Document:

exhibit109.htm - Generated by SEC Publisher for SEC Filing

  

 

 

REGULATION S 

STOCK PURCHASE AGREEMENT

 

 

This Regulation S Stock Purchase Agreement (the "Agreement"), is dated as of August 11, 2014 between San Lotus Holding Inc., a Nevada corporation having offices at 3301 Spring Mountain Rd. Unit 23, Las Vegas, NV 89102 (the "Company"), and the individual purchasers whose names are set forth in the Schedule A hereunder (each a "Purchaser" and, collectively, the "Purchasers"). 

 

ARTICLE I

PURCHASE, SALE AND TERMS OF SHARES

 

1.1 The Shares. The Company agrees to issue and sell to the Purchasers in an offshore transaction negotiated outside the U.S. and to be consummated and closed outside the U.S. and, in consideration of and in express reliance upon the representations, warranties, covenants, terms and conditions of this Agreement, the Purchasers agree to purchase from the Company an aggregate of $$111,553,086  US dollars or 397,835,544  shares (the "Shares"), of the Company's common stock, par value $0.10per share, (the "Common Stock") at a per share purchase price which shall be  $0.2804 per share (the "Purchase Price"). The specific number of Shares that each Purchaser will purchase is set forth in Schedule A attached hereto. Each Purchaser understands and agrees that the Company in its sole discretion reserves the right to accept or reject this subscription for the Shares, in whole or in part, prior to receipt by the Company of the Purchase Price, or any applicable portion thereof, as set forth in Article II hereafter.

 

1.2 Payment of Purchase Price; Closing.  This transaction will be closed at a location outside the U.S. mutually designated by the Company and the Purchasers, and each Purchaser will pay the applicable purchase price by wire transfer within a reasonable time agreed to by the Company and the Purchaser following execution of this Agreement. The Company will, within a reasonable period of time upon receipt of the funds, cause the Share certificates to be delivered to the Purchaser.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

2.1. Representations by The Purchaser.  The Purchaser makes the following representations and warranties to the Company:

 

(a)  Access to Information.  The Purchaser, in making the decision to purchase the Shares, has relied solely upon independent investigations made by it and/or its representatives, if any.  The Purchaser and/or its representatives during the course of this transaction, and prior to the purchase of any Shares, has had the opportunity to ask questions of and receive answers from the management of the Company concerning the terms and conditions of the offering of the Shares and to receive any additional information, documents, records and books relative to its business, assets, financial condition, results of operations and liabilities (contingent or otherwise) of the Company.

 

(b)  Sophistication and Knowledge. The Purchaser and/or its representative has such knowledge and experience in financial and business matters that it can represent itself and is capable of evaluating the merits and risks of the purchase of the Shares.  The Purchaser is not relying on the Company with respect to the tax and other economic considerations of an investment in the Shares, and the Purchaser has relied on the advice of, or has consulted with, only the Purchaser's own advisor(s).

 

(c)  Lack of Liquidity.  The Purchaser acknowledges that the purchase of the Shares involves a high degree of risk and further acknowledges that it can bear the economic risk of the purchase of the Shares, including the total loss of its investment.  The Purchaser has no present need for liquidity in connection with its purchase of the Shares.

 

(d)   No Public Solicitation.  The Purchaser is not subscribing for the Shares as a result of or subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Purchaser in connection with investments in securities generally.  Neither the Company nor the Purchaser has engaged in any 'Directed Selling Efforts in the U.S., ' as defined in Regulation S promulgated by the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended.

 

(e)    Authority.  The Purchaser has the full right and power to enter into and perform pursuant to this Agreement and to make an investment in the Company, and this Agreement constitutes the Purchaser's valid and legally binding obligation, enforceable in accordance with its terms. The Purchaser is authorized and otherwise duly qualified to purchase and hold the Shares and to enter into this Agreement.

 

(f)    Regulation S Exemption.  The Purchaser understands that the Shares are being offered and sold to it in reliance on an exemption from the registration requirements of the United States federal and state securities laws under Regulation S promulgated under the Securities Act of 1933, as amended, (the "Securities Act") and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in order to determine the applicability of such exemptions and the suitability of the Purchaser to acquire the Shares.  In this regard, the Purchaser represents, warrants and agrees that:

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(1) No Purchaser is a U.S. Person (as defined below).  A U.S. Person means any one of the following:

 

(i)                   any U.S. Citizen;

(ii)                 any natural person resident in the United States of America;

(iii)                any partnership or corporation organized or incorporated under the laws of the United States of America;

(iv)               any estate of which any executor or administrator is a U.S. person;

(v)                 any trust of which any trustee is a U.S. person;

(vi)               any agency or branch of a foreign entity located in the United States of America;

(vii)              any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. Person;

(viii)            any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated or (if an individual) resident in the United States of America; and

(ix)               any partnership or corporation if:

 

a.       organized or incorporated under the laws of any foreign jurisdiction; and

 

b.       formed by a U.S. Person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors  (as defined in Rule 501(a) under the Securities Act) who are not natural persons, estates or trusts.

 

(2) At the time of the origination of contact concerning this Agreement and the date of the execution and delivery of this Agreement, the Purchaser was outside of the United States.

 

(3) The Purchaser will not, during the period commencing on the date of issuance of the Shares and ending on the first anniversary of such date, or such shorter period as may be permitted by Regulation S or other applicable securities law ("Restricted Period"), offer, sell, pledge or otherwise transfer the Shares in the United States, or to a U.S. Person for the account or benefit of a U.S. Person, or otherwise in a manner that is not in compliance with Regulation S.

 

(4)  The Purchaser will, after expiration of the Restricted Period, offer, sell, pledge or otherwise transfer the Shares only pursuant to registration under the Securities Act or an available exemption therefrom and, in accordance with all applicable state and foreign securities laws.

 

(5)  The Purchaser has not in the United States, engaged in, and prior to the expiration of the Restricted Period will not engage in, any short selling of or any hedging transaction with respect to the Shares, including without limitation, any put, call or other option transaction, option writing or equity swap.

 

(6)  Neithor the Purchaser nor any person acting on the Purchaser's behalf has engaged, nor will engage, in any directed selling efforts to U.S. Citizens with respect to the Shares and the Purchaser and any person acting on its behalf have complied and will comply with the "offering restrictions" requirements of Regulation S under the Securities Act.

 

(7) The transactions contemplated by this Agreement have not been pre-arranged with a buyer located in the United States or with a U.S. Person, and are not part of a plan or scheme to evade the registration requirements of the Securities Act.

 

(8)  Neither any Purchaser nor any person acting on the Purchaser's behalf has undertaken or carried out any activity for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States, its territories or possessions, for any of the Shares.  The Purchaser agrees not to cause any advertisement of the Shares to be published in any newspaper or periodical or posted in any public place and not to issue any circular relating to the Shares, except such advertisements that include the statements required by Regulation S under the Securities Act, and only offshore and not in the U.S. or its territories, and only in compliance with any local applicable securities laws.

 

(9)    Each certificate representing the Shares shall be endorsed with the following legends:

 

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"THE SHARES ARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("THE SECURITIES ACT")) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION S PROMULGATED UNDER THE SECURITIES ACT. " 

 

"TRANSFER OF THESE SHARES IS PROHIBITED, EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. " 

 

 

as well as any other legend required to be placed thereon by applicable federal or state securities laws.

 

(10) The Purchaser consents to the Company making a notation on its records or giving instructions to any transfer agent of the Company in order to implement the restrictions on transfer of the Shares.

 

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and warrants as follows:

 

3.1 Organization and Standing of the Company.  The Company is a duly organized and validly existing corporation in good standing under the laws of the State of Nevada and has all requisite corporate power and authority for the ownership and operation of its properties and for the carrying on of its business as now conducted and as now proposed to be conducted and to execute and deliver this Agreement and other instruments, agreements and documents contemplated herein (together with this Agreement, the "Transaction Documents"), to issue, sell and deliver the Shares and to perform its other obligations pursuant hereto.  The Company is duly licensed or qualified and in good standing as a foreign corporation authorized to do business in all jurisdictions wherein the character of the property owned or leased or the nature of the activities conducted by it makes such licensing or qualification necessary, except where the failure to be so licensed or qualified would not have a material adverse effect on the business, operations or financial condition of the Company.

