Document:

hometouch_8k-ex1001.htm

Exhibit 10.1

 

HOME TOUCH HOLDING COMPANY

 

COMMON STOCK PURCHASE AGREEMENT

 

This Common Stock Purchase Agreement (this “Agreement”) is made as of December 6, 2010, by and among Home Touch Holding Company, a Nevada corporation (the “Company”), and Home Touch Limited, a corporation formed under the laws of Hong Kong China (“HTL” and together with the Company, the “HTL Parties”), on the one hand, and the persons and entities (each, an “Investor” and collectively, the “Investors”) listed on the Schedule of Investors attached as Exhibit A, on the other hand.

 

Recitals

 

HTL is a wholly owned subsidiary of the Company.

 

The Company owns 10,000 shares of HTL, which constitutes all of the issued and outstanding securities of HTL (the “Shares”).

 

The Investors, as the founders and former shareholders of HTL, desire to purchase the Shares on the terms and conditions set forth herein.

 

The Company desires to sell the Shares to the Investors on the terms and conditions set forth herein.

 

Agreement

 

In consideration of the foregoing recitals and the mutual promises, representations, warranties, and covenants hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1

 

Authorization and Sale of the Shares

1.1           Authorization.  The HTL Parties will, prior to the Closing (as defined below), authorize the sale of the Shares.

 

1.2           Sale and Issuance of Shares.  At the Closing (as defined below), subject to the terms and conditions of this Agreement, each of the Investors agrees to purchase, and the HTL Parties agree to sell to each Investor, the number of Shares set forth opposite such Investor’s name on Exhibit A, at a purchase price of $2.00 per share.  This Agreementof the HTL Parties with each Investor is a separate agreement, and the sale of the Shares to each Investor is a separate sale.

 

  

  

  

 

SECTION 2

 

Closing Dates; Delivery

2.1           Closings. The sale and purchase of the Shares under this Agreement shall take place at the offices of the Company at 4:00 p.m., local time, on the date hereof or at such other time and place upon which the Company (the “Closing”) and the Investors participating in the Closing shall agree.

 

2.2           Delivery.  At the Closing, or soon thereafter, the Company will deliver to each Investor a certificate registered in such Investor’s name representing the number of Shares that such Investor is purchasing in the Closing against payment of the purchase price therefor as set forth opposite such Investor’s name on Exhibit A, by (a) check payable to the Company, (b) wire transfer in accordance with the Company’s instructions,or (c) any combination of the foregoing.

 

SECTION 3

 

Representations and Warranties of the Company

 

Except as otherwise disclosed in the documents, reports and forms of the Company filed with or furnished to the United States Securities and Exchange Commission (collectively, the “SEC Reports”), the HTL Parties jointly and severally representand warrant to the Investors as of the Closing as set forth below.  For purposes of these representations and warranties, the phrase “to the knowledge of the HTL Parties” shall mean the actual knowledge after reasonable investigation of the following officers of the Company: Weng Kung Wong, Liong Tat Teh and Sek Fong Wong.

 

3.1           Organization and Standing.  The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada.  The Company has the requisite corporate power and authority to own and operate its properties and assets, and to carry on its business as presently conducted.  HTL is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation.

 

3.2           Corporate Power.  Each of the HTL Parties has all requisite legal and corporate power and authority to execute and deliver this Agreement, to sell the Shares and to carry out and perform its obligations under the terms of this Agreement.

 

3.3           Capitalization. 

 

(a)           The Shares constitute all of the issued and outstanding capital stock of HTL immediately prior to the Closing.

 

(b)           All issued and outstanding shares of HTL’s securities (i) have been duly authorized and validly issued, (ii) are fully paid and nonassessable and (iii) were issued in compliance with all applicable state and Federal laws concerning the issuance of securities.

 

(c)           The Shares, when issued and delivered and paid for in compliance with the provisions of this Agreement and the Certificate, will be validly issued, and will be fully paid and nonassessable.  The Shares will be free of any liens or encumbrances, other than any liens or encumbrances created by or imposed upon the Investors; provided, however, that the Shares may be subject to restrictions on transfer under U.S. state and/or federal securities laws and as set forth herein.  The Shares are not subject to any preemptive rights or rights of first refusal.

 

  

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(d)           There are no options, warrants or other rights (including conversion or preemptive rights and rights of first refusal) to purchase any of HTL’s authorized and unissued capital stock.

 

3.4           Authorization.  All corporate action on the part of the Board of Directorsand stockholders of the HTL Parties necessary for the authorization, execution, delivery and performance by the HTL Parties of this Agreement, and the authorization, saleand delivery of the Shares, have been taken or will be taken prior to Closing.  This Agreement, when executed and delivered by the HTL Parties, shall constitute valid and binding obligations of the HTL Parties, enforceable in accordance with their terms, except (i) as limited by laws of general application relating to bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and the relief of debtors or enforcement of creditors’ rights generally, and (ii) as limited by rules of law governing specific performance, injunctive relief or other equitable remedies and by general principles of equity.

 

3.5           Compliance with Other Instruments.  None of the HTL Parties is in violation of any material term of its Certificate or Bylaws, each as amended to date, or in any material respect of any term or provision of any material mortgage, indebtedness, indenture, contract, agreement, instrument, judgment, order or decree to which it is party or by which it is bound.  The execution, delivery and performance of and compliance with this Agreement and the sale of the Shareswill not result in any material violation of, or materially conflict with, or constitute a material default under, the Certificate of Incorporation, Bylaws or other charter documents of the HTL Parties.

