Document:

f8k070207ex10ii_americansur.htm

    WARRANT
      TO PURCHASE COMMON STOCK

     

    OF

    AMERICAN
      SURGICAL HOLDINGS, INC.

    

    

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED
      UNTIL
      (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “ACT”) SHALL HAVE BECOME EFFECTIVE WITH RESPECT
      THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS
      NOT
      REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS SUCH TRANSFER IN
      VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS.  THIS LEGEND SHALL
      BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT OR ANY SHARES
      OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT.

     

    ------------------------------------------

    

    THE
      COMPANY HAS ANNOUNCED A 1 FOR 2 COMBINATION OF ITS COMMON STOCK TO BE COMPLETED
      ON OR ABOUT APRIL 26, 2007.  ALL SHARE AND EXERCISE PRICE INFORMATION
      INCLUDED IN THIS WARRANT ASSUMES THE COMPLETION OF THIS
      COMBINATION.

    

    

    This
      is
      to Certify That, FOR VALUE RECEIVED, _______________________, or assigns
      (“Holder”), is entitled to purchase, subject to the
      provisions of this Warrant, from American Surgical Holdings, Inc, a Delaware
      corporation (the “Company”), [FILL IN NUMBER OF SHARES EQUAL TO 100,000 SHARES
      PER UNIT PURCHASED] fully paid, validly issued and nonassessable shares of
      common stock, par value $.001 per share, of the Company (“Common
      Stock”) at a price per share equal to $2.00 (the
“Initial Exercise Price”), which exercise may take place
      at any time or from time to time on or before 11:59 p.m., Houston, Texas time,
      on the date that is five (5) years from the date hereof, or, if such date falls
      on
      a Saturday, Sunday, or bank holiday, the next date that is not a Saturday,
      Sunday, or bank holiday (the “Expiration
      Date”).

    

    This
      Warrant comprises a portion of a Unit being sold by the Company pursuant to
      the
      Private Placement Memorandum dated May 4, 2007 (the
“Memorandum”).  Unless otherwise defined
      herein, terms defined in this Warrant shall have the meaning as set forth in
      the
      Memorandum. The Initial Exercise Price is subject to adjustment as set forth
      herein. The number of shares of Common Stock to be received upon the exercise
      of
      this Warrant and the price to be paid for each share of Common Stock may be
      adjusted from time to time as hereinafter set forth. 

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

     

     

     The
      shares of Common Stock deliverable upon such exercise, and as adjusted from
      time
      to time, are hereinafter sometimes referred to as “Warrant
      Shares” and the exercise price of a share of Common Stock in effect
      at any time and as adjusted from time to time is hereinafter sometimes referred
      to as the “Exercise Price”.

    

    (a)           EXERCISE
      OF WARRANT.

    

    (1)           This
      Warrant may be exercised in whole or in part at any time or from time to time
      during the Exercise Period; provided, however, that if such day is a day on
      which banking institutions in the State of Texas are authorized by law to close,
      then on the next succeeding day which shall not be such a day.  This
      Warrant may be exercised by presentation and surrender hereof to the Company
      at
      its principal office with the Purchase Form annexed hereto duly executed and
      accompanied by payment of the Exercise Price for the number of Warrant Shares
      specified in such form.  As soon as practicable after each such
      exercise of the warrants, but not later than three (3) business days following
      the receipt of good and available funds, the Company shall issue and deliver
      to
      the Holder a certificate or certificate for the Warrant Shares issuable upon
      such exercise, registered in the name of the Holder or its
      designee.  If this Warrant should be exercised in part only, the
      Company shall, upon surrender of this Warrant for cancellation, execute and
      deliver a new Warrant evidencing the rights of the Holder thereof to purchase
      the balance of the Warrant Shares purchasable thereunder.  Upon
      receipt by the Company of this Warrant at its office in proper form for exercise
      accompanied by payment of the Exercise Price for the number of Warrant Shares
      specified in such form (unless exercised in accordance with Section (a)(2)
      hereof in which case upon notice of such exercise), the Holder shall be deemed
      to be the holder of record of the shares of Common Stock issuable upon such
      exercise, notwithstanding that the stock transfer books of the Company shall
      then be closed or that certificates representing such shares of Common Stock
      shall not then be physically delivered to the Holder.

    

    (2)           Cashless
      Exercise.  Notwithstanding anything to the contrary contained in this
      Warrant, if the resale of the Warrant Shares by the holder is not registered
      within year from the date of the closing of the Minimum Offering pursuant to
      an
      effective registration statement under the Securities Act, this Warrant may
      be
      exercised by presentation and surrender of this Warrant to the Company at its
      principal executive offices with a written notice of the holder’s intention to
      effect a cashless exercise, including a calculation of the number of shares
      of
      Common Stock to be issued upon such exercise in accordance with the terms hereof
      (a “Cashless Exercise”).  In the event of a Cashless Exercise, in lieu
      of paying the Exercise Price in cash, the holder shall surrender this Warrant
      for that number of shares of Common Stock determined by multiplying the number
      of Warrant Shares to which it would otherwise be entitled by a fraction, the
      numerator of which shall be the difference between the then current market
      price
      (calculated in accordance with Section (c) below) per share of the Common Stock
      and the Exercise Price,  and the denominator of which shall be the
      then current market price (calculated in accordance with Section (c) below)
      per
      share of Common Stock.

    

    (b)           REDEMPTION
      OF WARRANT.

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
 

    (1)           This
      Warrant may be redeemed, at the option of the Company, at any time prior to
      the
      Expiration Date, upon the notice referred to in Section (b)(2), at the price
      of
      $.001 per Warrant Share (“Redemption Price”), provided
      that the last sales price of the Common Stock has been at least $9.00 per share,
      on each of ten (10) consecutive trading days ending on the third business day
      prior to the date on which notice of redemption is
      given  (“Measurement Period”). Notwithstanding
      the foregoing, the Company may not exercise its redemption rights unless during
      the Measurement Period and from the end of the Measurement Period through the
      redemption date, the Company has an effective registration statement with a
      current prospectus on file with the SEC pursuant to which the Warrant Shares
      may
      be sold.

    

    (2)           In
      the event the Company shall elect to redeem the Warrant, the Company shall
      fix a
      date for the redemption. Notice of redemption shall be mailed by first class
      mail, postage prepaid, by the Company not less than 30 days prior to the date
      fixed for redemption to the Holder at their last addresses as they shall appear
      on the registration books.

    

    (3)           The
      Warrant may be exercised in accordance with Section (a) at any time after notice
      of redemption shall have been given by the Company pursuant to Section (b)(2)
      hereof and prior to the time and date fixed for redemption. On and after the
      redemption date, the Holder shall have no further rights except to receive,
      upon
      surrender of the Warrant, the Redemption Price.

    

    (c)           FRACTIONAL
      SHARES.  No fractional shares or script representing fractional shares
      shall be issued upon the exercise of this Warrant.  With respect to
      any fraction of a share called for upon any exercise hereof, the Company shall
      pay to the Holder an amount in cash equal to such fraction multiplied by the
      current market value of a share, determined as follows:

    

    (1)           If
      the Common Stock is listed on a national securities exchange or admitted to
      unlisted trading privileges on such exchange or listed for trading on the Nasdaq
      Global Select Market, the current market value shall be the last reported sale
      price of the Common Stock on such exchange or market on the last business day
      prior to the date of exercise of this Warrant or if no such sale is made on
      such
      day, the average of the closing bid and asked prices for such day on such
      exchange or market; or

    

    (2)           If
      the Common Stock is not so listed or admitted to unlisted trading privileges,
      but is traded on the Nasdaq Capital Market, the current market value shall
      be
      the average of the closing bid and asked prices for such day on such market
      and
      if the Common Stock is not so traded, the current market value shall be the
      mean
      of the last reported bid and asked prices reported by the NASD Electronic
      Bulletin Board on the last business day prior to the date of the exercise of
      this Warrant; or

    

    (3)           If
      the Common Stock is not so listed or admitted to unlisted trading privileges
      and
      bid and asked prices are not so reported, the current market value shall be
      an
      amount, not less than book value thereof as at the end of the most recent fiscal
      year of the Company ending prior to the date of the exercise of the Warrant,
      determined in such reasonable manner as may be prescribed by the Board of
      Directors of the Company.

