Document:

ex4-2.htm

Exhibit 4.2

 

Zolon Corporation

Common Stock Warrant

October 29th, 2010

NEITHER THIS WARRANT, NOR THE STOCK TO BE ISSUED UPON EXERCISE HEREOF, HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR QUALIFIED OR REGISTERED UNDER ANY STATE SECURITIES LAWS (THE “STATE SECURITIES LAWS”), AND THIS WARRANT HAS BEEN, AND THE COMMON STOCK TO BE ISSUED UPON EXERCISE HEREOF WILL BE, ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR FOR RESALE IN CONNECTION WITH, ANY DISTRIBUTION THEREOF.  NO SUCH SALE OR OTHER DISPOSITION MAY BE MADE WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 SECURITIES ACT AND COMPLIANCE WITH THE APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE ISSUER AND ITS COUNSEL, THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT AND THAT APPLICABLE STATE SECURITIES LAWS HAVE BEEN COMPLIED WITH.

This certifies that _ _____________________  (“Purchaser”), located at _ ____________________or any party to whom this Warrant is assigned in compliance with the terms hereof (Purchaser and any such assignee being hereafter sometimes referred to as “Holder”), is entitled to subscribe to and purchase, during the period commencing at the date first set forth above and ending at 11:59 p.m. local time in Chicago, Illinois, on that date which is five (5) years from the Effective Date of this Warrant, that number of shares of fully paid and nonassessable common stock (the “Common Stock”) specified herein below of Zolon Corporation (the “Company”), a corporation organized and existing under the laws of Florida with its principal office  at 2850 Golf Road, Suite 30, Rolling Meadows, IL, 60008.  The purchase price of each such share shall be the Warrant Price as defined below.  This Warrant was originally issued to Purchaser pursuant to the Agreement (as defined below).  Notwithstanding the foregoing, the shares subject to this Warrant are callable by the Company at any time after three (3) years of the date hereof per the conditions listed in Article 5.1.

ARTICLE I

DEFINITIONS

	
1.1  

	
“Common Stock” shall mean the current class of common stock of the Company, having a par value of $.001 per share bearing a CUSIP number 98978T108and presently quoted on the OTC Bulletin Board under the symbol ZLON.OB.

	
1.2  

	
“Effective Date” shall mean the date of this Warrant which is October 29th, 2010.

	
1.3  

	
“Number of Shares” of Common Stock subject to this Warrant shall be the same as that number of shares purchased pursuant to that certain Stock Subscription Agreement of even date herewith at $0.30 per share but shall be reduced by the number of shares which are purchased from time to time.  In the event of any adjustment of the Number of Shares pursuant to Article III below, the Number of Shares remaining shall be adjusted pro rata so that the total Number of Shares which may be purchased shall equal the initial Number of Shares as adjusted from time to time.

	
1.4  

	
This “Warrant” is this agreement to allow the purchase of Common Stock pursuant to the terms hereof.

	
1.5  

	
“Warrant Price” shall mean sixty cents ($0.60).

 

  

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ARTICLE II

EXERCISE AND PAYMENT

	
2.1  

	
Cash Exercise.  The purchase rights represented by this Warrant may be exercised by Holder, in whole or in part, by the surrender of this Warrant at the principal office of the Company, and by the payment to the Company, by certified, cashier’s or other check acceptable to the Company, of an amount equal to the aggregate Warrant Price of the shares being purchased.  This Warrant provides no cashless exercise.  Any shares to be issued shall be issued as of the date on which the payment for such shares of Common Stock is received in good funds by the Company.

	
2.2  

	
Stock Certificate.  In the event of any exercise of the rights represented by this Warrant, certificates for the shares of Common Stock so purchased shall be delivered to Holder within a reasonable time and, unless this Warrant has been fully exercised or has expired, a new Warrant representing the balance of shares of Common Stock remaining from the original number with respect to which this Warrant shall not have been exercised shall also be issued to Holder within such time.

