Document:

mggi_10-1.htm

  
 
SHARE EXCHANGE AGREEMENT
 
THIS AGREEMENT is made effective as of the 20th day of September, 2016

AMONG:
 
              MAGICSTEM GROUP CORP., a Nevada corporation 
             (“Pubco”)
 
AND:
 
               INFO-NICE LIMITED, a Hong Kong corporation 
              (“Priveco”)

AND:
 
               FONG SZE HUNG, THE SOLE SHAREHOLDER OF PRIVECO
(the “Selling Shareholder”)
 
WHEREAS:
 
A.        The Selling Shareholder is the registered and beneficial owner of all 100 issued and outstanding ordinary shares in the capital of Priveco;
 
B.        Pubco has agreed to issue 5,664,200 common shares in the capital of Pubco as of the Closing Date (as defined herein in Section 1) to the Selling Shareholder and/or his nominee as consideration for the purchase by Pubco of all of the issued and outstanding common shares of Priveco held by the Selling Shareholder; and
 
C.        Upon the terms and subject to the conditions set forth in this Agreement, the Selling Shareholder has agreed to sell all of the issued and outstanding common shares of Priveco held by the Selling Shareholder to Pubco in exchange for common shares of Pubco.
 
THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties covenant and agree as follows:
 
1.         DEFINITIONS
 
1.1       Definitions.    The  following  terms have the  following  meanings,  unless the  context  indicates otherwise:
 
(a)        “Agreement” shall mean this Agreement, and all the exhibits, schedules and other documents attached to or referred to in this Agreement, and all amendments and supplements, if any, to this Agreement;
 
	 
	

	

	 

 
(b)        “Closing” shall mean the completion of the Transaction, in accordance with Section 7 hereof, at which the Closing Documents shall be exchanged by the parties, except for those documents or other items specifically required to be exchanged at a later time;
 
(c)        “Closing Date” shall mean September 30, 2016, or any date otherwise mutually agreed upon by the parties hereto in writing and in accordance with Section 10.6 following the satisfaction or waiver by Pubco and Priveco of the conditions precedent set  out  in Sections 5.1 and 5.2 respectively;
 
(d)        “Closing Documents” shall mean the papers, instruments and documents required to be executed and delivered at the Closing pursuant to this Agreement;
 
(e)        “Exchange Act” shall mean the United States Securities Exchange Act of 1934, as amended;
 
(f)        “GAAP” shall mean United States generally accepted accounting principles applied in a manner consistent with prior periods;
 
(g)        “Liabilities” shall include any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost, expense, obligation or responsibility, fixed or unfixed, known or unknown, asserted choate or inchoate, liquidated or unliquidated, secured or unsecured;
 
(h)        “Priveco Shares” shall mean the 100 ordinary shares of Priveco held by the Selling Shareholder, being all of the issued and outstanding common shares of Priveco beneficially held, either directly or indirectly, by the Selling Shareholder;
 
(i)        “Pubco Securities” shall mean the Pubco Shares;
 
(j)        “Pubco Shares” shall mean the 5,664,200 fully paid and non-assessable common shares of Pubco, to be issued to the Selling Shareholder (or its nominee) by Pubco on the Closing Date;
 
(k)        “SEC” shall mean the Securities and Exchange Commission;
 
(l)        “Securities Act” shall mean the United States Securities Act of 1933, as amended;
 
(m)       “Taxes” shall include international, federal, state, provincial and local  income  taxes, capital gains tax, value-added taxes, franchise, personal property and real property taxes, levies, assessments, tariffs, duties (including any customs duty), business license or other fees, sales, use and any other taxes relating to the assets of the designated party or the business of the designated party for all periods up to and including the Closing Date, together with any related charge or amount, including interest, fines, penalties and additions to tax, if any, arising out of tax assessments; and
 
(n)        “Transaction” shall mean the purchase of the Priveco Shares by Pubco from the Selling Shareholder in consideration for the issuance of the Pubco Securities.
 
	 
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1.2       Schedules.  The following schedules are attached to and form part of this Agreement:
 
	Schedule 1
 
	–
 
	    Selling Shareholder
 

	Schedule 2
 
	–
 
	Certificate of Non-U.S. Shareholder
 

	Schedule 3
 
	–
 
	Directors and Officers of Priveco
 

	Schedule 4
 
	–
 
	Priveco Financial Statements
 

	Schedule 5
 
	–
 
	Directors and Officers of Pubco
 

	Schedule 6
 
	–
 
	Priveco Leases, Subleases, Claims, Capital Expenditures, Taxes and Other Property Interests 

	Schedule 7
 
	–
 
	Priveco Intellectual Property

 
1.3       Currency.  All references to currency referred to in this Agreement are in United States Dollars (US$), unless expressly stated otherwise.
 
2.         THE OFFER, PURCHASE AND SALE OF SHARES
 
2.1       Offer, Purchase and Sale of Shares. Subject to the terms and conditions of this Agreement, the Selling Shareholder hereby covenant and agree to sell, assign and transfer to Pubco, and Pubco hereby covenants and agrees to purchase from the Selling Shareholder all of the Priveco Shares held by the Selling Shareholder.
 
2.2       Consideration. As consideration for the sale of the Priveco Shares by the Selling Shareholder to Pubco, Pubco shall allot and issue the Pubco Securities to the Selling Shareholder or  their nominees in the amount set out opposite the Selling Shareholder’s name in Schedule 1. The Selling Shareholder acknowledges and agrees that the Pubco Securities are being issued pursuant to an exemption from the prospectus and registration requirements of the Securities Act. As required by applicable securities law, the Selling Shareholder agree to abide by all applicable resale restrictions and hold periods imposed by all applicable securities legislation. All certificates representing the Pubco Securities issued on Closing will be endorsed with the following legend pursuant to the Securities Act in order to reflect the fact that  the  Pubco Securities will be issued to the Selling Shareholder pursuant to an exemption from the registration requirements of the Securities Act:
 
“THE SECURITIES REPRESENTED HEREBY HAVE  BEEN  OFFERED  IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).
 
NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES  (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS  OF  THE  1933  ACT  AND  IN  EACH  CASE  ONLY  IN
    	 
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ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.”
 
2.3       Share Exchange Procedure. The Selling Shareholder may exchange his, her or its certificate representing  the  Priveco  Shares  by  delivering  such  certificate  to  Pubco  duly  executed  and endorsed in blank (or accompanied by duly executed stock powers duly endorsed in blank), in each case in proper form for transfer, with signatures guaranteed, and, if applicable, with all stock transfer and  any  other  required  documentary  stamps  affixed  thereto  and  with  appropriate instructions to allow the transfer agent to issue certificates for the Pubco Securities to the holder thereof or their nominee, together with a Certificate of Non-U.S. Shareholder (the “Certificate”) properly  completed  and  signed  by such Selling Shareholder and,  if  applicable,  such  Selling Shareholder’s nominee, a copy of which is set out in Schedule 2.
 
2.4       Fractional  Shares/Warrants.     Notwithstanding any other provision of this Agreement, no certificate for fractional shares or warrants of the Pubco Securities will be issued in the Transaction. In lieu of any such fractional shares or warrants the Selling Shareholder would otherwise be entitled to receive upon surrender of certificates representing the Priveco Shares for exchange pursuant to this Agreement, the Selling Shareholder will be entitled  to  have  such fraction rounded up to the nearest whole number of Pubco Shares and will receive from Pubco a stock certificate and warrant certificate representing same.
 
2.5       Closing Date. The Closing will take place, subject to the terms and conditions of this Agreement, on the Closing Date.
 
2.6       Restricted Securities. The Selling Shareholder acknowledge that the Pubco Securities issued pursuant to the terms and conditions set forth in this Agreement will have such hold periods as are required under applicable securities laws and as a result may not be sold, transferred or otherwise disposed, except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in each case only in accordance with all applicable securities laws.
 
3.         REPRESENTATIONS AND WARRANTIES OF PRIVECO
 
Priveco and the Selling Shareholder, jointly and severally, represent and warrant to Pubco, and acknowledge that Pubco is relying upon such representations and warranties, in connection with the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of Pubco, as follows:
 
3.1       Organization and Good Standing. Priveco is a corporation duly organized, validly existing and in good standing under the laws of Hong Kong and has the requisite corporate power and authority to own, lease and to carry on its business as now being conducted. Priveco is duly qualified to do business and is in good standing as a corporation in each of the jurisdictions in which Priveco owns property, leases property, does business, or is otherwise required to do so, where the failure to be so qualified would have a material adverse effect on the business of Priveco taken as a whole.
 
3.2       Authority. Priveco has all requisite corporate power and authority to execute and deliver this Agreement and any other document contemplated by this Agreement (collectively, the “Priveco Documents”) to be signed by Priveco and to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of each of the Priveco Documents by Priveco and the consummation of the transactions contemplated hereby have been duly authorized by Priveco’s board of directors. No other corporate or shareholder proceedings on the part of Priveco is necessary to authorize such documents or to consummate the transactions contemplated hereby. This Agreement has been, and the other Priveco Documents when executed and delivered by Priveco as contemplated by this Agreement will be, duly executed and delivered by Priveco and this Agreement is, and the other Priveco Documents when executed and delivered by Priveco as  contemplated hereby will  be, valid and binding obligations of Priveco enforceable in accordance with their respective terms except:
    	 
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(a)        as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally;
 
(b)        as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies; and
 
(c)        as limited by public policy.
 
3.3       Capitalization of Priveco.    The entire authorized capital stock and other equity securities of Priveco consists of 100 ordinary shares (the “Priveco Common Stock”). As of the date of this Agreement, there are 100 ordinary shares of Priveco Common Stock issued and outstanding, consisting of the Priveco Shares.  All of the issued and outstanding shares of Priveco Common Stock have been duly authorized, are validly issued, were not issued in violation of any pre- emptive rights and are fully paid and non-assessable, are not subject to pre-emptive rights and were issued in full compliance with the laws of Hong Kong. There are no outstanding options, warrants, subscriptions, conversion rights, or other rights, agreements, or commitments obligating Priveco to issue any additional common shares of Priveco Common Stock, or any other securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire from Priveco any common shares of Priveco Common Stock. There are no agreements purporting to restrict the transfer of the Priveco Common Stock, no voting agreements, shareholders’ agreements, voting trusts, or other arrangements restricting or affecting the voting of the Priveco Common Stock.
 
3.4       Title and Authority of Selling Shareholder. The Selling Shareholder is and will be as of the Closing, the registered and beneficial owner of and will have good and marketable title to all of the Priveco Common Stock held by it and will hold such free and clear of all liens, charges and encumbrances whatsoever; and such Priveco Common Stock held by such Selling Shareholder has been duly and validly issued and are outstanding as fully paid and non-assessable common shares in the capital of Priveco. Each of the Selling Shareholder has due and sufficient right and authority to enter into this Agreement on the terms and conditions herein set forth and to transfer the registered, legal and beneficial title and ownership of the Priveco Common Stock held by it.
 
3.5       Shareholders of Priveco Common Stock. Schedule 1 contains a true and complete list of the holders of all issued and outstanding shares of the Priveco Common Stock  including  each holder’s name, address and number of Priveco Shares held.
 
3.6       Directors and Officers of Priveco. The duly elected or appointed directors and the duly appointed officers of Priveco are as set out in Schedule 3.
 
