Document:

ex101.htm

  

  

  

STOCK PURCHASE AND SHARE EXCHANGE AGREEMENT

 

THIS STOCK PURCHASE AND SHARE EXCHANGE AGREEMENT (the “Agreement”), is entered into as of May 20, 2009, and shall have an “Effective Date” on the date of the Spin-off Stream Horizon Studios, Inc. from its
parent Wavelit, Inc, a Nevada corporation, and is made by and between:

1.  Stream Horizon Studios, Inc., a British Columbia, Canada corporation, with address at 808, 9266 University Crescent, Burnaby, BC V5A 4Z1, Canada (“SHS”); and

2.  Sierra Vista Group Limited, a company organized under the laws of the British Virgin Islands, with registered address at P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands, and main office address at Room A, 20/F, International Trade Residential and Commercial Building, Nanhu Road, Shenzhen,
China (“SVG”).

Premises

A.           This Agreement provides for the acquisition of 100% of the issued and outstanding capital stock of SVG owned by Mr. Dong Liu (50%) and Mr. Yuan Zhao (50%) (collectively the “SVG Shareholders”), making SVG a wholly owned subsidiary of SHS, in exchange for the issuance
of 170,000,000 shares of  common stock of SHS, $.001 par value, which shall constitute a majority of the issued and outstanding stock of SHS as of the Effective Date.

B.           The boards of directors of SHS and SVG have determined, subject to the terms and conditions set forth in this Agreement, that the transaction contemplated hereby is desirable and in the best interests of their stockholders, respectively. This Agreement is being entered into
for the purpose of setting forth the terms and conditions of the proposed acquisition.

C.           The boards of directors of SHS and SVG acknowledge that SVG is in the process of changing the company name of SVG to “China Teletech Limited”, and that upon completion of the transaction contemplated herein, SHS
would also change the company name to “China Teletech Limited” to reflect the new business of SHS.

D.           The parties desire that the exchange qualify as a tax free exchange meeting the requirements of Article 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended.

AGREEMENT

NOW, THEREFORE, on the stated premises and 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, it is hereby agreed as follows:

ARTICLE I

REPRESENTATIONS, COVENANTS AND WARRANTIES OF SHS

 

As an inducement to and to obtain the reliance of SVG, SHS represents and warrants as follows:

Section 1.1Organization. SHS is a corporation duly organized, validly existing, and in good standing under the laws of British Columbia, Canada and has the corporate power and is duly authorized, qualified, franchised and licensed
under all applicable laws, regulations, ordinances and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, including qualification to do business as a foreign corporation in the jurisdiction in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification. Included in the Schedules attached hereto (hereinafter defined) are complete and correct
copies of the certificate of incorporation, bylaws and amendments thereto as in effect on the date hereof. The execution and delivery of this Agreement does not and the consummation of the transactions contemplated by this Agreement in accordance with the terms hereof will not violate any provision of SHS's certificate of incorporation or bylaws. SHS has full power, authority and legal right and has taken all action required by law, its certificate of incorporation, its bylaws or otherwise to authorize the execution
and delivery of this Agreement.

Section 1.2Capitalization. The authorized capitalization of SHS consists of 250,000,000 shares which consists of one class of Common Stock in the amount of 250,000,000 shares having no par value each, of which there is one (1) share
of common stock issued and outstanding.   All issued and outstanding shares are legally issued, fully paid and nonassessable and are not issued in violation of the preemptive or other rights of any person. SHS has no securities, warrants or options authorized or issued, except for those disclosed in Schedule 1.2.

Section 1.3Subsidiaries.  SHS has no subsidiaries.

Section 1.4Tax Matters; Books and Records.

 

(a)  The books and records, financial and others, of SHS are in all material respects complete and correct and have been maintained in accordance with good business accounting practices; and

(b)  SHS has no liabilities with respect to the payment of any country, federal, state, county, or local taxes (including any deficiencies, interest or penalties).

(c)  Prior to or at the time of the closing, SHS shall satisfy all outstanding liabilities, debts, expenses and unpaid taxes.

Section 1.5Litigation and Proceedings. There are no actions, suits, proceedings or investigations pending or threatened by or against or affecting SHS or its properties, at law or in equity, before any court or other governmental
agency or instrumentality, domestic or foreign or before any arbitrator of any kind that would have a material adverse affect on the business, operations, financial condition or income of SHS. SHS is not in default with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator or governmental agency or instrumentality or of any circumstances which, after reasonable investigation, would result in the discovery of such a default.

Section 1.6Material Contract Defaults.  SHS is not in default in any material respect under the terms of any outstanding contract, agreement, lease or other commitment which is material to the business, operations, properties,
assets or condition of SHS, and there is no event of default in any material respect under any such contract, agreement, lease or other commitment in respect of which SHS has not taken adequate steps to prevent such a default from occurring.

 Section 1.7                      Information. The information concerning SHS as set forth in this Agreement is complete
and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made in light of the circumstances under which they were made, not misleading.

 Section 1.8                      Title and Related Matters. SHS has good and marketable title to and is the
sole and exclusive owner of all of its properties, inventory, interest in properties and assets, real and personal (collectively, the “Assets”) free and clear of all liens, pledges, charges or encumbrances. SHS owns free and clear of any liens, claims, encumbrances, royalty interests or other restrictions or limitations of any nature whatsoever and all procedures, techniques, marketing plans, business plans, methods of management or other information utilized in connection with SHS’s business.
No third party has any right to, and SHS has not received any notice of infringement of or conflict with asserted rights of other with respect to any product, technology, data, trade secrets, know-how, proprietary techniques, trademarks, service marks, trade names or copyrights which, singly on in the aggregate, if the subject of an unfavorable decision ruling or finding, would have a materially adverse affect on the business, operations, financial conditions or income of SHS or any material portion of its properties,
assets or rights.

 Section 1.9                      Contracts. On the closing date:

(a)  There are no material contracts, agreements, leases, franchises, license agreements, or other commitments to which SHS is a party or by which it or any of its properties are bound, which have not been assigned to, or assumed by, another party;

(b)  SHS is not a party to any contract, agreement, commitment or instrument or subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree or award materially and adversely affects, or in the future may (as far as SHS can now foresee) materially and adversely affect, the business, operations,
properties, assets or conditions of SHS; and

(c)  SHS is not a party to any material oral or written: (i) contract for the employment of any officer or employee; (ii) profit sharing, bonus, deferred compensation, stock option, severance pay, pension benefit or retirement plan, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended;
(iii) agreement, contract or indenture relating to the borrowing of money; (iv) guaranty of any obligation for the borrowing of money or otherwise, excluding endorsements made for collection and other guaranties, of obligations, which, in the aggregate exceeds $500; (v) consulting or other contract with an unexpired term of more than one year or providing for payments in excess of $500 in the aggregate; (vi) collective bargaining agreement; and (vii) contract, agreement or other commitment involving payments
by it for more than $1,000 in the aggregate.

Section 1.10                      Compliance With Laws and Regulations. To the best of SHS’s knowledge and belief,
SHS has complied with all applicable statutes and regulations of any federal, state or other governmental entity or agency thereof, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets or condition of SHS or would not result in SHS incurring material liability.

Section 1.11                      Approval of Agreement. The directors of SHS have authorized the execution and delivery
of this Agreement and have approved the transactions contemplated.

