Document:

Unassociated Document

KOHLBERG CAPITAL

 

AMENDED AND RESTATED NON-EMPLOYEE DIRECTOR PLAN

 

1. Purpose and Certain Defined Terms

 

The purpose of this Amended and Restated Non-Employee Director Plan (the “Plan”) is to advance the interests of the Company (as defined below) by providing for the grant to Non-Employee Directors (as defined below) of Restricted Shares (as defined below) (the “Awards”) to the extent permitted by exemptive or other relief that may be granted by the Securities and Exchange Commission (the “Commission”). The Plan is an amendment and restatement of the 2008 Non-Employee Director Plan (the “Prior Plan”) as adopted on February 5, 2008, and is effective as described in Section 3 below. At all times during such periods as the Company qualifies or intends to qualify as a “business development company” under the Investment Company Act of 1940, as amended (the “1940 Act”), the terms of the Plan shall be construed so as to conform to the share-based compensation requirements applicable to “business development companies” under the 1940 Act. Any Non-Employee Director selected to receive an Award under the Plan is referred to as a “participant.”

 

The following terms, when used in the Plan, will have the meanings and be subject to the provisions set forth below:

 

“Board” means the board of directors of the Corporation.

 

“Company” means the Corporation.

 

“Continuous Service” means a participant’s uninterrupted service with the Company as a Non-Employee Director.

 

“Corporation” means Kohlberg Capital Corporation, a Delaware corporation.

 

“Employee Plan” means the Company’s 2006 Equity Incentive Plan, as amended from time to time.

 

“Executive Compensation Plans” means the Plan, together with any Company executive compensation plan that did, does, or may in the future, exist.

 

“Non-Employee Director” means any director of the Company who is not an employee or officer of the Company.

 

“Restricted Shares” means an award of Shares for so long as the Shares remain subject to restrictions requiring that they be forfeited to the Corporation if specified conditions are not satisfied.

 

“Shares” means the common stock, $.01 par value per share, of the Corporation.

 

“Shareholders” means the shareholders of the Corporation.

 

2. Administration

 

The Plan shall be administered by the Board unless and until it delegates administration to a committee as provided herein. The Board shall have discretionary authority, subject to the express provisions of the Plan, (a) subject to Section 9(b), to grant Awards to such Eligible Persons (defined below in Section 5 hereof) as the Board may select; (b) to prescribe the form or forms of any instruments evidencing Awards and any other instruments required under the Plan and to change such forms from time to time; (c) to adopt, amend, and rescind rules and regulations for the administration of the Plan; and (d) to interpret the Plan and to decide any questions and settle all controversies and disputes that may arise in connection with the Plan. Such determinations of the Board shall be conclusive and shall bind all parties. Subject to Section 9(a) hereof, the Board shall also have the authority, both generally and in particular instances, to waive compliance by a participant with any obligation to be performed by him or her under an Award, to waive any condition or provision of an Award, and to amend or cancel any Award (and if an Award is canceled, to grant a new Award on such terms as the Board shall specify), provided that the Board may not take any action with respect to an outstanding Award that would adversely affect the rights of the participant under such Award without such participant’s consent. Nothing in the preceding sentence shall be construed as limiting the power of the Board to make adjustments required by Sections 4(d) and 6(e) hereof or by applicable law.

 

  

  

  

 

The Board may, in its discretion, delegate some or all of its powers with respect to the Plan to a committee (the “Committee”), in which event all references (as appropriate) to the Board hereunder shall be deemed to refer to the Committee.

 

Determinations, interpretations and constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons.

 

3. Effective Date and Term of Plan

 

The Board adopted the Prior Plan on February 5, 2008 and amended and restated the Prior Plan on December 19, 2008. The Plan shall become effective on the date (the “Effective Date”) on which it is approved by the Shareholders of the Company subject to the Company previously having received an order of the Commission that permits such Award or grants. For the avoidance of doubt, all option Awards made under the Prior Plan as in force prior to the Effective Date are governed in all respects by the terms of the Prior Plan and shall be construed accordingly.

 

No Awards shall be granted under the Plan after the fifth anniversary of the Effective Date, but Awards granted prior to the Effective Date may extend beyond that date.

 

4. Shares Subject to the Plan

 

(a) Number of Shares.  Subject to adjustment as provided in Section 4(d), the aggregate number of Shares that may be the subject of Awards granted under the Plan shall be 100,000. If any Restricted Share Award granted under the Plan is forfeited, the number of Shares as to which such Restricted Share Award was granted shall be available for future grants.

 

(b) Shares to be Delivered.  Shares delivered under the Plan shall be authorized but unissued Shares, or if the Board so decides in its sole discretion, previously issued Shares acquired by the Company and held in its treasury. Any Shares acquired by the Company will be acquired in accordance with the 1940 Act, including Section 23 of the 1940 Act. No fractional Shares shall be delivered under the Plan.

 

(c) Limits on Number of Awards.  The maximum amount of Restricted Shares that may be issued under the Executive Compensation Plans will be 10% of the outstanding Shares on the Effective Date, plus 10% of the number of Shares issued or delivered by the Company (other than pursuant to the Executive Compensation Plans) during the term of the Plan. No one person shall be granted more than 25% of the Restricted Shares reserved for issuance under this Plan. The amount of voting securities that would result from the exercise of all of the Company’s outstanding warrants, options and rights, together with any Restricted Shares issued pursuant to the Executive Compensation Plans, at the time of issuance shall not exceed 25% of the outstanding voting securities of the Company (excluding the Restricted Shares), except that if the amount of voting securities that would result from the exercise of all the Company’s outstanding warrants, options and rights issued to the Company’s directors, officers and employees (not including any warrants, options or rights issued to Shareholders of the Company generally), together with any Restricted Shares issued pursuant to the Executive Compensation Plans, would exceed 15% of the outstanding voting securities of the Company (excluding the Restricted Shares), then the total amount of voting securities that would result from the exercise of all outstanding warrants, options and rights, together with any Restricted Shares issued pursuant to the Executive Compensation Plans, at the time of issuance shall not exceed 20% of the outstanding voting securities of the Company (excluding the Restricted Shares).

 

(d) Changes in Shares.  In the event of a Share dividend, Share split or combination of Shares, recapitalization, or other change in the Shares, the number and kind of Shares or securities of the Company subject to Awards then outstanding or subsequently granted under the Plan, the maximum number of Shares that may be delivered under the Plan, and other relevant provisions shall be appropriately adjusted by the Board, whose determination shall be binding on all persons.

 

The Board may also adjust the number of Shares subject to outstanding Awards and the terms of outstanding Awards, to take into consideration material changes in accounting practices or principles, extraordinary dividends, consolidations or mergers (except those described in Section 6(e)), acquisitions or dispositions of securities or property, or any other event if it is determined by the Board that such adjustment is appropriate to avoid distortion in the operation of the Plan. References in the Plan to Shares will be construed to include any units, any stock or any other securities resulting from an adjustment pursuant to this Section 4(d).

 

  

  

  

 

5. Eligibility for Awards

 

Persons eligible to receive Awards under the Plan (“Eligible Persons”) shall be Non-Employee Directors.

 

6. Terms and Conditions of Awards

 

(a) Awards.  Each Award shall contain such terms and conditions as the Board shall deem appropriate. No Awards of Restricted Shares shall be granted prior to the Effective Date.

