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Unassociated Document

    ESCROW
      AGREEMENT

    

    (For
      the Self-Underwritten Public Offering 

    of
      Pinpoint Recovery Solutions Corp.)

    

    THIS
      ESCROW AGREEMENT, dated as of January 17, 2008, is entered into by and between
      Pinpoint Recovery Solutions Corp., a Delaware corporation (the “Company”),
      and
      American Stock Transfer (the “Escrow
      Agent”).

    

    WITNESSETH:

    

    WHEREAS,
      pursuant to the terms of a Registration Statement on Form SB-2 filed by the
      Company with the Securities and Exchange Commission (the “Commission”)
      on
      October 26, 2007 (File No. 333-146970), as the same may be amended from time
      to
      time before and/or after declaration by the Commission of the effectiveness
      thereof (the “Registration
      Statement”),
      the
      Company desires to offer for sale to the public on a self-underwritten basis
      (the “Offering”)
      a
      minimum of 333,334 shares (“Minimum”)
      and a
      maximum of 1,666,667 shares (“Maximum”)
      of its
      common stock, par value $0.001 per share (the “Shares”),
      at a
      price per share of $3.00 (the “Purchase
      Price”),
      or an
      aggregate of $1 million if the Minimum are sold (“Minimum
      Amount”)
      or an
      aggregate of $5 million if the Maximum are sold (“Maximum
      Amount”);

    

    WHEREAS,
      the Offering shall commence after declaration by the Commission of the
      effectiveness of the Registration Statement and shall terminate on or before
      5:00 p.m. New York time on the 90th
      day
      thereafter, unless extended by the Company for up to an additional 90-day period
      (the “Termination
      Date”),
      provided that the Minimum has been accepted prior to the Termination Date (if
      and as so extended, the “Final
      Termination Date”);
      and

    

    WHEREAS,
      the Company desires to establish an escrow account with Escrow Agent into which
      payments of the Purchase Price of up to one hundred twenty (120) persons
      subscribing for Shares in the Offering shall be deposited, by wire transfer,
      check or other instruments for the payment of money made payable to the order
      of
“American
      Stock Transfer, as Escrow Agent for Pinpoint Recovery Solutions
      Corp.”
and
      Escrow Agent is willing to accept the same for the payment of money in
      accordance with the terms herein set forth; 

    

    NOW,
      THEREFORE, IT IS AGREED as follows:

    

    1. Delivery
      Of Escrow Funds.
      

    

    (a)(i)
      Subscribers for the purchase of Shares (“Subscribers”)
      shall
      be directed pursuant to the Registration Statement to deliver to the Escrow
      Agent checks received from Subscribers made payable to the order of
“American
      Stock Transfer, as Escrow Agent for Pinpoint Recovery Solutions
      Corp.”
The
      Escrow Agent may also receive money from Subscribers by means of wire transfer,
      whereby money shall be wired to “American
      Stock Transfer, as Escrow Agent for Pinpoint Recovery Solutions
      Corp.,”
in
      accordance with wire transfer instructions provided by the Escrow Agent to
      the
      Subscriber upon request by the Subscriber. 

    

    (ii)
      The
      Company shall provide to the Escrow Agent the name, address and social security
      number or taxpayer identification number corresponding to each individual or
      entity making payment.

     

    (iii) All
      such
      funds, whether received by check, wire or otherwise, shall be deposited into
      a
      non interest-bearing account at American Stock Transfer entitled “American
      Stock Transfer, as Escrow Agent for Pinpoint Recovery Solutions
      Corp.”
(the
      “Escrow
      Account”).
      Subscriptions shall be accepted by the Escrow Agent until 5:00 p.m. (Eastern
      time) on the Termination Date (if not extended) or Final Termination Date (if
      extended).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) The
      collected funds deposited into the Escrow Account are referred to as the
“Escrow
      Funds.”

    

    (c) The
      Escrow Agent shall have no duty or responsibility to enforce the collection
      or
      demand payment of any funds deposited into the Escrow Account. If, for any
      reason, any check deposited into the Escrow Account shall be returned unpaid
      to
      the Escrow Agent, the sole duty of the Escrow Agent shall be to return the
      check
      to Subscriber and advise the Company promptly thereof.