 

3.2 Corporate Action.  The Transaction Documents have been duly authorized, executed and delivered by the Company and constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms.  The Shares have been duly authorized.  The issuance, sale and delivery of the Shares have been duly authorized by all required corporate action on the part of the Company.  The Shares, when issued and paid for in accordance with the Transaction Documents, will be validly issued, fully paid and nonassessable, with no personal liability attaching to the ownership thereof and will be free and clear of all liens, charges, restrictions, claims and encumbrances imposed by or through the Company, except as expressly set forth in the Transaction Documents.

 

3.3 Governmental Approvals.  No authorization, consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, is or will be necessary for, or in connection with, the execution and delivery by the Company of this Agreement, for the offer, issue, sale, execution or delivery of the Shares, or for the performance by the Company of its obligations under the Transaction Documents except for any filings required by applicable securities laws.

 

3.4 Litigation. There is no litigation or governmental proceeding or investigation pending or, to the knowledge of the Company, threatened against the Company affecting any of its properties or assets, nor, to the best knowledge of the Company, has there occurred any event or does there exist any condition on the basis of which any litigation, proceeding or investigation might properly be instituted.  The Company is not in default with respect to any order, writ, injunction, decree, ruling or decision of any court, commission, board or other government agency, which such default might have a material adverse effect on the business, assets, liabilities, operations, Intellectual Property Rights, (as defined hereinafter) management or financial condition of the Company.  There are no actions or proceedings pending or, to the Company's knowledge, threatened (or any basis therefor known to the Company) against the Company which might result, either in any case or in the aggregate, in any material adverse change in the business, operations, Intellectual Property Rights, affairs or financial condition of the Company or in any of its properties or assets, or which might call into question the validity of any of the Transaction Documents, any of the Shares, or any action taken or to be taken pursuant hereto or thereto.

 

3.5 Compliance with Other Instruments.  The Company is in compliance in all respects with its Certificate of Incorporation and Bylaws, each as amended and/or restated to date, and in all respects with the material terms and provisions of all mortgages, indentures, leases, agreements and other instruments by which it is bound or to which it or any of its properties or assets are subject.  The Company is in compliance in all material respects with all judgments, decrees, governmental orders, laws, statutes, rules or regulations by which it is bound or to which it or any of its properties or assets are subject.  Neither the execution and delivery of the Transaction Documents nor the issuance of the Shares, nor the consummation or performance of any transaction contemplated hereby or thereby, has constituted or resulted in or will constitute or result in a default or violation of, create a conflict with, trigger any "change of control" or other right of any person under, or require any consent, waiver, release or approval under or with respect to, any term or provision of any of the foregoing documents, instruments, judgments, agreements, decrees, orders, statutes, rules and regulations.

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3.6 Disclosure.  There is no fact within the knowledge of the Company or any of its executive officers which has not been disclosed herein or in writing by them to the Purchaser and which materially adversely affects, or in the future in their opinion may, insofar as they can now foresee, materially adversely affect the business, operations, properties, Intellectual Property Rights, assets or condition, financial or other, of the Company.  Without limiting the foregoing, the Company has no knowledge that there exists, or there is pending or planned, any patent, invention, device, application or principle or any statute, rule, law, regulation, standard or code which would materially adversely affect the business, operations, Intellectual Property Rights, affairs or financial condition of the Company.

 

3.7 Brokers or Finders.  No person has or will have, as a result of the transactions contemplated by this Agreement, any right, interest or valid claim against or upon the Purchaser for any commission, fee or other compensation as a finder or broker because of any act or omission by the Company or its respective agents.

 

3.8 Refusal of Registration.  The parties hereby acknowledge and agree that the Company shall be required, as a term of this contract, to refuse to register any transfer of the Shares not made in accordance with the provisions of Regulation S, or pursuant to Registration, or another exemption from registration, under the Securities Act.

 

 

ARTICLE IV

MISCELLANEOUS

 

4.1 Waiver; Cumulative Remedies.  No failure or delay on the part of any party to this Agreement in exercising any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

 

4.2 Amendments; Waivers and Consents.  Any provision in the Agreement to the contrary notwithstanding, and except as hereinafter provided, changes in, termination or amendments of or additions to this Agreement may be made, and compliance with any covenant or provision set forth herein may be omitted or waived, if either Party shall obtain consent thereto in writing from the other Party.  Any waiver or consent may be given subject to satisfaction of conditions stated therein and any waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

4.3 Addresses for Notices.  Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified mail, return receipt requested, or delivered against receipt to Company and/or to the Purchaser.  Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for a notice changing a party's address which shall be deemed given at the time of receipt thereof.

 

  4.4 Costs; Expenses and Taxes.   Upon execution of this Agreement and with each delivery of the Purchase Price as set forth in 1.3, the Company shall pay no monies in the aggregate, to cover fees and disbursements of counsel to the Purchaser incurred in connection with the negotiation, drafting and completion of the Transaction Documents and all related matters. The Company shall pay any and all stamp, or other similar taxes payable or determined to be payable in connection with the execution and delivery of this Agreement, the issuance of any securities and the other instruments and documents to be delivered hereunder or thereunder, and agrees to save the Purchaser harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay such taxes.

 

4.5 Effectiveness; Binding Effect; Assignment.  This Agreement shall be binding upon and inure to the benefit of the Company, the Purchaser and the respective successors and assigns.

 

4.6 Survival of Representations and Warranties.  All representations and warranties made in the Transaction Documents, the Shares, or any other instrument or document delivered in connection herewith or therewith, shall survive the execution and delivery hereof or thereof.

 

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4.7 Prior Agreements.  The Transaction Documents executed and delivered in connection herewith constitute the entire agreement between the parties with respect to the subject matter set forth herein and supersede any prior understandings or agreements concerning the subject matter hereof.

 

4.8 Severability.  The provisions of the Transaction Documents are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions or part of a provision contained therein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of such Transaction Document and the terms of the Shares shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of a provision, had never been contained herein, and such provisions or part reformed so that it would be valid, legal and enforceable to the maximum extent possible.

 

4.9 Governing Law; Jurisdiction. 

 

(a) This Agreement shall be enforced, governed and construed in accordance with the laws of the State of Nevada without giving effect to choice of laws principles or conflict of laws provisions. Any suit, action or proceeding pertaining to this Agreement or any transaction relating hereto shall be brought in the State of Nevada and the undersigned hereby irrevocably consents and submits to the jurisdiction of such courts for the purpose of any such suit, action, or proceeding.  

 

(b) The Purchaser hereby waives, and agrees not to assert against the Company, or any successor assignee thereof, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, (i) any claim that the Purchaser is not personally subject to the jurisdiction of the above-named courts, and (ii) to the extent permitted by applicable law, any claim that such suit, action or proceeding is brought in an inconvenient forum or that the venue of any such suit, action or proceeding is improper or that this Agreement may not be enforced in or by such courts.

 

4.10 Headings.  Article, section and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

 

4.11 Counterparts.  This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Agreement by signing any such counterpart.

 

4.12 Further Assurances.  From and after the date of this Agreement, upon the request of the Purchaser or the Company, the Company and the Purchaser shall execute and deliver such instruments, documents and other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of the Transaction Documents and the Shares.

 

 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

 

< Signature Page to Follow >

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

 

	

   COMPANY:
	

    

	

    
	

    

	

   San Lotus Holding Inc.
	

    

	

    
	

    

	

   By:
	

   /s/ Chen, Li Hsing
	

    

	

   Name: Chen, Li Hsing
	

    

	

   Title: Chairman of the Board
	

    

	 	 	 

 

PURCHASERS:

 

	

    
	

   Name
	

    
	

   Signing Representative
	

    
	

   Address
	

    
	

   Shares Purchased

	

   1
	

   LO, FUN MING
	

    
	

   /s/LO, FUN MING
	

    
	

   3268 29TH AVE W Vancouver BC V6L 1Y6, Canada
	

    
	

   226,491,620 

	

   2
	

   DENG DONG LTD
	

    
	

   /s/DENG DONG LTD
	

    
	

   2F., No.168, Weimin St., Miaoli City, Miaoli County 360, Taiwan (R.O.C.)
	

