponding provisions as per the requirement of the pledgor. The pledgor has already had a complete and accurate understanding to the meaning of all provisions under this Agreement as well as corresponding legal consequences.

16.3  The pledgor is entitled to execute this Agreement

This Agreement shall be executed in 3 original copies, one copy for each party of the pledgor, the pledgee and the debtor and each copy shall have the same legal force.

  

  

  

Pledgor: Kunming Shenghuo Pharmaceutical (group) Co., Ltd.

Legal Representative: Guihua Lan

Pledgee: Fudian Bank, Branch in Kunming Hi-tech Development Zone

Person-in-charge: Yongkang Zhao

Date: April 22, 2011Unassociated Document

Exhibit 10.1

STOCK PURCHASE AGREEMENT

 

This STOCK PURCHASE AGREEMENT (this “Agreement”) by and between LIVEDEAL, INC., a Nevada corporation (the “Company”), and each of Joint Corporation FeelTech Investment Unit 2, Joint Corporation FeelTech Investment Unit 3, Joint Corporation FeelTech Investment Unit 4, Joint Corporation FeelTech Investment Unit 5, Joint Corporation FeelTech Investment Unit 6 and Joint Corporation FeelTech Investment Unit 7 (each a “Purchaser”), is entered into as of March 16, 2011.

 

The Company and Purchaser are entering into this agreement to memorialize the terms and conditions upon which Purchaser commits to purchase and acquire shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”).

 

NOW THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereby agree as follows:

 

	
I. 

	
STOCK PURCHASE COMMITMENT; REPRESENTATIONS BY PURCHASER

 

1.1           Subject to the terms and conditions hereinafter set forth, Purchaser hereby agrees to purchase from the Company (at the Company’s sole and exclusive option) shares of Common Stock (the “Shares”) in one or more investment tranches (each a “Tranche”) in accordance with the schedule set forth below.  The aggregate dollar amount that Purchaser is obligated to invest in the Company in exchange for the Shares is set forth below.  The purchase price (“Purchase Price”) for each Share that Purchaser is obligated to purchase in each Tranche shall be the sum obtained by adding (i) US$0.50 and (ii) the average closing price for the Common Stock as reported by the NASDAQ Capital Market for the 90-day period immediately preceding (but not including) the Closing Date (as defined in Section 1.3 below) for such Tranche.  No fractional Shares shall be issued to Purchaser; to the extent that any calculation would otherwise result in the issuance of a fractional Share, the result of such calculation shall be rounded down to the nearest whole Share.  Purchaser agrees that it will be obligated to purchase its respective Shares in accordance with the following schedule:

 

(i)           US$25,000 shall be wired to the Company’s designated account by Joint Corporation FeelTech Investment Unit 2 on or before March 25, 2011;

 

(ii)          US$25,000 shall be wired to the Company’s designated account by Joint Corporation FeelTech Investment Unit 3 on or before March 25, 2011;

 

(iii)         US$25,000 shall be wired to the Company’s designated account by Joint Corporation FeelTech Investment Unit 4 on or before April 25, 2011;

 

(iv)         US$25,000 shall be wired to the Company’s designated account by Joint Corporation FeelTech Investment Unit 5 on or before April 25, 2011;

 

(v)          US$25,000 shall be wired to the Company’s designated account by Joint Corporation FeelTech Investment Unit 6 on or before May 25, 2011; and

 

(vi)         US$25,000 shall be wired to the Company’s designated account by Joint Corporation FeelTech Investment Unit 7 on or before May 25, 2011.

 

1.2           The failure of Purchaser to make the required Tranche payment as set forth above (following written notice of such failure and a five business day opportunity to cure) shall result in the Company having the right to repurchase any and all Shares previously issued to Purchaser for an amount equal to the applicable Purchase Price of such Shares less US$0.50 per each Share.

 

 

 

 

 

1.3           The closing of each respective investment Tranche shall be a “Closing” and the date of each Closing shall be a “Closing Date.”  At each Closing or as promptly thereafter as possible, the Company shall cause to be delivered to Purchaser a certificate, registered in the name of Purchaser, representing the Shares actually purchased by Purchaser at such Closing against payment of the Purchase Price therefore by wire transfer to a bank account designated by the Company.

