Document:

Exhibit 10.2

 

Weida
Communications Stock Transfer Memo

As of 8/26/2004

 

This memo is
to serve as notice that Weida Communications Inc., will upon completion of the
following issues transfer to the Guangzhou Weida Communications Group LTD
shares of Weida Communications Inc. in accordance with the amount specified in
the Master agreement of 16,296,296 where as this memo and the master agreement
presides over all other agreements.

 

Completion of
the WOFE changes as submitted to Guangzhou Weida:

1)              As
per our previous July 2004 meeting, it was agreed that the Board of Directors
would be comprised of 5 (five) members, not 3 (three).  This must be corrected.

2)              The
term of the members of the Board of Directors should be 4 (four) years, not 3
(three), in order to comply with PRC law.

3)              There
will be no unanimous votes required by the Board of Directors.  Any and all votes by the Board of Directors
will be by majority consent.

4)              There
will be no requirement imposed for the General Manager to sign on Board
Resolutions to make them effective.

5)              The
Board of Directors quorum shall be 3 (three) members, not 5 (five).

 

Verification
of the registered capital of:

$150,000
deposited on August 3rd

$24,000
deposited on August 16th

$120,000
deposited on August 23rd

 

Completion of
the due diligence requests from Chen and Co and submitted to Weida on August
3rd.

 

After these
issues have been addressed, satisfied, and any necessary corrections and
translations of the transactional documents have been completed along with all
of the transactions contemplated by the service an support agreement are fully
established and operational, the stock certificates will be transferred to the
respective parties.

 

If at the
end of one year of signing this memo and if Weida does note obtain approval for the EJV, Weida Communications
will review ways in which Weida
Communications can pay Guangzhou Weida the equity transfer of $15,000,000.

 

Additionally
beginning in September Weida Communications will begin in good faith
negotiations with Guangzhou Weida for the purchase of the remainder of the
49%of Guangzhou Weida.

 

	
  Mitchell
  Sepaniak

  	
  Jack Chin

  
	
  /s/ Mitchell
  Sepaniak

  	
   

  	
  /s/ Jack
  Chin

  	
   

  
	
  CEO and
  President

  	
  Sr. Vice
  President Business Development

  
	
  Weida
  Communications Inc.

  	
  Serving as
  Official Translator

  
	
   

  	
   

  
	
   

  	
  /s/ Deng Long LongExhibit 10.3

 

SCL Ventures Ltd.

Jack Chin

(“Purchasers”)

 

and

 

5 BVI Companies

(“Vendors”)

 

 

PURCHASE AND SALE AGREEMENT

 

for the Purchase and Sale of the Shares of

Ocean International Holdings Limited

 

 

 

Chen & Co. Law Firm

Suite 1901 North Tower

Shanghai Stock Exchange Building

528 Pudong Nan Road

Shanghai 200120

People’s Republic of China

 

 

PURCHASE AND SALE
AGREEMENT

 

This Purchase and Sale Agreement (this
“Agreement”) is made as of August 26, 2004 (the “Execution Date”) by and
between:

 

SCL Ventures Ltd. (“SCL”), a
British Virgin Islands company; and

 

Jack Chin (“Jack
Chin”), a citizen of the United States of America;

 

(SCL and Jack Chin are, collectively, the
“Purchasers”.)

 

and

 

Honest Link International Ltd., a company
formed in the British Virgin Islands (the “BVI”);

 

Worldwise Development Ltd., a BVI
company;

 

Magic Technology Development
Ltd., a BVI company;

 

Energic Development Ltd., a BVI
company;

 

Ocean Channel Investments Ltd., a BVI
company.

 

(The said five BVI companies are, collectively,
“Vendors”.)

 

(In this Agreement, each of the Purchasers and
each of the Vendors is a “Party.”; and collectively, they are the “Parties”.)