	
2.3  

	
Stock Fully Paid; Reservation of Shares.  The Company covenants and warrants that all Common Stock which may be issued upon the exercise of the rights represented by this Warrant shall, upon issuance, be fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof (excluding taxes as applicable to the Holder).  The Company further covenants and warrants that during the period within which the rights represented by this Warrant may be exercised, the Company shall at all times have authorized and reserved for issuance a sufficient number of shares of its Common Stock to satisfy the full exercise of the rights represented by this Warrant.

	
2.4  

	
Fractional Shares.  No fractional share of Common Stock shall be issued in connection with any exercise hereof, but in lieu of a fractional share upon complete exercise hereof, Holder may purchase a whole share at the then effective Warrant Price.

ARTICLE III

CERTAIN ADJUSTMENTS OF NUMBER OF

 SHARES PURCHASABLE AND WARRANT PRICE

	
3.1  

	
Adjustment of Number of Shares.  The number and kind of securities purchasable upon the exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time upon the happening of certain events, as follows:

	
3.1.1  

	
Reclassification, Consolidation or Merger.  In case of: (i) any reclassification or change of outstanding securities issuable upon exercise of this Warrant; (ii) any consolidation or merger of the Company with or into another corporation (other than a merger with another corporation in which the Company is a continuing corporation and which does not result in any reclassification, change or exchange of outstanding securities issuable upon exercise of this Warrant); or (iii) any sale or transfer to another corporation of all, or substantially all, of the property of the Company, then, and in each such event, the Company or such successor or purchasing corporation, as the case may be, shall execute a new Warrant which shall provide that Holder shall have the right to exercise such new Warrant and purchase upon such exercise, in lieu of each share of Common Stock theretofore issuable upon exercise of this Warrant, the kind and amount of securities, money and property receivable upon such reclassification, change, consolidation, merger, sale or transfer by a holder of one share of Common Stock issuable upon exercise of this Warrant had this Warrant been exercised immediately prior to such reclassification, change, consolidation, merger, sale or transfer.  Such new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided in this Section 3 and the provisions of this Section 3.1, shall similarly apply to successive reclassifications, changes, consolidations, mergers, sales and transfers.  Issuance of a new Warrant shall not extend the time for exercise provided in the old Warrant.

 

  

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3.1.2  

	
Subdivision or Combination of Shares.  If the Company shall at any time while this Warrant remains outstanding and unexercised in whole or in part: (i) divide its Common Stock, the Warrant Price shall be proportionately reduced; or (ii) combine shares of its Common Stock, the Warrant Price shall be proportionately increased.

	
3.2  

	
Time of Adjustments to the Warrant Price.  All adjustments to the Warrant Price and the number of shares purchasable hereunder, unless otherwise specified herein, shall be effective as of the earlier of:

	
(a)  

	
the date of issue (or date of sale, if earlier) of the security causing the adjustment;

	
(b)  

	
the effective date of a division or combination of shares;

	
(c)  

	
the record date of any action of holders of the Company’s capital stock of any class taken for the purpose of dividing or combining shares or entitling shareholders to receive a distribution or dividends.

ARTICLE IV

TRANSFER, EXCHANGE AND LOSS

	
4.1  

	
Transfer.  This Warrant is transferable on the books of the Company at its principal office by the registered Holder hereof upon surrender of this Warrant properly endorsed, subject to compliance with federal and state securities laws.  The Company shall issue and deliver to the transferee a new Warrant or Warrants representing the Warrants so transferred.  Upon any partial transfer, the Company shall issue and deliver to Holder a new Warrant or Warrants with respect to the Warrants not so transferred.

	
4.2  

	
Securities Laws.  Upon any issuance of shares of Common Stock upon exercise of this Warrant, it shall be the Company’s responsibility to comply with the requirements of: (1) the 1933 Act; (2) the Securities Exchange Act of 1934, as amended; (3) any applicable listing requirements of any national securities exchange; (4) any state securities regulation or “Blue Sky” laws; and (5) requirements under any other law or regulation applicable to the issuance or transfer of such shares.  If required by the Company, in connection with each issuance of shares of Common Stock upon exercise of this Warrant, the Holder shall give: (i) assurances in writing, satisfactory to the Company, that such shares are not being purchased with a view to the distribution thereof in violation of applicable laws, (ii) sufficient information, in writing, to enable the Company to rely on exemptions from the registration or qualification requirements of applicable laws, if available, with respect to such exercise, and (iii) its cooperation to the Company in connection with such compliance.