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
 

    (d)           EXCHANGE,
      TRANSFER, ASSIGNMENT OR LOSS OF WARRANT.  This Warrant is
      exchangeable, without expense, at the option of the Holder, upon presentation
      and surrender hereof to the Company or at the office of its stock transfer
      agent, if any, for other warrants of different denominations entitling the
      holder thereof to purchase in the aggregate the same number of shares of Common
      Stock purchasable hereunder.   Upon surrender of this Warrant to
      the Company at its principal office or at the office of its stock transfer
      agent, if any, with the Assignment Form annexed hereto duly executed and funds
      sufficient to pay any transfer tax, the Company shall, without charge, execute
      and deliver a new Warrant in the name of the assignee named in such instrument
      of assignment and this Warrant shall promptly be cancelled.  This
      Warrant may be divided or combined with other warrants which carry the same
      rights upon presentation hereof at the principal office of the Company or at
      the
      office of its stock transfer agent, if any, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued
      and signed by the Holder hereof.  The term “Warrant” as used herein
      includes any Warrants into which this Warrant may be divided or
      exchanged.  Upon receipt by the Company of evidence satisfactory to it
      of the loss, theft, destruction or mutilation of this Warrant, and (in the
      case
      of loss, theft or destruction) of reasonably satisfactory indemnification,
      and
      upon surrender and cancellation of this Warrant, if mutilated, the Company
      will
      execute and deliver a new Warrant of like tenor and date.  Any such
      new Warrant executed and delivered shall constitute an additional contractual
      obligation on the part of the Company, whether or not this Warrant so lost,
      stolen, destroyed, or mutilated shall be at any time enforceable by
      anyone.

    

    (e)           RIGHTS
      OF THE HOLDER.  The Holder shall not, by virtue hereof, be entitled to
      any rights of a shareholder in the Company, either at law or equity, and the
      rights of the Holder are limited to those expressed in the Warrant and are
      not
      enforceable against the Company except to the extent set forth
      herein.

    

    (f)           ANTI-DILUTION
      PROVISIONS.  Subject to the provisions of Section l hereof, the
      Exercise Price in effect at any time and the number and kind of securities
      purchasable upon the exercise of the Warrants shall be subject to adjustment
      from time to time upon the happening of certain events as follows:

    

    (1)           In
      case the Company shall hereafter (i) declare a dividend or make a
      distribution on its outstanding shares of Common Stock in shares of Common
      Stock, (ii) subdivide or reclassify its outstanding shares of Common Stock
      into a greater number of shares, or (iii) combine or reclassify its
      outstanding shares of Common Stock into a smaller number of shares, the Exercise
      Price in effect at the time of the record date for such dividend or distribution
      or of the effective date of such subdivision, combination or reclassification
      shall be adjusted so that it shall equal the price determined by multiplying
      the
      Exercise Price by a fraction, the denominator of which shall be the number
      of
      shares of Common Stock outstanding after giving effect to such action, and
      the
      numerator of which shall be the number of shares of Common Stock outstanding
      immediately prior to such action with an appropriate adjustment in the number
      of
      shares purchasable hereunder. Such adjustment shall be made successively
      whenever any event listed above shall occur.

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
 

    (2)           Subject
      to the provisions of Subsection (4) below, in case the Company shall fix a
      record date for the issuance of rights or warrants to all holders of its Common
      Stock entitling them to subscribe for or purchase shares of Common Stock (or
      securities convertible into Common Stock) at a price (the “Subscription Price”)
      (or having a conversion price per share) less than the Exercise Price on such
      record date, the Exercise Price shall be adjusted so that the same shall equal
      the Subscription Price.

    

    (3)           In
      case the Company shall hereafter distribute to the holders of its Common Stock
      evidences of its indebtedness or assets (excluding cash dividends or
      distributions and dividends or distributions referred to in Subsection (1)
      above) or subscription rights or warrants (excluding those referred to in
      Subsection (2) above), then in each such case the Exercise Price in effect
      thereafter shall be determined by multiplying the Exercise Price in effect
      immediately prior thereto by a fraction, the numerator of which shall be the
      total number of shares of Common Stock outstanding multiplied by the current
      market price per share of Common Stock (as defined in Subsection (5)
      above), less the fair market value (as determined by a third-party valuation)
      of
      said assets or evidences of indebtedness so distributed or of such rights or
      warrants, and the denominator of which shall be the total number of shares
      of
      Common Stock outstanding multiplied by such current market price per share
      of
      Common Stock.  Such adjustment shall be made successively whenever
      such a record date is fixed.  Such adjustment shall be made whenever
      any such distribution is made and shall become effective immediately after
      the
      record date for the determination of shareholders entitled to receive such
      distribution.

    

    (4)           Whenever
      the Exercise Price payable upon exercise of each Warrant is adjusted pursuant
      to
      Subsections (1), (2), or (3) above, the number of Shares purchasable upon
      exercise of this Warrant shall simultaneously be adjusted by multiplying the
      number of Shares initially issuable upon exercise of this Warrant by the
      Exercise Price in effect on the date hereof and dividing the product so obtained
      by the Exercise Price, as adjusted.

    

    (5)           For
      the purpose of any computation under Subsection (3) above, the current
      market price per share of Common Stock at any date shall be determined in the
      manner set forth in Section (c) hereof except that the current market price
      per
      share shall be deemed to be the higher of (i) the average of the prices for
      30 consecutive business days before such date or (ii) the price on the
      business day immediately preceding such date.

    

    (6)           No
      adjustment in the Exercise Price shall be required unless such adjustment would
      require an increase or decrease of at least five cents ($0.05) in such price;
      provided, however, that any adjustments which by reason of this
      Subsection (6) are not required to be made shall be carried forward and
      taken into account in any subsequent adjustment required to be made hereunder.
      All calculations under this Section (f) shall be made to the nearest cent
      or to the nearest one-hundredth of a share, as the case may
      be.  Anything in this Section (f) to the contrary
      notwithstanding, the Company shall be entitled, but shall not be required,
      to
      make such changes in the Exercise Price, in addition to those required by this
      Section (f), as it shall determine, in its sole discretion, to be advisable
      in order that any dividend or distribution in shares of Common Stock, or any
      subdivision, reclassification or combination of Common Stock, hereafter made
      by
      the Company shall not result in any Federal Income tax liability to the holders
      of Common Stock or securities convertible into Common Stock (including
      Warrants); provided such changes will not adversely effect the
      Holder.

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    (7)           Whenever
      the Exercise Price is adjusted, as herein provided, the Company shall promptly
      but no later than 10 days after any request for such an adjustment by the
      Holder, cause a notice setting forth the adjusted Exercise Price and adjusted
      number of Shares issuable upon exercise of each Warrant, and, if requested,
      information describing the transactions giving rise to such adjustments, to
      be
      mailed to the Holders at their last addresses appearing in the Warrant Register,
      and shall cause a certified copy thereof to be mailed to its transfer agent,
      if
      any.  The Company may retain a firm of independent certified public
      accountants selected by the Board of Directors (who may be the regular
      accountants employed by the Company) to make any computation required by this
      Section (f), and a certificate signed by such firm shall be conclusive
      evidence of the correctness of such adjustment.

    

    (8)           In
      the event that at any time, as a result of an adjustment made pursuant to
      Subsection (1) above, the Holder of this Warrant thereafter shall become
      entitled to receive any shares of the Company, other than Common Stock,
      thereafter the number of such other shares so receivable upon exercise of this
      Warrant shall be subject to adjustment from time to time in a manner and on
      terms as nearly equivalent as practicable to the provisions with respect to
      the
      Common Stock contained in this Section (f).

    

    (9)           Irrespective
      of any adjustments in the Exercise Price or the number or kind of shares
      purchasable upon exercise of this Warrant, Warrants theretofore or thereafter
      issued may continue to express the same price and number and kind of shares
      as
      are stated in the similar Warrants initially issuable pursuant to this
      Agreement.

    

    (g)           OFFICER'S
      CERTIFICATE.  Whenever the Exercise Price shall be adjusted as
      required by the provisions of the foregoing Section, the Company shall forthwith
      file in the custody of its Secretary or an Assistant Secretary at its principal
      office and with its stock transfer agent, if any, an officer's certificate
      showing the adjusted Exercise Price determined as herein provided, setting
      forth
      in reasonable detail the facts requiring such adjustment, including a statement
      of the number of additional shares of Common Stock, if any, and such other
      facts
      as shall be necessary to show the reason for and the manner of computing such
      adjustment.  Each such officer's certificate shall be made available
      at all reasonable times for inspection by the holder or any holder of a Warrant
      executed and delivered pursuant to Section (a) and the Company shall,
      forthwith after each such adjustment, mail a copy by certified mail of such
      certificate to the Holder or any such holder.