 

3.6           Litigation.  To the knowledge of the HTL Parties, there are no actions, suits, proceedings or investigations pending against the HTL Parties or their properties (nor has any of the HTL Parties received notice of any threat thereof) that questions the validity of this Agreement or the right of the HTL Parties to enter into any of such agreement, or to consummate the transactions contemplated hereby or thereby.

 

3.7           Governmental Consent.  Assuming the accuracy of the representations and warranties made by the Investors in Section 4, no consent, approval or authorization of or designation, declaration or filing with any governmental authority on the part of the HTL Parties is required in connection with the valid execution and delivery of this Agreement, or the offer and sale of the Shares, or the consummation of any other transaction contemplated by this Agreement, except qualification (or taking such action as may be necessary to secure an exemption from qualification, if available) of the offer and sale of the Shares, under applicable U.S. federal and state securities laws.

 

3.8           Offering.  Subject to the accuracy of the Investors’ representations and warranties in Section 4, to the knowledge of the HTL Parties the offer and sale of the Shares will constitute a transaction exempt from the registration requirements of Section 5 of the Securities Act of 1933, as amended (the “Securities Act”) and is in compliance with all applicable securities laws of the United States and is in compliance with and will have been registered or qualified (or are exempt from registration or qualification) under the registration, permit or qualification requirements of all applicable securities laws of each of the states whose laws govern the issuance of any Shares.  The Company has not, nor any agent on its behalf has solicited or will solicit any offers to sell or has offered to sell or will offer to sell all or part of the Shares to any person or persons so as to require the registration of the Shares under of the Securities Act or any state securities laws.

 

3.9           Registration Rights and Voting Rights.  HTL is currently not under any obligation and has not granted any rights to register under the Securities Act any of its outstanding securities or any of its securities that may hereafter be issued.  To the knowledge of the HTL Parties, no stockholder of the HTL Parties has entered into any agreement with respect to the voting of equity securities of HTL.

 

  

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3.10           Brokers or Finders.  None of the HTL Parties has engaged any brokers, finders or agents, and the Investors have not incurred, and will not incur, directly or indirectly, as a result of any action taken by the HTL Parties, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement.

 

SECTION 4

 

Representations and Warranties of the Investors

 

Each Investor, severally and not jointly, represents and warrants to the Company as follows:

 

4.1           No Registration.  The Investor understands that the Shareshave not been, and will not be, registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Investor’s representations as expressed herein or otherwise made pursuant hereto.

 

4.2           Investment Intent.  The Investor is acquiring the Shares for investment for its own account, not as a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof.

 

4.3           Investment Experience.  The Investor has substantial experience in evaluating and investing in private placement transactions of securities in companies similar to HTL so that it is capable of evaluating the merits and risks of its investment in HTL and has the capacity to protect its own interests.

 

4.4           Speculative Nature of Investment.  The Investor acknowledges that its investment in HTL is highly speculative and entails a substantial degree of risk and the Investor is in a position to lose the entire amount of such investment.

 

4.5           Access to Data.  The Investor has had an opportunity to discuss HTL’s business, management and financial affairs with HTL’s management.  The Investor has had an opportunity to ask questions of officers of HTL, which questions were answered to its satisfaction.  The Investor acknowledges that any business plans prepared by HTL have been, and continue to be, subject to change and that any projections included in such business plans or otherwise are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results.

 

4.6           Accredited Investor.  The Investor is an “accredited investor” within the meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission.

 

4.7           Foreign Investor.  If the Investor is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), such Investor hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares.  Such Investor’s subscription and payment for and continued beneficial ownership of the Shares, will not violate any applicable securities or other laws of the Investor’s jurisdiction.

 

  

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4.8           Residency.  The residency of the Investor (or, in the case of a partnership or corporation, such entity’s principal place of business) is correctly set forth on Exhibit A.

 

4.9           Restriction on Resales.  The Investor acknowledges that the Sharesmust be held indefinitely unless subsequently registered under the Securities Act and qualified by state authorities or unless an exemption from such registration or qualification is available.  The HTL Parties are under no obligation to register or qualify the Shares.  There is no assurance that the HTL Parties will register or be able to successfully complete the registrationof the Shares.  The Investor further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Shares, and on requirements relating to HTL which are outside of the Investor’s control, and which the HTL Parties are under no obligation and may not be able to satisfy.  The Investor further understands that there is no assurance that any exemption from registration under the Securities Act will be available or, if available, that such exemption will allow Investor to dispose of or otherwise transfer any or all of the Shares in the amounts or at the times the Investor might propose.

 

4.10           Rule 144.  The Investor is aware of the provisions of Rule 144 promulgated under the Securities Act which permit limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions, including among other things, the existence of a public market for the shares, the availability of certain current public information about HTL, the resale occurring not less than one year after a party has purchased and paid for the security to be sold, the sale being effected through a “broker’s transaction” or in transactions directly with a “market maker” and the number of shares being sold during any three-month period not exceeding specified limitations.  The Investor understands that the current public information referred to above is not now available and the HTL Parties have no present plans to make such information available.  The Investor acknowledges and understands that HTL may not be satisfying the current public information requirement of Rule 144 at the time the Investor wishes to sell the Shares and that, in such event, the Investor may be precluded from selling such securities under Rule 144, even if the other requirements of Rule 144 have been satisfied.  The Investor acknowledges that, in the event all of the requirements of Rule 144 are not met, registration under the Securities Act or an exemption from registration will be required for any disposition of the Shares.  The Investor understands that, although Rule 144 is not exclusive, the Securities and Exchange Commission has expressed its opinion that persons proposing to sell restricted securities received in a private offering other than in a registered offering or pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales and that such persons and the brokers who participate in the transactions do so at their own risk.