	
4.3  

	
Exchange.  This Warrant is exchangeable at the principal office of the Company for Warrants to purchase the same number of shares of Common Stock price purchasable hereunder or the balance of the number of Shares of Common Stock which remain following exercise, as the case may be and each new Warrant shall be identical in form and content to this Warrant, except for appropriate changes in the number of Shares of Common Stock covered thereby and any other changes which are necessary in order to prevent the Warrant exchange from changing the respective rights and obligations of the Company and the Holder as they existed immediately prior to such exchange.

	
4.4  

	
Loss or Mutilation.  Upon receipt by the Company of evidence satisfactory to it of the ownership of, and the loss, theft, destruction or mutilation of, this Warrant and (in the case of loss, theft, or destruction) of indemnity satisfactory to it, and (in the case of mutilation) upon surrender and cancellation hereof, the Company shall execute and deliver in lieu hereof a new Warrant.  The Company shall not be obligated to issue a new Warrant absent delivery of a bond, in form and content as required by its transfer agent for the value of the shares remaining upon full exercise.

ARTICLE V

CALL BY COMPANY

	
4.1  

	
Early Call Right.  In the event that the closing price of the Common Stock as reported by OTC Bulletin Board as the closing price for each of five (5) successive days on which the Common Stock is traded (markets being open) shall be above $0.70, the shares subject to this Warrant are callable by the Company at any time after three (3) years of the date of issuance.

 

  

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4.2  

	
The last date on which the Warrant may be exercised shall be the thirtieth (30th ) day following the receipt of Company’s Call to  Exercise whereupon this Warrant shall be deemed to have expired as of such date but any exercise prior to such date and payment prior to such date shall constitute the valid exercise as to the number of Shares of Common Stock purchased and the Company shall cause to be issued such shares of Common Stock in the manner provided.

ARTICLE VI

HOLDER RIGHTS

	
6.1  

	
No Shareholder Rights Until Exercise.  No Holder hereof, solely by virtue hereof, shall be entitled to any rights as a shareholder of the Company.  Holder shall have all rights of a shareholder with respect to securities purchased upon exercise hereof at the time of cash payment following exercise pursuant to Section 2.1 hereof.

ARTICLE VII

MISCELLANEOUS

	
7.1  

	
Governmental Approvals.  The Company shall from time to time take all action which may be necessary to obtain and keep effective any and all permits, consents and approvals of governmental agencies and authorities and securities acts filings under federal and state laws, which may be or become requisite in connection with the issuance, sale, and delivery of this Warrant, and the issuance, sale and delivery of the shares of Common Stock or other securities or property issuable or deliverable upon exercise of this Warrant.

	
7.2  

	
Governing Laws.  It is the intention of the parties hereto that except as set forth below, the internal laws of Florida (irrespective of its choice of law principles) shall govern the validity of this Warrant, the construction of its terms, and the interpretation and enforcement of the rights and duties of the parties hereto.  Notwithstanding the foregoing, if the Company is organized under the laws of a state other than Florida, the corporation laws of that state shall govern the procedural and substantive matters pertaining to the due authorization, issuance, delivery and exercise of this Warrant and the shares of Common Stock upon exercise hereof.  Except as set forth below, the parties hereby agree that any suit to enforce any provision of this Warrant arising out of or based upon this Warrant or the business relationship between any of the parties hereto shall be brought in the federal district courts located in Florida or the courts of such State.  Each party hereby agrees that such courts shall have personal jurisdiction and venue with respect to such party, and each party hereby submits to the personal jurisdiction and venue of such courts.  In addition to the foregoing jurisdiction, Holder, at its sole option, may commence any such suit in any jurisdiction in which the Company has a business office or is incorporated.