 

(b) Amounts; Vesting of Awards.  Subject to Section 9(b), on and after the Effective Date, each Non-Employee Director who is a director of the Company on the date of each annual meeting of Shareholders or meeting in lieu of the annual meeting of Shareholders (including any annual meeting or meeting in lieu of the annual meeting occurring on the Effective Date), shall automatically be granted 1,000 Restricted Shares on the date of each such annual meeting of Shareholders during the term of the Plan, or if no such meeting be held in a year, then on the anniversary of the prior annual meeting or meeting in lieu of the annual meeting. Such Awards shall immediately vest as to one-half of the Restricted Share grant and as to the remaining one-half of the Restricted Share grant on the earlier of (i) the first anniversary of such grant, or (ii) the date immediately preceding the next annual meeting of Shareholders (or meeting in lieu of the annual meeting of Shareholders), so that vesting for one hundred percent (100%) of the Restricted Share grant shall occur one year after the date of grant, provided that the participant is then and since the date of grant has continuously been a Non-Employee Director (subject to Section 7 hereof). Subject to Section 9(b), if the Effective Date is a date other than the date of annual meeting of Shareholders, each Non-Employee Director who is a director of the Company on the Effective Date shall automatically be granted on the Effective Date a pro rata portion of the Restricted Shares Award (i.e., each Non-Employee Director will receive a grant of Restricted Shares equal to the product of (x) the number of full months remaining until the next annual meeting of Shareholders (or meeting in lieu of the annual meeting of Shareholders) divided by twelve and (y) 1,000). One-half of such pro rata grant will vest immediately and the remaining one-half of such pro rata grant will vest on the earlier of (i) the first anniversary of the preceding annual meeting of Shareholders (or the preceding meeting in lieu of the annual meeting of Shareholders), or (ii) the date immediately preceding the next annual meeting of Shareholders (or the next meeting in lieu of the annual meeting of Shareholders); provided that the participant is then and since the date of such pro-rata grant has continuously been a Non-Employee Director (subject to Section 7 hereof). In addition, subject to Section 9(b), a Non-Employee Director who is appointed to serve on the Board outside of the annual election cycle shall automatically be granted a pro rata portion of the Restricted Share Award (if the date of such appointment is on or after the Effective Date) on the date of such appointment to the Board (i.e., such Non-Employee Director will receive a grant of Restricted Shares equal to the product of (x) the number of full months, if any, remaining until the next annual meeting of Shareholders (or the next annual meeting in lieu of the annual meeting of Shareholders) divided by twelve and (y) 1,000). One-half of such pro rata grant will vest immediately and the remaining one-half of such pro rata grant will vest on the earlier of (i) the first anniversary of the preceding annual meeting of Shareholders (or the preceding meeting in lieu of the annual meeting of Shareholders), or (ii) the date immediately preceding the next annual meeting of Shareholders (or meeting in lieu of the annual meeting of Shareholders), provided that the participant is then and since the date of such pro-rata grant has continuously been a Non-Employee Director (subject to Section 7 hereof).

 

(c) Rights as Shareholder.  A participant shall not have the rights of a Shareholder with regard to Awards under the Plan except as to Shares actually received by him or her under the Plan.

 

(d) Nontransferability of Awards.  No unvested Restricted Shares may be transferred. Vested Restricted Shares may be sold, assigned, pledged, hypothecated, encumbered, or transferred or disposed of in any other manner, in whole or in part, only in compliance with the terms, conditions and restrictions as set forth in the governing instruments of the Company, applicable federal and state securities laws or any other applicable laws or regulations and the terms and conditions hereof.

 

(e) Mergers, etc.  To the extent permitted under the 1940 Act, the following provisions shall apply in the event of a Covered Transaction (as defined below).

 

(1)  Subject to subparagraph (2) below, all outstanding Awards to the extent not fully vested (including Awards subject to conditions not yet satisfied or determined) will be forfeited, as of the effective time of the Covered Transaction (as defined in subparagraph (3) herein), provided that the Board may in its sole discretion on or prior to the effective date of the Covered Transaction remove any conditions or restrictions on any Award; or

 

  

  

  

 

(2)  With respect to an outstanding Award held by a participant who, following the Covered Transaction, will be employed by or otherwise providing services to an entity which is a surviving or acquiring entity in the covered transaction or any affiliate of such an entity, the Board may at or prior to the effective time of the Covered Transaction, in its sole discretion and in lieu of the action described in subparagraph (1) above, arrange to have such surviving or acquiring entity or affiliate assume any Award held by such participant outstanding hereunder or grant a replacement Award which, in the judgment of the Board is substantially equivalent to any Award being replaced.

 

(3)  For purposes of this Section 6(e), a “Covered Transaction” is a (i) Share sale, consolidation, merger, or similar transaction or series of related transactions in which the Company is not the surviving corporation or which results in the acquisition of all or substantially all of the Company’s then outstanding Shares by a single person or entity or by a group of persons and/or entities acting in concert; (ii) a sale or transfer of all or substantially all the Company’s assets, or (iii) a dissolution or liquidation of the Company. Where a Covered Transaction involves a tender offer that is reasonably expected to be followed by a merger described in clause (i) (as determined by the Board), the Covered Transaction shall be deemed to have occurred upon consummation of the tender offer.

 

(f) Compliance with Law; Commission Approval.  At all times during such periods as the Company qualifies or intends to qualify as a “business development company,” no Award may be granted under the Plan if the grant or terms of such Award would cause the Company to violate any provision of the 1940 Act applicable to “business development companies,” and, if approved for grant, such an Award will be void and of no effect. Subject to Section 9(b), the grants of Awards under the Plan will be automatic and will not be changed without shareholder approval.

 

7. Termination of Continuous Service

 

Unless the Board expressly provides otherwise, immediately upon the cessation of the participant’s service as a Non-Employee Director (unless upon such termination or within 90 days thereafter the participant becomes an officer or employee of the Company or rejoins the Board as a Non-Employee Director) all Awards, to the extent not already vested, will be forfeited. If a participant ceases providing services as a Non-Employee Director but within 90 days of such cessation becomes an officer or employee of the Company or rejoins the Board as a Non-Employee Director, such participant shall vest in any unvested Restricted Shares on the later of (i) the next annual shareholders meeting (in accordance with Section 6(b) hereof) or (ii) the date on which such participant becomes an officer or employee of the Company or rejoins the Board as a Non-Employee Director.

 

8. Rights

 

Neither the adoption of the Plan nor the grant of Awards shall confer upon any participant any right to continue as a Non-Employee Director (or in any other capacity) of the Company, its parent, or any subsidiary or affect in any way the right of the Company, its parent, or a subsidiary to terminate the participant’s relationship at any time. Except as specifically provided by the Board in any particular case, the loss of existing or potential profit in Awards granted under this Plan shall not constitute an element of damages in the event of termination of the relationship of a participant even if the termination is in violation of an obligation of the Company to the participant by contract or otherwise.

 

9. Discontinuance, Cancellation, Amendment, and Termination; Board Review

 

(a) The Board may at any time or times amend the Plan or any outstanding Award for any purpose which may at the time be permitted by law, and may at any time terminate the Plan as to any future grants of Awards; provided that, except as otherwise expressly provided in the Plan the Board may not, without the participant’s consent, alter the terms of an Award so as to affect adversely the participant’s rights under the Award, unless the Board expressly reserved the right to do so at the time of the Award. Any amendments to the Plan shall be conditioned upon approval of Shareholders and the Commission only to the extent, if any, such approval is required by law (including the Code), as determined by the Board.

 

(b) The Board shall review the Plan from time to time and at least annually, its reviews to include an assessment of the potential impact that Awards made or scheduled to be made under the Plan may have on the Company’s earnings and net-asset value per Share. The Board is authorized to take appropriate steps to ensure that the granting of Awards would not have an effect contrary to the interests of Shareholders, including the authority to limit or eliminate the automatic granting of additional Awards pursuant to Section 6(b). The Board shall maintain adequate records of any reviews conducted pursuant to this Section 9(b). For the avoidance of doubt, any action by the Board pursuant to this Section 9(b) that would affect an already outstanding Award shall, to that extent, be subject to the limitations of Section 9(a).

 

  

  

  

 

10. Waiver of Jury Trial

 

By accepting an Award under the Plan, each participant waives any right to a trial by jury in any action, proceeding or counterclaim concerning any rights under the Plan and any Award, or under any amendment, waiver, consent, instrument, document or other agreement delivered or which in the future may be delivered in connection therewith, and agrees that any such action, proceedings or counterclaim shall be tried before a court and not before a jury. By accepting an Award under the Plan, each participant certifies that no officer, representative, or attorney of the Company has represented, expressly or otherwise, that the Company would not, in the event of any action, proceeding or counterclaim, seek to enforce the foregoing waivers.

