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  Exhibit 10.13

 

ACQUISITION AGREEMENT AND PLAN OF MERGER

 

THIS ACQUISITION AGREEMENT AND PLAN OF
MERGER (this “Agreement”) is made and entered
into on this 29th day of December,
2017, by and among SeD Intelligent Home Inc., a Nevada corporation
(the “Public Company”), SeD Acquisition Corp., a
Delaware corporation (the “Merger Sub”), SeD Home
International, Inc., a Delaware corporation (“SeD Home
International”), and SeD Home, Inc., a corporation
incorporated under the laws of the State of Delaware (“SeD
Home”).

 

W I T N E S S E T H:

 

WHEREAS, the Public Company is the sole
shareholder of the Merger Sub;

 

WHEREAS, SeD Home International, Inc. is
the sole shareholder of SeD Home;

 

WHEREAS, SeD Home International, Inc. is
the owner of the majority of the shares of the common stock of the
Public Company, and owns 74,015,730 of the 74,043,324 issued and
outstanding shares of the common stock of the Public
Company;

 

WHEREAS, the board of directors of each
of the Public Company and the Merger Sub have each determined that
a merger of the Merger Sub with and into SeD Home (the
“Merger”), upon the terms and subject to the conditions
set forth in this Agreement, is in the best interests of the Merger
Sub, the Public Company, and the shareholders thereof, and
accordingly, their respective boards of directors have each
approved the Merger;

 

WHEREAS, the board of directors of each
of SeD Home and its sole shareholder SeD Home International have
determined that the Merger, upon the terms and subject to the
conditions set forth in this Agreement, is in the best interests of
the shareholders of SeD Home and SeD Home International, and
accordingly each board of directors has approved the
Merger;

 

WHEREAS, each of the Public Company,
Merger Sub, SeD Home International and SeD Home acknowledge that
the Public Company is a “shell” company, as that term
is defined in Rule 12b-2 under the Exchange Act of 1934, as
amended (17 CFR 240.12b-2), and accordingly has nominal activities
and assets;

 

WHEREAS, SeD Home International has
determined that it is advisable to transfer the ownership of all of
the issued and outstanding shares of SeD Home to the Public
Company, with the understanding that the Public Company’s
ownership of SeD Home will be beneficial to SeD Home
International;

 

WHEREAS, each of the Public Company,
Merger Sub, SeD Home International and SeD Home acknowledge that
SeD Home International has agreed to the transfer of all of the
issued and outstanding shares of SeD Home only as a result of its
present ownership of 74,015,730 shares of the Public
Company’s common stock;

 

WHEREAS, the Public Company has agreed
to issue 630,000,000 shares of the Public Company’s common
stock to SeD Home International;

 

WHEREAS, each of the Public Company,
Merger Sub, SeD Home International and SeD Home desire to make
certain representations, warranties, covenants and agreements in
connection with the Merger; and

 

WHEREAS, for federal income tax
purposes, the parties intend that the Merger shall qualify as a
reorganization under the provisions of Section 368(a)(2)(E) of the
Internal Revenue Code of 1986, as amended (the “Code”)
and shall be a tax free exchange;

 

NOW, THEREFORE, in consideration of the
representations, warranties, covenants and agreements contained
herein, the parties agree as follows:

 

 

 

 

ARTICLE I.

DEFINITIONS

 

When
used in this Agreement, the following terms shall have the
following meanings:

 

1.01
Certificate of Merger. “Certificate of Merger” shall
mean a Certificate of Merger in substantially the form attached to
this Agreement as Exhibit
A and to be filed with the Secretary of State of the State
of Delaware.

 

1.02
Closing. “Closing” and “Closing Date” shall
mean the closing of the transactions contemplated by this
Agreement.

 

1.03
Effective Time. “Effective Time” shall mean the date of
which the Certificate of Merger is properly filed with the
Secretary of State of the State of Delaware, as required under the
applicable provisions of the law of such jurisdiction, or at such
other time as is permissible in accordance with the
DGCL.

 

1.04
SeD Home Shares. “SeD Home Share(s)” shall mean the
shares of common stock, par value $0.0001 per share, of SeD Home,
Inc.

 

1.05
Material Adverse Change; Material Adverse Effect. “Material
Adverse Change” or “Material Adverse Effect”
means, when used in connection with SeD Home, the Public Company or
Merger Sub, any change or effect that either individually or in the
aggregate with all other such changes or effects is materially
adverse to the business, assets, properties, condition (financial
or otherwise) or results of operations of such party taken as a
whole.

 

1.06
Person. “Person” means an individual, corporation,
partnership, joint venture, association, trust, unincorporated
organization or other entity.

 

1.07
Subsidiary. A “Subsidiary” of any person means another
person, an amount of the voting securities, other voting ownership
or voting partnership interests of which is sufficient to elect at
least a majority of its Board of Directors or other governing body
(or, if there are no such voting interests, fifty percent (50%) or
more of the equity interests) is owned directly or indirectly by
such first person.

 

1.08
Surviving Corporation. “Surviving Corporation” shall
have the meaning set forth in Section 2.01.

 

 

ARTICLE II.

THE MERGER

 

2.01
The Merger. Upon the terms and subject to the conditions set forth
in this Agreement, the Certificate of Merger and in accordance with
the Delaware General Corporation Law (the “DGCL”), at
the Effective Time of the Merger, the Merger Sub shall merge with
SeD Home, and SeD Home shall continue as a subsidiary of the Public
Company and shall continue its corporate existence under the laws
of the State of Delaware (the “Surviving
Corporation”).

 

2.02
Effective Time. The Merger shall become effective on the date and
at the time the Certificate of Merger is filed with the Secretary
of State of Delaware in accordance with provisions of the DGCL, or
at such other time as is permissible in accordance with the DGCL.
The time at which the Merger shall become effective as aforesaid is
referred to hereinafter as the “Effective
Time.”

 

2.03
Closing. The closing of the Merger (the “Closing”)
shall occur concurrently with the Effective Time (the
“Closing Date”). The Closing shall occur at 4800
Montgomery Lane, Suite 210, Bethesda, MD 20814, unless another
place is agreed to in writing by the parties hereto.

 

 

 

 

2.04
Manner and Basis of Converting Shares. At the Effective Time, the
500,000,000 SeD Home Shares that shall be outstanding immediately
prior to the Effective Time shall, by virtue of the Merger and
without any action on the part of the holder thereof, be converted
into 630,000,000 shares of the common stock of the Public Company
to be held by SeD Home International. As of the Effective Time, all
of the common stock of the Merger Sub issued and outstanding
immediately prior to the Effective Time shall no longer be
outstanding and shall automatically be exchanged for 500,000,000
shares of SeD Home, all of which shares of SeD Home shall be held
by the Public Company as the sole shareholder of the Surviving
Corporation following the Effective Time. Accordingly, SeD Home
International shall have received an aggregate total of 630,000,000
shares of the common stock of the Public Company and the Public
Company shall own all of the issued and outstanding shares of SeD
Home. All shares to be issued hereby shall be issued as of the
Effective Time of the Merger, by virtue of the Merger and without
any action on the part of SeD Home International. The 630,000,000
shares of the Public Company’s common stock to be issued to
SeD Home International pursuant to this Agreement shall upon
issuance be duly authorized, validly issued, fully paid and
non-assessable. The 500,000,000 shares of the Surviving Corporation
to be issued to the Public Company shall be duly authorized,
validly issued, fully paid and non-assessable. The certificates
representing the shares of common stock to be issued pursuant to
this Agreement shall bear an appropriate legend indicating that
such shares have not been registered pursuant to the Securities Act
of 1933, as amended.

 

2.05
Effective Date of Merger. As soon as practicable, the parties shall
file the Certificate of Merger with the Secretary of State of the
State of Delaware executed in accordance with the relevant
provisions of the DGCL and shall make all other filings or
recordings required thereunder. The Merger shall become effective
at such date as the Certificate of Merger is duly filed with the
Secretary of State of Delaware, or at such other time as is
permissible in accordance with the DGCL (the time the Merger
becomes effective being the “Effective Time of the
Merger”). The Public Company shall use reasonable efforts to
have the Closing Date and the Effective Time of the Merger to be
the same day.

 

2.06
Effects of the Merger. The Merger shall have the effects set forth
in the applicable provisions of the DGCL.

 

2.07
Articles of Incorporation; Bylaws; Purposes.

 

(a)           The
Articles of Incorporation of SeD Home in effect immediately prior
to the Effective Time of the Merger shall be the Articles of
Incorporation of the Surviving Corporation until thereafter changed
or amended as provided therein or by applicable law. SeD Home shall
be a wholly-owned subsidiary of the Public Company. The Public
Company’s Articles of Incorporation shall not be amended or
changed hereby.

 

(b)         
The Bylaws of SeD Home in effect at the Effective Time of the
Merger shall be the Bylaws of the Surviving Corporation until
thereafter changed or amended as provided therein or by applicable
law. The Public Company’s Bylaws shall not be amended or
changed hereby.