	
7.3  

	
Binding Upon Successors and Assigns.  Subject to, and unless otherwise provided in this Warrant, each and all of the covenants, terms provisions, and agreements contained herein shall be binding upon, and inure to the benefit of the permitted successors, executors, heirs, representatives, administrators and assigns of the parties hereto.

	
7.4  

	
Severability.  If any one or more provisions of this Warrant, or the application thereof, shall for any reason and to any extent be invalid or unenforceable, the remainder of this Warrant and the application of such provisions to other persons or circumstances shall be interpreted so as best to reasonably effect the intent of the parties hereto.  The parties further agree to replace any such void or unenforceable provisions of this Warrant with valid and enforceable provisions which will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provisions.

	
7.5  

	
Amendment and Waivers.  This Warrant may be amended upon the written consent of the Company and the Holder.  The waiver by a party of any breach hereof for default in payment of any amount due hereunder or default in the performance hereof shall not be deemed to constitute a waiver of any other default or any succeeding breach or default.

 

  

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7.6  

	
Attorneys’ Fees.  Should suit be brought to enforce or interpret any part of this Warrant, the prevailing party shall be entitled to recover, as an element of the costs of suit and not as damages, reasonable attorneys’ fees to be fixed by the court (including, without limitation, costs, expenses and fees on any appeal).  The prevailing party shall be the party entitled to recover its costs of suit, regardless of whether such suit proceeds to final judgment.  A party not entitled to recover its costs shall not be entitled to recover attorneys’ fees.  No sum for attorneys’ fees shall be counted in calculating the amount of a judgment for purposes of determining if a party is entitled to recover costs or attorneys’ fees.

	
7.7  

	
Notices.  Whenever any party hereto desires or is required to give any notice, demand, or request with respect to this Warrant, each such communication shall be in writing and shall be effective only if it is delivered by personal service or mailed, United States certified mail, postage prepaid, return receipt requested, addressed to such party at its address stated at the beginning of this Warrant or to such other address as such party may designate by written notice delivered hereunder.  Such communication shall be effective when it is received by the addressee thereof; but if sent by certified mail in the manner set forth above, the communication shall be effective five (5) business days after being deposited in the United States mail with proper postage affixed.  Any party may change its address for such communications by giving notice thereof to the other party in conformity with this Section.

	
7.8  

	
Time.  Time is of the essence of this Warrant.

	
7.9  

	
Construction of Agreement.  This Warrant has been negotiated by the respective parties hereto and their attorneys and the language hereof shall not be construed for or against any party.

	
7.10  

	
No Endorsement.  Holder understands that no federal or state securities administrator has made any finding or determination relating to the fairness of an investment in the Company or purchase of the Common Stock hereunder and that no federal or state securities administrator has recommended or endorsed the offering of securities by the Company hereunder.

	
7.11  

	
Pronouns.  All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person, persons, entity or entities may require.

	
7.12  

	
Further Assurances.  Each party agrees to cooperate fully with the other parties and to execute such further instruments, documents and agreements and to give such further written assurances, as may be reasonably requested by any other party to better evidence and reflect the transactions described herein and contemplated hereby, and to carry into effect the intents and purposes of this Warrant.

Zolon Corporation

 

             

/s/ Dhru Desai                                    

By: Dhru  Desai                                  

Its: Chairman and CFO                     

  

5ex10-1.htm

Exhibit 10.1

 

SHARE EXCHANGE AGREEMENT

 

 

THIS SHARE EXCHANGE AGREEMENT (this “Agreement”) made and entered into as of this 20th day of May 2010, by and among Zolon Corporation, a Florida corporation (“Seller”), and, StoneGate Holdings, Inc., a Maryland corporation together with its shareholders who have joined this Agreement (collectively, the “Purchaser”) and is made in light of the fact that Seller owns or has authority to issue and desires to sell, and Purchaser desires to purchase, those shares identified below in accordance with and subject to the terms and provisions of this Agreement, which fact is a material part hereof.

