Document:

f8k060410ex10ii_chinagrn.htm

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this "Agreement")  is entered into this 7th day of June, 2010, by and between China Green, Inc., a Delaware company (the "Company") and Wei Guo Wang, with an address at Room 301 No32, Lane 500, Xianxia Road, Shanghai, PRC (the "Executive") (collectively, the “Parties”).

 

WHEREAS, the Company wishes to employ the Executive as its Chief Financial Officer upon the terms and conditions set forth in this Agreement and the Executive is willing to accept employment subject to the terms and conditions set forth below.

 

NOW, THEREFORE, in consideration of the foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:

 

1.      Employment.

 

During the Employment Term (as defined below), the Executive shall serve as the Chief Financial Officer of the Company. In this capacity the Executive shall be responsible to lead and manage all of the operations of the Company that are related to finance and capital market, including, but is not limited to, providing expertise in making financial plan and strategy, and working with the Company’s U.S. legal counsel and auditors to implement, monitor and oversee the Company’s compliance with the requirements of the Sarbanes-Oxley Act, Securities Act of the 1933, Exchange Act of the 1934, and the listing rules of any national exchange on which its shares become listed and to advise the board of directors (the “Board”) with respect to the Company’s internal controls and procedures, including disclosure controls and procedures.

During the Employment Term, the Executive shall report directly to the Chief Executive Officer and the Board. The Executive shall obey the lawful directions of the Chief Executive Officer and the Board to whom the Executive reports and shall use his diligent efforts to promote the interests of the Company and to maintain and promote the reputation thereof.

During the Employment Term, the Executive shall use his best efforts to perform his duties under this Agreement and shall devote all of his business time, energy and skill in the performance of his duties with the Company. The Executive shall not during the Employment Term (except as a representative of the Company or with consent in writing of the Board) be directly or indirectly engaged or concerned in any other business activity.

2. Employment Term. Subjectto Section 5 herein, the term of employment of the Executive under this Agreement shall start on June 7, 2010 and end on December 31, 2011 (the “Initial Employment Term”). Subject to Section 5 herein, at the end of the Initial Employment Term this Agreement shall be automatically extended for an additional one-year period (the “Additional Term”) unless either party to this Agreement elects not to extend this Agreement with a written notice at least 30 days prior to the expiration of the Employment Term. The amount of compensation payable to the Executive during any extension of the Initial Term shall be discussed and agreed upon by both parties 30 days before the Agreement termination date.  The Initial Term and any Additional Term shall be referred to herein as the "Employment Term." 
 

3.  Compensation

 

(a) Base Salary.  In consideration of the services to be rendered hereunder, the Company hereby agrees to pay the Executive an annual based compensation of Twenty Thousand Dollars ($20,000) payable in equal monthly installment (the “Base Salary”).

(b)  Bonus and Incentive Plan.  With respect to each full fiscal year during the Employment Term, the Executive shall be eligible to earn an annual bonus (the "Annual Bonus") in such amount, if any, as determined in the sole discretion of the Board up to a maximum of 100% of the Base Salary. In addition, the Executive shall be eligible to participate in the Company's bonus and other incentive compensation plans and programs (if any) for the Company's senior executives at a level commensurate with his position and may be entitled to bonus payments in addition to the amount set forth hereinabove.

 

 

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4.  Benefits.

 

(a)  Benefit Plans. The Executive shall be eligible to participate in any Executive benefit plan of the Company, including, but not limited to, equity, pension, thrift, profit sharing, medical coverage, education, or other retirement benefits that the Company has adopted or may adopt, maintain or contribute to the benefit of its senior executives, at a level commensurate with the Executive’s positions, subject to satisfying the applicable eligibility requirements. The Company may at any time or from time to time amend, modify, suspend or terminate any employee benefit plan, program or arrangement for any reason in its sole discretion.

 

(b)  Vacation and Holidays. The Executive shall be entitled to an annual paid vacation in accordance with the Company's policy applicable to senior executives from time to time in effect, but in no event less than three (3) weeks per calendar year (as prorated for partial years), which vacation may be taken at such times as the Executive elects with due regard to the needs of the Company.  The Executive shall also be entitled to paid Holidays and sick days in accordance with the policy of the Company. The carry-over of vacation days shall be in accordance with the Company's policy applicable to senior executives from time to time in effect.

 

(c)  Business and Entertainment Expenses. Upon presentation of appropriate documentation, the Executive shall be reimbursed for all reasonable and necessary business and entertainment expenses incurred in connection with the performance of his duties hereunder, all in accordance with the Company's expense reimbursement policy applicable to senior executives from time to time in effect.

 

(d)  Automobile Allowance. Executive shall be entitled to an automobile allowance in the amount of $1,000 per month during the term of this Agreement, which shall be paid on the first day of each calendar month.