 

1.4           Purchaser recognizes that the purchase of the Shares entails elements of risk in that (i) it may not be able to readily liquidate its investment; (ii) transferability is restricted as set forth in Section 4.1; and (iii) in the event of a disposition, it could sustain the loss of its entire investment.

 

1.5           Purchaser acknowledges that it has prior investment experience such that it is able to evaluate the merits and risks of an investment in the Company; that it recognizes the speculative nature of this investment; and that it is able to bear the economic risk it hereby assumes.  All reports, schedules, forms, statements, and other documents required to be filed by the Company with the United States Securities and Exchange Commission (“SEC”) under the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated under each, including pursuant to Section 13(a) or 15(d) thereof, as well as all amendments to such filings and reports and all exhibits and documents incorporated by reference therein or attached thereto, that have been filed as of the date of a respective Closing are collectively referred to as the “Disclosure Reports.”  Purchaser acknowledges that it or its representative(s) have read the Disclosure Reports available as of each respective Closing.  Purchaser also acknowledges that it and its representative(s) have been afforded the opportunity to make, and has made, all inquiries as it and its representatives deemed appropriate with respect to the Company’s affairs and prospects.

 

1.6           Purchaser hereby acknowledges that (i) the sale and issuance of the Shares have not been approved by the NASDAQ or registered with the SEC by reason of the Company’s intention that the offer and sale of the Shares be a transaction exempt from the registration and prospectus delivery requirements of the Securities Act pursuant to Section 4(2) thereof; (ii) the issuance of the Shares has not been qualified under any state securities laws on the grounds that the sale of the Shares contemplated hereby are exempt therefrom; and (iii) the foregoing exemptions are predicated on Purchaser’s representations set forth herein.  Purchaser represents that the Shares are being purchased for its own account, for investment and not with a view to, or for resale in connection with, any distribution or public offering thereof, within the meaning of the Securities Act or applicable state securities laws.  Purchaser understands that the Shares, upon their transfer, will not be registered under the Securities Act and may be required to be held indefinitely unless they are subsequently registered under the Securities Act, or an exemption from such registration is available.

 

1.7           Purchaser represents that it is an “accredited investor” as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act.

 

1.8           Unless the resale of the Shares is subsequently registered with the SEC, Purchaser acknowledges that the certificate representing the Shares shall bear a legend in substantially the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND COMPLIANCE WITH SUCH STATE SECURITIES LAWS, (II) IN COMPLIANCE WITH RULE 144 UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR (III) UPON THE DELIVERY TO LIVEDEAL, INC. (THE “COMPANY”) OF AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND/ OR COMPLIANCE IS NOT REQUIRED.”

 

 

 

 

 

1.9           Purchaser represents that it has the full right, power and authority to enter into and perform Purchaser’s obligations hereunder, and this Agreement constitutes a valid and binding obligation of Purchaser enforceable in accordance with its terms, except that (i) any enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium or similar laws from time to time in effect and affecting the rights of creditors generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceedings therefore may be brought.

 

	
II. 

	
REPRESENTATION AND WARRANTIES BY THE COMPANY

Except as set forth in the Disclosure Reports, the Company represents and warrants to Purchaser as follows:

2.1           The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada.  The Company has the corporate power and authority to own, lease and operate its properties and to conduct the business as described in the Disclosure Reports.  The Company is duly qualified as a foreign corporation to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a material adverse effect on the Company.

 

2.2           The Company’s subsidiaries are set forth in the Disclosure Reports or on the Company’s website (the “Subsidiaries”).  Unless the context requires otherwise, all references to the Company include the Subsidiaries.  Each Subsidiary is a corporation or a limited liability company (as applicable) duly organized, validly existing and in good standing under the laws of its state of incorporation or organization as set forth in the Disclosure Reports or on the Company’s website, with full power and authority, corporate and other, to own or lease, as the case may be, and operate its properties, whether tangible or intangible, and to conduct its business as currently conducted.  Each Subsidiary is duly qualified as a foreign corporation or limited liability company to transact business and is in good standing in each jurisdiction in which the conduct of its business or the ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a material adverse effect on the Company and the Subsidiaries taken as a whole.  Unless specified to the contrary in the Disclosure Reports, the Company owns all of the issued and outstanding shares of capital stock (or other equity or ownership interests) of each Subsidiary, such ownership is free and clear of any security interests, liens, encumbrances, claims and charges, and all of such shares have been duly authorized and validly issued, and are fully paid and nonassessable.  The Company does not presently own, directly or indirectly, an interest in any corporation, association, or other business entity, and is not a party to any joint venture, partnership, or similar arrangement, other than the Subsidiaries.