 

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.01
Representations and Warranties of SeD Home. SeD Home represents and
warrants to the Public Company as follows:

 

(a)        
Organization, Standing and Corporate Power. SeD Home is a
corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware.

 

(b)        
Capital Structure. The issued and outstanding shares of SeD Home
consists of 500,000,000 shares that are held by one (1)
shareholder. SeD Home has no other securities of any nature issued
or outstanding. All outstanding SeD Home Shares are duly
authorized, validly issued, fully paid and
non-assessable.

 

 

 

 

 

(c)           Authority;
Non-contravention. SeD Home has the requisite power and authority
to enter into this Agreement and to consummate the Merger. The
execution and delivery of this Agreement by SeD Home and the
consummation by SeD Home of the transactions contemplated hereby
have been duly authorized by all necessary corporate action on the
part of SeD Home. This Agreement has been duly executed and
delivered by SeD Home and constitutes a valid and binding
obligation of SeD Home, enforceable against SeD Home in accordance
with its terms.

 

3.02
Representations and Warranties of the Public Company and Merger
Sub. The Public Company and the Merger Sub each represent and
warrant to each of SeD Home and SeD Home International as
follows:

 

 (a)         
Organization, Standing and Corporate Power. The Public Company and
Merger Sub are duly incorporated, validly existing and in good
standing under the laws of the State of Nevada and Delaware,
respectively, and each has the requisite corporate power and
authority to carry on its business as now being conducted. The
Public Company and Merger Sub are duly qualified or licensed to do
business and is in good standing in each jurisdiction in which the
nature of its business makes such qualification or licensing
necessary, other than in such jurisdictions where the failure to be
so qualified or licensed (individually or in the aggregate) would
not have a Material Adverse Effect.

 

(b)           Subsidiaries.
The Public Company has no Subsidiaries other than the Merger Sub.
Merger Sub is an entity duly organized, validly existing and in
good standing under the laws of the jurisdiction of its
organization. The Merger Sub was formed solely to effectuate the
Merger and has not conducted any business operations since its
organization. The Public Company has delivered or made available to
SeD Home complete and accurate copies of the charter, bylaws or
other organizational documents of the Merger Sub. The Merger Sub
has no assets, it has no liabilities or other obligations, and it
is not in default under or in violation of any provision of its
charter, bylaws or other organizational documents. All shares of
the Merger Sub are owned by the Public Company free and clear of
any restrictions on transfer (other than restrictions under the
Securities Act and state securities laws), claims, security
interests, options, warrants, rights, contracts, calls,
commitments, equities and demands. There are no outstanding or
authorized options, warrants, rights, agreements or commitments to
which the Public Company or the Merger Sub is a party or which are
binding on any of them providing for the issuance, disposition or
acquisition of any capital stock of the Merger Sub (except as
contemplated by this Agreement).

 

(c)           Capital
Structure. The authorized capital stock of the Public Company
consists of 1,000,000,000 shares of common stock, $.001 par value,
of which 74,043,324 shares are issued and outstanding as of the
date hereof. There are no outstanding bonds, debentures, notes or
other indebtedness or other securities of the Public Company having
the right to vote (or convertible into, or exchangeable for,
securities having the right to vote) on any matters on which
shareholders of the Public Company may vote. There are no
outstanding securities, options, warrants, calls, rights,
commitments, agreements, arrangements or undertakings of any kind
to which the Public Company is a party or by which it is bound
obligating the Public Company to issue, deliver or sell, or cause
to be issued, delivered or sold, additional common stock of the
Public Company or other equity or voting securities of the Public
Company or obligating the Public Company to issue, grant, extend or
enter into any such security, option, warrant, call, right,
commitment, agreement, arrangement or undertaking. There are no
outstanding contractual obligations, commitments, understandings or
arrangements of the Public Company to repurchase, redeem or
otherwise acquire or make any payment in respect of any common
stock of the Public Company or any other securities of the Public
Company. Those 74,015,730 shares of the Public Company’s
common stock presently owned by SeD Home International were validly
issued by the Public Company.

 

 

 

 

(d)           Authority;
Non-contravention. The Public Company and the Merger Sub have all
requisite authority to enter into this Agreement and to consummate
the transactions contemplated by this Agreement. The execution and
delivery of this Agreement by the Public Company and Merger Sub and
the consummation by the Public Company and Merger Sub of the
transactions contemplated by this Agreement have been duly
authorized by all necessary corporate action on the part of the
Public Company and Merger Sub. This Agreement has been duly
executed and delivered by and constitutes a valid and binding
obligation of the Public Company and Merger Sub, enforceable in
accordance with its terms. The execution and delivery of this
Agreement does not, and the consummation of the transactions
contemplated by this Agreement and compliance with the provisions
of this Agreement will not, conflict with, or result in any breach
or violation of, or default (with or without notice or lapse of
time, or both) under, or give rise to a right of termination,
cancellation or acceleration of or “put” right with
respect to any obligation or to loss of a material benefit under,
or result in the creation of any lien upon any of the assets of the
Public Company or Merger Sub under, (i) the Articles of
Incorporation or bylaws of the Public Company or Merger Sub or the
comparable charter or organizational documents of any other
Subsidiary of the Public Company or Merger Sub, (ii) any loan or
credit agreement, note, bond, mortgage, indenture, lease or other
agreement, instrument, permit, concession, franchise or license
applicable to the Public Company, Merger Sub or their respective
properties or assets, or (iii) subject to the governmental filings
and other matters referred to in the following sentence, any
judgment, order, decree, statute, law, ordinance, rule, regulation
or arbitration award applicable to the Public Company, Merger Sub
or their respective assets other than, in the case of clauses (ii)
and (iii), any such conflicts, breaches, violations, defaults,
rights, losses or liens that individually or in the aggregate could
not have a Material Adverse Effect with respect to the Public
Company or Merger Sub or could not prevent, hinder or materially
delay the ability of the Public Company or Merger Sub to consummate
the transactions contemplated by this Agreement. No consent,
approval, order or authorization of, or registration, declaration
or filing with, or notice to, any governmental entity is required
by or with respect to the Public Company or Merger Sub in
connection with the execution and delivery of this Agreement by the
Public Company or Merger Sub or the consummation by the Public
Company or Merger Sub, as the case may be, of any of the
transactions contemplated by this Agreement, except for the filing
of the Certificate of Merger with the Secretary of State of the
State of Delaware, as required.

 

(e)           SEC
Documents; Undisclosed Liabilities. The Public Company has filed
all reports, schedules, forms, statements and other documents as
required by the U.S. Securities and Exchange Commission (the
“SEC”) and the Public Company has delivered or made
available to SeD Home all reports, schedules, forms, statements and
other documents filed with the SEC (collectively, and in each case
including all exhibits and schedules thereto and documents
incorporated by reference therein, the “Public Company SEC
Documents”). The Public Company SEC Documents complied in all
material respects with the requirements of the Securities Act or
the Exchange Act, as the case may be, and the rules and regulations
of the SEC promulgated thereunder applicable to such Public Company
SEC documents, and none of the Public Company SEC Documents
(including any and all consolidated financial statements included
therein) as of such date contained any untrue statement of a
material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made,
not misleading. None of the Public Company SEC Documents contains
any untrue statement of a material fact or omits to state any
material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made,
not misleading. The consolidated financial statements of the Public
Company included in such Public Company SEC Documents comply as to
form in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC
with respect thereto, have been prepared in accordance with
generally accepted accounting principles (except, in the case of
unaudited consolidated quarterly statements, as permitted by Form
10-Q of the SEC) applied on a consistent basis during the periods
involved (except as may be indicated in the notes thereto) and
fairly present the consolidated financial position of the Public
Company and its consolidated subsidiaries as of the dates thereof
and the consolidated results of operations and changes in cash
flows for the periods then ended (subject, in the case of unaudited
quarterly statements, to normal year-end audit adjustments as
determined by the Public Company’s independent accountants).
Except as set forth in the Public Company SEC Documents, at the
date of the most recent audited financial statements of the Public
Company included in the Public Company SEC Documents, neither the
Public Company nor any of its subsidiaries had, and since such date
neither the Public Company nor any of such subsidiaries has
incurred, any liabilities or obligations of any nature (whether
accrued, absolute, contingent or otherwise) which, individually or
in the aggregate, could reasonably be expected to have a Material
Adverse Effect with respect to the Public Company.

 

 

 

 

(f)         
Absence of Certain Changes or Events. Except as disclosed in the
Public Company SEC Documents, since the date of the most recent
financial statements included in the Public Company SEC Documents,
there is not and has not been: (i) any Material Adverse Change with
respect to the Public Company or Merger Sub; or (ii) any condition,
event or occurrence which, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect or give
rise to a Material Adverse Change with respect to the Public
Company or Merger Sub.