 

5. Termination. Executive’s employment and the Employment Term shall terminate on the first of the following to occur:

 

(a)  Disability. If the Company determines in good faith that the Disability of the Executive has occurred during the Employment Term (pursuant to the definition of Disability set forth below), it may give to the Executive written notice in accordance with Section 9 of this Agreement of its intention to terminate the Executive Employment. In such event, the Executive’s employment shall terminate effective on the thirtieth (30th) day following receipt of such notice by the Executive, provided that within 30 days after such receipt, the Executive shall not have returned to full-time performance of the Executive’s duties. For purposes of this Agreement, "Disability" shall mean a determination  by the Company in accordance with applicable law that due to a physical or mental injury, infirmity or incapacity, the Executive is unable to perform the essential functions of his job with or without accommodation for 180 days (whether or not consecutive) during any 12-month period.

 

(b)  Death.  The Executive’s employment shall automatically terminate on the date of death of the Executive during the Employment Term.

 

(c)  Cause.  The Company may immediately terminate the Executive’s employment upon written notice of termination by the Company to the Executive for Cause. "Cause" shall mean, as determined by the Board (or its designee) (1) conduct by the Executive in connection with his employment duties or responsibilities that is fraudulent, unlawful or grossly negligent; (2) the willful misconduct of the Executive; (3) the willful and continued failure of the Executive to perform the Executive's duties with the Company (other than any such failure resulting from incapacity due to physical or mental illness); (4) the commission by the Executive of any felony or any crime involving moral turpitude; (5) violation of any material policy of the Company or any material provision of the Company's code of conduct, employee handbook or similar documents; or (6) any material breach by the Executive of any provision of this Agreement or any other written agreement entered into by the Executive with the Company.

 

(d) Termination other than for Cause.  The Company shall have the right to terminate  the  Executive's  employment  hereunder  for any  reason at any time, including  for any  reason  that  does  not  constitute  Cause,  subject  to the consequences of such termination as set forth in this Agreement.

 

 

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(e)  Resignation for Good Reason. The Executive may voluntarily terminate his employment hereunder for Good Reason on the 60th day after the delivery of a written notice to the Company. For the purpose of this Agreement, “Good Reason” shall mean:

 

(i) the assignment of the Executive to a position in which the Executive’s authority, duties and responsibilities are materially diminished from the authority, duties or responsibilities as contemplated by Section 1 of this Agreement or any other  action taken by the Company or its affiliated companies which results in a material , diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated and insubstantial action not taken in bad faith and which is remedies by the Company promptly after receipt of notice thereof given by the Executive;

 

(ii)  any failure by the Company or its affiliated companies to comply with any of the provisions of Section 3 and 4 of this Agreement, other than an isolated, insubstantial and inadvertent  failure not occurring in bad faith and which is remedies by the Company promptly after receipt of notice thereof given by the Executive;

 

(iii) any material change in the Executive's reporting responsibilities;

 

However, in no event shall the Executive be considered to have terminated his employment for "Good Reason" unless and until the Company receives written notice from the Executive identifying in reasonable detail the acts or omissions constituting "Good Reason" and the provision of this Agreement relied upon, and such acts or omissions are not cured by the Company to the reasonable satisfaction of the Executive within 30 days of the Company's receipt of such notice.

 

                        (f) Resignation other than for Good Reason. The Executive may voluntarily terminate his employment hereunder for any reason other than Good Reason on the 60th day after the delivery a written notice to the Company.

 

6. Consequences of Termination.

 

(a)  Disability.  Upon termination of the Employment Term because of the Executive's Disability, the Company shall pay or provide to the Executive (1) any unpaid Base Salary and any accrued vacation and holidays through the date of termination; (2) any unpaid bonus accrued with respect to the fiscal year ending on or preceding the date of termination; (3) reimbursement for any unreimbursed expenses properly incurred through the date of termination; and (4) all other payments or benefits to which the Executive may be entitled under the terms of any applicable employee benefit plan, including medical benefits, program or arrangement (collectively, the “Accrued Benefits”).

(b)  Death. Upon the termination of the Employment Term because of the Executive's death, the Executive's estate shall be entitled to any Accrued Benefits.

 

(c)  Termination for Cause. Upon the termination of the Employment Term by the Company for cause or by either party in connection with a failure to renew this Agreement, the Company shall pay to the Executive any Accrued Benefits.

 

(d)  Termination without Cause. Upon the termination of the Employment Term by the Company without Cause, the Company shall pay or provide to the Executive the Accrued Benefits plus additional one (1) year of Base Salary and medical benefits pursuant to Section 3 and 4 of this Agreement.

 

(e)  Resignation for Good Reason. In the event the Executive voluntarily terminates his employment hereunder for Good Reason, the Company shall pay or provide to the Executive the Accrued Benefits plus additional one (1) year of Base Salary and medical benefits pursuant to Section 3 and 4 of this Agreement.

 

 

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(f) Resignation other than for Good Reason. In the event the Executive voluntarily terminates his employment hereunder other than for Good Reason, the Company shall pay or provide to the Executive any Accrued Benefits.

 

7. Change in Control.  If In the event of a Change in Control, as defined below, the Company shall pay to the Executive the Accrued Benefits that Executive would have been entitled to receive through the expiration of the Employment Term, whether or not issued as of the date of the Change in Control.  