3.7       Corporate Records of Priveco.  The corporate records of Priveco, as required to be maintained by it pursuant to all applicable laws, are accurate, complete and current in all material respects, and the minute book of Priveco is, in all material respects, correct and contains all records required by all applicable laws, as applicable, in regards to all proceedings, consents, actions and meetings of the shareholders and the board of directors of Priveco.
    	 
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3.8       Non-Contravention. Neither the execution, delivery and performance of this Agreement, nor the consummation of the Transaction, will:
 
(a)        conflict with, result in a violation of, cause a default under (with or without notice, lapse of time or both) or give rise to a right of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of any material benefit under, or result in the creation of any lien, security interest, charge or encumbrance upon any of the material properties or assets of Priveco under any term, condition or provision of any loan or credit agreement, note, debenture, bond, mortgage, indenture, lease or other agreement, instrument, permit, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Priveco or, or any of their respective material property or assets;
 
(b)        violate any provision of the constating documents of Priveco, or any applicable laws; or
 
(c)        violate any order, writ, injunction, decree, statute, rule, or regulation of any court or governmental or regulatory authority applicable to Priveco, or any of their respective material property or assets.
 
3.9       Actions and Proceedings. To the best knowledge of Priveco, there is no basis for and there is no action, suit, judgment, claim, demand or proceeding outstanding or pending, or threatened against or affecting Priveco, or which involves any of the business, or the properties or assets of Priveco that, if adversely resolved or determined, would have a material adverse effect on the business, operations, assets, properties, prospects, or conditions of Priveco (a “Priveco Material Adverse Effect”). There is no reasonable basis for any claim or action that, based upon the likelihood of its being asserted and its success if asserted, would have such a Priveco Material Adverse Effect.
 
3.10     Compliance.
 
(a)        To the best knowledge of Priveco, Priveco is in compliance with, is not in default or violation in any material respect under, and has not been charged with or received any notice at any time of any material violation of any statute, law, ordinance, regulation, rule, decree or other applicable regulation to the business or operations of Priveco;
 
(b)        To the best knowledge of Priveco, Priveco is not subject to any judgment, order or decree entered in any lawsuit or proceeding applicable to its business and operations that would constitute a Priveco Material Adverse Effect;
 
(c)        Priveco has duly filed all reports and returns required to be filed by it with governmental authorities in Hong Kong and has obtained all governmental permits and other governmental consents, except as may be required after the execution of this Agreement. All of such permits and consents are in full force and effect, and no proceedings for the suspension or cancellation of any of them, and no investigation relating to any of them, is pending or to the best knowledge of Priveco, threatened, and none of them will  be adversely affected by the consummation of the Transaction; and
 
	 
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(d)        Priveco has operated in material compliance with all laws, rules, statutes, ordinances, orders and regulations applicable to its business. Priveco has not received any notice of any violation thereof, nor is Priveco aware of any valid basis therefore.
 
3.11     Filings, Consents and Approvals. No filing or registration with, no notice to and no permit, authorization, consent, or approval of any public or governmental body or authority or other person or entity is necessary for the consummation by Priveco or any of its subsidiaries of the Transaction contemplated by this Agreement or to enable Pubco to continue to conduct Priveco’s business after the Closing Date in a manner which is consistent with that in which the business is presently conducted.
 
3.12     Financial Representations. Schedule 4 hereto contains true, correct, and complete copies of the unaudited balance sheet for Priveco for the nine month period ended and dated as of July 31, 2016 (the “Priveco Accounting Date”), and the audited balance sheet for Priveco for the fiscal year ended October 31, 2015 together with related statements of income, cash flows, and changes in shareholder’s equity for such interim period and fiscal years then ended (collectively, the “Priveco Financial Statements”).  The Priveco Financial Statements:
 
(a)        are in accordance with the books and records of Priveco;
 
(b)        present fairly the financial condition of Priveco as of the respective dates indicated and the results of operations for such periods; and
 
(c)        have been prepared in accordance with GAAP by a PCAOB registered audit firm.   Priveco  has  not  received  any  advice  or  notification  from  its  independent  certified  public
 
accountants that Priveco has used any improper accounting practice that would have the effect of
 
not reflecting  or incorrectly reflecting in the  Priveco Financial  Statements or  the books and records of Priveco, any properties, assets, Liabilities, revenues, or expenses. The books, records, and accounts of Priveco accurately and fairly reflect, in reasonable detail, the assets, and Liabilities of Priveco. Priveco has not engaged in any transaction, maintained any bank account, or used any funds of Priveco, except for transactions, bank accounts, and funds which have been and are reflected in the normally maintained books and records of Priveco.
 
3.13     Absence of Undisclosed Liabilities. Priveco has no material Liabilities or obligations either direct or indirect, matured or unmatured, absolute, contingent or otherwise that exceed $5,000, which:
 
(a)        are not set forth in the Priveco Financial Statements or have not heretofore been paid or discharged;
 
(b)        did not arise in the regular and ordinary course of business under any agreement, contract, commitment, lease or plan specifically disclosed in writing to Pubco; or
 
(c)        have not been incurred in amounts and pursuant to practices consistent with past business practice, in or as a result of the regular and ordinary course of its business since the date of the last Priveco Financial Statements
    	 
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3.14     Tax Matters.
 
(a)        As of the date hereof:
 
(i)        Priveco has timely filed all tax returns in connection with any Taxes which are required to be filed on or prior to the date hereof, taking into account any extensions of the filing deadlines which have been validly granted to Priveco or its subsidiaries, and
 
(ii)       all such returns are true and correct in all material respects;
 
(b)        Priveco has paid all Taxes that have become or are due with respect to any period ended on or prior to the date hereof, and has established an adequate reserve therefore on its balance sheets for those Taxes not yet due and payable, except for any Taxes the non- payment of which will not have a Priveco Material Adverse Effect;
 
(c)        Priveco is not presently under or has received notice of, any contemplated investigation or audit by regulatory or governmental agency of body or any foreign or state taxing authority concerning any fiscal year or period ended prior to the date hereof;
 
(d)        all Taxes required to be withheld on or prior to the date hereof from employees for income Taxes, social security Taxes, unemployment Taxes and other similar withholding Taxes have been properly withheld and, if required on or prior to the date hereof, have been deposited with the appropriate governmental agency; and
 
(e)        to the best knowledge of Priveco, the Priveco Financial Statements contain full provision for all Taxes including any deferred Taxes that may be assessed to Priveco or its subsidiaries for the accounting period ended on the Priveco Accounting Date or for any prior period in respect of any transaction, event or omission occurring, or any profit earned, on or prior to the Priveco Accounting Date or for any profit earned by Priveco on or prior to the Priveco Accounting Date or for which Priveco is accountable up to such date and all contingent Liabilities for Taxes have been provided for or disclosed in the Priveco Financial Statements.
 
3.15     Absence of Changes.  Since the Priveco Accounting Date, Priveco  has not:
 
(a)        incurred any Liabilities, other than Liabilities incurred in the ordinary course of business consistent with past practice, or discharged or satisfied any lien or encumbrance, or paid any Liabilities, other than in the ordinary course of business consistent with past practice, or failed to pay or discharge when due any Liabilities of which the failure to pay or discharge has caused or will cause any material damage or risk of material loss to it or any of its assets or properties;
 
(b)        sold, encumbered, assigned or transferred any material fixed assets or properties except for ordinary course business transactions consistent with past practice;
 
(c)        created, incurred, assumed or guaranteed any indebtedness for money borrowed, or mortgaged, pledged or subjected any of the material assets or properties of Priveco or its subsidiaries to any mortgage, lien, pledge, security interest, conditional sales contract or other encumbrance of any nature whatsoever;
 
	 
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(d)        made or suffered any amendment or termination of any material agreement, contract, commitment, lease or plan to which it is a party or by which it is bound, or cancelled, modified or waived any substantial debts or claims held by it or waived any rights of substantial value, other than in the ordinary course of business;
 
(e)        declared, set aside or paid any dividend or made or agreed to make any other distribution or payment in respect of its capital shares or redeemed, purchased or otherwise acquired or agreed to redeem, purchase or acquire any of its capital shares or equity securities;
 
(f)        suffered any damage, destruction or loss, whether or not covered by insurance, that materially and adversely effects its business, operations, assets, properties or prospects;
 
(g)        suffered any material adverse change in its business, operations, assets, properties, prospects or condition (financial or otherwise);
 
(h)        received notice or had knowledge of any actual or threatened labour trouble, termination, resignation, strike or other occurrence, event or condition of any similar character which has had or might have an adverse effect on its business, operations, assets, properties or prospects;
 
(i)        made commitments or agreements for capital expenditures or capital additions or betterments exceeding in the aggregate $5,000;
 
(j)        other than in the ordinary course of business, increased the salaries or other compensation of, or made any advance (excluding advances for ordinary and necessary business expenses) or loan to, any of its employees or directors or made any increase in, or any addition to, other benefits to which any of its employees or directors may be entitled;
 
(k)        entered into any transaction other than in the ordinary course of business consistent with past practice; or
 
(l)        agreed, whether in writing or orally, to do any of the foregoing.
 
3.16     Absence of Certain Changes or Events.  Since the Priveco Accounting Date, there has not been:
 
(a)        a Priveco Material Adverse Effect; or
 
(b)        any material change by Priveco in its accounting methods, principles or practices.
 
3.17     Subsidiaries. Priveco does not have any subsidiaries or agreements of any nature to acquire any subsidiary or to acquire or lease any other business operations.
 
3.18     Personal Property. Priveco possesses, and has good and marketable title of all property necessary for the continued operation of the business of Priveco as presently conducted and as represented to Pubco. All such property is used in the business of Priveco. All such property is in reasonably good operating condition (normal wear and tear excepted), and is reasonably fit for the purposes for which such property is presently used. All material equipment, furniture, fixtures and other tangible personal property and assets owned or leased by Priveco is owned by Priveco free and clear of all liens, security interests, charges, encumbrances, and other adverse claims, except as disclosed in Schedule 6.
    	 
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3.19     Intellectual Property
 
(a)        Intellectual Property Assets. Priveco own or hold an interest in all intellectual property assets necessary for the operation of the business of Priveco as it is currently conducted (collectively, the “Intellectual Property Assets”), including:
 
(i)        all functional business names,  trading  names,  registered  and  unregistered trademarks, service marks, and applications (collectively, the “Marks”);
 
(ii)       all patents, patent applications, and inventions, methods, processes and discoveries that may be patentable (collectively, the “Patents”);
 
(iii)      all copyrights in both published works and unpublished works (collectively, the “Copyrights”); and
 
(iv)       all know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology, plans, drawings, and blue prints owned, used, or licensed by Priveco as licensee or licensor (collectively, the “Trade Secrets”).
 
(b)        Agreements. Schedule 7 contains a complete and accurate list and summary description, including any  royalties  paid  or  received  by  Priveco,  of all  contracts  and  agreements relating  to  the  Intellectual  Property  Assets  to  which  Priveco  is  a  party  or  by  which Priveco is bound, except for any license implied by the sale of a product and perpetual, paid-up licenses  for commonly available software programs with a value of less than
 
$500 under which Priveco is the licensee.  To the best knowledge of Priveco, there are no
 
outstanding or threatened disputes or disagreements with respect to any such agreement.
 
