Document:

Unassociated Document

 

Exhibit 10.1

 

SUBSCRIPTION AGREEMENT

UHF INCORPORATED

SUBSCRIPTION AGREEMENT (this Agreement"), dated as of August 1, 2011, between UHF Incorporated., a Michigan corporation (the "Company") with its principal offices at 60 Port Perry Road, North Versailles, Pennsylvania 15137, and each of the undersigned subscribers (each a “Subscriber,” and collectively, the “Subscribers”).  

Preliminary Statement

         The Company is offering to sell to the Subscribers, and the Subscribers are willing to purchase from the Company, an aggregate of 40,519,246  shares of the Company’s common stock, $0.001 par value (the “Shares”), for a total purchase price of $133,500.00 (the “Purchase Price”).

       The Company and the Subscribers are executing and delivering this Agreement in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) afforded by the provisions of Section 4(2), Section 4(6) and/or Regulation D ("Regulation D") as promulgated by the United States Securities and Exchange Commission (the "SEC") under the Securities Act.

NOW, THEREFORE, in consideration of the mutual covenants and other agreements contained in this Agreement the Company and the Subscribers hereby agree as follows:

1.           Subscription for Shares.

           The Subscribers hereby subscribe to purchase the Shares for the Purchase Price. The number of Shares to be purchased by each Subscriber and the price therefor are set opposite the name of such Subscriber on Schedule A hereto. The Company shall deliver to each Subscriber, a certificate representing the number of Shares to be purchased by such Subscriber, registered in the name of such Subscriber, against receipt of the Purchase Price. The sale of the Shares is subject to the sale of 6,331,922 shares of the Company’s common stock, par value $0.001 (the “Common Stock”), by Dachris Ltd., representing approximately 66.76% of the outstanding shares of Common Stock, to the Subscribers pursuant to a separate Stock Purchase Agreement dated on or about the date hereof (the “Stock Purchase Agreement”).

 

2.           Representations, Warranties and Covenants of the Company. The Company represents and warrants to and agrees with Subscribers that, except as set forth in the Company's Form 10-K for the year ended December 31, 2010, and all periodic reports filed with the SEC thereafter (hereinafter referred to collectively as the "SEC Reports"), including the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2011 (the "First Quarter 2011 Form 10-Q"), that the statements contained in this Section 2 are correct and complete as of the date of this Agreement and will be correct and complete as of the date of issuance of the Shares:  

 

  

  

  

            (a) Due Incorporation. The Company is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has the requisite corporate or other power to own its properties and to carry on its business as disclosed in the SEC Reports. The Company does not own or have an equity interest in any corporation, limited or general partnership, limited liability company, trust, estate, association, joint venture or other business entity.

            (b) Authority.  The Company has full corporate power and authority necessary to enter into and deliver this Agreement and to perform its obligations hereunder. This Agreement and the transactions contemplated by this Agreement have been duly authorized by all necessary corporate action.

            (c) Outstanding Securities. All of the issued and outstanding shares of the Company’s Common Stock have been duly and validly authorized and issued, are fully paid and non-assessable (with no personal liability attaching to the holders thereof or to the Company) and are free from preemptive rights or rights of first refusal held by any person.  All of the issued and outstanding shares of Common Stock have been issued pursuant to either a current effective registration statement under the Securities Act or an exemption from the registration requirements thereof, and were issued in accordance with all applicable Federal and state securities laws.

            (d) Enforceability. This Agreement, when duly executed and delivered on behalf of the Company, will be a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights generally and to general principles of equity regardless of whether enforcement is sought in a court of law or equity.

            (e) Consents. No consent, approval, authorization, filing with or notice to any person, entity or public authority, or order of any court, governmental agency or body or arbitrator having jurisdiction over the Company, or the Company's shareholders is required for the execution by the Company of this Agreement and compliance and performance by the Company of its obligations under this Agreement, including, without limitation, the issuance and sale of the Shares, other than filings required by Federal or state securities laws, which filings have been or will be made by the Company on a timely basis.

            (f) No Violation or Conflict. Assuming the representations and warranties of the Subscribers in Section 3 are true and correct, neither the issuance and sale of the Shares nor the performance of the Company's obligations under this Agreement will:

                      (i) violate, conflict with, result in a breach of, or constitute a default (or an event which with the giving of notice or the lapse of time or both would be reasonably likely to constitute a default in any material respect) under (A) the articles of incorporation or bylaws of the Company, each as amended as of the date hereof, (B) to the Company's knowledge, any decree, judgment, order, law, treaty, rule, regulation or determination applicable to the Company or of any court, governmental agency or body, or arbitrator having jurisdiction over the Company, or (C) the terms of any bond, debenture, note or any other evidence of indebtedness, or any agreement, stock option or other similar plan, indenture, lease, mortgage, deed of trust or other instrument to which the Company is a party, or by which the Company  is bound, or to which any of the properties of the Company is subject; or

                      (ii) result in the creation or imposition of any lien, charge or encumbrance upon the Shares or any of the assets of the Company.

            (g) The Shares.  The Shares upon issuance:

 

  

  

  

 

                      (i) will be free and clear of any security interests, liens, claims or other encumbrances, subject to restrictions upon transfer under the Securities Act and any applicable state securities laws;

                      (ii) will have been duly and validly authorized and duly and validly issued, and upon payment of the purchase price specified in this Agreement the Shares will be fully paid and non-assessable (with no personal liability attaching to the holders thereof or to the Company) and will be free from preemptive rights or rights of first refusal held by any person; provided the representations of the Subscribers herein are true and accurate and the Subscribers take no actions or fail to take any actions required for their purchase of the Shares to be in compliance with all applicable laws and regulations; and

                      (iii) will have been issued in reliance upon an exemption from the registration requirements of and will not result in a violation of Section 5 under the Securities Act.

 

            (h)  Litigation. There is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any court, governmental agency or body, or arbitrator having jurisdiction over the Company that would affect the execution by the Company or the performance by the Company of its obligations under this Agreement. There is no pending or, to the knowledge of the Company, or threatened action, suit, proceeding or investigation before any court, governmental agency or body, or arbitrator having jurisdiction over the Company.

 

            (i) Reporting Company. The Company is a publicly-held company subject to reporting obligations pursuant to Section 13 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and the Common Stock is registered pursuant to Section 12(g) of the Exchange Act.

            (j) Information Concerning Company. The SEC Reports contain all material information relating to the Company and its operations and financial condition as of their respective dates and all the information required to be disclosed therein. Except as disclosed in the Company’s SEC Reports, since the last day of the fiscal year of the most recent audited financial statements included in the SEC Reports ("Latest Financial Date"), there has been no occurrence or event which would have a material adverse effect on the financial condition, results of operations, properties or business of the Company. To the undersigned director and officer’s best knowledge, the SEC Reports do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances in which made, except that the Company failed to file certain Current Reports on Form 8-K reporting the resignation of certain directors.

 

            (k) Financial Statements. The financial statements of the Company included in the SEC Reports (hereinafter collectively, the “Financial Statements”) were prepared in accordance with generally accepted accounting principles consistently applied and present and reflect fairly the financial position of the Company at the respective balance sheet dates and the results of its operations and cash flows for the periods then ended, provided, however, that the financial statements included in the First Quarter 2011 Form 10-Q are subject to normal year-end adjustments and lack footnotes and other presentation items.  The Company has made and kept books and records and accounts which are in reasonable detail and which fairly and accurately reflect the activities of the Company, subject only to year-end adjustments. The Company has heretofore provided Subscribers or their agent or attorney with the contact information of the Company’s auditors and has otherwise authorized the auditors to converse with the Subscribers or their agents or attorneys and answer any questions they might have.

 

  

  

  

            (l) No Undisclosed Liabilities.  The Company does not have any liabilities of any kind or nature, whether known or unknown, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, and whether due or to become due (“Liabilities”), which are not disclosed in the SEC Reports, other than those incurred in the ordinary course of the Company's business since the Latest Financial Date.  Since the Latest Financial date, there has been no occurrence or event which would have a material adverse effect on the financial condition, results of operations, properties or business of the Company.  As of the date of issuance and payment for the Shares (the “Closing Date”), the Company will have no Liabilities.

 

            (m) No Undisclosed Events or Circumstances. Since the Latest Financial Date, no event or circumstance has occurred or exists with respect to the Company or its business, properties, operations or financial condition, that, under applicable law, rule or regulation, requires public disclosure or announcement prior to the date hereof by the Company but which has not been so publicly announced or disclosed in the SEC Reports.

            (n) Defaults.  Except for such issues as arise out of the failure of the Company to have seven (7) directors prior to the date hereof, the Company is not in violation of its restated articles of incorporation or bylaws.  The Company is not in default under or in violation of any note, loan agreement, security agreement, mortgage, contract, franchise agreement, distribution agreement, lease, alliance agreement, joint venture agreement, other agreement, license, permit, consent, approval or instrument to which it is a party, and no event has occurred which, with or without the lapse of time or giving of notice, or both, would constitute such default thereof by the Company or would cause acceleration of any obligation of the Company or would adversely affect the business, operations, or financial condition of the Company.  To the knowledge of the Company, no party to any note, loan agreement, security agreement, mortgage, contract, franchise agreement, distribution agreement, lease, alliance agreement, joint venture agreement, other agreement, license, permit, consent, approval or instrument with or given to the Company is in default thereunder and no event has occurred with respect to such party, which, with or without the lapse of time or giving of notice, or both, would constitute a default by such party or would cause acceleration of any obligations of such party.  The Company is (i) not subject to nor in default with respect to any order of any court, arbitrator or governmental body or subject to or party to any order of any court or governmental authority arising out of any action, suit or proceeding under any statute or other law respecting antitrust, monopoly, restraint of trade, unfair competition or similar matters, or (ii) to the Company's knowledge not in violation of any statute, rule or regulation of any governmental authority which violation would have a material adverse effect on the financial condition, results of operations, properties or business of the Company.  There are no claims, actions, suits, proceedings or labor disputes, inquiries or investigations (whether or not purportedly on behalf of the Company), pending or, to the best of the Company's knowledge, threatened, against the Company, at law or in equity or by or before any Federal, state, county, municipal or other governmental department, the SEC, the Financial Industry Regulatory Authority, board, bureau, agency or instrumentality, domestic or foreign, whether legal or administrative or in arbitration or mediation, nor is there any basis for any such action or proceeding.  Neither the Company, nor any of its assets are subject to, nor is the Company in default  with respect to, any order, writ, injunction, judgment or decree that could adversely affect the financial condition, business, assets or prospects of the Company.

 

            (o) Compliance with Laws.  The Company is in compliance with all laws, rules and regulations of all Federal, state, local and foreign government agencies having jurisdiction over the Company or affecting the business, assets or properties of the Company, except where the failure to comply has not and will not have a material adverse effect on the financial condition, results of operations, properties or business of the Company.  The Company possesses all licenses, permits, consents, approvals and agreements (collectively, “Licenses”) which are required to be issued by any and all applicable Federal, state, local or foreign authorities necessary for the operation of its business and/or in connection with its assets or properties, except where the failure to possess such Licenses has not and will not have a material adverse effect on the financial condition, results of operations, properties or business of the Company.

 

  

  

  

 

            (q) Transactions with Affiliated Parties. To the Company's knowledge, no officer, director or 5% stockholder of the Company and no Affiliate of any such person engages in business with the Company.

 

            (r) Taxes. The Company has filed or will timely file with the appropriate taxing authorities all returns in respect of taxes required to be filed through the date hereof and has timely paid or will timely pay all taxes that it is required to pay or has established an adequate reserve therefore.  There are no pending or, to the knowledge of the Company, threatened audits, investigations or claims for or relating to any liability of the Company in respect of taxes.