Section 1.12                      Material Transactions or Affiliations. There are no material contracts or agreements
of arrangement between SHS and any person, who was at the time of such contract, agreement or arrangement an officer, director or person owning of record, or known to beneficially own ten percent (10%) or more of the issued and outstanding common shares of SHS and which is to be performed in whole or in part after the date hereof. SHS has no commitment, whether written or oral, to lend any funds to, borrow any money from or enter into material transactions with any such affiliated person.

 

Section 1.13                      No Conflict With Other Instruments. The execution of this Agreement and the consummation
of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an event of default under, any material indenture, mortgage, deed of trust or other material contract, agreement or instrument to which SHS is a party or to which any of its properties or operations are subject.

Section 1.14                      Governmental Authorizations. SHS has all licenses, franchises, permits or other
governmental authorizations legally required to enable it to conduct its business in all material respects as conducted on the date hereof. Except for compliance with federal and state securities and corporation laws, as hereinafter provided, no authorization, approval, consent or order of, or registration, declaration or filing with, any court or other governmental body is required in connection with the execution and delivery by SHS of this Agreement and the consummation of the transactions contemplated hereby.

Section 1.15                      SEC Reporting and Compliance.

(a)            SHS is not currently subject to SEC reporting requirements.

(b)           To the best knowledge of SHS, SHS has otherwise complied with the Securities Act, Exchange Act and all other applicable federal and state securities laws.

Section 1.16No General Solicitation or Advertising. In issuing SHS common stock under this Agreement, neither SHS nor anyone acting on its behalf has offered to sell the SHS common stock by any form of general solicitation or
advertising.

Section 1.17Questionable Payments and Off-Balance Sheet Arrangements. Neither SHS nor any director, officer or, to the best knowledge of SHS, agent, employee or other person associated with or acting on behalf of SHS, has used
any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; made any direct or indirect unlawful payments to government officials or employees from corporate funds; established or maintained any unlawful or unrecorded fund of corporate monies or other assets; made any false or fictitious entries on the books of record of any such corporations; made any off-balance sheet arrangements; or made any bribe, rebate, payoff, influence payment, kickback
or other unlawful payment.

 

Section 1.18 Indebtedness. The Financial Statements, sets forth as of the dates and periods indicated on such form and financial statements, all outstanding secured and unsecured Indebtedness of SHS, as applicable, or for which SHS, as applicable, has commitments. For the purposes
of this Agreement, “Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess of $5,000 (other than trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in SHS’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $5,000 due under leases required to be capitalized in accordance with GAAP. Except as set forth on Schedule 1.19, SHS is not in default with respect to any Indebtedness.

 

Section 1.19 Absence of Certain Developments. Except as may be disclosed in the Disclosure Documents, SHS has not:

  

(a)           other than upon conversion of any outstanding preferred stock or notes, issued any stock, bonds or other corporate securities or any rights, options or warrants with respect thereto;

 

 

(b)            borrowed any amount or incurred or become subject to any liabilities (absolute or contingent) except current liabilities incurred in the ordinary course of business which are comparable in nature and amount to the current liabilities incurred in the ordinary course of business
during the comparable portion of its prior fiscal year, as adjusted to reflect the current nature and volume of SHS’s business;

            (c)           made capital expenditures or commitments therefor that aggregate in excess of $10,000;

 

            (d)           entered into any other transaction other than in the ordinary course of business, or entered into any other material transaction, whether or not in the ordinary course of business;

 

Section 1.20 Financial Statements. The balance sheets, and statements of income, changes in financial position and stockholders’ equity contained in the SHS financial statements filed with the SEC, (“SHS Financial
Statements”) (i) have been prepared in accordance with GAAP applied on a basis consistent with prior periods (and, in the case of unaudited financial information, on a basis consistent with year-end audits), (ii) are in accordance with the books and records of SHS, and (iii) present fairly in all material respects the financial condition of SHS at the dates therein specified and the results of its operations and changes in financial position for the periods therein specified.

ARTICLE II

REPRESENTATIONS, COVENANTS AND WARRANTIES OF SVG

As an inducement to, and to obtain the reliance of SVG, represent and warrant as follows:

Section 2.1Organization.  SVG is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has the corporate power and is duly authorized, qualified, franchised and licensed
under all applicable laws, regulations, ordinances and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, including qualification to do business as a foreign entity in the country, provinces or states, as applicable in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification. The execution and delivery of this Agreement does not and the consummation
of the transactions contemplated by this Agreement in accordance with the terms hereof will not, violate any provision of the charter documents of the Selling Parties and each of the Selling Parteis has full power, authority and legal right and has taken all action required by its charter documents or otherwise to authorize the execution and delivery of this Agreement.

 

Section 2.2Capitalization. 100% of the issued and outstanding common stock of SVG is held by SVG Shareholders.  All issued and outstanding common shares of SVG have been legally issued, fully paid, are nonassessable and
not issued in violation of the preemptive rights of any other person. SVG has no other securities, warrants or options authorized or issued.

Section 2.3 Subsidiaries.  SVG has the following subsidiaries:

(a)           Shenzhen Rongxin Investment Co., Ltd., located at Room A, 20/F, International Trade Residential and Commercial Building, Nanhu Road, Shenzhen, China.

(b)           Guangzhou Yueshen Taiyang Network and Technology Co., Ltd., located at 1/F, No. 139, Yingyuan Road, Yuexiu District, Guangzhou, China.

 Section 2.4Tax Matters, Books & Records. 

 

(a)  The books and records, financial information of SVG are in all material respects complete and correct and have been maintained in accordance with good business accounting practices;

(b)           SVG has no liabilities with respect to the payment of any country, federal, state, province, county, local or other taxes (including any deficiencies, interest or penalties); and

Section 2.5Information and Disclosure. Neither this Agreement nor any other documents, certificates or instruments furnished to SHS by or on behalf of SVG in connection with the transactions contemplated by this Agreement (collectively,
the “Disclosure Documents”) contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made herein or therein, in the light of the circumstances under which they were made herein or therein, not false or misleading.

Section 2.6Title and Related Matters.  SVG has good and marketable title to and is the sole and exclusive owner of all of its properties, inventory, interests in properties and assets, real and personal (collectively, the
"Assets") free and clear of all liens, pledges, charges or encumbrances. No third party has any right to, and SVG has not received any notice of infringement of or conflict with asserted rights of others with respect to any product, technology, data, trade secrets, know-how, proprietary techniques, trademarks, service marks, trade names or copyrights which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a materially adverse affect on the business, operations,
business prospects, financial conditions or operating results of SVG, as applicable, or any material portion of its properties, assets or rights.

Section 2.7Litigation and Proceedings. There are no actions, suits or proceedings pending or threatened by or against or affecting SVG, at law or in equity, before any court or other governmental agency or instrumentality, domestic
or foreign or before any arbitrator of any kind that would have a material adverse effect on the businesses, operations, business prospects, financial conditions or operating results of SVG.  SVG does not have any knowledge of any default on its part with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator or governmental agency or instrumentality.