    
2. Release
      of Escrow Funds.
      The
      Escrow Funds shall be paid by the Escrow Agent in accordance with the
      following:

    

    (a) Withdrawal
      of the Offering.
      If the
      Company advises the Escrow Agent in writing that the Offering has been
      withdrawn, the Escrow Agent shall return the funds paid by each Subscriber
      to
      said Subscriber without interest or deduction, penalty or expense; 

    

    (b) Extension
      of the Offering.
      If
      prior to 5:00 P.M. (Eastern time) on the Termination Date, the Escrow Agent
      receives written notification, in form of Exhibit
      A
      attached
      hereto, signed by the Company stating that the Termination Date has been
      extended for up to 90 additional days, or any date prior to the Final
      Termination Date, the date shall be so extended. If the Termination Date or
      the
      date stated in Exhibit
      A
      is not a
      banking day, then the Termination Date or the Final Termination Date, as
      applicable, shall be the following banking day. A “banking day” is any day other
      than a Saturday, Sunday or a day that the Bank is not legally obligated to
      be
      open in New York City, New York.

    

    (c) Upon
      Receipt of Minimum Amount.
      If,
      prior to the Termination Date or the Final Termination Date (as applicable),
      the
      Escrow Agent has received Escrow Funds by 5:00 p.m. (Eastern time) at least
      equal to the Minimum Amount, the Escrow Agent shall, upon receipt
      of:

    

    (i)
      written instructions from the Company, in the form of Exhibit B attached hereto
       authorizing
      and directing the payment of the Escrow Funds and the issuance to the
      Subscribers of  certificates
      representing the common stock of the Company, and

    

    (ii)
      an
      opinion of Company’s legal counsel (a) that all conditions for the release of
      the  Escrow
      Funds have been met and that the Escrow Agent is therefore authorized to release
      the  funds,
      and (b) as to the fully paid, validly issued and non-assessable nature of the
      Shares as well  as
      to
      their having been issued pursuant to an effective registration statement, and
      such other  customary
      language as the Escrow Agent may reasonably request;

    

    pay
      the
      Escrow Funds as directed by the Company, such payment or payments to be made
      by
      wire transfer or bank check, and issue such certificates to the
      Subscribers.

    

    (d)   (i) If
      by
      5:00 P.M. (Eastern time) on a date which is no later than seven (7) banking
      days
      after the Termination Date (if not extended) or Final Termination Date (if
      extended), the Escrow Agent has not received written instructions from the
      Company regarding the disbursement of the Escrow Funds that have been received
      in an amount equal to at least the Minimum Amount, the Escrow Agent shall
      release the Escrow Funds to the Company; or

    

    (ii) if
      by
      5:00 P.M. (Eastern time) on a date which is no later than seven (7) banking
      days
      after the Termination Date (if not extended) or Final Termination Date (if
      extended), the Escrow Agent has not received Escrow Funds in an amount at least
      equal to the Minimum Amount, then the Escrow Agent shall promptly return the
      Escrow Funds to the Subscribers and so notify the Company in writing;

    

    it
      being
      understood, in either case, that the seven (7) banking days are being provided
      to accommodate the clearing of Escrow Funds which have been properly deposited
      into the Escrow Account prior to the Termination Date (if not extended) or
      Final
      Termination Date (if extended). The instructions to disburse Escrow Funds as
      Exhibit
      B
      may be
      delivered anytime within 7 banking days after the Termination Date (if not
      extended) or Final Termination Date (if extended), and Escrow Funds shall not
      be
      sent back to Subscribers by the Escrow Agent until after such date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) The
      Escrow Agent shall not be required to pay any uncollected funds or any funds
      that are not available for withdrawal.

    

    3. Acceptance
      by Escrow Agent.
      The
      Escrow Agent hereby accepts and agrees to perform its obligations hereunder,
      provided that:

    

    (a) The
      Escrow Agent may act in reliance upon any signature believed by it to be
      genuine, and may assume that any person who has been designated by the Company
      to give any written instructions, notice or receipt, or make any statements
      in
      connection with the provisions hereof has been duly authorized to do so. Escrow
      Agent shall have no duty to make inquiry as to the genuineness, accuracy or
      validity of any statements or instructions or any signatures on statements
      or
      instructions. The names and true signatures of each individual authorized to
      act
      singly on behalf of the Company are stated in Schedule
      A,
      which
      is attached hereto and made a part hereof. The Company may each remove or add
      one or more of its authorized signers stated on Schedule A by notifying the
      Escrow Agent in accordance with this Agreement of such change, which notice
      shall include the true signature for any new authorized
      signatories.

    

    (b) The
      Escrow Agent may act relative hereto in reliance upon advice of counsel in
      reference to any matter connected herewith. The Escrow Agent shall not be liable
      for any mistake of fact or error of judgment or law, or for any acts or
      omissions of any kind, unless caused by its willful misconduct or gross
      negligence.