 

WHEREAS, Ocean International Holdings Limited
(the “Company”) is a company incorporated in the Hong Kong Special Administrative
Region (the “HKSAR”) of the People’s Republic of China (the “PRC”); and

 

WHEREAS, the Company is the owner and holder of
100% of the registered capital of Ocean Tian Di Communication Technology Co.,
Ltd. (Guangzhou), a wholly foreign-owned enterprise (the “WOFE”) which has
entered into a Service and Support Agreement with Weida Communications
Technology Company Limited (“Weida PRC”); and

 

WHEREAS, pursuant to a Master Agreement dated
as of April 29, 2003, as further implemented by an Equity Interest Transfer
Agreement, an Equity Joint Venture Agreement, an Equity Joint Venture Articles
of Association, and a Future Equity Interest Transfer Agreement, SCL has agreed
with certain other parties that are Affiliates of the Vendors that SCL shall acquire
25% of the equity ownership of Weida PRC, with Weida PRC simultaneously
converting into a Sino-foreign Equity Joint Venture (the “EJV”) under the laws
of the PRC, and that thereafter SCL may acquire up to an additional 26% (for a
total of 51%) of the equity ownership of the EJV; and

 

1

 

WHEREAS, SCL is a wholly-owned subsidiary of
Weida Communications, Inc., a New Jersey corporation (“Weida US”); and

 

WHEREAS, the Vendors are the owners and holders
of all of the outstanding shares of the Company; and

 

WHEREAS, the Vendors intend to sell, and the
Purchasers intend to purchase, all of the outstanding shares of the Company,
pursuant to the terms and conditions of this Agreement, for cash and shares of
Weida US;

 

NOW THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties agree as
follows:

 

1.             DEFINITIONS AND INTERPRETATION

 

1.1           In
this Agreement and the Attachments hereto, unless otherwise expressed or
required by the context, the following expressions shall have the following
meanings:

 

	
  “Action”

  	
   

  	
  any action, complaint, petition, investigation, suit or other
  proceeding, whether civil or criminal, or before any arbitrator or
  governmental authority;  

  
	
   

  	
   

  	
   

  
	
  “Affiliate”

  	
   

  	
  with regard to a given person, means a person that controls, is
  controlled by or is under common control with the given person;

  
	
   

  	
   

  	
   

  
	
  “Consideration for Sale”

  	
   

  	
  the funds to be paid and the Weida Common Stock to be issued by the
  Purchasers to the Vendors, as the total consideration for the Transferred
  Shares;

  
	
   

  	
   

  	
   

  
	
  “Completion”

  	
   

  	
  conditions precedent provided for in this Agreement have been
  fulfilled, the transaction under this Agreement has been filed with the
  competent authority of HKSAR, and the share certificates of the Company have
  been issued to the Purchasers;

  
	
   

  	
   

  	
   

  
	
  “Completion Date”

  	
   

  	
  the day on which the share certificates are issued by the Company to
  the Purchasers;

  

 

2

 

	
  “Other Agreements”

  	
   

  	
  The Master Agreement, the Service and Support Agreement, the Equity
  Interest Transfer Agreement, the Equity Joint Venture Agreement, the Equity
  Joint Venture Articles of Association, the Future Equity Transfer Agreement,
  and any other agreements which may  be
  entered into by SCL and Affiliates of the Vendors relating to the WOFE or the
  EJV;

  
	
   

  	
   

  	
   

  
	
  “Transferred Shares”

  	
   

  	
  the outstanding shares of the 
  Company, all of which shall be transferred by the Vendors to the
  Purchasers;

  
	
   

  	
   

  	
   

  
	
  “Weida Common Stock”

  	
   

  	
  shares of common stock of Weida US;

  
	
   

  	
   

  	
   

  
	
  “USD”

  	
   

  	
  United States dollars.