    

    (h)           NOTICES
      TO WARRANT HOLDERS.  So long as this Warrant shall be outstanding,
      (i) if the Company shall pay any dividend or make any distribution upon the
      Common Stock or (ii) if the Company shall offer to the holders of Common
      Stock for subscription or purchase by them any share of any class or any other
      rights or (iii) if any capital reorganization of the Company,
      reclassification of the capital stock of the Company, consolidation or merger
      of
      the Company with or into another corporation, sale, lease or transfer of all
      or
      substantially all of the property and assets of the Company to another
      corporation, or voluntary or involuntary dissolution, liquidation or winding
      up
      of the Company shall be effected, then in any such case, the Company shall
      cause
      to be mailed by certified mail to the Holder, at least fifteen days prior the
      date specified in (x) or (y) below, as the case may be, a notice
      containing a brief description of the proposed action and stating the date
      on
      which (x) a record is to be taken for the purpose of such dividend,
      distribution or rights, or (y) such reclassification, reorganization,
      consolidation, merger, conveyance, lease, dissolution, liquidation or winding
      up
      is to take place and the date, if any is to be fixed, as of which the holders
      of
      Common Stock or other securities shall receive cash or other property
      deliverable upon such reclassification, reorganization, consolidation, merger,
      conveyance, dissolution, liquidation or winding up.

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
 

    (i)           RECLASSIFICATION,
      REORGANIZATION OR MERGER.  In case of any reclassification, capital
      reorganization or other change of outstanding shares of Common Stock of the
      Company, or in case of any consolidation or merger of the Company with or into
      another corporation (other than a merger with a subsidiary in which merger
      the
      Company is the continuing corporation and which does not result in any
      reclassification, capital reorganization or other change of outstanding shares
      of Common Stock of the class issuable upon exercise of this Warrant) or in
      case
      of any sale, lease or conveyance to another corporation of all or substantially
      all of the property of the Company, the Company shall, as a condition precedent
      to such transaction, cause effective provisions to be made so that the Holder
      shall have the right thereafter by exercising this Warrant at any time prior
      to
      the expiration of the Warrant, to purchase the kind and amount of shares of
      stock and other securities and property receivable upon such reclassification,
      capital reorganization and other change, consolidation, merger, sale or
      conveyance by a holder of the number of shares of Common Stock which might
      have
      been purchased upon exercise of this Warrant immediately prior to such
      reclassification, change, consolidation, merger, sale or
      conveyance.  Any such provision shall include provision for
      adjustments which shall be as nearly equivalent as may be practicable to the
      adjustments provided for in this Warrant.  The foregoing provisions of
      this Section (i) shall similarly apply to successive reclassifications,
      capital reorganizations and changes of shares of Common Stock and to successive
      consolidations, mergers, sales or conveyances.  In the event that in
      connection with any such capital reorganization or reclassification,
      consolidation, merger, sale or conveyance, additional shares of Common Stock
      shall be issued in exchange, conversion, substitution or payment, in whole
      or in
      part, for a security of the Company other than Common Stock, any such issue
      shall be treated as an issue of Common Stock covered by the provisions of
      Subsection (1) of Section (f) hereof.

    

    (j)           REGISTRATION
      RIGHTS.

    

    (1)           Commencing
      on the one-year anniversary of the closing of the Minimum Offering (as defined
      in the Memorandum), the Company hereby agrees with the holders of the Warrants
      and the Warrant Shares or their transferees (collectively, the
“Holders”) that upon notice by either Dawson James
      Securities, Inc. or Holders beneficially owning at least 50% of the aggregate
      of
      the Warrant Shares, it will, within three weeks of such notice prepare and
      file
      with the Securities and Exchange Commission (“SEC”) a
      registration statement under the Act covering the resale of the Warrant Shares
      and use its best efforts to cause such registration statement to become
      effective as soon as practicable thereafter.  In addition, if prior to
      the Expiration Date, the Company shall determine to proceed with the preparation
      and filing of a registration statement under the Act in connection with the
      proposed offer and sale of any of its securities by it or any of its security
      holders (other than a registration statement on Form S-4, S-8 or other
      limited purpose form), then the Company will give written notice of its
      determination to all record holders of the Warrants and Warrant
      Shares.  Upon the written request from any Holder, the Company will,
      except as herein provided, cause all such Warrant Shares to be included in
      such
      registration statement, all to the extent requisite to permit the sale or other
      disposition by the prospective seller or sellers of the Warrant Shares to be
      so
      registered; provided, further, that nothing herein shall prevent the Company
      from, at any time, abandoning or delaying any registration.  If any
      registration pursuant to this Section j(1) shall be underwritten in whole
      or in part, the Company may require that the Warrant Shares requested for
      inclusion by the Holders be included in the underwriting on the same terms
      and
      conditions as the securities otherwise being sold through the
      underwriters.

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
 

    (2)           The
      Company will, until such time as the Warrant Shares may be sold under Rule
      144(k):

    

    (A)           prepare
      and file with the SEC such amendments to such registration statement and
      supplements to the prospectus contained therein as may be necessary to keep
      such
      registration statement effective;

    

    (B)           furnish
      to the Holders participating in such registration and to the underwriters of
      the
      securities being registered such reasonable number of copies of the registration
      statement, preliminary prospectus, final prospectus and such other documents
      as
      such underwriters may reasonably request in order to facilitate the public
      offering of such securities;

    

    (C)           use
      its best efforts to register or qualify the securities covered by such
      registration statement under such state securities or blue sky laws of such
      jurisdictions as the Holders may reasonably request in writing within twenty
      (20) days following the original filing of such registration statement, except
      that the Company shall not for any purpose be required to qualify to do business
      as a foreign corporation in any jurisdiction wherein it is not so qualified
      or
      subject itself to taxation in any such jurisdiction;

    

    (D)           notify
      the Holders, promptly after it shall receive notice thereof, of the time when
      such registration statement has become effective or a supplement to any
      prospectus forming a part of such registration statement has been
      filed;

    

    (E)           notify
      the Holders promptly of any request by the SEC for the amending or supplementing
      of such registration statement or prospectus or for additional
      information;

    

    (F)           prepare
      and file with the SEC, promptly upon the request of any Holders, any amendments
      or supplements to such registration statement or prospectus which, in the
      opinion of counsel for such Holders (and concurred in by counsel for the
      Company), is required under the Act or the rules and regulations thereunder
      in
      connection with the distribution of Common Stock by such Holders;

    

    (G)           prepare
      and promptly file with the SEC and promptly notify such Holders of the filing
      of
      such amendment or supplement to such registration statement or prospectus as
      may
      be necessary to correct any statements or omissions if, at the time when a
      prospectus relating to such securities is required to be delivered under the
      Act, any event shall have occurred as the result of which any such prospectus
      or
      any other prospectus as then in effect would include an untrue statement of
      a
      material fact or omit to state any material fact necessary to make the
      statements therein, in the light of the circumstances in which they were made,
      not misleading; and

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
 

    (H)           advise
      the Holders, promptly after it shall receive notice or obtain knowledge thereof,
      of the issuance of any stop order by the SEC suspending the effectiveness of
      such registration statement or the initiation or threatening of any proceeding
      for that purpose and promptly use its best efforts to prevent the issuance
      of
      any stop order or to obtain its withdrawal if such stop order should be
      issued.

    

    The
      Company may require each Holder of Warrant Shares as to which any registration
      is being effected to furnish to the Company such information regarding the
      distribution of such Warrant Shares as the Company may from time to time
      reasonably request in writing.

    

    (3)           All
      fees, costs and expenses of and incidental to such registration, inclusion
      and
      public offering in connection therewith shall be borne by the Company, provided,
      however, that the Holders shall bear their pro rata share of the underwriting
      discount and commissions and transfer taxes. The fees, costs and expenses of
      registration to be borne by the Company as provided above shall include, without
      limitation, all registration, filing, and NASD fees, printing expenses, fees
      and
      disbursements of counsel and accountants for the Company, and all legal fees
      and
      disbursements and other expenses of complying with state securities or blue
      sky
      laws of any jurisdictions in which the securities to be offered are to be
      registered and qualified (except as provided above), and, in the case of a
      registration, fees of one (1) counsel for the Holders of the Warrant
      Shares.

    

    (4)           The
      Company will indemnify and hold harmless each Holder of Warrant Shares which
      are
      included in a registration statement pursuant to the provisions of
      Section (j)(1) hereof, its directors and officers, and any underwriter (as
      defined in the Act) for such Holder and each person, if any, who controls such
      Holder or such underwriter within the meaning of the Act, from and against,
      and
      will reimburse such Holder and each such underwriter and controlling person
      with
      respect to, any and all loss, damage, liability, cost and expense to which
      such
      Holder or any such underwriter or controlling person may become subject under
      the Act or otherwise, insofar as such losses, damages, liabilities, costs or
      expenses are caused by any untrue statement or alleged untrue statement of
      any
      material fact contained in such registration statement, any prospectus contained
      therein or any amendment or supplement thereto, or arise out of or are based
      upon the omission or alleged omission to state therein a material fact required
      to be stated therein or necessary to make the statements therein, in light
      of
      the circumstances in which they were made, not misleading; provided, however,
      that the Company will not be liable in any such case to the extent that any
      such
      loss, damage, liability, cost or expenses arises out of or is based upon an
      untrue statement or alleged untrue statement or omission or alleged omission
      so
      made in conformity with information furnished by such Holder, such underwriter
      or such controlling person in writing specifically for use in the preparation
      thereof.