For the purpose of this Agreement, a “Change in Control" shall be deemed to have occurred if, during the term of this Agreement: (i) the beneficial ownership of at least 50% of the Company's voting securities or all or substantially all of the assets of the Company shall have been acquired, directly or indirectly by a single person or a group of affiliated persons, other than the Executive or a group in which the Executive is a member, or (ii) as the result of or in connection with any cash tender offer, exchange offer, sale of assets, merger, consolidation or other business combination of the Company with another corporation or entity and the new Board is comprised of majority directors chosen or elected by the members of the new/combined entity who were not members of the Company before such cash tender offer, exchange offer, sale of assets, merger, consolidation or other business combination of the Company with another corporation or entity.

 

8. No Assignment. This Agreement is personal to each of the Parties.  Except as provided below, no Party may assign or delegate any rights or obligations hereunder without first obtaining the written consent of the other Party hereto; provided, however, that the Company may assign this Agreement to any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company.

 

9. Notices. For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (1) on the date of delivery if delivered by hand, (2) on the date of transmission, if delivered by confirmed facsimile, (3) on the first business day following the date of deposit if delivered by guaranteed overnight delivery service, or (4) on the fourth business day following the date delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

If to the Executive:

 

Wei Guo Wang

Room 301 No32,

Lane 500, Xianxia Road,

Shanghai, PRC

 

If to the Company:

 

China Green, Inc.

Attn.: Chi Yip Tai

    Room 3601, the Centre, Queen’s Road no.99

    Central, Hong Kong

 

With a copy (which does not constitute a notice) to:

 

Anslow & Jaclin, LLP

195 Route 9 South, Suite 204

Manalapan, New Jersey, 07726

Attention: Richard I. Anslow, Esq.

Tel.:732-409-1212

Fax: (732) 577-1188

 

 

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or to such other address as either Party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

	
10.  

	
Protection of the Company’s Business.

 

(a) Confidentiality. The Executive acknowledges that during the course of his employment by the Company (prior to and during the Employment Term) he has and will occupy a position of trust and confidence. The Executive shall hold in a fiduciary capacity for the benefit of the Company and shall not disclose to others or use, whether directly or indirectly, any Confidential Information regarding the Company, except (i) as in good faith deemed necessary by the Executive to perform his duties hereunder, (ii) to enforce any rights or defend any claims hereunder or under any other agreement to which the Executive is a party, provided that such disclosure is relevant to the enforcement of such rights or defense of such claims and is only disclosed in the formal proceedings related thereto, (iii) when required to do so by a court of law, by any governmental agency having supervisory authority over the business of the Company or by any administrative or legislative body (including a committee thereof) with jurisdiction to order him to divulge, disclose or make accessible such information, provided that the Executive shall give prompt written notice to the Company of such requirement, disclose no more

 

information than is so required, and cooperate with any attempts by the Company to obtain a protective order or similar treatment, (iv) as to such Confidential Information that shall have become public or known in the Company's industry other than by the Executive's unauthorized disclosure, or (v) to the Executive's spouse, attorney and/or his personal tax and financial advisors as reasonably necessary or appropriate to advance the Executive's tax, financial and other personal planning (each an "Exempt Person"), provided, however, any disclosure or use of Confidential Information by an Exempt Person shall be deemed to be a breach of this Section 10 by the Executive. The Executive shall take all reasonable steps to safeguard the Confidential Information and to protect it against disclosure, misuse, espionage, loss and theft.  The Executive understands and agrees that the Executive shall acquire no rights to any such Confidential Information. "Confidential Information" shall mean information about the Company, its subsidiaries and affiliates, and their respective clients and customers that is not disclosed by the Company and that was learned by the Executive in the course of his employment by the Company, including, but not limited to, any proprietary knowledge, trade secrets, data and databases, formulae, sales, financial, marketing, training and technical information, client, customer, supplier and vendor lists, competitive strategies, computer programs and all papers, resumes, and records (including computer records) of the documents containing such Confidential Information.

 

(b) Non-Competition. During the Employment Term and for the one-year period following the termination of the Executive's employment for any reason (the "Restricted Period"), the Executive shall not, directly or indirectly, without the prior written consent of the Company, provide employment (including self-employment), directorship, consultative or other services to any business, individual, partner, firm, corporation, or other entity that competes with any business conducted by the Company or any of its subsidiaries or affiliates on the date of the Executive's termination of employment or within one year of the Executive's termination of employment in the geographic locations where the Company and its subsidiaries or affiliates engage or propose to engage in such business (the "Business"). Nothing herein shall prevent the Executive from having a passive ownership interest of not more than 2% of the outstanding securities of any entity engaged in the Business whose securities are traded on a national securities exchange.

 

(c) Non-Solicitation of Employees. The Executive recognizes that he possesses and will possess confidential information about other employees of the Company and its subsidiaries and affiliates relating to their education, experience, skills, abilities, compensation and benefits, and inter-personal relationships with customers of the Company and its subsidiaries and affiliates. The Executive recognizes that the information he possesses and will possess about these other employees is not generally known, is of substantial value to the Company and its subsidiaries and affiliates in developing their business and in securing and retaining customers, and has been and will be acquired by him because of his business position with the Company. The Executive agrees that, during the Restricted Period, he will not, directly or indirectly, (i) solicit or recruit any employee of the Company or any of its subsidiaries or affiliates (a "Current Employee") or any person who was an employee of the Company or any of its subsidiaries or affiliates during the twelve (12) month period immediately prior to the date the Executive's employment terminates (a "Former Employee") for the purpose of being employed by him or any other entity, or (ii) hire any Current Employee or Former Employee.

