Document:

EX-10.2

 EXHIBIT 10.2 

WESBANCO, INC. 

INCENTIVE BONUS, OPTION AND RESTRICTED STOCK PLAN 

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PERFORMANCE 
 RESTRICTED
STOCK AGREEMENT 
 This Restricted Stock Agreement (the “Agreement”) made as of the 16th day of May, 2017 by and between
WESBANCO, INC., a West Virginia corporation (the “Company”) and                      (the “Employee”). 

WHEREAS, the Company sponsors and maintains the Wesbanco, Inc. Incentive Bonus, Option and Restricted Stock Plan (the “Incentive
Plan”); 
 WHEREAS, the Company has employed the Employee as of the date hereof and desires to encourage the Employee to remain an
employee of the Company and, during such employment, to contribute substantially to the financial performance of the Company and, to provide that incentive, the Company has awarded the Employee, subject to the performance and employment restrictions
described herein, an aggregate of                      shares of restricted shares of the common stock of the Company, $2.0833 par value per
share (“Common Stock”), under the Incentive Plan subject to the terms and conditions set forth in this Restricted Stock Agreement (together with any increases for dividends paid in accordance with Paragraph 2(d) or adjustments as provided
in Paragraph 7, below, the “Performance Restricted Shares”); 
 WHEREAS, the Performance Restricted Shares are subject to both
(i) the Employee’s remaining an Employee (except in instances of death, Disability or Retirement (as those initially capitalized terms are defined in the Incentive Plan) with the consent of the Company as described below) during the
Restriction Period as defined in Paragraph 3(b) and (ii) the Compensation Committee’s determination that the Company has attained the financial performance criteria set forth in Paragraph 3(b) during the Restriction Period; and 

WHEREAS, the Company and the Employee desire to evidence the award of the Performance Restricted Shares and the terms and conditions
applicable thereto in this Performance Restricted Stock Agreement. 
 NOW THEREFORE, in consideration of the mutual promises and covenants
contained herein and intending to be legally bound, the Company and the Employee agree as follows: 
 1.    Grant of
Performance Restricted Shares. The Company hereby grants to the Employee, effective on January 1, 2018 if the Employee is an employee of the Company or a direct or indirect subsidiary of the Company on January 1, 2018, the Performance
Restricted Shares subject to the restrictions and other terms and conditions set forth herein. Simultaneously with the execution and delivery of this Agreement, the 

 
Employee shall deliver to the Company a stock power endorsed in blank relating to the Performance Restricted Shares (including in such power any increases or adjustments to the Performance
Restricted Shares). As soon as practicable after the Date of Grant, the Company shall direct that a book entry or other electronic record or a stock certificate or certificates representing the Performance Restricted Shares be registered in the name
of and issued to the Employee and initially bearing the legend described in Paragraph 5. The Performance Restricted Shares and any electronic record or certificate or certificates representing the Performance Restricted Shares shall be held in the
custody of the Company or its designee until the expiration of the applicable Restrictions. Upon any forfeiture in accordance with Paragraph 4 of the Performance Restricted Shares Agreement, the certificate or certificates representing the
forfeited Performance Restricted Shares shall be canceled. 
 2.    Restrictions. Employee shall have all rights
and privileges of a stockholder of the Company with respect to the Performance Restricted Shares, except that the following restrictions shall apply: 

(a)    None of the Performance Restricted Shares may be sold, transferred, assigned, pledged or otherwise encumbered or
disposed of during the “Restriction Period” as defined below. 
 (b)    The Performance Restricted Shares are
subject to forfeiture during the Restriction Period in accordance with Paragraph 4 of this Agreement. 
 (c)    The
Performance Restricted Shares and any certificate representing the Performance Restricted Shares shall be held in custody by the Company or its designee until such time as either the Restriction Period shall have been completed. 

(d)    Dividends paid with respect to the Performance Restricted Shares during the Restriction Period shall not be paid to
the Employee and, instead, shall be converted into additional shares of Performance Restricted Shares at the average of the high and low trading price of a share of Common Stock on the date the cash dividend would otherwise have been paid and such
shares of Performance Restricted Shares shall be additions to the shares subject to the Restrictions hereunder, provided, however, the Compensation Committee of the Board of Directors may, in its sole discretion, determine at any time or from
time to time, to pay such dividends in cash directly to the Employee. 
 3.     Term of Restriction. 

(a)    Subject to the forfeiture provisions of Paragraph 4 of this Agreement, the Restrictions shall lapse: 

(i) as to one-half of the Performance Restricted Shares initially granted under this Agreement, on
May 16, 2021 (A) if the Employee is an employee of the Company or a direct or indirect subsidiary of the Company on May 16, 2021 and (B) to the extent that the Compensation Committee determines the Performance Criteria have been met
during the Restriction Period; and 

  
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 (ii) as to the remainder of Performance Restricted Shares subject to the Restrictions, on
May 16, 2022 (A) if the Employee is an employee of the Company or a direct or indirect subsidiary of the Company on May 16, 2022 and (B) to the extent the Compensation Committee determines the Performance Criteria have been met during
the Restriction Period, in each case unless the Employee’s cessation of employment was due to the Employee’s death, Disability or Retirement with the consent of the Company. 