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
 

    (5)           Each
      Holder of Warrant Shares included in a registration pursuant to the provisions
      of Section (j)(1) hereof will indemnify and hold harmless the Company, its
      directors and officers, any controlling person and any underwriter from and
      against, and will reimburse the Company, its directors and officers, any
      controlling person and any underwriter with respect to, any and all loss,
      damage, liability, cost or expense to which the Company or any controlling
      person and/or any underwriter may become subject under the Act or otherwise,
      insofar as such losses, damages, liabilities, costs or expenses are caused
      by
      any untrue statement or alleged untrue statement of any material fact contained
      in such registration statement, any prospectus contained therein or any
      amendment or supplement thereto, or arise out of or are based upon the omission
      or alleged omission to state therein a material fact required to be stated
      therein or necessary to make the statements therein, in light of the
      circumstances in which they were made, not misleading, in each case to the
      extent, but only to the extent, that such untrue statement or alleged untrue
      statement or omission or alleged omission was so made in reliance upon and
      in
      strict conformity with written information furnished by or on behalf of such
      Holder specifically for use in the preparation thereof.

    

    (6)           Promptly
      after receipt by an indemnified party pursuant to the provisions of
      Sections (j)(4) or (5) of notice of the commencement of any action
      involving the subject matter of the foregoing indemnity provisions such
      indemnified party will, if a claim thereof is to be made against the
      indemnifying party pursuant to the provisions of said Sections (j)(4) or
      (5), promptly notify the indemnifying party of the commencement thereof; but
      the
      omission to so notify the indemnifying party will not relieve it from any
      liability which it may have to any indemnified party otherwise than
      hereunder.  In case such action is brought against any indemnified
      party and it notifies the indemnifying party of the commencement thereof, the
      indemnifying party shall have the right to participate in, and, to the extent
      that it may wish, jointly with any other indemnifying party similarly notified,
      to assume the defense thereof, with counsel satisfactory to such indemnified
      party, provided, however, if counsel for the indemnifying party concludes that
      a
      single counsel cannot under applicable legal and ethical considerations,
      represent both the indemnifying party and the indemnified party, the indemnified
      party or parties have the right to select separate counsel to participate in
      the
      defense of such action on behalf of such indemnified party or
      parties.  After notice from the indemnifying party to such indemnified
      party of its election so to assume the defense thereof, the indemnifying party
      will not be liable to such indemnified party pursuant to the provisions of
      said
      Sections (j)(4) or (5) for any legal or other expense subsequently incurred
      by such indemnified party in connection with the defense thereof other than
      reasonable costs of investigation, unless (i) the indemnified party shall
      have employed counsel in accordance with the provisions of the preceding
      sentence, (ii) the indemnifying party shall not have employed counsel
      satisfactory to the indemnified party to represent the indemnified party within
      a reasonable time after the notice of the commencement of the action or
      (iii) the indemnifying party has authorized the employment of counsel for
      the indemnified party at the expense of the indemnifying party.

    

    (7)           If
      the Company fails to carry out its obligations under this Section (j), the
      Holder shall be entitled to tender this warrant for a sum equal to the number
      of
      Warrant Shares multiplied by the current market thereof less the Exercise Price
      thereof and a person who has exercised this Warrant shall be entitled to tender
      the Common Stock thereby purchased for the current market value, and in each
      case to be paid therefor in 10 business days thereafter.

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
 

    (k)           NONCIRCUMVENTION;
      RESERVATION OF SHARES. The Company hereby covenants and agrees that the Company
      will not, by amendment of its Articles of Incorporation, Bylaws or through
      any
      reorganization, transfer of assets, consolidation, merger, scheme of
      arrangement, dissolution, issue or sale of securities, or any other voluntary
      action, avoid or seek to avoid the observance or performance of any of the
      terms
      of this Warrant, and will at all times in good faith carry out all the
      provisions of this Warrant and take all action as may be required to protect
      the
      rights of the Holder.  Without limiting the generality of the
      foregoing, the Company (i) shall not increase the par value of any Common Stock
      receivable upon the exercise of this Warrant above the Exercise Price then
      in
      effect, (ii) shall take all such actions as may be necessary or appropriate
      in
      order that the Company may validly and legally issue fully paid and
      nonassessable Common Stock upon the exercise of this Warrant, and (iii) shall,
      so long as any of this Warrant is outstanding, take all action necessary to
      reserve and keep available out of its authorized and unissued Common Stock,
      solely for the purpose of effecting the exercise of this Warrant, the maximum
      number of Common Stock as shall from time to time be necessary to effect the
      exercise of this Warrant then outstanding.

    

    AMERICAN
      SURGICAL HOLDINGS, INC.

    

    

    By:                                                                

            Name:  [_____]

            Title:    [_____]

    

    Dated:  [_____],
      2007

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

     

     

    PURCHASE
      FORM

    

    

                                                    Dated

    

    The
      undersigned hereby irrevocably elects to exercise the within Warrant to the
      extent of purchasing   shares of Common Stock and hereby makes
      payment of   in payment of the actual exercise price thereof _____
      (check) or elects a cashless exercise with respect thereto ______ (check) as
      to
      a total of ___________ shares.

    

    ___________________________________

    

    INSTRUCTIONS
      FOR REGISTRATION OF STOCK

    

    Name

    (Please
      typewrite or print in block letters)

    

    

    Address
      

    

    

    Signature

    

    

    ASSIGNMENT
      FORM

    

    FOR
      VALUE
      RECEIVED,   hereby sells, assigns and transfers unto

    

    

    Name

    (Please
      typewrite or print in block letters)

    

    

    Address

    

    the
      right
      to purchase Common Stock represented by this Warrant to the extent of
  shares as to which such right is exercisable and does hereby
      irrevocably constitute and appoint   Attorney, to transfer the same
      on the books of the Company with full power of substitution in the
      premises.

    

    Date
      

    

    Signature

     

     

     

    12ex10_1.htm

     

    Exhibit
      10.1

     

     

    
 PLAN
      OF
      EXCHANGE

    
      BY
        WHICH

    

     

     

     

     

    ENVIROSAFE
      CORP.

    (a
      Delaware corporation)

    SHALL
      ACQUIRE

    SI
      CHUAN DA ZHU FU DA ZHU MA

    FANG
      ZHI YOU XIAN GONG SI.

    (a  corporation
      organized under the laws of the Peoples’ republic of
      China)

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    
      
        	
                I.
                  RECITALS

              	
                 3

              
	 	 
	
                1.
                  The Parties to this Plan of Exchange:

              	
                4

              
	
                (1.1)
                  Envirosafe Corp

              	
                4

              
	
                (1.2)
                  Si Chuan Da Zhu Fu Da Zhu Ma Fang Zhi You Xian Gong Si

              	
                4

              
	
                (1.3)
                  Maurice Katz

              	
                4

              
	 	 
	
                2.
                  The Capital of the Parties:

              	
                4

              
	
                (2.1)
                  The Capital of EVSF

              	
                4

              
	
                (2.2)
                  The Capital of Da Zhu Fu Da

              	
                4

              
	 	 
	
                3.
                  Transaction Descriptive Summary:

              	
                4

              
	 	 
	
                4.
                  SEC compliance.

              	
                4

              
	 	 
	
                5.
                  Delaware compliance.

              	
                4

              
	 	 
	
                6.
                  Audited Financial Statements.

              	
                4

              
	 	 
	
                II.
                  PLAN OF REOGANIZATION

              	
                5

              
	 	 
	
                1.
                  Conditions Precedent to Closing.

              	
                5

              
	
                (1.1)
                  Shareholder Approval.

              	
                5

              
	
                (1.2)
                  Board of Directors.

              	
                5

              
	
                (1.3)
                  Due Diligence Investigation.

              	
                5

              
	
                (1.4)
                  The rights of dissenting shareholders

              	
                5

              
	
                (1.5)
                  All of the terms, covenants and conditions

              	
                5

              
	
                (1.6)
                  The representations and warranties

              	
                5

              
	
                (1.7)
                  Certificate of majority shareholders of EVSF

              	
                5

              
	
                   (1.8)
                  Absence of EVSF Liabilities

              	
                6

              
	
                   (1.9)
                  Delivery of Audited Financial Statements

              	
                6

              
	 	 
	
                2.
                  Conditions Concurrent and Subsequent to Closing.

              	
                6

              
	
                (2.1)
                  Delivery of Registered Capital of Da Zhu Fu Da.