 

4.11           No Public Market.  The Investor understands and acknowledges that no public market now exists for any of the securities issued by HTL and that the HTL Parties have made no assurances that a public market will ever exist for HTL’s securities.

 

4.12           Authorization. 

 

(a)           The Investor is a limited liability company duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation.   The Investor has the requisite limited liability company power and authority to own and operate its properties and assets, and to carry on its business as presently conducted.

 

(b)           The Investor has all requisite legal and limited liability company power and authority to execute and deliver this Agreement, to purchase the Shares hereunder and to carry out and perform its obligations under the terms of this Agreement.  All action on the part of the Investor necessary for the authorization, execution, delivery and performance of this Agreement and the performance of all of the Investor’s obligations under this Agreement, has been taken or will be taken prior to the Closing.

 

  

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(c)           This Agreement, when executed and delivered by the Investor, will constitute valid and legally binding obligations of the Investor, enforceable in accordance with their terms except: (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies or by general principles of equity.

 

(d)           The Investor has obtained any and all consents, approvals, authorizations, orders, filings, registrations or qualifications of or with any court, governmental authority or third person that are required to be obtained by the Investor in connection with the execution and delivery of this Agreement, or the performance of the Investor’s obligations hereunder or thereunder.

 

4.13           Brokers or Finders.  The Investor has not engaged any brokers, finders or agents, and none of the HTL Parties nor any other Investor has, nor will, incur, directly or indirectly, as a result of any action taken by the Investor, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement.

 

4.14           Investor Counsel.  The Investor acknowledges that it has had the opportunity to review this Agreement, the exhibits and schedules attached hereto and the transactions contemplated by this Agreement with its own legal counsel.  Each Investor is relying solely on such counsel and not on any statements or representations of the HTL Parties or its agents for legal advice with respect to this investment or the transactions contemplated by this Agreement.

 

4.15           Tax Advisors.  The Investor has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement.  With respect to such matters, the Investor relies solely on such advisors and not on any statements or representations of the HTL Parties or any of their agents, written or oral.  The Investor understands that it (and not the HTL Parties) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 

4.16           Legends.  Such Investor understands and agrees that the certificates evidencing the Shares, or any other securities issued in respect of the Shares upon any stock split, stock dividend, recapitalization, merger, consolidation or similar event, may bear legends relating to restrictions on transfer under federal and state securities laws and legends required under applicable state securities laws.

 

SECTION 5

 

Miscellaneous

5.1           Amendment.  Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument referencing this Agreement and signed by the HTL Parties and the Investors holding a majority of he Shares transferred pursuant to this Agreement (excluding any of such shares that have been sold to the public or pursuant to Rule 144).  Any such amendment, waiver, discharge or termination effected in accordance with this paragraph shall be binding upon each holder of any securities purchased under this Agreement at the time outstanding (including securities into which such securities have been converted or exchanged or for which such securities have been exercised) and each future holder of all such securities.  Each Investor acknowledges that by the operation of this paragraph, the holders of a majority of the Shares issued pursuant to this Agreement (excluding any of such shares that have been sold to the public or pursuant to Rule 144) will have the right and power to diminish or eliminate all rights of such Investor under this Agreement.

 

  

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5.2           Notices.  All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, or otherwise delivered by hand or by messenger addressed:

 

(a)           if to an Investor, at the Investor’s address, as set forth on Exhibit A, as may be updated in accordance with the provisions hereof;

 

(b)           if to any other holder of any Shares, at such address, as shown in the records of HTL, or, until any such holder so furnishes an address, to HTL, then to and at the address of the last holder of such Shares for which HTL has contact information in its records;

 

(c)           if to the Company, to11-2, Jalan 26/70A, Desa Sri Hartamas, 50480 Kuala Lumpur, Malaysia, facsimile number 603-3324-0211, attention: Chief Executive Officer;

 

(d)           if to HTL, to 703 Liven House, 61-63 King Yip Street, Kwun Tong, Hong Kong,  facsimile number 852 2111 0121, attention:  Chief Executive Officer.

 

Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given when delivered if delivered personally, or, if sent by mail, at the earlier of its receipt or three (3) business days after the same has been deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid.

 

5.3           Governing Law.  This Agreement shall be governed in all respects by the internal laws of the State of Nevada as applied to agreements entered into among Nevada residents to be performed entirely within Nevada, without regard to principles of conflicts of law.

 

5.4           Brokers or Finders.  The Company shall indemnify and hold harmless each Investor from any liability for any commission or compensation in the nature of a brokerage or finder’s fee or agent’s commission (and the costs and expenses of defending against such liability or asserted liability) for which such Investor or any of its constituent partners, members, officers, directors, employees or representatives is responsible to the extent such liability is attributable to any inaccuracy or breach of the representations and warranties contained in Section 3.10.  Each Investor, severally and not jointly, agrees to indemnify and hold harmless the HTL Parties and each other Investor from any liability for any commission or compensation in the nature of a brokerage or finder’s fee or agent’s commission (and the costs and expenses of defending against such liability or asserted liability) for which the HTL Parties, any other Investor or any of their constituent partners, members, officers, directors, employees or representatives is responsible to the extent such liability is attributable to any inaccuracy or breach of the representations and warranties contained in Section 4.13.

 

5.5           Expenses.  The HTL Parties and the Investors shall each pay their own expenses in connection with the transactions contemplated by this Agreement.