 

11. Legal Conditions on Delivery of Shares

 

The Company will not be obligated to deliver any Shares pursuant to the Plan or to remove any restriction from Shares previously delivered under the Plan until: (i) the Company is satisfied that all legal matters in connection with the issuance and delivery of such Shares have been addressed and resolved; (ii) if the outstanding Shares are at the time of delivery listed on any stock exchange or national market system, the Shares to be delivered have been listed or authorized to be listed on such exchange or system upon official notice of issuance; and (iii) all conditions of the Award have been satisfied or waived. If the sale of Shares has not been registered under the Securities Act of 1933, as amended (the “Securities Act”), the Company may require, as a condition to exercise of the Award, such representations or agreements as counsel for the Company may consider appropriate to avoid violation of the Securities Act. The Company may require that certificates evidencing Shares issued under the Plan bear an appropriate legend reflecting any restriction on transfer applicable to such Shares, and the Company may hold the certificates pending lapse of the applicable restrictions.ACQUISITION AGREEMENT

           This ACQUISITION AGREEMENT is entered into and made effective as of the 15th day of July, 2011 (the “Closing Date”)  by and between GBS Enterprises, Inc., a Nevada corporation ("GBS" or “Buyer”); IDC Global, Inc., a Delaware corporation ("IDC”); and the shareholders of IDC Global, Inc. (“SHR”), as listed in Exhibit A, owning 100% of the issued and outstanding shares of IDC (combined as the “Seller” and represented by William M. Lyerly, the SHR representative), and the Management Shareholders as marked in Exhibit A and represented by Jan C. Daiker, the Management Shareholder Representative.

WHEREAS, Seller is the one hundred (100) percent controlling shareholder of IDC, and upon the terms and conditions set forth below, Seller desires to transfer all of the shares of IDC owned by Seller to Buyer, such that, following such transaction, IDC will be a wholly-owned subsidiary of Buyer; and

           NOW, THEREFORE, in consideration of the mutual covenants, agreements, representations and warranties contained in this Agreement, the Parties hereto agree as follows:

1.    SALE AND PURCHASE OF SHARES.

1.1      PURCHASE.  Subject to the terms and conditions herein set forth, GBS hereby agrees to purchase and Seller hereby agrees to sell one hundred percent (100%) of the issued and outstanding shares of IDC (“IDC Shares”) to GBS.

1.2      CONSIDERATION.  The consideration for the IDC Shares shall be:

1.2.1      Share Consideration.  The share consideration to be issued to SHR at Closing of the acquisition for the IDC Shares shall be 800,000 shares of common stock of GBS (“GBS Common Shares”) all of which shall be restricted for trading for a 6 month period after the Closing Date (provided, however, the GBS Common Shares will be restricted for trading for one year in event GBS has not timely filed quarterly and annual reports with the U.S. Securities and Exchange Commission. The GBS Common Shares to be distributed as listed in Exhibit H. There are no restrictions on the sale by SHR or its assignees in a private placement; provided, however, any private sales shall comply with the United States Securities Act of 1933, as amended.

1.2.2      Cash Consideration. The cash consideration to be paid by GBS to SHR on the Closing Date shall be (USD) $750,000.00 (Seven Hundred Fifty Thousand United States Dollars). The aforementioned amount shall be paid into the IDC bank account for immediate repayment of all Notes Payable as listed in Exhibit B and the remainder for immediate pro rata distribution to the SHR as listed in Exhibit C.  IDC bank details are attached as Exhibit D

 

1.2.3      Management Shareholder Component. The Management Shareholder Component  of shall be 80,000 shares of common stock of GBS (“GBS Management Common Shares”) all of which shall  be restricted for trading for a period of 12 month after signing this agreement.  The distribution of the GBS Management Shares  shall be paid by the Buyer to those Management Shareholders listed in Exhibit A.

1.2.4      IDC Accounting/Legal Fees.  GBS will reimburse IDC up to $25,000.00 (Twenty-Five Thousand United States Dollars) of IDC’s accounting and legal fees (“Professional Fees”) related to this acquisition and Agreement.  Professional Fees over the above amount will be the responsibility of the Shareholders of IDC.

1.2.5      Key Personnel Signing Bonus. Exhibit G details the signing bonus for IDC personnel developed in collaboration between GBS and the IDC Management Representative.  In aggregate this amounts to US$35,000.00 (Thirty Five   Thousand United States Dollars) signing bonus (“Signing Bonus”) to be paid as part of the July 31, 2011 payroll.

  

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2.  REPRESENTATIONS AND WARRANTIES

2.1         REPRESENTATIONS AND WARRANTIES OF IDC.

 IDC represents and warrants as follows:

a)        CORPORATE ORGANIZATION AND GOOD STANDING.  IDC is duly organized, validly existing, and in good standing under the laws of the state of Delaware and is qualified to do business as a foreign corporation in each jurisdiction, if any, in which its property or business requires such qualification.

b)       CORPORATE AUTHORITY.  IDC has all requisite corporate power and authority to own, operate and lease its properties, to carry on its business as it is now being conducted and to execute, deliver, perform and conclude the transactions contemplated by this Agreement and all other agreements and instruments related to this Agreement.

c)        AUTHORIZATION.  Execution of this Agreement has been duly authorized and approved by IDC (Management, Supervisory Board, and the Shareholders) and the Seller.

d)           CAPITALIZATION. (IDC SHARES)

(1)           The authorized capital stock of IDC consists of 100,000 shares of IDC Common Stock of US$.01 par value and 3,000 shares of IDC Preferred Stock at US$.01 par value.  The issued shares IDC stock consists of 12,000 Common Stock shares and 662 Series A Preferred Stock shares. All shares of IDC shall be duly authorized, validly issued, fully paid, non-assessable and free of preemptive rights at Closing,

(2)           IDC has no contract or other obligation to repurchase, redeem or otherwise acquire any shares of IDC stock, or make any investment (in the form of a loan, capital contribution or otherwise) in any other Person.  There are no outstanding subscriptions, options, warrants, puts, calls, rights, exchangeable or convertible securities or other commitments or agreements of any character relating to the issued or unissued shares or other securities of IDC.  None of the outstanding equity securities or other securities of IDC was issued in violation of the Securities Act of 1933 or any other legal requirement.

(3)           Each shareholder has good and marketable title as the legal and beneficial owner of record to the IDC Common Stock and Preferred Stock as set forth in Exhibit A, free and clear of any and all security interests, options or rights of any nature.

e)        LITIGATION.  To IDC’s knowledge, there are no pending, threatened, or existing litigation, bankruptcy, criminal, civil, or regulatory proceeding or investigation, threatened or contemplated against IDC.

	
f)

	
FINANCIAL STATEMENTS.

(i) Seller has furnished or made available to Buyer, or will make available to Buyer prior to the Closing, true and complete copies of the financial statements of IDC for its past two fiscal years (the “IDC Financial Statements”), and Seller shall furnish or make available to Buyer true and complete copies of IDC's financial statements for all monthly periods ending after its most recent fiscal year up to and including the Closing Date.

(ii) The IDC Financial Statements fairly present in all material respects the consolidated financial condition and the results of operations of IDC as at the respective dates thereof and for the periods indicated therein

g)       ABSENCE OF CERTAIN CHANGES OR EVENTS.  Since the end of its most recent fiscal year and to the date of this Agreement, (i) IDC has, in all material respects, conducted its business in the ordinary course consistent with past practice; (ii) there has not occurred any change, event or condition that is or would reasonably be expected to result in a Material Adverse Effect; and (iii)  IDC has not taken and will not take any of the actions that IDC has agreed not to take from the date hereof through the Closing.

  

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h)       UNDISCLOSED LIABILITIES.  To IDC’s knowledge, IDC has no material obligations or liabilities of any nature (whether accrued, matured or unmatured, fixed or contingent or otherwise) other than (i) those set forth or adequately provided for in the consolidated balance sheet (and the related notes thereto) of IDC as of the end of the most recent fiscal year  included in the IDC Financial Statements, (ii) those incurred in the ordinary course of business consistent with past practice since the end of the most recent fiscal year  and (iii) those incurred in connection with the execution of this Agreement.

i)         LEGAL PROCEEDINGS.  To IDC’s knowledge, IDC is not a party to any, and there is no pending or, to the IDC’s knowledge, threatened, legal, administrative, arbitral or other proceeding, claim, action or governmental or regulatory investigation of any nature against IDC, or any of its officers or directors which, if decided adversely to IDC, would, individually or in the aggregate, be material to IDC.  There is no injunction, order, judgment or decree imposed upon IDC, or any of its officers or directors, or the assets of IDC.

j)         TAXES AND TAX RETURNS.