 

 

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(d) Non-Solicitation of Customers. The Executive agrees that, during the Restricted Period, he will not, directly or indirectly, solicit or attempt to solicit (i) any party who is a customer or client of the Company or its subsidiaries, who was a customer or client of the Company or its subsidiaries at any time during the twelve (12) month period immediately prior to the date the Executive's employment terminates or who is a prospective customer or client that has been identified and targeted by the Company or its subsidiaries for the purpose of marketing, selling or providing to any such party any services or products offered by or available from the Company or its subsidiaries, or (ii) any supplier or vendor to the Company or any subsidiary to terminate, reduce or alter negatively its relationship with the Company or any subsidiary or in any manner interfere with any agreement or contract between the Company or any subsidiary and such supplier or vendor.

 

(e) Property. The Executive acknowledges that all originals and copies of materials, records and documents generated by him or coming into his possession during his employment by the Company or its subsidiaries are the sole property of the Company and its subsidiaries ("Company Property").  During the Employment Term, and at all times thereafter, the Executive shall not remove, or cause to be removed, from the premises of the Company or its subsidiaries, copies of any record, file, memorandum, document, computer related information or equipment, or any other item relating to the business of the Company or its subsidiaries, except in furtherance of his duties under this Agreement. When the Executive's employment with the Company terminates, or upon request of the Company at any time, the Executive shall promptly deliver to the Company all copies of Company Property in his possession or control.

 

                        (f) Non-Disparagement.  Executive shall not, and shall not induce others to, disparage the Company or its subsidiaries or affiliates or their past and present officers, directors, employees or products. "Disparage" shall mean making comments or statements to the press, the Company's or its subsidiaries' or affiliates' employees or any individual or entity with whom the Company or its subsidiaries or affiliates has a business relationship which would adversely affect in any manner (1) the business of the Company or its subsidiaries or affiliates (including any products or business plans or prospects), or (2) the business reputation of the Company or its subsidiaries or affiliates, or any of their products, or their past or present officers, directors or employees.

 

(g) Cooperation. Subject to the Executive's other reasonable business commitments, following the Employment Term, the Executive shall be available to cooperate with the Company and its outside counsel and provide information with regard to any past, present, or future legal matters which relate to or arise out of the business the Executive conducted on behalf of the Company and its subsidiaries and affiliates, and, upon presentation of appropriate documentation, the Company shall compensate the Executive for any out-of-pocket expenses reasonably incurred by the Executive in connection therewith.

 

(h) Equitable Relief and Other Remedies. The Executive acknowledges and agrees that the Company's remedies at law for a breach or threatened breach of any of the provisions of this Section 10 would be inadequate and, in recognition of this fact, the Executive agrees that, in the event of such a breach or threatened or attempted breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to obtain equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy which may then be available. In addition, without limiting the Company's remedies for any breach of any restriction on the Executive set forth in this Section 10, except as required by law, the Executive shall not be entitled to any payments set forth in Section 6 hereof if the Executive has breached the covenants applicable to the Executive contained in this Section 10, the Executive will immediately return to the Company any such payments previously received under Section 6 upon such a breach, and, in the event of such breach, the Company will have no obligation to pay any of the amounts that remain payable by the Company under Section 6.

 

(i) Reformation. If it is determined by a court of competent jurisdiction in any state that any restriction in this Section 10 is excessive in duration or scope or is unreasonable or unenforceable under the laws of that state, it is the intention of the parties that such restriction may be modified or amended by the court to render it enforceable to the maximum extent permitted by the law of that state.  The Executive acknowledges that the restrictive covenants contained in this Section 10 are a condition of this Agreement and are reasonable and valid in temporal scope and in all other respects.

 

 

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(j) Liability. Notwithstanding the provisions in this Section 10, the Executive shall not be liable for any mistakes of fact, errors of judgment, for losses sustained by the Company or any subsidiary or for any acts or omissions of any kind, unless caused by the negligence or willful or intentional misconduct of the Executive or any person or entity acting for or on behalf of the Executive.

 

(k) Survival of Provisions. The obligations contained in this Section 10 shall survive in accordance with their terms the termination or expiration of the Executive's employment with the Company and shall be fully enforceable thereafter.

 

11. Indemnification. The Executive shall be indemnified to the extent permitted by the Company's organizational documents and to the extent allowed by law.  The Company shall continue to carry Director’s and Officer’s Liability Insurance in accordance with that which has been approved by the Company’s Board in such amounts and at limits no less than the current policy limits and amounts now in effect.

 

12. Section Headings and Interpretation. The section headings used in this Agreement are included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement. Expressions of inclusion used in this agreement are to be understood as being without limitation.

 

13.  Severability. The provisions of this Agreement shall be deemed severable and the invalidity of unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

 

14. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same Agreement.