    
	

   49,030,361 

	

   3
	

   HUANG, HUANG-CHANG
	

    
	

   /s/HUANG, HUANG-CHANG
	

    
	

   No.8, Ln. 132, Zhongxiao St., Zhudong Township, Hsinchu County 310, Taiwan (R.O.C.)
	

    
	

   44,156 

	

   4
	

   LAI, YUEH-ER
	

    
	

   /s/LAI, YUEH-ER
	

    
	

   No.81, Shangshan, Qionglin Township, Hsinchu County 307, Taiwan (R.O.C.)
	

    
	

   66,234 

	

   5
	

   KAO, YU-TSAI
	

    
	

   /s/KAO, YU-TSAI
	

    
	

   19F-2., No.573, Sec. 1, Wenhua 2st Rd., Linkou Dist., New Taipei City 244, Taiwan (R.O.C.)
	

    
	

   10,000 

	

   6
	

   HUANG, CHIN-CHUNG
	

    
	

   /s/HUANG, CHIN-CHUNG
	

    
	

   No.63-2, Beishi, Xinwu Township, Taoyuan County 327, Taiwan (R.O.C.)
	

    
	

   70,000 

	

   7
	

   LAI, FU-HSIUNG
	

    
	

   /s/LAI, FU-HSIUNG
	

    
	

   No.148, Wenhua St., West Dist., Taichung City 403, Taiwan (R.O.C.)
	

    
	

   8,279 

	

   8
	

   LIAO, PO-CHAN
	

    
	

   /s/LIAO, PO-CHAN
	

    
	

   4F., No.126, Xianfu Rd., Miaoli City, Miaoli County 360, Taiwan (R.O.C.)
	

    
	

   8,279 

	

   9
	

   HUANG, CHIN-YEN
	

    
	

   /s/HUANG, CHIN-YEN
	

    
	

   6F.-1, No.9, Aly. 8, Ln. 554, Bein Rd., Zhongshan Dist., Taipei City 104, Taiwan (R.O.C.)
	

    
	

   1,000

	

   10
	

   LIU, CHIUNG-YANG
	

    
	

   /s/LIU, CHIUNG-YANG
	

    
	

   2F., No.5, Ln. 9, Jinhua St., Banqiao Dist., New Taipei City 220, Taiwan (R.O.C.)
	

    
	

   667 

	

   11
	

   TING, YI-PING
	

    
	

   /s/TING, YI-PING
	

    
	

   2F., No.16, Ln. 102, Yusheng Rd., Tucheng Dist., New Taipei City 236, Taiwan (R.O.C.)
	

    
	

   1,000 

	

   12
	

   Ocean Reserve Ltd.
	

    
	

   /s/Ocean Reserve Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   60,786,317 

	

   13
	

   YU, CHIEN-YANG
	

    
	

   /s/YU, CHIEN-YANG
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   5,962,930 

	

   14
	

   Da Chuang Business Management Consultant Co., Ltd
	

    
	

   /s/Da Chuang Business Management Consultant Co., Ltd
	

    
	

   3F., No.132, Gongyi Rd., West Dist., Taichung City 403, Taiwan (R.O.C.)
	

    
	

   331,170 

	

   15
	

   UHAO LTD.
	

    
	

   /s/UHAO LTD.
	

    
	

   No.55, Gongxiao St., Changhua City, Changhua County 500, Taiwan (R.O.C.)
	

    
	

   1,294,503 

	

   16
	

   CHEN, MING-CHU
	

    
	

   /s/CHEN, MING-CHU
	

    
	

   No.6, Ln. 24, Dalian N. St., Beitun Dist., Taichung City 406, Taiwan (R.O.C.)
	

    
	

   63,290 

	

   17
	

   Joyful Wealth Co., Ltd.
	

    
	

   /s/Joyful Wealth Co., Ltd.
	

    
	

   No.53, Ln. 352, Gongyuan Rd., Wuri Dist., Taichung City 414, Taiwan (R.O.C.)
	

    
	

   324,547 

	

   18
	

   LI, CHINE-LIN
	

    
	

   /s/LI, CHINE-LIN
	

    
	

   No.55, Aly. 1, Ln. 164, Zhongsha Rd., Dadu Dist., Taichung City 432, Taiwan (R.O.C.)
	

    
	

   6,929 

	

   19
	

   HSIEH, JUNG-MAO
	

    
	

   /s/HSIEH, JUNG-MAO
	

    
	

   No.69, Ln. 158, Nanyang Rd., Fengyuan Dist., Taichung City 420, Taiwan (R.O.C.)
	

    
	

   20,000 

	

   20
	

   CHANG, TA-CHING
	

    
	

   /s/CHANG, TA-CHING
	

    
	

   No.216, Zhonggong 3rd Rd., Xitun Dist., Taichung City 407, Taiwan (R.O.C.)
	

    
	

   10,000 

	

   21
	

   CHAN, CHUN-FENG
	

    
	

   /s/CHAN, CHUN-FENG
	

    
	

   No.753, Sec. 1, Songzhu Rd., Beitun Dist., Taichung City 406, Taiwan (R.O.C.)
	

    
	

   10,000 

	

   22
	

   CHANG, CHIA-CHEN
	

    
	

   /s/CHANG, CHIA-CHEN
	

    
	

   No.757, Sec. 1, Songzhu Rd., Beitun Dist., Taichung City 406, Taiwan (R.O.C.)
	

    
	

   15,000 

	

   23
	

   CHIU, CHAO-MING
	

    
	

   /s/CHIU, CHAO-MING
	

    
	

   No.17, Ln. 177, Yuying Rd., Fengyuan Dist., Taichung City 420, Taiwan (R.O.C.)
	

    
	

   10,000 

	

   24
	

   WANG, HSIN-PING
	

    
	

   /s/WANG, HSIN-PING
	

    
	

   No.63, Ln. 600, Sec. 4, Zhongqing Rd., Daya Dist., Taichung City 428, Taiwan (R.O.C.)
	

    
	

   6,500 

	

   25
	

   Fuxin Ltd.
	

    
	

   /s/Fuxin Ltd.
	

    
	

   5F # 105-6 HO-CHING RD HO-MEI CHANGHUA,TAIWAN
	

    
	

   6,500 

	

   26
	

   KUO, MAN-YU
	

    
	

   /s/KUO, MAN-YU
	

    
	

   5F., No.26, Ln. 298, Nanyang Rd., Fengyuan Dist., Taichung City 420, Taiwan (R.O.C.)
	

    
	

   2,000 

	

   27
	

   HUANG LIU, HSIU-MEI
	

    
	

   /s/HUANG LIU, HSIU-MEI
	

    
	

   No.46, Zhongkeng Ln., Shuiyuan Rd., Fengyuan Dist., Taichung City 420, Taiwan (R.O.C.)
	

    
	

   10,000 

	

   28
	

   CHANG, JUEI-FENG
	

    
	

   /s/CHANG, JUEI-FENG
	

    
	

   No.173, Yuanhuan E. Rd., Fengyuan Dist., Taichung City 420, Taiwan (R.O.C.)
	

    
	

   10,000 

	

   29
	

   BABAIYI LTD
	

    
	

   /s/BABAIYI LTD
	

    
	

   No. 3 Cooperative, Huangling Village, Lingshi Town, Fuling District, Chongqing
	

    
	

   19,048 

	

   30
	

   CHU,CHE-TZU
	

    
	

   /s/CHU,CHE-TZU
	

    
	

   12F., No.191, Kunming St., Wanhua Dist., Taipei City 108, Taiwan (R.O.C.)
	

    
	

   33,000 

	

   31
	

   Daphne Chen Ltd.
	

    
	

   /s/Daphne Chen Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   5,010,876 

	

   32
	

   Rocky Yu Ltd.
	

    
	

   /s/Rocky Yu Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   5,010,876 

	

   33
	

   Jackson Yu Ltd.
	

    
	

   /s/Jackson Yu Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   5,010,876 

	

   34
	

   Dennis Yu Ltd.
	