 

(g)         
Litigation; Compliance with Laws.

 

(i)          
There is no suit, action or proceeding or investigation pending or
threatened against or affecting the Public Company or Merger Sub or
any basis for any such suit, action, proceeding or investigation
that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect with respect to the
Public Company or Merger Sub or prevent, hinder or materially delay
the ability of the Public Company or Merger Sub to consummate the
transactions contemplated by this Agreement, nor is there any
judgment, decree, injunction, rule or order of any governmental
entity or arbitrator outstanding against the Public Company or
Merger Sub having, or which, insofar as reasonably could be
foreseen by the Public Company or Merger Sub, in the future could
have, any such effect.

 

(ii)         
The conduct of the business of the Public Company has complied with
all statutes, laws, regulations, ordinances, rules, judgments,
orders, decrees or arbitration awards applicable
thereto.

 

(h)           Material
Contract Defaults. The Public Company and Merger Sub are not, or
have not, received any notice or have any knowledge that any other
party is, in default in any respect under any Material Contract;
and there has not occurred any event that with the lapse of time or
the giving of notice or both would constitute such a material
default. For purposes of this Agreement, a “Material
Contract” means any contract, agreement or commitment that is
effective as of the Closing Date to which the Public Company or
Merger Sub is a party (i) with expected receipts or expenditures in
excess of $25,000, (ii) requiring the Public Company or Merger Sub
to indemnify any person, (iii) granting exclusive rights to any
party, (iv) evidencing indebtedness for borrowed or loaned money in
excess of $25,000 or more, including guarantees of such
indebtedness, or (v) which, if breached by the Public Company or
Merger Sub in such a manner would (A) permit any other party to
cancel or terminate the same (with or without notice of passage of
time) or (B) provide a basis for any other party to claim money
damages (either individually or in the aggregate with all other
such claims under that contract) from the Public Company or Merger
Sub or (C) give rise to a right of acceleration of any material
obligation or loss of any material benefit under any such contract,
agreement or commitment.

 

(i)           Financial
Statements. The audited financial statements and unaudited interim
financial statements of the Public Company included in the SEC
Documents (i) complied as to form in all material respects with
applicable accounting requirements and, as appropriate, the
published rules and regulations of the SEC with respect thereto
when filed, (ii) were prepared in accordance with GAAP applied on a
consistent basis throughout the periods covered thereby (except as
may be indicated therein or in the notes thereto, and in the case
of quarterly financial statements, as permitted by Form 10-Q under
the Exchange Act), (iii) fairly present the consolidated financial
condition, results of operations and cash flows of the Public
Company as of the respective dates thereof and for the periods
referred to therein, and (iv) are consistent with the books and
records of the Public Company.

 

(j)           Undisclosed
Liabilities. Neither of the Public Company nor the Merger Sub has
any liability (whether known or unknown, whether absolute or
contingent, whether liquidated or unliquidated and whether due or
to become due), except for (a) liabilities shown on the balance
sheet contained in the most recent Form 10-Q filed with the SEC,
(b) liabilities which have arisen since the date of the balance
sheet contained in the most recent Form 10-Q filed with the SEC in
the ordinary course of business which do not exceed $25,000.00 in
the aggregate and (c) contractual and other liabilities incurred in
the ordinary course of business which are not required by GAAP to
be reflected on a balance sheet.

 

 

 

 

ARTICLE IV.

INDEMNIFICATION AND RELATED MATTERS

 

4.01
Survival of Representations and Warranties. The representations and
warranties of the parties made in Article III of this Agreement
shall not survive beyond the ten (10) year anniversary of the
Effective Time.

 

4.02
Indemnification by the Public Company. The Public Company shall
indemnify SeD Home International in respect of, and hold it
harmless against, loss, liability, deficiency, damages, expense or
cost (including without limitation amounts paid in settlement,
interest, court costs, costs of investigators, fees and expenses of
attorneys, accountants, financial advisors and other experts, and
other expenses of litigation, arbitration or otherwise)
(“Damages”) incurred or suffered by SeD Home
International resulting from:

 

(a)           any
misrepresentation, inaccurate representation, including but not
limited to any inaccurate representation regarding the validity of
shares previously issued or to be issued to SeD Home International
or any predecessor in interest thereof, breach of warranty or
failure to perform any covenant or agreement of Public Company or
Merger Sub contained in this Agreement;

 

(b)           any
claim by a stockholder or former stockholder of the Public Company
or any other person or entity, seeking to assert, or based upon:
(i) ownership or rights to ownership of any shares of the common
stock of the Public Company; (ii) any rights under the certificate
of incorporation or bylaws of the Public Company or Merger Sub;
(iii) any claim that his, her or its shares of common stock lost
value as a result of the transactions contemplated hereby; or (iv)
any claim that any shares of the Public Company’s common
stock are not validly owned by SeD Home International, including
but not limited to those 74,015,730 shares of the Public
Company’s common stock owned by SeD Home International prior
to the Closing Date or the 630,000,000 shares of the Public
Company’s common stock to be issued hereby or any challenge
to any issuance of shares of the Public Company’s common
stock to any predecessor to SeD Home International.

 

ARTICLE V.

GENERAL PROVISIONS

 

5.01
Notices. All notices, demands, requests, consents, approvals, and
other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be (i)
personally served, (ii) deposited in the mail, registered or
certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or
(iv) transmitted by hand delivery, telegram, or facsimile,
addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or
other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by
facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such
notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the
first business day following the date of mailing by express courier
service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses
for such communications shall be:

 

(a) if
to the Public Company or Merger Sub:

 

SeD
Intelligent Home Inc.

4800
Montgomery Lane, Suite 210

Bethesda,
MD 20814

 

(b) if
to SeD Home and SeD Home International, Inc.:

 

SeD
Home, Inc.

4800
Montgomery Lane, Suite 210

Bethesda,
MD 20814

 

 

 

 

5.02
Interpretation. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement. Whenever the words
“include”, “includes” or
“including” are used in this Agreement, they shall be
deemed to be followed by the words “without
limitation”.

 

5.03
Entire Agreement. This Agreement constitutes the entire agreement,
and supersede all prior agreements and understandings, both written
and oral, among the parties with respect to the subject matter of
this Agreement.

 

5.04
Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware without regard to
principles of conflicts of laws. Any action brought by either party
hereto against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of
Delaware or in the federal courts located in the state of Delaware.
The parties to this Agreement hereby irrevocably waive any
objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of
jurisdiction or venue or based upon forum non conveniens. The
parties hereto agree to submit to the in person am jurisdiction of
such courts and hereby irrevocably waive trial by jury. The
prevailing party shall be entitled to recover from the other party
its reasonable attorney’s fees and costs.

 

5.05
Assignment. Neither this Agreement nor any of the rights, interests
or obligations under this Agreement shall be assigned, in whole or
in part, by operation of law or otherwise by any of the parties
without the prior written consent of the other parties, except that
SeD Home International may assign its rights hereunder without the
consent of the other parties hereto. Subject to the preceding
sentence, this Agreement will be binding upon, inure to the benefit
of, and be enforceable by, the parties and their respective
successors and assigns.

 

5.06
Severability. Whenever possible, each provision or portion of any
provision of this Agreement will be interpreted in such manner as
to be effective and valid under applicable law but if any provision
or portion of any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision
or portion of any provision in such jurisdiction, and this
Agreement will be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision
or portion of any provision had never been contained
herein.

 

5.07
Counterparts. This Agreement may be executed in one or more
identical counterparts, all of which shall be considered one and
the same instrument and shall become effective when one or more
such counterparts shall have been executed by each of the parties
and delivered to the other parties.

 

[signature
page follows]

 

 

 

 

IN WITNESS WHEREOF, the undersigned have
caused their duly authorized officers to execute this Agreement as
of the date first above written.

 

	
 

	
 SED
INTELLIGENT HOME INC., as Public Company

 

 

By:
/s/ Rongguo Wei  
                 
            
    

       Name: Rongguo
Wei

       Title:  
Chief Financial Officer

 

 

SED
ACQUISITION CORP., as Merger Sub

 

 

By:
/s/ Rongguo Wei  
                 
            
 

       Name: Rongguo
Wei

       Title:  
Chief Financial Officer

 

 

SED
HOME INTERNATIONAL, INC.

 

 

By: /s/ Fai H. Chan      
                 
           
 

      
Name: Fai H. Chan

      
Title:   Chairman

 

 

SED
HOME, INC.

 

 

By: /s/ Fai H. Chan      
                 
           
  

      
Name: Fai H. Chan

      
Title:   Chairman and
Co-Chief Executive Officer

 

 

 

 

 

 

EXHIBIT A

 

FORM OF CERTIFICATE OF MERGER

 

 

CERTIFICATE OF MERGER

 

OF

 

SED ACQUISITION CORP.

 

INTO

 

SED HOME, INC.