  

 

1.2           References
to any laws, regulations or statutory provisions shall, where the context so
permits or requires, be construed as references to those laws, regulations or
provisions as respectively amended, consolidated, extended or re-enacted from
time to time, and shall be construed as including references to any orders,
regulations, or other subordinate legislation made under the laws, regulations
or provisions.

 

1.3           References
herein to clauses are to clauses in this Agreement unless the context requires
otherwise.

 

2.             TRANSFER OF THE SHARES

 

2.1 
CONDITIONS PRECEDENT

 

Unless otherwise agreed by the Vendors and the
Purchasers in writing, or waived by the Purchasers in writing, the transaction
under this Agreement shall be completed upon fulfillment of all the following
preconditions, to the satisfaction of the Purchasers:

 

The approval from SCL’s Board of Directors has
been obtained;

 

The necessary resolutions of the Company’s
Board of Directors, duly approving the transaction contemplated by this
Agreement have been obtained;

 

All of the facts, circumstances,
representations, warranties, and undertakings described in section 4 shall be
completed, true, and correct.

 

3

 

2.2           FULL
TRANSFER

 

2.2.1        Upon
the Completion Date, the Purchaser shall be the legal and beneficial owners of
all of the outstanding shares of the Company.

 

Unless otherwise agreed in writing by the
Parties, the sale and transfer under this Agreement shall include all the
rights and obligations associated with the Transferred Shares.

 

Each of the Vendors waives any and all of its
rights to purchase any of the Transferred Shares.

 

2.3          
EXERCISE OF RIGHTS

 

Upon the Completion Date, the Purchaser shall
be entitled to exercise all of the rights of a shareholder as to the
Transferred Shares.

 

3.             CONSIDERATION AND PAYMENT

 

3.1           Subject
to the terms and conditions of this Agreement, the Vendors agree to sell and
transfer all of the outstanding shares of the Company to the Purchasers, and
the Purchasers agree to purchase and acquire such Transferred Shares, as
follows:

 

Of the Transferred Shares, one (1) share of the
Company shall be transferred to Jack Chin, and all of the remainder of the
Transferred Shares shall be transferred to SCL;

 

The Consideration for Sale shall be (x) funds
in the sum of USD 15,000,000, and (y) 16,296,296 shares of Weida Common Stock.

 

Notwithstanding that the Purchaser shall
acquire the Transferred Shares on the Completion Date, payment of the
Consideration for Sale shall only be due and payable upon all of the following
conditions having been met:

 

(a)          The Service and Support Agreement is in
full force and effect;

(b)         The terms and conditions of each of the
Other Agreements have been performed and observed by the parties thereto in all
respects;

(c)          all conditions to formation of the EJV
have been met; and

(d)         the EJV has been formed and has a valid
business license showing SCL’s 25% equity ownership.

 

3.2           The
Purchaser shall pay and deposit the Consideration for Sale to the Vendors, when
due and payable, in the bank account designated in written by the Vendors. A
receipt certificate shall be issued to the Purchases by the Vendors upon
receipt of the payment.

 

4.             VENDORS’ REPRESENTATIONS, WARRANTIES, AND COVENANTS

 

4.1           Each
of the Vendors represents, warrants and covenants to the Purchasers all of the
matters contained in this section 4.

 

4

 

4.2           All
of the following shall be true and correct, without exception or equivocation,
(i) as of the Execution Date, (ii) during the period between the Execution Date
and the Completion Date, and (iii) as of the Completion Date:

 

4.2.1 
the Company shall be free of any debts and shall not allow or procure
any event, conduct or act which would cause any changes to the Company’s
financial position or business;

 

4.2.2        the
Vendors and the Company shall undertake all reasonable measures to protect the
business reputation of the Company, and they shall not cause any act which
shall prejudice the Company’s business reputation;

 

4.2.3        the
Company shall not enter into any agreement or give any undertaking, except as
agreed in written by the Purchasers;

 

4.2.4        the
Vendors shall inform the Purchasers as soon as possible of any changes
concerning the Company’s affairs, including but not limited to its financial
position and business.