 

15. Governing Law and Venue. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the state of Delaware without regard to its conflicts of law principles. The Parties agree irrevocably to submit to the exclusive jurisdiction of the courts located in the state of Delaware, for the purposes of any suit, action or other proceeding brought by any Party arising out of any breach of any of the provisions of this Agreement and hereby waive, and agree not to assert by way of motion, as a defense or otherwise, in any such suit, action, or proceeding, any claim that it is not personally subject to the jurisdiction of the above-named courts, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper, or that the provisions of this Agreement may not be enforced in or by such courts.

 

16. Entire Agreement. This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which is not expressly set forth in this Agreement.

 

17. Waiver and Agreement.  No provision of this Agreement may be modified, amended, waived or discharged unless such waiver, modification, amendment or discharge is agreed to in writing and signed by the Executive and such officer or director as may be designated by the Board. No waiver by either Party at any time of any breach by the other Party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other Party shall be deemed a waiver or similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

 

18. Withholding.  The Company may withhold from any and all amounts payable under this Agreement such federal, state, local and foreign taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

 

  

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19.  Authority and Non-Contravention. The Executive represents and warrants to the Company that he has the legal right to enter into this Agreement and to perform all of the obligations on his part to be performed hereunder in accordance with its terms and that he is not a party to any agreement or understanding, written or oral, which could prevent him from entering into this Agreement or performing all of his obligations hereunder.

 

20. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument.

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page Follows]

 

 

 

 

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

 

	  	
CHINA GREEN, INC.

	  	  
	  	
/s/ Chi Yip Tai

	  	
By:  Chi Yip Tai  

	  	
Title: Chief Executive Officer

	  	  
	  	  
	  	  
	  	
EXECUTIVE

	  	  
	  	
/s/Wei Guo Wang

	  	
By: Wei Guo Wang

 

 

 

 

 

9f8k052810ex10i_muscato.htm

Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

THIS ASSET PURCHASE AGREEMENT (this “Agreement”), is entered into on this 28th day of May, 2010, by and among M2 ReInc II, LLC, a Florida company (the “Purchaser”), and M2 Global, an Antigua corporation (the “Seller”).

 

RECITALS

 

A. The Seller is in the pre-paid card business (the “Business”);

 

B. The Purchaser desires to purchase from the Seller, and the Seller desires to sell to the Purchaser, all of its right, title and interest in and to the Purchased Assets (as defined below);

 

C. The Board of Directors of the Seller has determined that proposed sale of the Purchased Assets to Purchaser is both expedient and in the best interests of the Seller and its creditors and has recommended that the Seller’s shareholders approve the proposed transaction;

 

NOW, THEREFORE, in consideration of the mutual promises and representations and subject to the terms and conditions herein contained, and other good and valuable consideration, had and received, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE 1: RECITALS; DEFINITIONS

 

The recitals set forth above are hereby incorporated in and made a part of this Agreement.

 

“Affiliate” of any Person means any person directly or indirectly controlling, controlled by, or under common control with, any such Person and any officer, director or controlling person of such Person.

 

“Agreement” has the meaning set forth in the preamble to this Agreement.

 

“Ancillary Agreements” means the Bill of Sale and each agreement, document, instrument or certificate contemplated by this Agreement or to be executed by the Purchaser or the Seller in connection with the consummation of the transactions contemplated by this Agreement, in each case only as applicable to the relevant party or parties to such Ancillary Agreement, as indicated by the context in which such term is used.

 

“Business” has the meaning set forth in the recitals to this Agreement.

 

“Closing” has the meaning set forth in Section 4.1.

 

“Closing Date” has the meaning set forth in Section 4.1.

 

“General Enforceability Exceptions” has the meaning set forth in Section 5.3.

 

“Governmental Authority” means any government, political subdivision or regulatory body, whether federal, state, local or foreign, or any agency or instrumentality of any such government or political subdivision or regulatory authority, or any federal, state, local or foreign court or arbitrator.

 

  

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“Law” means any law, statute, code, ordinance, regulation or other requirement of any Governmental Authority.

 

“Lien” means any mortgage, lien, pledge, encumbrance, security interest, claim, charge, defect in title or other restriction.

 

“Material Adverse Change” means any event, change or effect that is, or is reasonably likely to become, materially adverse to the condition (financial or otherwise), properties, assets, liabilities, business, operations, results of operations or prospects of such Person or to such Person’s ability to perform its obligations under this Agreement or any Ancillary Agreement.

 

“Order” means any order, judgment, injunction, award, decree, ruling, charge or writ of any Governmental Authority.

 

“Ordinary Course of Business” shall mean the ordinary course of business consistent with past custom and practice (including with respect to quantity and frequency).

 

“Permit” means any environmental permit, license, approval, consent, or authorization issued by a Governmental Authority.

 

“Person” means any individual, sole proprietorship, partnership, corporation, limited liability company, unincorporated society or association, trust, or other entity.

 

 “Purchase Price” has the meaning set forth in Section 3.1.

 

“Purchased Assets” has the meaning set forth in Section 2.1.

 

“Purchaser” has the meaning set forth in the preamble to this Agreement.

 

 “Seller” has the meaning set forth in the preamble to this Agreement.