(c)        Intellectual Property and Know-How Necessary for the Business. Except as set forth in Schedule 7, Priveco is the owner of all right, title, and interest in and to each of the Intellectual Property Assets, free and clear of all liens, security interests, charges, encumbrances, and other adverse claims, and has the right to use without payment to a third party of all the Intellectual Property Assets. Except as set forth in Schedule 7, all former and current employees and contractors of Priveco have executed written contracts, agreements or other undertakings with Priveco that assign all rights to any inventions, improvements, discoveries, or information relating to the business of Priveco. No employee, director, officer or shareholder of Priveco owns directly or indirectly in whole or ion part, any Intellectual Property Asset which Priveco is presently using or which is necessary for the conduct of its business.  To the best knowledge of Priveco, no employee or contractor of Priveco  has entered into any contract or agreement that restricts or limits in any way the scope or type of work in which the employee may be engaged or requires the employee to transfer, assign, or disclose information concerning his work to anyone other than Priveco.
 
(d)        Patents. Except as set out in Schedule 7, Priveco does not hold ay right, title or interest in and to any Patent and Priveco has not filed any patent application with any third party. To the best knowledge of Priveco, none of the products manufactured and sold, nor any process or know-how used, by Priveco infringes or is alleged to infringe any patent or other proprietary night of any other person or entity.
    	 
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(e)        Trademarks. Except as set out in Schedule 7, Priveco does not hold any right, title or interest in and to any Mark and Priveco has not registered or filed any application to register any Mark with any third party. To the best knowledge of Priveco, none of the Marks, if any, used by Priveco infringes or is alleged to infringe any trade name, trademark, or service mark of any third party.
 
(f)        Copyrights. Schedule 7 contains a complete and accurate list and summary description of all Copyrights. Priveco is the owner of all right, title, and interest in and to each of the Copyrights, free and clear of all liens, security interests, charges, encumbrances, and other adverse claims. If applicable, all registered Copyrights are currently in compliance with formal legal requirements, are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due within ninety days after the Closing Date. To the best knowledge of Priveco, no Copyright is infringed or has been challenged or threatened in any way and none of the subject matter of any of the Copyrights infringes or is alleged to infringe any copyright of any third party or is a derivative work based on the work of a third party. All works encompassed by the Copyrights have been marked with the proper copyright notice.
 
(g)        Trade  Secrets.    Priveco has taken all reasonable precautions to protect the secrecy, confidentiality, and value of its Trade Secrets. Priveco has good title and an absolute right to use the Trade Secrets. The Trade Secrets are not part of the public knowledge or literature, and to the best knowledge of Priveco, have not been used, divulged, or appropriated either for the benefit of any person or entity or to the detriment of Priveco. No Trade Secret is subject to any adverse claim or has been challenged or threatened in any way.
 
3.20     Employees and Consultants. All employees and consultants (if applicable) of Priveco have been paid all salaries, wages, income and any other sum due and owing to them by Priveco, as at the end of the most recent completed pay period. Priveco is not aware of any labor conflict with any employees that might reasonably be expected to have a Priveco Material Adverse Effect. To the best knowledge of Priveco, no employee of Priveco is in violation of any term of any employment contract, non-disclosure agreement, non-competition agreement or any other contract or agreement relating to the relationship of such employee with Priveco or any other nature of the business conducted or to be conducted by Priveco.
 
3.21     Real Property. Priveco does not own any real property. Each of the leases, subleases, claims or other real property interests (collectively, the “Leases”) to which Priveco is a party or is bound, as set out in Schedule 6, is legal, valid, binding, enforceable and in full force and effect in all material respects. All rental and other payments required to be paid by Priveco pursuant to any such Leases have been duly paid and no event has occurred which, upon the passing of time, the giving of notice, or both, would constitute a breach or default by any party under any of the Leases. The Leases will continue to be legal, valid, binding, enforceable and in full force and effect on identical terms following the Closing Date. Priveco has not assigned, transferred, conveyed, mortgaged, deeded in trust, or encumbered any interest in the Leases or the leasehold property pursuant thereto.
 
3.22     Material Contracts and Transactions. Priveco does not have any material contract, agreement, license, permit, arrangement, commitment, instrument or contract to which Priveco is a party that is material to its business or operations.
    	 
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3.23     Certain Transactions. Priveco is not a guarantor or indemnitor of any indebtedness of any third party, including any person, firm or corporation.
 
3.24     No Brokers. Priveco has not incurred any independent obligation or liability to any party for any brokerage fees, agent’s commissions, or finder’s fees in connection with the Transaction contemplated by this Agreement.
 
3.25     Completeness of Disclosure. No representation or warranty by Priveco in this Agreement nor any certificate, schedule, statement, document or instrument furnished or to be furnished to Pubco pursuant hereto contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact required to be stated herein or therein or necessary to make any statement herein or therein not materially misleading.
 
Notwithstanding section 10.1 hereof, the representations and warranties contained in this section shall survive Closing indefinitely.
 
4.         REPRESENTATIONS AND WARRANTIES OF PUBCO
 
Pubco represents and warrants to Priveco and the Selling Shareholder and acknowledges that Priveco and the Selling Shareholder are relying upon such representations and warranties in connection with  the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of Priveco or the Selling Shareholder, as follows:
 
4.1       Organization and Good Standing. Pubco is duly incorporated, 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, lease and to carry on its business as now being conducted. Pubco is qualified to do business and is in good standing as a foreign corporation in each of the jurisdictions in which it owns property, leases property, does business, or is otherwise required to do so, where the failure to be so qualified would have a material adverse effect on the businesses, operations, or financial condition of Pubco.
 
4.2       Authority. Pubco has all requisite corporate power and authority to execute and deliver this Agreement and any other document contemplated by this Agreement (collectively, the “Pubco Documents”) to be signed by Pubco and to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of each of the Pubco Documents by Pubco and the consummation by Pubco of the transactions contemplated hereby have been duly authorized by its board of directors and no other corporate or shareholder proceedings on the part of Pubco is necessary to authorize such documents or to consummate the transactions contemplated hereby. This Agreement has been, and the other Pubco Documents when executed and delivered by Pubco as contemplated by this Agreement will be, duly executed and delivered by Pubco and this Agreement is, and the other Pubco Documents when executed and delivered by Pubco, as contemplated hereby will be, valid and binding obligations of Pubco enforceable in accordance with their respective terms, except:
 
(a)        as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally;
 
(b)        as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies; and
 
(c)        as limited by public policy.
    	 
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4.3       Capitalization of Pubco. The entire authorized capital stock and other equity securities of Pubco consists of 75,000,000 shares of common stock with a par value of $0.001 (the “Pubco Common Stock”). As of the date of this Agreement, there are 10,206,000 shares of Pubco Common Stock issued and outstanding. All of the issued and outstanding shares of Pubco Common Stock have been duly authorized, are validly issued, were not issued in violation of any pre-emptive rights and are fully paid and non-assessable, are not subject to pre-emptive rights and were issued in full compliance with all federal, state, and local laws, rules and regulations. Except as contemplated by this Agreement, there are no outstanding options, warrants, subscriptions, phantom shares, conversion rights, or other rights, agreements, or commitments obligating Pubco to issue any additional shares of Pubco Common Stock, or any other securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire from Pubco any shares of Pubco Common Stock as of the date of this Agreement. There are no agreements purporting to restrict the transfer of the Pubco Common Stock, no voting agreements, voting trusts, or other arrangements restricting or affecting the voting of the Pubco Common Stock.
 
4.4       Directors and Officers of Pubco. The duly elected or appointed directors and the duly appointed officers of Pubco are as listed on Schedule 5.
 
4.5       Corporate Records of Pubco. The corporate records of Pubco, as required to be maintained by it pursuant to the laws of the State of Nevada, are accurate, complete and current in all material respects, and the  minute book of Pubco is, in all material  respects, correct and contains all material records required by the law of the State of Nevada in regards to all proceedings, consents, actions and meetings of the shareholders and the board of directors of Pubco.
 
4.6       Non-Contravention. Neither the execution, delivery and performance of this Agreement, nor the consummation of the Transaction, will:
 
(a)        conflict with, result in a violation of, cause a default under (with or without notice, lapse of time or both) or give rise to a right of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of any material benefit under, or result in the creation of any lien, security interest, charge or encumbrance upon any of the material properties or assets of Pubco under any term, condition or provision of any loan or credit agreement, note, debenture, bond, mortgage, indenture, lease or other agreement, instrument, permit, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Pubco or any of its material property or assets;
 
(b)        violate any provision of the applicable incorporation or charter documents of Pubco; or
 
(c)        violate any order, writ, injunction, decree, statute, rule, or regulation of any court or governmental or regulatory authority applicable to Pubco or any of its material property or assets.
 
4.7       Validity of Pubco Common Stock Issuable upon the Transaction.  The Pubco Shares to be issued to the Selling Shareholder upon consummation of the Transaction in accordance with this Agreement will, upon issuance, have been duly and validly authorized and, when so issued in accordance with the terms of this Agreement, will be duly and validly issued, fully paid and non- assessable.
 
4.8       Actions and Proceedings. To the best knowledge of Pubco, there is no claim, charge, arbitration, grievance, action, suit, investigation or proceeding by or before any court, arbiter, administrative agency  or  other  governmental  authority  now  pending  or,  to  the  best  knowledge  of  Pubco, threatened against Pubco which involves any of the business, or the properties or assets of Pubco that, if adversely resolved or determined, would have a material adverse effect on the business, operations, assets,  properties, prospects  or conditions  of  Pubco  taken as a whole (a  “Pubco Material Adverse Effect”). There is no reasonable basis for any claim or action that, based upon the likelihood of its being asserted and its success if asserted, would have such a Pubco Material Adverse Effect.
    	 
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4.9       Compliance.
 
(a)        To the  best knowledge  of  Pubco, Pubco is in compliance with, is  not  in default or violation in any material respect under, and has not been charged with or received any notice at any time of any material violation of any statute, law, ordinance, regulation, rule, decree or other applicable regulation to the business or operations of Pubco;
 
(b)        To the best knowledge of Pubco, Pubco is not subject to any judgment, order or decree entered in any lawsuit or proceeding applicable to its business and operations that would constitute a Pubco Material Adverse Effect;
 
(c)        Pubco has duly filed all reports and returns required to be filed by it with governmental authorities and has obtained all governmental permits and other governmental consents, except as may be required after the execution of this Agreement. All of such permits and consents are in full force and effect, and no proceedings for the suspension or cancellation of any of them, and no investigation relating to any of them, is pending or to the best knowledge of Pubco, threatened, and none of them will be affected in a material adverse manner by the consummation of the Transaction; and
 
(d)        Pubco has operated in material compliance  with all laws,  rules, statutes,  ordinances, orders and regulations applicable to its business. Pubco has not received any notice of any violation thereof, nor is Pubco aware of any valid basis therefore.
 
4.10     Filings, Consents and Approvals. No filing or registration with, no notice to and no permit, authorization, consent, or approval of any public or governmental body or authority or other person or entity is necessary for the consummation by Pubco of the Transaction contemplated by this Agreement to continue to conduct its business after the Closing Date in a manner which is consistent with that in which it is presently conducted.
 
4.11     SEC Filings. Pubco has furnished or made available to Priveco and the Selling Shareholder a true and complete copy of each report, schedule, registration statement and proxy statement filed by Pubco with the SEC (collectively, and as such documents have since the time of their filing been amended, the “Pubco SEC Documents”). As of their respective dates, the Pubco SEC Documents complied in all material respects with the requirements of the Securities Act, or the Exchange Act, as the case may be, and the rules and regulations of the SEC thereunder applicable to such Pubco SEC Documents.
 