 

Pursuant to Section 251 of the Delaware General Corporation
Law

 

The
undersigned, being the surviving corporation, hereby sets forth as
follows:

 

FIRST:
The name of the surviving corporation is SeD Home, Inc.; its state
of incorporation is Delaware.

 

SECOND:
The name of the non-surviving corporation is SeD Acquisition Corp.;
its state of incorporation is Delaware.

 

THIRD:
An Agreement of Merger has been approved, adopted, certified,
executed and acknowledged by each constituent corporation in
accordance with Section 251 of the State of Delaware General
Corporation Law.

 

FOURTH:
The Certificate of Incorporation of SeD Home, Inc. shall be the
Certificate of Incorporation of the surviving
corporation.

 

FIFTH:
The executed Agreement of Merger is on file at a place of business
of the surviving corporation; the address of said place of business
is c/o SeD Home, Inc., 4800 Montgomery Lane, Suite 210, Bethesda,
MD 20814.

 

SIXTH:
A copy of the Agreement of Merger will be furnished by the
surviving corporation, on request and without cost, to any
stockholder of any constituent corporation.

 

IN WITNESS WHEREOF, this certificate is
hereby executed this 29th day of December, 2017.

 

	
 

	
SeD
Home, Inc.

 

 

/s/ Rongguo Wei      
              
                                         

Name:  Rongguo
Wei

Title:   
Co-Chief Financial OfficerBlueprint

 

EXHIBIT 10.14

 

PURCHASE AND SALE AGREEMENT

(DEVELOPED -
BULK)

This
Purchase and Sale Agreement (“Agreement”) is made between
150 CCM Black Oak, Ltd. a Texas
limited partnership (collectively “Seller” and/or “Developer”, whether one or more)
and Houston LD, LLC
(“Buyer”).

 

1. Sale
of Property/Lots. Seller agrees to sell and Buyer agrees to
purchase, subject to the terms and conditions of this Agreement,
certain property more particularly described as
follows:

 

124
Lots located in the Lakes at Black Oak Subdivision, Magnolia,
Montgomery County, Texas, as more particularly referenced and
described on the “Plat” attached hereto as Exhibit A, and specifically
including the Lot Numbers listed on Exhibit A.

together
with all improvements thereon and all appurtenant rights of Seller
including, without limitation, any rights of ingress and egress
through the adjacent streets, roads, infrastructure, alleys and
right-of-ways and such other rights as may be specified in this
Agreement (collectively the “Property”, which may refer also to
the lots included therein). Buyer and Seller acknowledge and
understand the location and description of the Property referenced
and described herein, regardless of the sufficiency of any legal
description.

 

2. Purchase
Price. The Purchase Price for
Property shall be $6,175,000.00
and allocated as
follows:

 

	
50 lf
Lot

	
 $44,000 

	
Number of lots:
53

	
 $2,332,000 

	
60 lf
Lot

	
 $54,000 

	
Number of lots:
70

	
 $3,780,000 

	
70 lf
Lot

	
 $63,000 

	
Number of lots:
1

	
 $63,000 

 

The
Purchase Price shall be payable as follows:

 

a.

Within two (2) business days of the Effective
Date, Buyer shall deliver $50,000 to Texas State Title,
attn. Cody Sobieski, Pres. 281-640-7660
(“Escrow Agent”) as earnest money to be credited toward
the Purchase Price at the Closing. In addition, Buyer shall deliver
along with the earnest money the independent consideration for the
inspection period in Paragraph 4
below.

 

b.

Within two (2) business days after the expiration
of the Inspection Period, Buyer shall deliver to the Escrow Agent
an additional $100,000 non-refundable earnest money deposit, which
shall be considered earnest money for all purposes under this
Agreement, except that it is non-refundable unless
Seller defaults.

 

c.

The
remaining balance of the Purchase Price shall be paid in cash or
its equivalent at Closing as specified below, as adjusted for
prorations and closing costs described below, and subject to
exceptions contained herein.

 

d.

In addition to the Purchase Price, Buyer agrees to
pay $2,500 per lot at Closing as a “community enhancement
fee” which Seller will apply exclusively towards funding an
amenity package on the Property. The current proposed amenity
package is attached on Exhibit B
hereto.

 

The
Purchase Price to be paid by Buyer for the Property is conditioned
upon Seller’s delivery of the Property in compliance with the
terms and conditions of this Agreement.

 

3. Effective
Date. The Effective Date shall
be the date when the last one of the Buyer or Seller executes this
Agreement.

 

4. Due
Diligence Inspection Period.
For the independent consideration of $500 paid to the Escrow Agent
in accordance with Paragraph 2.a
above, Buyer shall have forty-five
(45) days from the Effective Date (“Inspection
Period”) in which the
Buyer may perform inspections and non-invasive testing, at its sole
expense, to determine if the Property and lots located therein, in
its sole discretion, is suitable for Buyer’s proposed
development, use and business purposes and that the lots within
Property are in compliance with all standards, conditions and terms
hereof and herein. Buyer and its representatives shall have access
to the Property during this Inspection Period and up until Closing.
Buyer agrees to restore the Property substantially to its original
condition after completion of such inspection and testing, which
obligation shall survive termination of this Agreement. Buyer may
cancel or terminate this Agreement at any time during the
Inspection Period for any reason by delivering written notice of
termination to Seller prior to the expiration of the Inspection
Period and the parties shall be released from any further rights,
obligations, and liabilities hereunder (except for those which
expressly survive termination) and all earnest money on deposit
shall be returned to the Buyer.

 

 

1

 

 

 

 

 

Buyer
shall indemnify, defend, and hold Seller and its employees,
representatives, and agents harmless from and against all claims,
liabilities, liens, costs, fees, and expenses, including, without
limitation, court costs, litigation expenses, and attorneys’
fees, related to or anyway arising from any of the inspections,
tests, or entry on the Property. This obligation to indemnify and
hold harmless shall survive the termination of this
Agreement.

 

Within
ten (10) days of the Effective Date, Seller agrees to disclose and
provide to Buyer copies of any third party materials that Seller
identifies in its possession that relate to the Property, which may
include (but Seller does not represent that it has all of these
materials) a current survey, boundary and topographical surveys,
plats, HOA, restrictive covenants and conditions, engineering
reports by electronic format in PDF, CAD (including but not limited
to .dwg and/or .dgn format) or other media, environmental reports,
flood zone certifications, soils reports, easement agreements,
encroachments or encumbrances, municipal zoning related documents,
improvement/management district information, requirements and fees,
mineral leases, oil/gas wells/lines, property line discrepancies,
and homeowners or community association documents, but Seller is
under no obligation to disclose or provide documents of record in
the real property records. Buyer may perform Phase I (but not Phase
II environmental assessments on Property during the Inspection
Period at its own expense.

 

If
Buyer does not terminate this Agreement prior to the expiration of
the Inspection Period, then the earnest money deposit shall become
non-refundable (subject only to Seller’s ability to convey
clear title and deliver the Property in compliance with the terms
and conditions of this Agreement), and which shall be applied
towards the Purchase Price at closing.

 

5. Title
Commitment. Within seven (7)
days after the Effective Date, Seller, at its expense, shall order
and deliver to Buyer a title commitment for the Property in the
amount of the Purchase Price from Escrow Agent and obtain a copy of
all documents which constitute exceptions to the title commitment.
Buyer shall give Seller written notice within twenty (20) days
following receipt of the Title Commitment of any condition of title
(exceptions or requirements) that is not satisfactory to Buyer.
Seller may, but shall not be obligated, to resolve such matters;
provided, however, that mortgage liens may be resolved at closing.
If Seller is unable or unwilling to resolve such matters before the
expiration of the Inspection Period as defined above, then Buyer
may, at Buyer’s sole option, either (1) accept title subject
to the objections raised by Buyer and such accepted objections
shall become Permitted Exceptions (“Permitted
Exceptions”) without any
adjustment in the Purchase Price, or (2) terminate this Agreement
prior to the expiration of the Inspection Period pursuant to
Paragraph
4 above, whereupon the earnest
monies shall be immediately returned to Buyer by Escrow Agent, or
(3) work with Seller, if mutually agreeable, to satisfy
unacceptable matters and postpone the end of the Inspection Period
and/or Closing Date to satisfy these matters. At Closing, Seller
shall provide Buyer with an owner’s policy of title insurance
in the amount of the Purchase Price. Seller shall pay the cost for
the basic cost of the owner’s policy of title insurance, and
Buyer shall pay the cost for all endorsements, changes, and
modifications to the owner’s policy of title
insurance.

 

6. Closing.
Closing shall occur within thirty (30) days after the expiration of
the Inspection Period (“Closing Date”) subject to the Property being delivered
in compliance with all terms herein.