 

ARTICLE 2: PURCHASE AND SALE OF ASSETS

 

2.1 Assets to be Transferred.  At the Closing, the Purchaser shall purchase from the Seller, and the Seller shall sell, transfer, assign, convey and deliver to the Purchaser, all of Seller’s right, title and interest to all assets, rights and properties listed on Schedule 2.1  (collectively, the “Purchased Assets”).

 

  

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ARTICLE 3: PURCHASE PRICE; LICENSE

 

3.1 Purchase Price. At Closing, in consideration for the Purchased Assets, the Purchaser shall pay or cause to be paid to the Seller by bank wire transfer of immediately available funds to an account designated in writing by the Seller, an amount in cash equal to One Hundred Dollars ($100.00), (the “Purchase Price”).

 

3.2 Allocation of Purchase Price. The Purchase Price shall be allocated among the Purchased Assets as set forth on Schedule 2.1 attached hereto.  Each of the parties agree that it will not take a position that is in any way inconsistent with such allocation on any income tax return, before any government agency charged with the collection of any income tax or in any judicial proceeding.

 

ARTICLE 4: CLOSING AND DELIVERIES

 

4.1 Closing. The closing of the purchase and sale of the Purchased Assets  (the “Closing”) shall take place at the offices of the Purchaser on the date hereof (the date that the Closing takes place is referred to herein as the “Closing Date”).

 

4.2 Deliveries by the Seller. At the Closing (unless specifically provided otherwise herein), the Seller shall deliver to the Purchaser the following items:

 

(a) possession of the Purchased Assets;

 

(b) copies of resolutions of the Board of Directors and shareholders of Seller approving the execution and delivery of this Agreement and the Ancillary Agreements, and the consummation of the transactions contemplated hereby and thereby, certified by an officer of Seller.

 

(c) a copy of the Bill of Sale, in the form of Exhibit A attached hereto, duly executed by the Seller;

 

(d) all contracts, files and other data and documents relating to the Purchased Assets in each case which are in Seller’s possession or control and are readily available to Seller without any inquiry or investigation.

 

4.3 Deliveries by the Purchaser.  At the Closing, the Purchaser shall deliver to the Seller the following item:

 

(a) the Purchase Price payable as set forth in Section 3.1; and

 

(b) such other documents and instruments as the Seller may reasonably request to consummate the transactions contemplated hereby.

 

ARTICLE 5: REPRESENTATIONS AND WARRANTIES OF THE SELLER

 

The Seller hereby represents and warrants to the Purchaser, except as set forth in the Schedules, that the following representations and warranties are true and correct, as of the date hereof, and will be, as of the Closing Date, true and correct, except as set forth on the Schedules attached hereto and made a part hereof:

 

  

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5.1Existence and Good Standing.  Seller is a corporation duly incorporated, validly existing and in good standing under the laws of Antigua.

 

5.2Power.  Seller has the corporate power and authority to own, operate and lease its properties and assets as and where currently owned, operated and leased.  The Seller has the requisite power and authority to execute, deliver and perform fully its respective obligations under this Agreement and the Ancillary Agreements.

 

5.3 Enforceability.  The execution, delivery and performance of this Agreement and the Ancillary Agreements, and the consummation of the transactions contemplated hereby and thereby, have been duly and validly authorized by all necessary action on the part of the Seller and constitute the valid and legally binding obligations of the Seller, enforceable against the Seller in accordance with their terms, except as may be limited by (a) applicable bankruptcy, reorganization, insolvency, moratorium or other similar Laws affecting the enforcement of creditors’ rights generally from time to time in effect, (b) the availability of equitable remedies (regardless of whether enforceability is considered in a proceeding at Law or in equity), and (c) applicable Laws related to the conduct of the Business (collectively, the “General Enforceability Exceptions”).

 

5.4No Conflict.  Neither the execution of this Agreement or the Ancillary Agreements, nor the performance by the Seller of its obligations hereunder or thereunder will violate or conflict with Seller’s Certificate of Incorporation, Bylaws or other organizational or governing document, as applicable, or any Order.  Seller has provided Purchaser with true, correct and complete copies of Seller’s Certificate of Incorporation and Bylaws.

 

5.5No Actions.  No agreements that affect the Purchased Assets, with the noted exception of the assignment, on May 10, 2010, by M2 Financial Ltd of its interests with SP Payments LTD to First Pay Ltd. and the execution of any agreements associated with the sale of First Pay Ltd and any paperwork or agreements required to liquidate Altair Financial, have been signed by Darren Rennick since January 2010.

 

ARTICLE 6:REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

The Purchaser hereby represents and warrants to the Seller as follows:

 

6.1Existence and Good Standing.  The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida.

 

6.2Power.  The Purchaser has the corporate power and authority to execute, deliver and perform fully its obligations under this Agreement and the Ancillary Agreements.

 

  

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6.3        Enforceability. The execution, delivery and performance of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary action on the part of the Purchaser and constitute the valid and legally binding obligations of the Purchaser enforceable against the Purchaser in accordance with their term, except as may be limited by the General Enforceability Exceptions.

