Document:

Unassociated Document

    Exhibit
10.6

     

    INDEBTEDNESS
CONVERSION AGREEMENT

     

    This Indebtedness Conversion Agreement
(this “Agreement”) is entered into and dated as of September 28, 2010 (the
“Closing Date”) by and among New Oriental Energy & Chemical Corp., a
Delaware corporation, with headquarters located at Xicheng Industrial Zone of
Luoshan, Xinyang Henan Province, The People’s Republic of China (the “Company”)
and Yang Hongtao (the “Holder”), with reference to the following:

     

    WHEREAS, the Holder is a stockholder of
the Company;

     

    WHEREAS, from time to time until August
2010 the Holder has
advanced money to the Company that was used to fund the construction of the
Company’s methanol production facility (the “Loans”);

     

    WHEREAS, such Loans were recorded by
the Company as a related party loan under “Construction in progress” on the
Company’s balance sheet;

     

    WHEREAS, the Loans are unsecured, have
an interest rate of 9.6% per annum, and are due on January 2, 2011;
and

     

    WHEREAS, in lieu of cash payment of RMB
368,500 (US$54,351) (the “Converted Loan Amount”), the Company desires to issue
to the Holder and the Holder desires to accept 54,351 shares of common stock of
the Company, par value $0.001 (the “Converted Shares”), for such portion of the
Loans, on the terms and conditions set forth in this Agreement;

     

    NOW, THEREFORE, for and in
consideration of the mutual covenants and agreements hereinafter set forth and
the mutual benefits to the parties to be derived here from, and intending to be
legally bound, it is hereby agreed as follows:

     

    1.           Purchase.  Subject
to the terms and conditions set forth in this Agreement, the Company hereby
agrees to issue and deliver to the Holder, and the Holder hereby agrees to
purchase and accept from the Company the Converted Shares.

     

    2.           Consideration.  In
full consideration for the Converted Shares, at Closing, the Holder shall cancel
the portion of the Loans equal to the Converted Loan Amount.

     

    3.           Representations And
Warranties.  The parties represent and warrant to the other as
set forth below.  All such representations and warranties shall
survive the Closing.

     

    A.           Representations and
Warranties of the Company.  The Company represents and warrants
to the Holder and indemnifies the Holder as follows:

     

    (i)           Organization.  The
Company is a corporation duly organized and validly existing in good standing
under the laws of the State of Delaware, and has the requisite corporate power
and authorization to own its properties and to carry on its business as now
being conducted.

     

    (ii)           Authorization; Enforcement;
Validity.  The Company has the requisite corporate power and
authority to enter into and perform its obligations under this Agreement and to
issue the Converted Shares in accordance with the terms hereof.  This
Agreement has been duly executed and delivered by the Company, and constitutes
the legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of applicable creditors’ rights and
remedies.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    (iii)           Issuance of
Securities.  The Converted Shares are duly authorized and, upon
issuance in accordance with the terms hereof, shall be validly issued and free
from all taxes, liens and charges and shall be fully paid and nonassessable with
the holders being entitled to all rights accorded to a holder of common stock of
the Company. The issuance by the Company of the Converted Shares is exempt from
registration under the 1933 Act.

     

    (iv)           Disclosures.  No
representation or warranty by the Company contained in this Agreement or any
exhibits referenced herein and no document or certificate furnished or to be
furnished to Holder in connection herewith, or with the transactions
contemplated hereby, contain, or on the Closing Date will contain, an untrue
statement of a material fact, or omit, or on the Closing Date will omit, to
state a material fact necessary to make the statements of fact contained herein
or therein not misleading.

     

    (v)           No Other
Consents.  Other than as set forth herein, the execution and
delivery of this Agreement by the Company does not, and the performance of this
Agreement by the Company will not require any consent, approval, authorization
or other action by, or filing with or notification to, any governmental body or
any other person.

     

    B.           Representations, Warranties
and Indemnification of the Holder.  The Holder represents and
warrants to the Company and indemnifies the Company as follows:

     

    (i)           No Public Sale or
Distribution.  The Holder is acquiring the Converted Shares in
the ordinary course of business for its own account and not with a view towards,
or for resale in connection with, the public sale or distribution thereof,
except pursuant to sales registered or exempted under the 1933 Act and the
Holder does not have a present arrangement to effect any distribution of the
Converted Shares to or through any person or entity; provided, however, that by
making the representations herein, the Holder does not agree to hold any of
the Converted Shares for any minimum or other specific term and reserves the
right to dispose of the Converted Shares at any time in accordance with or
pursuant to a registration statement or an exemption under the 1933
Act.  The Holder is acquiring the Converted Shares hereunder in the
ordinary course of his business.  The Holder does not presently have
any agreement or understanding, directly or indirectly, with any individual or
corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an
agency or subdivision thereof) or other entity of any kind (a “Person”) to
distribute any of the Converted Shares.