 

            (s) No Employees.  The Company does not have any ongoing operations and does not employ any employees and does not maintain any employee benefit or stock option plans.  The Company is not a party to any contract or agreement that will survive the Closing issuance of the Shares contemplated hereby.

 

            (t) Not an Integrated Offering.  Neither the Company, nor any person acting on its behalf, has knowingly, either directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security under circumstances that would cause the offer of the Shares pursuant to this Agreement to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable stockholder approval provisions, which would impair the exemptions relied upon in for the offer and sale of the Shares to the Subscribers or the Company’s ability to timely comply with its obligations hereunder. The Company will not knowingly conduct any offering other than the transactions contemplated hereby that will be integrated with the offer or issuance of the Shares, which would impair the exemptions relied upon for the offer and sale of the Shares to the Subscribers or the Company's ability to timely comply with its obligations hereunder.

 

            (u) No General Solicitation. Neither the Company, nor to its knowledge, any person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer or sale of the Shares.

 

            (v) Listing. The Common Stock is quoted on the Bulletin Board under the symbol UHFI.OB. The Company has not received any oral or written notice that the Common Stock is not eligible nor will become ineligible for quotation on the Bulletin Board nor that the Common Stock does not meet all requirements for the continuation of such quotation. The Company, to the best of its knowledge, satisfies all the requirements for the continued quotation of the Common Stock on the Bulletin Board.

            (w) Consultants, Brokers or Other Agents.  Except for the individual or entity identified on Schedule B (the “Consultant”) which has acted on behalf of the Company, no consultant, broker or finder has acted for the Company in connection with this Agreement or the transaction contemplated hereunder and is entitled to any brokerage or finder’s fee with respect to this Agreement as a result of the actions of the Company or its affiliates.  The fees due Consultant is set forth on Schedule B and will be paid out of the proceeds hereof.

 

            (x) Disclosure. The information contained in the SEC Reports taken together, including other information and documentation supplied by the Company, describes in all material respects the business and financial condition of the Company, and such material, taken together, does not, to the Company’s knowledge, contain any misstatement of a material fact or omit to state a material fact necessary to make the information not misleading.  The Subscribers should therefore be entitled to rely on such material notwithstanding any investigation Subscribers may have made.

 

  

  

  

 

3.           Representations and Warranties of Subscribers. Each Subscriber hereby, severally but not jointly, represents and warrants to and agrees with the Company that:

            (a) Due Execution and Delivery; Binding Nature. This Agreement has been duly executed and delivered by the Subscriber and constitutes a valid and binding obligation of the Subscriber enforceable against the Subscriber in accordance with the terms hereof, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights generally and to general principles of equity regardless of whether enforcement is sought in a court of law or equity.

            (b) No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions contemplated hereby do not and will not conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture or instrument or obligation to which Subscriber is a party or by which Subscriber’s properties or assets are bound, or result in a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to Subscriber or Subscriber’s properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on Subscriber). Subscriber is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for Subscriber to execute, deliver or perform any of Subscriber’s obligations under this Agreement or to purchase the Shares, provided that for purposes of the representation made in this sentence, Subscriber is assuming and relying upon the accuracy of the relevant representations and agreements of the Company herein.

            (c) Information on Company. Subscriber has been furnished with or has had access at the EDGAR Website of the Commission to the SEC Reports.  In addition, the Subscriber has received in writing from the Company other information concerning its operations, financial condition and other matters (such information is collectively, the "Other Written Information"). Subscriber has carefully read, and understands the information in the SEC Reports.  Subscriber acknowledges that he or it has also had the opportunity to talk to the Company’s auditors and ask them questions concerning any outstanding tax liabilities or tax or accounting issues.

            (d) Information Concerning Subscriber. Subscriber is an "accredited investor", as such term is defined in Rule 501(a) of Regulation D promulgated by the SEC under the Securities Act and as amended by the Dodd-Frank Financial Reform Act of 2010, is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of United States publicly-owned companies in private placements in the past and, with Subscriber’s representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Subscriber to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. The Subscriber is duly and legally qualified to purchase and own the Shares.  The Subscriber is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.

            (e) Purchase of Shares. The Subscriber is purchasing the Shares as principal for Subscriber’s own account for investment only and not with a view toward, or for resale in connection with, the public sale or any distribution thereof.

 

  

  

  

 

            (f) Compliance with Securities Act. The Subscriber understands and agrees that the Shares have not been registered under the Securities Act or any applicable state securities laws, by reason of their issuance in a transaction that does not require registration under the Securities Act (based in part on the accuracy of the representations and warranties of Subscriber contained herein), and that such Shares must be held indefinitely unless a subsequent disposition is registered under the Securities Act or any applicable state securities laws or is exempt from such registration.

            (g) Legend. The Subscriber understands and acknowledges that the certificates evidencing the Shares shall bear the following or similar legend:

"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE BE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED."

            (h) Communication of Offer. The offer to sell the Shares was directly communicated to the Subscriber by the Company and no other person has solicited an investment in the Shares on behalf of the Company. At no time was the Subscriber presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such communicated offer.

            (i)  Brokers.  No broker or finder has acted for the Subscribers in connection with this Agreement or the transaction contemplated hereunder and is entitled to any brokerage or finder’s fee with respect to this Agreement as a result of the actions of the Subscribers.

 

            (j) Disqualifications.  Each Subscriber represents on behalf of himself that:

 

(a)           During the past ten years there has been no petition under the federal bankruptcy laws or any state insolvency law filed by or against him, it or its principals, nor has a receiver, fiscal agent or similar officer been appointed by a court for the business or property of him, it or its principals or any  partnership in which he was a general partner at, or within two years before, the time of such filing or any corporation or business association of which he was an executive officer at, or within two years before, the time of such filing;

 

 (b)           He has not been convicted of fraud in a civil or criminal proceeding;

 

 (c)           During the past five years he has not been convicted in a criminal proceeding or named the subject of a pending criminal proceeding, excluding traffic violations and other minor offenses;

 

 (d)           He has not been the subject of any administrative or court order, judgment, decree or consent agreement, not subsequently reversed, suspended or vacated, permanently or temporarily enjoining or limiting him from the following activities:

(i) acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment advisor, underwriter, broker or dealer in securities, or as an affiliated person, Director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;

 

  

  

  

 

(ii) engaging in any type of business practice; or

(iii) engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodities laws.

 (e)           He has not been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting for more than 60 days his right to engage in any activity described in subparagraph (iv)(a) above or to be associated with persons engaged in any such activity;

 (f)           He has not been found by a court in a civil action or by the Securities and Exchange Commission (the “SEC”) to have violated any federal or state securities law, which judgment in such civil action or finding by the SEC has not been subsequently reversed, suspended or vacated; and

 (g)           He has not been found by a court in a civil action or by the Commodities Futures Trading Commission to have violated any federal commodities law, which judgment in such civil action or finding by the Commodities Futures Trading Commission has not been subsequently reversed, suspended or vacated.

In respect of those Subscribers and principals of Subscribers that are residents of countries other than the United States, the references above to courts, federal or state agencies shall be deemed to refer to the comparable tribunal or entity in the country in which such individuals reside.

(k)  Authorization.  Mr. Lawrence Burstein, who is executing this Agreement on behalf of himself and the other Subscribers, and who is making the foregoing representations as to each of the individual Subscribers, including himself, hereby represents and warrants that he has been expressly authorized by each of the Subscribers to make the foregoing representations (representations that he understands and is informed are true and accurate as to each, including himself) and otherwise sign this Agreement and any other agreement or document to be executed by the Subscribers in connection with the purchase of the Shares, on each of the individual Subscriber’s behalf, thereby binding them and each of them accordingly.

4.           Regulation D Offering. The offer and issuance of the Shares to the Subscriber is being made pursuant to the exemption from the registration provisions of the Securities Act afforded by Section 4(2) or Section 4(6) of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder.

5.           Broker Commissions. The Company on the one hand, and each Subscriber on the other hand, agrees to indemnify the other against and hold the other harmless from any and all liabilities to any persons claiming brokerage commissions or similar fees as a result of the actions of the Company or Subscriber, as the case may be, on account of services purported to have been rendered on behalf of the indemnifying party in connection with this Agreement or the transactions contemplated hereby and arising out of such party's actions.

 

  

  

  

 

6.           Covenants of the Company and Subscriber Regarding Indemnification.

            (a) The Company agrees to indemnify, hold harmless, reimburse and defend each Subscriber, the Subscriber’s officers, directors, agents, affiliates, control persons, and principal shareholders, against any claim, cost, expense, liability, obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the Subscriber or any such person which results, arises out of or is based solely upon (i) any material misrepresentation by Company or material breach of any warranty by Company in this Agreement or in any Exhibits or Schedules attached hereto, or other agreement delivered pursuant hereto; or (ii) after any applicable notice and/or cure periods, any material breach or default in performance by the Company of any covenant or undertaking to be performed by the Company hereunder, or any other agreement entered into by the Company and Subscriber relating hereto.

Notwithstanding the foregoing, the Company’s indemnity pursuant to this Section shall be limited to an aggregate of $133,500, plus the reasonable costs of collection, to which Subscribers may become subject, insofar as such Losses arise out of any breach of the representations, warranties or covenants contained in this Agreement.

            (b) Each Subscriber agrees to indemnify, hold harmless, reimburse and defend the Company and each of the Company's officers, directors, agents, affiliates, control persons against any claim, cost, expense, liability, obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the Company or any such person which results, arises out of or is based solely upon (i) any material misrepresentation by Subscriber in this Agreement or in any Exhibits or Schedules attached hereto, or other agreement delivered pursuant hereto; or (ii)after any applicable notice and/or cure periods, any material breach or default in performance by Subscriber of any covenant or undertaking to be performed by Subscriber hereunder, or any other agreement entered into by the Company and Subscriber, relating hereto.

            (c)  Any person entitled to indemnification under Section 6(a) or (b) of this Agreement (an “indemnified party”) shall notify promptly the person obligated to provide such indemnification (the “indemnifying party”) in writing of the commencement of any action or proceeding brought by a third person against the indemnified party with respect to a Claim (a “Third Party Claim”) for which the indemnified party may be entitled to indemnification from the indemnifying party under this Section 6, but the omission of such notice shall not relieve the indemnifying party from any liability which it may have to any indemnified party under Section 6 of this Agreement, except to the extent that such failure shall materially adversely affect any indemnifying party or its rights hereunder.  The indemnifying party shall be entitled to participate in, and, to the extent that it chooses, to assume the defense of any Third Party Claim with counsel reasonably satisfactory to the indemnified party; and, after notice from the indemnifying party to the indemnified party that it so chooses, the indemnifying party shall not be liable for any legal or other expenses or disbursements subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the Third Party Claim within twenty (20) days after receiving notice from the indemnified party that the indemnified party of such Third Party Claim; (ii) if the indemnified party who is a defendant in such Third Party Claim which is also brought against the indemnifying party reasonably shall have concluded that there are legal defenses available to the indemnified party which are not available to the indemnifying party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction, except to the extent any indemnified party or parties reasonably shall have concluded that there are legal defenses available to such party or parties which are not available to the other indemnified parties or to the extent representation of all indemnified parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct) and the indemnifying party shall be liable for any reasonable expenses therefor; provided, that no indemnifying party shall be subject to any liability for any settlement of a Third Party Claim made without its consent (which may not be unreasonably withheld, delayed or conditioned).  If the indemnifying party assumes the defense of any Third Party Claim hereunder, such indemnifying party shall not enter into any settlement without the consent of the indemnified party if such settlement attributes liability to the indemnified party.