 

6.4        No Conflict. Neither the execution of this Agreement or the Ancillary Agreements, nor the performance by the Purchaser of its obligations hereunder or thereunder will violate or conflict with the Purchaser’s Articles of Incorporation or Bylaws or any Law or Order.

 

6.5        Consents. No consent, approval or authorization of any third party or Governmental Authority is required in connection with the execution and delivery by the Purchaser of this Agreement or the Ancillary Agreements or the consummation of the transactions contemplated hereby or thereby.

 

6.6        Acknowledgement. Except as otherwise set forth or provided for in Article 5, Purchaser agrees that the Purchased Assets are being sold by Seller and accepted by Purchaser on an “As Is, Where Is” basis without any representations or warranties of any kind, whether express or implied, by Seller as to their condition, nature, quantity, quality, sufficiency or suitability or fitness for any particular use or purpose.

 

ARTICLE 7:  CONFIDENTIALITY; PUBLIC DISCLOSURE

 

7.1        Confidentiality.  From and after the Closing, the Seller shall not, except as permitted by the License Agreement in connection with the sale of Purchased Assets, or on behalf of the Purchaser, directly or indirectly, use any of the Confidential Information (as defined below) for the Seller’s own purposes or without the prior written consent of the Purchaser, for the benefit of any other person, firm, corporation, partnership or other entity or disclose any Confidential Information to any person, firm, corporation, partnership or other entity. As used herein, the term “Confidential Information” means (i) all of the Seller’s confidential business information, trade secrets, (as defined under applicable statute or common law) innovations and inventions, expertise and know-how, customer information, pricing information, vendor information, intellectual property and other non-public information concerning the Seller’s Business (as defined below) and (ii) except as set forth below, any and all information relating to the terms of the transactions contemplated by this Agreement. “Confidential Information” does not include information which:  (i) is in or enters the public domain or is or becomes generally known in the industry without breach of the confidentiality obligations in this Agreement; or (ii) is received by the Seller from a third party without any breach of any obligation of confidentiality in respect of such information provided that the receipt of such information is not subject to any obligations of confidentiality.  Notwithstanding the foregoing, the Seller may disclose Confidential Information in the following circumstances:  (A) disclosure to third parties to the extent that the Confidential Information is required to be disclosed pursuant to a court order or as otherwise required by law, provided that the Seller promptly notifies the Purchaser as early as practicable upon learning of such requirement; and (B) disclosure to legal counsel for the Seller, accountants or professional advisors to the extent necessary for them to advise upon the interpretation or enforcement of this Agreement.

 

  

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  SELLER’S COVENANTS

 

8.1        Access and Information.  Upon the Closing, the Seller shall not prevent the Purchaser and its authorized representatives (including but not limited to lawyers, accountants, bankers and other advisors) from full access to the properties and shall permit the Purchaser and its authorized representatives to take possession of the Purchased Assets and to inspect and make copies of all documents, records and information with respect to the Purchased Assets as the Purchaser and its authorized representatives shall reasonably request.  Notwithstanding the foregoing, to the extent that any of the Purchased Assets are colocated or commingled, the Seller and the Purchaser shall use commercially reasonable efforts during to divest any such colocated or commingled assets prior to distribution of such assets to the respective parties in accordance with the terms of this Agreement.

 

ARTICLE 9: MISCELLANEOUS

 

9.1        Expenses. All parties hereto shall bear their respective expenses incurred or to be incurred in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.

 

9.2        Mutual Releases. In and for consideration of the provisions of Paragraph 3.1, the Seller and the Purchaser, for themselves, and for their respective agents, successors, predecessors, and assigns, hereby generally release and discharge each other and their respective agents, successors, predecessors, assigns, shareholders, officers, directors and agents from any and all sums of money, accounts, actions, suits, proceedings, claims, counterclaims, setoffs, liabilities, demands, and causes of action whatsoever, whether known or unknown, from the beginning of time through and including the date of this Agreement. The Purchaser further agrees that in and for consideration of the provisions of Paragraph 3.1 that it will with immediate effect rescind or cancel any ongoing contractual arrangement, either written or verbal, between the Seller, any company affiliated with the Seller and the Purchaser or any company or individual affiliated with the Purchaser.

 

9.3        No Assignment.  The rights and obligations of the parties hereunder may not be assigned without the prior written consent of the other party hereto.  Notwithstanding the previous sentence, the Purchaser may without the consent of the Seller assign its rights under this Agreement to any lender of the Purchaser or to any Affiliate of the Purchaser.

 

9.4        Headings.  The headings contained in this Agreement are included for purposes of convenience only, and shall not affect the meaning or interpretation of this Agreement.

 

9.5        Integration, Modification and Waiver.  This Agreement, together with the Exhibit, Schedules and certificates or other instruments delivered hereunder, constitutes the entire agreement between the parties hereto with respect to the Purchased Assets and associated representations, warranties and releases relating to the Purchased Assets and supersedes all prior understandings of the parties.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by each of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed to be or shall constitute a continuing waiver.  No waiver shall be binding unless executed in writing by the party making the waiver.