    

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

    

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

    

    (e) The
      Escrow Agent shall have no duty, responsibility or obligation to interpret
      or
      enforce the terms of any agreement other than Escrow Agent’s obligations
      hereunder, and the Escrow Agent shall not be required to make a request that
      any
      monies be delivered to the Escrow Account, it being agreed that the sole duties
      and responsibilities of the Escrow Agent shall be to the extent not prohibited
      by applicable law (i) to accept checks or other instruments for the payment
      of
      money and wire transfers delivered to the Escrow Agent for the Escrow Account
      and deposit said checks and wire transfers into the non-interest-bearing Escrow
      Account, and (ii) to disburse or refrain from disbursing the Escrow Funds as
      stated above, provided that the checks received by the Escrow Agent have been
      collected and are available for withdrawal.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

    6.
      Investment.
      All
      funds received by the Escrow Agent shall be invested only in non-interest
      bearing bank accounts at American Stock Transfer & Trust Co.

    

    7.
      Compensation.
      Escrow
      Agent shall be entitled, for the duties to be performed by it hereunder, to
      a
      fee of $5,000.00, which fee shall be paid by the Company upon the signing of
      this Agreement. Neither the modification, termination, cancellation or
      rescission of this Agreement nor the resignation or termination of the Escrow
      Agent shall affect the right of the Escrow Agent to retain the $5,000.00 fee.
      Should the number of Subscribers purchasing Shares pursuant to the Offering
      exceed one hundred twenty (120), the fee paid to Escrow agent shall be increased
      in proportion to the number of such subscribers in excess of 120.

    

    8. Notices.
      All
      notices, requests, demands and other communications required or permitted to
      be
      given hereunder shall be in writing and shall be deemed to have been duly given
      if sent by hand-delivery, by facsimile followed by first-class mail, by
      nationally recognized overnight courier service or by prepaid registered or
      certified mail, return receipt requested, to the addresses set forth
      below.

    

    If
      to the
      Company, to:

    4300
      W.
      Cypress Street

    Tampa,
      FL
      33607

    Attention:
      Kevin Cappock

    Fax:
      727-906-4971

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    With
      copies to:

    Jon
      Leslie, CFO

    43
      Greenacres Ave.

    Scarsdale,
      NY 10583

    Fax:
      914-723-6171

    and:

    Eaton
      & Van Winkle LLP

    3
      Park
      Avenue, 16th
      Floor

    New
      York,
      NY 10016

    Attention:
      Vince McGill

    Fax:
      212-779-9928

     

    If
      to the
      Escrow Agent, to:

    American
      Stock Transfer & Trust Co.

    59
      Maiden
      Lane, Plaza Level, 

    New
      York,
      New York 10038

    Attention:
      Henry Reinhold

    Fax:
      718-921-8550

    

    

    9. General

    

    (a) This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of New York applicable to agreements made and to be entirely
      performed within such State, without regard to choice of law
      principles.

    

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

    

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

    

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

    

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

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g) The
      parties hereto agree to accept a facsimile transmission copy of their respective
      actual signatures as evidence of their actual signatures to this Agreement
      and
      any amendment or modification of this Agreement; provided, that each party
      who
      produces a facsimile signature shall promptly after transmission by fax, provide
      an original copy of his or her signature in overnight mail to the address of
      the
      other party.

    

    *
      *
      *

    

    [The
      signatures hereto are set forth on the following page.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

    

    PINPOINT
      RECOVERY SOLUTIONS CORP.  

    

    

    By:
      _____________________________   

    Name:
       Kevin
      Cappock     

    Title:
       Chief
      Executive Officer     

    

     

    

    AMERICAN
      STOCK TRANSFER & TRUST CO.

    

    By:
      _________________________________

    Name:

    TitleFIRST AMENDMENT TO AGREEMENT FOR SHARE EXCHANGE

AGREEMENT FOR SHARE EXCHANGE

This AGREEMENT FOR SHARE EXCHANGE (this “Agreement”) is entered into on October __, 2007, by and between Fit Sum Group Limited, Inc., a British Virgin Islands corporation (“FIT SUM”), and Green Dragon Wood Products Co. Limited, a Hong Kong company (“GREEN DRAGON HK”) and Lee Kwok Leung and Mei Ling Law, shareholders of GREEN DRAGON HK (the “Shareholders”).  