 

NOW THEREFORE, for and in consideration of good and valuable consideration, in hand paid, including, but not limited to the mutual promises set forth herein, the receipt and sufficiency of which is acknowledged by each party hereto, and intending to be legally bound, the Seller and Purchaser agree as follows:

 

	
1.

	
Exchange of shares. On or effective as of May 24, 2010 (which shall be deemed the “Closing” for purposes herein, Seller shall issue and exchange with Purchaser Thirty-Two Million (32,000,000) authorized, and outstanding shares (“Shares”) of common stock of Seller, and Purchaser shall issue and exchange with Seller, the following shares and consideration, the receipt and sufficiency of which is accepted by Seller to be delivered at closing:

 

 a.           VSG Acquisition Corp. Shares. Purchaser shall deliver One Thousand (1,000) authorized shares (the “VSG Shares”) of VSG Acquisition Corp., a Maryland corporation, (“VSG”), being that number of Purchaser Shares determined to equal One Hundred (100%) Percent of the outstanding securities (units or others) of VSG including all classes of securities calculated on an “as converted” basis; and

 b.           Resource Mine Acquisition Corp. Shares. Purchaser shall deliver One Thousand (1,000) authorized shares (the “RMI Shares”) of Resource Mine Acquisition Corp., a Maryland corporation, (“RMI”), being that number of Purchaser Shares determined to equal One Hundred (100%) Percent of the outstanding securities (units or others) of RMI including all classes of securities calculated on an “as converted” basis, and;

 c.           ISS Acquisition Corp. Shares. Purchaser shall deliver One Thousand (1,000) authorized shares (the “ISS Shares”) of ISS Acquisition Corp., a Maryland corporation, (“ISS”), being that number of Purchaser Shares determined to equal One Hundred (100%) Percent of the outstanding securities (units or others) of ISS including all classes of securities calculated on an “as converted” basis.

 d.           Allocation of Shares. For purposes of this Agreement, the parties agree that Twenty-Five Million (25,000,000) Shares shall be allocated to the purchase of VSG based upon the reasonable understanding of the parties that VSG projects for its current fiscal year, revenue of approximately $20,000,000 and EBITDA of approximately $2,000,000 (but no representation or warranty of sufficiency shall be implied or imputed as to such projections); Two Million (2,000,000) Shares shall be allocated to the purchase of RMI based upon the reasonable understanding of the parties that RMI projects for its current fiscal year, revenue of approximately $4,000,000 and EBITDA of approximately $200,000 (but no representation or warranty of sufficiency shall be implied or imputed as to such projections); and Five Million (5,000,000) Shares shall be allocated to the purchase of ISS based upon the reasonable understanding of the parties that ISS projects for its current fiscal year, revenue of approximately $8,500,000 and EBITDA of approximately $500,000 (but no representation or warranty of sufficiency shall be implied or imputed as to such projections).

e.             Exchange Ratios. For each of the VSG Shares, Purchaser shall receive 25,000 Shares. For each of the RMI Shares, Purchaser shall receive 2,000 Shares, and for each of the ISS Shares, Purchaser shall receive 5,000 Shares. These amounts were determined based on the allocation of value assumed for purposes of this Agreement and the total number of VSG Shares, RMI Shares and ISS Shares to complete the contemplated transaction.

 

  

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2.             Closing Documents. At the Closing, the Seller shall deliver its stock certificates evidencing the Shares in the name of the Purchaser or in such other name of nominees of Purchaser as entitled to receive same in conformity with the respective ownership of Purchaser, which together with Seller’s irrevocable letter of direction and stock powers executed under “medallion” guarantee as will allow immediate and irrevocable transfer to Purchaser or Purchaser’s nominees. At the Closing, the Purchaser shall deliver VSG Shares, RMI Shares and ISS Shares each and all in the name of the Seller or in such other name, which together with its irrevocable letter of direction and stock powers executed under “medallion” guarantee as will allow immediate and irrevocable transfer to Seller together with all records, documents and files of the Purchaser as to VSG, RMI and ISS, including, without limitation, all minute books, stock records and internal accounting records, including the approval of its managers of this Agreement and the transactions contemplated by this Agreement together with the resignation of its mangers in favor of managers chosen by Seller and such other documents as reasonably may be required of the Purchaser’s shareholders to consummate the transaction under this Agreement.