    
	

   /s/Dennis Yu Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   5,010,876 

	

   35
	

   Gu Gu Gu Ltd.
	

    
	

   /s/Gu Gu Gu Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   2,505,438 

	

   36
	

   Nan Fang Ltd.
	

    
	

   /s/Nan Fang Ltd.
	

    
	

   No.6, Ln. 580, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   4,974,876 

	

   37
	

   New Bela Ltd.
	

    
	

   /s/New Bela Ltd.
	

    
	

   No.6, Ln. 580, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   769,701 

	

   38
	

   Wang, CHIEN-WEN
	

    
	

   /s/Wang, CHIEN-WEN
	

    
	

   1F., No.7, Aly. 2, Ln. 56, Xiushan Rd., Taoyuan City, Taoyuan County 330, Taiwan (R.O.C.)
	

    
	

   2,778 

	

   39
	

   HUANG, KUO-SHU
	

    
	

   /s/HUANG, KUO-SHU
	

    
	

   No.12, Ln. 1, Wenhua 3rd Rd., Guishan Township, Taoyuan County 333, Taiwan (R.O.C.)
	

    
	

   2,778 

	

   40
	

   Magnum Holding Co., Ltd.
	

    
	

   /s/Magnum Holding Co., Ltd.
	

    
	

   No.641, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   6,498,432 

	

   41
	

   LIN, YU-CHOU
	

    
	

   /s/LIN, YU-CHOU
	

    
	

   No. 9, Dayuan 9th St., Taping Dist., Taichung City 411, Taiwan(R.O.C.)
	

    
	

   22,222 

	

   42
	

   LIN, LING-HUI
	

    
	

   /s/LIN, LING-HUI
	

    
	

   No. 406, Xingang Road, Shengang Township, Zhanghua County, Taiwan(R.O.C.)
	

    
	

   9,556 

	

   43
	

   HUANG, TZU-SHAN
	

    
	

   /s/HUANG, TZU-SHAN
	

    
	

   No. 219, Daya Rd., Section 2, Chiayi City, Chiayi County, Taiwan (R.O.C.)
	

    
	

   15,873 

	

   44
	

   LIAO, MIAO-CHIH
	

    
	

   /s/LIAO, MIAO-CHIH
	

    
	

   No. 1, Ln. 546, Sanhe Rd., Fengyuan Dist., Taichung City 420, Taiwan (R.O.C.)
	

    
	

   7,937 

	

   45
	

   WANG, HENG
	

    
	

   /s/WANG, HENG
	

    
	

   F1. 8-1, Da-xue Road, Xinzhu City, Xinzhu County, Taiwan (R.O.C.)
	

    
	

   66,700 

	

   46
	

   Magnate Ltd.
	

    
	

   /s/Magnate Ltd.
	

    
	

   No. 212, Ln. 281, Sec. 1, Xinshi 1st Rd., Tamsui Dist., New Taipei City 251, Taiwan (R.O.C.)
	

    
	

   5,759,764 

	

   47
	

   CHANG, CHUN-HAO
	

    
	

   /s/CHANG, CHUN-HAO
	

    
	

   11F., No.12, Minzu Rd., Linkou Dist., New Taipei City 244, Taiwan (R.O.C.)
	

    
	

   3,575 

	

   48
	

   Bellini Ventures Ltd.
	

    
	

   /s/Bellini Ventures Ltd.
	

    
	

   B302E, 3F., No.185, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   760,214 

	

   49
	

   Tatars Ltd.
	

    
	

   /s/Tatars Ltd.
	

    
	

   No.8, Bafenliao, Shiding Dist., New Taipei City 223, Taiwan (R.O.C.)
	

    
	

   2,948,614 

	

   50
	

   Holing House Ltd.
	

    
	

   /s/Holing House Ltd.
	

    
	

   No. 29, Ln. 85, Dongfeng Rd., North Dist., Tainan City 704, Taiwan (R.O.C.)
	

    
	

   3,248,184 

	

   51
	

   HUNG, WEI-YI
	

    
	

   /s/HUNG, WEI-YI
	

    
	

   9F., No.407, Longde Rd., Gushan Dist., Kaohsiung City 804, Taiwan (R.O.C.)
	

    
	

   8,334 

	

   52
	

   Flora Lai Ltd.
	

    
	

   /s/Flora Lai Ltd.
	

    
	

   7F., No. 7, Ln. 411, Shenlong Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   1,512,871 

	

   53
	

   WU, TING-KUANG
	

    
	

   /s/WU, TING-KUANG
	

    
	

   No.64, 2nd St., Jhongsing Rd., Nantou City, Nantou County 540, Taiwan (R.O.C.)
	

    
	

   40,019 

	

   54
	

   Mao Ren International Inc.
	

    
	

   /s/Mao Ren International Inc.
	

    
	

   No. 121 Songzhu North Rd.,Beitun Dist., Taichung City, Taiwan (R.O.C.)
	

    
	

   3,980,844 

 

6

 

 

  

 

 

Schedule A

PURCHASER LIST

 

	

    
	

   Purchaser
	

    
	

   Purchaser Amount(TWD)
	

    
	

   Purchaser Amount(USD)
	

    
	

   Purchasing Shares

	

   1
	

   LO, FUN MING
	

    
	

   $1,917,695,123
	

    
	

   $63,508,250.20
	

    
	

   226,491,620

	

   2
	

   DENG DONG LTD
	

    
	

   $415,138,026
	

    
	

   $13,748,113.20
	

    
	

   49,030,361

	

   3
	

   HUANG, HUANG-CHANG
	

    
	

   $373,866
	

    
	

   $12,381.30
	

    
	

   44,156

	

   4
	

   LAI, YUEH-ER
	

    
	

   $560,800
	

    
	

   $18,572.00
	

    
	

   66,234

	

   5
	

   KAO, YU-TSAI
	

    
	

   $84,670
	

    
	

   $2,804.00
	

    
	

   10,000

	

   6
	

   HUANG, CHIN-CHUNG
	

    
	

   $592,687
	

    
	

   $19,628.00
	

    
	

   70,000

	

   7
	

   LAI, FU-HSIUNG
	

    
	

   $70,097
	

    
	

   $2,321.40
	

    
	

   8,279

	

   8
	

   LIAO, PO-CHAN
	

    
	

   $70,097
	

    
	

   $2,321.40
	

    
	

   8,279

	

   9
	

   HUANG, CHIN-YEN
	

    
	

   $8,467
	

    
	

   $280.40
	

    
	

   1,000

	

   10
	

   LIU, CHIUNG-YANG
	

    
	

   $5,647
	

    
	

   $187.00
	

    
	

   667

	

   11
	

   TING, YI-PING
	

    
	

   $8,467
	

    
	

   $280.40
	

    
	

   1,000

	

   12
	

   Ocean Reserve Ltd.
	

    
	

   $514,675,218
	

    
	

   $17,044,483.30
	

    
	

   60,786,317

	

   13
	

   YU, CHIEN-YANG
	

    
	

   $50,487,881
	

    
	

   $1,672,005.60
	

    
	

   5,962,930

	

   14
	

   Da Chuang Business Management Consultant Co., Ltd
	

    
	

   $2,804,004
	

    
	

   $92,860.10
	

    
	

   331,170

	

   15
	

   UHAO LTD.
	

    
	

   $10,960,502
	

    
	

   $362,978.60
	

    
	

   1,294,503

	

   16
	

   CHEN, MING-CHU
	

    
	

   $535,873
	

    
	

   $17,746.50
	

    
	

   63,290

	

   17
	

   Joyful Wealth Co., Ltd.
	