              	
                6

              
	
                   (2.2)
                  Acquisition Share Issuance and Purchase of Common Stock

              	
                6

              
	
                   (2.3)
                  Appointment of Da Zhu Fu Da Nominees

              	
                6

              
	 	 
	
                3.
                  Plan of Acquisition

              	
                7

              
	
                (3.1)
                  Exchange and Reorganization:

              	
                7

              
	
                (3.2)
                  Delivery of Common Stock:

              	
                7

              
	
                (3.3)
                  Issuance of Common Stock:

              	
                7

              
	
                (3.4)
                  Closing/Effective Date:

              	
                7

              
	
                (3.5)
                  Surviving Corporations

              	
                7

              
	
                (3.6)
                  Rights of Dissenting Shareholders:

              	
                7

              
	
                (3.7)
                  Service of Process and Address:

              	
                7

              
	
                (3.8)
                  Surviving Articles of Incorporation:

              	
                7

              
	
                (3.9)
                  Surviving By-Laws:

              	
                7

              
	
                (3.10)
                  Further Assurance, Good Faith and Fair Dealing:

              	
                7

              
	
                (3.11)
                  General Mutual Representations and Warranties.

              	
                8

              
	
                (3.11.1)
                  Organization and Qualification.

              	
                8

              
	
                (3.11.2)
                  Corporate Authority.

              	
                8

              
	
                (3.11.3)
                  Ownership of Assets and Property.

              	
                8

              
	
                (3.11.4)
                  Absence of Certain Changes or Events.

              	
                8

              
	
                (3.11.5)
                  Absence of Undisclosed Liabilities.

              	
                9

              
	
                (3.11.6)
                  Legal Compliance.

              	
                9

              
	
                (3.11.7)
                  Legal Proceedings.

              	
                9

              
	
                (3.11.8)
                  No Breach of Other Agreements.

              	
                9

              
	
                (3.11.9)
                  Capital Stock.

              	
                9

              
	
                (3.11.10)
                  SEC Reports, Liabilities and Taxes.

              	
                10

              
	
                (3.11.11)
                  Brokers' or Finder's Fees.

              	
                10

              
	
                (3.12)
                  Miscellaneous Provisions

              	
                10

              
	
                (3.12.1)

              	
                10

              
	
                (3.12.2)

              	
                10

              
	
                (3.12.3)

              	
                11

              
	
                (3.12.4)

              	
                11

              
	
                (3.12.5)

              	
                11

              
	
                (3.12.6)

              	
                11

              
	 	
                 

              
	
                4.
                  Termination

              	
                12

              
	 	
                 

              
	
                5.
                  Closing

              	
                12

              
	 	
                 

              
	
                6.
                  Merger Clause

              	
                12

              

      

    

     

     

    The
      Remainder of this Page is Intentionally left Blank format

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
PLAN
      OF EXCHANGE

    BY
      WHICH

    Envirosafe
      Corp.

    (a
      Delaware  corporation)

    SHALL
      ACQUIRE

    Si
      Chuan Da Zhu Fu Da Zhu Ma

    Fang
      Zhi You Xian Gong Si

     

    (a
      corporation organized under the laws of the Peoples’ Republic of
      China)

    

        This
      Plan of Exchange
(the
“Agreement”
or
“Plan
      of Exchange”)
is made and dated as of this 18th day of June, 2007, and is intended
      to
      supersede all previous oral or written agreements, if any, between the parties,
      with respect to its subject matter.  Notwithstanding the foregoing, it
      is subject to, and shall be interpreted together with that certain Letter of
      Intent, dated May 18, 2007 ("LOI"), and the Escrow Agreement, dated May 18,
      2007
      ("Escrow Agreement"). This Agreement anticipates that extensive due diligence
      shall have been performed by both parties. All due diligence shall have been
      completed by the Parties no later than June 18, 2007.

     

    I.
      RECITALS

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    1.
      The Parties (collectively referred to as the "Parties") to this
      Agreement:

    

    (1.1)
      Envirosafe Corp. ("EVSF"), a Delaware corporation.

    

    (1.2)
      Si Chuan Da Zhu Fu Da Zhu Ma Fang Zhi You Xian Gong Si., a corporation
      organized under the laws of the Peoples’ Republic of China (“Da Zhu Fu
      Da”).

    

    (1.3)
      Maurice Katz ("Mr. Katz"), Authorized Representative
      of EVSF.

    

    2.
      The Capital of the Parties:

    

    (2.1)
      The Capital of EVSF consists of 500,000,000 authorized shares of Common
      Stock, par value $.0001, of which 1,141,250 shares are issued and outstanding,
      and 10,000,000 authorized shares of Preferred Stock, par value $.0001, of which
      no shares are issued and outstanding.

    

    (2.2)
      The Capital of Da Zhu Fu Da consists of RMB 5,000,000 in registered
      capital (US$1=7.67RMB), which for the purposes of this Agreement, is referred
      to
      as “common stock” or “capital stock”.

    

    3.
      Transaction Descriptive Summary: EVSF desires to acquire Da Zhu Fu Da
      and the shareholders of Da Zhu Fu Da (the “Da Zhu Fu Da Shareholders”) desire
      that Da Zhu Fu Da be acquired by EVSF.  EVSF would acquire 100% of the
      capital stock of Da Zhu Fu Da in exchange for the issuance by EVSF of 30,000,000
      new shares of Common Stock to Da Zhu Fu Da Shareholders or other natural persons
      designated by them. In addition, Da Zhu Fu Da and/or the Da Zhu Fu Da
      Shareholders would acquire 632,250 shares of Common Stock from the shareholders
      of EVSF for a payment by Da Zhu Fu Da and/or the Da Zhu Fu Da Shareholders
      of an
      amount equal to $550,000. The distribution of payments will be made by Da Zhu
      Fu
      Da to EVSF and the Selling Shareholders in accordance with the Escrow Agreement.
      The above purchase and issuance will give Da Zhu Fu Da Shareholders or other
      natural persons designated by them  a 'controlling interest' in EVSF
      representing approximately 98.4% of the issued and outstanding common shares.
      Da
      Zhu Fu Da will not reverse split these shares for one year but shall be allowed
      to use them towards a shareholder vote. The transaction will not immediately
      close but shall be conditioned upon (1) EVSF and the EVSF Shareholders’
settlement of all liabilities of EVSF (2) the deposit of 632,250 shares of
      Common Stock into the account of Escrow Agent in exchange for a payment of
      $550,000, and (3) issuance of the 30,000,000 new shares of Common Stock and
      deposit of the same into the account of Escrow Agent. The parties intend that
      the transactions qualify and meet the Internal Revenue Code requirements for
      a
      tax free reorganization, in which there is no corporate gain or loss recognized
      by the parties, with reference to Internal Revenue Code (IRC) sections 354
      and
      368.

    

    4.
      SEC compliance. EVSF shall cause the filing with the Commission of a
      Current Report on Form 8-K, within four business days of the date hereof,
      reporting the execution of this Agreement, and, after the closing, the filing
      and mailing to its shareholders of an Information Statement on Schedule 14F-1
      pursuant to Rule 14f-1 promulgated under the Securities Exchange Act of 1934,
      as
      amended, which is required to be filed and mailed ten days before a change
      in
      the majority of the Board of Directors of EVSF other than at a shareholders’
meeting. The Parties contemplate that any change in the majority of the Board
      of
      Directors will occur after the closing.

    

    5.
      Delaware compliance.  Articles
      of Exchange are required to be filed by Delaware law as the last act to
      make the plan of exchange final and effective under
      Delaware law.

    

    6.
      Audited Financial Statements. Certain filings under the Securities
      Exchange Act of 1934, such as a Current Report on Form 8-K, require audited
      financial statements of Da Zhu Fu Da to be filed with the SEC within 71 days
      of
      the initial Form 8-K filing with respect to this transaction.  In
      connection with EVSF’s filing of a Current Report on Form 8-K/A within 71 days
      after the closing, as it relates to this transaction, audited financial
      statements of Da Zhu Fu Da will be filed with the SEC in accordance with Form
      8-K.  Da Zhu Fu Da has agreed to provide audited financial statements
      prepared in conformity with U.S. GAAP to EVSF within 71 days after the
      closing.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    II.
      PLAN OF
      EXCHANGE

    

    1.
      Conditions Precedent to Closing.

    

    The
      obligation of the parties to consummate the transactions contemplated herein
      are
      subject to the fulfillment or waiver prior to the closing of the following
      conditions precedent:

     

        (1.1)
      Shareholder Approval. Da Zhu Fu Da and EVSF shall have secured all
      requisite shareholder approval for this transaction, and shall have finished
      all
      the related procedures in accordance with the laws of its place of incorporation
      and its constituent documents.

        (1.2)
      Board of Directors. The Boards of Directors of Da Zhu Fu Da and EVSF
      shall have approved the transaction and this agreement, in accordance with
      the
      laws of their place of incorporation and constituent documents.