RECITALS

FIT SUM desires to complete a share exchange transaction pursuant to which FIT SUM shall acquire certain shares of the common stock of GREEN DRAGON HK belonging to the Shareholders in exchange for a certain number of shares of the voting stock of FIT SUM as set forth below; and 

The Board of Directors of FIT SUM and the Board of Directors of GREEN DRAGON HK have each approved the proposed transaction, contingent upon satisfaction prior to closing of all of the terms and conditions of this Agreement.

AGREEMENT

THE PARTIES desire to make certain representations, warranties and agreements in connection with completion of the proposed share exchange transaction.

NOW, THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, and the covenants, conditions, representations and warranties hereinafter set forth, the parties hereby agree as follows:

ARTICLE I 

THE EXCHANGE

1.1      The Exchange. At the Closing (as hereinafter defined), FIT SUM shall acquire from the Shareholders a total of 37,500 shares (the allocation of which is specifically set forth on the signature page hereto) in GREEN DRAGON HK.  Consideration to be paid by FIT SUM shall be a total of 37,500 shares of its common stock (the “Exchange Shares”) allocated in the same proportion of the Shareholders’ contribution. The Exchange shall take place upon the terms and conditions provided for in this Agreement and in accordance with applicable law.  For Federal income tax purposes, it is intended that the Exchange shall constitute a tax-free reorganization within the meaning of Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the “Code”). 

1.2    Closing and Effective Time. Subject to the provisions of this Agreement, the parties shall hold a closing (the "Closing") on (i) the first business day on which the last of the conditions set forth in Article V to be fulfilled prior to the Closing is fulfilled or waived or (ii) at such time and place as the parties hereto may agree. Such date shall be the date of Exchange (the "Effective Time"). 

 ARTICLE II

REPRESENTATIONS AND WARRANTIES

2.1    Representations and Warranties of FIT SUM. FIT SUM represents and warrants to GREEN DRAGON HK as follows:

(a)       Organization, Standing and Power. FIT SUM is a corporation duly organized, validly existing and in good standing under the laws of the British Virgin Islands, has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted, and is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary.

 

(b)       Capital Structure. As of the date of execution of this Agreement, the authorized capital stock of FIT SUM consists of ______________
 shares of Common Stock with a par value of $0.001 per share. The Exchange Shares to be issued pursuant to this Agreement shall be, when issued pursuant to the terms of the resolution of the Board of Directors of FIT SUM approving such issuance, validly issued, fully paid and nonassessable and not subject to preemptive rights. FIT SUM has no other options, warrants, calls, agreements or other rights to purchase or otherwise acquire from FIT SUM at any time, or upon the happening of any stated event, any shares of the capital stock of FIT SUM whether or not presently issued or outstanding except as set forth herein.  After the execution of this Agreement and after the issuance of the Exchange Shares, FIT SUM will enter into Subscription Agreements with certain individuals whereby additional FIT SUM shares will be purchased. After the execution of this Agreement, the issuance of the Exchange Shares and the issuance of the shares related to the Subscription Agreements, FIT SUM will have a total amount of 1,037,500 shares outstanding.

(c)    Certificate of Incorporation, Bylaws, and Minute Books. The copies of the Articles of Incorporation and of the Bylaws of FIT SUM which have been delivered to GREEN DRAGON HK are true, correct and complete copies thereof. The minute book of FIT SUM, which has been made available for inspection, contains accurate minutes of all meetings and accurate consents in lieu of meetings of the Board of Directors (and any committee thereof) and of the shareholders of FIT SUM since the date of incorporation and accurately reflects all transactions referred to in such minutes and consents in lieu of meetings.

(d)    Authority. FIT SUM has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by the Board of Directors of FIT SUM. No other corporate or shareholder proceedings on the part of FIT SUM are necessary to authorize the Exchange, or the other transactions contemplated hereby.

(e)    Conflict with Other Agreements; Approvals. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not result in any violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or the loss of a material benefit under, or the creation of a lien, pledge, security interest or other encumbrance on assets (any such conflict, violation, default, right of termination, cancellation or acceleration, loss or creation, a "violation") pursuant to any provision of the Articles of Incorporation or Bylaws or any organizational document of FIT SUM or, result in any violation of any loan or credit agreement, note, mortgage, indenture, lease, benefit plan or other agreement, obligation, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to FIT SUM which violation would have a material adverse effect on FIT SUM taken as a whole. No consent, approval, order or authorization of, or registration, declaration or filing with, any court, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign (a "Governmental Entity") is required by or with respect to FIT SUM in connection with the execution and delivery of this Agreement by FIT SUM or the consummation by FIT SUM of the transactions contemplated hereby.