	
  

	
(a)

	
(i) To IDC’s knowledge, IDC has filed or caused to be filed all  federal, state, foreign and local tax returns required to be filed with any tax authority; (ii) all such tax returns are true, accurate, and complete in all material respects; (iii) IDC has accrued or paid or caused to be paid all taxes that are due and payable by any of such companies, other than taxes which are being contested in good faith and are adequately reserved against or provided for in the IDC Financial Statements, and (iv) IDC does not have any material liability for taxes for any current or prior tax periods in excess of the amount reserved or provided for in the IDC Financial Statements (but excluding, for this Clause (iv) only, any liability reflected thereon for deferred taxes to reflect timing differences between tax and financial accounting methods).

	 	
(b)

	
No national, state, local or foreign audits, examinations, investigations, or other formal proceedings are pending or, to IDC’s knowledge, threatened with regard to any taxes or tax returns of IDC.  No issue has arisen in any examination of IDC by any tax authority that if raised with respect to any other period not so examined would result in a material deficiency for any other period not so examined, if upheld.  Any adjustment of income taxes of IDC made in any examination that is required to be reported to the appropriate national, state, local or foreign tax authorities has been so reported.

	 	
(c)

	
To IDC’s knowledge, there are no disputes pending with respect to, or claims or assessments asserted in writing for, any material amount of taxes upon IDC, nor has IDC given or been requested in writing to give any currently effective waiver extending the statutory period of limitation applicable to any tax return for any period.

	
k)

	
COMPLIANCE WITH APPLICABLE LAW AND REGULATORY MATTERS.

(a) To IDC’s knowledge, IDC has complied with all applicable laws and regulations, and are not in violation of, and have not received any written notices of violation with respect to, any laws and regulations in connection with the conduct of their respective businesses or the ownership or operation of their respective businesses, assets and properties, except for such noncompliance and violations as would not, individually or in the aggregate, be material.

(b) To IDC’s knowledge, IDC has all licenses, permits, certificates, franchises and other authorizations (collectively, the “Authorizations”) necessary for the ownership or use of its assets and properties and the conduct of its business, as currently conducted, and have complied with, and are not in violation of, any Authorization.  All such Authorizations are in full force and effect and there are no proceedings pending or, to the knowledge of IDC, threatened that seek the revocation, cancellation, suspension or adverse modification thereof.

(c) To IDC’s knowledge, there are no governmental orders applicable to IDC which have had a Material Adverse Effect on IDC.

  

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l)        MATERIAL CONTRACTS.  There are no material contracts of IDC currently in existence except as disclosed in Exhibit E.

m)      ASSETS.  To IDC’s knowledge, IDC owns, leases or has the right to use all the properties and assets necessary or currently used for the conduct of its businesses free and clear of all liens of any kind or character.  All items of equipment and other tangible assets owned by or leased to IDC and which are material to the operations and business of IDC are in good condition and repair (ordinary wear and tear excepted).  In the case of leased equipment and other tangible assets, IDC holds valid leasehold interests in such leased equipment and other tangible assets, free and clear of all liens of any kind or character.

n)       INSURANCE. To IDC’s knowledge, IDC has in full force and effect the insurance coverage with respect to its business.  There is no claim pending under any of such policies as to which coverage has been questioned, denied or disputed by the underwriters of such policies.  All premiums due and payable under all such policies have been paid, and IDC is otherwise in compliance in all material respects with the terms of such policies.  IDC has no knowledge of any threatened termination of, or material premium increase with respect to, any of such policies.

o)       INTELLECTUAL PROPERTY. To IDC’s knowledge, IDC has no intellectual property except as disclosed in Exhibit F to this Agreement.

p)       INTERESTS OF OFFICERS AND DIRECTORS.  Except as disclosed herein, none of the officers or directors of IDC has any interest in any property, real or personal, tangible or intangible, including intellectual property, used in or developed by the business of IDC, or in any supplier, distributor or customer of IDC, or any other relationship, contract, agreement, arrangement or understanding with IDC, except for the normal ownership interests of a shareholder and employee rights.

q)       BROKER’S FEES.  IDC has not employed any broker or finder or incurred any liability for any broker’s fees, commissions or finder’s fees in connection with the transactions contemplated by this Agreement.

r)        CERTAIN BUSINESS PRACTICES.  No director, officer, agent or employee of IDC has (i) used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity on behalf of, or purportedly on behalf of, or for the business of IDC, or (ii) made any unlawful payments to officials or employees of governmental entities or to directors, officers or employees of foreign or domestic business enterprises.

	
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REPRESENTATIONS AND WARRANTIES OF BUYER.

The Buyer represents and warrants as follows:

a)       CORPORATE ORGANIZATION AND GOOD STANDING.  Buyer is a corporation duly organized, validly existing, and in good standing under the laws of the State of Nevada, and is qualified to do business as a foreign corporation in each jurisdiction, if any, in which its property or business requires such qualification.

b)       CORPORATE AUTHORITY.  Buyer has all requisite corporate power and authority to execute, deliver, perform and conclude the transactions contemplated by this Agreement and all other agreements and instruments related to this Agreement.

c)       NO VIOLATION.  Consummation of the acquisition contemplated herein will not constitute or result in a breach or default under any provision of any charter, bylaw, indenture, mortgage, lease, or agreement, or any order, judgment, decree, law, or regulation by which Buyer is bound.

d)       REPORTING STATUS. Buyer is a fully reporting public company.  Buyer has filed all required periodic reports with the Securities & Exchange Commission (the "Commission") on Forms 10-Q and 10-K through the fiscal year ended March 31, 2011, and all required Form 8-K reports, all such reports are true and correct in all material respects and contain no misrepresentation of a material fact or omission of a material fact.  The common shares of Buyer are quoted at the OTC Markets OTCBB under the symbol "GBSX".

  

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e)        CAPITALIZATION.

(i) On the date of this Agreement, 75,000,000 shares of $0.001 par value common stock of GBS are authorized and 23,543,790 shares of common stock of Buyer are issued and outstanding, all of the shares of common stock issued and outstanding are duly authorized, validly issued, fully paid and non-assessable and none were issued in violation of any preemptive rights.  25,000,000 shares at $0.001 par value are authorized for Preferred Stock. There is no class of preferred stock of Buyer issued on the date of this Agreement.  5,000,000 shares of GBS common stock have been reserved for issuance upon the exercise of authorized yet unissued stock options under the Buyer’s  2011 ESOP, 7,550,000 shares of GBS common stock have been reserved for issuance upon the exercise of warrants sold or issued by GBS in connection with a private placement of Units consummated March 2011.There are no other rights to purchase shares. There are 210 treasury shares of Buyer .  Except as set forth above, as of the date hereof, no shares or other voting securities of Buyer are issued, reserved for issuance or outstanding and no shares or other voting securities of Buyer shall be issued or become outstanding after the date hereof, save for those Shares to be issued pursuant to this Agreement.  There are no bonds, debentures, notes or other indebtedness or securities of Buyer that have the right to vote (or that are convertible into, or exchangeable for, securities having the right to vote) on any matters on which stockholders of Buyer may vote.  All shares of Buyer subject to issuance as described above shall, upon issuance on the terms and conditions specified in the instruments pursuant to which they are issuable, be duly authorized, validly issued, fully paid, non-assessable and free of preemptive rights.

(ii) Buyer has no contract or other obligation to repurchase, redeem or otherwise acquire any shares of Buyer stock, or make any investment (in the form of a loan, capital contribution or otherwise) in any other Person.  There are no outstanding subscriptions, options, warrants, puts, calls, rights, exchangeable or convertible securities or other commitments or agreements of any character relating to the issued or unissued shares or other securities of Buyer.  None of the outstanding equity securities or other securities of Buyer was issued in violation of the Securities Act of 1933 or any other legal requirement.

	
f)

	
AUTHORITY; NO VIOLATION.