        (1.3)
      Due Diligence Investigation. Each party shall have furnished to the
      other party all corporate and financial information which is customary and
      reasonable, to conduct its respective due diligence, normal for this kind of
      transaction. If either party determines that there is a reason not to complete
      the Plan of Exchange as a result of their due diligence examination, then they
      must give written notice to the other party prior to the expiration of the
      due
      diligence examination period. The due diligence period, for purposes of this
      paragraph, shall have expired on June 18, 2007.

        (1.4)
      The rights of dissenting shareholders, if any, of each party shall have
      been satisfied, the expense or cost incurred due to such satisfaction shall
      be
      paid by this involving party, and the Board of Directors of each party shall
      have determined to proceed with the Plan of exchange.

        (1.5)
      All of the terms, covenants and conditions of the Plan of exchange to
      be complied with or performed by each party before Closing shall have been
      complied with, performed or waived in writing;

        (1.6)
      The representations and warranties of the parties, contained in the
      Plan of exchange, as herein contemplated, except as amended, altered or waived
      by the parties in writing, shall be true and correct in all material respects
      at
      the Closing Date with the same force and effect as if such representations
      and
      warranties are made at and as of such time; and each party shall provide the
      other with a certificate, certified either individually or by an
      officer,  dated as of the Closing Date, to the effect, that all
      conditions precedent have been met, and that all representations and warranties
      of such party are true and correct as of that date. The form and substance
      of
      each party's certification shall be in form reasonably satisfactory to the
      other.

     

        (1.7)
      Certificate of the Majority Shareholder of EVSF.  It shall be
      a condition precedent to the obligation of Da Zhu Fu Da and the Da Zhu Fu Da
      Shareholders to consummate the transactions contemplated herein that a
      certificate of the Majority Shareholders of EVSF in substantially the following
      form be delivered to them on the date of execution:

    

    
      	
              (i)  

            	
              EVSF
                is a corporation duly organized and validly existing under the laws
                of the
                State of Delaware and has all requisite corporate power to own, operate
                and lease its properties and assets and to carry on its
                business.

            

    

    
      	
              (ii)  

            	
              The
                authorized capitalization and the number of issued and outstanding
                capital
                shares of EVSF are accurately and completely set forth in the Plan
                of
                Exchange.

            

    

    
      	
              (iii)  

            	
              The
                issued and outstanding shares of EVSF (including 30,000,000 new investment
                shares of Common Stock of EVSF to be issued to the Da Zhu Fu Da
                Shareholders pursuant to Regulation S) have been duly authorized
                and
                validly issued and are fully paid and
                non-assessable.

            

    

    
      	
              (iv)  

            	
              EVSF
                has the full right, power and authority to sell, transfer and deliver
                the
                632,250 shares of Common Stock of EVSF to the Da Zhu Fu Da Shareholders
                for the purchase price total of $550,000, and has the full right,
                power
                and authority to sell, transfer and deliver the 30,000,000 new investment
                shares of Common Stock of EVSF to the Da Zhu Fu Da Shareholders,
                and, upon
                delivery of the certificates representing such shares as contemplated
                in
                the Plan of Exchange, will transfer to the Da Zhu Fu Da Shareholders
                good,
                valid and marketable title thereto, free and clear of all
                liens.

            

    

    
      	
              (v)  

            	
              EVSF
                has taken all steps in connection with the Plan of Exchange and the
                issuance of the 30,000,000 new investment shares of Common Stock of
                EVSF, which are necessary to comply in all material respects with
                the
                Securities Act of 1933, as amended, and the Securities Exchange Act
                of
                1934, as amended, as well as the rules and regulations promulgated
                pursuant thereto.

            

    

    
      	
              (vi)  

            	
              EVSF
                has no material liabilities as such term is defined by U.S. generally
                accepted accounting principles.

            

     

    
      	
                                       (vii)

            	
              The
                sale, transfer and deliver of 632,250 shares of EVSF common stock
                and
                30,000,000 new investment shares of EVSF common stock from EVSF to
                Da Zhu
                Fu Da shareholders have no warranty, pledge or interest relating
                to any
                third party. Neither is there judgment, decree nor bad, pending or
                potential appeal, arbitration, judgment or decree of the transfer
                of the
                aforementioned shares.

            

    

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (1.8)    Absence
      of EVSF and its Subsidiary's Liabilities.  EVSF shall have no
      material liabilities as such term is defined by U.S. generally accepted
      accounting principles. A written statement by EVSF’s legal counsel in connection
      with due diligence shall be delivered to Da Zhu Fu Da. The majority shareholders
      of EVSF will retain the right to future use of Envirosafe Corp. only if the
      new
      management changes EVSF's name. All expenses to prepare and file documents
      connected to the Plan of Exchange will be paid by each party, respectively.
      The
      quarterly accounting review fees after the Closing will also be paid by Da
      Zhu
      Fu Da.

    

    (1.9)   Delivery
      of
      Audited Financial Statements.   Da Zhu Fu Da shall have
      delivered to EVSF audited financial statements and an audit report thereon,
      within 71 days after the closing, for the year ended December 31, 2006
      and  for the six months ended June 30, 2007, any required audits shall
      be prepared by a PCAOB member audit firm in accordance with U.S. GAAP at Da
      Zhu
      Fu Da’s expense.

    

    2.
      Closing and Conditions Concurrent and Subsequent to
      Closing.

    

    (2.1)
      Delivery of Registered Capital of Da Zhu Fu Da.  Immediately
      upon or within 60 days from the date of this agreement, EVSF shall have a 100%
      beneficial ownership interest in Si Chuan Da Zhu Fu Da Zhu Ma Fang Zhi You
      Xian
      Gong Si.

    

    (2.2)
      Acquisition Share Issuance and Purchase of Common Stock. At the day
      upon signing this Agreement, Da Zhu Fu Da shall provide all the required
      shareholders lists to
      EVSF. Within 28 days after signing
      this Agreement, EVSF shall deliver 632,250 shares of Common Stock of EVSF to
      the
      Da Zhu Fu Da Shareholders in exchange for total payments of $550,000 in cash,
      and shall issue 30,000,000 new investment shares of Common Stock of EVSF to
      the
      Da Zhu Fu Da Shareholders in exchange for 100% of the capital stock of Da Zhu
      Fu
      Da, and, as a result, the then outstanding common shares shall be as
      follows:

    

    
      	
              EVSF
                Issued

            	
              1,141,250

            
	
              Acquisition
                Share Issuance

            	
              30,000,000

            
	
                  Resulting
                Total

            	
              31,141,250

            
	
              Total
                shares owned by Da Zhu Fa Da

            	
              30,632,250

            

    

     

    (2.3)
      Delivery of Registered Capital of Da Zhu Fu Da. EVSF shall provide all
      the necessary company information to Da Zhu Fu Da in connection with the
      transaction with Da Zhu Fu Da after signing this Agreement, and shall assign
      Da
      Zhu Fu Da or Da Zhu Fu Da nominator in written notice to prepare and file the
      acquisition documents with the corresponding government departments. Da Zhu
      Fu
      Da shall immediately get into the normal procedures upon receiving the
      signatures of the aforementioned acquisition documents, and shall complete
      all
      legal procedures to become EVSF’s wholly-owned subsidiary within 10 business
      days after receiving all the 30,632,250 shares of EVSF common stock from
      EVSF.

     

          (2.4)  Appointment
      of Da Zhu Fu Da Nominees.  On or immediately after the
      Closing, nominees of Da Zhu Fu Da shall be appointed to the Board of Directors
      and as Officers of EVSF to fill the vacancies created by the resignation of
      EVSF's current management. Said appointments will occur within 10 days of the
      closing after proper notice has been given pursuant to
      Rule 14f-1 under the Securities Exchange Act of 1934, as amended.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    3.
      Plan of Exchange

    

    (3.1)
      Exchange and Reorganization: EVSF and Da Zhu Fu
      Da shall be hereby reorganized, such that EVSF shall acquire 100% the capital
      stock of Da Zhu Fu Da, and Da Zhu Fu Da shall become a wholly-owned subsidiary
      of EVSF.

    

    (3.2)
      Delivery of Common Stock: Immediately upon the Closing, EVSF shall
      deposit 632,250 shares of Common Stock of EVSF to the account of Escrow Agent
      for transfer.

    

    (3.3)
      Issuance of Common Stock: After the Closing, EVSF shall issue
      30,000,000 new investment shares of Common Stock of EVSF to or for the Da
      Zhu Fu Da Shareholders within 4 weeks upon receiving all the required
      shareholder information from DA ZHU FU DA.