 

7. Title
& Deliveries. At or prior
to Closing, Seller shall deliver to the Escrow Agent and/or Buyer
the following items for the Property, duly executed and
acknowledged where required:

 

A. Conveyance
Deed. A special warranty deed
in the form satisfactory to Buyer, specifically stating all
approved exceptions to title, if any, subject but not limited to,
zoning or deed restrictions, easements and encumbrances of record
by either Buyer or Seller, or future assessments if
applicable.

 

B. Foreign
Person Tax Withholding.
Documentation or information required for compliance with Section
1445 of the Internal Revenue Code.

 

C. Additional
Documents. Such additional
documents as might be reasonably required by the Buyer,
Buyer’s Lender, or the Escrow Agent to consummate the sale of
the Property and convey clear title to the Buyer with all
appurtenant rights.

 

D. Insurance
Policy and Costs. Seller will
pay the costs of Seller’s counsel, preparation of any deeds
and any bill of sale, deliver and pay the basic costs for a title
insurance policy in an amount equal to the Purchase Price, transfer
taxes for the conveyance, and one half of the escrow or closing
fees. Buyer will pay the cost of Buyer’s counsel, all loan
costs required by Buyer’s lender, including title policy cost
in excess of owner’s policy, Buyer’s portion of the
cost of the owner’s policy of title insurance, one half of
any escrow or closing fee, and recording fees for any deeds and
mortgage, and any applicable mortgage tax.

 

E. Tax
Prorations. All taxes and assessments (including pending
assessments if the related improvement is substantially completed
as of the Closing Date), whether payable in installments or not,
for the year of closing will be prorated to the Closing Date based
on the latest available tax rate and assessment valuation (with the
parties signing a proration agreement as to adjustments when actual
taxes are known).

 

 

 

2

 

 

 

 

 

8. Obligations
of Seller & Conditions Precedent to Closing. Seller shall complete and deliver the Property
in compliance with all terms and requirements stated herein, if not
already done so. Buyer’s obligation to close on the Property
or any lots within same is subject to and conditioned upon the
compliance and satisfaction, as of the Closing Date, of each of the
requirements described herein and below. Unless specifically stated
otherwise, the satisfaction of these conditions shall be at
Seller’s expense. Buyer shall cooperate with Seller to
satisfy these conditions as needed.

 

A. Correctness of Representations
and Warranties. Seller
represents and warrants that (i) to its knowledge it holds good and marketable
title in fee simple to the Property, (ii) all closing documents signed by Seller will be
valid, authorized and binding upon Seller, (iii) to its knowledge no outstanding contracts,
fees, debts or liens exist on the Property (except mortgage liens
to be satisfied at closing and other items related to the
development of the Property); and (iv) to Seller’s knowledge
there are no leases or third-party rights/interests on the Property
and Seller is in sole possession. These representations and warranties of Seller
shall be evaluated by Buyer
during its title review and the Inspection Period and shall not
create any obligations of Seller or rights of Buyer, outside of
those specified in Paragraphs 4 and 5 of this
Agreement.

 

B. Final
Plat Recording & 911 Addresses. Finalization and recording of the proposed plat
and Seller’s delivering a copy thereof to Buyer on or before
the Closing Date. The plat shall be deemed finalized after all
required governmental approvals have been obtained, said plat has
been duly recorded in the real property records of the applicable
County Clerk’s office, corresponding 911 addresses have been
provided by the Seller to the Buyer.

 

C. Covenants,
Conditions, and Restrictions
(“CC&Rs”).
Seller shall draft CC&Rs for Buyer’s review prior to the
expiration of the Inspection Period, and Buyer shall approve the
CC&Rs so long as they are reasonable. If buyer does not believe
that the CC&Rs are reasonable, it shall give Seller written
notice specifying its objections and Seller and Buyer shall attempt
to negotiate a final set of CC&Rs prior to the expiration of
the Inspection Period. If Seller or its affiliate is the declarant
and/or governing architectural review authority under the
CC&Rs, then upon Buyer’s submittal from time to time,
Seller shall approve Buyer’s submittals so long as they are
in accordance with the CC&Rs.

 

D. Completion/Compliance.
The Property and lots therein have
been completed in full compliance with all terms hereof. All
requirements by applicable local, state and federal governmental
authorities will have been met or exceeded for the Property and
each lot therein, including but not limited to, preliminary and
final plat approval, proper construction and availability of fully
operational utilities including roads, water, sanitary sewer,
storm, sewer with all necessary permits and fully compliant (no
violations) with all applicable rules, regulations, and ordinances
of applicable authorities, and a written statement from the
engineer of record that building permits are obtainable from the
appropriate governmental agencies for the construction of
single-family houses on the lots. A preliminary and final plat of
the development, approved construction drawings from the municipal
authority and an “AS BUILT” survey will be provided in
“PDF” and “CAD” format to the Buyer as they
become available. Each lot pin shall have a flagged wooden lathe to
mark the pin location. Provided
that Buyer provides Seller adequate and appropriate utility
easements over and under the Property, as reasonably determined by
Seller, Seller will cause permanent underground electric power and
telecommunication facilities (collectively, the
“Permanent
Utilities”) to be
installed and available to the perimeter of each lot within the
Property within ninety (90) days after Buyer has poured the slab
for a residence on a lot and has given Seller written notice that
Buyer is ready for the Permanent Utilities for the
lot. This post-closing
obligation of Seller to provide Permanent Utilities shall expressly
survive Closing for twenty-four (24) months.

 

E. Permits and Environmental
Concerns. Seller will obtain
and complete all requirements related to Storm Water Pollution
Prevention Plans (“SWPPP”) as required by applicable local, state
and federal authorities and maintain the same during the
development of the lots within the Property. Upon Closing, Seller
will deliver to Buyer satisfactory approval from the appropriate
authority/agency regarding storm water quality that all BMP’s
are installed and maintained per the SWPPP. Upon Closing, Seller
shall transfer (to the extent transferrable) the stormwater permit
to Buyer and Buyer shall assume all responsibility for future
maintenance and installation and Seller shall be released from
liability thereon. Seller shall have caused all FEMA requirements
to have been met for a home on any lot to be exempted from
purchasing flood insurance and no portion of any house pad site (it
being understood that some portions of some lots are within a flood
plain) is to be located in a FEMA defined flood plain.
Seller’s principals have no
actual knowledge that the Property has been or is presently used
for handling, storage, manufacturing, refining, transportation or
disposal of “toxic material”, “hazardous
substances”, or “hazardous waste”.
If “hazardous wastes”,
“hazardous substances”, or “hazardous
material” is located on the Property, as determined by a
Phase I or permitted Phase II environmental assessment obtained by
the Buyer, then Buyer shall have the right to terminate this
Agreement during the Inspection Period pursuant to Paragraph 4
above.

 

F. Trash, Trees, Brush &
Debris. The Property is being
sold “as-is” and Buyer shall be responsible for mowing,
brush hogging, and removing, clearing, and disposing of all trees,
trash and debris on the Property, except that Seller will remove
any construction debris of which Buyer notifies Seller in writing
prior to the expiration of the Inspection
Period.

 

9.  Offsite Water
Flow. Seller will deliver the Property at Closing
with proper offsite
water flow on and to the Property and which will
be managed through the
appropriate infrastructure.

 

 

3

 

 

10. Subsurface
Rock. Prior to expiration of
the Inspection Period, Buyer may terminate this Agreement pursuant
to Paragraph
4 above and recover the earnest money
upon the discovery of subsurface rock underlying the Property in
any quantity deemed excessive by the Buyer, unless Seller has
remedied the same to Buyer’s
satisfaction.

 

11. Assessments. 
So long as Developer is in control
under the CC&Rs, Buyer shall be exempt from paying any and all
applicable assessments (but will have to pay TAP fees and the
amenity assessment) in the CC&Rs to the Developer during the
Seller’s period of ownership, including, but not limited to
regular and special assessments. Seller also agrees to exempt bona fide home
builders from assessments in the CC&Rs, during the same time
period.

 

12. Notice.
All notices will be in writing and served by electronic
transmission to the addresses shown below, until notification of a
change of such addresses. All such notices shall be deemed
delivered on the date initiated.

 

	

For
Buyer:

	

For
Seller:

	

 

	

 

	

David
C. Frye, Manager

	

Charley
MacKenzie

	

David.frye@rauschcoleman.com

	

charley@sed.com.sg

	

479.455.9090

	
 

	
 

	

Daryl
Robinson

	

Dana
Danvers, Director of Acquisitions

	

drobinson@newquestcrosswell.com

	

Dana.danvers@rauschcoleman.com

	
 

	
 

	

Moe
Chan

	

John
Maberry

	

moe@sed.com.sg

	

John.maberry@rauschcoleman.com

	
 

	
 

	

Shamar
O’Bryant

	

Josh
Carson

	

shamar@sed.com.sg

	

Josh.carson@rauschcoleman.com

	
 

	
 

	

Frank
Heuszel

	

Julie
Bias, Financial Coordinator

	

fheuszel@yahoo.com

	

Julie.bias@rauschcoleman.com

	
 

	
 

	

Randy
Farber

	
 

	

rfarber@jw.com

 

13. Disclosure
by Buyer and Seller. One or
more individuals representing the Buyer or Seller may hold real
estate licenses from multiple states.