 

5.6           Survival.  The representations, warranties, covenants and agreements made in this Agreement shall survive any investigation made by any party hereto and the closing of the transactions contemplated hereby for six months from the date of the Closing.

 

 

  

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5.7           Successors and Assigns.  This Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred, delegated or sublicensed by any Investor without the prior written consent of the HTL Parties.  Except as set forth in the preceding sentence, any attempt by an Investor without such permission to assign, transfer, delegate or sublicense any rights, duties or obligations that arise under this Agreement shall be void.  Subject to the foregoing and except as otherwise provided herein, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties.

 

5.8           Entire Agreement.  This Agreement, the exhibits and schedules thereto and the other documents delivered pursuant hereto and thereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof, and no party shall be liable or bound to any other party in any manner with regard to the subjects hereof or thereof by any warranties, representations or covenants except as specifically set forth herein or therein.  Each party expressly represents and warrants that it is not relying on any oral or written representations, warranties, covenants or agreements outside of this Agreement.

 

5.9           Severability.  Unless otherwise expressly provided herein, the rights of the Investors hereunder are several rights, not rights jointly held with any of the other Investors.  In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision, and the parties agree to negotiate, in good faith, a legal and enforceable substitute provision which most nearly effects the parties’ intent in entering into this Agreement.

 

5.10           Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.  All references in this Agreement to sections, paragraphs, exhibits and schedules shall, unless otherwise provided, refer to sections and paragraphs hereof and exhibits and schedules attached hereto.

 

5.11           Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument.

 

5.12           Jurisdiction; Venue.  With respect to any disputes arising out of or related to this Agreement, the parties consent to the exclusive jurisdiction of, and venue in, the courts in the State of Nevada.

 

5.13           Facsimile.  This Agreement may be executed via facsimile.  In the event that any signature is delivered by facsimile transmission or electronic portable document format such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or electronic portable document format signature page were an original thereof.

 

5.14           Further Assurances.  Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability company, partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully effectuate this Agreement.

 

5.15           Waiver of Potential Conflicts of Interest.  Each of the Investors and the Company acknowledges that Chen-Drake Law Group, P.C. (the “Firm”) is representing only the Company in this transaction.By executing this Agreement, each of the Investors and the HTL Parties hereby agrees that it has had the opportunity to retain independent legal counsel with respect to the preparation, review and negotiation of this Agreement and waives any actual or potential conflict of interest which may arise as a result of the Firm’s past, present and future representation of any of the Investors or the HTL Parties.  Each of the Investors and the HTL Parties represents that it has had the opportunity to consult with independent counsel concerning the giving of this waiver.

 

  

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5.16           Attorneys’ Fees.  In the event that any suit or action is instituted under or in relation to this Agreement, including without limitation to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this Agreement, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals.

 

 

(Signature pages to follow)

  

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IN WITNESS WHEREOF, this Agreement is executed as of the date first written above.

 

COMPANY:

 

 

HOME TOUCH HOLDING COMPANY

a Nevada corporation

 

By:   /s/ Liong Tat Teh                                                                             

           Liong Tat Teh, Chief Financial Officer

 

HTL:

 

 

HOME TOUCH LIMITED

a Hong Kong China corporation

By:  /s/ Ng Tze Lung David Gunawan                                                   

Ng Tze Lung David Gunawan, Chief Executive Officer

 

 

 

 

Home Touch Holding Company / Home Touch Limited

Signature Page to Common Stock Purchase Agreement

  

  

  

IN WITNESS WHEREOF, this Agreement is executed as of the date first written above.

 

 

INVESTORS:

 

UP PRIDE INVESTMENTS LIMITED,

a British Virgin Islands limited liability company

By:  /s/ Ng Tze Lung David Gunawan                                                        

Ng Tze Lung David Gunawan, Sole Member

MAGICSUCCESS INVESTMENTS LIMITED,

a British Virgin Islands limited liability company

By:  /s/ Stella Wai Yau                                                                                 

Stella Wai Yau, Sole Member

 

 

 

 

Home Touch Holding Company / Home Touch Limited

Signature Page to Common Stock Purchase Agreement

  

  

  

 

EXHIBIT A

 

SCHEDULE OF INVESTORS

	

Name and Address

	

Number of

Shares

	

Purchase Price

	
Up Pride Investments Limited

Attn:  David Gunawan Ng

Unit 01, 22/F., Block E

Perfect Mount Gardens

1 Po Man Street

Shaukeiwan, Hong Kong

	
5,000

	
$10,000

	
Magicsuccess Investments Limited

Attn:  Stella Wai Yau

Unit 01, 22/F., Block E

Perfect Mount Gardens

1 Po Man Street

Shaukeiwan, Hong Kong

	
5,000

	
$10,000

	
TOTAL:

	  	
US$ 20,000hometouch_8k-ex1004.htm

Exhibit 10.4

 

TENANCY AGREEMENT (COMMERCIAL)

 

 

THIS TENANCY AGREEMENT is made on the29th October TwoThousand and Ten (2010)

 

BETWEEN

 

ATOMIC VISION SDN. BHD. (Company No. 914627-K), a company incorporated in Malaysia under the Companies Act 1965 with its registered office at 37-2 (Room 1), 2nd Floor, Jalan Metro Perdana 7, Taman Usahawan Kepong, Kepong Utara, 52100 Kuala Lumpur (hereinafter referred to as “the Landlord” which expression where the context so admits shall include the Landlords’ successors in title and permitted assigns) of the one part.

 

AND

 

Union Hub Technology Sdn. Bhd. (Reg. No.807388-P)(hereinafter  referred toas “the Tenant” which expression where the context so admits shall include theTenant’s successors in title and permitted assigns) of the other part.