 

2.3           This Agreement has been duly authorized, executed and delivered by, and is a valid and binding agreement of, the Company enforceable in accordance with its terms, subject to applicable bankruptcy, reorganization, insolvency, moratorium and similar laws affecting creditors’ rights generally (including, without limitation, statutory or other laws regarding fraudulent preferential transfers) and equitable principles of general applicability.

 

 

 

 

 

2.4           The execution and delivery of this Agreement by the Company, and the performance by the Company of its obligations under this Agreement, will not conflict with or contravene in any material respect, cause a breach or violation of or default under, any provision of applicable law or the Articles of Incorporation or by-laws of the Company or any agreement or other instrument binding upon the Company that is material to the Company, or any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Company, and no consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for the performance by the Company of its obligations under this Agreement, except as may be required by the securities or Blue Sky laws of the various states in connection with the offer and sale of the Shares and by Federal and state securities laws with respect to the obligations of the Company under this Agreement or the listing of the Shares with NASDAQ as may be required, which have been or will be obtained, or as would not have a material adverse effect on the Company and the Subsidiaries taken as a whole.

 

2.5           The authorized capital stock of the Company conforms in all material respects to the description thereof contained in the Disclosure Reports and such description conforms in all material respects to the rights in the instruments defining the same.  The issued and outstanding capital stock of the Company is as set forth in the Disclosure Reports.  The shares of Common Stock of the Company outstanding prior to the issuance of the Shares have been duly authorized and are validly issued, fully paid and nonassessable.

 

2.6           The Shares have been duly and validly authorized and, when issued, sold and paid for by Purchaser in accordance with the terms of this Agreement, will be duly authorized, validly issued, fully paid and nonassessable, and Purchaser will not be subject to personal liability solely by reason of being such a holder and will not be subject to the preemptive or similar rights of any holders of any security of the Company.  The issuance of the Shares will not result in the right of any holder of securities of the Company to adjust the exercise, conversion or exchange price of such securities or otherwise reset the price paid for its securities.  No authorization, approval or consent of any court, governmental authority or agency is necessary in connection with the issuance by the Company of the Shares.

 

2.7           The Disclosure Reports, as of their respective filing dates, complied in all material respects with the requirements of the Exchange Act and the applicable rules and regulations of the SEC thereunder.

 

2.8           Neither the Company nor any Subsidiary is in violation of its charter or by-laws or in default in the performance of any obligation, agreement, covenant or condition contained in any indenture, loan agreement, mortgage, lease or other agreement or instrument that is material to the Company and the Subsidiaries taken as a whole to which the Company or any Subsidiary is a party or by which the Company, any Subsidiary or any of their properties is bound, except for such defaults that would not, individually or in the aggregate, have a material adverse effect on the Company and the Subsidiaries taken as a whole or as otherwise set forth in the Disclosure Reports.

 

2.9           There are no legal or governmental proceedings, orders, judgments, writs, injunctions, decrees or demands pending or, to the Company’s knowledge, threatened to which the Company or any Subsidiary is a party or to which any of the properties of the Company or any Subsidiary is subject other than (a) proceedings, orders, judgments, writs, injunctions, decrees or demands described in the Disclosure Reports, or (b) proceedings, orders, judgments, writs, injunctions, decrees or demands that would not be reasonably expected to have a material adverse effect (i) on the Company and the Subsidiaries taken as a whole or (ii) on the power or ability of the Company to perform its obligations under this Agreement or to consummate the transactions contemplated by this Agreement.

 

 

 

 

 

2.10           The Company is in compliance with applicable provisions of (a) the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder and (b) the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations promulgated thereunder, in both cases except where any incidence of noncompliance would not, individually or in the aggregate, have a material adverse effect on the Company and the Subsidiaries taken as a whole.