 

 

4

 

 

14. Default.
If Seller has performed all of Seller’s obligations and
fulfilled the conditions under this Agreement and, if within five
(5) days after the date specified for Closing, the Buyer fails to
make payment as required herein, through no fault of Seller, then
Seller may, as its sole and exclusive remedy, cancel and terminate
this Agreement and keep the earnest money deposit paid by the Buyer
as liquidated damages. If Seller breaches this Agreement or fails
to perform any of Seller’s obligations hereunder, then Buyer
may as its sole remedy, (i) terminate this Agreement and receive a
refund of all of the earnest money, or (ii) seek specific
performance of this Agreement pursuant to the remainder of
this Paragraph
14.

 

a.

Buyer may enforce specific performance of
Seller’s obligation to execute the documents required to
convey the Property to Buyer but waiving any uncured title or
survey objections or matters and without any offset against,
deduction from, or reduction in the Purchase Price
(except for the costs Buyer will incur
to complete the Property in accordance with the terms
hereof), and Seller’s
warranty of title in the special warranty deed and the owner policy
of title insurance to be delivered under this Agreement shall be
subject to the permitted title exceptions and all uncured title or
survey objections or matters, and Buyer expressly waives its rights
to seek damages if it files a lawsuit for specific
performance.

 

b.

Buyer shall be deemed to have elected to terminate
this Agreement under clause (i) above if Buyer fails to file suit
for specific performance in accordance with Sub-Paragraph a
above (against
Seller in a court having jurisdiction in the county and state in
which the Property is located, on or before 60 days after the date
upon which closing was to have occurred.

 

15. Binding
Effect/Assignment. This
Agreement will inure to the benefit of and bind the respective
successors of the parties. Seller may not assign this Agreement or
any obligations hereunder. Buyer may assign this Agreement and any
and all rights and obligations hereunder at any time prior to
closing to any person or entity controlling, controlled by, or
under common control with Buyer. For purposes of this Paragraph a
person or entity shall control an entity, if it, directly or
indirectly, holds a majority interest in the entity to be
controlled.

 

 

 

5

 

 

16. No
Waiver. Failure of either party
to exercise any rights under this Agreement shall not constitute a
waiver of any right, nor excuse the other party’s full
performance. No express waiver of any matter shall affect any other
matter under this Agreement. Express waivers are only effective if
in writing.

 

17. Brokerage.
Buyer represents that it has not contracted with any real estate
broker in connection with the transaction contemplated by this
Agreement. Seller shall be responsible for paying a 4%
Broker’s commission based on the Purchase Price to Dave
Ramsey with Home Asset, Inc. Each party shall indemnify and hold
the other party harmless from all claims, losses, liabilities,
costs, fees, and expenses (including, but not limited to, court
costs, litigation expenses, and attorneys’ fees) related to
or incurred in connection with any claims for brokerage commissions
arising by, through, or under the indemnifying
party.

 

18. Entire
Agreement. This document
constitutes the entire agreement between the parties, incorporating
all prior agreements, and may only be amended in writing executed
by both parties. The exhibits attached to this Agreement are
incorporated into this Agreement for all
purposes.

 

19. Attorney’s
Fees. If either party prevails
against the other in a legal action concerning any part of this
Agreement, the successful party shall be entitled to its reasonable
attorney’s fees and costs connected with such action, through
appellate and bankruptcy proceedings, in addition to all other
recovery or relief. Costs shall include all deposition costs and
expert fees, even if not used at trial.

 

20. Governing
Law. This Agreement shall be
governed and enforced in accordance with the law of the state where
the Property is located.

 

21. Time.
Buyer and Seller understand that “Time is of the
Essence” for this Agreement.

 

22. ADA
Compliant Ramps. Seller shall
be responsible for installation of any and all required ADA
sidewalk ramps for sidewalks installed by Seller. Said ramps shall
meet all the ADA Guidelines, Code and Specifications for such
ramps.

 

23. Special
Stipulations.

 

a.

Within 30 days after Closing, Seller shall
commence construction of the Black Oak Community Entry on Black Oak
Drive, including the landscaping and amenities in
Paragraph
1. This provision shall
expressly survive Closing and remain a continuing obligation of
Seller until complete.

 

b.

During
the Inspection Period, Buyer shall propose its signage to Seller
for approval, as to type, size, appearance, and placement. Seller
shall not unreasonably withhold its approval of the signage, so
long as the signage meets all applicable governmental requirements
and is limited so as not to clutter the Property. After approval by
Seller, Buyer may place the signage in the agreed locations prior
to closing.

 

c.

Seller’s obligations under this
Paragraph
23 and any liabilities
therefore shall survive Closing.

 

d.

The
terms of this Agreement shall be kept confidential by both parties
except as otherwise required by legal process, and except that the
terms may be disclosed to the parties’ respective counselors,
attorneys, accountants, brokers, and other persons with a need to
know.

 

24. AS-IS. Subject to
the representations and covenants, stated herein to expressly
survive Closing, the parties
intend that the sale of the Property will be made on an “As
Is, Where Is” basis with all faults, in accordance with the
terms and provisions of Exhibit C.

 

25. Statutory
Notices. To the extent
applicable, Seller gives Buyer the
notices set forth in Exhibit
D.

 

 

 

6

 

 

 

	
SELLER:

	

 

	

BUYER:

	

 

	
       

	

 

	

 
 

	

 

	
150 CCM BLACK OAK LP,

	

 

	

HOUSTON
LD, LLC

	

 

	
a Texas limited
partnership

	

 

	

 
 

	

 

	
 

	
 

	

 

	

 

	
 

	

 

	
By: 

	150 Black Oak GP,
Inc.,	

 

	

By:

	
/s/

	

 

	
 

	
a Texas
corporation

	

 

	

 

	David C.
Frye,	

 

	
Its:

	
General
Partner

	

 

	

 

	
Manager

	

 

	
 

	
 

	

 

	

 

	
 

	

 

	
By:

	
/s/
 

	

 

	

Date:

	
 

	

 

	
 

	
  Charley
MacKenzie,

	

 

	

 

	
 

	

 

	
 

	
  Chief Development
Officer

	

 

	

 

	
 

	

 

	
Date: 

	
 

	

 

	

 

	
 

	

 

 

 

7

 

 

 

  EXHIBIT
A

 

Description and Plat of Property

 

and List of Lots

 

 

 

 

 

 A-1

 

 

 

 
A-2

 

                     

 

 EXHIBIT
B

 

Proposed Amenity Package

 

 

 

B-1

 

                      

 

EXHIBIT
C

 

As-Is, Where-Is

 

1.