(b)    (i) The period from the Date of Grant until the lapse of the applicable of the Restrictions with respect to the
Performance Restricted Shares is the “Restriction Period” for purposes of this Agreement; and (ii), the “Performance Criteria” are the relative degrees of the Company’s attainment, in all cases as determined by the
Compensation Committee, of (A) Return on Assets (“ROA”) and/or (B) Return on Average Annual Tangible Common Equity (“ROATCE”), as defined by U.S. generally accepted accounting principles (“GAAP”), as against
the peer group of financial institutions set forth on Exhibit A, each of which is a financial institution with total assets of more than $10 billion and less than $15 billion as of the Date of Grant (the “Peer Group”). The
relative degree of attainment shall be measured separately for each of the first three calendar years during the Restriction Period and, for each calendar year, shall be measured separately for ROA and ROATCE, creating six different measurements.
For each of the six different measurements, as much as one-sixth (1/6th) of the Performance Restricted Shares subject to this Agreement may be earned. All
of the 1/6th of the Performance Restricted Shares for a particular measurement will be earned if the Company’s actual performance on the measure in question (that is, ROA or ROATCE for that
calendar year) is equal to or greater than 100% of the average on that measure of the actual performance of the members of the Peer Group and if the Company’s actual performance on measure in question is less than 100% but equal to or greater
than 85% of the actual performance of the members of the Peer Group in such measurement, 85% of the 1/6th of the Performance Restricted Shares for that measurement shall be deemed earned. No
Performance Restricted Shares shall be earned for any calendar year on any measurement for which the Company’s actual performance is less than 85% of the average of the actual performance of the members of the Peer Group for that calendar year
on that measurement and no more than the number of Performance Restricted Shares subject to this Agreement may be earned for performance that exceeds 100% on any measurement. Notwithstanding performance in any calendar year on any measure, the
Restrictions shall not lapse and Performance Restricted Shares shall remain subject to the continuing employment requirements set forth in this Agreement and shall not be distributed until all matters are determined by the Compensation Committee as
described and at the times set for in subparagraph 3(c) below. 
 (c)    The Compensation Committee will appropriately
make adjustments in the method of calculating the attainment of the Performance Criteria as follows: (i) to exclude restructuring or other nonrecurring charges; (ii) to exclude the effects of changes to GAAP; (iii) to exclude the
effects of any statutory adjustments to corporate tax rates; 

  
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(iv) to exclude the effects of any items that are “unusual” in nature or occur “infrequently” as determined under GAAP; (v) to exclude the dilutive effects of
mergers, acquisitions or joint ventures; (vi) to exclude the effect of any change in the outstanding shares of the Company’s common stock by reason of any stock dividend or split, stock repurchase, reorganization, recapitalization, merger,
consolidation, spin-off, combination or exchange of shares or other similar corporate change, or any distributions to common stockholders other than regular cash dividends; and (vii) to exclude costs
incurred in connection with potential acquisitions or divestitures that are required to be expensed under GAAP. 

(d)    As soon as administratively practicable following May 16, 2021 with respect to one half of the Performance
Restricted Shares initially awarded hereunder and with respect to the remaining Performance Restricted Shares on May 16, 2022, to the extent the Committee determines that the Restrictions have lapse without a forfeiture of the applicable
Performance Restricted Shares, and upon the satisfaction of all other applicable conditions as to such Performance Restricted Shares, including, but not limited to, the payment by the Employee of all applicable withholding taxes, if any, the Company
shall deliver or cause to be delivered to the Employee shares of common stock of the Company, which may be in the form of a certificate or certificates for such shares or electronic or book entry if so directed by the Employee. 

4.    Forfeiture of Performance Restricted Shares. If Employee’s employment with the Company and all of its
direct or indirect subsidiaries is terminated by either party for any reason, including, but not limited to, the involuntary termination of the Employee’s employment with the Company for any reason, with or without cause, other than the
Employee’s death, Disability or Retirement with the consent of the Company (i) all rights of the Employee to the Performance Restricted Shares which remain subject to the Restrictions shall terminate immediately and be forfeited in their
entirety, and (ii) the forfeited Performance Restricted Shares and any stock certificate or certificates representing the forfeited Performance Restricted Shares shall be canceled. If the Employee dies, becomes disabled or retires with the
consent of the Company, the Employee (or the Employee’s beneficiary) shall receive the Performance Restricted Shares when, if and to the extent, the Restrictions lapse under Paragraph 3. 

5.    Legend. During the Restriction Period, the Performance Restricted Shares and any share certificate or
certificates evidencing the Performance Restricted Shares shall be endorsed with the following legend (in addition to any legend required under applicable securities laws or any agreement by which the Company is bound): 

THE TRANSFERABILITY OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A RESTRICTED STOCK AGREEMENT
ENTERED INTO BY AND BETWEEN WESBANCO, INC. AND THE HOLDER OF THIS CERTIFICATE. A COPY OF SUCH AGREEMENT IS ON FILE AT THE OFFICE OF THE COMPANY. 

  
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 6.    Withholding. The Company or its direct or indirect subsidiary
may withhold from the number of Performance Restricted Shares or from any cash amount payable hereunder or any other cash payments due to Employee all taxes, including social security taxes, which the Company or its direct or indirect subsidiary is
required or otherwise authorized to withhold with respect to the Performance Restricted Shares. 
 7.    Adjustments
to Number of Shares. Any shares issued to Employee with respect to the Performance Restricted Shares in the event of any change in the number of outstanding shares of common stock of the Company through the declaration of a stock dividend or a
stock split or combination of shares or any other similar capitalization change shall be deemed to be Performance Restricted Shares subject to all the terms set forth in this Agreement. 