 

3.             Tax-Free Exchange. The parties intend that this transaction qualify as Reorganization within the meaning of section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended.

 

4.             Limited Distribution. It is anticipated that the Shares shall be distributed to the shareholders of the Purchaser in a limited distribution, not involving any public distribution or underwriting in conformity with the exceptions for private sales under Regulation 4(2) of the Securities Act of 1933. Recipients of the Shares are sophisticated and/or accredited investors who comprise investors that may receive stock in this manner.

 

5.             Assets Intended. Purchaser and Seller agree that the assets being conveyed under this Agreement shall be intended to include the following:

 

a.           Ownership of Cornerstone Information Systems, inc., a New Jersey corporation which operates an IT processes provider and also does business as Vision Systems Group.

b.           Ownership of Orionsoft, Inc.

c.           Ownership of Resource Mine, Inc. or the right to acquire same.

d.           Ownership of Integrated Software Solutions, Inc. and Cynosure Softtech or the right to acquire same.

 

  

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6.              Not an Arm’s-Length Transaction. The parties acknowledge and agree that the transaction contemplated herein is not the result of a negotiation or due diligence and the parties are not “arm’s length.” Therefore, nothing in this Agreement nor the Closing may be relied upon as evidence of terms, valuations or guarantees of performance or financing obligations between the parties and no other party shall be permitted to rely upon the actions or decisions and impute conclusions as to facts about the parties as a result of the consummation of this transaction.

 

7.             Additional Terms. Nothing in this agreement may require or restrict the future investment, share issuance or other terms or arrangements between Seller and Purchaser.

 

8.              Representations and Warranties. Each of Seller and Purchaser represents and warrants to the other that (i) the Shares and Purchaser Shares to be exchanged as provided herein are authorized to be issued and, when issued, will be fully-paid and non-assessable; (ii) Neither Seller nor Purchaser has knowledge of any adverse claims affecting such shares, there are no notations of any adverse claims marked on the certificates for such Shares and Purchaser Shares, and, Seller and Purchaser will acquire their respective Shares and Purchaser Shares free and clear of any security interests, mortgage, adverse claims, liens, or encumbrances of any nature or description whatsoever, subject only to matters pertaining to the sale of securities generally including but not limited to the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, or any state statute, rule, or regulation relating to the sale of securities (collectively, “Securities Laws”), and (iii) Seller and Purchaser each has and will have full right, power, and authority to issue and sell, transfer, and deliver the Shares and Purchaser Shares to the other who further agrees to accept such Shares and Purchaser Shares subject to matters pertaining to the sale of securities generally including but not limited to the Securities Laws. None of the Shares and Purchaser Shares to be exchanged or delivered as provided herein will be subject to a valid registration statement, and each recipient of such shares hereby represents and warrants to the other that (i) such Shares and Purchaser Shares will be acquired for investment and not with a view to the sale or other distribution thereof; (ii) recipient of each of the Shares is an accredited investor, able, knowledgeable about such investments and willing to assume the risks of acquiring the Shares, (iii) recipient will accept the Shares subject to such legends as required by the various Securities Laws; (iv) each recipient of Shares will execute and deliver an investment letter in the form attached hereto as Exhibit A prior to issuance by Seller; and (v) Neither Seller nor Purchaser will not at any time sell, exchange, transfer, or otherwise dispose of the Shares under circumstances that would constitute a violation of the Securities Laws. Each of the warranties, representations, and covenants contained in this Agreement by any party thereto shall be continuous and shall survive the Closing.