    
	

   $2,747,927
	

    
	

   $91,003.00
	

    
	

   324,547

	

   18
	

   LI, CHINE-LIN
	

    
	

   $58,668
	

    
	

   $1,942.90
	

    
	

   6,929

	

   19
	

   HSIEH, JUNG-MAO
	

    
	

   $169,339
	

    
	

   $5,608.00
	

    
	

   20,000

	

   20
	

   CHANG, TA-CHING
	

    
	

   $84,670
	

    
	

   $2,804.00
	

    
	

   10,000

	

   21
	

   CHAN, CHUN-FENG
	

    
	

   $84,670
	

    
	

   $2,804.00
	

    
	

   10,000

	

   22
	

   CHANG, CHIA-CHEN
	

    
	

   $127,004
	

    
	

   $4,206.00
	

    
	

   15,000

	

   23
	

   CHIU, CHAO-MING
	

    
	

   $84,670
	

    
	

   $2,804.00
	

    
	

   10,000

	

   24
	

   WANG, HSIN-PING
	

    
	

   $55,035
	

    
	

   $1,822.60
	

    
	

   6,500

	

   25
	

   Fuxin Ltd.
	

    
	

   $55,035
	

    
	

   $1,822.60
	

    
	

   6,500

	

   26
	

   KUO, MAN-YU
	

    
	

   $16,934
	

    
	

   $560.80
	

    
	

   2,000

	

   27
	

   HUANG LIU, HSIU-MEI
	

    
	

   $84,670
	

    
	

   $2,804.00
	

    
	

   10,000

	

   28
	

   CHANG, JUEI-FENG
	

    
	

   $84,670
	

    
	

   $2,804.00
	

    
	

   10,000

	

   29
	

   BABAIYI LTD
	

    
	

   $161,280
	

    
	

   $5,341.10
	

    
	

   19,048

	

   30
	

   CHU,CHE-TZU
	

    
	

   $279,410
	

    
	

   $9,253.20
	

    
	

   33,000

	

   31
	

   Daphne Chen Ltd.
	

    
	

   $42,426,878
	

    
	

   $1,405,049.60
	

    
	

   5,010,876

	

   32
	

   Rocky Yu Ltd.
	

    
	

   $42,426,878
	

    
	

   $1,405,049.60
	

    
	

   5,010,876

	

   33
	

   Jackson Yu Ltd.
	

    
	

   $42,426,878
	

    
	

   $1,405,049.60
	

    
	

   5,010,876

	

   34
	

   Dennis Yu Ltd.
	

    
	

   $42,426,878
	

    
	

   $1,405,049.60
	

    
	

   5,010,876

	

   35
	

   Gu Gu Gu Ltd.
	

    
	

   $21,213,439
	

    
	

   $702,524.80
	

    
	

   2,505,438

	

   36
	

   Nan Fang Ltd.
	

    
	

   $42,122,067
	

    
	

   $1,394,955.20
	

    
	

   4,974,876

	

   37
	

   New Bela Ltd.
	

    
	

   $6,517,028
	

    
	

   $215,824.20
	

    
	

   769,701

	

   38
	

   WANG, CHIEN-WEN
	

    
	

   $23,523
	

    
	

   $779.00
	

    
	

   2,778

	

   39
	

   HUANG, KUO-SHU
	

    
	

   $23,523
	

    
	

   $779.00
	

    
	

   2,778

	

   40
	

   Magnum Holding Co., Ltd.
	

    
	

   $55,021,952
	

    
	

   $1,822,160.30
	

    
	

   6,498,432

	

   41
	

   LIN, YU-CHOU
	

    
	

   $188,151
	

    
	

   $6,231.00
	

    
	

   22,222

	

   42
	

   LIN, LING-HUI
	

    
	

   $80,910
	

    
	

   $2,679.50
	

    
	

   9,556

	

   43
	

   HUANG, TZU-SHAN
	

    
	

   $134,396
	

    
	

   $4,450.80
	

    
	

   15,873

	

   44
	

   LIAO, MIAO-CHIH
	

    
	

   $67,201
	

    
	

   $2,225.50
	

    
	

   7,937

	

   45
	

   WANG, HENG
	

    
	

   $564,747
	

    
	

   $18,702.70
	

    
	

   66,700

	

   46
	

   Magnate Ltd.
	

    
	

   $48,767,681
	

    
	

   $1,615,037.80
	

    
	

   5,759,764

	

   47
	

   CHANG, CHUN-HAO
	

    
	

   $30,268
	

    
	

   $1,002.40
	

    
	

   3,575

	

   48
	

   Bellini Ventures Ltd.
	

    
	

   $6,436,700
	

    
	

   $213,164.00
	

    
	

   760,214

	

   49
	

   Tatars Ltd.
	

    
	

   $24,965,793
	

    
	

   $826,791.40
	

    
	

   2,948,614

	

   50
	

   Holing House Ltd.
	

    
	

   $27,502,239
	

    
	

   $910,790.80
	

    
	

   3,248,184

	

   51
	

   HUNG, WEI-YI
	

    
	

   $70,565
	

    
	

   $2,336.90
	

    
	

   8,334

	

   52
	

   Flora Lai Ltd.
	

    
	

   $12,809,415
	

    
	

   $424,209.00
	

    
	

   1,512,871

	

   53
	

   WU, TING-KUANG
	

    
	

   $338,838
	

    
	

   $11,221.30
	

    
	

   40,019

	

   54
	

   Mao Ren International Inc.
	

    
	

   $33,705,642
	

    
	

   $1,116,228.70
	

    
	

   3,980,844

	

    
	

   Total
	

    
	

   $3,368,456,997
	

    
	

   $111,553,086
	

    
	

   397,835,544

 

 

7exhibit1010.htm - Generated by SEC Publisher for SEC Filing

 

 

 

REGULATION S 

STOCK PURCHASE AGREEMENT

 

 

This Regulation S Stock Purchase Agreement (the "Agreement"), is dated as of August 11, 2014 between San Lotus Holding Inc., a Nevada corporation having offices at 3301 Spring Mountain Rd. Unit 23, Las Vegas, NV 89102 (the "Company"), and the individual purchasers whose names are set forth in the Schedule A hereunder (each a "Purchaser" and, collectively, the "Purchasers").  

 

ARTICLE I

PURCHASE, SALE AND TERMS OF SHARES

 

1.1 The Shares. The Company agrees to issue and sell to the Purchasers in an offshore transaction negotiated outside the U.S. and to be consummated and closed outside the U.S. and, in consideration of and in express reliance upon the representations, warranties, covenants, terms and conditions of this Agreement, the Purchasers agree to purchase from the Company an aggregate of $17,897,202  US dollars or 88,556,167 shares (the "Shares"), of the Company's common stock, par value $0.10per share, (the "Common Stock") at a per share purchase price which shall be  $0.2021 per share (the "Purchase Price"). The specific number of Shares that each Purchaser will purchase is set forth in Schedule A attached hereto. Each Purchaser understands and agrees that the Company in its sole discretion reserves the right to accept or reject this subscription for the Shares, in whole or in part, prior to receipt by the Company of the Purchase Price, or any applicable portion thereof, as set forth in Article II hereafter.

 

1.2 Payment of Purchase Price; Closing.  This transaction will be closed at a location outside the U.S. mutually designated by the Company and the Purchasers, and each Purchaser will pay the applicable purchase price by wire transfer within a reasonable time agreed to by the Company and the Purchaser following execution of this Agreement. The Company will, within a reasonable period of time upon receipt of the funds, cause the Share certificates to be delivered to the Purchaser.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

2.1. Representations by The Purchaser.  The Purchaser makes the following representations and warranties to the Company:

 

(a)  Access to Information.  The Purchaser, in making the decision to purchase the Shares, has relied solely upon independent investigations made by it and/or its representatives, if any.  The Purchaser and/or its representatives during the course of this transaction, and prior to the purchase of any Shares, has had the opportunity to ask questions of and receive answers from the management of the Company concerning the terms and conditions of the offering of the Shares and to receive any additional information, documents, records and books relative to its business, assets, financial condition, results of operations and liabilities (contingent or otherwise) of the Company.

 

(b)  Sophistication and Knowledge. The Purchaser and/or its representative has such knowledge and experience in financial and business matters that it can represent itself and is capable of evaluating the merits and risks of the purchase of the Shares.  The Purchaser is not relying on the Company with respect to the tax and other economic considerations of an investment in the Shares, and the Purchaser has relied on the advice of, or has consulted with, only the Purchaser's own advisor(s).

 

(c)  Lack of Liquidity.  The Purchaser acknowledges that the purchase of the Shares involves a high degree of risk and further acknowledges that it can bear the economic risk of the purchase of the Shares, including the total loss of its investment.  The Purchaser has no present need for liquidity in connection with its purchase of the Shares.