8.    No Right to Continued Employment; Effect on Benefit Plans. This Agreement shall not confer upon Employee any
right with respect to continuance of his or her employment or other relationship, nor shall it interfere in any way with the right of the Company or its direct or indirect subsidiary to terminate his or her employment or other relationship at any
time. Income realized by Employee pursuant to this Agreement shall not be included in Employee’s earnings for the purpose of any benefit plan in which Employee may be enrolled or for which Employee may become eligible unless otherwise
specifically provided for in such plan. 
 9.    Employee Representations. In connection with the issuance of the
Performance Restricted Shares, Employee represents the following: 
 (a)    Employee hereby acknowledges that Employee
has been informed that, with respect to the issuance of the Performance Restricted Shares, an election may be filed by Employee with the Internal Revenue Service, within thirty (30) days of the issuance of such Performance Restricted Shares,
electing pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), to be taxed currently on the fair market value of such Shares on the date of purchase. Employee acknowledges that Employee has sought
the advice of Employee’s own tax advisors in connection with the issuance of the Performance Restricted Shares and the advisability of filing of such election under Section 83(b) of the Code. EMPLOYEE ACKNOWLEDGES THAT IT IS
EMPLOYEE’S SOLE RESPONSIBILITY TO FILE TIMELY THE ELECTION UNDER SECTION 83(b) AND THAT NEITHER THE COMPANY NOR ANY DIRECT OR INDIRECT SUBSIDIARY OF THE COMPANY HAS ANY OBLIGATIONS WITH RESPECT THERETO. 

(b)    Employee has reviewed with Employee’s own tax advisors, the federal, state, local and foreign tax consequences
of this Agreement and the transactions contemplated hereby. Employee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. Employee understands that Employee (and not the Company) shall
be responsible for Employee’s own tax liability that may arise as a result of this Agreement and the transactions contemplated hereby. 

  
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 (c)    Employee has received, read and understood this Agreement and the
Incentive Plan and agrees to abide by and be bound by their respective terms and conditions. 
 10.    Non-solicitation. For a term of one year following termination of employment with Company or any of its subsidiaries, the Employee will not, directly or indirectly either for himself or any other Person (as
defined herein), (i) induce or attempt to induce any employee of the Company or its subsidiaries to leave the employ of the Company or its subsidiaries, (ii) in any way interfere with the relationship between Company or its subsidiaries and any
employee of Company or its subsidiaries, (iii) employ, or otherwise engage as an employee, independent contractor, or otherwise, any employee of Company or its subsidiaries, or (iv) induce or attempt to induce any customer, supplier,
licensee, or business relation of Company or its subsidiaries to cease doing business with Company or its subsidiaries, or in any way interfere with the relationship between any customer, supplier, licensee, or business relation of Company or its
subsidiaries. During the non-solicitation period, and for a term of one year following termination of employment with Company, the Employee will not, directly or indirectly, either for himself or any other
Person solicit the business of any Person known to the Employee to be a customer of Company or its subsidiaries, whether or not the Employee had personal contact with such Person, with respect to products or activities which compete in whole or in
part with the products or activities of Company or its subsidiaries. For purposes of this Agreement, “Person” shall include an individual, trust, estate, corporation, limited liability company, credit union, savings bank, savings and loan
association, savings and loan holding company, bank, bank holding company, mortgage company or similar type financial institution, including, without limitation, a de novo financial institution in its organizational phase. 

11.    Confidentiality. The Employee acknowledges and agrees to treat as confidential all information known or
obtained by the Employee, whether before or after the date hereof, concerning Company or its respective subsidiaries’ records, properties, books, contracts, commitments and affairs, including but not limited to, information regarding accounts,
shareholders, finances, strategies, marketing, customers, and potential customers and other information of a similar nature (such information, “Confidential Information”). The Employee agrees that he will not, at any time, disclose to any
unauthorized Person, or use for his own account or for the benefit of any third party any Confidential Information, whether or not the Confidential Information is embodied in writing or other physical form, without Company’s express written
consent, unless and to the extent that such Confidential Information is or becomes generally known to and available for use by the public other than as a result of Employee’s fault or the fault of any other Person bound by a duty of
confidentiality to Company. 

  
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 12.    Miscellaneous. 

(a)    Governing Law. This Agreement shall be governed and construed in accordance with the domestic laws of the
State of West Virginia without regard to such State’s principles of conflicts of laws. 
 (b)    Successors and
Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, permitted assigns, heirs, executors and administrators of the parties hereto. Neither this Agreement nor any rights hereunder shall be
assignable or otherwise subject to hypothecation without the consent of all parties hereto. 
 (c)    Entire
Agreement; Amendment. This Agreement contains the entire understanding between the parties hereto with respect to the subject matter of this Agreement and supersedes all prior and contemporaneous agreements and understandings, inducements or
conditions, express or implied, oral or written, with respect to the subject matter of this Agreement. This Agreement may not be amended or modified without the written consent of the Company and Employee. 

(d)    Counterparts. This Agreement may be executed simultaneously in any number of counterparts, each of which
when so executed and delivered shall be taken to be an original and all of which together shall constitute one document. 