     

    (ii)           Accredited
Investor
Status.  The Holder is an “accredited investor” as that term is
defined in Rule 501(a) of Regulation D.

     

    (iii)          Reliance on
Exemptions.  The Holder understands that the Converted Shares
are being issued to him in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and the
provinces of Canada, and that the Company is relying in part upon the truth and
accuracy of, and the Holder’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of the Holder set forth herein in
order to determine the availability of such exemptions and the eligibility of
the Holder to acquire the Converted Shares.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (iv)           Legends.  The
Holder understands that the certificates or other instruments representing the
Converted Shares and, until such time as the resale of the Converted Shares have
been registered under the 1933 Act, the stock certificates representing the
Converted Shares shall bear any legend as required by the “blue sky” laws of any
state and a restrictive legend in substantially the following form (and a
stop-transfer order may be placed against transfer of such stock
certificates):

     

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND ARE “RESTRICTED SECURITIES” AS
THAT TERM IS DEFINED IN RULE 144 UNDER THE SECURITIES ACT.  SUCH
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND THE
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
THEREUNDER, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE REASONABLE
SATISFACTION OF COUNSEL TO THE ISSUER.

     

    (v)           Validity; Enforcement.  This
Agreement has been duly and validly authorized, executed and delivered on behalf
of the Holder and shall constitute the legal, valid and binding obligations of
the Holder enforceable against the Holder in accordance with their respective
terms, except as such enforceability may be limited by general principles of
equity or to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the
enforcement of applicable creditors’ rights and remedies.

     

    (vi)           No
Conflicts.  The execution, delivery and performance by such
Holder of this Agreement and the consummation by the Holder of the transactions
contemplated hereby and thereby will not (i) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which
the Holder is a party, or (ii) result in a violation of any law, rule,
regulation, order, judgment  or decree (including federal and state
securities laws) applicable to the Holder, except for such conflicts, defaults,
rights or violations which would not, individually or in the aggregate,
reasonably be expected to have a material adverse effect on the ability of the
Holder to perform his obligations hereunder.

     

    (vii)           Due
Diligence.  In entering into this Agreement and the
transactions contemplated herein, the Holder is relying on his own due diligence
investigation and assessment of the Company and not upon any statements,
comments, representations, or remarks made by the Company.  The Holder
acknowledges that the Company has made no statement, comment, representation, or
remark concerning the Company or its business or the advisability of an
investment in the Company.

     

    
      
         

      

      
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    (viii)        Disclosures.  No
representation or warranty by the Holder contained in this Agreement or any
exhibits referenced herein and no document or certificate furnished or to be
furnished to the Company in connection herewith, or with the transactions
contemplated hereby, contain, or on the Closing Date will contain, an untrue
statement of a material fact, or omit, or on the Closing Date will omit, to
state a material fact necessary to make the statements of fact contained herein
or therein not misleading.

     

    (ix)           No Other
Consents.  Other than as set forth herein, the execution and
delivery of this Agreement by the Holder does not, and the performance of this
Agreement by the Holder will not require any consent, approval, authorization or
other action by, or filing with or notification to, any governmental body or any
other person.

     

    4.           Closing.

     

    A.           Closing.  The
Closing shall take place on the Closing Date at the offices of the Company, or
at such other time and place as the parties may mutually agree
upon.

     

    B.           Deliveries by the
Company.  Within five (5) days of the later of (i) the Closing
Date, or (ii) receipt by the Company of approval of the proposed issuance of the
Converted Shares contemplated in this Agreement from the Nasdaq Stock Market,
the Company shall submit a letter to Corporate Stock Transfer, the Company’s
transfer agent (the “Transfer Agent”), instructing the Transfer Agent to deliver
to the Holder the certificates representing the Converted Shares.

     

    C.           Deliveries by
Holder.  At the Closing, the Holder shall deliver to the
Company a written certificate evidencing the irrevocable cancellation of
indebtedness owed to Holder in the principle amount equal to the Converted Loan
Amount.