 

2.11           Other than the transactions contemplated by this Agreement, neither the Company nor any of its affiliates (as defined in Rule 501(b) of Regulation D, each an “Affiliate”) has directly, or through any agent, (a) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act) which is or will be integrated with the sale of the Shares in a manner that would require the registration under the Securities Act of the Shares or (b) offered, solicited offers to buy or sold the Shares by any form of general solicitation or general advertising (as those terms are used in Regulation D) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act.  No registration under the Securities Act of the Shares is required for the sale of the Shares to Purchaser under this Agreement, assuming the accuracy of Purchaser’s representations and warranties contained in this Agreement.

 

2.12           The Company and each Subsidiary owns or possesses, or has the right to use, all material patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks and trade names currently employed or required by it in connection with the business currently conducted by it as described in the Disclosure Reports, except such as the failure to so own or possess or have the right to use would not have, individually or in the aggregate, a material adverse effect on the Company and the Subsidiaries taken as a whole.  To the Company’s knowledge, there are no valid and enforceable United States patents that are infringed by the business currently conducted by the Company or any Subsidiary, or as currently proposed to be conducted by the Company or any Subsidiary, as described in the Disclosure Reports and which infringement would have a material adverse effect on the Company and the Subsidiaries taken as a whole.  The Company is not aware of any basis for a finding that the Company or ay Subsidiary does not have valid title or license rights to the patents and patent applications referenced in the Disclosure Reports as owned or licensed by the Company or any Subsidiary, and, to the Company’s knowledge, neither the Company nor any Subsidiary is subject to any judgment, order, writ, injunction or decree of any court or any Federal, state, local, foreign or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, or any arbitrator, nor has it entered into or is it a party to any contract, which restricts or impairs the use of any of the foregoing which would have a material adverse effect on the Company and the Subsidiaries taken as a whole.  Neither the Company nor any Subsidiary has received any written notice of infringement of or conflict with asserted rights of any third party with respect to the business currently conducted by it as described in the Disclosure Reports and which, if determined adversely to the Company or any Subsidiary, would have a material adverse effect on the Company and the Subsidiaries taken as a whole and the Company has no knowledge of any facts or circumstances that would serve as a reasonable basis for any such claims.

 

2.13           There are no outstanding rights, warrants, options, convertible securities or commitments to sell granted or issued by the Company entitling any person to purchase or otherwise acquire any shares of the capital stock of the Company, except as otherwise disclosed in the Disclosure Reports and except for securities granted to directors and employees of the Company in the ordinary course of business.

 

2.14           The financial statements included or incorporated by reference in the Disclosure Reports as the same may have been amended prior to the date of the Disclosure Reports, together with related schedules and notes, present fairly in all material respects the financial position, results of operations and changes in financial position of the Company and its consolidated subsidiaries on the basis stated therein at the respective dates or for the respective periods to which they apply; such statements and related schedules and notes have been prepared in accordance with generally accepted accounting principles consistently applied throughout the periods involved, except as disclosed therein.

 

 

 

 

 

2.15           There are no existing or, to the Company’s knowledge, threatened labor disputes with the employees of the Company that would have a material adverse effect on the Company and the Subsidiaries taken as a whole.

 

2.16           The Company has filed all Federal, state, local and foreign tax returns which are required to be filed through the date hereof (except where the failure to so file would not have a material adverse effect on the Company), which returns are true and correct in all material respects, or have received extensions thereof, and have paid all taxes shown on such returns and all assessments received by them to the extent that the same are material and have become due. All tax liabilities are adequately provided for on the books of the Company.  To the Company’s knowledge, there are no tax audits or investigations pending, which if adversely determined, would have a material adverse effect on the Company taken as a whole.

 

2.17           The Company is insured against such losses and risks and in such amounts as are customary in the businesses in which it is engaged, including but not limited to, insurance covering product liability and real or personal property owned or leased against theft, damage, destruction, act of vandalism and all other risks customarily insured against.  All policies of insurance and fidelity or surety bonds insuring the Company or the Company's businesses, assets, employees, officers and directors are in full force and effect.  The Company is in compliance with the terms of such policies and instruments in all material respects.  The Company has no reason to believe that it will not be able to renew their existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business.