Section 2.8Contracts. On the Closing Date:

(a)  There are no material contracts, agreements, franchises, license agreements, or other commitments to which SVG, is a party to or by which either of them or any of their subsidiaries or properties are bound;

(b)  SVG is not a party to any contract, agreement, commitment or instrument or subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree or award which may now, or in the future (as far as SVG, as applicable, can now foresee), may, individually or in the aggregate, have a material adverse
effect on the businesses, operations, business prospects, financial conditions or operating results of SVG; As used in this Agreement, the term “material adverse effect” means any material adverse effect on the business, operations, properties, prospects, or financial condition of SVG, as applicable, and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability of SVG to perform any of their respective obligations under this Agreement in any
material respect; and

(c)  SVG is not a party to any material oral or written: (i) contract for the employment of any officer or employee; (ii) profit sharing, bonus, deferred compensation, stock option, severance pay, pension, benefit or retirement plan, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as
amended; (iii) agreement, contract or indenture relating to the borrowing of money; (iv) guaranty of any obligation for the borrowing of money or otherwise, excluding endorsements made for collection and other guaranties of obligations, which, in the aggregate exceeds $1,000; (v) consulting or other contract with an unexpired term of more than one year or providing for payments in excess of $5,000 in the aggregate; (vi) collective bargaining agreement; and (vii) contract, agreement, or other commitment involving
payments by it for more than $5,000 in the aggregate.

 

Section 2.9No Conflict. The execution, delivery and performance of this Agreement, and any other agreement, documents and instruments related to the transactions contemplated herein, by SVG do not and will not (i) violate any
provision of the charter documents of SVG, (ii) 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, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to either SVG is a party or by which either SVG or any of its properties or assets are bound, (iii) create or impose a lien, mortgage, security
interest, charge or encumbrance of any nature on any property of SVG under any agreement or any commitment to which either SVG is a party or by which either SVG is bound or by which any of their respective properties or assets are bound, or (iv) result in a violation of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to SVG, or by which any property or asset of SVG or any of its subsidiaries are
bound or affected, except, in all cases other than violations pursuant to clauses (i) and (iv) above, for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a material adverse effect. The business of SVG is not being conducted in violation of any laws, ordinances or regulations of any governmental entity, except for possible violations which singularly or in the aggregate do not and will not have a Material Adverse
Effect.

 

Section 2.10Material Contract Defaults.  To the best of  the knowledge of SVG, SVG is not in default under the terms of any outstanding contract, agreement, lease or other commitment which has, individually or
in the aggregate, a material adverse effect on the businesses, operations, business prospects, financial conditions or operating results of SVG, and there is no event of default in any such contract, agreement, lease or other commitment which default has, individually or in the aggregate, a material adverse effect on the businesses, operations, business prospects, financial conditions or operating results of SVG.

Section 2.11Governmental Authorizations. To the best of  the knowledge of SVG, SVG and its subsidiaries have all licenses, franchises, permits and other governmental authorizations that are legally required to enable
it to conduct its business operations in all material respects as conducted on the date hereof. Except for compliance with federal and state securities or corporation laws, or the applicable laws of the PRC, as applicable, no authorization, approval, consent or order of, or registration, declaration or filing with, any court or other governmental body is required in connection with the execution and delivery by the Selling Parties of the transaction documents contemplated hereby.

Section 2.12Compliance with Laws and Regulations.  To the best of knowledge of SVG, the business of SVG and its subsidiaries have been and are presently being conducted in accordance with all applicable federal, state and local
governmental laws, rules, regulations and ordinances, and all applicable laws, rules, regulations and ordinances of the PRC, as applicable, except for such noncompliance that, individually or in the aggregate, would not cause a Material Adverse Effect.  SVG and its subsidiaries have all franchises, permits, licenses, consents and other governmental or regulatory authorizations and approvals necessary for the conduct of its business as now being conducted by it unless the failure to possess such franchises,
permits, licenses, consents and other governmental or regulatory authorizations and approvals, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

Section 2.13Insurance. Each of SVG’s insurable properties are insured for SVG‘s benefit under valid and enforceable policy or policies containing substantially equivalent coverage and will be outstanding and in full force
at the Closing Date.

Section 2.14Approval of Agreement. The directors of SVG have authorized the execution and delivery of this Agreement and have approved the transactions contemplated hereby.

Section 2.15Material Transactions or Affiliations. As of the Closing Date, there will exist no material contract, agreement or arrangement between SVG and any person who was at the time of such contract, agreement or arrangement
an officer, director or person owning of record, or known by SVG to own beneficially, ten percent (10%) or more of the issued and outstanding common shares of SVG and which is to be performed in whole or in part after the date hereof. SVG has no commitment, whether written or oral, to lend any funds to, borrow any money from or enter into any other material transactions with, any such affiliated person.

 

Section 2.16                      Indebtedness. The financial statements provided by SVG sets forth as of the dates
and periods indicated on such form and financial statements, all outstanding secured and unsecured Indebtedness of SVG, as applicable, or for which SVG, as applicable, has commitments. For the purposes of this Agreement, “Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess of $5,000 (other than trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others,
whether or not the same are or should be reflected in SVG’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $5,000 due under leases required to be capitalized in accordance with GAAP.

 

 Section 2.17 Absence of Certain Developments.  SVG has not:

(a)            issued any stock, bonds or other corporate securities or any rights, options or warrants with respect thereto;

 

(b)           borrowed any amount or incurred or become subject to any liabilities (absolute or contingent) except current liabilities incurred in the ordinary course of business which are comparable in nature and amount to the current liabilities
incurred in the ordinary course of business during the comparable portion of its prior fiscal year, as adjusted to reflect the current nature and volume of SVG’s business;

 

(c)           discharged or satisfied any lien or encumbrance or paid any obligation or liability (absolute or contingent), other than current liabilities paid in the ordinary course of business;

 

            (d)           declared or made any payment or distribution of cash or other property to stockholders with respect to its stock, or purchased or redeemed, or made any agreements so to purchase or redeem, any shares
of its capital stock;

 

(e)           sold, assigned or transferred any other tangible assets, or canceled any debts or claims, except in the ordinary course of business;

 

(f)           sold, assigned or transferred any patent rights, trademarks, trade names, copyrights, trade secrets or other intangible assets or intellectual property rights, or disclosed any proprietary confidential information to any person except to customers in the ordinary course
of business or to SHS or its representatives;

 

            (g)           suffered any substantial losses or waived any rights of material value, whether or not in the ordinary course of business, or suffered the loss of any material amount of prospective business;

 

 

(h)           made any changes in employee compensation except in the ordinary course of business and consistent with past practices;

 

            (i)           made capital expenditures or commitments therefor that aggregate in excess of $10,000;

 

            (j)           entered into any other transaction other than in the ordinary course of business, or entered into any other material transaction, whether or not in the ordinary course of business;

 

            (k)           made charitable contributions or pledges in excess of $10,000;

 

            (l)           suffered any material damage, destruction or casualty loss, whether or not covered by insurance;

 

            (m)           experienced any material problems with labor or management in connection with the terms and conditions of their employment;

 

(n)           effected any two or more events of the foregoing kind which in the aggregate would be material to the Company or its subsidiaries; or

 

(o)           entered into an agreement, written or otherwise, to take any of the foregoing actions.

 

Section 2.18 Financial Statements. The balance sheets, and statements of income, changes in financial position and stockholders’ equity contained in the SVG’ financial statements:  (i) have been prepared
in accordance with GAAP;  (ii) are in accordance with the books and records of the SVG; and (iii) present fairly in all material respects the financial condition of the SVG at the dates therein specified and the results of its operations and changes in financial position for the periods therein specified.

ARTICLE III

EXCHANGE PROCEDURE AND OTHER CONSIDERATION

Section 3.1Share Exchange/Delivery of SVG Securities. On the Closing Date, SVG Shareholders, the holders of 100% of the issued and outstanding SVG common Shares, shall deliver to SHS certificates or other documents evidencing all
of the issued and outstanding SVG common shares, duly endorsed in blank or with executed power attached thereto in transferable form. On the Closing Date, all previously issued and outstanding common shares of SVG shall be transferred to SHS, so that SVG shall become a wholly owned subsidiary of SHS.