     

    5.           Release of Liability.
The Holder releases the Company, its successors and assigns, and each of their
respective officers, directors, employees and agents, from any and all claims,
liability, losses and damages whatsoever with respect to any and all payment or
other obligations, covenants or commitments of the Company to or in favor of the
Holder arising under or in relation to the portion of the Loans cancelled in
connection with the issuance of the Converted Shares. THE HOLDER HEREBY
ACKNOWLEDGES AND AGREES THAT THE COMPANY’S SUCCESSORS AND ASSIGNS, AND EACH OF
THE COMPANY’S AND ITS SUCCESSORS AND ASSIGNS’ RESPECTIVE OFFICERS, DIRECTORS,
EMPLOYEES AND AGENTS SHALL BE DEEMED TO BE THIRD PARTY BENEFICIARIES OF THE
RELEASE SET FORTH ABOVE IN THIS PARAGRAPH.

     

    6.           Miscellaneous.

     

    A.           Further Assurances.
Each of the Holder and the Company hereby acknowledges, agrees and covenants
that it shall promptly execute and deliver to any other party hereto any and all
instruments, agreements or other documents that shall be prepared and reasonably
request to be so executed and delivered by such other party, and to take all
other action reasonably requested by any other party hereto that is consistent
with the cancellation and discharge of the Loans in the principle amount equal
to the Converted Loan Amount and all other express purposes of this
Agreement.

     

    B.           Governing Law;
Attorneys’ Fees. This Agreement
shall be governed by and construed in accordance with the laws of the State of
Delaware, without regard to principles of conflicts of law. If any suit, action,
or proceeding is brought to enforce any term or provision of this Agreement, the
prevailing party shall be entitled to recover reasonable attorneys’ fees, costs,
and expenses incurred, in addition to any other relief to which such party may
be legally entitled.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    C.           Construction.  The
captions and headings contained herein are for convenient reference only and
shall not in any way affect the meaning or interpretation of this
Agreement.  Notwithstanding any rule or maxim of construction to the
contrary, any ambiguity or uncertainty in this Agreement shall not be construed
against either party based upon authorship of any of the provisions
hereof.

     

    D.           Entire Agreement.
This Agreement constitutes the only agreement or understanding between the
parties with respect to the subject mater hereof, and supersedes and is
controlling over any and all prior existing agreements or communications between
the parties. All negotiations, commitments, and understandings acceptable to
both parties have been incorporated into this Agreement.

     

    E.           Amendment or
Waiver.  This Agreement may by amended by a writing signed by
all parties hereto, with respect to any of the terms contained herein, and any
term or condition of this Agreement may be waived or the time for performance
may be extended by a writing signed by the party or parties for whose benefit
the provision is intended.

     

    F.           Counterparts. This
instrument may be executed in counterparts, each of which shall constitute an
original but all of which shall constitute but one and the same instrument. One
or more counterparts of this instrument may be delivered via facsimile, with the
intention that they shall have the same effect as an original counterpart
hereof.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

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

     

     

    
      
        
          	 	NEW
      ORIENTAL ENERGY & CHEMICAL CORP.	 
	 	 	 	 
	
                   
      

                	
                  By:
      

                	/s/
      Chen Siqiang	 
	 	 	Name:
      Chen Siqiang	 
	 	 	Title:   Chairman
      and CEO	 

        

      

    

     

     

    
      
        
          
            
              
                	 	LOAN
      HOLDER:	 
	 	 	 	 
	
                         
      

                      	
                         
      

                      	/s/ Yang
      Hongtao	 
	 	Yang
      Hongtao	 

              

            

          

        

      

    

     

    
      
         

      

      
        6ESCROW AND STOCK PURCHASE
AGREEMENT

    

    This Escrow Agreement (“Agreement”) is
entered into by and between Sanswire Corporation, a Delaware Corporation, 17501
Biscayne Blvd., Suite 430, Aventura, Florida 33160 (“Sanswire”), Michael
K. Clark, 157 Beach 135 Street, Belle Harbor, New York 11694, and Hinshaw &
Culbertson LLP, an Illinois limited liability partnership, 780 Third Avenue,
4th
Floor, New York, New York 10017 (“Escrow Agent”), on this 29th day of September
2010 as follows:

    

    WHEREAS, the Securities and Exchange
Commission (“SEC”) has filed the consolidated action against Sanswire and
several of its former officers and directors, Case No. 0:07-cv-61693-JAL,
alleging violations of federal securities laws (“SEC Action”);