(i) Buyer has full corporate power and authority to execute and deliver this Agreement and to comply with the terms hereof and consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by Buyer.  Assuming due authorization, execution and delivery by the other Parties, this Agreement constitutes the valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, except as such enforcement may be limited by (i) the effect of bankruptcy, insolvency, reorganization, receivership, conservatorship, arrangement, moratorium or other similar laws affecting or relating to the rights of creditors generally, or (ii) the rules governing the availability of specific performance, injunctive relief or other equitable remedies and general principles of equity, regardless of whether considered in a proceeding in equity or at law, or (iii) the specific terms and conditions of this Agreement.

(ii) Neither the execution and delivery of this Agreement by Buyer nor the consummation by Buyer of the transactions contemplated hereby, nor compliance by Buyer with any of the terms or provisions hereof, will (A) violate any provision of the Certificate of Registration or Constitution or the certificates of registration or constitution, or other charter or organizational documents, of Buyer or (B) violate any statute, code, ordinance, rule, regulation, judgment, order, writ, decree or injunction applicable to Buyer or any of its properties or assets, the violation of which would have a Material Adverse Effect, or (C) violate, conflict with, result in a breach of any provision of or the loss of any material benefit under, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination of any or all rights or benefits or a right of termination or cancellation under, accelerate the performance required by or rights or obligations under, increase any rate of interest payable or result in the creation of any lien upon any of the respective properties or assets of Buyer under, any authorization or of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement, contract, or other instrument or obligation to which is a party, or by which its properties, assets or business activities may be bound or affected.

g)       UNDISCLOSED LIABILITIES.  Buyer has no material obligations or liabilities of any nature (whether accrued, matured or unmatured, fixed or contingent or otherwise) other than (i) those set forth or adequately provided for in the balance sheet (and the related notes thereto) of Buyer as of the end of the most recent fiscal year  included in the Buyer Financial Statements, (ii) those incurred in the ordinary course of business consistent with past practice since the end of the most recent fiscal year  and (iii) those incurred in connection with the execution of this Agreement.

  

5

  

h)       LEGAL PROCEEDINGS.  Buyer is not a party to any, and there is no pending or, to the knowledge of Buyer, threatened, legal, administrative, arbitral or other proceeding, claim, action or governmental or regulatory investigation of any nature against Buyer, or any of its officers or directors which, if decided adversely to Buyer, would, individually or in the aggregate, be material to Buyer.  There is no injunction, order, judgment or decree imposed upon Buyer, or any of its officers or directors, or the assets of Buyer.

i)       TAXES AND TAX RETURNS.

(a) (i) Buyer has filed or caused to be filed all  federal, state, foreign and local tax returns required to be filed with any tax authority; (ii) all such tax returns are true, accurate, and complete in all material respects; (iii) Buyer has paid or caused to be paid all taxes that are due and payable by any of such companies, other than taxes which are being contested in good faith and are adequately reserved against or provided for in the Buyer Financial Statements, and (iv) Buyer does not have any material liability for taxes for any current or prior tax periods in excess of the amount reserved or provided for in the Buyer Financial Statements (but excluding, for this Clause (iv) only, any liability reflected thereon for deferred taxes to reflect timing differences between tax and financial accounting methods).

(b) No national, state, local or foreign audits, examinations, investigations, or other formal proceedings are pending or, to Buyer’s knowledge, threatened with regard to any taxes or tax returns of Buyer.  No issue has arisen in any examination of the Buyer by any tax authority that if raised with respect to any other period not so examined would result in a material deficiency for any other period not so examined, if upheld.  Any adjustment of income taxes of Buyer made in any examination that is required to be reported to the appropriate national, state, local or foreign tax authorities has been so reported.

(c) There are no disputes pending with respect to, or claims or assessments asserted in writing for, any material amount of taxes upon Buyer, nor has Buyer given or been requested in writing to give any currently effective waiver extending the statutory period of limitation applicable to any tax return for any period.

k)      COMPLIANCE WITH APPLICABLE LAW AND REGULATORY MATTERS.

(a) Buyer has complied with all applicable laws and regulations, and are not in violation of, and have not received any written notices of violation with respect to, any laws and regulations in connection with the conduct of their respective businesses or the ownership or operation of their respective businesses, assets and properties, except for such noncompliance and violations as would not, individually or in the aggregate, be material.

(b) Buyer has all licenses, permits, certificates, franchises and other authorizations (collectively, the “Authorizations”) necessary for the ownership or use of its assets and properties and the conduct of its business, as currently conducted, and have complied with, and are not in violation of, any Authorization, except where such noncompliance or violation would not, individually or in the aggregate, be material.

c) There are no governmental orders applicable to Buyer which have had a Material Adverse Effect on Buyer.

l)       MATERIAL CONTRACTS.  There are no material contracts of Buyer currently in existence.

m)     ASSETS.  Buyer owns, leases or has the right to use all the properties and assets necessary or currently used for the conduct of its businesses free and clear of all liens of any kind or character.  All items of equipment and other tangible assets owned by or leased to Buyer and which are material to the operations and business of Buyer are in good condition and repair (ordinary wear and tear excepted).  In the case of leased equipment and other tangible assets, Buyer holds valid leasehold interests in such leased equipment and other tangible assets, free and clear of all liens of any kind or character.

  

6

  

 

n)       INSURANCE.  Buyer has all necessary insurance coverage with respect to its business.

o)       INTERESTS OF OFFICERS AND DIRECTORS.  Except AS DISCLOSED HEREIN, None of the officers or directors of Buyer has any interest in any property, real or personal, tangible or intangible, including intellectual property, used in or developed by the business of Buyer, or in any supplier, distributor or customer of Buyer, or any other relationship, contract, agreement, arrangement or understanding with Buyer, except  for the normal ownership interests of a shareholder and employee rights.

p)       BROKER’S FEES.  Buyer has not employed any broker or finder or incurred any liability for any broker’s fees, commissions or finder’s fees in connection with the transactions contemplated by this Agreement.

q)       CERTAIN BUSINESS PRACTICES.  No director, officer, agent or employee of Buyer has (i) used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity on behalf of, or purportedly on behalf of, or for the business of Buyer, or (ii) made any unlawful payments to officials or employees of governmental entities or to directors, officers or employees of foreign or domestic business enterprises.

3.  CONDITIONS PRECEDENT

3.1           Conditions to Each Party’s Obligations. The respective obligations of each Party hereunder shall be subject to the satisfaction prior to or at the Closing of the following conditions:

a)       No Restraints. No statute, rule, regulation, order, decree, or injunction shall have been enacted, entered, promulgated, or enforced by any court or governmental entity of competent jurisdiction which enjoins or prohibits the consummation of this Agreement and shall be in effect.

b)       Legal Action. There shall not be pending or threatened in writing any action, proceeding, or other application before any court or governmental entity challenging or seeking to restrain or prohibit the consummation of the transactions contemplated by this Agreement, or seeking to obtain any material damages.

3.2           Conditions to Seller’s Obligations. The obligations of Seller shall be subject to the satisfaction prior to or at the Closing of the following conditions unless waived by Seller:

a)       Representations and Warranties of Buyer. The representations and warranties of Buyer set forth in this Agreement shall be true and correct as of the date of this Agreement and as of the Closing as though made on and as of the Closing Date, except: (i) as otherwise contemplated by this Agreement; or (ii) in respects that do not have a Material Adverse Effect on the Parties or on the benefits of the transactions provided for in this Agreement. “Material Adverse Effect” for purposes of this Agreement shall mean any change or effect that, individually or when taken together with all other such changes or effects which have occurred prior to the date of determination of the occurrence of the Material Adverse Effect, is or is reasonably likely to be materially adverse to the business, assets, financial condition, or results of operation of the entity.

b)        Performance of Obligations of Buyer. Buyer shall have performed all agreements and covenants required to be performed by it under this Agreement prior to the Closing, except for breaches that do not have a Material Adverse Effect on the Parties or on the benefits of the transactions provided for in this Agreement.