Section 3.2                      Issuance of SHS Shares. In exchange for 100% of the SVG common shares tendered pursuant
to Section 3.1, SHS shall issue to SVG Shareholders and/or its nominee(s), such number of shares of common stock of SHS as to equal 96.5% of the issued and outstanding shares of common stock of SHS as of the Closing Date.  Such shares are restricted in accordance with Rule 144 of the 1933 Securities Act.

Section 3.3Events Prior to Closing. Upon execution hereof or as soon thereafter as practical, management of SHS and SVG shall execute, acknowledge and deliver (or shall cause to be executed, acknowledged and delivered) any and all
certificates, opinions, financial statements, schedules, agreements, resolutions rulings or other instruments required by this Agreement to be so delivered, together with such other items as may be reasonably requested by the parties hereto and their respective legal counsel in order to effectuate or evidence the transactions contemplated hereby, subject only to the conditions to Closing referenced herein below.

Section 3.4Closing Date. The closing ("Closing Date") of the transactions contemplated by this Agreement shall be on the date and at the time the exchange documents are filed with the British Columbia Ministry of Finance in accordance
with applicable laws.

 

Section 3.5Termination.

 

(a)  This Agreement may be terminated by any Party, at any time prior to the Closing Date if:

(i)           there shall be any action or proceeding before any court or any governmental body which shall seek to restrain, prohibit or invalidate the transactions contemplated by this Agreement and which, in the judgment of such board
of directors, made in good faith and based on the advice of its legal counsel, makes it inadvisable to proceed with the exchange contemplated by this Agreement; or

(ii)           any of the transactions contemplated hereby are disapproved by any regulatory authority whose approval is required to consummate such transactions.

 

Except as otherwise agreed by the Parties with respect to the payment of expenses, in the event of termination pursuant to Paragraph (a) of this Section, no obligation, right, or liability shall arise hereunder and each party shall bear all of the expenses incurred by it in connection with the negotiation, drafting and execution of this Agreement
and the transactions herein contemplated.

(b)  This Agreement may be terminated at any time prior to the Closing Date by any Party if any Party shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or warranties of  the Parties contained herein shall be inaccurate in any
material respect, which noncompliance or inaccuracy is not cured after 20 days written notice thereof is given.

Should this Agreement is terminated pursuant to Paragraph (b) of this Section, this Agreement shall be of no further force or effect and no obligation, right or liability shall arise hereunder.

Section 3.8Directors of SHS After Acquisition. Upon the Closing, the current director(s) of SHS shall appoint directors identified below and shall thereafter resign.  Each newly appointed director shall hold office until
his successor has been duly elected and has qualified or until his death, resignation or removal.

(a)           Dong Liu

(b)           Yuan Zhao

Section 3.9Officers of SHS.  Upon the closing, the following people shall be appointed as officers of SHS:

	
Name
	  	
Office

	
Dong Liu
	  	
President

	
Yuan Zhao
	  	
Secretary

	  	  	  
	  	  	  
	  	  	  
	  	  	  

ARTICLE IV

SPECIAL COVENANTS

Section 4.1Access to Properties and Records. Prior to closing, SHS and SVG will each afford to the officers and authorized representatives of the other full access to the properties, books and records of each other, so that each
may have full opportunity to make such reasonable investigation as it shall desire to make of the affairs of the other and each will furnish the other with such additional financial and operating data and other information as to the business and properties of each other, as the other shall from time to time reasonably request.

Section 4.2Availability of Rule 144. SHS and SVG Shareholders holding "restricted securities", as that term is defined in Rule 144 of the 1933 Securities Act will remain as “restricted securities”. SHS is under no obligation
to register such shares under the Securities Act, or otherwise. The stockholders of SHS and SVG holding restricted securities of SHS and SVG as of the date of this Agreement and their respective heirs, administrators, personal representatives, successors and assigns, are intended third party beneficiaries of the provisions set forth herein. The covenants set forth in this Section 4.2 shall survive the Closing and the consummation of the transactions herein contemplated.

Section 4.3Special Covenants and Representations Regarding the SHS Common Shares to be Issued in the Exchange. The consummation of this Agreement, including the issuance of the SHS common shares to the shareholders of SVG as contemplated
hereby, constitutes the offer and sale of securities under the Securities Act, and applicable state statutes. Such transaction shall be consummated in reliance on exemptions from the registration and prospectus delivery requirements of such statutes which depend, inter alia, upon the circumstances under which the SVG Shareholders acquire such securities.

Section 4.4Third Party Consents. SHS and SVG agree to cooperate with each other in order to obtain any required third party consents to this Agreement and the transactions herein contemplated.

 

Section 4.5Actions Prior to and Subsequent to Closing.

 

(a)  From and after the date of this Agreement until the Closing Date, except as permitted or contemplated by this Agreement, SHS and SVG will each use its best efforts to:

(i)           maintain and keep its properties in states of good repair and condition as at present, except for depreciation due to ordinary wear and tear and damage due to casualty;

(ii)           maintain in full force and effect insurance comparable in amount and in scope of coverage to that now maintained by it; and

(iii)           perform in all material respects all of its obligations under material contracts, leases and instruments relating to or affecting its assets, properties and business.

(b)  From and after the date of this Agreement until the Closing Date, SHS will not, without the prior consent of SVG:

(i)           except as otherwise specifically set forth herein, make any change in its certificate of incorporation or bylaws;

(ii)           declare or pay any dividend on its outstanding common shares, except as may otherwise be required by law, or effect any stock split or otherwise change its capitalization, except as provided herein;

(iii)           enter into or amend any employment, severance or agreements or arrangements with any directors or officers;

(iv)           grant, confer or award any options, warrants, conversion rights or other rights not existing on the date hereof to acquire any common shares; or

(v)           purchase or redeem any common shares.

Section 4.6Indemnification.

 

(a)  SHS hereby agrees to indemnify SVG, each of their respective officers, agents and directors as of the Closing Date against any loss, liability, claim, damage or expense (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced
or threatened or any claim whatsoever), to which it or they may become subject to or rising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement; and

(b)  SVG hereby agrees to indemnify SHS, each of the officers, agents, directors and current shareholders of SHS as of the Closing Date against any loss, liability, claim, damage or expense (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation,
commenced or threatened or any claim whatsoever), to which it or they may become subject arising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement.

ARTICLE V

CONDITIONS PRECEDENT TO OBLIGATIONS OF SHS

 

The obligations of SHS under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:

Section 5.1Accuracy of Representations. The representations and warranties made by the Selling Parties in this Agreement were true when made and shall be true at the Closing Date with the same force and effect as if such representations
and warranties were made at the Closing Date (except for changes therein permitted by this Agreement), and the Selling Parties shall have performed or compiled with all covenants and conditions required by this Agreement to be performed or complied with by SVG prior to or at the Closing. SHS shall be furnished with a certificate, signed by a duly authorized officer of SVG and dated the Closing Date, to the foregoing effect.

Section 5.2Director Approval.  The Board of Directors of SHS shall have approved this Agreement and the transactions contemplated herein.