4.12     Financial  Representations.    Included with the Pubco SEC Documents are true, correct, and complete copy of the audited balance sheet for Pubco dated as of October 31, 2015 and an unaudited balance sheet for Pubco dated as of July 31, 2016 (the “Pubco Accounting Date”), together with related statements of income, cash flows, and changes in shareholder’s equity for the fiscal year and interim period then ended (collectively, the “Pubco Financial Statements”). The Pubco Financial Statements:
 
	 
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(a)        are in accordance with the books and records of Pubco;
 
(b)        present fairly the financial condition of Pubco as of the respective dates indicated and the results of operations for such periods; and
 
(c)        have been prepared in accordance with GAAP.
 
Pubco has not received any advice or notification from its independent certified public accountants that Pubco has used any improper accounting practice that would have the effect of not reflecting  or incorrectly reflecting in the Pubco Financial Statements or the books and records of Pubco, any properties, assets, Liabilities, revenues, or expenses. The books, records, and accounts of Pubco accurately and fairly reflect, in reasonable detail, the assets, and Liabilities of Pubco. Pubco has not engaged in any transaction, maintained any bank account, or used any funds of Pubco, except for transactions, bank accounts, and funds which have been and are reflected in the normally maintained books and records of Pubco.
 
4.13     Absence of Undisclosed Liabilities.  Pubco has no material Liabilities or obligations either direct or indirect, matured or unmatured, absolute, contingent or otherwise, which:
 
(a)        are not set forth in the Pubco Financial Statements or have not heretofore been paid or discharged;
 
(b)        did not arise in the regular and ordinary course of business under any agreement, contract, commitment, lease or plan specifically disclosed in writing to Priveco; or
 
(c)        have not been incurred in amounts and pursuant to practices consistent with past business practice, in or as a result of the regular and ordinary course of its business since the date of the last Pubco Financial Statements.
 
4.14     Tax Matters.
 
(a)        As of the date hereof:
 
(i)        Pubco has timely filed all tax returns in connection with any Taxes which are required to be filed on or prior to the date hereof, taking into account any extensions of the filing deadlines which have been validly granted to them, and
 
(ii)       all such returns are true and correct in all material respects;
 
(b)        Pubco has paid all Taxes that have become or are due with respect to any period ended on or prior to the date hereof;
 
(c)        Pubco is not presently under and has not received notice of, any contemplated investigation or audit by the Canada Revenue Agency or the Internal Revenue Service or any foreign or state taxing authority concerning any fiscal year or period ended prior to the date hereof;
 
(d)        All Taxes required to be withheld on or prior to the date hereof from employees for income Taxes, social security Taxes, unemployment Taxes and other similar withholding Taxes have been properly withheld and, if required on or prior to the date hereof, have been deposited with the appropriate governmental agency; and
 
	 
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(e)        To the best knowledge of Pubco, the Pubco Financial Statements contain full provision for all Taxes including any deferred Taxes that may be assessed to Pubco for the accounting period ended on the Pubco Accounting Date or for any prior period in respect of any transaction, event or omission occurring, or any profit earned, on or prior to the Pubco Accounting Date or for any profit earned by Pubco on or prior to the Pubco Accounting Date or for which Pubco is accountable up to such date and all contingent Liabilities for Taxes have been provided for or disclosed in the Pubco Financial Statements.
 
4.15     Absence of Changes.  Since the Pubco Accounting Date, except as disclosed in the Public SEC Documents and except as contemplated in this Agreement, Pubco has not:
 
(a)        incurred any Liabilities, other than Liabilities incurred in the ordinary course of business consistent with past practice, or discharged or satisfied any lien or encumbrance, or paid any Liabilities, other than in the ordinary course of business consistent with past practice, or failed to pay or discharge when due any Liabilities of which the failure to pay or discharge has caused or will cause any material damage or risk of material loss to it or any of its assets or properties;
 
(b)        sold, encumbered, assigned or transferred any material fixed assets or properties;
 
(c)        created, incurred, assumed or guaranteed any indebtedness for money borrowed, or mortgaged, pledged or subjected any of the material assets or properties of Pubco to any mortgage, lien, pledge, security interest, conditional sales contract or other encumbrance of any nature whatsoever;
 
(d)        made or suffered any amendment or termination of any material agreement, contract, commitment, lease or plan to which it is a party or by which it is bound, or cancelled, modified or waived any substantial debts or claims held by it or waived any rights of substantial value, other than in the ordinary course of business;
 
(e)        declared, set aside or paid any dividend or made or agreed to make any other distribution or payment in respect of its capital shares or redeemed, purchased or otherwise acquired or agreed to redeem, purchase or acquire any of its capital shares or equity securities;
 
(f)        suffered any damage, destruction or loss, whether or not covered by insurance, that materially and adversely effects its business, operations, assets, properties or prospects;
 
(g)        suffered any material adverse change in its business, operations, assets, properties, prospects or condition (financial or otherwise);
 
(h)        received notice or had knowledge of any actual or threatened labor trouble, termination, resignation, strike or other occurrence, event or condition of any similar character which has had or might have an adverse effect on its business, operations, assets, properties or prospects;
 
(i)        made commitments or agreements for capital expenditures or capital additions or betterments exceeding in the aggregate $5,000;
 
(j)        other than in the ordinary course of business, increased the salaries or other compensation of,  or  made  any  advance  (excluding  advances  for  ordinary  and  necessary  business expenses) or loan to, any of its employees or directors or made any increase in, or any addition to, other benefits to which any of its employees or directors may be entitled;
    	 
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(k)        entered into any transaction other than in the ordinary course of business consistent with past practice; or
 
(l)        agreed, whether in writing or orally, to do any of the foregoing.
 
4.16     Absence of Certain Changes or Events. Since the Pubco Accounting Date, except as and to the extent disclosed in the Pubco SEC Documents, there has not been:
 
(a)        a Pubco Material Adverse Effect; or
 
(b)        any material change by Pubco in its accounting methods, principles or practices.
 
4.17     Subsidiaries. Pubco does not have any subsidiaries or agreements of any nature to acquire any subsidiary or to acquire or lease any other business operations, except as disclosed in the Pubco SEC Documents.
 
4.18     Personal  Property.    There are no material equipment, furniture, fixtures and other tangible personal property and assets owned or leased by Pubco, except as disclosed in the Pubco SEC Documents.
 
4.19     Employees  and  Consultants.    Pubco does not  have any employees  or consultants,  except as disclosed in the Pubco SEC Documents.
 
4.20     Material Contracts and Transactions. Other than as expressly contemplated by this Agreement, there are no material contracts, agreements, licenses, permits, arrangements, commitments, instruments, understandings or contracts, whether written or oral, express or implied, contingent, fixed or otherwise, to which Pubco is a party except as disclosed in writing to Priveco or as disclosed in the Pubco SEC Documents.
 
4.21     No Brokers. Pubco has not incurred any obligation or liability to any party for any brokerage fees, agent’s commissions, or finder’s fees in connection with the Transaction contemplated by this Agreement.
 
4.22     Completeness of Disclosure. No representation or warranty by Pubco in this Agreement nor any certificate, schedule, statement, document or instrument furnished or to be furnished to Priveco pursuant hereto contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact required to be stated herein or therein or necessary to make any statement herein or therein not materially misleading.
 
5.         CLOSING CONDITIONS
 
5.1       Conditions  Precedent  to  Closing  by  Pubco.    The obligation of Pubco to consummate the Transaction is subject to the satisfaction or written waiver of the conditions set forth below by a date mutually agreed upon by the parties hereto in writing and in accordance with Section 10.6. The Closing of the Transaction contemplated by this Agreement will be deemed to mean a waiver of all conditions to Closing. These conditions precedent are for the benefit of Pubco and may be waived by Pubco in its sole discretion.
 
	 
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(a)        Representations and Warranties. The representations and warranties of Priveco and the Selling Shareholder set forth in this Agreement will be true, correct and complete in all respects as of the Closing Date, as though made on and as of the Closing Date and Priveco will have delivered to Pubco a certificate dated as of the Closing Date, to the effect that the representations and warranties made by Priveco in this Agreement are true and correct.
 
(b)        Performance.     All of the covenants and obligations that Priveco and the Selling Shareholder are required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been performed and complied with in all material respects.
 
(c)        Transaction Documents. This Agreement, the Priveco Documents, the Priveco Financial Statements and all other documents necessary or reasonably required to consummate the Transaction, all in form and substance reasonably satisfactory to Pubco, will have been executed and delivered to Pubco.
 
(d)        Third Party Consents. Pubco will have received duly executed copies of all third party consents and approvals contemplated by this Agreement, in form and substance reasonably satisfactory to Pubco.
 
(e)        Employment  Agreements.    Priveco will not have any agreements or arrangements regarding the employment of employees of Priveco, which would constitute employees reasonably necessary to operate the business of Priveco substantially as presently operated.
 
(f)        No Material Adverse Change.   No Priveco Material Adverse Effect will have occurred since the date of this Agreement.
 
(g)        No Action.  No suit, action, or proceeding will be pending or threatened which would:
 
(i)        prevent  the  consummation  of  any  of  the  transactions  contemplated  by  this Agreement; or
 
(ii)       cause the Transaction to be rescinded following consummation.
 
(h)        Outstanding Shares. Priveco will have no more than 100 shares of Priveco Common Stock issued and outstanding on the Closing Date.
 
(i)        Delivery  of  Financial  Statements.  Priveco  will  have  delivered  to  Pubco  the  Priveco Financial Statements, which financial statements will include audited financial statements, prepared in accordance with GAAP and audited by an independent auditor registered with the Public Company Accounting Oversight Board in the United States.
 
(j)        Due  Diligence  Review  of  Financial  Statements.    Pubco and its accountants  will  be reasonably  satisfied  with  their  due  diligence  investigation  and  review  of  the  Priveco Financial Statements.
 
(k)        Due Diligence Generally. Pubco and its solicitors will be reasonably satisfied with their due diligence investigation of Priveco that is reasonable and customary in a transaction of a similar nature to that contemplated by the Transaction, including:
 
	 
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(i)        materials, documents and information in the possession and control of Priveco and the Selling Shareholder which are reasonably germane to the Transaction;
 
(ii)       a physical inspection of the assets of Priveco by Pubco or its representatives; and
 
(iii)      title to the material assets of Priveco.
 
(l)        Compliance with Securities Laws. Pubco will have received evidence satisfactory to Pubco that the Pubco Securities issuable in the Transaction will be issuable without registration pursuant to the Securities Act in reliance on a safe harbor from the registration requirements of the Securities Act provided by Regulation S.
 
In order to establish the availability of the safe harbor from the registration requirements of the Securities Act for the issuance of Pubco Securities to each Selling Shareholder or their nominees, Priveco will deliver to Pubco on Closing, a Certificate duly executed by each Selling Shareholder.
 
5.2       Conditions  Precedent  to  Closing  by  Priveco.    The obligation of Priveco and the Selling Shareholder to consummate the Transaction is subject to the satisfaction or written waiver of the conditions set forth below by a date mutually agreed upon by the parties hereto in writing and in accordance with Section 10.6.  The Closing of the Transaction will be deemed to mean a waiver of all conditions to Closing. These conditions precedent are for the benefit of Priveco and the Selling Shareholder and may be waived by Priveco and the Selling Shareholder in their discretion.
 