 

WHEREBY IT IS AGREED as follows: -

 

1. The Landlord let the Tenant take ALL THOSE PREMISES known as 11-2, Jalan 26/70A, Desa Sri Hartamas, 50480 Kuala Lumpur(hereinafter referred to as “the said premises”) for a term of 24 months commencing on  01st DCEMBER 2010to 30th   NOVEMBER2012at the monthly rental of Ringgit Malaysia Two Thousand Five Thousand  (RM2,500.00) excluding GST:

 

2. The monthly rental amount of Ringgit Malaysia Two Thousand Five Hundred Only (RM2.500.00) -any announcement/revision made on GST by the government would similarly be applied-shall be payable in advance on the first day of every calendar month of the term hereby created, without demand or any deduction or notice in advance to the Landlord.

 

3. THE TENANT hereby agrees with the Landlord as follows: -

 

ADVANCE RENTAL PAYMENT & SECURITY DEPOSIT

 

(a) To pay the rental to the Landlord on the dates and in the manner aforesaid;

 

(b) To pay the Landlord immediately on signing of this Agreement RM7,500.00 equivalent to 3 months’ rental. The sum of RM5,000.00which shall be held by the Landlord (hereinafter called the “security deposit”) as a security deposit until the expiration of the term hereby created. The balance of RM2,500.00 shall be rental paid in advance forthe first month of the Tenancy covering the period 01stDecember 2010 to 31stDecember 2010. If the Tenant shall fail to perform and observe the covenants and conditions herein contained and or if there is any premature termination of the tenancy, the said security deposit shall be forfeited without prejudice to any of the Landlord’s other rights and remedies to claim for damages and compensation at law or in equity. PROVIDED ALWAYS that if the Tenant shall duly perform and observe the Tenant’s covenants herein contained, the Landlord shall on the expiration of the term hereby created refund the said security deposit without interest to the Tenant within 30 days upon determination of the tenancy or after the handover inspection has been jointly conducted, whichever is the later.

 

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(c) Notwithstanding, Clause 3(b) above:

 

APPROVALS BY RELEVANT AUTHORITIES

 

i) in the event that at the end of 30 days from the execution of this Agreement all necessary approvals whatsoever from all the relevantauthorities has not been issued, the tenancy shall not commence on the date stated in Clause 1 above.

 

ii) in the event the Tenant surrenders the tenancy by reason of failure to obtain the necessary approvals as aforestated within thestipulated time and the failure is not by reason of any default of the Landlord, the Landlord shall be entitled to forfeit the security depositpaid under this Agreement.

 

iii) The rental for the first month of the tenancy which has been paid in advance by the Tenant shall be forfeited if the Tenant remains inpossession of the premises at the expiry of 30 days from the date hereof without obtaining all the approvals from the relevantauthorities.

 

TO INDEMNIFY LANDLORD

 

iv) To pay or indemnify the Landlord against all charges for all utilities (eg. water, gas, electricity, sewerage fee) and for any appliances hired from or services supplied by the various service providers  or any telephone hired from or telephone services provided by operators of telecommunications in Malaysia or any other suppliers and any government tax or taxes payable on such charges.

 

SALE / COLLECTIVE SALE

 

v) That the Landlord hereby reserved the right to give two (02) months notice to the Tenant (without any compensation) after a minimum of Twelve (12) months  period of the tenancy to vacate the premises should notice be given by the Owner to hand over the premises due to an En-Bloc/Collective Sale / Sale of the building.

 

LIABILITY OF TENANT

 

4. (a) At the Tenant’s own cost and expense to keep in good and tenantable repair and condition the said premises including all doors, glass windows, shutters, locks and thesanitation and water apparatus and air- conditioning units hereof together with furniture fixtures and fitting throughout the tenancy and also to make good any stoppage of or damage to any pipes caused by the negligence of the Tenant, servants, agents, customers, licensees or invitees.

 

INTERIOR REPAIRS

 

(b) To replace blown electric bulbs/tubes and to repair all leakages at the Tenant’s own cost and expense.

 

 

	Page 2 of 9	Tenant	Landlord

  

  

  

 

(c) To permit the Landlord and their authorized agent(s) with or without workmen and others at all reasonable times upon prior appointment to enter upon the said premises and examine the state and condition thereof and the furniture fixtures and fittings and thereupon the Landlord may serve on the Tenant notice in writing specifying any repairs to be effected on damage caused by negligence of the Tenant, his employees, servants or licensees necessary to be done and require the Tenant forthwith to execute the same and if the Tenant shall not within ten (10) days after the service of such notice proceed diligently with execution of such repairs therein the Landlord or his agents shall have the right to enter upon the said premises and the said premises shall be forthwith recoverable by action. The Landlord shall be entitled to deduct the cost of repair from the security deposit whereupon the Tenant shall pay such amount to the Landlord so that the deposit shall always remain at RM5,000.00

 

ACCESS TO PREMISES FOR NEW TENANTS

 

(d) To permit the Landlord and/or their authorised agent(s) three (3) calendar months prior to the expiry of the term hereby created, upon prior appointment to bring prospective tenants to view the said premises for the purpose of letting the same. In addition, to permit the Landlord from time to time by prior appointment to bring prospective purchasers to view the said premises for the purpose of selling the same, in which case the sale would be subjected to terms and conditions hereby created.