    

    WHEREAS, the SEC and Sanswire wish to
resolve the claims against Sanswire in the SEC Action through
settlement;

    

    WHEREAS, Sanswire desires to offer to
pay the SEC $300,000 (“Settlement Funds”) as a material term of the settlement
of the SEC Action;

    

    WHEREAS, Sanswire and Michael K. Clark
recognize that Sanswire does not readily have the necessary cash to make the
full $300,000 offer to the SEC;

    

    WHEREAS, Michael K. Clark desires to
provide $250,000 to Sanswire on the terms stated herein so that Sanswire can
offer the Settlement Funds to the SEC;

    

    WHEREAS, Sanswire will provide the
remaining $50,000 for the Settlement Funds;

    

    WHEREAS, the Escrow Agent represents
Sanswire in the SEC Action; and

    

    WHEREAS, the parties desire to have the
Escrow Agent hold the Settlement Funds in escrow to be used for the purposes of
settlement with the SEC.

    

    NOW THEREFORE, for the mutual covenants
and agreements contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
represent, warrant, covenant and agree as follows:

    
      
         

      

      
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1 of 5

        
          

        

      

      
         

      

    

    1.           Recitals.  The
foregoing recitals are true and correct.

    

    2.           Escrow
Agent.  The parties hereby appoint Hinshaw & Culbertson LLP
as Escrow Agent hereunder.  The parties hereby agree that the Escrow Agent
is acting solely as an escrow holder at the parties’ request and
convenience.  Escrow Agent assumes no obligations or responsibilities under
this Agreement other than to faithfully follow the instructions contained in
this Agreement and as may be required by applicable law.  Escrow Agent
shall not be required to use its discretion with respect to any matter that is
the subject of this Agreement or with respect to any notices received pursuant
to this Agreement.  Escrow Agent may conclusively rely on and shall be
protected in acting or refraining from acting on any notice, instrument, or
other writing believed by Escrow Agent in good faith to be genuine and signed or
presented by the proper party or parties.

    

    3.           Waiver of Conflict of
Interests. 
The parties acknowledge a potential conflict of interest related to the
Escrow Agent’s representation of Sanswire in the SEC Action.  The parties
hereby waive any such conflicts or potential conflicts of interests and Escrow
Agent shall not be prevented from representing Sanswire in anyway whatsoever.
The parties acknowledge that by acting as Escrow Agent pursuant hereto, Escrow
Agent is not acting as the attorney for any of the parties.

    

    4.           Escrow
Agreement.  The parties agree that the Settlement Funds are to be
escrowed as follows:

    

    a.           Sanswire
will transmit $50,000 to the Escrow Agent’s trust account to be held in trust to
use for the SEC settlement;

    

    b.           Michael
K. Clark will transmit $250,000 to the Escrow Agent’s trust account to be held
in trust to use for the SEC settlement;

    

    c.           in
the event that the SEC accepts the offer of the Settlement Funds in a written
settlement agreement, Michael K. Clark will instruct the Escrow Agent to release
the Settlement Funds to the SEC, and Escrow agent will transmit the $300,000 to
the SEC; and

    
      
         

      

      
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2 of 5

        
          

        

      

      
         

      

    

    d.           in
the event that the SEC does not accept the offer of the Settlement Funds in a
written settlement agreement, the Escrow Agent will return $50,000 to Sanswire
on the instruction of Michael K. Clark or Glenn Estrella and will return
$250,000 to Michael K. Clark on the instruction of Michael K.
Clark.

    

    5.           Stock Purchase
Agreement.  In the event that Sanswire enters into a written
settlement agreement using the Settlement Funds, the $250,000 contributed by
Michael K. Clark and remitted by the Escrow Agent will be deemed to be an equity
investment for the purchase of Sanswire shares, and Michael K. Clark and
Sanswire will enter into a Stock Purchase Agreement whereby Michael K. Clark
will receive in exchange for his $250,000 contribution to the settlement
4,000,000 shares of common stock of Sanswire, par value $0.00001, restricted
pursuant to Rule 144 promulgated under the Securities Act of 1933 (as
amended).

    

    6.           Modification.  This
agreement may be modified or amended only by a writing signed by all
parties.

    

    7.           Notices.  All
notices, requests, demands, and other communications under this agreement shall
be in writing and shall be sent by Certified U.S. Mail as follows:

     

    
      
        
          	
                  a.