 

Section 5.3Officer's Certificate.  SHS shall have been furnished with a certificate dated the Closing Date and signed by a duly authorized officer of SVG to the effect that:

(a)           the representations and warranties of SVG set forth in the Agreement and other documents furnished in connection herewith are in all material respects true and correct as if made on the Effective Date;

(b)           SVG has performed all covenants, satisfied all conditions, and complied with all other terms and provisions of this Agreement to be performed, satisfied or complied with by it as of the Effective Date;

(c)           since such date, SVG has not entered into any material transaction other than transactions which are usual and in the ordinary course if its business; and

(d)           no litigation, proceeding, investigation or inquiry is pending or, to the best knowledge of SVG, threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement which might result in any material adverse
change in any of the assets, properties, business or operations of SVG.

Section 5.4No Material Adverse Change. Prior to the Closing Date, there shall not have occurred any material adverse change in the financial condition, business or operations of nor shall any event have occurred which, with the lapse
of time or the giving of notice, may cause or create any material adverse change in the financial condition, business or operations of SVG.

Section 5.5Other Items.  SHS shall have received such further documents, certificates or instruments relating to the transactions contemplated hereby as SHS may reasonably request.

ARTICLE VI

CONDITIONS PRECEDENT TO OBLIGATIONS OF SVG

The obligations of SVG under this Agreement are subject to the satisfaction, at or before the Closing date (unless otherwise indicated herein), of the following conditions:

Section 6.1Accuracy of Representations. The representations and warranties made by SHS in this Agreement were true when made and shall be true as of the Closing Date (except for changes therein permitted by this Agreement) with the
same force and effect as if such representations and warranties were made at and as of the Closing Date, and SHS shall have performed and complied with all covenants and conditions required by this Agreement to be performed or complied with by SHS prior to or at the Closing. SVG shall have been furnished with a certificate, signed by a duly authorized executive officer of SHS and dated the Closing Date, to the foregoing effect.

Section 6.2                      Director Approval. The Board of Directors of SHS shall have approved this Agreement and
the transactions contemplated herein.

Section 6.3Officer's Certificate.  SVG shall be furnished with a certificate dated the Closing Date and signed by a duly authorized officer of SHS to the effect that:

(a)           the representations and warranties of SHS set forth in the Agreement and in all Exhibits, Schedules and other documents furnished in connection herewith are in all material respects true and correct as if made on the Effective Date; and

(b)           SHS has performed all covenants, satisfied all conditions, and complied with all other terms and provisions of the Agreement to be performed, satisfied or complied with by it as of the Effective Date.

Section 6.4No Material Adverse Change. Prior to the Closing Date, there shall not have occurred any material adverse change in the financial condition, business or operations of nor shall any event have occurred which, with the lapse
of time or the giving of notice, may cause or create any material adverse change in the financial condition, business or operations of SHS.

Section 6.5Cancellation of Outstanding Options, Warrants, Rights, Etc. Prior to the Closing Date, SHS shall cancel all outstanding stock options, rights or commitments to issue shares of SHS common or preferred stock, warrants and
convertible notes, and warrants that there shall be no other common or preferred stock or equity securities or any options, warrants, rights or other agreements or instruments convertible, exchangeable or exercisable into common or preferred stock or other equity securities issued or outstanding.

Section 6.6Cancellation of Voting Trusts. Prior to the Closing Date, SHS shall cancel all voting trusts, agreements or arrangements among any of the beneficial holders of SHS common or preferred stock affecting the nomination or
election of directors or the exercise of the voting rights of SHS common or preferred stock.

 

ARTICLE VII

MISCELLANEOUS

Section 7.1Brokers and Finders.                                                                The
Parties each agree to indemnify the other against any claim by any third person for any commission, brokerage or finder's fee or other payment with respect to this Agreement or the transactions contemplated hereby based on any alleged agreement or understanding between the indemnifying party and such third person, whether express or implied from the actions of the indemnifying party.

Section 7.2Law, Forum and Jurisdiction. This Agreement shall be construed and interpreted in accordance with the laws of the State of Nevada, United States of America.

Section 7.3Notices. Any notices or other communications required or permitted hereunder shall be sufficiently given if personally delivered to it or sent by registered mail or certified mail, postage prepaid, or by prepaid telegram
to the address provided above to each Party or such other addresses as shall be furnished in writing by any party in the manner for giving notices hereunder, and any such notice or communication shall be deemed to have been given as of the date so delivered, mailed or telegraphed.

Section 7.4Attorneys' Fees. In the event that any party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the breaching party or parties shall reimburse the non-breaching
party or parties for all costs, including reasonable attorneys' fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.

Section 7.5Confidentiality. Each party hereto agrees with the other party that, unless and until the transactions contemplated by this Agreement have been consummated, they and their representatives will hold in strict confidence
all data and information obtained with respect to another party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such other party, and shall not use such data or information or disclose the same to others, except: (i) to the extent such data is a matter of public knowledge or is required by law to be published; and (ii) to the extent that such data or information must be used or disclosed in order to consummate the transactions
contemplated by this Agreement.

Section 7.6Schedules; Knowledge. Each party is presumed to have full knowledge of all information delivered pursuant to this Agreement.

Section 7.7Third Party Beneficiaries.  This contract is solely between SHS and SVG and except as specifically provided, no director, officer, stockholder, employee, agent, independent contractor or any other person or entity
shall be deemed to be a third party beneficiary of this Agreement.

Section 7.8Entire Agreement. This Agreement represents the entire agreement between the parties relating to the subject matter hereof. This Agreement alone fully and completely expresses the agreement of the parties relating
to the subject matter hereof. There are no other courses of dealing, understanding, agreements, representations or warranties, written or oral, except as set forth herein. This Agreement may not be amended or modified, except by a written agreement signed by all parties hereto.

Section 7.9Survival; Termination. The representations, warranties and covenants of the respective parties shall survive the Closing Date and the consummation of the transactions herein contemplated for 18 months.

Section 7.10Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument.

Section 7.11 Amendment or Waiver. Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law or in equity, and may be enforced concurrently herewith, and no
waiver by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing. At any time prior to the Closing Date, this Agreement may be amended by a written consent by all parties hereto, with respect to any of the terms contained herein (except with respect to any obligations or liabilities of the SVG shareholders, which may be amended by a written consent of all the parties to this Agreement),
and any term or condition of this Agreement may be waived or the time for performance hereof may be extended by a written consent by the party or parties for whose benefit the provision is intended.

Section 7.12Headings; Context. The headings of the sections and paragraphs contained in this Agreement are for convenience of reference only and do not form a part hereof and in no way modify, interpret or construe the meaning of
this Agreement.

Section 7.13Benefit. This Agreement shall be binding upon and shall inure only to the benefit of the parties hereto, and their permitted assigns hereunder. This Agreement shall not be assigned by any party without the prior written
consent of the other party.

Section 7.14Public Announcements. Except as may be required by law, neither party shall make any public announcement or filing with respect to the transactions provided for herein without the prior consent of the other party hereto.

Section 7.15Severability. In the event that any particular provision or provisions of this Agreement or the other agreements contained herein shall for any reason hereafter be determined to be unenforceable, or in violation of any
law, governmental order or regulation, such unenforceability or violation shall not affect the remaining provisions of such agreements, which shall continue in full force and effect and be binding upon the respective parties hereto.

Section 7.16Failure of Conditions; Termination. In the event of any of the conditions specified in this Agreement shall not be fulfilled on or before the Closing Date, either of the parties have the right either to proceed or, upon
prompt written notice to the other, to terminate and rescind this Agreement. In such event, the party that has failed to fulfill the conditions specified in this Agreement will be liable for the other party’s legal fees, as limited in this Section.  The election to proceed shall not affect the right of such electing party reasonably to require the other party to continue to use its efforts to fulfill the unmet conditions.