 

  

  

  

 

7.   Conditions to Subscribers Obligation to Close.

The obligation of the Subscribers to consummate the transactions contemplated hereby are subject to:

            (i) the taking by the Company of such actions as are necessary to elect six (6) additional members to its Board of Directors, to authorize the issuance of the Shares to be issued hereunder and the concurrence in such issuance by the Company’s principal shareholder;

 

            (ii)  the completion of the sale by Dachris Ltd. to the Subscribers of the sale of 6,331,922 shares of  Common Stock, representing approximately 66.76% of the outstanding shares of Common Stock, pursuant to the Stock Purchase Agreement; and

 

            (iii) the conditions set forth in the escrow agreement annexed hereto as Exhibit A have been satisfied.

 

8.   Miscellaneous.

(a)           Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, or (ii) delivered by reputable air courier service with charges prepaid, or (iii) transmitted by telegram, in each case addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by telegram, or (b) if sent by reputable courier, the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received), or upon actual receipt, whichever shall first occur.

 

If to the Company:

 

UHF Incorporated

60 Point Perry Road

North Versailles, Pennsylvania 15137

Attention: Ronald C. Schmeiser, President and Chief Executive Officer

e-mail address: bdornish@dornish.net

 

  

  

  

 

with a copy (which shall not constitute notice) to:

J. Michael Coombs, Esq.

MABEY & COOMBS, L.C.

Highland Park Plaza

3098 South Highland Drive, Suite 323

Salt Lake City, Utah 84106-6001

Phone No. 801-467-2779

Fax No. 801-467-3256

Email:  jmcoombs@sisna.com

 

If to the Subscribers:

 

c/o Eaton & Van Winkle LLP

3 Park Avenue, 16th floor

New York, NY 10016

Attention: Vincent J. McGill, Esq.

Phone No.:212-561-3604

Fax No.:212-779-9928

e-mail address: vmcgill@evw.com

Any party may send any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient.  Any party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other Parties notice in the manner herein set forth.

           (b) Entire Agreement; Assignment. This Agreement and other documents delivered in connection herewith represent the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by approval or written consent of Subscriber. Neither the Company nor the Subscriber has relied on any representations not contained or referred to in this Agreement and the documents delivered herewith. No right or obligation of the Company shall be assigned without prior notice to and the written consent of the Subscriber.

           (c) Counterparts/Execution. This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. This Agreement may be executed by facsimile signature and delivered by facsimile transmission.

           (d) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to conflicts of laws principles that would result in the application of the substantive laws of another jurisdiction. Each of the parties hereto agrees that any action arising out of or related to this Agreement shall be brought in the state or federal courts located in Harrisburg, Pennsylvania, and each of the parties hereto submits to the jurisdiction of such courts and waives any claim arising out of or related to the convenience of such forum.

           (f) Survival. The representations and warranties, covenants and other agreements of the Company and the Subscriber set forth in this Agreement shall survive the purchase of the Shares by the Subscriber hereunder for a period of one year from the date hereof.

[signature page is on following page]

 

  

  

  

 

 

IN WITNESS WHEREOF, the undersigned have duly authorized the execution of this Agreement as of the date first above written.

	 	
UHF Incorporated

	 
	 	 	 	 
	 	
By:     

	/s/ Ronald C. Schmeiser	 
	 	 	Ronald C. Schmeiser	 
	 	 	President and Chief Executive Officer	 
	 	 	 	 

	 	
Subscribers:

	 
	 	 	 	 
	 	 	/s/ Lawrence Burstein	 
	 	 	Lawrence Burstein	 
	 	 	 	 
	 	 	Omar Cunha#	 
	 	 	 	 
	 	 	
Peter van Voorst Vader#

	 
	 	 	 	 
	 	 	Sidney Levy#	 
	 	 	 	 
	 	 	Selmo Nissenbaum #	 
	 	 	 	 
	 	 	 	 
	 	# By: 	/s/ Lawrence Burstein 	 
	 	 	Lawrence Burstein, Authorized Agent	 

          

  

  

  

 

Schedule A

 

SUBSCRIBERS

 

	
Name

	 	
Number of Shares

	 	 	
Purchase Price

	 
	  	 	 	 	 	 	 
	
Lawrence Burstein

	 	 	8,103,850	 	 	$	26,700	 
	  	 	 	 	 	 	 	 	 
	
Omar Cunha

	 	 	8,103,849	 	 	$	26,700	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Frontera Holdings Limited Partnership

	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 
	
Peter van Voorst Vader                                           

	 	 	8,103,849	 	 	$	26,700	 
	  	 	 	 	 	 	 	 	 
	
Sidney Levy

	 	 	8,103,849	 	 	$	26,700	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Wit Services Global Inc.

	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 
	
Selmo Nissenbaum

	 	 	8,103,849	 	 	$	26,700	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Nissen Holdings & Co Ltd.

	 	 	 	 	 	 	 	 

 

  

  

  

 

Schedule B

 

CONSULTANT

 

Shellie Shoppe   $65,000

 

  

  

  

 

Exhibit A

ESCROW AGREEMENT

AGREEMENT dated as of the 1st day of August 2011, by and between UHF Incorporated, a Michigan corporation having an office at 60 Point Perry Road, North Versailles, Pennsylvania 15137 (hereinafter referred to as the "Company"), each of the Subscribers whose names are set forth on Schedule A hereto (the “Subscribers”) having an address c/o Eaton & Van Winkle LLP, 3 Park Avenue, New York, New York 10016 (the “Company”), Eaton & Van Winkle LLP (“EVW”), having offices at 3 Park Avenue, New York, New York 10016 and Mark S. Galper, Esq., having an office at 409 Schoonmaker Avenue, P.O. Box A, Monessen, PA 15062, (the “Escrow Agent”).

Preliminary Statement

The Subscribers have entered into a Subscription Agreement with the Company dated on or about the date hereof  (the “Subscription Agreement”) for the purchase of 40,519,246  shares (the “Shares”) of the Company’s common stock, $0.001 par value (the “Common Stock”) for a total purchase price of $133,500.00 (the “Purchase Price”).

The Company has authorized the issuance of the Shares and will instruct Columbia Stock Transfer Co., 601 E. Seltice Way, Suite 202, Post Falls, ID 83854, Phone: 208-664-3544 Fax: 208-777-8998, Attn:  Michelle King, transfer agent for its shares of Common Stock (the “Transfer Agent”), to issue stock certificates representing the Shares registered in the names of the Subscribers in the respective number of Shares set forth opposite the name of each Subscriber on Schedule A to the Subscription Agreement (the “Stock Certificates”).

The Subscribers have deposited the Purchase Price, together with an executed copy of the Subscription Agreement, in escrow with the Escrow Agent (together, the “Escrow Property”).

The Escrow Agent will hold the Escrow Property in escrow in accordance with the terms and subject to the conditions set forth in this agreement.

The Company and the Subscribers have requested that EVW and the Escrow Agent perform the tasks set forth herein and each of them has agreed to do so.

 

NOW, THEREFORE, IT IS AGREED as follows:

1.           Delivery of Escrow Property. The Subscribers shall deliver (i) the Purchase Price to an account designated by the Escrow Agent and (ii) an executed copy of the Subscription Agreement to the Escrow Agent.  Upon receipt of the Escrow Property, the Escrow Agent shall so advise EVW and the Company.

 

 

2.           Issuance of Stock Certificates.  The Company shall deliver to the Transfer Agent appropriate instructions and corporate resolution(s) as the Transfer Agent requires authorizing the issuance of the Stock Certificates and shall instruct the Transfer Agent to send the Stock Certificates by Federal Express to EVW and to advise the Escrow Agent and EVW of the issuance and delivery of the Stock Certificates (the “Transfer Agent Notification”).

 

  

  

  

 

3.            Release of Stock Certificates and Purchase Price.  Upon the consummation of the sale by Dachris Ltd. to the Subscribers of 6,331,922 shares of the Company’s Common Stock (the “Dachris Shares”) pursuant to a Stock Purchase Agreement dated on or about the date hereof, for which the Escrow Agent is also acting as escrow agent and receipt of the Transfer Agent Notification, the Escrow Agent shall deliver (i) to EVW, the Stock Certificates against receipt of the Purchase Price, and (ii) to the Company, the Purchase Price in accordance with instructions from the Company, together with the Subscription Agreement executed by the Subscribers.  If the Escrow Agent has not received the Transfer Agent Notification and the sale of the Dachris Shares to the Subscribers has not been consummated prior to August 12, 2011, the Escrow Agent shall deliver (x) to the Company, the Stock Certificates, and (y) to EVW, the Purchase Price in accordance with instructions from EVW, together with the executed copy of the Subscription Agreement.

4.           Acceptance by EVW and Escrow Agent.  Each of EVW and the Escrow Agent hereby accepts and agrees to perform its obligations hereunder, provided that:

(a)           EVW and the Escrow Agent may act in reliance upon any signature believed by it to be genuine, and may assume that any person who has been designated by the Company or any of the Subscribers to give any written instructions, notice or receipt, or make any statements in connection with the provisions hereof has been duly authorized to do so.  Neither EVW nor the Escrow Agent shall have any duty to make inquiry as to the genuineness, accuracy or validity of any statements or instructions or any signatures on statements or instructions.  The names and true signatures of individuals and entities authorized to act singly on behalf of the Company or the Subscribers are stated in Schedule B attached hereto. The Company and the Subscribers may each remove or add one or more of its authorized signers stated on Schedule B by notifying EVW and the Escrow Agent in accordance with this Agreement of such change, which notice shall include the true signature for any new authorized signatories.

(b)           Each of EVW and the Escrow Agent may act relative hereto in reliance upon advice of counsel in reference to any matter connected herewith and Eaton & Van Winkle LLP or Bergstein & Galper, P.C., as the case may be, may serve as such counsel.  Neither EVW nor the Escrow Agent shall be liable for any mistake of fact or error of judgment or law, or for any acts or omissions of any kind, unless caused by its willful misconduct or gross negligence.

(c)           The Company and the Subscribers, jointly and severally, agree to indemnify and hold EVW and the Escrow Agent harmless from and against any and all claims, losses, costs, liabilities, damages, suits, demands, judgments or expenses (including but not limited to attorney's fees) claimed against or incurred by the Escrow Agent or EVW arising out of or related, directly or indirectly, to this Escrow Agreement, unless such claim is due to the willful misconduct or gross negligence of the Escrow Agent or EVW, as the case may be.

(d)           In the event that the Escrow Agent or EVW shall be uncertain as to its duties or rights hereunder, it shall be entitled to (i) refrain from taking any action other than to keep safely the Escrow Property until it shall be directed otherwise by a court of competent jurisdiction, or (ii) deliver the Escrow Property to a court of competent jurisdiction.

(e)           The Escrow Agent and EVW shall have no duty, responsibility or obligation to interpret or enforce the terms of any agreement other than its obligations hereunder, and neither of them shall be required to make a request that any documents or monies be delivered to it, it being agreed that the sole duties and responsibilities of the Escrow Agent and EVW shall be to the extent not prohibited by applicable law (i) to accept checks or other instruments for the payment of money and wire transfers delivered to it and deposit said checks and wire transfers into the non-interest-bearing Escrow Account, and (ii) to disburse or refrain from disbursing the Escrow Property as stated above, provided that the funds received by the Escrow Agent have been collected and are available for withdrawal.