 

(d)   No Public Solicitation.  The Purchaser is not subscribing for the Shares as a result of or subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Purchaser in connection with investments in securities generally.  Neither the Company nor the Purchaser has engaged in any 'Directed Selling Efforts in the U.S., ' as defined in Regulation S promulgated by the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended.

 

(e)    Authority.  The Purchaser has the full right and power to enter into and perform pursuant to this Agreement and to make an investment in the Company, and this Agreement constitutes the Purchaser's valid and legally binding obligation, enforceable in accordance with its terms. The Purchaser is authorized and otherwise duly qualified to purchase and hold the Shares and to enter into this Agreement.

 

(f)    Regulation S Exemption.  The Purchaser understands that the Shares are being offered and sold to it in reliance on an exemption from the registration requirements of the United States federal and state securities laws under Regulation S promulgated under the Securities Act of 1933, as amended, (the "Securities Act") and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in order to determine the applicability of such exemptions and the suitability of the Purchaser to acquire the Shares.  In this regard, the Purchaser represents, warrants and agrees that:

1

 

 

 

 

 

(1) No Purchaser is a U.S. Person (as defined below).  A U.S. Person means any one of the following:

 

(i)                   any U.S. Citizen;

(ii)                 any natural person resident in the United States of America;

(iii)                any partnership or corporation organized or incorporated under the laws of the United States of America;

(iv)               any estate of which any executor or administrator is a U.S. person;

(v)                 any trust of which any trustee is a U.S. person;

(vi)               any agency or branch of a foreign entity located in the United States of America;

(vii)              any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. Person;

(viii)            any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated or (if an individual) resident in the United States of America; and

(ix)               any partnership or corporation if:

 

a.       organized or incorporated under the laws of any foreign jurisdiction; And

 

b.       formed by a U.S. Person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors   (as defined in Rule 501(a) under the Securities Act) who are not natural persons, estates or trusts.

 

(2)  At the time of the origination of contact concerning this Agreement and the date of the execution and delivery of this Agreement, the Purchaser was outside of the United States.

 

(3)  The Purchaser will not, during the period commencing on the date of issuance of the Shares and ending on the first anniversary of such date, or such shorter period as may be permitted by Regulation S or other applicable securities law ("Restricted Period"), offer, sell, pledge or otherwise transfer the Shares in the United States, or to a U.S. Person for the account or benefit of a U.S. Person, or otherwise in a manner that is not in compliance with Regulation S.

 

(4)  The Purchaser will, after expiration of the Restricted Period, offer, sell, pledge or otherwise transfer the Shares only pursuant to registration under the Securities Act or an available exemption therefrom and, in accordance with all applicable state and foreign securities laws.

 

(5)  The Purchaser has not in the United States, engaged in, and prior to the expiration of the Restricted Period will not engage in, any short selling of or any hedging transaction with respect to the Shares, including without limitation, any put, call or other option transaction, option writing or equity swap.

 

(6)  Neithor the Purchaser nor any person acting on the Purchaser's behalf has engaged, nor will engage, in any directed selling efforts to U.S. Citizens with respect to the Shares and the Purchaser and any person acting on its behalf have complied and will comply with the "offering restrictions" requirements of Regulation S under the Securities Act.

 

(7) The transactions contemplated by this Agreement have not been pre-arranged with a buyer located in the United States or with a U.S. Person, and are not part of a plan or scheme to evade the registration requirements of the Securities Act.

 

(8)  Neither any Purchaser nor any person acting on the Purchaser's behalf has undertaken or carried out any activity for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States, its territories or possessions, for any of the Shares.  The Purchaser agrees not to cause any advertisement of the Shares to be published in any newspaper or periodical or posted in any public place and not to issue any circular relating to the Shares, except such advertisements that include the statements required by Regulation S under the Securities Act, and only offshore and not in the U.S. or its territories, and only in compliance with any local applicable securities laws.

 

(9)    Each certificate representing the Shares shall be endorsed with the following legends:

 

2

 

 

 

 

"THE SHARES ARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("THE SECURITIES ACT")) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION S PROMULGATED UNDER THE SECURITIES ACT. " 

 

"TRANSFER OF THESE SHARES IS PROHIBITED, EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. " 

 

 

as well as any other legend required to be placed thereon by applicable federal or state securities laws.

 

(10) The Purchaser consents to the Company making a notation on its records or giving instructions to any transfer agent of the Company in order to implement the restrictions on transfer of the Shares.

 

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and warrants as follows:

 

3.1 Organization and Standing of the Company.  The Company is a duly organized and validly existing corporation in good standing under the laws of the State of Nevada and has all requisite corporate power and authority for the ownership and operation of its properties and for the carrying on of its business as now conducted and as now proposed to be conducted and to execute and deliver this Agreement and other instruments, agreements and documents contemplated herein (together with this Agreement, the "Transaction Documents"), to issue, sell and deliver the Shares and to perform its other obligations pursuant hereto.  The Company is duly licensed or qualified and in good standing as a foreign corporation authorized to do business in all jurisdictions wherein the character of the property owned or leased or the nature of the activities conducted by it makes such licensing or qualification necessary, except where the failure to be so licensed or qualified would not have a material adverse effect on the business, operations or financial condition of the Company.

 

3.2 Corporate Action.  The Transaction Documents have been duly authorized, executed and delivered by the Company and constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms.  The Shares have been duly authorized.  The issuance, sale and delivery of the Shares have been duly authorized by all required corporate action on the part of the Company.  The Shares, when issued and paid for in accordance with the Transaction Documents, will be validly issued, fully paid and nonassessable, with no personal liability attaching to the ownership thereof and will be free and clear of all liens, charges, restrictions, claims and encumbrances imposed by or through the Company, except as expressly set forth in the Transaction Documents.

 

3.3 Governmental Approvals.  No authorization, consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, is or will be necessary for, or in connection with, the execution and delivery by the Company of this Agreement, for the offer, issue, sale, execution or delivery of the Shares, or for the performance by the Company of its obligations under the Transaction Documents except for any filings required by applicable securities laws.

 

3.4 Litigation. There is no litigation or governmental proceeding or investigation pending or, to the knowledge of the Company, threatened against the Company affecting any of its properties or assets, nor, to the best knowledge of the Company, has there occurred any event or does there exist any condition on the basis of which any litigation, proceeding or investigation might properly be instituted.  The Company is not in default with respect to any order, writ, injunction, decree, ruling or decision of any court, commission, board or other government agency, which such default might have a material adverse effect on the business, assets, liabilities, operations, Intellectual Property Rights, (as defined hereinafter) management or financial condition of the Company.  There are no actions or proceedings pending or, to the Company's knowledge, threatened (or any basis therefor known to the Company) against the Company which might result, either in any case or in the aggregate, in any material adverse change in the business, operations, Intellectual Property Rights, affairs or financial condition of the Company or in any of its properties or assets, or which might call into question the validity of any of the Transaction Documents, any of the Shares, or any action taken or to be taken pursuant hereto or thereto.

 

3.5 Compliance with Other Instruments.  The Company is in compliance in all respects with its Certificate of Incorporation and Bylaws, each as amended and/or restated to date, and in all respects with the material terms and provisions of all mortgages, indentures, leases, agreements and other instruments by which it is bound or to which it or any of its properties or assets are subject.  The Company is in compliance in all material respects with all judgments, decrees, governmental orders, laws, statutes, rules or regulations by which it is bound or to which it or any of its properties or assets are subject.  Neither the execution and delivery of the Transaction Documents nor the issuance of the Shares, nor the consummation or performance of any transaction contemplated hereby or thereby, has constituted or resulted in or will constitute or result in a default or violation of, create a conflict with, trigger any "change of control" or other right of any person under, or require any consent, waiver, release or approval under or with respect to, any term or provision of any of the foregoing documents, instruments, judgments, agreements, decrees, orders, statutes, rules and regulations.