                	
                  to
      Sanswire:

                	
                  Sanswire
      Corp.

                
	 
      	 
      	
                  c/o
      Glenn Estrella

                
	 
      	 
      	
                  17501
      Biscayne Blvd.

                
	 
      	 
      	
                  Ste.
      430

                
	 
      	 
      	
                  Aventura,
      FL 33160

                
	 
      	 
      	 
      
	
                  b.

                	
                  to
      Michael K. Clark:

                	
                  157
      Beach 135 Street

                
	 
      	 
      	
                  Belle
      Harbor

                
	 
      	 
      	
                  New
      York 11694; and

                
	 
      	 
      	 
      
	
                  c.

                	
                  to
      Escrow Agent:

                	
                  Hinshaw
      & Culbertson LLP

                
	 
      	 
      	
                  c/o
      Maranda E. Fritz, Esquire

                
	 
      	 
      	
                  780
      Third Avenue

                
	 
      	 
      	
                  4th
      Floor

                
	 
      	 
      	
                  New
      York, New York
10017

                

        

      

    8.           Jurisdiction.  The
parties agree that the exclusive and sole venue for any legal action arising out
of or related to this agreement shall be the Circuit Court in Orange County,
Florida, and Parties hereby voluntarily consent to such court exercising
jurisdiction over them.

    
      
         

      

      
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3 of 5

        
          

        

      

      
         

      

    

    9.           Choice of
Law. The parties agree that this Agreement shall be governed by the
laws of the State of Florida, without regard to its choice of law
provisions.

    

    10.         General Representations and
Warranties.  The parties represent, warrant and agree
that:

    

    a.           such
party has read this Agreement, has had adequate time to consider it, has
consulted with its/her attorney prior to executing this Agreement, understands
the meaning and application of this Agreement and signs this Agreement
knowingly, voluntarily and of its/her own free will with the intent of being
bound by it;

     

    b.           such
party has not been subjected to any duress, undue influence or inequality of
bargaining power in connection with the negotiation or execution of this
Agreement;

     

    c.           except
for statements, representations and promises expressly set forth in this
Agreement, such Party has not relied upon any statement, representation or
promise of any other party (or of any employee, attorney or other representative
of any other party or of any affiliated entity) in executing this Agreement, and
no other Party has made any statements, representations or promises regarding a
fact relied upon by it in entering into this Agreement; and

     

    d.           such
party has the full right and authority to enter into this Agreement, and the
person executing this Agreement has the full right and authority to do so, and
fully to commit and bind such Party to this Agreement.

    

    11.         Severability.  If
any provision of this Agreement shall be found invalid or unenforceable in whole
or in part, then such provision shall be deemed to be modified or restricted to
the extent and in the manner necessary to render the same valid and enforceable
or shall be deemed excised from this Agreement as such circumstances may
require, and this Agreement shall be construed and enforced to the maximum
extent permitted by law as if such provision had been originally incorporated
herein as so modified or restricted or as if such provision had not been
originally incorporated herein, as the case may be.

    

    12.         Successors and
Assigns.  This Agreement shall be binding upon, and inure to
the benefit of, and be enforceable by the Parties hereto and their respective
successors and assigns.

    
      
         

      

      
        Page
4 of 5

        
          

        

      

      
         

      

    

    13.         Entire
Agreement.  This Agreement is the final written expression, and
the complete and exclusive statement, of all of the agreements, conditions,
promises and covenants among the parties with respect to the subject matter
hereof.  This Agreement supersedes all prior or contemporaneous
agreements, negotiations, representations, understandings and discussions
between the parties or their respective counsel, or both, with respect to the
subject matter covered hereby.

    

    14.         Headings.  The
headings used herein are for reference only and shall not affect the
construction or interpretation of this Agreement.

    

     

    15.         Counterparts.  This
Escrow Agreement may be executed in counterparts, each of which so executed
shall be deemed as original, and said counterparts together shall constitute one
and the same instrument.

    

    /s/
Michael K. Clark   Dated:  September 29,
2010

    Michael
K. Clark

    

    SANSWIRE
CORPORATION

    

    /s/ Glenn
Estrella       Dated:  September
22, 2010

    Glenn
Estrella, CEO

    

    Hinshaw
& Culbertson LLP

    

    /s/
Maranda Fritz      Dated: September 28,
2010

    Maranda
Fritz

    Its:_____________________________

    
      
         

      

      
        Page
5 of 5

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