 

  

  

  

 

5.           Resignation of the Escrow Agent.  The Escrow Agent may resign at any time by giving 30 days' notice of such resignation to Seller and EVW on behalf of the Subscribers.  Upon providing such notice, the Escrow Agent shall have no further obligation hereunder except to hold as depositary the Escrow Property that it has received as of the date on which it provided the notice of resignation.  In such event, the Escrow Agent shall not take any action until the Company and Subscribers have designated a banking corporation, trust company, attorney or other person as successor.  Upon receipt of such written instructions signed by the Company and Subscribers, the Escrow Agent shall promptly deliver the Escrow Property to such successor and shall thereafter have no further obligations hereunder.  If such instructions are not received within 30 days following the effective date of such resignation, then the Escrow Agent may deposit the Escrow Property and any other amounts held by it pursuant to this Agreement with a clerk of a court of competent jurisdiction pending the appointment of a successor.  In either case provided for in this paragraph, the Escrow Agent shall be relieved of all further obligations and released from all liability thereafter arising with respect to the Escrow Property.

6.           Termination. The Company and the Subscribers may terminate the appointment of the Escrow Agent hereunder upon written notice specifying the date upon which such termination shall take effect, which date shall be at least 10 days from the date of such notice.  In the event of such termination, the Company and the Subscribers shall, within 30 days of such notice, appoint a successor escrow agent and the Escrow Agent shall, upon receipt of written instructions signed by the Company and the Subscribers, turn over to such successor escrow agent all of the Escrow Property; provided, however, that if the Company and the Subscribers fail to appoint a successor escrow agent within such 10-day period, such termination notice shall be null and void and the Escrow Agent shall continue to be bound by all of the provisions hereof.  Upon receipt of the Escrow Property, the successor escrow agent shall become the Escrow Agent hereunder and shall be bound by all of the provisions hereof and the Escrow Agent shall be relieved of all further obligations and released from all liability thereafter arising with respect to the Escrow Property.

7.           Investment.  All funds received by the Escrow Agent shall be invested only in non-interest bearing bank accounts at a bank reasonably satisfactory to the Escrow Agent and EVW which shall include the institution regularly used by the Escrow Agent to hold client funds.

8.           Compensation.  Escrow Agent shall be entitled, for the duties to be performed by it hereunder, to charge the Company a fee based upon the time expended by Escrow Agent, for which Subscribers shall have no liability.

9.           Notices.  All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if sent by hand-delivery, by e-mail with receipt acknowledged by the recipient, or by nationally recognized overnight courier service, to the addresses set forth below.

If to the Company:

UHF Incorporated

60 Point Perry Road

North Versailles, Pennsylvania 15137

Attention: Ronald C. Schmeiser, President and Chief Executive Officer

Phone No. 412-824-2120

e-mail:  bdornish@dornish.net

 

  

  

  

 

and

 

J. Michael Coombs, Esq.

MABEY & COOMBS, L.C.

Highland Park Plaza

3098 South Highland Drive, Suite 323

Salt Lake City, Utah 84106-6001

Phone No. 801-467-2779

Fax No. 801-467-3256

Email:  jmcoombs@sisna.com

 

If to any of the Subscribers:

 

c/o Eaton & Van Winkle LLP

3 Park Avenue

New York, New York 10016

Attention:  Vincent J. McGill, Esq.

Phone No.:212-561-3604

Fax No.:212-779-9928

e-mail:vmcgill@evw.com

If to the Escrow Agent:

 

Mark S. Galper, Esq.

409 Schoonmaker Avenue

P.O. Box A

Monessen, PA  15062

Phone No.: 724-684-3444

Email:  mgalper@bgatlaw.com

 

If to EVW:

 

Eaton & Van Winkle LLP

3 Park Avenue

New York, New York 10016

Attention: Vincent J. McGill, Esq.

Phone No.: 212-561-3604

Fax No.:212-779-9928

e-mail:vmcgill@evw.com

10.           General

(a)           This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable to agreements made and to be entirely performed within such State, without regard to choice of law principles.  The parties agree that all actions arising out of or related to this Agreement shall be initiated in the State or Federal Courts located in Harrisburg, Pennsylvania, which shall have exclusive jurisdiction over such matters.  All parties hereby consent to the jurisdiction of such courts and waive any objection based upon forum non-conveniens.

 

  

  

  

 

(b)           This Agreement sets forth the entire agreement and understanding of the parties in respect to the matters contained herein and supersedes all prior agreements, arrangements and understandings relating thereto.

(c)           All of the terms and conditions of this Agreement shall be binding upon, and inure to the benefit of and be enforceable by, the parties hereto.

(d)           This Agreement may be amended, modified, superseded or canceled, and any of the terms or conditions hereof may be waived, only by a written instrument executed by each party hereto or, in the case of a waiver, by the party waiving compliance.  The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same.  No waiver of any party of any condition, or of the breach of any term contained in this Agreement, whether by conduct or otherwise, in any one or more instances shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or a waiver of any other condition or of the breach of any other term of this Agreement.  No party may assign any rights, duties or obligations hereunder unless all other parties have given their prior written consent.

(e)           If any provision included in this Agreement proves to be invalid or unenforceable, it shall not affect the validity of the remaining provisions.

(f)           This Agreement and any amendment or modification of this Agreement may be executed in several counterparts or by separate instruments and all of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first set forth above.

	UHF Incorporated	 	On behalf of all Subscribers:	 
	 	 	 	 	 	 
	By:	 	 	By:	 	 
	 	
Ronald C. Schmeiser

	 	 	Lawrence Burstein	 
	 	President and CEO	 	 	 	 

	Eaton & Van Winkle LLP 	 	Escrow Agent	 
	 	 	 	 	 	 
	By:	 	 	By:	 	 
	 	
Vincent J. McGill 

	 	 	Mark S. Galper, Esq.	 
	 	Partner	 	 	 	 

 

 

 

 

 

Schedule A

SUBSCRIBERS

 

	
Name

	 	
Number of Shares

	 	 	
Purchase Price

	 
	  	 	 	 	 	 	 
	
Lawrence Burstein

	 	 	8,103,850	 	 	$	26,700	 
	  	 	 	 	 	 	 	 	 
	
Omar Cunha

	 	 	8,103,849	 	 	$	26,700	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Frontera Holdings Limited Partnership

	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 
	
Peter van Voorst Vader                                           

	 	 	8,103,849	 	 	$	26,700	 
	  	 	 	 	 	 	 	 	 
	
Sidney Levy

	 	 	8,103,849	 	 	$	26,700	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Wit Services Global Inc.

	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 
	
Selmo Nissenbaum

	 	 	8,103,849	 	 	$	26,700	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Nissen Holdings & Co Ltd.

	 	 	 	 	 	 	 	 

 

  

  

  

 

Schedule B

LIST OF PERSON(S) AUTHORIZED TO ACT OR SIGN FOR SUBSCRIBERS

Lawrence BursteinUnassociated Document

 

Exhibit 10.2

STOCK PURCHASE AGREEMENT

This STOCK PURCHASE AGREEMENT, dated as of August 1, 2011 (this “Agreement”), is by and among Dachris Ltd., a Pennsylvania corporation (the “Seller”), and the individuals and entities listed on Schedule A annexed hereto (the “Purchasers”).  The Seller and the Purchasers are referred to herein individually as a “Party” and collectively, as the “Parties”.

Preliminary Statement

The Seller is the owner of 6,331,922 shares (the “Shares”) of the common stock, $.001 par value (“Common Stock”), of UHF Incorporated, a Michigan corporation (the “Company”), representing approximately 66.76% of the outstanding shares of Common Stock. Seller desires to sell to Purchasers, and Purchasers are willing to purchase from the Seller, the Shares, on the terms and subject to the conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants herein contained, the Seller and the Purchasers hereby agree as follows:

1.       Purchase and Sale.

 

The Seller agrees to sell, transfer, convey and deliver the Shares unto the Purchasers and the Purchasers agree to acquire and purchase the Shares from the Seller, on the terms and subject to the conditions set forth herein. The number of Shares to be purchased by each Purchaser is set forth on Schedule A annexed hereto.

2.           Purchase Price.

 

2.1           General.  The purchase price (the "Purchase Price") for the Shares, in the aggregate, is One Hundred Sixty-Six Thousand Five Hundred Dollars ($166,500.00), payable as specified in this Section 2, subject to the other terms and conditions of this Agreement.  The Purchase Price shall be payable by certified check or wire transfer of same day funds at the Closing (as defined in Section 3 below). The portion of the Purchase Price payable by each Purchaser is set forth on Schedule A annexed hereto.

 

2.2           Adjustment for Outstanding Liabilities. If the Company shall have any liability as of the Closing which the Company or Seller has not agreed to satisfy out of the Purchase Price or funds otherwise available to the Company, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including any liability for taxes (collectively, “Liability”), the Purchase Price shall be reduced on a dollar for dollar basis by the amount of such liability, and the amount payable by each Purchaser hereunder shall be reduced accordingly.

 

3.           The Closing.

 

3.1           General.  The closing of the transaction contemplated by this agreement (the “Closing”) shall take place at such time and place as shall be agreed upon by the Parties  (the “Closing Date”) not later than August 8, 2011, by exchange of documents among the Parties by fax or courier, as appropriate, following the satisfaction or waiver of all conditions to the obligations of the Parties to consummate the transactions contemplated hereby (other than conditions with respect to actions the respective Parties will take at the closing itself).

 

  

  

  

 

3.2           Delivery of Certificates in Escrow.  Concurrent with the execution of this Agreement, the Seller shall deliver certificates (the “Certificates”) evidencing all of the Shares held by the Seller and to be sold hereunder, together with duly executed, medallion-guaranteed stock powers with respect thereto, to Mark S. Galper, Esq, 409 Schoonmaker Avenue, P.O. Box A, Monessen, Pa  15062, phone no. 724-864-3444, mgalper@bgatlaw.com (the “Escrow Agent”).  The Certificates shall be held in escrow pursuant to a separate escrow agreement (the “Escrow Agreement”) in the form of Exhibit A being entered into on the date hereof by the Escrow Agent, the Seller, the Purchasers and Eaton & Van Winkle LLP, counsel to the Purchasers (“EVW”).  Pursuant to the Escrow Agreement, the Escrow Agent will deliver the Certificates to the Company’s transfer agent.

 

3.3           Deliveries at the Closing. At the Closing: (i) the Seller shall deliver to the Escrow Agent the certificates, instruments and documents referred to in Section 10(a) for delivery to the Purchasers, (ii) the Purchasers shall deliver to the Escrow Agent the certificates, instruments and documents referred to in Section 10(b) for delivery to the Seller, and shall cause the Escrow Agent to deliver to Seller the Purchase Pprice referred to in Section 2 above, and (iii) the Company’s stock transfer agent shall deposit certificates representing the Shares in Federal Express for delivery to EVW.

 

4.           Representations and Warranties of the Seller.

 

The Seller represents and warrants to the Purchasers that the statements contained in this Section 4 are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this Section 4).

 

4.1           The Seller is a corporation in good standing duly incorporated in the State of Pennsylvania.  The Seller has full corporate power and authority to execute, deliver and perform the Seller’s obligations under this Agreement and to sell, assign, transfer and deliver to the Purchasers the Shares as contemplated hereby.  This Agreement and the transactions contemplated hereby have been duly authorized by Seller.

 

4.2           This Agreement has been duly and validly executed by the Seller, and constitutes the valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or other laws affecting creditors' rights generally or by limitations, on the availability of equitable remedies. 