BUYER
ACKNOWLEDGES AND AGREES THAT SELLER AND ITS AGENTS HAVE NOT MADE,
DO NOT MAKE, WILL NOT MAKE AND SPECIFICALLY NEGATE AND DISCLAIM ANY
REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR
GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS,
IMPLIED, OR STATUTORY, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE,
OF, AS TO, CONCERNING OR WITH RESPECT TO: (A) THE NATURE, QUALITY,
OR CONDITION OF THE PROPERTY OR ANY PART THEREOF, INCLUDING,
WITHOUT LIMITATION, THE WATER, SOIL, AND GEOLOGY; (B) THE ECONOMIC
FEASIBILITY OF THE PROPERTY OR THE INCOME TO BE DERIVED FROM THE
PROPERTY; (C) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL
ACTIVITIES AND USES WHICH BUYER MAY CONDUCT THEREON; (D) EXCEPT FOR
ANY WARRANTIES OF TITLE CONTAINED IN THE SPECIAL WARRANTY DEED TO
BE DELIVERED BY SELLER AT THE CLOSING, THE NATURE AND EXTENT OF ANY
RIGHT-OF-WAY; (E) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS
OPERATION WITH ANY LAWS, RULES, ORDINANCES, OR REGULATIONS OF ANY
APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, INCLUDING, WITHOUT
LIMITATION, THE STATUS OF ANY PERMITS AND GOVERNMENTAL APPROVAL;
(F) THE RENTABILITY, HABITABILITY, MARKETABILITY, MERCHANTABILITY,
OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY; (G) THE
PRESENCE OF ANY ENDANGERED OR THREATENED SPECIES ON THE PROPERTY,
AS WELL AS THE SUITABILITY OF THE PROPERTY AS HABITAT FOR ANY OF
THOSE SPECIES; OR (H) ANY OTHER MATTER WITH RESPECT TO THE
PROPERTY. WITHOUT LIMITING THE FOREGOING, SELLER AND ITS AGENTS
HAVE NOT MADE, DO NOT MAKE, WILL NOT MAKE AND SPECIFICALLY NEGATE
AND DISCLAIM ANY REPRESENTATION OR WARRANTY REGARDING THE PRESENCE
OR ABSENCE OF ANY HAZARDOUS MATERIALS (AS HEREINAFTER DEFINED) ON,
UNDER, OR ABOUT THE PROPERTY OR THE COMPLIANCE OF THE PROPERTY WITH
ANY OF THE ENVIRONMENTAL LAWS (AS HEREINAFTER DEFINED). THE TERM
“HAZARDOUS MATERIALS” MEANS ANY SUBSTANCE, COMPOUND,
MATERIAL OR WASTE, WHETHER SOLID, LIQUID OR GASEOUS: (1) THE
PRESENCE OF WHICH REQUIRES INVESTIGATION, MONITORING OR REMEDIATION
UNDER ANY ENVIRONMENTAL LAW (DEFINED BELOW); (2) WHICH IS OR
BECOMES DEFINED AS A “HAZARDOUS SUBSTANCE”,
“HAZARDOUS MATERIAL”, “HAZARDOUS WASTE”,
“EXTREMELY HAZARDOUS WASTE”, “SOLID WASTE”,
“TOXIC SUBSTANCE”, “CHEMICAL SUBSTANCE”,
“REGULATED SUBSTANCE”, “POLLUTANT”, OR
“CONTAMINANT”, OR IS OTHERWISE CLASSIFIED AS HAZARDOUS
OR TOXIC, IN OR PURSUANT TO ANY ENVIRONMENTAL LAW; (3) WHICH IS
EXPLOSIVE, CORROSIVE, FLAMMABLE, RADIOACTIVE, OR OTHERWISE
HAZARDOUS AND IS OR BECOMES REGULATED BY ANY GOVERNMENTAL
AUTHORITY, AGENCY, DEPARTMENT, COMMISSION, BOARD, AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES, THE STATE OF TEXAS OR ANY
POLITICAL SUBDIVISION THEREOF; (4) THE PRESENCE OF WHICH ON THE
PROPERTY CAUSES OR THREATENS TO CAUSE A NUISANCE UPON THE PROPERTY
OR TO ADJACENT PROPERTIES OR POSES OR THREATENS TO POSE A HAZARD TO
THE HEALTH OR SAFETY OF PERSONS ON OR ABOUT THE PROPERTY; (5) THAT
CONTAINS PETROLEUM HYDROCARBONS, ASBESTOS, RADON, POLYCHLORINATED
BIPHENYLS, UREA FORMALDEHYDE FOAM INSULATION, LEAD, OR MOTOR FUEL
OR OTHER VOLATILE ORGANIC COMPOUNDS; (6) WHICH CAUSES OR POSES A
THREAT TO CAUSE A HAZARD TO THE ENVIRONMENT OR TO THE HEALTH,
SAFETY OR WELFARE OF PERSONS ON OR ABOUT THE PROPERTY, OR (7) WHICH
IS A SHARP (E.G. NEEDLE) OR AN INFECTIOUS, MEDICAL OR RADIOACTIVE
WASTE. THE TERM “ENVIRONMENTAL LAWS” MEANS ANY FEDERAL,
STATE OR LOCAL LAW, STATUTE, GUIDANCE OR POLICY STATEMENT,
ORDINANCE, CODE, RULE, REGULATION, LICENSE, AUTHORIZATION,
DECISION, ORDER, INJUNCTION OR DECREE, WHICH PERTAINS TO HEALTH,
SAFETY OR THE ENVIRONMENT (INCLUDING, BUT NOT LIMITED TO, GROUND,
AIR, WATER OR NOISE POLLUTION OR CONTAMINATION, AND UNDERGROUND OR
ABOVEGROUND TANKS) AND SHALL INCLUDE WITHOUT LIMITATION, THE CLEAN
WATER ACT, 33 U.S.C. § 1251 ET SEQ.; THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT, 42 U.S.C.
§ 9601 ET SEQ.; THE RESOURCE CONSERVATION AND RECOVERY ACT, 42
U.S.C. § 6901 ET SEQ.; THE TOXIC SUBSTANCE CONTROL ACT, 15
U.S.C. §§ 2601 ET SEQ; THE OCCUPATIONAL HEALTH AND SAFETY
ACT; THE TEXAS WATER CODE; AND THE TEXAS SOLID WASTE DISPOSAL ACT,
TEXAS HEALTH AND SAFETY CODE CHAPTER 361, ALL AS
AMENDED.

 

 

 

C-1

 

 

 

2.

BUYER
AGREES THAT IT HAS EXAMINED AND INVESTIGATED THE PROPERTY PRIOR TO
EXECUTION HEREOF OR THAT IT WILL INVESTIGATE THE PROPERTY PRIOR TO
THE EXPIRATION OF THE INSPECTION PERIOD AND THAT IN PURCHASING THE
PROPERTY BUYER WILL RELY SOLELY UPON ITS INDEPENDENT EXAMINATION,
STUDY, INSPECTION AND KNOWLEDGE OF THE PROPERTY, AND BUYER IS
RELYING SOLELY UPON ITS OWN EXAMINATION, STUDY, INSPECTION, AND
KNOWLEDGE OF THE PROPERTY AND BUYER’S DETERMINATION OF THE
VALUE OF THE PROPERTY AND USES TO WHICH THE PROPERTY MAY BE PUT,
AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY
SELLER.

 

3.

BUYER
AGREES TO PAY FOR AND HAS MADE OR CAUSED TO BE MADE (OR WILL MAKE
OR CAUSE TO BE MADE) ALL INSPECTIONS, INVESTIGATIONS AND ANALYSES
NECESSARY OR APPROPRIATE FOR THE PURPOSE OF DETERMINING COMPLIANCE
OR NON-COMPLIANCE BY THE PROPERTY WITH ALL BUILDING, HEALTH,
ENVIRONMENTAL, ZONING AND LAND USE LAWS, ORDINANCES, RULES AND
REGULATIONS, AND SELLER MAKES NO REPRESENTATION OR WARRANTY,
EXPRESS OR IMPLIED, CONCERNING THE PROPERTY’S COMPLIANCE WITH
SUCH BUILDING, HEALTH, ENVIRONMENTAL, ZONING AND LAND USE LAWS,
ORDINANCES, RULES AND REGULATIONS.

 

4.

BUYER
FURTHER ACKNOWLEDGES THAT THE INFORMATION, IF ANY, PROVIDED AND TO
BE PROVIDED WITH RESPECT TO THE PROPERTY WAS OBTAINED FROM A
VARIETY OF SOURCES AND SELLER (A) HAS NOT MADE AND WILL NOT BE
OBLIGATED TO MAKE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF
SUCH INFORMATION AND (B) DOES NOT MAKE ANY REPRESENTATIONS AS TO
THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. BUYER
ACKNOWLEDGES AND AGREES THAT ALL MATERIALS, DATA AND INFORMATION
DELIVERED AT ANY TIME BY SELLER TO BUYER IN CONNECTION WITH THE
TRANSACTION CONTEMPLATED HEREBY ARE PROVIDED TO BUYER AS A
CONVENIENCE ONLY AND THAT ANY RELIANCE ON OR USE OF SUCH MATERIALS,
DATA OR INFORMATION BY BUYER SHALL BE AT THE SOLE RISK OF BUYER.
BUYER ACKNOWLEDGES AND AGREES THAT IT WILL CONDUCT ITS OWN
VERIFICATION OF THE INFORMATION, EITHER INDEPENDENTLY OR THROUGH
AGENTS OF BUYER’S CHOOSING. NEITHER SELLER, NOR ITS AGENTS,
NOR THE PERSON OR ENTITY WHICH PREPARED ANY REPORT OR REPORTS
DELIVERED BY SELLER TO BUYER SHALL HAVE ANY LIABILITY TO BUYER FOR
ANY INACCURACY IN OR OMISSION FROM ANY SUCH REPORTS.

 

5.

BUYER
RELEASES, ACQUITS AND FOREVER DISCHARGES SELLER FROM, AND WAIVES,
ANY AND ALL LIABILITIES, CLAIMS, CAUSES OF ACTION, DAMAGES, AND
OTHER RELIEF, WHETHER AT LAW OR IN EQUITY AND WHETHER IN CONTRACT,
TORT, STRICT LIABILITY OR OTHERWISE, AND WHETHER PAST, PRESENT, OR
FUTURE, IN CONNECTION WITH, AS A RESULT OF OR OTHERWISE WITH REGARD
TO THE CONDITION OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO ITS
ENVIRONMENTAL CONDITION. THIS GENERAL RELEASE SHALL BE APPLICABLE,
WITHOUT LIMITATION, TO ANY AND ALL LIABILITIES, CLAIMS, CAUSES OF
ACTION, DAMAGES AND OTHER RELIEF UNDER ANY OF THE ENVIRONMENTAL
LAWS.

 

6.