(e)    Definitions. Initially capitalized terms not otherwise defined in this Restricted Stock Agreement shall have
the meanings ascribed thereto in the Incentive Plan. 
 IN WITNESS WHEREOF, the parties have executed this Performance Restricted Shares
Agreement as of the date first written above. 
  

			
	WESBANCO, INC.
		
	By:	 	  

		 	Todd F. Clossin, President & CEO
	
	EMPLOYEE
		
		 	  

		 	

  
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	WesBanco - Peer Group - Grant of Performance Restricted Shares
			
	 Company Name
	  	 Ticker
	  	 Location

			
	 BancorpSouth Inc.
	  	BXS	  	Tupelo, MS
			
	 Banner Corp.
	  	BANR	  	Walla Walla, WA
			
	 First Financial Bancorp.
	  	FFBC	  	Cincinnati, OH
			
	 First Midwest Bancorp Inc.
	  	FMBI	  	Itasca, IL
			
	 Glacier Bancorp Inc.
	  	GBCI	  	Kalispell, MT
			
	 Old National Bancorp
	  	ONB	  	Evansville, IN
			
	 Pinnacle Financial Partners
	  	PNFP	  	Nashville, TN
			
	 South State Corporation
	  	SSB	  	Columbia, SC
			
	 Trustmark Corp.
	  	TRMK	  	Jackson, MS
			
	 Union Bkshs Corp
	  	UBSH	  	Richmond, VA
			
	 United Bankshares Inc.
	  	UBSI	  	Charleston, WV
			
	 United Community Banks Inc.
	  	UCBI	  	Blairsville, GA

  
 8clow_ex101.htm

EXHIBIT 10.1

 

PURCHASE AGREEMENT

 

THIS PURCHASE AGREEMENT (this “Agreement”) is made as of the 1st day of April 2017, by and between Yui Daing, an individual residing in Kuala Lumpur, Malaysia (the “Purchaser”), Data Backup Solutions, Inc., a Florida corporation (hereinafter referred to as the “Parent”), Data Cloud Inc., a Nevada corporation (hereinafter referred to as the “TARGET”), and Web Hosting Solutions Ltd., a United Kingdom private company limited by shares (hereinafter referred to as “WHS”).

 

WHEREAS, Parent owns one hundred percent (100%) of the issued and outstanding equity interests of TARGET (“Equity Interests”); 

 

WHEREAS, TARGET owns one hundred percent (100%) of the issued and outstanding ownership interest in WHS;

 

WHEREAS, TARGET is engaged in the business of providing web hosting solutions through WHS (the “Business”); and

 

WHEREAS, the Purchaser desires to purchase and acquire such Equity Interests owned by the Parent, and the Parent desires to sell such Equity Interests to the Purchaser so that the Purchaser shall own the one hundred percent (100%) of the issued and outstanding equity Interests of TARGET after the closing of the transactions contemplated by this Agreement;

 

NOW THEREFORE in consideration of the mutual covenants, representations and warranties, which are to be made and performed by the respective Parties, it is hereby agreed as follows:

 

ARTICLE I

INTERPRETATION

 

Section 1.01. Definitions. The following terms when used in this Agreement shall have the meanings hereby assigned to them:

 

“Action” means any claim, action, suit, formal or informal arbitration or mediation, inquiry, proceeding or investigation by or before any Governmental Entity or private authority;

 

“Business Day” shall mean any day other than a day which is a Saturday, a Sunday or a statutory holiday in Las Vegas, Nevada;

 

“Closing” shall mean the closing of the transactions contemplated by this Agreement;

 

“Encumbrance” shall mean any mortgage, charge, pledge, lien, (otherwise than arising by statute or operation of law), equities, hypothecation or other encumbrance, priority or security interest, pre-emptive right deferred purchase, title retention, leasing, sale-and-repurchase or sale-and-leaseback arrangement whatsoever over or in any property, assets or rights of whatsoever nature and includes any agreement for any of the same and reference to “Encumbrances” shall be construed accordingly;

 

	 
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“Governmental Entity” shall mean any court or tribunal in any jurisdiction or any federal, state, municipal or other governmental body, agency, authority, department, commission, board or instrumentality;

 

“Liabilities” means all debts, liabilities and obligations, whether legal or equitable, accrued or fixed, absolute or contingent, matured or unmatured, determined or determinable, foreseen or unforeseen, ordinary or extraordinary, patent or latent, including those arising under any applicable law, rule or regulation, or Action and those arising under any contract, agreement, arrangement, commitment or undertaking;

 

“Party” shall mean a Person, which is bound by this Agreement;

 

“Person” shall mean any individual, firm, company, government, state or agency of a state or any joint venture, association or partnership (whether or not having separate legal personality); and

 

“Regulations” shall mean all statutes, laws, codes, treaties, ordinances, decrees, rules, orders and regulations in effect from time to time and made by governments or Governmental Entities having jurisdiction over the Purchaser, Parent, TARGET, WHS, or the Business.

 

ARTICLE II

EQUITY INTERESTS PURCHASE

 

Section 2.01. Agreement to Purchase Equity Interests. Subject to and upon the terms and conditions of this Agreement, at the Closing the Purchaser shall purchase the Equity Interests from Parent for a purchase price of Ten Dollars ($10.00 USD) (the “Purchase Price”). Parent’s sale to the Purchaser of the Equity Interests shall represent one hundred percent (100%) of the issued and outstanding equity interests of TARGET.