 

4.3           Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby or compliance with the terms and conditions hereof by the Seller, will violate or result in a breach of any term or provision of any agreement to which the Seller is bound or is a party, or be in conflict with or constitute a default under, or cause the acceleration of the maturity of any obligation of the seller under any existing agreement or violate any order, writ, injunction, decree, statute, rule or regulation applicable to the Seller or any  properties or assets of the Seller.

 

4.4             No permit, consent, approval or authorization of, or declaration, filing or registration with any governmental or regulatory authority or consent of any third party is required in connection with the execution and delivery by the Seller of this Areement and the consummation of the transactions contemplated hereby.

 

  

  

  

 

4.5           The Shares are owned beneficially and of record by the Seller and are validly issued and outstanding, fully paid for and non-assessable with no personal liability attaching to the ownership thereof.  The Seller owns the Shares free and clear of all liens, charges, security interests, encumbrances, claims of others, options, warrants, purchase rights, contracts, commitments, equities or other claims or demands of any kind (collectively, “Liens”), and upon delivery of the Shares to the Purchasers, the Purchasers will acquire good, valid and marketable title thereto free and clear of all Liens.  The Seller is not a party to any option, warrant, purchase right, or other contract or commitment that could require the seller to sell, transfer, or otherwise dispose of any capital stock of the Company (other than pursuant to this Agreement).  The Seller is not a party to any voting trust, proxy, or other agreement or understanding with respect to the voting of any capital stock of the Company.

 

4.6           There are no options, warrants or other rights to subscribe for or purchase shares of the Company’s capital stock outstanding, and as of the Closing Date, there will be none outstanding.

 

4.7           The Company has no liabilities, other than those disclosed in its most recent SEC Report (as defined in Section 4(l) below).  As of the completion of the Closing, the Company will have no liabilities.

 

4.8           The Company is a corporation in good standing duly incorporated in the State of Michigan.  The Company has full corporate power and authority and all licenses, permits, and authorizations necessary to carry on its business.  The Company has no subsidiaries and does not control any other entity, directly or indirectly, or have any direct or indirect equity participation in any other entity.

 

4.9           Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby or compliance with the terms and conditions hereof by the Company, will violate or result in a breach of any term or provision of any agreement to which the Company is bound or is a party, or the Company’s Articles of Incorporation or by-laws, each as amended as of the date hereof, or be in conflict with or constitute a default under, or cause the acceleration of the maturity of any obligation of the Company under any existing agreement or violate any order, writ, injunction, decree, statute, rule or regulation applicable to the Company or any of its properties or assets. 

 

4.10           The Company’s authorized capital stock consists of 50,000,000 shares of common stock, of which 9,480,754 shares are issued and outstanding.  The Company has not reserved any shares of its common stock for issuance upon the exercise of options, warrants or any other securities or rights that are exercisable or exchangeable for, or convertible into, common stock. All of the issued and outstanding shares of common stock are validly issued, fully paid and non-assessable and have been issued in compliance with applicable laws, including, without limitation, applicable federal and state securities laws.  There are no outstanding options, warrants or other rights of any kind to acquire any additional shares of capital stock of the Company or securities exercisable or exchangeable for, or convertible into, capital stock of the Company, nor is the Company committed to issue any such option, warrant, right or security.  There are no agreements relating to the voting, purchase or sale of capital stock (i) between or among the Company and any of its stockholders, (ii) between or among the Seller and any third party, or (iii) to the knowledge of the Seller between or among any of the Company’s stockholders.  The Company is not a party to any agreement granting any stockholder of the Company the right to cause the Company to register shares of the capital stock of the Company held by such stockholder under the Securities Act.  The stockholder list provided to the Purchasers by the Company is a current shareholder list generated by its transfer agent, and such list accurately reflects all of the issued and outstanding shares of the Company’s common stock.

 

  

  

  

 

4.11           To the Seller’s best knowledge, information and belief, there is no legal, administrative, investigatory, regulatory or similar action, suit, claim or proceeding, pending or, to the Seller’s knowledge, threatened against the Company.

 

4.12             During the period from January 1, 2006, through the date hereof, except for certain reports on Form 8-K which were due upon the resignation of certain directors, the Company has filed or furnished (i) all reports, schedules, forms, statements, prospectuses and other documents required to be filed with, or furnished to, the Securities and Exchange Commission (the “SEC”) by the Company (all such documents, as amended or supplemented, are referred to collectively as, the “SEC Reports”) and (ii) all certifications and statements required by (x) Rule 13a-14 or 15d-14 under the Exchange Act, or (y) 18 U.S.C. §1350 (Section 906 of the Sarbanes-Oxley Act of 2002) with respect to any applicable SEC Report (collectively, the “SOX Certifications”).  The Company, to the Seller’s best knowledge, has made available to the Purchasers all comment letters, if any, received by the Company from the staff of the SEC and all responses to such comment letters by or on behalf of the Company.  Through the date hereof, the Company has complied in all respects with its SEC filing obligations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Securities Act of 1933, as amended (the “Securities Act”).  Each of the audited financial statements and related schedules and notes thereto and unaudited interim financial statements of the Company (collectively, the “Company Financial Statements”) contained in the sec reports (or incorporated therein by reference) were prepared in accordance with United States generally accepted accounting principles applied on a consistent basis (“GAAP”) (except in the case of interim unaudited financial statements) except as noted therein, and fairly present in all respects the financial position of the Company as of the dates thereof and the results of its operations, cash flows and changes in stockholders’ equity for the periods then ended, subject (in the case of interim unaudited financial statements) to normal year-end audit adjustments (the effect of which will not, individually or in the aggregate, be materially adverse) and, such financial statements complied as to form as of their respective dates in all respects with applicable rules and regulations of the SEC.  The financial statements referred to herein reflect the consistent application of such accounting principles throughout the periods involved, except as disclosed in the notes to such financial statements. No financial statements of any person not already included in such financial statements are required by GAAP to be included in the consolidated financial statements of the Company.  As of their respective dates, each of the SEC Reports, to the Seller’s best knowledge, was prepared in accordance with and complied with the requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations thereunder, and the SEC Reports (including all financial statements included therein and all exhibits and schedules thereto and all documents incorporated by reference therein) did not, as of the date of effectiveness in the case of a registration statement, the date of mailing in the case of a proxy or information statement and the date of filing in the case of other the SEC Reports, contain any untrue statement of a fact or omit to state a fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. Neither the Company nor, to the Seller’s knowledge, any of its officers has received notice from the SECor any other governmental authority questioning or challenging the accuracy, completeness, content, form or manner of filing or furnishing of the SOX Certifications.

 

4.13             The Company has filed all federal, state and local tax returns and has paid all taxes, assessments and penalties due and payable.  All such tax returns were complete and correct in all respects as filed, and no claims have been assessed with respect to such returns.  There are no present, pending, or threatened audit, investigations, assessments or disputes as to taxes of any nature payable by the Company, or any tax liens whether existing or inchoate on any of the assets of the Company, except for current year taxes not presently due and payable.  No IRS or foreign, state, county or local tax audit is currently in progress.  The Company has not waived the expiration of the statute of limitations with respect to any taxes.  There are no outstanding requests by the Company for any extension of time within which to file any tax return or to pay taxes shown to be due on any tax return.

 

  

  

  

 

4.14           The Company does not have any ongoing operations, does not employ any employees and does not maintain any employee benefit or stock option plans. The Company is not a party to any contract or agreement that will survive the Closing.

 

4.15           Except as set forth in the SEC Reports, since March 31, 2011, there has not been any event or condition of any character which has adversely affected, or may be expected to adversely affect, the Company’s business or prospects, including, but not limited to any adverse change in the condition, assets, liabilities (existing or contingent) or business of the Company from that shown in the financial statements of the Company included in its quarterly report on Form 10-Q filed for the quarter ended March 31, 2011.

 

4.16           The Company has complied in all material respects with all applicable laws (including rules, regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and charges thereunder) of all governmental authorities, and no action, suit, proceeding, hearing, investigation, charge, complaint, claim, demand, or notice has been filed or commenced against the Company alleging any failure so to comply.  To the Seller’s best knowledge, neither the Company, nor any officer, director, employee, consultant or agent of the Company has made, directly or indirectly, any payment or promise to pay, or gift or promise to give or authorized such a promise or gift, of any money or anything of value, directly or indirectly, to any governmental official, customer or supplier for the purpose of influencing any official act or decision of such official, customer or supplier or inducing him, her or it to use hi, her or its influence to affect any act or decision of a governmental authority or customer, under circumstances which could subject the Company or any officers, directors, employees or consultants of the Company to administrative or criminal penalties or sanctions.

 

4.17           No representation or warranty by the Seller in this Agreement, nor in any certificate, schedule or exhibit delivered or to be delivered pursuant to this Agreement contains or will contain any untrue statement of material fact, or omits or will omit to state a material fact necessary to make the statements herein or therein, in light of the circumstances under which they were made, not misleading.

 

5.            Representations and Warranties of the Purchasers.

 

Each Purchaser severally, but not jointly, represents and warrants to the Seller as follows:

5.1           This Agreement has been duly executed and delivered by such Purchaser. This Agreement constitutes a valid and binding obligation of such Purchaser enforceable in accordance with its terms, except as (i) the enforceability hereof may be limited by bankruptcy, insolvency or similar laws affecting the enforceability of creditor's rights generally and (ii) the availability of equitable remedies may be limited by equitable principles of general applicability.

 

5.2           Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby, nor compliance by such Purchaser with any of the provisions hereof will: violate, or conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in the creation of any lien upon any of the properties or assets of such Purchaser under any of the terms, conditions or provisions of any material note, bond, indenture, mortgage, deed or trust, license, lease, agreement or other instrument or obligation to which such Purchaser is a party or by which such Purchaser or any of such purchaser’s properties or assets may be bound or affected, except for such violations, conflicts, breaches or defaults as do not have, in the aggregate, any material adverse effect; or violate any material order, writ, injunction, decree, statute, rule or regulation applicable to such purchaser or to any of their properties or assets, except for such violations which do not have, in the aggregate, any material adverse effect.

 

  

  

  

 

5.3           No permit, consent, approval or authorization of, or declaration, filing or registration with any governmental or regulatory authority or the consent of any third party is required in connection with the execution and delivery by such Purchaser of this Agreement and the consummation of the transactions contemplated hereby.

 

5.4           Such Purchaser is aware that the Seller is an affiliate of the Company and that the Shares are restricted in accordance with Rule 144 of the Securities Act.

 

5.5           Such Purchaser is an "accredited investor", as such term is defined in rule 501(a) of Regulation D promulgated by the SEC under the Securities Act and as amended by the Dodd-Frank Financial Reform Act of 2010, is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of United States publicly-owned companies in private placements in the past and, with Purchaser’s representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Purchaser to utilize the information made available by the Seller and the Company to evaluate the merits and risks of and to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. Such Purchaser is duly and legally qualified to purchase and own the Shares.  Such Purchaser is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.

 

5.6           Such Purchaser is purchasing the Shares as principal for such Purchaser’s own account for investment only and not with a view toward, or for resale in connection with, the public sale or any distribution thereof.

 

5.7           Such Purchaser understands and agrees that the Shares have not been registered under the Securities Act or any applicable state securities laws, by reason of their issuance in a transaction that does not require registration under the Securities Act (based in part on the accuracy of the representations and warranties of Purchaser contained herein), and that such Shares must be held indefinitely unless a subsequent disposition is registered under the Securities Act or any applicable state securities laws or is exempt from such registration.

 

5.8           None of the Purchasers has any pre-existing relationship with the Company or any of its current officers and directors.