3.3           Conditions to Buyer’s Obligations. The obligations of Buyer shall be subject to the satisfaction prior to or at the Closing of the following conditions unless waived by Buyer:

a)       Representations and Warranties of IDC. The representations and warranties of IDC set forth in this Agreement shall be true and correct as of the date of this Agreement and as of the Closing as though made on and as of the Closing, except: (i) as otherwise contemplated by this Agreement, or (ii) in respects that do not have a Material Adverse Effect on the Parties or on the benefits of the transactions provided for in this Agreement.

b)       Financial Statements: IDC shall have delivered final financial statements for its fiscal years ended 2008, 2009 and 2010.

  

7

  

c)       Performance of Seller and IDC. Seller and IDC shall have performed all agreements and covenants required to be performed by them under this Agreement prior to Closing, except for breaches that do not have a Material Adverse Effect on the Parties or on the benefits of the transactions provided for in this Agreement.

4. CLOSING AND DELIVERY OF DOCUMENTS

4.1      Time and Place. The Closing of the transaction contemplated by this Agreement shall take place at the offices of IDC, unless otherwise agreed by the Parties, immediately upon the full execution of this Agreement, and the satisfaction of all conditions, specifically the delivery of all required documents, or at such other time and place as the Parties mutually agree.  All  proceedings to be taken and all documents to be executed at the Closing shall be deemed to have been taken, delivered and executed simultaneously, and no proceeding shall be deemed taken nor documents deemed executed or delivered until all have been taken, delivered and executed.  The date of Closing may be accelerated or extended by agreement of the parties.  Any copy, facsimile telecommunication or other reliable reproduction of the writing or transmission required by this Agreement or any signature required thereon may be used in lieu of an original writing or transmission or signature for any and all purposes for which the original could be used, provided that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the entire original writing or transmission or original signature.

4.2      Deliveries by Seller and IDC. At Closing, Seller shall make the following deliveries to Buyer:

a)        Certified resolutions of the Management, the Board and all shareholders of IDC authorizing the execution and performance of this Agreement.

b)       Stock certificates of IDC representing all of the issued and outstanding stock of IDC, fully endorsed for transfer to Buyer.

c)       Appointment of Mr. Joerg Ott, CEO & Chairman of Buyer as Chairman of the Board of Directors of IDC and Mr. Stefan Mehlhorn GM GBS GroupLive Division and EVP as CEO of IDC and member of the board..

d)       Termination of all issued and outstanding options, warrants, convertible bonds or any other such instruments as of the day of Closing.

4.3      Deliveries by Buyer. At Closing, Buyer shall make provide the following:

a)       A letter from the Buyer’s CEO or otherwise authorized officer to the Buyer’s stock transfer agent to issue the shares of common stock of GBS pursuant to the terms and conditions of this Agreement in the name of Seller or its designee per Exhibit H;

b)       Certified resolutions of the Board of Directors of Buyer authorizing the execution and performance of this Agreement, including, but not limited, to the issuance of shares of common stock of GBS p and the payment of monies owed Seller by Buyer in consideration for the IDC Shares pursuant to the terms and conditions of this Agreement.

c)       Wire-transfer of the Cash Consideration (Section 1.2.2) to the IDC bank as detailed in Exhibit D.

5.  INDEMNIFICATION AND ARBITRATION

5.1.     Indemnification.

a)       Generally, the Seller and IDC, on the one hand, and the Buyer, on the other hand, (each party, “Indemnifying Party”) shall agree to indemnify, and hold harmless the other party (“Indemnified Party”) from any and all claims, demands, liabilities, damages, losses, costs and expenses that the other party shall incur or suffer, including attorneys fees and costs, that arise, result from or relate to any breach of, or failure by Indemnifying Party to perform any of their respective representations, warranties, covenants, or agreements in this Agreement or in any exhibit, addendum, or any other instrument furnished by the Indemnifying Party under this Agreement.

  

8

  

b)       Certain Limitations on Indemnification Obligations.

 (1)  No Indemnified Party shall be entitled to receive any indemnification payments under Section 5, unless the Indemnifying party receives notice of such breach or failure and is provided sixty (60) days to cure such breach or failure.

 

(2)  No Indemnified Party will be entitled to receive any indemnification payments under Section 5, until the aggregate amount of Losses incurred by the Indemnified Party, exceed Fifty Thousand Dollars ($50,000) (the “Basket Amount”); provided, that once the aggregate amount of such Losses exceeds the Basket Amount, the Indemnifying Party, will be liable for all such Losses, including those in the Basket Amount.

 

(3)  The maximum aggregate amount of indemnification payments under Section 5 to which Buyer will be entitled to receive, upon the triggering of any indemnification obligation hereunder, will not exceed twenty five (50%) of the Consideration.

 

(4)  The amount of Loss for which an Indemnified Party will be indemnified in accordance with this Section 5 will be net of any amounts that are actually recovered by the Indemnified Party under any insurance policy with respect to such Losses (and any such recovery related to Losses for which the Indemnified Party have previously been indemnified will be repaid to the Indemnifying Party.

 

(5)  Survival. All of the representations and warranties of IDC contained in this Agreement shall survive the Closing (regardless of any knowledge or investigations of Buyer) and shall continue in full force and effect for a period of six (6) months thereafter provided that the representations and warranties concerning title to the IDC Common Stock as set forth in Section 2.1d).(3) and any taxes shall survive the applicable statutes of limitations with respect thereto (the “Survival Period”), after which such representations and warranties shall terminate and have no further force or effect. All of the representations and warranties of Buyer contained in this Agreement shall survive the Closing (regardless of any knowledge or investigation of Shareholders or IDC) and shall continue in full force and effect for a period of six (6) months thereafter. All covenants of the parties in this Agreement shall survive the Closing and shall continue in full force thereafter.

5.2         Arbitration and Governing Law. The parties hereby agree that any and all claims (except only for requests for injunctive or other equitable relief) whether existing now, in the past or in the future as to which the parties or any affiliates may be adverse parties, and whether arising out of this Agreement or from any other cause, will be resolved by arbitration before the American Arbitration Association within the State of Illinois.

a)           The parties hereby irrevocably consent to the jurisdiction of the American Arbitration Association and the situs of the arbitration (and any requests for injunctive or other equitable relief) within the State of Illinois.  Any award in arbitration may be entered in any domestic or foreign court having jurisdiction over the enforcement of such awards.

b)           The law applicable to the arbitration and this Agreement shall be that of the State of Illinois, determined without regard to its provisions which would otherwise apply to a question of conflict of laws.

c)           The arbitrator may, in its discretion, allow the parties to make reasonable disclosure and discovery in regard to any matters which are the subject of the arbitration and to compel compliance with such disclosure and discovery order.  The arbitrator may order the parties to comply with all or any of the disclosure and discovery provisions of the Federal Rules of Civil Procedure, as they then exist, as may be modified by the arbitrator consistent with the desire to simplify the conduct and minimize the expense of the arbitration.

d)          Regardless of any practices of arbitration to the contrary, the arbitrator will apply the rules of contract and other law of the jurisdiction whose law applies to the arbitration so that the decision of the arbitrator will be, as much as possible, the same as if the dispute had been determined by a court of competent jurisdiction.

  

9

  

e)           Any award or decision by the American Arbitration Association shall be final, binding and non-appealable except as to errors of law or the failure of the arbitrator to adhere to the arbitration provisions contained in this Agreement.  Each party to the arbitration shall pay its own costs and counsel fees except as specifically provided otherwise in this Agreement.

f)           In any adverse action, the parties shall restrict themselves to claims for compensatory damages and\or securities issued or to be issued and no claims shall be made by any party or affiliate for lost profits, punitive or multiple damages.

g)          The parties covenant that under no conditions will any party or any affiliate file any action against the other (except only requests for injunctive or other equitable relief) in any forum other than before the American Arbitration Association, and the parties agree that any such action, if filed, shall be dismissed upon application and shall be referred for arbitration hereunder with costs and attorney's fees to the prevailing party.

h)           It is the intention of the parties and their affiliates that all disputes of any nature between them, whenever arising, whether in regard to this Agreement or any other matter, from whatever cause, based on whatever law, rule or regulation, whether statutory or common law, and however characterized, be decided by arbitration as provided herein and that no party or affiliate be required to litigate in any other forum any disputes or other matters except for requests for injunctive or equitable relief. This Agreement shall be interpreted in conformance with this stated intent of the parties and their affiliates.