 

Section 2.02. Closing. The Closing of the Stock Purchase and the other transactions contemplated by this Agreement will occur on April, 2017 or as soon as possible thereafter (the “Closing Date”). 

 

Section 2.03. TARGET’s and Parent’s Closing Documents. At the Closing, Parent shall tender, or cause to be tendered, to Purchaser:

 

(a) Certification from Parent and TARGET in a form satisfactory to the Purchaser, acting reasonably, authorizing:

 

	
 
	(i)	the execution and delivery of this Agreement by TARGET; and
	
 
	
 
	
 

	
 
	(ii)	the transfer and registration of the Equity Interests in the name of the Purchaser and evidence of the issuance of the Equity Interests representing all of the Equity Interests in the name of the Purchaser.

 

	 
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(b) Certification from Parent stating that all Equity Interests are transferred by Parent to Purchaser;

 

(c) Certification from Parent stating that Purchaser is the registered owner of all of the Equity Interests; and

 

(d) A certificate executed by Parent certifying that the conditions in Section 8.01(b) have been satisfied.

 

Section 2.04. Purchaser’s Closing Documents. At the Closing, the Purchaser will tender, or cause to be tendered, to Parent:

 

(a) the Purchase Price; and

 

(b) A certificate executed by Purchaser certifying that the conditions in Section 9.01(b) have been satisfied. 

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.01. Each Party represents and warrants to the other Party that each of the warranties it makes is accurate in all respects and not misleading as at the date of this Agreement and at the Closing Date.

 

Section 3.02. Each Party undertakes to disclose in writing to the other Party anything which is or may constitute a breach of or be inconsistent with any of the warranties immediately upon the same coming to its notice at the time of and after Closing.

 

Section 3.03. Each Party agrees that each of the warranties it makes shall be construed as a separate and independent warranty and (except where expressly provided to the contrary) shall not be limited or restricted by reference to or inference from the terms of any other warranty or any other term of this Agreement.

 

Section 3.04. Each Party acknowledges that the restrictions contained in Section 12.07 (Public Notices) shall continue to apply after the Closing or Termination under this Agreement without limit in time.

 

Section 3.05. All representations, warranties, covenants and agreements contained in this Agreement on the part of each of the Parties shall survive the Closing Date. If no claim shall have been made under this Agreement against a Party with respect to any incorrectness in or breach of any representation or warranty made by that Party in this Agreement within six months following the Closing Date, that Party shall have no further liability with respect to the representation or warranty. 

 

Section 3.06. The representations and warranties contained in clauses 3.01 and 3.02 herein of this Agreement shall be deemed to apply to all and shall not merge or diminish as a result of the equity purchase as contemplated hereunder.

 

	 
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ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

Section 4.01. Organization, Standing and Authority. The Purchaser is an individual residing in Kuala Lumpur, Malaysia, and has all requisite power and authority to own, lease and operate his properties and to conduct his business as presently conducted and as proposed to be conducted.

 

Section 4.02. Authorization. The execution, delivery and performance by the Purchaser of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action of the Purchaser, and this Agreement constitutes a valid and binding agreement of the Purchaser. 

 

Section 4.03. No Conflict. The execution, delivery and performance of this Agreement and the completion of the transactions contemplated herein will not:

 

	
 
	(a)	Violate any order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against, or binding upon, or any agreement with, or condition imposed by, any governmental or regulatory body, foreign or domestic, binding upon the Purchaser or upon the assets or business of the Purchaser; or
	
 
	
 
	
 

	
 
	(b)	Violate any statute, law or regulation of any jurisdiction as such statute, law or Regulation that relates to the Purchaser or to the properties or business of the Purchaser.

 

Section 4.04. Brokerage. No broker or finder has acted, directly or indirectly, for the Purchaser nor did the Purchaser incur any finder’s fee or other commission, in connection with the transactions contemplated by this Agreement. 

 

Section 4.05. Liabilities. Purchaser represents and warrants that he has received all information regarding TARGET’S and WHS’s outstanding Liabilities, contracted obligations and other obligations and has had the opportunity to conduct its own due diligence review of the same. Further, Purchaser represents and warrants that all existing Liabilities of TARGET and WHS shall remain Liabilities of TARGET and WHS after the Closing. 

 

	 
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ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE PARENT AND TARGET 

 

The Parent and TARGET represent and warrant to the Purchaser as follows:

 

Section 5.01. Organization, Standing and Authority; Foreign Qualification. TARGET is a corporation duly organized, validly existing and in good standing under the laws of the state of Nevada and has all requisite corporate power and authority to own its assets and to conduct its business as presently conducted and as proposed to be conducted and is duly qualified or licensed as a foreign corporation in good standing in each jurisdiction in which the character of its properties or the nature of its business activities require such qualification. The Parent owns all of the issued and outstanding equity interests of TARGET and no Person other than the Parent has any right to vote such equity interests. 

 

Section 5.02. Authorization. The execution, delivery and performance by the Parent and TARGET of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate or other action on the part of the Parent and TARGET. The Parent and TARGET have duly executed and delivered this Agreement and this Agreement constitutes a valid and binding agreement of the Parent and TARGET. 

 

Section 5.03. Title to the Equity Interests. Upon completion of the transactions contemplated under this Agreement, the Purchaser shall be the beneficial and record holder of the Equity Interests without any Encumbrances thereon.