 

5.9           Each Purchaser represents on behalf of himself that:

 

(a)           During the past ten years there has been no petition under the federal bankruptcy laws or any state insolvency law filed by or against him, it or its principals, nor has a receiver, fiscal agent or similar officer been appointed by a court for the business or property of him, it or its principals or any  partnership in which he was a general partner at, or within two years before, the time of such filing or any corporation or business association of which he was an executive officer at, or within two years before, the time of such filing;

 

  

  

  

 

 (ii)           He has not been convicted of fraud in a civil or criminal proceeding;

 

 (iii)           During the past five years he has not been convicted in a criminal proceeding or named the subject of a pending criminal proceeding, excluding traffic violations and other minor offenses;

 

 (iv)           He has not been the subject of any administrative or court order, judgment, decree or consent agreement, not subsequently reversed, suspended or vacated, permanently or temporarily enjoining or limiting him from the following activities:

(a) acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment advisor, underwriter, broker or dealer in securities, or as an affiliated person, Director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;

(b) engaging in any type of business practice; or

(c) engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodities laws.

 (v)           He has not been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting for more than 60 days his right to engage in any activity described in subparagraph (iv)(a) above or to be associated with persons engaged in any such activity;

 (vi)           He has not been found by a court in a civil action or by the SEC to have violated any federal or state securities law, which judgment in such civil action or finding by the SEC has not been subsequently reversed, suspended or vacated; and

 (v)           He has not been found by a court in a civil action or by the Commodities Futures Trading Commission to have violated any federal commodities law, which judgment in such civil action or finding by the Commodities Futures Trading Commission has not been subsequently reversed, suspended or vacated.

In respect of those Purchasers and principals of Purchasers that are residents of countries other than the United States, the references above to courts, federal or state agencies shall be deemed to refer to the comparable tribunal or entity in the country in which such individuals reside.

 

  

  

  

 

5.10           Mr. Lawrence Burstein, who is executing this Agreement on behalf of himself and the other Purchasers, and who is making the foregoing representations as to each of the individual Purchasers, including himself, hereby represents and warrants that he has been expressly authorized by each of the Purchasers to make the foregoing representations (representations that he understands and is informed are true and accurate as to each, including himself) and otherwise sign this Agreement and any other agreements or documents to be executed on behalf of the purchasers in connection with the purchase of the Shares on each of the individual Purchaser’s behalf, thereby binding them and each of them accordingly.

 

6.           Due Diligence.

 

The Company has provided the Purchasers and their agents and representatives with certain due diligence documents, including but not limited to, financial statements and certain minutes of its activities.  Further, the Purchasers acknowledge that information concerning the Company and its history and affairs are publicly available on the SEC’s database Edgar, including its financial information, and the Purchasers and their agents and representatives have had the opportunity to review and examine the same.

7.           Brokers and Finders.

 

No broker or finder has acted for Purchasers or Seller, or their affiliates or personnel in connection with this Agreement or the transactions contemplated hereunder, and no broker or finder retained by any Purchaser, Seller, or their affiliates or personnel is entitled to any brokerage or finder’s fee with respect to this Agreement.

 

8.           Pre-Closing Covenants.

 

The Parties agree as follows with respect to the period between the execution of this Agreement and the Closing.

 

8.1           General. Each of the Parties will use their best efforts to take all action and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement (including satisfaction, but not waiver, of the Closing conditions set forth in Section 10 below).

 

8.2           Notices and Consents. Prior to Closing, the Seller will cause the Company to give any notices to third parties, and will cause the Company to use its best efforts to obtain any third party consents that the Purchasers may reasonably request.  Each of the Parties will (and the Seller will cause the Company to) give any notices to, make any filings with, and use its best efforts to obtain any authorizations, consents, and approvals of governmental authorities necessary in order to consummate the transactions contemplated hereby.  The Seller is not aware of any third party consent nor other filing or notice to third parties that is necessary in respect of this Agreement.

 

8.3           Prohibited Activities.  Prior to Closing, the Seller will use its best efforts, including its rights as a shareholder of the Company, to prevent the Company from engaging in any practice, taking any action, or entering into any transaction except for ministerial matters necessary to maintain the Company in good standing and to arrange for the filing of all necessary reports required under the Exchange Act or otherwise necessary to maintain the Company’s eligibility on the OTC Bulletin Board and with the Depositary Trust Corporation. Without limiting the generality of the foregoing, the Seller will also use its best efforts and rights as a shareholder to prevent the Company from (i) declaring, setting aside, or paying any dividend or making any distribution with respect to its capital stock or redeeming, purchasing, or otherwise acquiring any of its capital stock except as otherwise expressly specified herein, (ii) issuing, selling, or otherwise disposing of any of its capital stock, or granting any options, warrants, preemptive or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any of its capital stock, (iii) making any capital expenditures, loans, or incurring any other obligations or liabilities, (iv) entering into any agreement or incurring any commitment or (v) otherwise engaging in any practice, taking any action, or entering into any transaction that is inconsistent with the transactions contemplated hereby.

 

  

  

  

 

8.4           Notice of Developments. The Seller, to the extent it becomes aware of the same, will give prompt written notice to the Purchasers of any material adverse development causing a breach of any of the representations and warranties in Section 4 above.  No disclosure by any Party pursuant to this Section, however, shall be deemed to amend or supplement the disclosures contained in the schedules hereto or to prevent or cure any misrepresentation, breach of warranty, or breach of covenant.

 

9.           Post-Closing Covenants.  The Parties agree as follows with respect to the period following the Closing:

 

                      (a)           General. In case at any time after the Closing any further action is necessary or desirable to carry out the purposes of this Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments and documents) as any other Party may reasonably request, all at the sole cost and expense of the requesting Party (unless the requesting Party is entitled to indemnification therefor under Section 11 below).  The Seller is informed that the Company has acknowledged and agreed, pursuant to a separate agreement to which the Company is a party, that from and after the Closing the Purchasers will be entitled to possession of all documents, books, records (including tax records), agreements, and financial data of any sort relating to the Company.

 

                      (b)        Litigation support. In the event and for so long as any Party actively is contesting or defending against any action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand in connection with (i) any transaction contemplated under this Agreement or (ii) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction on or prior to the Closing Date involving the Company, the other Party will cooperate with him or it and his or its counsel in the contest or defense, make available their personnel, and provide such testimony and access to their books and records as shall be necessary in connection with the contest or defense, all at the sole cost and expense of the contesting or defending party (unless the contesting or defending party is entitled to indemnification therefor under Section 11 below).

 

     (c)          Cooperation. The Seller shall cooperate with the Company and the Purchasers in the preparation of the Company’s unaudited financial statements for the period ended June 30, 2011.  The costs of such financials, review thereof, preparation, and filing of the Form 10-Qshall be at the sole expense of the Company.

 

10.          Conditions to Obligation to Close.

 

10.1           Conditions to Obligation of the Purchasers.

 

The obligation of the Purchasers to consummate the transactions to be performed by the Purchasers in connection with the Closing is subject to satisfaction of the following conditions:

 

  

  

  

 

(a)           the representations and warranties of Seller set forth in Section 4 above shall be true and correct in all material respects at and as of the Closing Date;

 

(b)           the Seller shall have performed and complied with all of its covenants hereunder in all material respects through the Closing;

 

(c)           the Seller shall have procured all of the third party consents required or asked of it in order to effect the Closing;

 

(d)           no action, suit, or proceeding shall be pending or threatened before any court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would  (A) prevent consummation of any of the transactions contemplated by this Agreement, (B) cause any of the transactions contemplated by this Agreement to be rescinded following consummation, (C) affect adversely the right of the Purchasers to own the Shares and to control the Company, or (D) affect adversely the right of the Company to own its assets and to operate its businesses (and no such injunction, judgment, order, decree, ruling, or charge shall be in effect);

 

(e)           the Seller shall have delivered to the Purchasers a certificate to the effect that (A) each of the conditions specified above in Section 10(a)(i)-(iv) is satisfied in all respects, and (B) as of the Closing, the Company has no Liabilities;

 

(f)           the completion of the sale by the Company to the Purchasers of 40,519,246 shares of Common Stock for a total purchase price of $133,500, pursuant to a subscription agreement dated on or about the date hereof, and there shall not be more than 9,480,754 shares of Common Stock issued and outstanding prior to the consummation of such sale;

 

(g)           the Purchasers shall have completed the business, accounting and legal due diligence review of the Company, and the results thereof shall be satisfactory to the Purchasers;

 

(h)           the Company shall have delivered its Articles of Incorporation and By-Laws, each as amended to the Closing Date, certified by the Secretary of the Company, resolutions adopted by the Board of Directors of the Seller authorizing this Agreement and the transactions contemplated hereby certified by the Secretary of the Seller, and the Seller shall have delivered to the Purchasers, to the extent available, the Company’s original minute book and corporate seal and all other original corporate documents and agreements;

 

(i)           the Company shall have maintained at and immediately after the Closing its status as a company whose Common Stock is quoted on the OTB Bulletin Board; and

 

(j)           all actions to be taken by the Seller in connection with consummation of the transactions contemplated hereby and all certificates, opinions, instruments, and other documents required to effect the transactions contemplated hereby will be satisfactory in form and substance to the Purchasers.

 

The Purchasers may waive any condition specified in this Section 10(a) at or prior to the Closing in writing executed by the Purchasers.

 

  

  

  

 

10.2           Conditions to Obligation of the Seller.

 

The obligations of the Seller to consummate the transactions to be performed by it in connection with the Closing are subject to satisfaction of the following conditions:

 

(a)           the representations and warranties of the Purchasers set forth in Section 5 above shall be true and correct in all material respects at and as of the Closing Date;

 

(b)           the Purchasers shall have performed and complied with all of their covenants hereunder in all material respects through the Closing;

 

(c)           no action, suit, or proceeding shall be pending or threatened before any court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (A) prevent consummation of any of the transactions contemplated by this Agreement or (B) cause any of the transactions contemplated by this Agreement to be rescinded following consummation (and no such injunction, judgment, order, decree, ruling, or charge shall be in effect);

 

(d)           the Purchasers shall have delivered to the Seller a certificate to the effect that each of the conditions specified above in Section 10(b)(i)-(iii) is satisfied in all respects; and

 

(e)           all actions to be taken by the Purchasers in connection with consummation of the transactions contemplated hereby and all certificates, instruments and other documents required to effect the transactions contemplated hereby will be satisfactory in form and substance to the Seller;

 

The Seller may waive any condition specified in this Section 10(b) at or prior to the Closing in writing executed by the Seller.

 

11.           Remedies for Breaches of this Agreement.

 

11.1           Survival of Representations and Warranties.  All of the representations and warranties of the parties shall survive the closing hereunder (even if a party knew or had reason to know of any misrepresentation or breach of warranty by another party at the time of Closing) and continue in full force and effect for a period of twelve (12) months thereafter.

 

11.2           Indemnification Provisions for Benefit of the Purchasers.  The Seller hereby covenants and agrees that the Seller shall indemnify the Purchasers, and each of their successors and assigns (individually, a "Purchaser Indemnified Party"), and hold them harmless from, against and in respect of any and all costs, losses, claims, liabilities, fines, penalties, damages and expenses (including interest which may be imposed in connection therewith, court costs and reasonable fees and disbursements of counsel and any losses (“Losses”) that may result from the granting of injunctive relief) incurred by any of them (i) based upon, arising out of or otherwise in respect of any inaccuracy in or the  breach of any representation, warranty, covenant or agreement of the Seller made in this Agreement or (ii) based upon any liability arising out of the operations of the Company prior to the Closing.