    

    (3.4)
      Closing/Effective Date: The Plan of exchange shall become effective
      immediately upon approval and adoption by the parties hereto, in the manner
      provided by the law of the places of incorporation and constituent corporate
      documents, and upon compliance with governmental filing requirements, such
      as,
      without limitation, filings under the Securities Exchange Act of 1934, and
      the
      filing of Articles of Exchange, if applicable under State Law. Closing shall
      occur when all conditions of closing have been met or are waived by the parties.
      The parties anticipate the filing of a Schedule 14F-1 Information Statement
      at
      least ten days prior to any change in majority of the Board of Directors of
      EVSF. The Parties expect to make such filing after the Closing.

     

          
      (3.5) Surviving Corporations: Both
      corporations shall survive the exchange and reorganization herein contemplated
      and shall continue to be governed by the laws of its respective jurisdiction
      of
      incorporation.

     

          
      (3.6) Rights of Dissenting
      Shareholders: Each Party is the entity responsible for the rights of
      its own dissenting shareholders, if any.

     

          
      (3.7) Service of Process and Address:
Each corporation shall continue
      to be amenable to service of process in
      its own jurisdiction, exactly as before this acquisition.  The address
      of EVSF is 21205 Hickory Forest Way, Germantown, Maryland, 20876. The address
      of
      Da Zhu Fu Da is B section, YunDong Road, DaZhu County, Sichun Province, PRC,
      Peoples’ Republic of China. The address of EVSF will be changed, according to
      the instruction of Da Zhu Fu Da, before filing of the Form 8-K.

     

          
      (3.8) Surviving Articles of
      Incorporation: the Articles of Incorporation of each Corporation shall
      remain in full force and effect, unchanged. Any changes incurred due to this
      Agreement, an amendment to Articles of Incorporation shall be filed upon written
      consents.

    

    (3.9)
      Surviving By-Laws: the By-Laws of each Corporation shall remain in full
      force and effect, unchanged.

    

    (3.10)
      Further Assurance, Good Faith and Fair Dealing: the Directors of each
      Company shall and will execute and deliver any and all necessary documents,
      acknowledgments and assurances and do all things proper to confirm or
      acknowledge any and all rights, titles and interests created or confirmed
      herein; and both companies covenant expressly hereby to deal fairly and in
      good
      faith with each other and each others shareholders. In furtherance of the
      parties desire, as so expressed, and to encourage timely, effective and
      businesslike resolution the parties agree that any dispute arising between
      them,
      capable of resolution by arbitration, shall be submitted to binding arbitration.
      As a further incentive to private resolution of any dispute, the parties agree
      that each party shall bear its own costs of dispute resolution and shall not
      recover such costs from any other party.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    (3.11)
      General Mutual Representations and Warranties. The purpose and general
      import of the Mutual Representations and Warranties, are that each party has
      made appropriate full disclosure to the others, that no material information
      has
      been withheld, and that the information exchanged is accurate, true and correct.
      These warranties and representations are made by each party to the other, unless
      otherwise provided in this agreement, and they speak and shall be true
      immediately before Closing.

    

    
      	
               

            	
              (3.11.1)
                Organization and Qualification. Each corporation is duly
                organized and in good standing, and is duly qualified to conduct
                any
                business it may be conducting, as required by law or local
                ordinance.

            

    

    

    
      	
               

            	
              (3.11.2)
                Corporate Authority. Each corporation has corporate authority,
                under the laws of its jurisdiction and its constituent documents,
                to do
                each and every element of performance to which it has agreed, and
                which is
                reasonably necessary, appropriate and lawful, to carry out this Agreement
                in good faith.

            

    

    

    
      	
               

            	
              (3.11.3)
                Ownership of Assets and Property. Each corporation has lawful
                title and ownership of it property as reported to the other, and
                as
                disclosed in its financial
                statements.

            

    

    

    
      	
               

            	
              (3.11.4)
                Absence of Certain Changes or Events. Each corporation has not
                had any material changes of circumstances or events which have not
                been
                fully disclosed to the other party, and which, if different than
                previously disclosed in writing, have been disclosed in writing as
                currently as is reasonably practicable.  Specifically, and
                without limitation:

            

    

    

    
      	
               

            	
                 (3.11.4-a)
                the business of each corporation shall be conducted only
                in the
                ordinary and usual course and consistent with its past practice,
                and
                neither party shall purchase or sell (or enter into any agreement
                to so
                purchase or sell) any properties or assets or make any other changes
                in
                its operations, respectively, taken as a whole, or provide for the
                issuance of, agreement to issue or grant of options to acquire any
                shares,
                whether common, redeemable common or convertible preferred, in connection
                therewith;

            

    

    

    
      	
               

            	
                 (3.11.4-b)
                Except as set forth in this Plan of Exchange, neither corporation
                shall (i) amend its Articles of Incorporation or By-Laws, (ii) change
                the
                number of authorized or outstanding shares of its capital stock,
                or (iii)
                declare, set aside or pay any dividend or other distribution or payment
                in
                cash, stock or property to the extent that which might contradict
                or
                not  comply with any clause or condition set forth in this Plan
                of Exchange, or Escrow Agreement;

            

    

    

    
      	
               

            	
                 (3.11.4-c)
                Neither corporation shall (i) issue, grant or pledge or
                agree or
                propose to issue, grant, sell or pledge any shares of, or rights
                of any
                kind to acquire any shares of, its capital stock, (ii) incur any
                indebtedness other than in the ordinary course of business, (iii)
                acquire
                directly or indirectly by redemption or otherwise any shares of its
                capital stock of any class or (iv) enter into or modify any contact,
                agreement, commitment or arrangement with respect to any of the
                foregoing;

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
               

            	
                 (3.11.4-d)
                Except in the ordinary course of business, neither party
                shall
                (i) increase the compensation payable or to become payable by it
                to any of
                its officers or directors; (ii) make any payment or provision with
                respect
                to any bonus, profit sharing, stock option, stock purchase, employee
                stock
                ownership, pension, retirement, deferred compensation, employment
                or other
                payment plan, agreement or arrangement for the benefit of its employees
                (iii) grant any stock options or stock appreciation rights or permit
                the
                exercise of any stock appreciation right where the exercise of such
                right
                is subject to its discretion (iv) make any change in the compensation
                to
                be received by any of its officers; or adopt, or amend to increase
                compensation or benefits payable under, any collective bargaining,
                bonus,
                profit sharing, compensation, stock option, pension, retirement,
                deferred
                compensation, employment, termination or severance or other plan,
                agreement, trust, fund or arrangement for the benefit of employees,
                (v)
                enter into any agreement with respect to termination or severance
                pay, or
                any employment agreement or other contract or arrangement with any
                officer
                or director or employee, respectively, with respect to the performance
                or
                personal services that is not terminable without liability by it
                on thirty
                days notice or less, (vi) increase benefits payable under its current
                severance or termination, pay agreements or policies or (vii) make
                any
                loan or advance to, or enter into any written contract, lease or
                commitment with, any of its officers or
                directors;

            

    

    

    
      	
               

            	
                 (3.11.4-e)
                Neither party shall assume, guarantee, endorse or otherwise
                become responsible for the obligations of any other individual, firm
                or
                corporation or make any loans or advances to any individual, firm
                or
                corporation, other than obligations and liabilities expressly assumed
                by
                the other that party;

            

    

    

    
      	
               

            	
                 (3.11.4-f)
                Neither party shall make any investment of a capital nature
                either by purchase of stock or securities, contributions to capital,
                property transfers or otherwise, or by the purchase of any property
                or
                assets of any other individual, firm or
                corporation.

            

    

    

    
      	
               

            	
              (3.11.5)
                Absence of Undisclosed Liabilities. Each corporation has, and has
                no reason to anticipate having, any material liabilities which have
                not
                been disclosed to the other, in the financial statements or otherwise
                in
                writing.

            

    

    

    
      	
               

            	
              (3.11.6)
                Legal Compliance. Each corporation shall comply in all material
                respects with all Federal, state, local and other governmental (domestic
                or foreign) laws, statutes, ordinances, rules, regulations (including
                all
                applicable securities laws), orders, writs, injunctions, decrees,
                awards
                or other requirements of any court or other governmental or other
                authority applicable to each of them or their respective assets or
                to the
                conduct of their respective businesses, and use their best efforts
                to
                perform all obligations under all contracts, agreements, licenses,
                permits
                and undertaking without default.

            

    

    

    
      	
               

            	
              (3.11.7)
                Legal Proceedings. Each corporation has no legal proceedings,
                administrative or regulatory proceeding, pending or suspected, which
                have
                not been fully disclosed in writing to the
                other.

            

    

    

    
      	
               

            	
              (3.11.8)
                No Breach of Other Agreements.  This Agreement, and the
                faithful performance of this agreement, will not cause any breach
                of any
                other existing agreement, or any covenant, consent decree, or undertaking
                by either, not disclosed to the
                other.