 

4.3           Any
loans or other liability owed by the Company to any Vendor(s) shall, upon the
Completion Date, be waived by the Vendor as a creditor.

 

4.4           The
Company has acquired 100% of the registered capital of the WOFE.

 

4.5           The
WOFE has been lawfully established by the Company and is validly existing, pursuant
to all applicable PRC laws and regulations, and has a valid Business License.

 

4.6           Except
as to the Company having established the WOFE, the Company has engaged in no
other business or activities whatsoever since its formation.

 

4.7           Except
as to the payment of the WOFE’s registered capital, the Company has no
outstanding liabilities whatsoever.

 

4.8           The
WOFE has engaged in no business or activities whatsoever since its formation.

 

4.9           The
WOFE has no outstanding liabilities whatsoever.

 

5.             INDEMNIFICATION AND RECOURSE

 

5.1             The Vendors
hereby undertake to indemnify and hold the Purchasers harmless against any loss
or liability suffered by the Purchasers as a result of or in connection with
any breach by Vendors or their Affiliates of any of their representations,
warranties, covenants, and undertakings under this Agreement and the Other
Agreements, including, but not limited to, any reasonable costs and expenses
properly incurred as a result of such breach.

 

5

 

5.2             The rights and
remedies of the Purchasers in respect of any breach of the representations,
warranties, covenants, and undertakings shall not be affected by any Party
hereto rescinding, or failing to rescind, this Agreement or any of the Other Agreements,
or by any other event or matter.

 

5.3             Purchasers
shall have full recourse in respect of any breach of the representations,
warranties, covenants, and undertakings in this Agreement or any of the Other
Agreements against both the Purchasers and/or against any Weida Common Stock
issued or proposed to be issued as part of the Consideration for Sale. Without
limiting the foregoing recourse, or any other rights and remedies of
Purchasers, Vendors expressly acknowledge and agree that SCL may instruct and
direct Weida US to cancel Weida Common Stock issued or proposed to be issued as
part of the Consideration for Sale or to restrict transfers by Vendors of Weida
Common Stock issued or proposed to be issued as part of the Consideration for
Sale in the event of any breach by Purchasers or their Affiliates of the
representations, warranties, covenants, and undertakings in this Agreement or
any of the Other Agreements. The foregoing rights may be exercised by SCL as a
non-exclusive remedy for breach both before and after the Completion Date and
payment of Consideration for Sale.

 

5.4             Vendors
expressly acknowledge and agree that Weida US is the direct parent of SCL, the
indirect parent of the WOFE and is an intended third-party beneficiary of the
rights of SCL and of the WOFE under this Agreement and the Other Agreements,
and may enforce such rights to the same extent and effect as the Purchasers.

 

5.5             Vendors
further agree that the share certificates representing the Weida Common Stock
may bear a restrictive legend noting Purchasers’ and Weida US’s rights
hereunder, and that the stock records of Weida US may include a notation as to
the existence of such rights.

 

6.             MUTUAL REPRESENTATIONS AND WARRANTIES

 

6.1  
Each of the Vendors and the Purchasers hereby represents and warrants to
each other that:

 

6.1.1        it
has the power to execute, perform its obligations and enter into all
transaction contemplated by this Agreement and all necessary corporate and
other action has been taken to authorize the execution, delivery and
performance by it of this Agreement and the documents herein contemplated;

 

6.1.2        the
execution and performance of this Agreement and the documents herein
contemplated do not violate any applicable law, rule or regulation to which it
is subject.