 

Section 5.04. Tax Advice. Parent is responsible for obtaining such legal, including tax, advice as he considers necessary or appropriate in connection with the execution, delivery and performance by it of this Agreement and the transactions contemplated herein.

 

Section 5.05 No Conflict. The execution, delivery and performance of this Agreement and the completion of the transactions contemplated herein will not:

 

(a) Violate any provision of the Articles of Incorporation, By-laws or other charter or organizational document of TARGET or the terms and conditions of any agreements pertaining to any of the assets of TARGET or its business; 

 

(b) Violate, conflict with or result in the breach of any of the terms of, result in any modification of the effect of, otherwise give any other contracting party the right to terminate, or constitute (or with notice or lapse of time or both constitute) a default under, any contract to which Parent or TARGET is a party or by or to which either of its assets or properties, may be bound or subject; 

 

(c) Violate any order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against, or binding upon, or any agreement with, or condition imposed by, any governmental or regulatory body, foreign or domestic, binding upon Parent, TARGET or upon any of TARGET’s assets;

 

(d) Violate any statute, law or regulation of any jurisdiction as such statute, law or Regulation that relates to Parent, TARGET or to any of TARGET’s assets; or

 

	 
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(e) Result in the breach of any of the terms or conditions of, constitute a default under, or otherwise cause an impairment of, any permit or license held by TARGET or any of its assets.

 

Section 5.06. Compliance with Laws. To the best of Parent’s and TARGET’s knowledge, TARGET is not in violation of any applicable order, judgment, injunction, award or decree nor is it in violation of any federal, state, local or foreign law, ordinance or Regulation or any other requirement of any governmental or regulatory body, court or arbitrator, other than those violations which, in the aggregate, would not have a material adverse effect on TARGET or any of its assets and TARGET has not received written notice that any violation is being alleged.

 

Section 5.07. Material Information. This Agreement and all other information provided, in writing, by Parent or TARGET or representatives thereof, to the Purchaser, taken as a whole, do not contain any untrue statement of a material fact or omit to state a material fact necessary to make any statement contained herein or therein not misleading. There are no facts or conditions which have not been disclosed to the Purchaser in writing which, individually or in the aggregate, could have a material adverse effect on Parent or TARGET or a material adverse effect on the ability of Parent to perform any of its obligations pursuant to this Agreement or on the ability of TARGET or the Purchaser to operate any of TARGET’s assets or conduct its business.

 

Section 5.08. Actions and Proceedings. There are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against or involving TARGET. There are no actions, suits or claims or legal, regulatory, administrative or arbitration proceedings pending or, to the knowledge of TARGET, threatened against or involving TARGET, or any of its assets. TARGET and Parent have provided Purchaser with information regarding all of TARGET’s outstanding liabilities and other obligations.

 

Section 5.09. Financial Statements. As of the date of this Agreement Parent is current on its periodic reports required to be filed with the United States Securities and Exchange Commission, including any financial statements required thereby (the “Financial Statements”). 

 

Section 5.10. Status of Assets and the Business. TARGET, its assets and the Business are, and at the time of entering into this Agreement and at the Closing shall be, in good standing and free from any Encumbrances whatsoever. 

 

Section 5.11. Brokerage. No broker or finder has acted, directly or indirectly, for Parent or TARGET nor has Parent or TARGET incurred any obligation to pay any brokerage, finder’s fee or other commission in connection with the transactions contemplated by this Agreement.

 

	 
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ARTICLE VI

COVENANTS AND AGREEMENTS OF OWNER

 

Section 6.01. Conduct of Businesses in the Ordinary Course. From the date of this Agreement to the Closing Date, Parent shall cause TARGET to conduct its business substantially in the manner in which it is currently conducted.

 

Section 6.02. Preservation of Permits and Services. From the date of this Agreement to the Closing Date, Parent shall cause TARGET to use its best efforts to preserve any permits and licenses in full force and effect and to keep available the services, and preserve the goodwill, of its present managers, officers, employees, agents, and consultants.

 

Section 6.03. Conduct Pending the Closing Date. From the date of this Agreement to the Closing Date: (a) Parent shall cause TARGET to use its best efforts to conduct its affairs in such a manner so that, except as otherwise contemplated or permitted by this Agreement, the representations and warranties contained in Article V shall continue to be true and correct on and as of the Closing Date as if made on and as of the Closing Date; and (b) Parent shall promptly notify Purchaser of any event, condition or circumstance that would constitute a violation or breach of this Agreement by Parent or TARGET.

 

Section 6.04. Corporate Examinations and Investigations. Prior to the Closing Date, Purchaser shall be entitled, through its employees and representatives, to make such reasonable investigation of the assets, Liabilities, properties, business and operations of TARGET, including, but not limited to, an examination of the books, records, tax returns, results of operations and financial condition of TARGET. Any such investigation and examination shall be conducted at reasonable times and under reasonable circumstances and Parent, TARGET, and their employees and representatives, including without limitation, their counsel and independent public accountants, shall cooperate fully with such representatives in connection with such reasonable review and examination.