(a)        Representations and Warranties. The representations and warranties of Pubco set forth in this Agreement will be true, correct and complete in all respects as of the Closing Date, as though made on and as of the Closing Date and Pubco will have delivered to Priveco a certificate dated the Closing Date, to the effect that the representations and warranties made by Pubco in this Agreement are true and correct.
 
(b)        Performance. All of the covenants and obligations that Pubco are required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been performed and complied with in all material respects. Pubco must have delivered each of the documents required to be delivered by it pursuant to this Agreement.
 
(c)        Transaction Documents. This Agreement, the Pubco Documents and all other documents necessary or reasonably required to consummate the Transaction, all in form and substance reasonably satisfactory to Priveco, will have been executed and delivered by Pubco.
 
(d)        Third Party Consents. Priveco will have received from Pubco duly executed copies of all third-party consents, permits, authorisations and approvals of any public, regulatory (including the SEC) or governmental body or authority or person or entity contemplated by this Agreement, in the form and substance reasonably satisfactory to Priveco.
 
(e)        No Material Adverse Change. No Pubco Material Adverse Effect will have occurred since the date of this Agreement.
 
(f)        No Action. No suit, action, or proceeding will be pending or threatened before any governmental or regulatory authority wherein an unfavorable judgment, order, decree, stipulation, injunction or charge would:
    	 
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(i)        prevent  the  consummation  of  any  of  the  transactions  contemplated  by  this Agreement; or
 
(ii)       cause the Transaction to be rescinded following consummation.
 
(g)        Outstanding Shares
 
On the Closing Date, Pubco will have no more than 10,206,000 common shares issued and outstanding in the capital of Pubco.
 
(h)        Public Market. On the Closing Date, the shares of Pubco Common Stock will be quoted on the OTC Markets.
 
(i)        Due Diligence Review of Financial Statements. Priveco and its accountants will be reasonably  satisfied  with  their  due  diligence  investigation  and  review  of  the  Pubco Financial Statements, the Pubco SEC Documents, and the contents thereof, prepared in accordance with GAAP.
 
(j)        Due Diligence Generally. Priveco will be reasonably satisfied with their due diligence investigation of Pubco that is reasonable and customary in a transaction of a similar nature to that contemplated by the Transaction.
 
6.         ADDITIONAL COVENANTS OF THE PARTIES
 
6.1       Notification of Financial Liabilities. Priveco will immediately notify Pubco in accordance with Section 10.6 hereof, if Priveco receives any advice or notification from its independent certified public accounts that Priveco has used any improper accounting practice that would have the effect of not reflecting or incorrectly reflecting in the books, records, and accounts of Priveco, any properties, assets, Liabilities, revenues, or expenses. Notwithstanding any statement to the contrary in this Agreement, this covenant will survive Closing and continue in full force and effect.
 
6.2       Access and Investigation. Between the date of this Agreement and the Closing Date, Priveco, on the one hand, and Pubco, on the other hand, will, and will cause each of their respective representatives to:
 
(a)        afford the other and its representatives full and free access to its personnel, properties, assets, contracts, books and records, and other documents and data;
 
(b)        furnish the other and its representatives with copies of all such contracts, books and records, and other existing documents and data as required by this Agreement and as the other may otherwise reasonably request; and
 
(c)        furnish the other and its representatives with such additional financial, operating, and other data and information as the other may reasonably request.
 
All of such access, investigation and communication by a party and its representatives will be conducted during normal business hours and in a manner designed not to interfere unduly with the normal business operations of the other party. Each party will instruct its auditors to co- operate with the other party and its representatives in connection with such investigations.
 
	 
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6.3       Confidentiality. All information regarding the business of Priveco including, without limitation, financial information that Priveco provides to Pubco during Pubco’s due diligence investigation of Priveco will be kept in strict confidence by Pubco and will not be used (except in connection with due diligence), dealt with, exploited or commercialized by Pubco or disclosed to any third party (other than Pubco’s professional accounting and legal advisors) without the prior written consent of Priveco. If the Transaction contemplated by this Agreement does not proceed for any reason, then upon receipt of a written request from Priveco, Pubco will immediately return to Priveco (or as directed by Priveco) any information received regarding Priveco’s business. Likewise, all information regarding the business of Pubco including, without limitation, financial information that Pubco provides to Priveco during its due diligence investigation of Pubco will be kept in strict confidence by Priveco and will not be used (except in connection with due diligence), dealt with, exploited or commercialized by Priveco or disclosed to any third party (other than Priveco’s professional accounting and legal advisors) without Pubco’s prior written consent. If the Transaction contemplated by this Agreement does not proceed for any reason, then upon receipt of a written request from Pubco, Priveco will immediately return to Pubco (or as directed by Pubco) any information received regarding Pubco’s business.
 
6.4       Notification. Between the date of this Agreement and the Closing Date, each of the parties to this Agreement will promptly notify the other parties in writing if it becomes aware of any fact or condition that causes or constitutes a material breach of any of its representations and warranties as of the date of this Agreement, if it becomes aware of the occurrence after the date of this Agreement of any fact or condition that would cause or constitute a material breach of any such representation or warranty had such representation or warranty been made as of the time of occurrence or discovery of such fact or condition. Should any such fact or condition require any change in the Schedules relating to such party, such party will promptly deliver to the other parties a supplement to the Schedules specifying such change. During the same period, each party will promptly notify the other parties of the occurrence of any material breach of any of its covenants in this Agreement or of the occurrence of any event that may make the satisfaction of such conditions impossible or unlikely.
 
6.5       Exclusivity. Until such time, if any, as this Agreement is terminated pursuant to this Agreement, Priveco and Pubco will not, directly or indirectly, solicit, initiate, entertain or accept any inquiries or proposals from, discuss or negotiate with, provide any non-public information to, or consider the merits of any unsolicited inquiries or proposals from, any person or entity relating to any transaction involving the sale of the business or assets (other than in the ordinary course of business), or any of the capital stock of Priveco or Pubco, as applicable, or any merger, consolidation, business combination, or similar transaction other than as contemplated by this Agreement.
 
6.6       Conduct of Priveco and Pubco Business Prior to Closing. From the date of this Agreement to the Closing Date, and except to the extent that Pubco otherwise consents in writing, Priveco will operate its business substantially as presently operated and only in the ordinary course and in compliance with all applicable laws, and use its best efforts to preserve intact its good reputation and present business organization and to preserve its relationships with persons having business dealings with it. Likewise, from the date of this Agreement to the Closing Date, and except to the extent that Priveco otherwise consents in writing, Pubco will operate its business substantially as presently operated and only in the ordinary course and in compliance with all applicable laws, and use its best efforts to preserve intact its good reputation and present business organization and to preserve its relationships with persons having business dealings with it.
    	 
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6.7       Certain Acts Prohibited – Priveco. Except as expressly contemplated by this Agreement or for purposes in furtherance of this Agreement, between the date of this Agreement and the Closing Date, Priveco will not, without the prior written consent of Pubco:
 
(a)        amend its Certificate of Incorporation, Articles of Incorporation or other incorporation documents;
 
(b)        incur any liability or obligation other than in the ordinary course of business or encumber or permit the encumbrance of any properties or assets of Priveco except in the ordinary course of business;
 
(c)        dispose of or contract to dispose of any Priveco property or assets, including the Intellectual Property Assets, except in the ordinary course of business consistent with past practice;
 
(d)        issue, deliver, sell, pledge or otherwise encumber or subject to any lien any shares of the Priveco Common Stock, or any rights, warrants or options to acquire, any such shares, voting securities or convertible securities;
 
(e)        not:
 
(i)        declare, set aside or pay any dividends on, or make any other distributions in respect of the Priveco Common Stock, or
 
(ii)       split, combine or reclassify any Priveco Common Stock or issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution for shares of Priveco Common Stock; or
 
(f)        not materially increase benefits or compensation expenses of Priveco, other than as contemplated by the terms of any employment agreement in existence on the date of this Agreement, increase the cash compensation of any director, executive officer or other key employee or pay any benefit or amount not required by a plan or arrangement as in effect on the date of this Agreement to any such person.
 
6.8       Certain Acts Prohibited - Pubco. Except as expressly contemplated by this Agreement, between the date of this Agreement and the Closing Date, Pubco will not, without the prior written consent of Priveco:
 
(a)        incur any liability or obligation or encumber or permit the encumbrance of any properties or assets of Pubco except in the ordinary course of business consistent with past practice;
 
(b)        dispose of or contract to dispose of any Pubco property or assets except in the ordinary course of business consistent with past practice;
 
(c)        declare, set aside or pay any dividends on, or make any other distributions in respect of the Pubco Common Stock; or
 
(d)        materially increase benefits or compensation expenses of Pubco, increase the cash compensation of any director, executive officer or other key employee or pay any benefit or amount to any such person.
 
	 
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6.9       Public Announcements. Pubco and Priveco each agree that they will not release or issue any reports or statements or make any public announcements relating to this Agreement or the Transaction contemplated herein without the prior written consent of the other party, except as may be required upon written advice of counsel to comply with applicable laws or regulatory requirements after consulting with the other party hereto and seeking their reasonable consent to such announcement.
 
7.         CLOSING
 
7.1       Closing. The Closing shall take place on the Closing Date at Room 803, Lippo Sun Plaza, 28 Canton Road, Hong Kong, the offices Pubco. Notwithstanding the location of the Closing, each party agrees that the Closing may be completed by the exchange of undertakings between the respective legal counsel for Priveco and Pubco, provided such undertakings are satisfactory to each party’s respective legal counsel.
 
7.2       Closing Deliveries of Priveco and the Selling Shareholder. At Closing, Priveco and the Selling Shareholder will deliver or cause to be delivered the following, fully executed and in the form and substance reasonably satisfactory to Pubco:
 
(a)        copies of all resolutions and/or consent actions adopted by or on behalf of the board of directors of Priveco evidencing approval of this Agreement, the Transaction and appointment of Selling Shareholder to become director of Pubco;
 
(b)        if any of the Selling Shareholder appoint any person, by power of attorney or equivalent, to execute this Agreement or any other agreement, document, instrument or certificate contemplated by this agreement, on behalf of the Selling Shareholder, a valid and binding power of attorney or equivalent from such Selling Shareholder;
 
(c)        instrument of transfer and bought and sold note duly signed by Selling Shareholder to facilitate the issuance of share certificates representing the Priveco Shares as required by Section 2.3 of this Agreement;
 
(d)        consent of the Selling Shareholder to be appointed as director of Pubco;
 
(e)        all certificates and other documents required by Sections 2.3 and 5.1 of this Agreement;
 
(f)        a certificate of an officer of Priveco, dated as of Closing, certifying that:
 
(i)        each covenant and obligation of Priveco has been complied with; and
 
(ii)       each representation, warranty and covenant of Priveco is true and correct at the Closing as if made on and as of the Closing; and
 
(g)        the Priveco Documents, the Priveco Financial Statements and any other necessary documents, each duly executed by Priveco, as required to give effect to the Transaction.
 