 

AUTHORIZED USE AS INTENDED OFFICE

 

(e) At all times, to use the premises or any part thereof strictly for the purpose of as authorized by the landlord . At all times, the usage of the premises for any purpose whatsoever shall be subject to the approval of Landlord. At all times the Tenant shall comply with the Rules and Regulations(for which it is licensed to operate) and by-laws of the local authorities.

 

CHANGE OF BUSINESS BY TENANT

 

(f) In the event the Tenant ceases to operate the intended business at the premises as aforesaid during the term, then, unless the Landlord and/or the relevant/competent authorities shall have agreed to the change of business, the Landlord shall be entitled to forfeit the deposit paid hereunder and terminate this Tenancy Agreement but without prejudice to any right of action of the Landlord in respect of any antecedent breach of the provisions and conditions of this Tenancy Agreement by the Tenant and without prejudice to any other rights at law or in equity which the Landlord may have against the Tenant.

 

STATUTORY REQUIREMENTS, PERMITS, LICENCES & APPROVALS

 

(g) The Tenant will notpermit or suffer the use of the Premises or any part thereof for any other purpose. The Tenant shall obtain prior to the commencement of the Tenancy and maintain throughout the term at its own cost all necessary statutory requirements, permits, licences and approvals from the relevant/competent authorities in connection with the Tenant’s operations as anOFFICE.. Any delay or inability in obtaining the necessary approvals from the relevant/competent authorities shall not be a ground for the Tenant to refuse to make any payments due to the Landlord under or to be bound by this Tenancy Agreement.

 

 

	Page 3 of 9	Tenant	Landlord

  

  

  

 

TO INDEMNIFY THE LANDLORD

 

(h) To comply in all respects and not at any time during the continuance of the term hereby granted to do or omit or permit to be done or omitted anything on the demised property the doing or omission of which shall be a contravention of any provisions of all present and future laws, legislation, subsidiary legislation, statutes, orders, by-laws, rules and regulations whatsoever (collectively “Laws”) for the time being in force and requirements of any competent authority and notices of orders which may be given by any governmental, quasi-governmental, statutory or regulatory authority including without limitation any licensing or civic authority having jurisdiction or authority over or in respect of the premises or the user thereof, imposed on the occupier of and relating to the premises or anything done in or upon the premises by the Tenant, and shall indemnify the Landlord on a solicitor and client basis against all actions proceedings damages penalties costs charges claims and demands which may be brought or made by reason of such Laws or requirements or notices or orders or any default in compliance with them.

 

UNAUTHORIZED ALTERATIONS AND ADDITIONS

 

(i) Not to make or permit any alterations or additions to the said premises or to pull down or alter the construction and internal arrangement of the premises without first obtaining the written consent of the Landlord.

 

RENT-FREE FITTING OUT PERIOD

 

(j) The Tenant shall have a 2 weeks rent-free fitting out period from 15th November 2010 till 30th November 2010. For any fitting out works, relating to sanitary and plumbing works, electrical works, air- conditioning and mechanical ventilation works and fire protection works, the Tenant shall seek prior written consent of the Landlord. such approval not to be unreasonably withheld or delayed. The Tenant can engage his contractor to carry out the works.Not to hack any holes or drive anything whatsoever into the walls and ceiling without first obtaining written consent from the Landlord exceptanything reasonably done for the purpose of hanging pictures, paintings and the like.

 

NO ILLEGAL / IMMORAL USE AND TO CAUSE NUISANCE

 

(k) Not to do or permit to be done upon the said premises by the Tenant, servants, agents, customers, licensees or invitees anything which may be or may become a nuisance or annoyance to or in any way interfere with the quiet and comfort of the neighbourhood, including but not limited to permitting such number of persons to be at the premises, which at the full discretion of the Landlord may be or may become a nuisance or annoyance to or in any way interfere with the quiet and comfort of the Building.

 

(l) Not to engage any foreign person(s) without a valid work permit or employment pass for the purpose of working on the premises.

 

(m) Not to use the said premises for any illegal or immoral purposes including but not limited to the provision of shelter for persons without valid travel documents or passes issued by the immigration authorities.

 

(n) Not to mortgage, assign, sublet, license, share or part with the actual or legal possession of the said premises or any part thereof without first obtaining the written consent of the Landlord.

 

 

	Page 4 of 9	Tenant	Landlord

  

  

  

 

NO OBSTRUCTION

 

(o) Not to store any goods or things upon or otherwise obstruct, litter or make untidy the common areas in the Building.

 

(p) Not to block up darken or obstruct or obscure any of the windows or lights in the said premises or the Building except otherwise permitted or with the knowledge of the landlord.

 

NOT TO AFFIX UNAUTHORIZED SIGN(S) ON BUILDING EXTERIOR

 

(q) Not without the written consent of the Landlord to affix or otherwise exhibit or permit to be affixed or otherwise exhibited upon the exterior of the said premises or any part thereof any signboard, name-plate, placard, poster or advertising material or the like whatsoever provided that the Landlord shall not unreasonably withhold his consent to the erection by the Tenant of a sign board of a reasonable size at the entrance to the said premises.

 

NO UNAUTHORIZED FOOD/DRINKS/TOUTING

 

(r) Not without the written consent of the Landlord to permit the vendor of food or drinks or the servants or agents of such vendor to bring onto thesaid premises which consent shall not be unreasonably withheld.

 

(s) Not to tout or permit his servants or agents to tout or to use freelance touts in the common areas of the Building or any part thereof.

 

OBSERVANCE AND PERFORMANCE OF RULES & REGUALTIONS

 

(t) To observe and perform and to cause all its employees, independent contractors, agents, invitees and licensees to observe and perform all the rules and regulations made/imposed by the Management Corporation Strata Title of the Building.