 

	 
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ARTICLE VII

COVENANTS AND AGREEMENTS OF PURCHASER

 

Section 7.01. Conduct of Purchaser Pending the Closing. From the date hereof through the Closing Date: 

 

(a) Purchaser shall use its best efforts to conduct its affairs in such a manner so that, except as otherwise contemplated or permitted by this Agreement, the representations and warranties contained in Article IV shall continue to be true and correct on and as of the Closing Date as if made on and as of the Closing Date; and

 

(b) Purchaser shall promptly notify Parent of any event, condition or circumstance occurring from the date hereof through the Closing Date that would constitute a violation or breach of this Agreement by the Purchaser.

 

ARTICLE VIII

CONDITIONS PRECEDENT TO THE OBLIGATION OF PURCHASER TO CLOSE

 

The obligations of the Purchaser to be performed by it at the Closing pursuant to this Agreement are subject to the fulfillment on or before the Closing Date, of each of the following conditions, any one or more of which may be waived by it, to the extent permitted by law:

 

Section 8.01. Representations and Covenants. (a) The representations and warranties of TARGET and Parent contained in this Agreement shall be true and correct on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date, except that any of such representations and warranties that are given as of a particular date and relate solely to a particular date or period shall be true as of such date or period; and

 

(b) TARGET and Parent shall have performed and complied with all covenants and agreements required by this Agreement to be performed or complied with by it or them on or before the Closing Date. TARGET shall have delivered to the Purchaser a certificate dated the Closing Date, and signed by an authorized signatory of TARGET to the foregoing effect.

 

Section 8.02. Governmental Permits and Approvals. (a) All approvals, authorizations, consents, permits and licenses from governmental and regulatory bodies required for the transactions contemplated by this Agreement and to permit the business currently carried on by TARGET to continue to be carried on substantially in the same manner immediately following the Closing Date shall have been obtained and shall be in full force and effect, and the Purchaser shall have been furnished with appropriate evidence, reasonably satisfactory to it, of the granting of such approvals, authorizations, consents, permits and licenses; and 

 

	 
	8
	

 
	 

 

(b) There shall not have been any action taken by any court, governmental or regulatory body then prohibiting or making illegal on the Closing Date the transactions contemplated by this Agreement.

 

Section 8.03. Litigation. No action, suit or proceeding shall have been instituted and be continuing or be threatened by any person to restrain, modify or prevent the carrying out of the transactions contemplated hereby, or to seek damages in connection with such transactions, or that has or could have a material adverse effect on TARGET, Parent or the Business.

 

Section 8.04. Closing Documents. The Parent shall have executed and delivered the documents described in Section 2.03 above.

 

ARTICLE IX

CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PARENT TO CLOSE

 

The obligation of Parent to be performed by it at the Closing pursuant to this Agreement are subject to the fulfillment, on or before the Closing Date, of each the following conditions, any one or more of which may be waived by it, to the extent permitted by law:

 

Section 9.01. Representations and Covenants. (a) The representations and warranties of the Purchaser contained in this Agreement shall be true and correct on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date, except that any of such representations and warranties that are given as of a particular date and relate solely to a particular date or period shall be true as of such date or period; and

 

(b) The Purchaser shall have performed and complied with all covenants and agreements required by this Agreement to be performed or complied with by him on or before the Closing Date. The Purchaser shall have delivered to Owner a certificate dated the Closing Date to the foregoing effect.

 

Section 9.02. Governmental Permits and Approvals. (a) All approvals, authorizations, consents, permits and licenses from governmental and regulatory bodies required for the transactions contemplated by this Agreement and to permit the business currently carried on by the Purchaser to continue to be carried on substantially in the same manner immediately following the Closing Date shall have been obtained and shall be in full force and effect, and Parent shall have been furnished with appropriate evidence, reasonably satisfactory to it, of the granting of such approvals, authorizations, consents, permits and licenses; and 

 

(b) There shall not have been any action taken by any court, governmental or regulatory body then prohibiting or making illegal on the Closing Date the transactions contemplated by this Agreement.

 

	 
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Section 9.03. Litigation. No action, suit or proceeding shall have been instituted and be continuing or be threatened by any person to restrain, modify or prevent the carrying out of the transactions contemplated hereby, or to seek damages in connection with such transactions, or that has or could have a material adverse effect on the Purchaser.

 

Section 9.04. Closing Documents. The Purchaser shall have executed and delivered the documents described in Section 2.04 above.

 

ARTICLE X

TERMINATION

 

Section 10.01. Termination.

 

(a) Notwithstanding anything to the contrary in this Agreement, this Agreement may be terminated and the purchase of the Equity Interests and the other transactions contemplated by this Agreement shall be abandoned at any time prior to the Closing:

 

(i) by mutual written consent of Parent and the Purchaser;

 

(ii) by either the Parent or the Purchaser in the event that a temporary restraining order, preliminary or permanent injunction or other judicial order preventing the consummation of the purchase of the Equity Interests or any of the other transactions contemplated hereby shall have become final and non-appealable; provided, that, the party seeking to terminate this Agreement pursuant to this clause (ii) shall have used all commercially reasonable efforts to have such order, injunction or other order vacated;

 

(iii) by the Purchaser (a) if the Purchaser is not then in material breach of this Agreement and if there shall have been any breach by Parent (which has not been waived) of one or more of its representations or warranties, covenants or agreements set forth in this Agreement, which breach or breaches (A) would give rise to the failure of a condition set forth in Article VIII, and (B) shall not have been cured within thirty (30) days following receipt by Parent of written notice of such breach, or such longer period in the event that such breach cannot reasonably be expected to be cured within such 30‐day period and Parent is diligently pursuing such cure, or (b) if the Purchaser has not received results satisfactory to him, in his sole discretion, from its due diligence review of TARGET, the Business, or TARGET’s assets;

 

(v) by Parent if it is not then in material breach of this Agreement and if there shall have been any breach by the Purchaser (which has not been waived) of one or more of his representations or warranties, covenants or agreements set forth in this Agreement, which breach or breaches (A) would give rise to the failure of a condition set forth in Article IX, and (B) shall not have been cured within thirty (30) days following receipt by the Purchaser of written notice of such breach; or

 

(b) In the event of termination by Parent or the Purchaser pursuant to this Section 10.01, written notice thereof shall forthwith be given to the other Party and the transactions contemplated by this Agreement shall be terminated, without further action by any Party. 