THE
OCCURRENCE OF A CLOSING SHALL CONSTITUTE AN ACKNOWLEDGMENT BY BUYER
THAT THE PROPERTY WAS ACCEPTED WITHOUT REPRESENTATION OR WARRANTY,
EXPRESS OR IMPLIED (EXCEPT FOR THE SPECIAL WARRANTIES OF TITLE SET
FORTH IN THE SPECIAL WARRANTY DEED), AND OTHERWISE IN AN “AS
IS”, “WHERE IS”, AND “WITH ALL
FAULTS” CONDITION. THE PROVISIONS OF THIS EXHIBIT SHALL
SURVIVE CLOSING.

 

 

 

C-2

 

                      

 

 EXHIBIT
D

 

Statutory Notices

 

1.

Abstract or Title
Policy. Buyer should have an abstract covering the Property
examined by an attorney of Buyer’s selection, or Buyer should be
furnished with or obtain a title policy.

 

2.

Notice Regarding
Possible Liability for Additional Taxes (§5.010 Texas Property
Code). If the Property is vacant land, then pursuant to
Section 5.010 of the Texas Property Code Seller notifies Buyer:
“If for the current ad valorem tax year the taxable value of
the land that is the subject of this Agreement is determined by a
special appraisal method that allows for appraisal of the land at
less than its market value, the person to whom the land is
transferred may not be allowed to qualify the land for that special
appraisal in a subsequent tax year and the land may then be
appraised at its full market value. In addition, the transfer of
the land or a subsequent change in the use of the land may result
in the imposition of an additional tax plus interest as a penalty
for the transfer or the change in the use of the land. The taxable
value of the land and the applicable method of appraisal for the
current tax year is public information and may be obtained from the
tax appraisal district established for the county in which the land
is located.”

 

3.

Notice Regarding
Possible Annexation (§5.011 Texas Property Code). If
the Property is located outside the limits of a municipality, the
Property may now or later be included in the extra-territorial
jurisdiction (“ETJ”) of a
municipality and may now or later be subject to annexation by the
municipality. Each municipality maintains a map that depicts its
boundaries and ETJ. To determine if the Property is located within
a municipality’s ETJ or is likely to be located within a
municipality’s ETJ, Buyer should contact all municipalities
located in the general proximity of the Property for further
information.

 

4.

Notice of Water
Level Fluctuations (§5.019 Texas Property Code). If the
Property adjoins an impoundment of water, including a reservoir or
lake, constructed and maintained under Chapter 11 of the Texas
Water Code, that has a storage capacity of at least 5,000 acre-feet
at the impoundment’s normal operating level, then pursuant to
Section 5.019 of the Texas Property Code Seller notifies Buyer:
“The water level of the impoundment of water adjoining the
Property fluctuates for various reasons, including as a result of:
(1) an entity lawfully exercising its right to use the water stored
in the impoundment; or (2) drought or flood
conditions.”

 

5.

Notice of Private
Transfer Fee (§5.205 Texas Property Code). If the
Property is subject to a private transfer fee, then pursuant to
Section 5.205 of the Texas Property Code Seller notifies Buyer that
the private transfer fee obligation may be governed by Chapter 5,
Subchapter G of the Texas Property Code.

 

6.

Notice Required by
§13.257 of the Texas Water Code Regarding Certificated Water
or Sewer Service. Pursuant to Section 13.257 of the Texas
Water Code Seller notifies Buyer: “The real property,
described below, that you are about to purchase may be located in a
certificated water or sewer service area, which is authorized by
law to provide water or sewer service to the properties in the
certificated area. If your property is located in a certificated
area there may be special costs or charges that you will be
required to pay before you can receive water or sewer service.
There may be a period required to construct lines or other
facilities necessary to provide water or sewer service to your
property. You are advised to determine if the Property is in a
certificated area and contact the utility service provider to
determine the cost that you will be required to pay and the period,
if any, that is required to provide water or sewer service to your
property. The undersigned Buyer hereby acknowledges receipt of the
foregoing notice at or before the execution of a binding Agreement
for the purchase of the real property described in the notice or at
closing of purchase of the real property.” The real property
referred to in this notice is the Property defined in this
Agreement.

 

7.

Notice Regarding
Taxing Districts (§49.452 Texas Water Code). If the
Property is located in a district created under Title 4 of the
Texas Water Code (currently Chapters 49 through 68) or by a special
act of the legislature, that is providing or proposing to provide
water, sanitary sewer, drainage, or flood control or protection
facilities or services, or any of these facilities or services that
have been financed or are proposed to be financed with bonds of the
district payable in whole or part from taxes of the district, or by
imposition of a standby fee, if any, then pursuant to Section
49.452 of the Texas Water Code Seller gives Buyer the notice in the
attached Exhibit E,
which is incorporated into this Agreement for all
purposes.

 

8.

Notice of
Obligation to Pay Public Improvement District Assessment
(§5.014 Texas Property Code). If the Property is
located in a public improvement district established under
Subchapter A, Chapter 372, Local Government Code, or Chapter 382,
Local Government Code, and consists of not more than one dwelling
unit, then pursuant to Section 5.014 of the Texas Property Code
Seller notifies Buyer that as a Buyer of the Property you are
obligated to pay an assessment to a municipality or county for an
improvement project undertaken by a public improvement district
under Subchapter A, Chapter 372, Local Government Code, or Chapter
382, Local Government Code. The assessment may be due annually or
in periodic installments. More information concerning the amount of
the assessment and the due dates of that assessment may be obtained
from the municipality or county levying the assessment. The amount
of the assessments is subject to change. Your failure to pay the
assessments could result in a lien on and the foreclosure of your
property.

 

 

 

D-1

 

                      

 EXHIBIT
E

 

Notice of Utility or Other Statutorily Created
District

 

(§49.452 and § 54.812 Texas Water Code)

 

NOTICE TO BUYER OF REAL
ESTATE

SITUATED IN

HARRIS COUNTY IMPROVEMENT DISTRICT NO. 17

The
real property, described below, which you are about to purchase is
located Harris County Improvement District No. 17 (the
“District”). The
District has taxing authority separate from any other taxing
authority, and may, subject to voter approval, issue an unlimited
amount of bonds and levy an unlimited rate of tax in payment of
such bonds. As of this date, the rate of taxes levied by the
District on real property located in the District is $1.25 on each
$100 of assessed valuation. The total amount of bonds, excluding
refunding bonds and any bonds or any portion of bonds issued that
are payable solely from revenues received or expected to be
received under a contract with a governmental entity, approved by
the voters and that has been or may be issued, at this date, is
$200,000,000 for water, sewage and drainage purposes, $670,000,000
for roads, and $80,000,000 for parks and recreational facilities,
and the aggregate initial principal amount of all bonds issued for
one or more of the specified facilities of the District and payable
in whole or in part from property taxes is $-0-.

 

The
District also has the authority to adopt and impose a standby fee
on property in the District that has water, sanitary sewer, or
drainage facilities and services available but not connected and
which does not have a house, building or other improvement located
thereon and does not substantially utilize the utility capacity
available to the property. The District may exercise the authority
without holding an election on the matter. As of this date, the
most recent amount of the standby fee is $-0-. An unpaid standby
fee is a personal obligation of the person that owned the property
at the time of imposition and is secured by a lien on the property.
Any person may request a certificate from the District stating the
amount, if any, of unpaid standby fees on a tract of property in
the District.

 

The
District has the authority to levy an assessment on property within
the District. The District may exercise this authority without
holding an election the matter. As of this date, the amount of the
assessment is $-0- per $100 valuation for real property and
improvements thereon. The District is located in whole or in part
within the extra-territorial jurisdiction of the Cities of Houston
and Tomball. By law, a district
located in the extraterritorial jurisdiction of a municipality may
be annexed without the consent of a district or the voters in the
District. When a district is annexed, it is
dissolved.

 

The
purpose of this District is to provide water, sewer, drainage or
flood control facilities, roads, services, and park and recreation
facilities within the District through the issuance of bonds
payable in whole or in part from property taxes. The cost of these
utility facilities is not included in the purchase price of your
property, and these utility facilities are owned or to be owned by
the District.

 

See the
legal description of the Property in the contract to which this
notice is attached.

Buyer is advised that the
information shown on this form is subject to change by the district
at any time. The district routinely establishes tax rates during
the months of September through December of each year, effective
for the year in which the tax rates are approved by the district.
Buyer is advised to contact the
district to determine the status of any current or proposed changes
to the information shown on this form.

 

The
Buyer hereby acknowledges
receipt of the foregoing notice at or prior to execution of a
binding contract for the purchase of the real property described in
such notice or at closing of purchase of the real
property.

 

Date                                                                            

Signature
of Seller

 

The
undersigned Buyer hereby
acknowledges receipt of the foregoing at or prior to execution of a
binding contract for the purchase of the real property described in
such notice or at closing of purchase of the real
property.

 

Date                                                                            

Signature of Buyer

 

 

E-1

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