 

NOTICE RECEIVED FROM GOVT/STAT PUBLIC, ETC

 

(u) Should the Tenant receive any notice from any governmental, statutory public or the public amenities service providers with respect of the said premises to give notice thereof forthwith in writing to the Landlord.

 

DANGEROUS MATERIAL

 

(v) Not to keep or permit to be kept on the said premises or any part thereof any materials of a dangerous or explosive nature the keeping of which may contravene and/or breach any local statutes or regulations whereby the Landlord shall be exposed to penalty, fine and forfeiture or in respect of which an increased rate of insurance may be required.

 

NOTIFICATION TO LANDLORD OF ANY OUTBREAK OF FIRE, ETC

 

(w) To give to the Landlord and/or its authorised representative notification as soon as practicable of any outbreak of fire on the said premises and/or any damage or destruction caused by acts of terrorism, explosions, storms, tempest, floods or aircraft dropped therefrom.

 

INSURANCE / CLAIMS DUE TO TENANT’S NEGLIGENCE

 

(x) Not to do or permit or suffer to be done anything whereby any policy or policies of insurance on the said premises against damage by fire may become void or voidable or whereby the rate of premium thereon might be increased and to repay to the Landlord all sums paid by way of increased premiums and all expenses incurred in or about any renewal of such policy or policies rendered necessary by a breach of this covenant and any such payments shall be added to the rent hereby reserved and be recoverable as rent.

 

 

	Page 5 of 9	Tenant	Landlord

  

  

  

 

5. At the expiration of the term hereby created to peaceably deliver up the Landlord the said premises together with all the furniture fixtures and fittings in reasonable condition, authorised alterations or additions and damage by fair wear and tear and Act of God excepted. In the event damages caused due to act of negligence by the Tenant, servants, agents, customers, licensees or invitees, replacement cost of the items less depreciation (if any) will be borne by the Tenant.

 

ERECTIONS ON EXTERNAL WALLS

 

6. Not to erect or permit to project outside the said premises any radio or television aerial or antenna or any other similar devices or equipment nor do or permit to be done anything to the external walls of the said premises or the Building in which the said premises are comprised which may in the opinion of the Landlord may or alter the appearance of the Building or which may be objected to by the governing authorities.

 

THIRD PARTY CLAIMS

 

7. To be wholly responsible for and to indemnify the Landlord against any proceedings actions claims or demands whatsoever by any person for loss and damage suffered as a result of the want of repair of the premises or any apparatus, installation or wiring upon or in the premises or the spread of fire or the overflow of water or the escape of any substance or anything from the said premises due to the default or negligence of the Tenant, servants, agents, licensees or invitees.

 

YIELDING UP OF PREMISES

 

8. To return to the Landlord all keys upon the expiry or earlier determination of the term hereby created.

 

AND THE LANDLORD hereby agrees with the Tenant as follows: -

 

PAYMENT OF TAXES

 

9.(a) Save as otherwise set out in this Agreement, to pay all taxes, assessments and any insurance premium payable by the Landlord in respect of the said premises during the term hereby created.

 

QUIET POSSESSION / ENJOYMENT

 

(b) That the Tenant paying the rental and all other charges hereby reserved and observing and performing the several covenants and stipulation herein contained shall peaceably and quietly hold and enjoy possession of the said premises during the term hereby created without any interruption by the Landlord or any person or persons claiming under or in trust for the Landlord.

 

ACCESS OF PREMISES DURING FITTING OUT PERIOD

 

(c) Subject to Clause 4(b) and 4(c) above, to allow the Tenant to enter into possession of the said premises prior to execution of this Agreement and remain therein rent free for a period from15th November 2010 till 30th  November 2010for the purpose of renovation works subject to the Tenant complying with all legal requirements and in particular the terms of Clause 4(l) above.

 

 

	Page 6 of 9	Tenant	Landlord

  

  

  

 

AND PROVIDED ALWAYS and it is hereby agreed as follows: -

 

DEFAULT OF TENANT

 

(d) If rent hereby reserved or any part thereof shall be unpaid for five (5)days after becoming payable (whether formally demanded or not) OR ifany covenants or stipulations on the Tenant’s part herein containedshall not be performed or observed OR if any time the Tenant shall enter into any composition with his creditors or suffer any distress or execution to be levied on his own goods OR if the Tenant or any other person in whom for the time being this tenancy is vested shall become bankrupt, then and in any of the said cases it shall be lawful for the Landlord at any time thereafter to re-enter the said premises and resume possession of the premises thereupon this tenancy shall be absolutely determined but without prejudice to the right of action of the Landlord in respect of any breach of the Tenant’s covenants herein contained.

 

RENT IN ARREARS

 

(e) Without prejudice to the rights powers and remedies of the Landlord otherwise under this Lease, the Tenant will pay to the Landlord interest at the rate of Twelve per cent (12%) per annum of any monies due but unpaid for five (5) days by the Tenant to the Landlord on any account whatsoever pursuant to this Lease such interest to be computedon the basis of a 365 day year from the due date for payment of the moneys in respect of which the interest is chargeable until payment of such moneys in full and to be recoverable in like manner as rent in arrears. PROVIDED THAT the said rate of interest shall apply both before as well as after judgment and any period of less than one month shall be treated as a period of one month. The Landlord shall be entitled to recover such interest from the Tenant as though such interest was rent in arrears.