(f)    Books and Records. FIT SUM has made and will make available for inspection by GREEN DRAGON HK upon reasonable request all the books of FIT SUM relating to the business of FIT SUM. Such books of FIT SUM have been maintained in the ordinary course of business. All documents furnished or caused to be furnished to GREEN DRAGON HK by FIT SUM are true and correct copies, and there are no amendments or modifications thereto except as set forth in such documents.

(g)    Compliance with Laws. FIT SUM is and has been in compliance in all material respects with all laws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any Governmental Entity applicable to it, its properties or the operation of its businesses.

(h)    Dilutive Securities. FIT SUM has no dilutive securities of any kind, including but not limited to warrants, options or employee stock options outstanding.

(i)    Litigation. There is no suit, action or proceeding pending, or, to the knowledge of FIT SUM, threatened against or affecting FIT SUM which is reasonably likely to have a material adverse effect on FIT SUM, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against FIT SUM having, or which, insofar as reasonably can be foreseen, in the future could have, any such effect.

(j)    Tax Returns. FIT SUM has duly filed or will file prior to Closing any tax reports and returns required to be filed by it and has fully paid all taxes and other charges claimed to be due from it by any federal, state or local taxing authorities. There are not now any pending questions relating to or claims asserted for, taxes or assessments asserted upon FIT SUM.

2.2    Representations and Warranties of GREEN DRAGON HK. GREEN DRAGON HK represents and warrants to FIT SUM as follows:

(a)    Organization, Standing and Power. GREEN DRAGON HK is a corporation duly organized, validly existing and in good standing under the laws of Hong Kong; each company has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted, and is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary except for any such failure, which when taken together with all other failures, is not likely to have a material adverse effect on the business of the relevant Acquirer taken as a whole. For purpose of this Section 2.2, “material adverse effect” shall mean, with respect to each Acquirer, the result of one or more events, charges or effects which, individually or in the aggregate, would have a material adverse effect or impact on the business, assets, results of operations, intellectual property rights, prospects or financial condition of such party, taken as a whole, or is reasonably likely to delay or prevent the consummation of the transactions contemplated hereby.

(b)    Capital Structure. There are no options, warrants, calls, agreements or other rights to purchase or otherwise acquire from GREEN DRAGON HK at any time, or upon the happening of any stated event, any share of the capital stock of GREEN DRAGON HK.

(c)    Certificate of Incorporation, Bylaws and Minute Books. Copies of the Certificate of Incorporation and of the other corporate documents of GREEN DRAGON HK which will be delivered to FIT SUM are true, correct and complete copies thereof. The minute books of GREEN DRAGON HK which will be made available for inspection contain accurate minutes of all meetings and accurate consents in lieu of meetings of the Board of Directors (and any committee thereof) and of the shareholders of GREEN DRAGON HK since the date of incorporation and accurately reflect all transactions referred to in such minutes and consents in lieu of meetings.

(d)    Authority. GREEN DRAGON HK has all requisite power to enter into this Agreement and, subject to approval of the proposed transaction by its shareholders, has the requisite power and authority to consummate the transactions contemplated hereby. Except as specified herein, no other corporate or shareholder proceedings on the part of GREEN DRAGON HK are necessary to authorize the Exchange and the other transactions contemplated hereby.

 

(e)    Conflict with Agreements; Approvals. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, conflict with, or result in any violation of any provision of the Certificate of Incorporation or Bylaws of GREEN DRAGON HK or of any loan or credit agreement, note, mortgage, indenture, lease, benefit plan or other agreement, obligation, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to GREEN DRAGON HK or its properties or assets except for any such conflict or violation, which when taken together with all other conflict or 

violation, is not likely to have a material adverse effect on the business of the relevant Acquirer taken as a whole. No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required by or with respect to GREEN DRAGON HK in connection with the execution and delivery of this Agreement by GREEN DRAGON HK, or the consummation by GREEN DRAGON HK of the transactions contemplated hereby.

(f)    Books and Records. GREEN DRAGON HK has made and will make available for inspection by FIT SUM upon reasonable request all the books of account, relating to the business of GREEN DRAGON HK. Such books of account have been maintained in the ordinary course of business. All documents furnished or caused to be furnished to FIT SUM by GREEN DRAGON HK are true and correct copies, and there are no amendments or modifications thereto except as set forth in such documents.

(g)    Compliance with Laws. GREEN DRAGON HK is and has been in compliance in all material respects with all laws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any Governmental Entity applicable to it, its properties or the operation of its businesses.