Section 7.17No Strict Construction. The language of this Agreement shall be construed as a whole, according to its fair meaning and intendment, and not strictly for or against either party hereto, regardless of who drafted or
was principally responsible for drafting the Agreement or terms or conditions hereof.

Section 7.18Execution Knowing and Voluntary. In executing this Agreement, the parties severally acknowledge and represent that each: (a) has fully and carefully read and considered this Agreement; (b) has been or has had the opportunity
to be fully apprized by its attorneys of the legal effect and meaning of this document and all terms and conditions hereof; (c) is executing this Agreement voluntarily, free from any influence, coercion or duress of any kind.

Section 7.19                      Amendment. At any time after the Closing Date, this Agreement may be amended by
a writing signed by both parties, 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 hereof may be extended by a writing signed by the party or parties for whose benefit the provision is intended.

Stock Purchase and Share Exchange Agreement

Page  of [INSERT PAGE NUMBER]

  

  

  

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers or representatives and entered into as of the date first above written.

 

	
Stream Horizon Studios, Inc.

 

 

 

/s/ Henry Liguari

____________________________________

By:  Henry Liguari

Its:  Director

 

 
	  	  
	  	  	  
	
Sierra Vista Group Limited

 

 

/s/  Chinese Signature

__________________________________

By:

Its:ex10-24.htm

    
      Exhibit
10.24

       

      THIS
NOTE, AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE (THE
“SECURITIES”)
HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED UNTIL
(i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”) SHALL
HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii) RECEIPT BY THE COMPANY OF AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT
REGISTRATION UNDER THE ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED
TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS
LEGEND SHALL BE ENDORSED UPON ANY NOTE ISSUED IN EXCHANGE FOR THIS NOTE AND ANY
SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE (EXCEPT AS OTHERWISE PROVIDED
BELOW).

       

      2ND
AMENDED AND RESTATED

      CONVERTIBLE
PROMISSORY NOTE

       

      
        	
                $172,653.00

              	
                November
      19, 2009 to be Effective September 23,
  2008 

              

      

       

      FOR VALUE
RECEIVED, ACIES
Corporation, a Nevada Corporation (the “Company”),
having an address of 3363 NE 163rd Street,
Suite 705, North Miami Beach, FL  33160, hereby promises to pay to the
order of Pinnacle Three
Corporation and/or assigns (the “Holder”),
at the offices of Holder at 1445 Windjammer Way, Hollywood, FL  33019,
or such other place as may be designated by Holder to the Company in writing,
the aggregate principal amount of One Hundred and Seventy-Two Thousand Six
Hundred and Fifty Three Dollars ($172,653), together with interest on the
unpaid principal amount hereof, upon the terms and conditions hereinafter set
forth.

       

      
        
          
            
              	
                      1.

                    	
                      Loan
      Amount.  This
      2nd Amended And Restated Convertible Promissory Note (this “Note”
      or “Promissory
      Note”) evidences the loan of One Hundred and Seventy-Two
      Thousand Six Hundred and Fifty Three Dollars ($172,653), from the
      Holder to the Company during the months of August and September 2008
      (hereinafter referred to as the “Loan”
      or the “Principal”),
      and amends, replaces and supersedes that certain 1st Amended Convertible
      Promissory Note entered into between the Company and Holder on or around
      September 23, 2009 (the “1st
      Amended Note”).  The effective date of this Note is
      September 23, 2008. The parties agree that the consideration for the
      Company agreeing to the terms and conditions of this Promissory Note, and
      the amendment of the 1st Amended Note, is that Holder has agreed to
      convert such Promissory Note into shares of the Company’s common stock (as
      provided below) immediately upon the parties’ execution of this
      Note.  The Holder further agrees to provide a Notice of
      Conversion as to the conversion of the full amount of the unpaid principal
      and interest on this Note to the Company immediately upon the parties’
      entry into this Note, which the parties agree is a required term and
      condition of this Note.

                    
	 
      	 
      	 
      
	
                      2.

                    	
                      Payment Terms.  The Company promises to pay to
      Holder the balance of Principal, together with accrued and unpaid
      interest, on  November 30, 2009 (the “Maturity
      Date”), unless this Note is earlier prepaid as herein provided or
      earlier converted into Common Stock (as hereinafter defined) of the
      Company pursuant to Section 3 hereof.  All payments hereunder shall
      be made in lawful money of the United States of America.  Payment
      shall be credited first to the accrued interest then due and payable and
      the remainder to Principal.

                    
	 
      	 
      	 
      
	
                      3.

                    	
                      Interest.  Interest
      on the outstanding portion of Principal of this Note shall accrue at a
      rate of eighteen percent (18%) per annum.  All computations of
      interest shall be made on the basis of a 360-day year for actual days
      elapsed.  Such interest shall accrue and be paid upon the Maturity
      Date of the Loan.

                    

            

          

        

      

      

      
        
          
            
              	 
      	
                      a.

                    	
                      Notwithstanding
      any provision in this Note, the total liability for payments of interest
      and payments in the nature of interest, including all charges, fees,
      exactions, or other sums which may at any time be deemed to be interest,
      shall not exceed the limit imposed by the usury laws of the State of
      Florida or the applicable laws of the United States of America, whichever
      shall be higher (the “Maximum
      Rate”).

                    

            

          

        

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 
      	
                b.

              	
                In
      the event the total liability for payments of interest and payments in the
      nature of interest, including, without limitation, all charges, fees,
      exactions or other sums which may at any time be deemed to be interest,
      which for any month or other interest payment period exceeds the Maximum
      Rate, all sums in excess of those lawfully collectible as interest for the
      period in question (and without further agreement or notice by, among or
      to the Holder the undersigned) shall be applied to the reduction of the
      principal balance, with the same force and effect as though the
      undersigned had specifically designated such excess sums to be so applied
      to the reduction of the principal balance and the Holder had agreed to
      accept such sums as a premium-free prepayment of principal; provided,
      however, that the Holder may, at any time and from time to time, elect, by
      notice in writing to the undersigned, to waive, reduce or limit the
      collection of any sums in excess of those lawfully collectible as interest
      rather than accept such sums as a prepayment of the principal
      balance.  The undersigned does not intend or expect to pay nor
      does the Holder intend or expect to charge, accept or collect any interest
      under this Note greater than the Maximum
Rate.

              

      

        

      
        
          	 
      	
                  c.

                	
                  If
      any payment of principal or interest on this Note shall become due on a
      Saturday, Sunday or any other day on which national banks are not open for
      business, such payment shall be made on the next succeeding business
      day.

                

        

      

       

      
        
          	
                  4.

                	
                  Option to Convert this
      Note.

                	 
      

        

      

       

      
        
          
            
              
                
                  	 
      	
                          a.

                        	
                          At
      any time prior to the Maturity Date or prior to payment in full by the
      Company, Holder shall have the option to convert the unpaid principal
      balance of this Promissory Note, together with all accrued interest, into
      shares of common stock (the “Shares”
      and the “Common
      Stock”) of the Company  (the “Conversion Option”) at the
      conversion price of $0.01 per common share (the “Conversion
      Price”);

                        
	 
      	 
      	 
      
	 
      	
                          b.