 

7.             TERMINATION

 

7.1           If
at any time prior to Completion Date:

 

7.1.1        the
Vendors commit any material breach of or fail to observe any of their
obligations or undertakings under this Agreement or/and the Attachment hereto;
or

 

6

 

7.1.2        the
Company shall sustain any loss or damage; or

 

7.1.3 
any petition is presented for the winding up or liquidation of the
Company, or the Company makes any or arrangement with its creditors or enters
into a reorganization scheme of the Company;

 

then, in any such case, the Purchasers may
before the Completion Date, in their absolute discretion without any liability
on their part, by notice in writing to the Vendors, terminate this
Agreement.  The right to forthwith
terminate this Agreement under each of sub-clauses above is a separate and
independent right, and the exercise of any such right shall not affect or
prejudice or constitute a waiver of any other right, remedy or claim which the
Purchasers may have as at the date of such notice (including but not limited to
any other right to terminate this Agreement).

 

8.             CONFIDENTIALITY

 

8.1           CONFIDENTIAL
INFORMATION

 

For purposes of this Agreement, “Confidential
Information” shall mean all oral, written and/or tangible information concerning
the business, commerce, technology, finance, labor, or tax of the Company, and
the existence, terms and conditions or amendments of this Agreement.

 

8.2          
TREATMENT OF CONFIDENTIAL INFORMATION

 

Unless otherwise required by HK law or this
Agreement or United States federal securities laws, during the term of this
Agreement, each of the Vendors and their Affiliates, shall refrain from
disclosing, divulging, discussing or otherwise making available, any
Confidential Information made available in the course of the transaction(s)
contemplated hereby. Each of the Vendors will not use and will cause its
Affiliates to not use such Confidential Information for any purpose other than
the performance of its obligations under this Agreement. Each of the Vendors
shall cause its employee or agent to obey the confidential requirements hereof
for Confidential Information.

 

8.3          
EXCLUDED INFORMATION

 

Notwithstanding the foregoing, information
shall not be deemed confidential and recipient shall have no obligation with
respect to any such information which:

 

is shown to be in the public domain by means
other than as a consequence of a breach of this Agreement, or

 

was independently developed by recipient.

 

8.4          
PROVISION OF INFORMATION TO REGULATORY BODIES

 

Nothing in this Agreement shall be construed to
limit any Party’s ability to provide information to any applicable regulatory
body, to the extent required by law.

 

7

 

8.5  
OTHER RESTRICTIONS

 

Notwithstanding anything in this Section 8 to
the contrary, in the event that any Confidential Information is also subject to
a limitation on disclosure or use contained in another written agreement
between the Parties which is more restrictive than the limitations contained in
this Section 8, then the limitations in such agreement shall supersede this
Section 8.

 

9.             NOTICES

 

9.1  
All notices, claims, certificates, requests, demands and other
communications under this Agreement shall be made in writing and shall be
delivered postage prepaid, by post mail or courier services to the Parties at
the following addresses or delivered to the following facsimile number:

 

To the Purchasers:

Address:

Person:

Facsimile:

E-mail:

 

To the Vendors:

Address:

Person:

Facsimile:

E-mail:

 

or such other address or facsimile number as
may be notified by such party to the others.

 

9.2  
Any notice or other communication shall be deemed to have been received
if sent by facsimile, on the date of transmission; or if delivered personally,
when delivered to the address above; or if sent by post, 7 days if overseas and
24 hours if local after the date of posting.

 

10.          GENERAL

 

10.1         This
Agreement shall be governed by and construed under the laws of the State of New
York, without regard to any principles of conflict of laws.

 

10.2         This
Agreement may be executed 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.

 

10.3         Headings
and titles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

 

8

 

10.4         DISPUTE
RESOLUTION.

 

10.4.1      Consultations

 

In the event a dispute arises in connection
with this Agreement, the Parties shall attempt in the first instance to resolve
such dispute through friendly consultations. If the dispute cannot be resolved
in this manner within 30 days after the commencement of discussions, any Party
may submit the dispute to arbitration. 
The day when a notice for consultation from any Party is received shall
be deemed the day of commencement of discussions.