7.3       Closing  Deliveries  of  Pubco.    At Closing, Pubco will deliver or cause to be delivered the following, fully executed and in the form and substance reasonably satisfactory to Priveco:
    	 
	-23-

	

	 

 
(a)        copies of all resolutions and/or consent actions adopted by or on behalf of the board of directors of Pubco evidencing approval of this Agreement, the Transaction and appointment of Selling Shareholder to become director of Pubco;
 
(b)        all certificates and other documents required by Section 5.2 of this Agreement;
 
(c)        share certificates representing the Pubco Shares, or communication between Pubco and its transfer agent in support of issuance of the Pubco Shares;
 
(d)        a certificate of an officer of Pubco, dated as of Closing, certifying that:
 
(i)        each covenant and obligation of Pubco has been complied with; and
 
(ii)       each representation, warranty and covenant of Pubco is true and correct at the Closing as if made on and as of the Closing; and
 
(e)        the Pubco Documents and any other necessary documents, each duly executed by Pubco, as required to give effect to the Transaction.
 
7.4       Additional Closing Delivery of Pubco.  At Closing, Pubco will deliver or cause to be delivered the share certificates representing the Pubco Securities.
 
8.         TERMINATION
 
8.1       Termination.     This Agreement may be terminated at any time prior to the Closing Date contemplated hereby by:
 
(a)        mutual agreement of Pubco and Priveco;
 
(b)        Pubco, if there has been a material breach by Priveco or any of the Selling Shareholder of any material representation, warranty, covenant or agreement set forth in this Agreement on the part of Priveco or the Selling Shareholder that is not cured, to the reasonable satisfaction of Pubco, within ten (10) business days after notice of such breach is given by Pubco (except that no cure period will be provided for a breach by Priveco or the Selling Shareholder that by its nature cannot be cured);
 
(c)        Priveco, if there has been a material breach by Pubco of any material representation, warranty, covenant or agreement set forth in this Agreement on the part of Pubco that is not cured by the breaching party, to the reasonable satisfaction of Priveco, within ten (10) business days after notice of such breach is given by Priveco (except that no cure period will be provided for a breach by Pubco that by its nature cannot be cured); or
 
(d)        Pubco or Priveco if any permanent injunction or other order of a governmental entity of competent authority preventing the consummation of the Transaction contemplated by this Agreement has become final and non-appealable.
 
8.2       Effect of Termination. In the event of the termination of this Agreement as provided in Section 8.1, this Agreement will be of no further force or effect, provided, however, that no termination of this Agreement will relieve any party of liability for any breaches of this Agreement that are based on a wrongful refusal or failure to perform any obligations.
 
	 
	-24-

	

	 

 
 9.         INDEMNIFICATION, REMEDIES, SURVIVAL
 
9.1       Certain Definitions. For the purposes of this Article 9, the terms “Loss” and “Losses” mean any and all demands, claims, actions or causes of action, assessments, losses, damages, Liabilities, costs, and expenses, including without limitation, interest, penalties, fines and reasonable attorneys, accountants and other professional fees and expenses, but excluding any indirect, consequential or punitive damages suffered by Pubco or  Priveco including damages  for  lost profits or lost business opportunities.
 
9.2       Agreement of Priveco to Indemnify. Priveco will indemnify, defend, and hold harmless, to the full extent of the law, Pubco and its shareholders from, against, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by Pubco and its shareholders by reason of, resulting from, based upon or arising out of:
 
(a)        the breach by Priveco of any representation or warranty of Priveco contained in or made pursuant to this Agreement, any Priveco Document or any certificate or other instrument delivered pursuant to this Agreement; or
 
(b)        the breach or partial breach by Priveco of any covenant or agreement of Priveco made in or pursuant to this Agreement, any Priveco Document or any certificate or other instrument delivered pursuant to this Agreement.
 
9.3       Agreement of the Selling Shareholder to Indemnify. The Selling Shareholder will indemnify, defend, and hold harmless, to the full extent of the law, Pubco and its shareholders from, against, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by Pubco and its shareholders by reason of, resulting from, based upon or arising out of:
 
(a)        any breach by the Selling Shareholder of Section 2.2 of this Agreement; or
 
(b)        any misstatement, misrepresentation or breach of the representations and warranties made by the Selling Shareholder contained in or made pursuant to the Certificate executed by each Selling Shareholder or their nominee as part of the share exchange  procedure detailed in Section 2.3 of this Agreement.
 
9.4       Agreement of Pubco to Indemnify. Pubco will indemnify, defend, and hold harmless, to the full extent of the law, Priveco and the Selling Shareholder from, against, for, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by Priveco and the Selling Shareholder by reason of, resulting from, based upon or arising out of:
 
(a)        the breach by Pubco of any representation or warranty of Pubco contained in or made pursuant to this Agreement, any Pubco Document or any certificate or other instrument delivered pursuant to this Agreement; or
 
(b)        the breach or partial breach by Pubco of any covenant or agreement of Pubco made in or pursuant to this Agreement, any Pubco Document or any certificate or other instrument delivered pursuant to this Agreement.
 
10.       MISCELLANEOUS PROVISIONS
 
10.1     Effectiveness of Representations; Survival.  Each party is entitled to rely on the representations, warranties and agreements of each of the other parties and all such representation, warranties and agreement will be effective regardless of any investigation that any party has undertaken or failed to undertake. Unless otherwise stated in this Agreement, and except for instances of fraud, the representations, warranties and agreements will survive the Closing Date and continue in full force and effect until one (1) year after the Closing Date.
    	 
	-25-

	

	 

 
10.2     Further Assurances. Each of the parties hereto will co-operate with the others and execute and deliver to the other parties hereto such other instruments and documents and take such other actions as may be reasonably requested from time to time by any other party hereto as necessary to carry out, evidence, and confirm the intended purposes of this Agreement.
 
10.3     Amendment. This Agreement may not be amended except by an instrument in writing signed by each of the parties.
 
10.4     Expenses. Pubco will bear all costs incurred in connection with the preparation, execution and performance of this Agreement and the Transaction contemplated hereby, including all fees and expenses of agents, representatives and accountants; provided that Pubco and Priveco will bear its respective legal costs incurred in connection with the preparation, execution and performance of this Agreement and the Transaction contemplated hereby.
 
10.5     Entire Agreement. This Agreement, the schedules attached hereto and the other documents in connection with this transaction contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior arrangements and understandings, both written and oral, expressed or implied, with respect thereto. Any preceding correspondence or offers are expressly superseded and terminated by this Agreement.
 
10.6     Notices. All notices and other communications required or permitted under to this Agreement must be in writing and will be deemed given if sent by personal delivery, faxed with electronic confirmation of delivery, internationally-recognized express courier or registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address for a party as will be specified by like notice):
 
If to Priveco or the Selling Shareholder:
 
Info-Nice Limited
Room 803, Lippo Sun Plaza 28 Canton Road, Hong Kong
Attention:         Fong Sze Hung
 
 
If to Priveco or the Selling Shareholder
 
Flat D, 8th Floor, Tower 5,
8 Yan Ning Road, Phase II, Metro City, Tseung Kwan O Hong Kong
Attention:         Fong Sze Hung
 
[INTENTIONALLY LEFT BLANK]

    	 
	-26-

	

	 

 
If to Pubco
 
Magicstem Group Corp. 
Room 803, Lippo Sun Plaza 
28 Canton Road, Hong Kong 
Attention:                       Chi Man Ng
 
All such notices and other communications will be deemed to have been received:
 
(a)        in the case of personal delivery, on the date of such delivery;
 
(b)        in the case of a fax, when the party sending such fax has received electronic confirmation of its delivery;
 
(c)        in the case of delivery by internationally-recognized express courier, on the business day following dispatch; and
 
(d)        in the case of mailing, on the fifth business day following mailing.
 
10.7     Headings. The headings contained in this Agreement are for convenience purposes only and will not affect in any way the meaning or interpretation of this Agreement.
 
10.8     Benefits. This Agreement is and will only be construed as for the benefit of or enforceable by those persons party to this Agreement.
 
10.9     Assignment. This Agreement may not be assigned (except by operation of law) by any party without the consent of the other parties.
 
10.10    Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Nevada applicable to contracts made and to be performed therein.
 
10.11    Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party.
 
10.12    Gender. All references to any party will be read with such changes in number and gender as the context or reference requires.
 
10.13    Business Days. If the last or appointed day for the taking of any action required or the expiration of any rights granted herein shall be a Saturday, Sunday or a legal holiday in the Province of British Columbia, then such action may be taken or right may be exercised on the next succeeding day which is not a Saturday, Sunday or such a legal holiday.
 
10.14    Counterparts. This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.
 
	 
	-27-

	

	 

 
 
10.15  Fax Execution.  This Agreement may be executed by delivery of executed signature pages by fax and such fax execution will be effective for all purposes.
 
10.16  Schedules  and  Exhibits.  The  schedules  and  exhibits  are  attached  to  this  Agreement  and incorporated herein.
 
 
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above  written.
 
MAGICSTEM GROUP CORP.
 
Per: /s/ Ka Sing Edmund Yeung 
Authorized Signatory
Name: Ka Sing Edmund Yeung 
Title: Director and CFO
 
 
INFO - NICE LIMITED
 
Per: /s/ Fong Sze Hung 
Authorized Signatory
Name: Fong Sze Hung 
Title: Director

Selling Shareholder
 
/s/ Fong Size Hung
FONG SZE HUNG
 
 
 
	 
	-28-

	

	 

 
SCHEDULE  PAGE 1
TO THE SHARE EXCHANGE AGREEMENT AMONG MAGICSTEM GROUP CORP., INFO-NICE LIMITED AND THE SELLING SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
 
THE SELLING SHAREHOLDERS
 
	 
Name
	 
Number of Priveco Shares held before Closing
	 
Total Number of Pubco Shares to be issued by Pubco on Closing

	  Fong Sze Hung
Flat D, 8th Floor, Tower 5, 8 Yan Ning Road, Phase II, Metro City, Tseung Kwan O, Hong Kong
ID # V067551(2)
	 
-100-
	 
5,664,200

 
	 
	

	

	 

 
SCHEDULE  PAGE 2
TO THE SHARE EXCHANGE AGREEMENT AMONG MAGICSTEM GROUP CORP., INFO-NICE LIMITED AND THE SELLING SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
 
CERTIFICATE OF NON-U.S. SHAREHOLDER 
 
OF
 
_________________________________
 
In connection with the issuance of common stock (the “Pubco Shares” or the “Pubco Securities”) of Magicstem Group Corp., a Nevada corporation (“Pubco”), to the undersigned, pursuant to that certain Share Exchange Agreement dated September 20,  2016 (the “Agreement”), among Pubco, Info-Nice Limited, a company incorporated pursuant to the laws of Hong Kong (“Priveco”) and the shareholders of Priveco as set out in the Agreement (each, a “Selling Shareholder”), the undersigned hereby agrees, acknowledges, represents and warrants that:
 
1.         the undersigned is not a “U.S. Person” as such term is defined by Rule 902 of Regulation S under the United States Securities Act of 1933, as amended (“U.S. Securities Act”) (the definition of which includes, but is not limited to, an individual resident in the U.S. and an estate or trust of which any executor or administrator or trust, respectively is a U.S. Person and any partnership or corporation organized or incorporated under the laws of the U.S.);
 
2.        none of the Pubco Securities have been or will be registered under the U.S. Securities Act, or under any state securities or “blue sky” laws of any state of the United States, and may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons, as that term is defined in Regulation S, except in accordance with the provisions of Regulation S or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with any applicable state and foreign securities laws;
 
3.         the undersigned understands and agrees that offers and sales of any of the Pubco Securities prior to the expiration of a period of one year after the date of  Pubco filing “Form 10” information indicating the removal of “shell company” status (the one year period hereinafter referred to as the Distribution Compliance Period) shall only be made in compliance with the safe harbour provisions set forth in Regulation S, pursuant to the registration provisions of the U.S. Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the U.S. Securities Act or an exemption therefrom and in each case only in accordance with applicable state and foreign securities laws;
 