 

UNTENANTABILITY LEADING TO SUSPENSION OF RENT

 

(f) In the event that the said premises or any part thereof at anytime during the term hereby created is damaged or destroyed by fire, Act of God or other cause beyond the control of the Landlord so as to render the said premises unfit for use or access thereto impossible then the rental hereby reserved or a fair proportion thereof according to the nature an extent of the damage sustained shall be suspended until the said premises shall again be rendered fit for occupation and use or until access thereto may be obtained.

 

NOTICE TO BE SERVED BY LANDLORD AND TENANT

 

(g) Any notice under this Agreement required to be served upon the Tenant shall be in writing and shall be sufficiently served if forwarded to the Tenant by registered post to the abovementioned address11-2, Jalan 26/70A, Desa Sri Hartamas, 50480 Kuala Lumpur or to its last known place of business in Malaysia AND any notice required to be served upon the Landlord shall be served if delivered personally or sent to the Landlord  by registered post or sent to the Landlord at their last known address. Any notice sent by registered post shall be deemed to be given at the time when in due course of post it would be expected to be delivered to the address to which it is sent.

 

UNTENANTABILITY LEADING TO TERMINATION OF LEASE

 

(h) Notwithstanding anything to the contrary, in the event of the complete destruction of the said premises by a cause beyond the control of both parties hereto; either party may terminate this Agreement immediately without being liable therefore to the other party.

 

 

	Page 7 of 9	Tenant	Landlord

  

  

  

 

STAMP DUTY

 

(i) The cost of stamping of this Agreement in duplicate shall be borne by the Tenant and paid forthwith upon the Tenant’s execution of this Agreement.

 

OPTION TO RENEW

 

(j) The Landlord shall on the written request of the Tenant made at least 3 months before the expiration of the term hereby created and if there shall not at the time of such request be any existing breach or non observance of any of the covenants contained herein grant the Tenant an extension of 12 months from the expiry of the term created herein on the same terms and conditions except for the rent payable which shall be mutually agreed upon. If before the expiry of the existing term there is no mutual agreement on the rental the Tenant shall not be entitled to an extension of the tenancy under this Agreement.

 

NON-LIABILITY OF LANDLORD

 

10. Notwithstanding anything to the contrary in this Agreement, the Landlord shall not in any way whatsoever or howsoever be responsible or liable to the Tenant or the Tenant’s licensees servant agents or other persons in the said premises or calling upon the Tenant or the immediate occupant in respect of any happening or injury suffered or damage to or loss of any chattel or any apparatus or other equipment, electronic, electrical or otherwise or property sustained on the said premises or in the building or buildings adjacent thereto owing to any failure, malfunction explosion or suspension of the electricity or gas or water supply to the said premises or any leakage of water from anywhere or the influx of rain water into the said premises or any act, omission, default, misconduct or negligence of any partner or other servant or employee, independent contractor or agent of the Landlord in or about the performance or purported performance of any duty relating to the provision of the said services or facilities or any of them.

 

ASSIGNMENT OF LEASE

 

11. The Landlord shall be at liberty at any time to assign this Agreement and the benefit thereof to any party or person as the Landlord shall deem fit.

 

WAIVER OF DEFAULT

 

12. No condoning, excusing or overlooking by the Landlord of any default, breach or non-observance, or non-performance by the Tenant at any time or times of any of the Tenant’s obligations herein contained, shall operate as a waiver of the Landlord’s rights hereunder in respect of any continuing or subsequent default, breach or non-observance or non-performance, or so as to defeat or affect in any way the rights and remedies of the Landlord hereunder in respect of any such continuing or subsequent default or breach, and no waiver by the Landlord shall be inferred from, or implied by anything done or omitted by the Landlord unless expressed in writing and signed by the Landlord. Any consent given by the Landlord shall operate as a consent only for the particular matter to which it relates and in no way shall be considered as a waiver or release of any of the provisions hereof nor shall it be construed as dispensing with the necessity of obtaining the specific written consent of the Landlord in the future, unless expressly so provided.

 

 

	Page 8 of 9	Tenant	Landlord

  

  

  

INSOLVENCY

 

13.In the event that the Tenant shall become insolvent or make any composition or arrangement with his creditors or shall suffer any execution to be levied on its goods, this Agreement shall forthwith terminate and the Landlord shall beentitled forthwith to re-enter the said premises but otherwise without prejudice to the Landlord’s all other rights and remedies under this Agreement.

 

GOVERNING LAW

 

14. The law applicable in any action arising out of this Agreement shall be the law of Malaysia and the parties hereto submit themselves to the exclusive jurisdiction of the courts of Malaysia.

 

 

 

IN WITNESS WHEREOF the parties hereto to have hereunto set their hand the day and year first before written.

 

	
SIGNED BY LANDLORD:

	  	  
	
ATOMIC VISION SDN. BHD. (914627-K)

	
)

	  
	
37-2 (Room 1), 2nd Floor,

	
)

	  
	
Jalan Metro Perdana 7

	
)

	  
	
Taman Usahawan Kepong,

	
)

	  
	
Kepong Utara

	
)

	  
	
52100 Kuala Lumpur)

	  	  
	  	  	  
	
In the presence of:

	
)

	  
	
Name:

	
)

	  
	
NRIC No.

	
)

	  
	  	  	  
	  	  	  
	  	  	  
	
SIGNED BY TENANT:

	  	  
	
Union Hub Technology Sdn. Bhd.

	
)

	  
	
(Reg. No.807388-P)

	
)

	  
	
Address same as the “said premises”

	
)

	  
	  	  	  
	
In the presence of:

	
)

	  
	
Name :

	
)

	  
	
NRIC No.

	
)

	  

 

 

 

  
 

	Page 9 of 9	Tenant	Landlord

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