(h)    Liabilities and Obligations. GREEN DRAGON HK has no material liabilities or obligations (absolute, accrued, contingent or otherwise) except (i) liabilities that are reflected and reserved against on the GREEN DRAGON HK financial statements delivered to FIT SUM that have not been paid or discharged since the date thereof and (ii) liabilities incurred since the date of such financial statements in the ordinary course of business consistent with past practice and in accordance with this Agreement.

(i)    Litigation. There is no suit, action or proceeding pending, or, to the knowledge of GREEN DRAGON HK threatened against or affecting GREEN DRAGON HK, which is reasonably likely to have a material adverse effect on GREEN DRAGON HK, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against GREEN DRAGON HK having, or which, insofar as reasonably can be foreseen, in the future could have, any such effect.

(j)    Taxes. GREEN DRAGON HK has filed or will file within the time prescribed by law (including extension of time approved by the appropriate taxing authority) all tax returns and reports required to be filed with all other jurisdictions where such filing is required by law; and GREEN DRAGON HK has paid, or made adequate provision for the payment of all taxes, interest, penalties, assessments or deficiencies due and payable on, and with respect to such periods. GREEN DRAGON HK knows of (i) no other tax returns or reports which are required to be filed which have not been so filed and (ii) no unpaid assessment for additional taxes for any fiscal period or any basis therefore.

(k)    Licenses, Permits; Intellectual Property. GREEN DRAGON HK owns or possesses in the operation of its business all material authorizations which are necessary for it to conduct its business as now conducted. Neither the execution nor delivery of this Agreement nor the consummation of the transactions contemplated hereby will require 

any notice or consent under or have any material adverse effect upon any such authorizations.

 2.3    Representations and Warranties of Shareholders. By execution of this Agreement, Shareholders represent and warrants to FIT SUM as follows:

(a)    Shares Free and Clear. The shares of GREEN DRAGON HK which Shareholders own are free and clear of any liens, claims, options, charges or encumbrances of any nature.

(b)    Unqualified Right to Transfer Shares. Shareholders have the unqualified right to sell, assign, and deliver the shares of GREEN DRAGON HK and, upon consummation of the transactions contemplated by this Agreement, FIT SUM will acquire good and valid title to such shares, free and clear of all liens, claims, options, charges, and encumbrances of whatsoever nature.

(c)    Agreement and Transaction Duly Authorized. Shareholders are authorized to execute and deliver this Agreement and to consummate the share exchange transaction described herein. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will constitute a violation or default under any term or provision of any contract, commitment, indenture, other agreement or restriction of any kind or character to which such Shareholders are a party or by which such Shareholders are bound.

(d)    Share Ownership. Shareholders are presently shareholders of GREEN DRAGON HK.

 

ARTICLE III

COVENANTS RELATING TO CONDUCT OF BUSINESS

RESERVED

ARTICLE IV

ADDITIONAL AGREEMENTS AND RELATED TRANSACTIONS

4.1    Restricted FIT SUM Shares. The Exchange Shares will not be registered under the Securities Act, but will be issued pursuant to applicable exemptions from such registration requirements for transactions not involving a public offering and/or for transactions which constitute “offshore transactions” as defined in Regulation S under the Securities Act of 1933. Accordingly, the Exchange Shares will constitute "restricted securities" for purposes of the Securities Act and the holders of Exchange Shares will not be able to transfer such shares except upon compliance with the registration requirements of the Securities Act or in reliance upon an available exemption therefrom. 

4.2    Access to Information. Upon reasonable notice, FIT SUM and GREEN DRAGON HK shall each afford to the officers, employees, accountants, counsel and other 

representatives of the other company, and with respect to GREEN DRAGON HK, the Acquired Entities, access to all their respective properties, books, contracts, commitments and records and, during such period, each of FIT SUM and GREEN DRAGON HK shall furnish promptly to the other (a) a copy of each report, schedule, registration statement and other document filed or received by it during such period pursuant to the requirements of Federal or state securities laws and (b) all other information concerning its business, properties and personnel as such other party may reasonably request. Unless otherwise required by law, the parties will hold any such information which is nonpublic in confidence until such time as such information otherwise becomes publicly available through no wrongful act of either party, and in the event of termination of this Agreement for any reason each party shall promptly return all nonpublic documents obtained from any other party, and any copies made of such documents, to such other party.