6.  GENERAL PROVISIONS.

6.1         FURTHER ASSURANCES.  From time to time, each party will execute such additional instruments and take such actions as may be reasonably required to carry out the intent and purposes of this Agreement.

6.2         WAIVER.  Any failure on the part of either party hereto to comply with any of its obligations, agreements, or conditions hereunder may be waived in writing by the party to whom such compliance is owed.

6.3         BROKERS.  Each party agrees to indemnify and hold harmless the other party against any fee, loss, or expense arising out of claims by brokers or finders employed or alleged to have been employed by the indemnifying party.

6.4         NOTICES.  All notices and other communications hereunder shall be in writing and shall be given by personal delivery, overnight delivery, mailed by registered or certified mail, postage prepaid, with return receipt requested, as follows:

If to Seller and IDC, to:

the shareholders of IDC Global, Inc.

Shareholder Representative

William M. Lyerly

Logan & Associates Ltd.

1866 Sheridan Road, Suite 317

Highland Park, IL 60035

mlyerly@idcglobal.net

Phone: +1 (847) 433 1650

If to Buyer, to:

GBS Enterprises, Inc..

CEO Joerg Ott

302 North Brooke Drive

Canton, GA 30114

USA

jott@gbsx.us

Phone: +1 (404) 474 7256

  

10

  

 

The persons and addresses set forth above may be changed from time to time by a notice sent as aforesaid. If notice is given by personal delivery or overnight delivery in accordance with the provisions of this Section, such notice shall be conclusively deemed given at the time of such delivery provided a receipt is obtained from the recipient. If notice is given by mail, such notice shall be deemed given upon receipt and delivery or refusal.

6.5         ASSIGNMENT.  This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their successors and assigns; provided, however, that any assignment by either party of its rights under this Agreement without the written consent of the other party shall be void.

6.6         COUNTERPARTS.  This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Signatures sent by facsimile transmission shall be deemed to be evidence of the original execution thereof.

6.7         REVIEW OF AGREEMENT.  Each party acknowledges that it has had time to review this Agreement and, as desired, consult with counsel.  In the interpretation of this Agreement, no adverse presumption shall be made against any party on the basis that it has prepared, or participated in the preparation of, this Agreement.

6.8         SCHEDULES/EXHIBITS.  All schedules and exhibits attached hereto, if any, shall be acknowledged by each party by signature or initials thereon.

7. MISCELLANEOUS

 

7.1         In the event that the Buyer proposes or is required to register Common Stock in connection with an underwritten offering and a nationally recognized investment banking firm selected by the Buyer to act as managing underwriter thereof reasonably and in good faith shall have advised the Buyer, the SHR or any other holder of Common Stock intending to offer Common Stock in the offering (each, an “Other Holder”) in writing that, in its opinion acting in good faith, the inclusion in the registration statement of some or all of the Registrable Shares sought to be registered by the SHR would adversely affect the price or success of the offering, the Buyer shall include in such registration statement such number of shares of Common Stock as the Buyer is advised can be sold in such offering without such an effect (the “Maximum Number”) as follows and in the following order of priority: (i) first, such number of shares of Common Stock as the Buyer intended to be registered and sold by the Buyer or, if such registration is on behalf of any Other Holders exercising a contractual right to demand registration pursuant to which such registration statement was filed, such number of shares of Common Stock as such Other Holders intended to be registered and sold, and (ii) second, if and to the extent that the number of shares of Common Stock to be registered under clause (i) is less than the Maximum Number, such number of shares of Common Stock as the SHR and any Other Holders or additional Other Holders (if such registration was not initiated by such Other Holders) shall have intended to register which, when added to the number of shares of Common Stock to be registered under clause (i), is less than or equal to the Maximum Number, on a pro rata basis according to the total number of shares of Common Stock Beneficially Owned by each such Person.

7.2         Records and Data. The Buyer will maintain adequate record keeping and data retention and provide the SHR copies of such records and data in the event the Buyer or a third party makes and indemnity claim against the SHR.

<Remainder of this page left blank>

<SIGNATURE PAGE FOLLOWS>

  

11

  

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first written above.

	
GBS ENTERPRISES, INC.

	  
	  	  	  
	
BY:

	
/ s/ Joerg Ott

	  
	
JOERG OTT

	  
	
ITS: CEO

	  
	  	  	  
	
IDC GLOBAL, INC..

	  
	  	  	  
	
BY:

	
/s/ Jan C. Daiker

	  
	
Jan C. Daiker

	  
	
ITS: CEO

	  
	  	  	  
	
IDC SHAREHOLDERS.

	  
	  	  	  
	
BY:

	
/s/ William M. Lyerly

	  
	
William M. Lyerly

	  
	
ITS: REPRESENTATIVE

	  
	  	  	  
	
IDC MANAGEMENT SHAREHOLDERS.

	  
	  	  	  
	
BY: 

	
/s/ Jan C. Daiker

	  
	
Jan C. Daiker

	  
	
ITS: REPRESENTATIVE

	  

  

12

  

 GBS/IDC ACQUISITION AGREEMENT

EXHIBIT LIST

	
  

	
A.

	
LIST OF SHAREHOLDERS OF IDC, NUMBER OF EQUIVALENT VOTING SHARES AND PERCENTAGE OF OWNERSHIP

	
  

	
B.

	
LIST OF NOTES PAYABLE OF IDC

	
  

	
C.

	
LIST OF CASH PAYMENT DISTRIBUTION TO SHAREHOLDERS OF IDC, AMOUNT IN US$ AND PERCENTAGE OF CASH PAYMENT

	
  

	
D.

	
IDC BANK DETAILS

	
  

	
E.

	
LIST OF ALL MATERIAL CONTRACTS

	
  

	
F.

	
LIST OF INTELLECTUAL PROPERTY OF IDC

	
  

	
G.

	
IDC MANAGEMENT SHAREHOLDER EARN OUT METHOLOGY

	
  

	
H.

	
KEY EMPLOYEE SIGNING BONUS AND RETENTION PROGRAM

	
  

	
I.

	
GBSX SHARE DISTRIBUTION

  

13

  

 

EXHIBIT A

LIST OF SHAREHOLDERS OF IDC, NUMBER OF EQUIVALENT VOTING SHARES AND PERCENTAGE OF OWNERSHIP

	
#

	 	
Name

	 	
Mailing Address

	 	
Number

of Shares

	 	
Type

	 	
CS Voting

Equivalent

	 	 	
Extended

	 	 	
Percentage of

Ownership

	 
	
1

	 	
Jan C. Daiker

	 	
23 Emily Lane 

Lemont, IL 60439

	 	 	2,500	 	
CS

	 	 	2,500	 	 	 	 	 	 	 
	  	 	  	 	  	 	 	12	 	
PS-A*

	 	 	24	 	 	 	2,524	 	 	 	18.94	 
	  	 	  	 	  	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 
	
2

	 	
Marilyn Hellum

(Estate of Earl Hellum)

	 	
8917 N. Ewing 

Evanston, IL 60203

	 	 	1,000	 	
CS

	 	 	1.000	 	 	 	1,000	 	 	 	7.51	 
	  	 	  	 	  	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 
	
3

	 	
Craig Daiker

	 	
2015 N. Albany 

Chicago, IL 60647

	 	 	1,250	 	
CS

	 	 	1,250	 	 	 	1,250	 	 	 	9.38	 
	  	 	  	 	  	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 
	
4

	 	
Shelly Greco

	 	
2536 Bennett Ave. 

Evanston, IL 60201

	 	 	1,250	 	
CS

	 	 	1,250	 	 	 	1,250	 	 	 	9.38	 
	  	 	  	 	  	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 
	
5

	 	
William M. Lyerly

	 	
Logan & Associates Ltd. 