 

2.18           Any real property and buildings held under lease by the Company is held by it under valid, subsisting and enforceable leases with such exceptions as are not material and do not materially interfere with the use made and proposed to be made of such property and buildings by the Company.

 

2.19           There is and there has been no failure on the part of the Company or, to the Company's knowledge, any of the officers or directors of the Company in their capacities as such, to comply in all material respects with the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith that are applicable to the Company and its officers and directors.

 

	
III. 

	
CONDITIONS TO PURCHASER’S OBLIGATIONS AT CLOSINGS.

 

3.1           Conditions to Purchaser’s Obligations at Each Closing.  The obligations of Purchaser to purchase Shares at any Closing are subject to the fulfillment, on or before such Closing, of each of the following conditions, unless otherwise waived by Purchaser:

 

(i)           Representations and Warranties.  The representations and warranties of the Company contained in Article II shall be true and correct in all material respects as of the date of such respective Closing.

 

(ii)          Performance.  The Company shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before such Closing.

 

 

 

 

 

(iii)         Current Disclosure Reports.  The Company shall have filed all Disclosure Reports that are required to be filed as of the date of such Closing.

 

	
IV. 

	
MISCELLANEOUS

 

4.1           Purchaser hereby covenants and agrees that, during the period beginning on each Closing Date and ending six months after such Closing Date, Purchaser will not, directly or indirectly, (a) offer, sell, offer to sell, contract to sell, hedge, pledge, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or sell (or announce any offer, sale, offer of sale, contract of sale, hedge, pledge, sale of any option or contract to purchase, purchase of any option or contract of sale, grant of any option, right or warrant to purchase or other sale or disposition), or otherwise transfer or dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future), the Shares purchased by Purchaser in such Tranche, or (b) enter into any swap or other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of any Shares, whether any such swap or transaction described in clause (a) or (b) above is to be settled by delivery of any Share.

 

4.2           Any notice, request, advice, consent or other communication given hereunder shall be given in writing and sent by overnight delivery service or registered or certified mail, return receipt requested, and addressed as follows: if to the Company, to it at 2490 E. Sunset Rd., Suite #100, Las Vegas, NV 89120, United States of America, Attention: President; and if to Purchaser, to it at the address on the records of the Company.  Notices so given shall be deemed to have been given on the earlier to occur of actual receipt or three business days after the date of such mailing, except for notices of change of address, which shall be deemed to have been given when received.

 

4.3           This Agreement shall not be changed, modified or amended except by a writing signed by the parties hereto.

 

4.4           This Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, legal representatives, successors and assigns.  This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter thereof and merges and supersedes all prior discussions, agreements and understandings of any and every nature among them.

 

4.5           References herein to a person or entity in either gender include the other gender or no gender, as appropriate.

 

4.6           This Agreement and its validity, construction and performance shall be governed in all respects by the laws of the State of Nevada.

 

4.7           After negotiations between the parties, this Agreement was prepared by Snell & Wilmer L.L.P, as legal counsel to the Company.  Snell & Wilmer L.L.P. has not acted as legal counsel to Purchaser, individually or collectively, in connection with the negotiation of or the transactions contemplated by this Agreement.  Purchaser hereby acknowledges that it has had the opportunity to review this Agreement with its own legal counsel.

 

4.8           This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Agreement may also be executed and delivered by facsimile or electronic (.pdf) signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

 

 

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year set forth below.

 

 

	  	
COMPANY:

	 
	  	  	 
	  	
LiveDeal, Inc.

	 
	  	  	 
	  	
/s/ Kevin Hall

	 
	  	
Name: Kevin Hall

	 
	  	
Title: President

	 
	  	  	 
	  	  	 
	  	
PURCHASERS:

	 
	  	  	 
	  	
Joint Corporation FeelTech Investment Unit 2

	  	
Joint Corporation FeelTech Investment Unit 3

	  	
Joint Corporation FeelTech Investment Unit 4

	  	
Joint Corporation FeelTech Investment Unit 5

	  	
Joint Corporation FeelTech Investment Unit 6

	  	
Joint Corporation FeelTech Investment Unit 7

	  	  	 
	  	
/s/ Toshiyuki Watanabe

	 
	  	
Name: Toshiyuki Watanabe

	 
	  	
Title: Representative Director

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