 

Notwithstanding the foregoing, Seller’s indemnity pursuant to this Section 11 shall be limited to an aggregate of $166,500, plus the reasonable costs of collection, to which Purchaser may become subject, insofar as such Losses arise out of any breach of the representations, warranties or covenants contained in this Agreement.

 

  

  

  

 

(c)           Indemnification by Purchasers. Purchasers hereby covenant and agree with the Seller that Purchaser shall indemnify the Seller and each of its successors and assigns (individually, a "Seller Indemnified Party"), and hold them harmless from, against and in respect of any and all costs, losses, claims, liabilities, fines, penalties, damages and expenses (including interest which may be imposed in connection therewith and court costs and reasonable fees and disbursements of counsel) incurred by any of them resulting, from any misrepresentation, breach of warranty or the non-fulfillment of any agreement, covenant or obligation by Purchaser made in this Agreement or (ii) based upon any Liability arising out of the operations of the Company from and after the Closing.

12.           Termination.

 

12.1           Termination of Agreement. The parties may terminate this Agreement as provided below:

 

(a)           the Purchasers and the Seller may terminate this Agreement by mutual written agreement at any time prior to the Closing;

 

(b)           the Purchasers may terminate this Agreement by giving written notice to the Seller at any time prior to the Closing if (A) if the findings of their due diligence investigation of the Company are not satisfactory to them in their sole and absolute discretion; or (B) in the event the Seller has breached any material representation, warranty, or covenant contained in this Agreement in any material respect and the Purchasers have notified the Seller of the breach, and the breach has continued without cure for a period of two (2) days after the notice of breach; or (C) if the Closing shall not have occurred on or before August 8, 2011 by reason of the failure of any condition precedent under Section 10(a) (unless the failure results primarily from the Purchasers breaching any representation, warranty, or covenant contained in this Agreement); and

 

(c)           the Seller may terminate this Agreement by giving written notice to the Purchasers at any time prior to the Closing (A) in the event the Purchasers have breached any material representation, warranty, or covenant contained in this Agreement in any material respect, the Seller has notified the Purchasers of the breach, and the breach has continued without cure for a period of two (2) days after the notice of breach; or (B) if the Closing shall not have occurred on or before August 8, 2011, by reason of the failure of any condition precedent under Section 10(b) (unless the failure results primarily from the Seller breaching any representation, warranty, or covenant contained in this Agreement).

 

12.2           Effect of  Termination. The Seller shall in no event be permitted to terminate this Agreement unless prior to or accompanying any notice of termination delivered hereunder the Seller (i) has delivered to the Purchasers any portion of the Purchase Price theretofore paid by the Purchasers and (ii) have notified the Escrow Agent in writing that any amounts held in escrow by it should be released to the Purchasers.  If the Purchasers terminate this Agreement pursuant to this Section 12, then the Seller shall immediately pay to the Purchasers any portion of the Purchase Price theretofore paid by the Purchasers and the Seller shall immediately notify the Escrow Agent in writing that any amounts held in escrow by it should be released to the Purchasers.  The Purchasers shall in no event be permitted to terminate this Agreement and keep any of the Shares held in escrow that will not have been paid for.  Except as aforesaid, if this Agreement terminates pursuant to this Section 12, all rights and obligations of the parties hereunder shall terminate without any liability of any party to any other party.

 

  

  

  

 

13.           Miscellaneous.

 

13.1           Facsimile Execution and Delivery. Facsimile execution and delivery of this Agreement is legal, valid and binding execution and delivery for all purposes.

 

13.2           Confidentiality; Press Releases and Public Announcements.  Except as and to the extent required by law, no party will disclose or use and will direct its representatives not to disclose or use any information with respect to the transaction that is the subject of this Agreement, without the consent of the other parties.  Neither the Seller nor the Company shall issue any press release or make any public announcement relating to the subject matter of this Agreement without the prior written approval of the Purchasers; provided, however, that the Company may make any public disclosure it believes in good faith is required by applicable law or any listing or trading agreement concerning its publicly-traded securities (in which case the Seller and the Company will use their best efforts to advise the other parties prior to making the disclosure).

 

13.3           No Third-Party Beneficiaries. This agreement shall not confer any rights or remedies upon any person other than the parties and their respective successors and permitted assigns.

 

13.4           Entire Agreement. This agreement (including the documents referred to herein) constitutes the entire agreement among the parties and supersedes any prior understandings, agreements, or representations by or among the parties, written or oral, to the extent they related in any way to the subject matter hereof.

 

13.5           Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the parties named herein and their respective successors and permitted assigns.  No party may assign either this Agreement or any of their rights, interests, or obligations hereunder without the prior written approval of the Purchasers and the Seller, as applicable; provided, however, that the Purchasers may (i) assign any or all of their rights and interests hereunder to one or more of their affiliates, and (ii) designate one or more of their affiliates to perform their obligations hereunder, but no such assignment shall operate to release the purchasers or a successor from any obligation hereunder unless and only to the extent that the Seller agrees in writing.

 

13.6           Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute the same instrument.

 

13.7           Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

 

13.8           Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, or (ii) delivered by reputable air courier service with charges prepaid, or (iii) transmitted by telegram, in each case addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by telegram, or (b) if sent by reputable courier, the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received), or upon actual receipt, whichever shall first occur.

 

  

  

  

 

If to the Seller (or the Company prior to the Closing):

 

Dachris Ltd.

60 Point Perry Road

North Versailles, Pennsylvania 15137

Attention: David L. Lichtenstein, President

e-mail address: bdornish@dornish.net

with a copy (which shall not constitute notice) to:

J. Michael Coombs, Esq.

MABEY & COOMBS, L.C.

Highland Park Plaza

3098 South Highland Drive, Suite 323

Salt Lake City, Utah 84106-6001

Phone No. 801-467-2779

Fax No. 801-467-3256

Email:  jmcoombs@sisna.com

 

If to the Purchasers:

 

c/o Eaton & Van Winkle LLP

3 Park Avenue, 16th floor

New York, NY 10016

Attention: Vincent J. McGill, Esq.

Phone No.:212-561-3604

Fax No.:212-779-9928

e-mail address: vmcgill@evw.com

Any Party may send any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient.  Any Party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other Parties notice in the manner herein set forth.

13.9           Governing Law; Forum. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. Each of the parties hereto agrees that any action arising out of or related to this Agreement shall be brought in the state or federal courts located in Harrisburg, Pennsylvania, and each of the parties hereto submits to the jurisdiction of such courts and waives any claim arising out of or related to the convenience of such forum.

 

  

  

  

 

13.10           Amendments and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by the Purchasers and the Seller or their respective representatives.  No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

 

13.11           Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

 

13.12           Expenses. Each of the parties will bear their own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.  The Seller agrees that the Company has not borne or will not bear any of the Seller’s costs and expenses (including any of his legal fees and expenses) in connection with this Agreement or any of the transactions contemplated hereby.

 

13.13           Construction. The parties have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

13.14           Incorporation of Exhibits and Schedules. The exhibits and schedules identified in this Agreement are incorporated herein by reference and made a part hereof.

 

13.15           Specific Performance. Each of the parties acknowledges and agrees that the other parties would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached.  Accordingly, each of the parties agrees that the other parties shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action instituted in any court of the united states or any state thereof having jurisdiction over the parties and the matter, in addition to any other remedy to which they may be entitled, at law or in equity.

 

 [signature page is on following page]

 

  

  

  

 

           IN WITNESS WHEREOF, the undersigned have duly authorized the execution of this Agreement as of the date first above written.

 

	 	

DACHRIS LTD.

	 
	 	 	 	 
	 	
By:     

	/s/ David L. Lichtenstein	 
	 	 	David L. Lichtenstein	 
	 	 	President	 
	 	 	 	 

	 	

THE PURCHASERS

	 
	 	 	 	 
	 	 	/s/ Lawrence Burstein	 
	 	 	Lawrence Burstein	 
	 	 	 	 
	 	 	Omar Cunha#	 
	 	 	 	 
	 	 	
Peter van Voorst Vader#

	 
	 	 	 	 
	 	 	Sidney Levy#	 
	 	 	 	 
	 	 	Selmo Nissenbaum #	 
	 	 	 	 
	 	 	 	 
	 	# By: 	/s/ Lawrence Burstein 	 
	 	 	Lawrence Burstein, Authorized Agent	 

 

  

  

  

 

                                                                                                         Schedule A

PURCHASERS

	
Name

	 	
Number of Shares

	 	 	
Purchase Price

	 
	  	 	 	 	 	 	 
	
Lawrence Burstein

	 	 	1,266,386	 	 	$	33,300	 
	  	 	 	 	 	 	 	 	 
	
Omar Cunha

	 	 	1,266,384	 	 	$	33,300	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Frontera Holdings Limited Partnership

	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 
	
Peter van Voorst Vader                                       

	 	 	1,266,384	 	 	$	33,300	 
	  	 	 	 	 	 	 	 	 
	
Sidney Levy

	 	 	1,266,384	 	 	$	33,300	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Wit Services Global Inc.

	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 
	
Selmo Nissenbaum

	 	 	1,266,384	 	 	$	33,300	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Nissen Holdings & Co Ltd.

	 	 	 	 	 	 	 	 

 

  

  

  

 

 Exhibit A

ESCROW AGREEMENT

AGREEMENT dated as of the 1st day of August, 2011, by and between Dachris Ltd., a Pennsylvania corporation having an office at 60 Point Perry Road, North Versailles, Pennsylvania 15137 (hereinafter referred to as the "Seller"), each of the Purchasers whose names are set forth on Schedule A hereto (the “Purchasers”) having an address c/o Eaton & Van Winkle LLP, 3 Park Avenue, New York, New York 10016 (the “Company”), Eaton & Van Winkle LLP (“EVW”), having offices at 3 Park Avenue, New York, New York 10016 and Mark S. Galper, Esq., having an office at 409 Schoonmaker Avenue, P.O. Box A, Monessen, PA 15062, (the “Escrow Agent”).

Preliminary Statement

The Seller will deposit in escrow with the Escrow Agent certain corporate documents, records and transaction documents (the “Seller’s Escrow Documents”) to be delivered to the Purchasers upon consummation of the sale of an aggregate of 6,331,922 shares (the “Shares”) of the common stock (the “Sale”) of UHF Incorporated (the “Company”) by Seller to Purchasers as contemplated by the Stock Purchase Agreement dated on or about the date hereof (the “Purchase Agreement”).

The Purchasers will deposit in escrow with the Escrow Agent an aggregate of $166,500, representing the purchase price for the Shares (the “Purchase Price”), to an account designated by the Escrow Agent, together with certain documents (the “Purchaser’s Escrow Documents,” and  together with the Purchase Price, the “Purchasers’ Escrow Property”), to be delivered to the Seller upon consummation of the Sale.

The Escrow Agent will hold the Seller’s Escrow Documents and the Purchasers Escrow Property (collectively, the “Escrow Property”) in escrow in accordance with the terms and subject to the conditions set forth in this agreement.

 

The Seller and the Purchasers have requested that EVW and the Escrow Agent perform the tasks set forth herein and each of them has agreed to do so.

NOW, THEREFORE, IT IS AGREED as follows:

1.           Delivery of Escrow Property.

(a)  The Seller shall deliver to the Escrow Agent the Seller’s Escrow Documents, including duly executed copies of the documents and instruments to be delivered to the Purchasers pursuant to the Purchase Agreement.  Upon receipt of the same, the Escrow Agent shall so advise EVW.