3

 

 

 

 

 

3.6 Disclosure.  There is no fact within the knowledge of the Company or any of its executive officers which has not been disclosed herein or in writing by them to the Purchaser and which materially adversely affects, or in the future in their opinion may, insofar as they can now foresee, materially adversely affect the business, operations, properties, Intellectual Property Rights, assets or condition, financial or other, of the Company.  Without limiting the foregoing, the Company has no knowledge that there exists, or there is pending or planned, any patent, invention, device, application or principle or any statute, rule, law, regulation, standard or code which would materially adversely affect the business, operations, Intellectual Property Rights, affairs or financial condition of the Company.

 

3.7 Brokers or Finders.  No person has or will have, as a result of the transactions contemplated by this Agreement, any right, interest or valid claim against or upon the Purchaser for any commission, fee or other compensation as a finder or broker because of any act or omission by the Company or its respective agents.

 

3.8 Refusal of Registration.  The parties hereby acknowledge and agree that the Company shall be required, as a term of this contract, to refuse to register any transfer of the Shares not made in accordance with the provisions of Regulation S, or pursuant to Registration, or another exemption from registration, under the Securities Act.

 

 

ARTICLE IV

MISCELLANEOUS

 

4.1 Waiver; Cumulative Remedies.  No failure or delay on the part of any party to this Agreement in exercising any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

 

4.2 Amendments; Waivers and Consents.  Any provision in the Agreement to the contrary notwithstanding, and except as hereinafter provided, changes in, termination or amendments of or additions to this Agreement may be made, and compliance with any covenant or provision set forth herein may be omitted or waived, if either Party shall obtain consent thereto in writing from the other Party.  Any waiver or consent may be given subject to satisfaction of conditions stated therein and any waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

4.3 Addresses for Notices.  Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified mail, return receipt requested, or delivered against receipt to Company and/or to the Purchaser.  Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for a notice changing a party’s address which shall be deemed given at the time of receipt thereof.

 

4.4 Costs; Expenses and Taxes.   Upon execution of this Agreement and with each delivery of the Purchase Price as set forth in 1.3, the Company shall pay no monies in the aggregate, to cover fees and disbursements of counsel to the Purchaser incurred in connection with the negotiation, drafting and completion of the Transaction Documents and all related matters. The Company shall pay any and all stamp, or other similar taxes payable or determined to be payable in connection with the execution and delivery of this Agreement, the issuance of any securities and the other instruments and documents to be delivered hereunder or thereunder, and agrees to save the Purchaser harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay such taxes.

 

4.5 Effectiveness; Binding Effect; Assignment.  This Agreement shall be binding upon and inure to the benefit of the Company, the Purchaser and the respective successors and assigns.

 

4.6 Survival of Representations and Warranties.  All representations and warranties made in the Transaction Documents, the Shares, or any other instrument or document delivered in connection herewith or therewith, shall survive the execution and delivery hereof or thereof.

 

4

 

 

 

 

4.7 Prior Agreements.  The Transaction Documents executed and delivered in connection herewith constitute the entire agreement between the parties with respect to the subject matter set forth herein and supersede any prior understandings or agreements concerning the subject matter hereof.

 

4.8 Severability.  The provisions of the Transaction Documents are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions or part of a provision contained therein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of such Transaction Document and the terms of the Shares shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of a provision, had never been contained herein, and such provisions or part reformed so that it would be valid, legal and enforceable to the maximum extent possible.

 

4.9 Governing Law; Jurisdiction. 

 

(a) This Agreement shall be enforced, governed and construed in accordance with the laws of the State of Nevada without giving effect to choice of laws principles or conflict of laws provisions. Any suit, action or proceeding pertaining to this Agreement or any transaction relating hereto shall be brought in the State of Nevada and the undersigned hereby irrevocably consents and submits to the jurisdiction of such courts for the purpose of any such suit, action, or proceeding.  

 

(b) The Purchaser hereby waives, and agrees not to assert against the Company, or any successor assignee thereof, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, (i) any claim that the Purchaser is not personally subject to the jurisdiction of the above-named courts, and (ii) to the extent permitted by applicable law, any claim that such suit, action or proceeding is brought in an inconvenient forum or that the venue of any such suit, action or proceeding is improper or that this Agreement may not be enforced in or by such courts.

 

4.10 Headings.  Article, section and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

 

4.11 Counterparts.  This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Agreement by signing any such counterpart.

 

4.12 Further Assurances.  From and after the date of this Agreement, upon the request of the Purchaser or the Company, the Company and the Purchaser shall execute and deliver such instruments, documents and other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of the Transaction Documents and the Shares.

 

 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

 

< Signature Page to Follow >

 

 

5

 

 

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

 

	

   COMPANY:
	

    

	

    
	

    

	

   San Lotus Holding Inc.
	

    

	

    
	

    

	

   By:
	

   /s/ Chen, Li Hsing
	

    

	

   Name: Chen, Li Hsing
	

    

	

   Title: Chairman of the Board
	

    

	 	 	 

 

PURCHASERS:

 

 

	

    
	

   Name
	

    
	

   Signing Representative
	

    
	

   Address
	

    
	

   Shares Purchased

	

   1
	

   Ocean Reserve Ltd.
	

    
	

   /s/Ocean Reserve Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   47,994,245

	

   2
	

   YU, CHIEN-YANG
	

    
	

   /s/YU, CHIEN-YANG
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   1,666,667 

	

   3
	

   CHANG, CHING
	

    
	

   /s/CHANG, CHING
	

    
	

   1802-4657 hazel st. Burnaby BC Canada. V5H 4R2
	

    
	

   827,050 

	

   4
	

   R&G INTERNATIONAL CO., LTD.
	

    
	

   /s/R&G INTERNATIONAL CO., LTD.
	

    
	

   9971 Deagle Road Richmond, BC, Canada V7A 1P9
	

    
	

   32,000,012 

	

   5
	

   CHEN TSENG, CHIH YING
	

    
	

   /s/CHEN TSENG CHIH YING
	

    
	

   9971 Deagle Road Richmond, BC, Canada V7A 1P9
	

    
	

   1,777,783 

	

   6
	

   CHEN, LI HSING
	

    
	

   /s/CHEN LI HSING
	

    
	

   9971 Deagle Road Richmond, BC, Canada V7A 1P9
	

    
	

   2,562,849 

	

   7
	

   YEN, HSIU CHEN
	

    
	

   /s/YEN HSIU CHEN
	

    
	

   5F, NO 57 TUNG HU RD, NEI HU DIST, TAIPEI TAIWAN
	

    
	

   201,964 

	

   8
	

   LEUNG, SIU WING
	

    
	

   /s/LEUNG, SIU WING
	

    
	

   5255 Jaskow Drive Richmond B.C. V7E 5H9
	

    
	

   20,000 

	

   9
	

   CHANG, HAO-CHUN
	

    
	

   /s/CHANG, HAO-CHUN
	

    
	

   7F., No.319-3, Huanzhong E. Rd., Zhongli City, Taoyuan County 320, Taiwan (R.O.C.)
	

    
	

   120,000 

	

   10
	

   GU, YA-TING
	

    
	

   /s/GU,YA-TING
	

    
	

   No.269, Heping Rd., Yangmei City, Taoyuan County 326, Taiwan (R.O.C.)
	

    
	

   12,591 

	

   11
	

   LU, CHING-HO
	

    
	

   /s/LU,CHING-HO
	

    
	

   No.220, Jinhua Rd., East Dist., Taichung City 401, Taiwan (R.O.C.)
	

    
	

   2,611 

	

   12
	

   Mohialddin Khalid AL-Sawaf
	

    
	

   /s/Mohialddin Khalid AL-Sawaf
	

    
	

   Mohammed ALmaqudissi st. AL-basateen dist. Jeddah Saudi Arabia 21332
	

    
	

   14,300 

	

   13
	

   CHEN,LING-JU
	

    
	

   /s/CHEN,LING-JU
	

    
	

   No.2-77, Zhongqing Rd., Beitun Dist., Taichung City 406, Taiwan (R.O.C.)
	

    
	

   4,662 

	

   14
	

   CHEN,QUAN-PING
	

    
	

   /s/CHEN,QUAN-PING
	

    
	

   No.46, Ln. 88, Wuquan Rd., Shengang Dist., Taichung City 429, Taiwan (R.O.C.)
	