 

9.             Miscellaneous. Each party shall have the right of specific performance and time is of the essence as to performance of each of the terms hereof. All notices, requests, consents, and other communications under this Agreement shall be in writing and shall be mailed by registered or certified mail, postage prepaid, or delivered personally to the address written above or to such other address of which the addressee shall have notified the sender in writing. Notices mailed in accordance with this section shall be deemed given when mailed. All covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of his, her or its respective heirs, personal representatives, successors, and assigns, whether so expressed or not. No party to this Agreement may, however, assign his rights hereunder or delegate his obligations hereunder to any other person or entity without the express prior written consent of the other parties hereto. The section headings contained in this agreement are inserted as a matter of convenience and shall not be considered in interpreting or construing this agreement. This agreement shall be construed in accordance with and governed by the laws of the State of Maryland. This agreement, including any exhibits hereto, constitutes and contains the entire agreement of Purchaser and Seller with respect to the Exchange and sale of the shares and supersedes any prior agreement by the parties, whether written or oral. The waiver of a breach of any term or condition of this agreement must be in writing signed by the party sought to be charged with such waiver, and such waiver shall not be deemed to constitute the waiver of any other breach of the same or of any other term or condition of this agreement. No modification of this agreement shall be valid unless in a written document signed by the parties hereto. This agreement may be executed concurrently in two or more counterparts, any one or more of which may be executed by facsimile or electronic images of signatures (which facsimile or pdf image signatures shall be agreed to be binding and valid) each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of the remaining provisions.

(Signatures on the following page, balance of this page is blank)

 

  

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IN WITNESS WHEREOF, the Seller and Purchaser have executed this agreement as of the day and year first written above.

 

SELLER:                                                                        PURCHASER: 

        

        Zolon Corporation                                                        StoneGate Holdings, Inc.

 

By: /s/  Dhru Desai                                                        By: /s/ B. Vandawale

 

 

Each of the undersigned shareholders hereby approves this Agreement and hereby represents and warrants that the undersigned has read the Agreement and understands its terms and conditions.

 

By:                                                                    By:                                                             

 

By:                                                                    By:                                                             

 

By:                                                                    By:                                                             

  

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EXHIBIT A INVESTMENT REPRESENTATION STATEMENT

 

 

PURCHASER:        ________________________

 

ISSUER:           Zolon Corporation (Referred to hereinbelow as the “Company”)

 

SECURITY:         Common Stock, par value $.001

 

QUANTITY:         _______________ Shares

 

In connection with the purchase of the above-listed Securities of the Company, I, the Purchaser represent to the Company the following:

 

(1) Investment. I am aware of the Company's business affairs and financial condition. I am purchasing the Securities for investment for my own account only and not with a view to, or for resale in connection with, any "distribution" thereof within the meaning of the Securities Act of 1933 (as Amended). These securities have not been registered under the Securities Act by reason of a specific exemption therefrom, which exemption depends on, among other things, the bona fide nature of the investment intent as expressed herein. In this connection I understand that, in view of the Securities and Exchange Commission ("SEC"), the statutory basis for such exemption may be unavailable if my representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities or for the period of one year or any other fixed period in the future.

(2) Restrictions on Transfer Under Securities Act. I further acknowledge and understand that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or unless an exemption from such registration is available. Moreover, I understand that the Company is under no obligation to register the Securities. In addition, I understand that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or unless the Company receives an opinion of counsel reasonably satisfactory to the Company that such registration is not required.

(3) Sales Under Rule 144. I am aware of the adoption of Rule 144 by the SEC promulgated under the Securities Act, which in substance permits limited public resale of securities acquired in a non-public offering subject to the satisfaction of certain conditions, including: (i) the availability of certain current public information about the Company, (ii) the resale being made through a broker in an unsolicited "broker's transaction" or in transactions directly with a " market maker," and (iv) the amount of securities sold during any three-month period not exceeding specified limitations (generally 1% of the total shares outstanding).

(4) Limitations on Rule 144. I further acknowledge and understand that the Company is not now, and at any time I wish to sell the Securities may not be, satisfying the public information requirement of Rule 144, and, in such case, I would be precluded from selling the Securities under Rule 144 even if the minimum holding period had been satisfied.

Investor:

 

                                                              

 

  

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