 

10.4.2      Arbitration

 

Arbitration shall be conducted as follows:

 

(i)            Arbitration
shall be conducted through the Hong Kong International Arbitration Centre (the
“HKIAC”), under the then effective rules of the HKIAC. There shall be three
arbitrators. The claimants in the arbitration shall collectively appoint one
arbitrator, and the respondent shall collectively appoint one arbitrator. Such
arbitrators shall be freely selected, and the Parties shall not be limited in
their selection to any prescribed list. The two arbitrators shall select the
third arbitrator. If either the claimants or the respondents do not appoint an
arbitrator who has consented to participate within 15 days after receiving the
arbitration notice, the HKIAC shall make the relevant appointment.

(ii)           The
arbitration proceedings shall be conducted in English. The arbitration tribunal
shall apply the Rules of the HKIAC in effect at the time of the arbitration.
However, if such rules are in conflict with the provisions of this sub-clause
10.4, including the provisions concerning the appointment of arbitrators, the
provisions of this sub-clause 10.4 shall prevail.

(iii)          The
arbitrators shall decide any dispute submitted by the parties to the
arbitration strictly in accordance with the substantive law of the HKSAR and
shall not apply any other substantive law.

(iv)          Each
Party shall cooperate with the other in making full disclosure of and providing
complete access to all information and documents requested by the other in
connection with such arbitration proceedings, subject only to any
confidentiality obligations binding on such Party.

(v)  The
award of the arbitral tribunal shall be final and binding upon the disputing
Party(ies), and any prevailing Party(ies) may apply to a court of competent
jurisdiction for enforcement of such award.

 

10.5         This
Agreement is made for the benefit of the Purchasers and the Vendors, or their
successors.  Unless otherwise set forth
herein or therein, all representations and warranties, statements, covenants
and agreements made by the Parties in this Agreement, or pursuant hereto or to
any other agreements, instruments or documents delivered in connection
herewith, shall survive the Completion or the termination or dissolution of the
Company.

 

10.6         If
any provision of this Agreement is found invalid or unenforceable, the validity
or enforceability of the remaining provisions or portions hereof shall not be
affected.

 

9

 

10.7         Each
of the Parties hereto shall, from time to time and without further
consideration, execute and deliver such other documents, instruments of
transfer, conveyances, and assignments, and take such further actions, as the
other Party(ies) may reasonably require to effectively complete and implement
this Agreement.

 

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

 

 

	
  SCL Ventures Ltd.

  
	
   

  
	
  By:

  	
  /s/ Mitchell Sepaniak

  	
   

  
	
  Name:  Mitchell Sepaniak

  
	
  Title:  President and Chief
  Executive Officer

  
	
   

  
	
  Jack Chin

  
	
   

  
	
  /s/  Jack Chin

  	
   

  
	
   

  
	
  HONEST LINK INTERNATIONAL LTD.

  
	
   

  
	
  By:

  	
  /s/ Deng Long Long

  	
   

  
	
  Name:  Deng Long Long

  
	
  Title:  Director

  
	
   

  
	
  WORLDWISE DEVELOPMENT LTD.

  
	
   

  
	
  By:

  	
  /s/ Deng Long Long

  	
   

  
	
  Name:  Deng Long Long

  
	
  Title:  Director

  
	
   

  
	
  MAGIC TECHNOLOGY DEVELOPMENT LTD.

  
	
   

  
	
  By:

  	
  /s/ Deng Long Long

  	
   

  
	
  Name:  Deng Long Long

  
	
  Title:  Director

  
	
   

  
	
  ENERGIC DEVELOPMENT LTD.

  
	
   

  
	
  By:

  	
  /s/ Deng Long Long

  	
   

  
	
  Name:  Deng Long Long

  
	
  Title:  Director

  
				

 

10

 

	
  OCEAN CHANNEL INVESTMENTS LTD.

  
	
   

  
	
  By:

  	
  /s/ Deng Long Long

  	
   

  
	
  Name:  Deng Long Long

  
	
  Title:  Director

  

 

11

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