(b)   The Purchasers shall deliver to the Escrow Agent the Purchasers’ Escrow Property, including the Purchase Price and duly executed copies of the documents to be delivered to the Seller pursuant to the Purchase Agreement.  Upon receipt of the same, the Escrow Agent shall so advise Seller.

2.           Exchange of Stock Certificates. The Seller shall deliver stock certificates evidencing the Shares (the “Original Certificate”) to Columbia Stock Transfer Co., 601 E. Seltice Way, Suite 202, Post Falls, ID 83854, Phone: 208-664-3544 Fax: 208-777-8998, Attn:  Michelle King, transfer agent for the shares of the Company’s common stock (the “Transfer Agent”), together with duly executed stock powers with a medallion guaranty and instructions to issue stock certificates representing the Shares registered in the names of the Purchasers in the respective number of Shares set forth opposite the name of each Purchaser on Schedule A to the Purchase Agreement (the “New Stock Certificates”), and Seller shall instruct the Transfer Agent to send the New Certificates by Federal Express to EVW and to advise the Escrow Agent and EVW of the issuance and delivery of the New Stock Certificates (the “Transfer Agent Notification”).

 

  

  

  

 

3.            Release of Purchase Price and Other Escrow Property.  Upon the consummation of the sale by the Company to the Purchasers of 40,519,246 shares (the “Subscription Shares”) of the Company’s common stock  pursuant to a Subscription Agreement dated on or about the date hereof, for which the Escrow Agent is also acting as escrow agent, and receipt of the Transfer Agent Notification, the Escrow Agent shall deliver (i) to EVW, the Seller Escrow Documents, and (ii) to the Seller, the Purchase Price in accordance with instructions from the Seller, together with the Purchasers’ Escrow Documents.  If the Escrow Agent has not received the Transfer Agent Notification and the sale of the Subscription Shares to the Purchasers has not been consummated prior to August 8, 2011, the Escrow Agent shall deliver (x) to the Seller, the Seller Escrow Documents, and (y) to EVW, the Purchase Price in accordance with instructions from EVW, together with the Purchaser’s Escrow Documents.

4.      Acceptance by EVW and Escrow Agent.  Each of EVW and the Escrow Agent hereby accepts and agrees to perform its obligations hereunder, provided that:

(a)           EVW and the Escrow Agent may act in reliance upon any signature believed by it to be genuine, and may assume that any person who has been designated by the Company or any of the Purchasers to give any written instructions, notice or receipt, or make any statements in connection with the provisions hereof has been duly authorized to do so.  Neither EVW nor the Escrow Agent shall have any duty to make inquiry as to the genuineness, accuracy or validity of any statements or instructions or any signatures on statements or instructions.  The names and true signatures of individuals and entities authorized to act singly on behalf of the Company or the Purchasers are stated in Schedule B attached hereto. The Company and the Purchasers may each remove or add one or more of its authorized signers stated on Schedule B by notifying EVW and the Escrow Agent in accordance with this Agreement of such change, which notice shall include the true signature for any new authorized signatories.

(b)           Each of EVW and the Escrow Agent may act relative hereto in reliance upon advice of counsel in reference to any matter connected herewith and Eaton & Van Winkle LLP or Bergstein & Galper, P.C., as the case may be, may serve as such counsel.  Neither EVW nor the Escrow Agent shall be liable for any mistake of fact or error of judgment or law, or for any acts or omissions of any kind, unless caused by its willful misconduct or gross negligence.

(c)           The Seller and the Purchasers, jointly and severally, agree to indemnify and hold EVW and the Escrow Agent harmless from and against any and all claims, losses, costs, liabilities, damages, suits, demands, judgments or expenses (including but not limited to attorney's fees) claimed against or incurred by the Escrow Agent or EVW arising out of or related, directly or indirectly, to this Escrow Agreement, unless such claim is due to the willful misconduct or gross negligence of the Escrow Agent or EVW, as the case may be.

(d)           In the event that the Escrow Agent or EVW shall be uncertain as to its duties or rights hereunder, it shall be entitled to (i) refrain from taking any action other than to keep safely the Escrow Documents until it shall be directed otherwise by a court of competent jurisdiction, or (ii) deliver the Escrow Documents to a court of competent jurisdiction.

(e)           The Escrow Agent and EVW shall have no duty, responsibility or obligation to interpret or enforce the terms of any agreement other than its obligations hereunder, and neither of them shall be required to make a request that any documents or monies be delivered to it, it being agreed that the sole duties and responsibilities of the Escrow Agent and EVW shall be to the extent not prohibited by applicable law (i) to accept checks or other instruments for the payment of money and wire transfers delivered to it and deposit said checks and wire transfers into the non-interest-bearing Escrow Account, and (ii) to disburse or refrain from disbursing the Escrow Documents as stated above, provided that the funds received by the Escrow Agent have been collected and are available for withdrawal.

 

  

  

  

 

5.     Resignation of the Escrow Agent.  The Escrow Agent may resign at any time by giving 30 days' notice of such resignation to Seller and EVW on behalf of the Purchasers.  Upon providing such notice, the Escrow Agent shall have no further obligation hereunder except to hold as depositary the Escrow Documents that it has received as of the date on which it provided the notice of resignation.  In such event, the Escrow Agent shall not take any action until the Company and Purchasers have designated a banking corporation, trust company, attorney or other person as successor.  Upon receipt of such written instructions signed by the Company and Purchasers, the Escrow Agent shall promptly deliver the Escrow Documents to such successor and shall thereafter have no further obligations hereunder.  If such instructions are not received within 30 days following the effective date of such resignation, then the Escrow Agent may deposit the Escrow Documents and any other amounts held by it pursuant to this Agreement with a clerk of a court of competent jurisdiction pending the appointment of a successor.  In either case provided for in this paragraph, the Escrow Agent shall be relieved of all further obligations and released from all liability thereafter arising with respect to the Escrow Documents.

6.    Termination. The Seller and the Purchasers may terminate the appointment of the Escrow Agent hereunder upon written notice specifying the date upon which such termination shall take effect, which date shall be at least 10 days from the date of such notice.  In the event of such termination, the Seller and the Purchasers shall, within 30 days of such notice, appoint a successor escrow agent and the Escrow Agent shall, upon receipt of written instructions signed by the Seller and the Purchasers, turn over to such successor escrow agent all of the Escrow Documents; provided, however, that if Seller and the Purchasers fail to appoint a successor escrow agent within such 10-day period, such termination notice shall be null and void and the Escrow Agent shall continue to be bound by all of the provisions hereof.  Upon receipt of the Escrow Documents, the successor escrow agent shall become the Escrow Agent hereunder and shall be bound by all of the provisions hereof and the Escrow Agent shall be relieved of all further obligations and released from all liability thereafter arising with respect to the Escrow Documents.

7.      Investment.  All funds received by the Escrow Agent shall be invested only in non-interest bearing bank accounts at a bank reasonably satisfactory to the Escrow Agent and EVW, which shall include the institution regularly used by the Escrow Agent to hold client funds.

8.    Compensation.  Escrow Agent shall be entitled, for the duties to be performed by it hereunder, to charge the Seller a fee based upon the time expended by Escrow Agent, for which Purchasers shall have no liability.

9.      Notices.  All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if sent by hand-delivery, by e-mail with receipt acknowledged by the recipient, or by nationally recognized overnight courier service, to the addresses set forth below.

If to Seller:

Dachris Ltd.

60 Point Perry Road

North Versailles, Pennsylvania 15137

Attention: David L. Lichtenstein, President

e-mail address: bdornish@dornish.net

 

  

  

  

 

with a copy (which shall not constitute notice) to:

J. Michael Coombs, Esq.

MABEY & COOMBS, L.C.

Highland Park Plaza

3098 South Highland Drive, Suite 323

Salt Lake City, Utah 84106-6001

e-mail address:  jmcoombs@sisna.com

If to any of the Purchasers:

 

c/o Eaton & Van Winkle LLP

3 Park Avenue

New York, New York 10016

Attention: Vincent J. McGill, Esq.

Phone No.: 212-561-3604

Fax No.:212-779-9928

e-mail:vmcgill@evw.com

If to the Escrow Agent:

Mark S. Galper, Esq.

409 Schoonmaker Avenue

P.O. Box A

Monessen, PA  15062

Phone No.: 724-684-3444

Email:  mgalper@bgatlaw.com

 

If to EVW:

 

Eaton & Van Winkle LLP

3 Park Avenue

New York, New York 10016

Attention: Vincent J. McGill, Esq.

Phone No.: 212-561-3604

Fax No.:212-779-9928

e-mail:vmcgill@evw.com

10.           General

(a)           This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable to agreements made and to be entirely performed within such State, without regard to choice of law principles. The parties agree that all actions arising out of or related to this Agreement shall be initiated in the State or Federal Courts located in Harrisburg, Pennsylvania, which shall have exclusive jurisdiction over such matters.  All parties hereby consent to the jurisdiction of such courts and waive any objection based upon forum non-conveniens.

(b)           This Agreement sets forth the entire agreement and understanding of the parties in respect to the matters contained herein and supersedes all prior agreements, arrangements and understandings relating thereto.

 

  

  

  

 

(c)           All of the terms and conditions of this Agreement shall be binding upon, and inure to the benefit of and be enforceable by, the parties hereto.

(d)           This Agreement may be amended, modified, superseded or canceled, and any of the terms or conditions hereof may be waived, only by a written instrument executed by each party hereto or, in the case of a waiver, by the party waiving compliance.  The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same.  No waiver of any party of any condition, or of the breach of any term contained in this Agreement, whether by conduct or otherwise, in any one or more instances shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or a waiver of any other condition or of the breach of any other term of this Agreement.  No party may assign any rights, duties or obligations hereunder unless all other parties have given their prior written consent.

(e)           If any provision included in this Agreement proves to be invalid or unenforceable, it shall not affect the validity of the remaining provisions.

(f)           This Agreement and any amendment or modification of this Agreement may be executed  in several counterparts or by separate instruments and all of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first set forth above.

 

WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first set forth above.

	Dachris Ltd. 	 	On behalf of all Purchasers:	 
	 	 	 	 	 	 
	By:	 	 	By:	 	 
	 	
David L. Lichtenstein 

	 	 	Lawrence Burstein	 
	 	President	 	 	 	 

	Eaton & Van Winkle LLP 	 	Escrow Agent	 
	 	 	 	 	 	 
	By:	 	 	By:	 	 
	 	
Vincent J. McGill 

	 	 	Mark S. Galper, Esq.	 
	 	Partner	 	 	 	 

 

  

  

  

 

Schedule A

 

PURCHASERS

	
Name

	 	
Number of Shares

	 	 	
Purchase Price

	 
	  	 	 	 	 	 	 
	
Lawrence Burstein

	 	 	1,266,386	 	 	$	33,300	 
	  	 	 	 	 	 	 	 	 
	
Omar Cunha

	 	 	1,266,384	 	 	$	33,300	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Frontera Holdings Limited Partnership

	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 
	
Peter van Voorst Vader                                       

	 	 	1,266,384	 	 	$	33,300	 
	  	 	 	 	 	 	 	 	 
	
Sidney Levy

	 	 	1,266,384	 	 	$	33,300	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Wit Services Global Inc.

	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 
	
Selmo Nissenbaum

	 	 	1,266,384	 	 	$	33,300	 
	
To be registered in the name of

	 	 	 	 	 	 	 	 
	
Nissen Holdings & Co Ltd.

	 	 	 	 	 	 	 	 

 

  

  

  

 

Schedule B

LIST OF PERSON(S) AUTHORIZED TO ACT OR SIGN FOR PURCHASERS

 

Lawrence Burstein

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