                        	
                          In
      order to exercise this Conversion Option, the Holder shall surrender this
      Promissory Note to the Company, accompanied by written notice of its
      intentions to exercise this Conversion Option, which notice shall set
      forth the principal amount of this Promissory Note to be converted and
      shall be in the form of Exhibit A,
      attached hereto (“Notice
      of Conversion”). Within ten (10) business days of the Company’s
      receipt of the Notice of Conversion and this Note, the Company shall
      deliver or cause to be delivered to the Holder, written confirmation that
      the Shares have been issued in the name of the Holder;

                        
	 
      	 
      	 
      
	 
      	
                          c.

                        	
                          In
      the event of the exercise of the Conversion Option, Holder shall cooperate
      with the Company to promptly take any and all additional actions required
      to make Holder a stockholder of the Company including, without limitation,
      in connection with the issuance of the Shares, such representations as to
      financial condition, investment intent and sophisticated investor status
      as are reasonably required by counsel for the Company. Holder recognizes
      that the Shares issued upon conversion of this Note will constitute “restricted
      securities” under the Securities
      Act of 1933, as amended, and the resale of which will be subject to the
      limitations of such rules;

                        
	 
      	 
      	 
      
	 
      	
                          d.

                        	
                          The
      Company shall at all times take any and all additional actions as are
      necessary to maintain the required authority to issue the Shares to the
      Holder, in the event the Holder exercises its rights under the Conversion
      Option;

                        
	 
      	 
      	 
      
	 
      	
                          e.

                        	
                          Payment
      to Company prior to Holder’s delivery of a Notice of Conversion shall
      terminate Holder’s option to
convert;

                        

                

              

            

          

        

      

      

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      
        
          
            	 
      	
                    f.

                  	
                    Conversion Calculations: No
      Fractional Shares. Conversion calculations pursuant to this Section 4 shall be rounded to the nearest
      whole share of Common Stock, and no fractional shares shall be issuable by
      the Company upon conversion of this Note. Conversion of this Note shall be
      deemed payment in full of this Note and this Note shall thereupon be
      cancelled;

                  
	 
      	 
      	 
      
	 
      	
                    g.

                  	
                    Anti-Dilution Protection.
      If the Company at any time or from time to time on or after the effective
      date of the  issuance of this Note (the “Original Issuance Date”)
      effects a subdivision of its outstanding Common Stock, the Conversion
      Price then in effect immediately before that subdivision shall be
      proportionately decreased, and conversely, if the Company at any time or
      from time to time on or after the Original Issuance Date combines its
      outstanding shares of Common Stock into a smaller number of shares, the
      Conversion Price then in effect immediately before the combination shall
      be proportionately increased;
and

                  

          

        

      

       

      
        
          
            	 
      	
                    h.

                  	
                    No
      Encumbrances. All Shares of Common Stock which may be issued
      upon conversion of this Note will, upon issuance by the Company in
      accordance with the terms of this Note, be validly issued, free from all
      taxes and liens with respect to the issuance thereof (other than those
      created by the holders), free from all pre-emptive or similar rights and
      be fully paid and non
assessable.

                  

          

        

      

        

      
        
          	
                  5.

                	
                  Redemption.  This
      Note may be redeemed by the Company by payment of the entire Principal and
      interest outstanding under this Note in cash to Holder.  The Company
      must provide notice to Holder not less than thirty (30) days prior to
      affecting such redemption.  During the period from providing of such
      notice to Holder and the Company affecting the redemption, the Company may
      cancel such redemption by providing notice of such cancellation to
      Holder.

                

        

      

       

      
        
          	 
      	
                  a.

                	
                  This
      Note may be prepaid in whole or in part at any time without
      penalty.

                
	 
      	 
      	 
      
	 
      	
                  b.

                	
                  Any
      partial prepayment shall be applied to any principal Loan amount
      outstanding and shall not postpone the due date of any subsequent monthly
      installment or change the minimum amount of such monthly
      installment.

                
	 
      	 
      	 
      
	 
      	
                  c.

                	
                  The
      Holder may apply any and all amounts received by it for application to the
      Loan evidenced hereby in such order and manner as the Holder in its
      discretion may determine. The undersigned understands and agrees that if
      for any reason the undersigned fails to pay any amount due under this Note
      on or before the date when due, the Holder shall be entitled to damages
      for the detriment caused thereby, but that it is extremely difficult and
      impractical to ascertain the extent of such
  damages.

                

        

      

       

      
        
          	
                  6.

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

                

        

      

       

      
        
          
            	 
      	
                    a.

                  	
                    The
      execution and delivery by the Company of this Note (i) are within the
      Company’s corporate power and authority, and (ii) have been duly
      authorized by all necessary corporate action.  Further, the
      undersigned is a duly authorized representative of the Company and has
      been authorized by a resolution of the board of Directors of the Company
      to exercise any and all documents necessary to effectuate the transaction
      contemplated hereby.

                  

          

        

      

      

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      
        	 
      	
                b.

              	
                This
      Note is a legally binding obligation of the Company, enforceable against
      the Company in accordance with the terms hereof, except to the extent that
      (i) such enforceability is limited by bankruptcy, insolvency,
      reorganization, moratorium or other laws relating to or affecting
      generally the enforcement of creditors’ rights, and (ii) the availability
      of the remedy of specific performance or in injunctive or other equitable
      relief is subject to the discretion of the court before which any
      proceeding therefore may be
brought.

              

      

      

      
        
          	
                  7.

                	
                  Representations, Warranties and
      Covenants of Holder. Holder represents and warrants to the Company,
      and agrees, as follows:

                

        

      

        

      
        	 
      	
                a.

              	
                This
      Note and any Conversion Shares issuable upon conversion of this Note are
      being acquired by Holder for its own account for investment and not with a
      view to, or for sale in connection with, any distribution
      thereo.

              

      

        

      
        
          
            
              
                	 
      	
                        b.

                      	
                        Holder
      is an “accredited
      investor” within the meaning of Rule 501 under the Securities
      Act.

                      
	 
      	 
      	 
      
	 
      	
                        c.

                      	
                        Holder
      has sufficient knowledge and experience in financial and business matters
      and is capable of evaluating the risks and merits of Holder’s investment
      in the Company; Holder believes that Holder has received or had access to
      all information Holder considers necessary or appropriate to make an
      informed investment decision with respect to this Note; and Holder is able
      financially to bear the risk of losing Holder’s full investment in this
      Note.

                      
	 
      	 
      	 
      
	 
      	
                        d.

                      	
                        Holder
      understands that this Note and any Shares converted pursuant hereto have
      not been registered under the Securities Act or registered or qualified
      under any the securities laws of any state or other jurisdiction, are
      “restricted securities,”
      and cannot be resold or otherwise transferred unless they are registered
      under the Securities Act, and registered or qualified under any other
      applicable securities laws, or an exemption from such registration and
      qualification is available. Prior to any proposed transfer of this Note or
      any Shares, Holder shall, among other things, give written notice to the
      Company of its intention to effect such transfer, identifying the
      transferee and describing the manner of the proposed transfer and, if
      requested by the Company, accompanied by (i) investment representations by
      the transferee similar to those made by Holder in this Section 7 and (ii)
      an opinion of counsel satisfactory to the Company to the effect that the
      proposed transfer may be effected without registration under the
      Securities Act and without registration or qualification under applicable
      state or other securities laws. Each certificate for any Shares shall bear
      a legend to the foregoing effect.

                      
	 
      	 
      	 
      
	 
      	
                        e.

                      	
                        The
      Holder has read and reviewed the Company’s latest periodic and current
      report filings on the Securities and Exchange Commission’s EDGAR webpage
      at www.sec.gov,
      including the risk factors, results of operations and financial statements
      included
therein;

                      

              

            

          

        

      

      

      
        
          
            
              	
                      8.