    
	

   6,200 

	

   15
	

   PENG, YI-CHEN
	

    
	

   /s/PENG, YI-CHEN
	

    
	

   No.123-1, Shuangliantan, Shuangtan Village, Sanyi Township, Miaoli County367, Taiwan (R.O.C.)
	

    
	

   2,325 

	

   16
	

   LIU,SAN-YU
	

    
	

   /s/LIU,SAN-YU
	

    
	

   4F,No. 257,Sec. 2,Tiding Blvd.,Neihu Dist.,Taipei City 114 ,TAIWAN,R.O.C.
	

    
	

   2,480 

	

   17
	

   TSENG, HSIANG-CHIH
	

    
	

   /s/TSENG, HSIANG-CHIH
	

    
	

   No.687, Zhongzheng Rd., Miaoli City, Miaoli County 360, Taiwan (R.O.C.)
	

    
	

   4,650 

	

   18
	

   LIN,CHIA-LING
	

    
	

   /s/LIN,CHIA-LING
	

    
	

   No.387, Sec. 2, Binhai Rd., Toucheng Township, Yilan County 261, Taiwan (R.O.C.)
	

    
	

   333 

	

   19
	

   Benchmark Assets Management Limited
	

    
	

   /s/Benchmark Assets Management Limited
	

    
	

   No.123-1, Shuangliantan, Shuangtan Village, Sanyi Township, Miaoli County367, Taiwan (R.O.C.)
	

    
	

   6,956 

	

   20
	

   Daphne Chen Ltd.
	

    
	

   /s/Daphne Chen Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   50,590 

	

   21
	

   Rocky Yu Ltd.
	

    
	

   /s/Rocky Yu Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   50,590 

	

   22
	

   Jackson Yu Ltd.
	

    
	

   /s/Jackson Yu Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   50,590 

	

   23
	

   Dennis Yu Ltd.
	

    
	

   /s/Dennis Yu Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   50,590 

	

   24
	

   Gu Gu Gu Ltd.
	

    
	

   /s/Gu Gu Gu Ltd.
	

    
	

   No.548, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   706,363 

	

   25
	

   Nan Fang Ltd.
	

    
	

   /s/Nan Fang Ltd.
	

    
	

   No.6, Ln. 580, Kewang Rd., Longtan Township, Taoyuan County 325, Taiwan (R.O.C.)
	

    
	

   123,569 

	

   26
	

   LIAO, MIAO-CHEN
	

    
	

   /s/LIAO, MIAO-CHEN
	

    
	

   No.9, Ln. 16, Minquan E. St., Caotun Township, Nantou County 542, Taiwan (R.O.C.)
	

    
	

   10,000 

	

   27
	

   Chen, Chun-hung
	

    
	

   /s/Chen Chun-hung
	

    
	

   8F., No.37-1, Mingfeng St., Tucheng Dist., New Taipei City 236, Taiwan (R.O.C.)
	

    
	

   2,000 

	

   28
	

   Liu, Chi-Jen
	

    
	

   /s/Liu, Chi-Jen
	

    
	

   2F.-3, No.203, Sec. 2, Nanchang Rd., Zhongzheng Dist., Taipei City 100, Taiwan (R.O.C.)
	

    
	

   30,000 

	

   29
	

   LIN, CHUN-HAN
	

    
	

   /s/LIN, CHUN-HAN
	

    
	

   No.379-9, Benguan Rd., Niaosong Dist., Kaohsiung City 833, Taiwan
	

    
	

   254,197 

 

6

 

 

  

 

 

Schedule A

 

PURCHASER LIST

 

	

    
	

   Purchaser
	

    
	

   Purchase Amount(TWD)
	

    
	

   Purchase Amount(USD)
	

    
	

   Purchasing Shares

	

   1
	

   Ocean Reserve Ltd.
	

    
	

   $287,594,246
	

    
	

   $9,699,637.30
	

    
	

   47,994,245

	

   2
	

   YU, CHIEN-YANG
	

    
	

   $9,987,110
	

    
	

   $336,833.40
	

    
	

   1,666,667

	

   3
	

   CHANG, CHING
	

    
	

   $4,955,903
	

    
	

   $167,146.80
	

    
	

   827,050

	

   4
	

   R&G INTERNATIONAL CO., LTD.
	

    
	

   $191,752,551
	

    
	

   $6,467,202.40
	

    
	

   32,000,012

	

   5
	

   CHEN TSENG, CHIH YING
	

    
	

   $10,652,946
	

    
	

   $359,289.90
	

    
	

   1,777,783

	

   6
	

   CHEN, LI HSING
	

    
	

   $15,357,271
	

    
	

   $517,951.80
	

    
	

   2,562,849

	

   7
	

   YEN, HSIU CHEN
	

    
	

   $1,210,221
	

    
	

   $40,816.90
	

    
	

   201,964

	

   8
	

   LEUNG, SIU WING
	

    
	

   $119,845
	

    
	

   $4,042.00
	

    
	

   20,000

	

   9
	

   CHANG, HAO-CHUN
	

    
	

   $719,072
	

    
	

   $24,252.00
	

    
	

   120,000

	

   10
	

   GU, YA-TING
	

    
	

   $75,447
	

    
	

   $2,544.60
	

    
	

   12,591

	

   11
	

   LU, CHING-HO
	

    
	

   $15,646
	

    
	

   $527.70
	

    
	

   2,611

	

   12
	

   Mohialddin Khalid AL-Sawaf
	

    
	

   $85,689
	

    
	

   $2,890.00
	

    
	

   14,300

	

   13
	

   CHEN,LING-JU
	

    
	

   $27,936
	

    
	

   $942.20
	

    
	

   4,662

	

   14
	

   CHEN,QUAN-PING
	

    
	

   $37,151
	

    
	

   $1,253.00
	

    
	

   6,200

	

   15
	

   PENG, YI-CHEN
	

    
	

   $13,933
	

    
	

   $469.90
	

    
	

   2,325

	

   16
	

   LIU,SAN-YU
	

    
	

   $14,861
	

    
	

   $501.20
	

    
	

   2,480

	

   17
	

   TSENG, HSIANG-CHIH
	

    
	

   $27,865
	

    
	

   $939.80
	

    
	

   4,650

	

   18
	

   LIN,CHIA-LING
	

    
	

   $1,995
	

    
	

   $67.30
	

    
	

   333

	

   19
	

   Benchmark Assets Management Limited
	

    
	

   $41,682
	

    
	

   $1,405.80
	

    
	

   6,956

	

   20
	

   Daphne Chen Ltd.
	

    
	

   $303,150
	

    
	

   $10,224.30
	

    
	

   50,590

	

   21
	

   Rocky Yu Ltd.
	

    
	

   $303,150
	

    
	

   $10,224.30
	

    
	

   50,590

	

   22
	

   Jackson Yu Ltd.
	

    
	

   $303,150
	

    
	

   $10,224.30
	

    
	

   50,590

	

   23
	

   Dennis Yu Ltd.
	

    
	

   $303,150
	

    
	

   $10,224.30
	

    
	

   50,590

	

   24
	

   Gu Gu Gu Ltd.
	

    
	

   $4,232,715
	

    
	

   $142,756.00
	

    
	

   706,363

	

   25
	

   Nan Fang Ltd.
	

    
	

   $740,458
	

    
	

   $24,973.30
	

    
	

   123,569

	

   26
	

   LIAO, MIAO-CHEN
	

    
	

   $59,923
	

    
	

   $2,021.00
	

    
	

   10,000

	

   27
	

   Chen, Chun-hung
	

    
	

   $11,985
	

    
	

   $404.20
	

    
	

   2,000

	

   28
	

   Liu, Chi-Jen
	

    
	

   $179,768
	

    
	

   $6,063.00
	

    
	

   30,000

	

   29
	

   LIN, CHUN-HAN
	

    
	

   $1,523,215
	

    
	

   $51,373.20
	

    
	

   254,197

	

    
	

   Total
	

    
	

   $530,652,034
	

    
	

   $17,897,202
	

    
	

   88,556,167

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}]]