4.3 Legal Conditions to Exchange. Each of FIT SUM and GREEN DRAGON HK shall take all reasonable actions necessary to comply promptly with all legal requirements which may be imposed on itself with respect to the Exchange and will promptly cooperate with and furnish information to each other in connection with any such requirements imposed upon any of them or upon any of their related entities or subsidiaries in connection with the Exchange. Each party shall take all reasonable actions necessary to obtain (and will cooperate with each other in obtaining) any consent, authorization, order or approval of, or any exemption by, any Governmental Entity or other public or private third party, required to be obtained or made by FIT SUM or GREEN DRAGON HK or any of their related entities or subsidiaries in connection with the Exchange or the taking of any action contemplated thereby or by this Agreement.

ARTICLE V

CONDITIONS PRECEDENT

5.1    Conditions to Each Party's Obligation to Effect the Exchange. The respective obligations of each party to effect the Exchange shall be conditional upon the filing, occurring or obtainment of all authorizations, consents, orders or approvals of, or declarations or filings with, or expirations of waiting periods imposed by any governmental entity or by any applicable law, rule, or regulation governing the transactions contemplated hereby. GREEN DRAGON HK represents and warrant that it has obtained the appropriate required consents of the PRC government, if any

5.2    Conditions to Obligations of FIT SUM. The obligation of FIT SUM to effect the Exchange is subject to the satisfaction of the following conditions on or before the Closing Date unless waived by FIT SUM:

(a)    Representations and Warranties. The representations and warranties of GREEN DRAGON HK set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date) as of the Closing Date as though made on and as of the Closing Date, except as otherwise contemplated by this Agreement, and 

GREEN DRAGON HK shall complete all government and legal process to transfer the shares of common stock from the Shareholders to FIT SUM.

(b)    Performance of Obligations of GREEN DRAGON HK. GREEN DRAGON HK shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing, and FIT SUM shall have received a certificate signed on behalf of FIT SUM by the President to such effect.

(c)    Closing Documents. FIT SUM shall have received all closing documents as counsel for FIT SUM shall reasonably request.

(d)    Consents. GREEN DRAGON HK shall have obtained the consent or approval of each person whose consent or approval shall be required in connection with the transactions contemplated hereby under any loan or credit agreement, note, mortgage, indenture, lease or other agreement or instrument, except those for which failure to obtain such consents and approvals would not, in the reasonable opinion of FIT SUM, individually or in the aggregate, have a material adverse effect on GREEN DRAGON HK and of its subsidiaries and related entities taken as a whole upon the consummation of the transactions contemplated hereby. GREEN DRAGON HK shall also have received the approval of its shareholders in accordance with applicable law.

(e)    Due Diligence Review. FIT SUM shall have completed to its reasonable satisfaction a review of the business, operations, finances, assets and liabilities of GREEN DRAGON HK and shall not have determined that any of the representations or warranties of GREEN DRAGON HK or its shareholders contained herein are, as of the date hereof or the Closing, inaccurate in any material respect or that GREEN DRAGON HK or its shareholders is otherwise in violation of any of the provisions of this Agreement.

 

(f)    Pending Litigation. There shall not be any litigation or other proceeding pending or threatened to restrain or invalidate the transactions contemplated by this Agreement, which, in the sole reasonable judgment of FIT SUM, made in good faith, would make the consummation of the Exchange imprudent. In addition, there shall not be any other litigation or other proceeding pending or threatened against GREEN DRAGON HK, the consequences of which, in the judgment of FIT SUM, could be materially adverse to GREEN DRAGON HK.

5.3    Conditions to Obligations of GREEN DRAGON HK. The obligations of GREEN DRAGON HK to effect the Exchange is subject to the satisfaction of the following conditions unless waived by GREEN DRAGON HK:

(a)    Representations and Warranties. The representations and warranties of FIT SUM set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and (except to the extent such representations speak as of an earlier date) as of the Closing Date as though made on and as of the Closing Date, except as 

otherwise contemplated by this Agreement, GREEN DRAGON HK shall have received a certificate signed on behalf of FIT SUM by the President to such effect.

(b)    Performance of Obligations of FIT SUM. FIT SUM shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing Date, and FIT SUM shall have received a certificate signed on behalf of FIT SUM by the President to such effect.

 

(c)    Closing Documents. GREEN DRAGON HK shall have received all closing documents as counsel for GREEN DRAGON HK shall reasonably request.

(d)    Consents. FIT SUM shall have obtained the consent or approval of each person whose consent or approval shall be required in connection with the transactions contemplated hereby.

(e)    Due Diligence Review. GREEN DRAGON HK shall have completed to its reasonable satisfaction a review of the business, operations, finances, assets and liabilities of FIT SUM and shall not have determined that any of the representations or warranties of FIT SUM contained herein are, as of the date hereof or the Closing Date, inaccurate in any material respect or that FIT SUM is otherwise in violation of any of the provisions of this Agreement.