 

  

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9.6        Construction.  The parties have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.  Any reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise.  The word “including” shall mean including without limitation.  Any reference to the singular in this Agreement shall also include the plural and vice versa.  The word “knowledge” or words “known to Seller” shall mean the actual knowledge of Darren Rennick.

 

9.7        Severability.  If any provision of this Agreement or the application of any provision hereof to any party or circumstance shall, to any extent, be adjudged invalid or unenforceable, the application of the remainder of such provision to such party or circumstance, the application of such provision to other parties or circumstances, and the application of the remainder of this Agreement shall not be affected thereby.

 

9.8        Notices.  All notices and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when delivered in person or when dispatched by electronic facsimile transfer (if confirmed in writing by mail simultaneously dispatched) or one business day after having been dispatched by a nationally recognized overnight courier service to the appropriate party at the address or facsimile number specified below:

 

If to the Purchaser:

 

	 	M2 ReIncII, LLC
	 	380 E. State Road 434, Suit 109
	 	Altamonte Springs, FL 32714
	 	Attn: President

 

 

	If to the Seller:	M2 Global Ltd
	 	Global Commerce Centre
	 	Old Parham Road, St. John’s, Antigua
	 	Facsimile No.:  (268) 562-6277
	 	Attention:  Darren M. Rennick, President

 

Any party hereto may change its address or facsimile number for the purposes of this Section 9.8 by giving notice as provided herein.

 

  

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9.9Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of Antigua without regard to principles of conflicts of law. By execution and delivery of this Agreement, each of the parties submits to the exclusive jurisdiction, including both personal and subject matter jurisdiction, of the Court in Antigua as the exclusive proper forum in which to adjudicate any case or controversy arising hereunder. Each party hereto irrevocably waives any objection on the grounds of forum venue, forum non-convenes or any similar grounds and irrevocably consents to service of process by mail or in any manner permitted by applicable law.

 

 9.10Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

 

 

[Signature page to follow]

 

  

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IN WITNESS WHEREOF, the parties have executed this Asset Purchase Agreement as of the day and year first above written.

 

 

PURCHASER

M2 ReInc II, LLC

By:                                                                      

Joseph Adams

Its:  Chief Executive Officer

SELLER

M2 Global Ltd

By: /s/ Darren Rennick                                                                    

Darren Rennick

Its:  President

  

9

  

 

Exhibit A

Form of Bill of Sale

Bill of Sale

WHEREAS, M2 ReInc II, LLC, a Florida company  (the “Purchaser”), and M2 Global Ltd, an Antiguan corporation (the “Seller”) have entered into an Asset Purchase Agreement, dated as of May 28, 2010 (the “Agreement”), providing for the sale, transfer and assignment by Seller to Purchaser of all of Seller’s right, title and interest in, to and under the Purchased Assets (as such term is defined in the Agreement).

NOW, THEREFORE, in consideration of the payments made pursuant to the Agreement and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Seller hereby sells, transfers and assigns to Purchaser all of Seller’s right, title and interest in, to and under the Purchased Assets. Delivery of an executed counterpart of this Bill of Sale by facsimile transmission or by electronic transmission in PDF format shall be as effective as delivery of a manually executed counterpart hereof. This Bill of Sale shall be governed by and interpreted in accordance with the internal laws of Antigua.

Dated as of May 28, 2010

SELLER

M2 Global Ltd.

By: /s/ Darren Rennick                                     

Darren Rennick

Its:  President

 

  

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       Schedule 2.1

	
(a)             

	
All Internet electronic addresses, uniform resource locators and alphanumeric designations owned by the Seller and all registrations for any of the foregoing, including, without limitation, any and all rights to the following names and domain names:  M2 Europe, M2 Europe Ltd., M2 Financial, M2 Financial Ltd., M2 ReInc, M2 ReInc. LLC, , M2 International, M2 International Ltd., iKobo, ikobo.com, iikobo.com, iikobo.org, ikobo.net, ikobocustomercare.com, ikobocustomercare.org, ikobocustomercare.net, ikobogifts.com, ikobogifts.net, ikoboinc.com, ikoboo.com., ikoboo.net, ikoboo.org, ikobosupport.com, ikobosupport.net, and ikobosupport.org.  Seller shall not claim any rights associated with the following domain names:  m2-financial.com, m2-international.com, and m2-reinc.com.

 

	
(b)             

	
All stock the Seller owns of M2 Europe Ltd., M2 Financial Ltd., M2 ReInc, LLC, and M2 International Ltd.

 

	
 

Company

	
Number of 

Common Shares / Units

 

	
Purchase Price 

Allocation

	
 

M2 Europe Ltd. Shares

	
 

57,560,000

	
 

$25.00

	
 

M2 Financial Ltd. Shares

	
1000

	
 

$25.00

	
 

M2 ReInc LLC Shares

	
 

100

	
 

$25.00

	
M2 International Ltd. Shares

	
1000

	
 

$25.00

 

	
(c)             

	
All the hardware assets that were originally acquired from Symmetrex, Inc. via a Bill of Sale dated March 10, 2009

 

	
(d)             

	
Any claim to the patent pending (or its application) for Dynamic Card Validation Value (or also known as SAFE) and associated trademarks.

 

11

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