1866 Sheridan Road, Suite 

317 Highland Park, IL 60035

	 	 	6,000	 	
CS

	 	 	6,000	 	 	 	 	 	 	 	 	 
	  	 	  	 	  	 	 	650	 	
PS-A*

	 	 	1,300	 	 	 	7,300	 	 	 	54.79	 
	  	 	  	 	   	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	  	 	
TOTALS

	 	 	 	 	 	 	 	100.00	%

* Preferred Stock Series A: For voting 1 Share of Preferred A = 2 Shares of Common.

	
 

List of Management Shareholders

	 	
Portion of 

Common Stock 

Restricted for 

12-month

	 	 	
Percentage of 

Management 

Shareholder 

Component

	 
	  	 	 	 	 	 	 
	
Jan C. Daiker

	 	 	40,000	 	 	 	50	 
	  	 	 	 	 	 	 	 	 
	
Craig Daiker

	 	 	20,000	 	 	 	25	 
	  	 	 	 	 	 	 	 	 
	
Shelly Greco

	 	 	20,000	 	 	 	25	 
	  	 	 	 	 	 	 	 	 
	
Totals

	 	 	80,000	 	 	 	100	 

  

14

  

EXHIBIT B

LIST OF NOTES PAYABLE OF IDC (June 30, 2011)

	
#

	 	
Amount in US$

	 	
Name and Address of Holder

	 	
Date issued 

	 	
Maturity Date

	
1

	 	
Estimated

 

$ 157,673

	 	
Jan C. Daiker

23 Emily Lane

Lemont, IL 60439

	 	
June 30,2006

	 	
Dec 31, 2011

	
2

	 	
Estimated

  

 

$ 228,321

	 	
William M. Lyerly

Logan & Associates Ltd.

1866 Sheridan Road, Suite 317

Highland Park, IL 60035

	 	
June 21, 2001

	 	
Line of Credit Note

	
3

	 	
Estimated

 

$ 175, 615

	 	
Libertyville Bank and Trust

504 N. Milwaukee Ave.

Libertyville, IL 60048

	 	
January 5 2011

	 	
January 5, 2013

	  	 	  	 	  	 	  	 	  
	  	 	
Total:  $ 561,629

	 	  	 	  	 	  

 

  

15

  

 

EXHIBIT C

LIST OF CASH PAYMENT DISTRIBUTION TO SHAREHOLDERS OF IDC, AMOUNT IN US$ AND PERCENTAGE OF CASH PAYMENT

	
#

	 	
Name

	 	
Mailing Address

	 	
Amount in US$

	 	 	
Percentage of

Cash Payment

	 
	
1

	 	
Jan C. Daiker

	 	
23 Emily Lane

Lemont, IL 60439

	 	 	39,243.91	 	 	 	20.83 	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
2

	 	
Marilyn Hellum

(Estate of Earl Hellum)

	 	
8917 N. Ewing

Evanston, IL 60203

	 	 	15,697.56 	 	 	 	8.33	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
3

	 	
Craig Daiker

	 	
2015 N. Albany

Chicago, IL 60647

	 	 	19,621.95	 	 	 	10.42	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
4

	 	
Shelly Greco

	 	
2536 Bennett Ave.

Evanston, IL 60201

	 	 	19,621.95	 	 	 	10.42	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
5

	 	
William M. Lyerly

	 	
Logan & Associates Ltd.

1866 Sheridan Road, Suite 317

Highland Park, IL 60035

	 	 	94,185.38	 	 	 	50.00	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
TOTAL

	 	 	188,370.76	 	 	 	100.00	%

  

16

  

EXHIBIT D

IDC Bank Details

Bank of America

1921 St. Johns Avenue

Highland  Park, IL 60035

847-432-5000

Routing:  071000505

Acct:  5201138475

  

17

  

EXHIBIT E

LIST OF MATERIAL CONTRACTS

	
#

	 	
Name

	 	
Address

	 	
Amount in US$

	 	  
	
1

	 	  	 	  	 	  	 	  
	
2

	 	  	 	  	 	  	 	  
	
3

	 	  	 	  	 	  	 	  
	
4

	 	  	 	  	 	  	 	  
	
5

	 	  	 	  	 	  	 	  
	
6

	 	  	 	  	 	  	 	  
	
7

	 	  	 	  	 	  	 	  
	
8

	 	  	 	  	 	  	 	  
	
9

	 	  	 	  	 	  	 	  
	
10

	 	  	 	  	 	  	 	  
	
11

	 	  	 	  	 	  	 	  
	
12

	 	  	 	  	 	  	 	  
	
13

	 	  	 	  	 	  	 	  
	
14

	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
TOTAL

	 	  	 	  

  

18

  

EXHIBIT F

LIST OF INTELLECTUAL PROPERTY OF IDC

	
#

	 	
Product Name

Technology

	 	
Description

	 	
First Day of

Launch

Date of

Latest

Release

	 	
Patent]

Patent

Pending

	
1

	 	
Data Aggregation and Distribution

	 	
IDC has designed, implemented, and supports a proprietary Data Aggregation and Distribution service.  This service provides two main functions:

 

a) an ‘any-to-any’ telecommunication service and

b) a single egress circuit to the customer.

a. ‘any to any’ references a) any type of telecommunications technology (DSL, Frame Relay, Dedicated circuits (T1 eg), and Ethernet and b) any vendor.

b. single egress to the customer aggregates ‘a’ above into a single physicalconnection no matter the type, number, or vendor(s).

c. routing and switching equipment and programs to provide this service

	 	
2001

	 	
Trade Secret

	 	 	 	 	 	 	 	 	 
	
2

	 	
Fiber Ring and Diverse and Redundant Internet access

	 	
IDC has designed, acquired, implemented, and supports a physically and logically diverse and redundant Internet access service through:

 

a) Its own fiber ring in downtown Chicago connecting three(3) data centers.

b) Internet connection to a Tier1 Internet provider at 350 Cermak in Chicago.

c) Internet connection to a (different) Tier1 provider at 111 Canal in Chicago.

d) Routing and switching equipment and programs to provide this service

	 	  	 	  
	 	 	 	 	 	 	 	 	 
	
3

	 	
Data Backup and Recovery

	 	
IDC has designed, implemented, and supports a data backup and recovery service using its two downtown Chicago data centers and its own fiber ring.

	 	  	 	  

 

EXHIBIT H

  

19

  

EXHIBIT G

KEY EMPLOYEE SIGNING BONUS AND RETENSION PROGRAM

Maximum of US$35,000.00 to bedistributed, as well as 25,000 stock options.

It is up to the management how to distribute the stock options.

We will not offer retention payments.

	  	 	
List of Key Employees

	 	
Portion of Signing

Bonus is US$

	 	
Stock Options

	 	
Total

	  	 	  	 	  	 	  	 	  
	
1

	 	
Jan Daiker

	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
2

	 	
Shelly Greco

	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
3

	 	
Craig Daiker

	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
4

	 	
Kieren Athy

	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
5

	 	
Bryan Holloway

	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
6

	 	
Douglas Moore

	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
7

	 	
Donna Brzezinski

	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
8

	 	
Deb McDonald

	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
9

	 	
Robert Jahn

	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
10

	 	
Nadir Zayed

	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	  	 	
Totals

	 	  	 	  	 	  

  

20

  

EXHIBIT H

GBSX SHARE DISTRIBUTION

	
#

	 	
Name

	 	
Mailing Address

	 	
Number of Shares

	 	 	
Percentage of

Shares

	 
	
1

	 	
Jan C. Daiker

	 	  	 	 	126,824	 	 	 	15.85	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
2

	 	
Marilyn Hellum

(Estate of Earl Hellum)

	 	  	 	 	49,211	 	 	 	6.15	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
3

	 	
Craig Daiker

	 	  	 	 	61,514	 	 	 	7.69	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
4

	 	
Shelly Greco

	 	  	 	 	61,514	 	 	 	7.69	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
5

	 	
William M. Lyerly

	 	  	 	 	480,937	 	 	 	60.12	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
6

	 	
Eric K. Lyerly

	 	  	 	 	10,000	 	 	 	1.25	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
7

	 	
Ryan M. Lyerly

	 	  	 	 	10,000	 	 	 	1.25	 
	  	 	  	 	  	 	 	 	 	 	 	 	 
	
TOTAL

	 	 	800,000	 	 	 	100.00	%

 

  

21

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