(f)    Pending Litigation. There shall not be any litigation or other proceeding pending or threatened to restrain or invalidate the transactions contemplated by this Agreement, which, in the sole reasonable judgment of GREEN DRAGON HK, made in good faith, would make the consummation of the Exchange imprudent. In addition, there shall not be any other litigation or other proceeding pending or threatened against FIT SUM the consequences of which, in the judgment of GREEN DRAGON HK, could be materially adverse to FIT SUM.

ARTICLE VI

TERMINATION AND AMENDMENT

6.1    Termination. This Agreement may be terminated at any time prior to the Effective Time:

(a)    by mutual consent of FIT SUM and GREEN DRAGON HK;

 

(b)    by either FIT SUM or GREEN DRAGON HK if there has been a material breach of any representation, warranty, covenant or agreement on the part of FIT SUM or GREEN DRAGON HK, as the case may be set forth in this Agreement which breach has not been cured within five (5) business days following receipt by the breaching party of notice of such breach, or if any permanent injunction or other order of a court or other competent authority preventing the consummation of the Exchange shall have become final and non-appealable.

6.2    Effect of Termination. In the event of termination of this Agreement by either FIT SUM or GREEN DRAGON HK as provided in Section 6.1, this Agreement shall forthwith become void and there shall be no liability or obligation on the part of any party hereto. In such event, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses.

6.3    Amendment. This Agreement may be amended by mutual agreement of FIT SUM and GREEN DRAGON HK.   Any such amendment must be by an instrument in writing signed on behalf of each of the parties hereto.

6.4    Extension; Waiver. At any time prior to the Effective Time, the parties hereto, by action taken or authorized by their respective Board of Directors, may, to the extent legally allowed, (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in a written instrument signed on behalf of such party.

.ARTICLE VII

GENERAL PROVISIONS

7.1    Survival of Representations, Warranties and Agreements. All of the representations, warranties and agreements in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Effective Time for as long as the applicable status of limitation shall remain open.

7.2    Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, telecopied (which is confirmed) or mailed by registered or certified mail (return receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

(a)  If to FIT SUM:

____________________________

____________________________

 

____________________________

____________________________

(b)  If to GREEN DRAGON HK:

 

____________________________

____________________________

 

____________________________

____________________________

7.3    Interpretation. When a reference is made in this Agreement to Sections, such reference shall be to a Section of this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words "include", "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation". The phrase "made available" in this Agreement shall mean that the information referred to has been made available if requested by the party to whom such information is to be made available.

7.4    Counterparts. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

7.5    Entire Agreement; No Third Party Beneficiaries; Rights of Ownership. This Agreement (including the documents and the instruments referred to herein) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, and is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.

7.6    Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Florida without regard to principles of conflicts of law. Each party hereby irrevocably submits to the jurisdiction of any Florida state court or any federal court in the State of Florida in respect of any suit, action or proceeding arising out of or relating to this Agreement, and irrevocably accept for themselves and in respect of their property, generally and unconditionally, the jurisdiction of the aforesaid courts.

7.7    No Remedy in Certain Circumstances. Each party agrees that, should any court or other competent authority hold any provision of this Agreement or part hereof or thereof to be null, void or unenforceable, or order any party to take any action inconsistent herewith or not to take any action required herein, the other party shall not be entitled to specific performance of such provision or part hereof or thereof or to any other remedy, including but not limited to money damages, for breach hereof or thereof or of any other provision of this Agreement or part hereof or thereof as a result of such holding or order.

 

7.8    Publicity. Except as otherwise required by law or the rules of the SEC, so long as this Agreement is in effect, no party shall issue or cause the publication of any press release or other public announcement with respect to the transactions contemplated by this Agreement without the written consent of the other party, which consent shall not be unreasonably withheld.

7.9    Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns.

IN WITNESS WHEROF, this Agreement has been signed by the parties set forth below as of the date set forth above.

		
	 

	 
	FIT SUM GROUP LIMITED

____________________________

	 

	Lee Kwok Leung

	 

	

GREEN DRAGON WOOD PRODUCTS CO. LIMITED

	 
	

____________________________

	 

	Lee Kwok Leung

	 

	

Shareholders of GREEN DRAGON WOOD PRODUCTS CO. LIMITED

	 
	

____________________________

	 

	Lee Kwok Leung

	 

	Amount of shares exchanged: 30,000

____________________________

	 
	Mei Ling Law

Amount of shares exchanged: 7,500

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