4.         the undersigned understands and agrees not to engage in any hedging transactions involving any of the Pubco Securities unless such transactions are in compliance with the provisions of the U.S. Securities Act and in each case only in accordance with applicable state and provincial securities laws;
 
5.         the undersigned is acquiring the Pubco Securities for investment only and not with a view to resale or distribution and, in particular, it has no intention to distribute either directly or indirectly any of the Pubco Securities in the United States or to U.S. Persons;
 
6.         the undersigned has not acquired the Pubco Securities as a result of, and will not itself engage in, any directed selling efforts (as defined in Regulation S under the U.S. Securities Act) in the United States in respect of the Pubco Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Pubco Securities; provided, however, that the undersigned may sell or otherwise dispose of the Pubco Securities pursuant to registration thereof under the U.S. Securities Act and any applicable state and provincial securities laws or under an exemption from such registration requirements;
    	 
	

	

	 

 
7.         the statutory and regulatory basis for the exemption claimed for the sale of the Pubco Securities, although in technical compliance with Regulation S, would not be available if the offering is part of a plan or scheme to evade the registration provisions of the U.S. Securities Act or any applicable state and provincial securities laws;
 
8.         the undersigned has not undertaken, and will have no obligation, to register any of the Pubco Securities under the U.S. Securities Act;
 
9.         Pubco is entitled to rely on the acknowledgements, agreements, representations and warranties and the statements and answers of the Selling Shareholder contained in the Agreement and those of the undersigned contained in this Certificate, and the undersigned will hold harmless Pubco from any loss or damage either one may suffer as a result of any such acknowledgements, agreements, representations and/or warranties made by the Selling Shareholder and/or the undersigned not being true and correct;
 
10.       the undersigned has been advised to consult their own respective legal, tax and other advisors with respect to the merits and risks of an investment in the Pubco Securities and, with respect to applicable resale restrictions, is solely responsible (and Pubco is not in any way responsible) for compliance with applicable resale restrictions;
 
11.       none of the Pubco Securities are listed on any stock exchange or automated dealer quotation system and no representation has been made to the undersigned that any of the Pubco Securities will become listed on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the common shares of Pubco on the OTC Markets;
 
12.       the undersigned is outside the United States when receiving and executing this Agreement and is acquiring the Pubco Securities as principal for their own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in the Pubco Securities;
 
13.       neither the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the Pubco Securities;
 
14.       the Pubco Securities are not being acquired, directly or indirectly, for the account or benefit of a U.S. Person or a person in the United States;
 
15.       the undersigned acknowledges and agrees that Pubco shall refuse to register any transfer of Pubco Securities not made in accordance with the provisions of Regulation S, pursuant to registration under the U.S. Securities Act, or pursuant to an available exemption from registration under the U.S. Securities Act;
 
16.       the undersigned understands and agrees that the Pubco Securities will bear the following legend:

    	 
	-2-

	

	 

 
“THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO  IS  NOT  A  U.S.  PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).
 
NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN  COMPLIANCE WITH THE 1933 ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.”
 
 
17.       the  address  of  the  undersigned  included  herein  is  the  sole  address  of  the undersigned as of the date of this certificate.
 
IN WITNESS WHEREOF, I have executed this Certificate of Non-U.S. Shareholder.
 
 

 _______________________________                                            Date:___________________________________, 2016
Signature

_______________________________
Print Name
 
_______________________________
Title (if applicable)
 
_______________________________
Address
_______________________________
 

 
	 
	-3-

	

	 

 
SCHEDULE  PAGE 3
TO THE SHARE EXCHANGE AGREEMENT AMONG MAGICSTEM GROUP CORP., INFO-NICE LIMITED AND THE SELLING SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
 
 
DIRECTORS AND OFFICERS OF PRIVECO
 
Director:  Fong Sze Hung
 
 
Officer:  Fong Sze Hung
 
 
	 
	

	

	 

 
SCHEDULE  PAGE 4
TO THE SHARE EXCHANGE AGREEMENT AMONG MAGICSTEM GROUP CORP., INFO-NICE LIMITED AND THE SELLING SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
 
 
PRIVECO FINANCIAL STATEMENTS
 
 
	 
	

	

	 

 
SCHEDULE  PAGE 5
TO THE SHARE EXCHANGE AGREEMENT AMONG MAGICSTEM GROUP CORP., INFO-NICE LIMITED AND THE SELLING SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
 
 
DIRECTORS AND OFFICERS OF PUBCO
 
Directors:
 Chi Man Ng
 Ka Sing Edmund Yeung Guosheng Hu
 Chun-Han Lin
 
 
Officers:
 Chi Man Ng, President and Chief Executive Officer 
Ka Sing Edmund Yeung, Chief Financial Officer
	 
	

	

	 

 
SCHEDULE  PAGE 6
TO THE SHARE EXCHANGE AGREEMENT AMONG MAGICSTEM GROUP CORP., INFO-NICE LIMITED AND THE SELLING SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
 
PRIVECO LEASES, SUBLEASES, CLAIMS, CAPITAL EXPENDITURES, 
TAXES AND OTHER PROPERTY INTERESTS
 
None

    	 
	

	

	 

 
SCHEDULE  PAGE 7
TO THE SHARE EXCHANGE AGREEMENT AMONG MAGICSTEM GROUP CORP., INFO-NICE LIMITED AND THE SELLING SHAREHOLDER AS SET OUT IN THE SHARE EXCHANGE AGREEMENT
    

 
PRIVECO INTELLECTUAL PROPERTY
 
Priveco does not hold and has not registered any copyright, patents or trade marksExhibit 10.1

 

EXECUTION VERSION

 

AMENDMENT
NO. 3 TO FORBEARANCE AGREEMENT 

 

THIS AMENDMENT
No. 3 TO FORBEARANCE AGREEMENT (this “Agreement”) is made and entered into as of September 20, 2016 by
and among DAKOTA PLAINS TRANSLOADING, LLC, a Minnesota limited liability company (“Dakota Transloading”), DAKOTA
PLAINS SAND, LLC, a Minnesota limited liability company (“Dakota Sand”), DAKOTA PLAINS MARKETING, LLC, a Minnesota
limited liability company (“Dakota Marketing” and, together with Dakota Transloading and Dakota Sand, the “Borrowers”),
DAKOTA PLAINS HOLDINGS, INC., a Nevada corporation (“Holdings”), DPTS MARKETING LLC, a Minnesota limited liability
company (“DPTSM”), DAKOTA PETROLEUM TRANSPORT SOLUTIONS, LLC, a Minnesota limited liability company (“DPTS”),
DPTS SAND, LLC, a Minnesota limited liability company (“DPTS Sand” and, together with Holdings, DPTSM and DPTS,
the “Guarantors”), the Lenders (the “Lenders”) from time to time party to the Credit Agreement
(defined below) and SUNTRUST BANK, in its capacity as Administrative Agent for the Lenders (in such capacity, “Administrative
Agent”) and as Issuing Bank. Capitalized terms used herein but not otherwise defined shall have the meanings ascribed
to such terms in the Credit Agreement (defined below).

 

RECITALS

 

A.          The Borrowers, Holdings, the Lenders
and the Administrative Agent are parties to that certain Revolving Credit and Term Loan Agreement, dated as of December 5, 2014
(as amended by that certain Amendment No. 1 to Revolving Credit and Term Loan Agreement dated as of August 6, 2015, as amended
by that certain Amendment No. 2 and Waiver to Revolving Credit and Term Loan Agreement dated as of December 4, 2015, as amended
by that certain Amendment No. 3 to Revolving Credit and Term Loan Agreement, Amendment No. 1 to Forbearance Agreement and One Time
Waiver of Revolving Loan Borrowing Requirements dated as of July 5, 2016, as amended by that certain Amendment No. 4 to Revolving
Credit and Term Loan Agreement and One Time Waiver of Revolving Loan Borrowing Requirements dated as of August 5, 2016, and as
further amended, restated, supplemented, replaced, refinanced or otherwise modified from time to time, the “Credit Agreement”).

 

B.          The Loan Parties,
the Administrative Agent and the Lenders are party to that certain Forbearance Agreement dated as of May 3, 2016 (as amended by
that certain Amendment No. 3 to Revolving Credit and Term Loan Agreement, Amendment No. 1 to Forbearance Agreement and One Time
Waiver of Revolving Loan Borrowing Requirements dated as of July 5, 2016, as amended by that certain Amendment No. 2 to Forbearance
Agreement dated as of September 1, 2016, and as further amended, restated, supplemented, replaced or otherwise modified from time
to time, the “Forbearance Agreement”), pursuant to which the Administrative Agent and Lenders are presently
forbearing from exercising certain rights and remedies available to them under the Credit Agreement, Loan Documents and applicable
law, which rights and remedies arose exclusively as a result of the occurrence, existence or continuation of the Anticipated Events
of Default (as defined in the Forbearance Agreement).

 

C.          The Loan Parties
have requested that the Administrative Agent and the Lenders amend the Forbearance Agreement as set forth herein.

 

D.          The Administrative
Agent and the Lenders have agreed to do so, but only pursuant to the terms and conditions set forth herein.

 

    	 

     

    

 

AGREEMENT

NOW, THEREFORE, IN CONSIDERATION
of the premises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.          Estoppel,
Acknowledgement and Reaffirmation. Each of the Loan Parties acknowledges and agrees that, as of September 20, 2016: the aggregate
outstanding principal amount of the Tranche A Term Loan was not less than $12,925,000; the aggregate outstanding principal amount
of the Tranche B Term Loan was not less than $22,500,000; the aggregate outstanding principal amount of all Revolving Loan was
not less than $21,500,000; and the LC Exposure was $0; each of which constitutes a valid and subsisting obligation of the Loan
Parties to the Lenders that is not subject to any credits, offsets, defenses, claims, counterclaims or adjustments of any kind.

2.          Consent,
Reaffirmation and Ratification. By its signature below, each of the undersigned Loan Parties hereby: (a) acknowledges and consents
to this Agreement and the terms and provisions hereof; (b) reaffirms the covenants and agreements contained in each Loan Document
to which it is a party, including, in each case, as such covenants and agreements may be modified by this Agreement and the transactions
contemplated hereby; (c) reaffirms that each of the Liens created and granted in, or pursuant to, the Loan Documents in favor of
the Administrative Agent, for the benefit of the holders of the Obligations, is valid and subsisting and acknowledges and agrees
that this Agreement shall in no manner impair or otherwise adversely affect such Liens, except as explicitly set forth herein;
and (d) confirms that each Loan Document to which it is a party is and shall continue to be in full force and effect and the same
is hereby ratified and confirmed in all respects, except that upon the effectiveness of this Agreement, all references in such
Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import shall
mean the Credit Agreement and the Loan Documents, as the case may be, as in effect and modified by this Agreement.

3.         Amendments
to Forbearance Agreement. 

            (a)
       The penultimate sentence of Section 3 of the Forbearance Agreement is hereby amended
and restated in its entirety as follows:

As
used herein, a “Forbearance Termination Event” shall mean the earliest of the following to occur: (a) any Default
or Event of Default under the Credit Agreement or the other Loan Documents other than the Anticipated Events of Default; (b) a
breach by any Loan Party of any obligation or covenant under this Agreement; and (c) November 30, 2016 (such date, the “Forbearance
Termination Date”).