                    	
                      Certain
      Waivers by the Company. 
      Except as expressly provided otherwise in this Note, the Company and every
      endorser or guarantor, if any, of this Note waive presentment, demand,
      notice, protest and all other demands and notices in connection with the
      delivery, acceptance, performance, default or enforcement of this Note,
      and assent to any extension or postponement of the time of payment or any
      other indulgence, to any substitution, exchange or release of collateral
      available to Holder, if any, and to the addition or release of any other
      party or person primarily or secondarily
liable.

                    

            

          

        

      

      

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      
        
          
            
              	
                      9.

                    	
                      Assignment
      by Holder.  If and
      whenever this Note shall be assigned and transferred, or negotiated,
      including transfers to substitute or successor trustees, the holder hereof
      shall be deemed the “Holder”
      for all purposes under this Note.

                    
	 
      	 
      
	
                      10.

                    	
                      Amendment.  This Note may not be changed
      orally, but only by an agreement in writing, signed by the party against
      whom enforcement of any waiver, change, modification or discharge is
      sought.

                    

            

          

        

      

       

      
        
          
            
              	
                      11.

                    	
                      Costs
      and Fees.  Anything
      else in this Note to the contrary notwithstanding, in any action arising
      out of this Agreement, the prevailing party shall be entitled to collect
      from the non-prevailing party all of its attorneys’ fees.  For
      the purposes of this Note, the party who receives or is awarded a
      substantial portion of the damages or claims sought in any proceeding
      shall be deemed the “prevailing”
      party and attorneys’ fees shall mean the reasonable fees charged by an
      attorney or a law firm for legal services and the services of any legal
      assistants, and costs of litigation, including, but not limited to, fees
      and costs at trial and appellate levels.

                    
	 
      	 
      
	
                      12.

                    	
                      Governing
      Law.  It is the
      intention of the parties hereto that the terms and provisions of this Note
      are to be construed in accordance with and governed by the laws of the
      State of Florida, except as such laws may be preempted by any federal law
      controlling the rate of interest which may be charged on account of this
      Note.

                    

            

          

        

      

        

      
        
          
            
              
                
                  	
                          13.

                        	
                          No
      Third Party Benefit.  The
      provisions and covenants set forth in this Agreement are made solely for
      the benefit of the parties to this Agreement and are not for the benefit
      of any other person, and no other person shall have any right to enforce
      these provisions and covenants against any party to this
      Agreement.

                        
	 
      	 
      
	
                          14.

                        	
                          Jurisdiction,
      Venue and Jury Trial Waiver.  The parties hereby consent and
      agree that, in any actions predicated upon this Note, venue is properly
      laid in Miami-Dade County, Florida and that the Circuit Court in and for
      Miami-Dade County, Florida, shall have full subject matter and personal
      jurisdiction over the parties to determine all issues arising out of or in
      connection with the execution and enforcement of this
  Note.

                        
	 
      	 
      
	
                          15.

                        	
                          Interpretation.  The
      term “Company”
      as used herein in every instance shall include the Company’s successors,
      legal representatives and assigns, including all subsequent grantees,
      either voluntarily by act of the Company or involuntarily by operation of
      law and shall denote the singular and/or plural and the masculine and/or
      feminine and natural and/or artificial persons, whenever and wherever the
      contexts so requires or properly applies.  The term “Holder”
      as used herein in every instance shall include the Holder’s successors,
      legal representatives and assigns, as well as all subsequent assignees,
      endorsees and holders of this Note, either voluntarily by act of the
      parties or involuntarily by operation of law.  Captions and
      paragraph headings in this Note are for convenience only and shall not
      affect its interpretation.

                        
	 
      	 
      
	
                          16.

                        	
                          WAIVER
      OF JURY TRIAL.  THE
      COMPANY AND HOLDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
      THE RIGHT EITHER MAY HAVE TO TRIAL BY JURY IN RESPECT TO ANY LITIGATION
      BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE AND
      ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY
      COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS, (WHETHER VERBAL OR
      WRITTEN) OR ACTIONS OF EITHER PARTY.  THE COMPANY ACKNOWLEDGES
      THAT THIS WAIVER OF JURY TRIAL IS A MATERIAL INDUCEMENT TO THE HOLDER IN
      EXTENDING CREDIT TO THE COMPANY, THAT THE HOLDER WOULD NOT HAVE EXTENDED
      SUCH CREDIT WITHOUT THIS JURY TRIAL WAIVER, AND THAT THE COMPANY HAS BEEN
      REPRESENTED BY AN ATTORNEY OR HAS HAD AN OPPORTUNITY TO CONSULT WITH AN
      ATTORNEY IN CONNECTION WITH THIS JURY TRIAL WAIVER AND UNDERSTANDS THE
      LEGAL EFFECT OF THIS
WAIVER.

                        

                

              

            

          

        

      

      

      
        
          
            
              	
                      17.

                    	
                      Copies and
      Signatures.  A copy
      of this Promissory Note signed by one party and faxed to another party
      shall be deemed to have been executed and delivered by the signing party
      as though an original.  A photocopy of this Promissory Note
      shall be effective as an original for all
  purposes.

                    

            

          

        

      

      

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

      IN
WITNESS WHEREOF, the undersigned has caused this Convertible Promissory Note to
be executed and delivered by a duly authorized officer as of the date first
above written, to be effective as of the effective date set forth
above.

       

      
        
          
            	 
      	
                    ACIES CORPORATION, a
      Nevada Corporation

                  
	 
      	 
      
	 
      	 
      
	 
      	
                    By: /s/
      Oleg Firer

                  
	 
      	
                    Oleg
      Firer, President

                  

          

        

      

      

      Holder:

       

      Pinnacle
Three Corporation

      
By: /s/ Leon Goldstein

      Its:
President

      Printed
Name: Leon
Goldstein

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      EXHIBIT
A

      

      Conversion Election
Form

      

      

      

      November
19, 2009

      

      Acies
Corp.

      3363 NE
163rd Street,
Suite 705

      North
Miami Beach, FL  33160

      

      Re: 
Conversion of
Promissory Note

      

      Gentlemen:

      

      You are
hereby notified that, pursuant to, and upon the terms and conditions of that
certain 2nd Amended Convertible Promissory Note of Acies Corp. (the “Company”),
made in favor of Pinnacle Three
Corporation, in the principal amount of $172,653 (the “Note”),
held by us, we hereby elect to exercise our Conversion Option (as such term in
defined in the Note), in connection with $207,350 of the amount currently owed
under the Note (which amount includes the full and entire amount of the
principal balance and accrued and unpaid interest on the Note), effective as of
the date of this writing, and which conversion will in effect retire and
completely satisfy such Note, which amount will convert into 20,735,000 shares
of the Company’s restricted common stock (“Conversion”).

      

      I further
represent and warrant that I am authorized to act and bind the undersigned
entity, and that the Conversion has been duly approved by the undersigned
entity.

      

      Please
issue certificate(s) for the applicable shares of the Company’s common stock
issuable upon the Conversion, in the name of the person provided
below.

      

       

      Very
truly yours,

                                                                        

      /s/ Leon
Goldstein

      Leon
Goldstein

      President

      

      

      Please
issue certificate(s) for Common Stock as follows:

      

      Pinnacle Three
Corporation

      Name

      

      1445 Windjammer Way,
Hollywood, FL  33019

      Address

      

      ____________________________

      Social
Security No. of Shareholder

      

      

      

      
        
          
          

        

        
          -7-

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