            

    

    

    
      	
               

            	
              (3.11.9)
                Capital Stock. The issued and outstanding shares and all shares
                of capital stock of each corporation is as detailed herein, that
                all such
                shares are in fact issued and outstanding, duly and validly issued,
                were
                issued as and are fully paid and non-assessable shares, and that,
                other
                than as represented in writing, there are no other securities, options,
                warrants or rights outstanding, to acquire further shares of such
                corporation.

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              (3.11.10) SEC
                Reports, Liabilities and Taxes.   ( i )  EVSF
                has filed all required registration
                statements, prospectuses, reports, schedules, forms, statements and
                other
                documents required to be filed by it with the SEC since the date
                of its
                registration under the Securities Act of 1933, as amended (collectively,
                including all exhibits thereto, the "EVSF SEC Reports").  None
                of the EVSF SEC Reports, as of their respective dates, contained
                any
                untrue statements of material fact or failed to contain any statements
                which were necessary to make the statements made therein, in light
                of the
                circumstances, not misleading.  All of the EVSF SEC Reports, as
                of their respective dates (and as of the date of any amendment to
                the
                respective EVSF SEC Reports), complied as to form in all material
                respects
                with the applicable requirements of the Securities Act and the Exchange
                Act and the rules and regulations promulgated
                thereunder.

            

    

     

    (ii)
      Except as disclosed in the EVSF SEC Reports filed prior to the date hereof,
      EVSF
      and its Subsidiary have not incurred any liabilities or obligations (whether
      or
      not accrued, contingent or otherwise) that are of a nature that would be
      required to be disclosed on a balance sheet of EVSF and its Subsidiaries or
      the
      footnotes thereto prepared in conformity with GAAP, other than (A) liabilities
      incurred in the ordinary course of business, or (B) liabilities that would
      not,
      in the aggregate, reasonably be expected to have a material adverse effect
      on
      EVSF.

    

    (iii)
      Except as disclosed in the EVSF SEC Reports filed prior to the date hereof,
      EVSF
      and its Subsidiary (i) have prepared in good faith and duly and timely filed
      (taking into account any extension of time within which to file) all material
      tax returns required to be filed by any of them and all such filed tax returns
      are complete and accurate in all material respects; (ii) have paid all taxes
      that are shown as due and payable on such filed tax returns or that EVSF or
      any
      of its Subsidiaries are obligated to pay without the filing of a tax return;
      (iii) have paid all other assessments received to date in respect of taxes
      other
      than those being contested in good faith for which provision has been made
      in
      accordance with GAAP on the most recent balance sheet included in EVSF’s
      financial statements; (iv) have withheld from amounts owing to any employee,
      creditor or other person all taxes required by law to be withheld and have
      paid
      over to the proper governmental authority in a timely manner all such withheld
      amounts to the extent due and payable;  and (v) have not waived any
      applicable statute of limitations with respect to United States federal or
      state
      income or franchise taxes and have not otherwise agreed to any extension of
      time
      with respect to a United States federal or state income or franchise tax
      assessment  or deficiency.

    

    
      	
               

            	
              (3.11.
                11) Brokers' or
                Finder's Fees.
                Each corporation is not aware of
                any claims for brokers' fees, or finders' fees, or other commissions
                or
                fees, by any person not disclosed to the other, which would become,
                if valid, an obligation of either
                company.

            

    

    

    (3.12)
      Miscellaneous
      Provisions

    

    
      	
               

            	
              (3.112.1)
                Except as required by law, no party shall provide any information
                concerning any aspect of the transactions contemplated by this Agreement
                to anyone other than their respective officers, employees and
                representatives without the prior written consent of the other parties
                hereto. The aforesaid obligations shall terminate on the earlier
                to occur
                of (a) the Closing, or (b) the date by which any party is required
                under
                its articles or bylaws or as required by law, to provide specific
                disclosure of such transactions to its shareholders, governmental
                agencies
                or other third parties.  In the event that the transaction does
                not close, each party will return all confidential information furnished
                in confidence to the other.  In addition, all parties shall
                consult with each other concerning the timing and content of any
                press
                release or news release to be issued by any of
                them.

            

    

    

    
      	
               

            	
              (3.12.2)
                This Agreement may be executed simultaneously in two or
                more
                counterpart originals. The parties can and may rely upon facsimile
                signatures as binding under this Agreement, however, the parties
                agree to
                forward original signatures to the other parties as soon as practicable
                after the facsimile signatures have been
                delivered.

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              (3.12.3)
                The Parties to this agreement have no wish to engage in
                costly or
                lengthy litigation with each other. Accordingly, any and all disputes
                which the parties cannot resolve by agreement or mediation, shall
                be
                submitted to binding arbitration under the rules and auspices of
                the
                American Arbitration Association. As a further incentive to avoid
                disputes, each party shall bear its own costs, with respect thereto,
                and
                with respect to any proceedings in any court brought to enforce or
                overturn any arbitration award. This provision is expressly intended
                to
                discourage litigation and to encourage orderly, timely and economical
                resolution of any disputes which may
                occur.

            

    

    

    
      	
               

            	
              (3.12.4)
                If any provision of this Agreement or the application thereof
                to
                any person or situation shall be held invalid or unenforceable, the
                remainder of the Agreement and the application of such provision
                to other
                persons or situations shall not be effected thereby but shall continue
                valid and enforceable to the fullest extent permitted by
                law.

            

    

    

    
      	
               

            	
              (3.12.5)
                No waiver by any party of any occurrence or provision hereof
                shall be deemed a waiver of any other occurrence or
                provision.

            

    

    

    
      	
               

            	
              (3.12.6)
                The parties acknowledge that both they and their counsel
                have
                been provided ample opportunity to review and revise this agreement
                and
                that the normal rule of construction shall not be applied to cause
                the
                resolution of any ambiguities against any party presumptively. The
                Agreement shall be governed by and construed in accordance with the
                laws
                of the State of Delaware.

            

    

    

    4.
      Termination. The Plan of exchange may be terminated by written notice,
      at any time prior to closing, (i) by mutual consent, (ii) by either party during
      the due diligence phase, (iii) by either party, in the event that the
      transaction represented by the anticipated Plan of exchange has not been
      implemented and approved by the proper governmental authorities 60 days from
      the
      date of this Agreement, (iv) if payments scheduled in the Escrow Agreement
      are
      not received when due or (v) by either party in the event that a condition
      of
      closing is not met by July 31, 2007. In the event that termination of the Plan
      of exchange by either or both, as provided above, the Plan of exchange shall
      forthwith become void and there shall be no liability on the part of either
      party or their respective officers and directors.

    

    5.
      Closing.  The parties hereto contemplate
      that the closing of this Plan of Exchange shall occur after all of the
      conditions precedent have been met. The closing deliveries will be made pursuant
      to the Escrow Agreement dated May 18, 2007, pursuant to which an initial payment
      of $30,000 was made on May 28, 2007.  Immediately upon signing the
      Plan, Da Zhu Fu Da will deposit the remaining amount of $520,000 into the US
      account of the Escrow Agent, and the certificates representing 632,250 shares
      of
      Common Stock of EVSF will be delivered to the Escrow Agent for transfer. EVSF
      shall be paid by Da Zhu Fu Da and/or the Da Zhu Fu Da Shareholders an aggregate
      amount equal to $550,000. In addition, within 4 weeks
      of receiving all required shareholder information from DA
      ZHU FU DA, EVSF shall issue 30,000,000 new investment shares of EVSF Common
      Stock pursuant to an exemption under Regulation S promulgated under the
      Securities Act of 1933, as amended, to the Da Zhu Fu Da shareholders. The
      parties acknowledge that the Escrow Agreement has a default provision that
      governs the rights of the parties in the event that certain performances are
      not
      made on a timely basis and they expressly accept the terms thereof.

    

    6.  Merger
      Clause.  This Plan of Exchange, together with the LOI and
      Escrow Agreement, constitute the entire agreement of the parties hereto with
      respect to the subject matter hereof, and such documents supersede all prior
      understandings or agreements between the parties hereto, whether oral or
      written, with respect to the subject matter hereof, all of which are hereby
      superseded, merged and rendered null and void.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, The parties hereto, intending to be bound, hereby sign this
      Plan of Exchange below as of the date first written above.

     

    

    ENVIROSAFE
      CORP.

     

    

    By:
      /s/ Maurice
      Katz                                                                                                                         By:
/s/ Maurice Katz

         
      Maurice Katz, Authorized
      Representative                                                                                          
Maurice Katz, Individually

    

     

    SI
      CHUAN
      DA ZHU FU DA ZHU MA FANG ZHI YOU XIAN GONG SI

     

    

    By:
      /s/ Wen, Jia Shun

    Wen,
      Jia Shun, President

    

    
      
         

      

      
        12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]