 

            (b)          Clause
(ii) of Section 7 of the Forbearance Agreement is hereby amended and restated in its entirety as follows:

(ii) conduct,
at such times and on such dates as reasonably requested by the Administrative Agent, a status update (in the form of a conference
call with the Administrative Agent) regarding the Loan Parties’ business operations, financial performance, liquidity position,
sale process and the status of any material events or litigation.

 

4.         Agent Financial
Advisor/Restructuring Officer. The Administrative Agent may engage (or direct its counsel to engage) a financial or restructuring
advisor (the “Agent Advisor”) to, among other things, perform a review of the Loan Parties’ financial
performance, financial reporting, financial forecasts, accounting details, operations and other related matters. In connection
therewith, the Loan Parties shall cooperate with the Agent Advisor and provide the Agent Advisor with reasonable access to such
of the Loan Parties’ facilities, employees, management and financial information as is necessary for the Agent Advisor perform
the services within the scope of its engagement, which access shall include without limitation all visitation and inspection rights
of the Administrative Agent under Section 5.7 of the Credit Agreement.

 

    	2 

     

    

 

5.         Forbearance Period
Milestones. The Loan Parties shall satisfy the following milestones on or before the date specified therefore:

 

(a)           on
or before October 30, 2016, the Loan Parties shall have received one or more executed letters of intent for the purchase of all
or substantially all of the Loan Parties’ equity or assets (such transaction, a “Potential Transaction”)
from potential purchasers with demonstrated ability to close a Potential Transaction (each such potential purchaser, a “Potential
Purchaser”); and 

(b)          on
or before November 20, 2016, the Loan Parties and one or more Potential Purchasers shall have entered into a definitive asset
purchase agreement for the sale of all or substantially all of the Loan Parties’ equity or assets. 

6.         Costs and Expenses.
The Borrowers shall pay all reasonable and documented out-of-pocket fees, costs and expenses incurred by the Administrative Agent
and the Lenders (including, without limitation, the reasonable and documented fees and out-of-pocket costs and expenses of counsel)
incurred in connection with the Credit Agreement, this Agreement and the other Loan Documents through the Effective Date (defined
below).

 

7.         Conditions
Precedent. This Agreement shall be effective as of the date hereof (the “Effective Date”) when, and only
when, each of the following conditions shall have been satisfied or waived, in the sole discretion of the Administrative Agent: 

 

(a)          The
Administrative Agent shall have received counterparts of this Agreement duly executed by each of the Loan Parties, the Lenders
and the Administrative Agent. 

(b)          The
Administrative Agent shall have received such certificates of resolutions or other action, incumbency certificates and/or other
certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing the identity, authority
and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement
and the other Loan Documents to which such Loan Party is a party. 

(c)          Counsel to the Administrative Agent shall have received reimbursement from the Loan Parties for all reasonable
fees, costs and expenses charged the Administrative Agent and the Lenders
in connection with the Credit Agreement, this Agreement and the other Loan Documents through the Effective Date. 

8.         Incorporation
of Agreement. Except as specifically modified herein, the terms of the Loan Documents shall remain in full force and effect.
The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of the
Administrative Agent under the Loan Documents, or constitute a waiver or amendment of any provision of the Loan Documents, except
as expressly set forth herein. The breach in any material respect of any provision or representation under this Agreement shall
constitute an immediate Event of Default under the Credit Agreement, and this Agreement shall constitute a Loan Document.

 

    	3 

     

    

 

9.         Representations
of the Loan Parties. Each of the Loan Parties represents and warrants to the Administrative Agent and the Lenders as follows:

 

(a)          Except
as acknowledged herein, no Default or Event of Default exists under the Loan Documents on and as of the date hereof. 

(b)          It
has taken all necessary action to authorize the execution, delivery and performance of this Agreement and any other documents
delivered by it in connection herewith.

(c)          This
Agreement and each other document delivered by it in connection herewith has been duly executed and delivered by such Person and
constitutes such Person’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such
enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or
similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability
is considered in a proceeding at law or in equity). 

(d)          No
consent, approval, authorization or order of, registration or qualification with, any court or Governmental Authority or third
party is required in connection with the execution, delivery or performance by such Person of this Agreement. 

(e)          The
execution and delivery of this Agreement or any other document delivered by it in connection herewith does not (i) violate, contravene
or conflict with any provision of its organizational documents or (ii) materially violate, contravene or conflict with any laws
applicable to it or any of its Subsidiaries. 

(f)          After
giving effect to this Agreement, the representations and warranties of the Loan Parties contained in the Loan Documents, as supplemented
by the disclosures on Schedule 11(f) to the Forbearance Agreement, are true, accurate and complete in all materials respects
on and as of the date hereof to the same extent as though made on and as of such date except to the extent such representations
and warranties specifically relate to an earlier date. 

10.       Release; No Action,
Claims, Etc.. In consideration of the Administrative Agent’s, the Lenders’ and the Issuing Bank’s willingness
to enter into this Agreement, each of the Loan Parties hereby releases and forever discharges the Administrative Agent, the Lenders,
the Issuing Bank and each of the Administrative Agent’s, Lenders’ and Issuing Bank’s respective predecessors,
successors, assigns, officers, managers, directors, employees, agents, attorneys, representatives, and affiliates (hereinafter
all of the above collectively referred to as the “Lender Group”), from any and all claims, counterclaims, demands,
damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, in each case to the extent arising in
connection with the Loan Documents through the date of this Agreement, whether arising at law or in equity, whether known or unknown,
whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and
whether or not heretofore asserted, which each of the Loan Parties may have or claim to have against any of the Lender Group. As
of the date hereof, each of the Loan Parties hereby acknowledges and confirms that it has no knowledge of any actions, causes of
action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, against any member of the Lender
Group arising from any action by such Person, or failure of such Person to act under the Loan Documents on or prior to the date
hereof.

 

    	4 

     

    

 

11.       Further Assurances.
Each of the parties hereto agrees to execute and deliver, or to cause to be executed and delivered, all such instruments as may
reasonably be requested to effectuate the intent and purposes, and to carry out the terms, of this Agreement.

 

12.       No Third Party
Beneficiaries. This Agreement and the rights and benefits hereof shall inure to the benefit of each of the parties hereto and
their respective successors and assigns. No other Person shall have or be entitled to assert rights or benefits under this Agreement.

 

13.       Governing Law;
Jurisdiction; Consent to Service of Process; Waiver of Jury Trial. The governing law, jurisdiction, consent to service of process
and waiver of jury trial provisions set forth in Sections 10.5 and 10.6 of the Credit Agreement are hereby incorporated by reference,
mutatis mutandis.

 

14.       Entirety.
This Agreement and the other Loan Documents embody the entire agreement between the parties and supersede all prior agreements
and understandings, if any, relating to the subject matter hereof. This Agreement and the other Loan Documents represent the final
agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of
the parties.

 

15.       Miscellaneous

 

(a)          This
Agreement shall be binding on and shall inure to the benefit of the Loan Parties, the Administrative Agent, the Lenders and their
respective successors and permitted assigns. It is the intent of the undersigned Lenders that any third party acquiring any such
Lender’s rights and obligations under the Credit Agreement shall, with respect to such Lender’s portion of the Loan,
be subject to, and bound by, the terms and conditions of this Agreement. The terms and provisions of this Agreement are for the
purpose of defining the relative rights and obligations of the Loan Parties, the Administrative Agent, the Issuing Bank and the
Lenders with respect to the transactions contemplated hereby and there shall be no third party beneficiaries of any of the terms
and provisions of this Agreement. 

(b)          Section
headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement
for any other purpose. 

(c)          Wherever
possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement. 

(d)          Except
as otherwise expressly provided in this Agreement, if any provision contained in this Agreement is in conflict with, or inconsistent
with, any provision in the Loan Documents, the provision contained in this Agreement shall govern and control. 

(e)          This
Agreement may be executed in any number of separate counterparts, each of which shall collectively and separately constitute one
agreement. Delivery of an executed counterpart of this Agreement by telecopy or other electronic means shall be effective as an
original. 

    	5 

     

    

 

(f)          This
Agreement does not represent a commitment by the Lenders and/or the Administrative Agent to make any new loans, restructure the
Obligations or grant or extend any financial accommodations to the Loan Parties, except for the agreements expressly set forth
herein. 

 

16.       No Waiver.
Nothing herein shall constitute a waiver of the Anticipated Events of Default, as such term is defined in the Forbearance Agreement.

 

[Signature pages follow.]

 

    	6 

     

    

 

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
and delivered as of the date first above written. 

	 	 	 	 
	BORROWERS:	DAKOTA PLAINS TRANSLOADING, LLC	 
	 	 	 	 
	 	By:	/s/ Gabriel G. Claypool	 
	 	Name:	Gabriel G. Claypool	 
	 	Title:	President, CEO and Secretary	 
	 	 	 	 
	 	DAKOTA PLAINS SAND, LLC	 
	 	 	 	 
	 	By:	/s/ Gabriel G. Claypool	 
	 	Name:	Gabriel G. Claypool	 
	 	Title:	President, CEO and Secretary	 
	 	 	 	 
	 	DAKOTA PLAINS MARKETING, LLC	 
	 	 	 	 
	 	By:	/s/ Gabriel G. Claypool	 
	 	Name:	Gabriel G. Claypool	 
	 	Title:	President, CEO and Secretary	 
	 	 	 	 
	HOLDINGS:	DAKOTA PLAINS HOLDINGS, INC.	 
	 	 	 	 
	 	By:	/s/ Gabriel G. Claypool	 
	 	Name:	Gabriel G. Claypool	 
	 	Title:	President and COO	 
	 	 	 	 
	SUBSIDIARY LOAN PARTIES:	DPTS MARKETING LLC	 
	 	 	 	 
	 	By:	/s/ Gabriel G. Claypool	 
	 	Name:	Gabriel G. Claypool	 
	 	Title:	Manager	 
	 	 	 	 
	 	DAKOTA PETROLEUM TRANSPORT SOLUTIONS, LLC
	 	 	 	 
	 	By: 	/s/ Gabriel G. Claypool	 
	 	Name:	Gabriel G. Claypool	 
	 	Title:	Manager	 
	 	 	 	 
	 	DPTS SAND, LLC,	 
	 	 	 	 
	 	By:	/s/ Gabriel G. Claypool	 
	 	Name:	Gabriel G. Claypool	 
	 	Title:	Manager	 

 

SIGNATURE
PAGE

DAKOTA PLAINS – AMENDMENT NO. 3 TO FORBEARANCE AGREEMENT

 

    	 

     

    

 

	ADMINISTRATIVE	 	 	 
	AGENT:	SUNTRUST BANK,	 
	 	as Administrative Agent	 
	 	 	 	 
	 	By: 	/s/ Janet R. Naifeh	 
	 	Name:	Janet R. Naifeh	 
	 	Title:	Senior Vice President	 
	 	 	 	 
	LENDERS:	SUNTRUST BANK,	 
	 	as a Lender and Issuing Bank	 
	 	 	 	 
	 	By:	/s/ Janet R. Naifeh	 
	 	Name:	Janet R. Naifeh	 
	 	Title:	Senior Vice President	 

 

SIGNATURE
PAGE

DAKOTA PLAINS – AMENDMENT NO. 3 TO FORBEARANCE AGREEMENT

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