 

	 
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Section 10.02. Effect of Termination. If this Agreement is terminated and the transactions contemplated hereby are abandoned as described in Section 10.01, this Agreement shall become null and void and of no further force and effect, except for the provisions of (i) Section 10.01 and this Section 10.02; and (ii) Section 12.07 relating to publicity. Nothing in this Section 10.02 shall be deemed to release any Party from any liability for any breach by such Party of the terms, conditions, covenants and other provisions of this Agreement or to impair the right of any Party to compel specific performance by any other Party of its obligations under this Agreement. 

 

ARTICLE XI

NOTICE

 

Section 11.01. Service of Notice

 

All notices, requests, consents and other communications required or permitted hereunder shall be deemed to be served properly if served (i) when delivered if delivered personally (including by courier); (ii) on the third day after mailing, if mailed postage prepaid, by registered or certified mail (return receipt requested); (iii) on the day after mailing if sent by a nationally recognized overnight delivery service which maintains records of the time, place and recipient of delivery; or (iv) upon receipt of a confirmed transmission, if sent by telecopy or facsimile transmission, in each case to the parties at the following addresses.

 

Section 11.02. Addresses for Notices

 

The address for service of notices hereunder of each of the Parties shall be as follows:

 

	
 
	
Purchaser:
	
Mr. Yui Daing

Garden South Tower

Lingkaran Syed Putra

59200 Kuala Lumpur, Malaysia 

	
 
	
 
	
 

	
 
	
TARGET:
	
Data Cloud Inc.

3609 Hammerkop Drive

North Las Vegas, NV 89084

	
 
	
 
	
 

	
 
	
Parent:
	
Data Backup Solutions, Inc.

12A Greenhill Street, Dept. 106

Stratford Upon Avon

Warwickshire CV376LK United Kingdom

	
 
	
 
	
 

	
 
	
WHS:
	
Web Hosting Solutions Limited

12A Greenhill Street, Dept. 106

Stratford Upon Avon

Warwickshire CV376LK United Kingdom

 

	 
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Section 11.03. Right to Change Address

 

A Party may change its address for service by notice to the other Parties, and such changed address for service thereafter shall be effective for all purposes of this Agreement.

 

ARTICLE XII

MISCELLANEOUS PROVISIONS

 

Section 12.01. Assignment. The rights of the Parties shall not be assignable without the prior written consent of the other Party, which assignment shall not be unreasonably withheld.

 

Section 12.02. Expenses. Each Party to this Agreement will pay its own expenses in connection with the negotiation of this Agreement, the performance of its obligations hereunder, and the consummation of the transactions contemplated herein.

 

Section 12.03. Governing Law. This Agreement shall be subject to and be interpreted, construed and enforced in accordance with the laws in effect in the State of Nevada applicable therein to the exclusion of any conflicts of laws rules, which would refer the matter to the laws of another jurisdiction. Each Party accepts the exclusive jurisdiction of the courts of the State of Nevada and all courts of appeal there from.

 

Section 12.04. Time. Time shall be of the essence in this Agreement.

 

Section 12.05. No Amendment Except in Writing. This Agreement may be amended only by written instrument executed by all of the Parties hereto.

 

Section 12.06. Further Assurances. The Parties shall with reasonable diligence do all things and provide all reasonable assurances as may be required to consummate the transactions contemplated by this Agreement, and each Party shall provide such further documents or instruments required by any other Party as may be reasonably necessary or desirable to effect the purpose of this Agreement and to carry out its provisions, whether before or after the Closing Date.

 

Section 12.07. Notices. The Parties agree that all notices to third parties and all other publicity concerning the transactions contemplated by this Agreement shall be jointly planned and coordinated and no Party shall act unilaterally in this regard without the prior approval of the others, such approval not to be unreasonably withheld.

 

	 
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IN WITNESS WHEREOF the Parties have executed this Purchase Agreement on the date first above written.

 

	
PURCHASER:
	
	 	
 
	 
	
 
	
	
Yui Daing
	
 
	 
		
 
	 
	
TARGET:
	
 

	
 
	
 
	
 

	
Data Cloud Inc., a Nevada corporation
	
 

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	Title: 	
 
	 
	
 
	
 
	
 

	
PARENT:
	
 

	
 
	
 
	
 

	
Data Backup Solutions, Inc., a Nevada corporation
	
 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
Name: 
	
 
	
 

	
Title: 
	
 
	
 

	
 
	
 
	
 

	
WHS:
	
 

	
 
	
 
	
 

	
Web Hosting Solutions Limited, a United Kingdom private company limited by shares
	
 

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

 

 

	
13

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