Document:

EXHIBIT 10.1

 

STOCK PURCHASE AGREEMENT

 

This Stock Purchase Agreement (this "Agreement") is made and entered into as of ___________________, 2015, by and between Teg S. Sandhu, an individual (the "Seller"), and Eric Clemons, an individual (the "Purchaser"). Each Seller and Purchaser is referred to herein as a "Party" and together as the "Parties."

 

R E C I T A L S

 

A. Seller owns shares of common stock of Cerebain Biotech Corp., a Nevada corporation (formerly known as Discount Dental Materials, Inc.) (the "Company");

 

B. Purchaser desires to purchase Three Hundred Eighty Thousand Six Hundred Twenty Five (380,625) shares of common stock of the Company (the "Shares") from Seller, and Seller desires to sell the Shares to Purchaser, pursuant to the terms and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in reliance on the foregoing recitals and in consideration of and for the mutual covenants contained herein, the parties hereto agree as follows:

 

A G R E E M E N T

 

1. Sale of the Shares. Seller will sell and transfer to the Purchaser, and Purchaser will purchase from Seller, the Shares, free and clear of all security interests, liens, encumbrances, claims, charges, assessments and restrictions other than as set forth in this Agreement and restrictions on transfer under federal and state securities laws. The purchase price for the Shares shall be $0.01 per share (the "Purchase Price").

 

2. Closing.

 

2.1 The closing of the transactions contemplated hereby (the "Closing") shall take place on the Closing Date, which shall be within two (2) business days from the date of this Agreement. . 

 

2.2 At Closing, Seller and the Purchaser shall deliver the following:

 

	
 
	
 
	
 
	(a) 	Seller shall deliver a certificate representing the Shares and a stock power or documentation sufficient to transfer the Shares to the Purchaser (or will deliver a stock certificate in Purchaser's name representing the Shares);
	
 
	
 
	
 
		
	
 
	
 
	
 
	(b) 	Purchaser shall deliver the Purchase Price.

 

2.3 Upon receipt by Purchaser of the Shares and stock power from the Seller (or a stock certificate in Purchaser's name representing the Shares), and by the Seller the Purchase Price from the Purchaser, the transaction shall be deemed closed.

 

	 
	1

	

	 

 

3. Seller's Representations, Warranties and Covenants. 

 

3.1 Seller has and will transfer to Purchaser good, valid and marketable title to the Shares, and, except with respect to the restrictions on transfer under federal and state securities laws and those specified in this Agreement, there are no security interests, liens, encumbrances, claims, charges, assessments or restrictions or any other defects in title of any nature whatsoever on the Shares.

 

3.2 Seller has the right, power, legal capacity and authority to enter into and perform Seller's obligations under this Agreement.

 

3.3 Except as set forth herein, Seller makes no representations or warranties with respect to the Shares and Purchaser is purchasing the Shares "as is".

 

3.4 Seller will not assign, sell, mortgage, lease, transfer, pledge, grant a security interest in or lien upon, encumber, or otherwise dispose if or abandon, nor will the Seller suffer or permit any of the same to occur with respect to, any part or all of the Shares, without the prior written consent of Purchaser.

 

3.5 The Shares contain a restrictive legend in accordance with Rule 144.

 

4. Purchaser's Representations and Warranties. 

 

4.1 Purchaser has the right, power, legal capacity and authority to enter into and perform Purchaser's obligations under this Agreement.

 

4.2 Purchaser has received, read carefully and is familiar with this Agreement. With respect to the Company, Purchaser is familiar with the Company's business, plans and financial condition, and any other matters relating to the Company; Purchaser has received all materials that have been requested by them; Purchaser has had a reasonable opportunity to ask questions of the Company and its representatives; and the Company or its representatives have answered all inquiries that the Purchaser or their representatives have put to it. Purchaser has had access to all additional non-confidential information necessary, in Purchaser's judgment, to evaluate the merits and risks of an investment in the Company. Purchaser acknowledges that Seller has made no representations or warranties of any kind to the Purchaser regarding the Company, its business, finances or prospects.

 

4.3 Purchaser has such knowledge and experience in finance, securities, investments and other business matters so as to be able to protect the interests of the Purchaser in connection with this transaction, and Purchaser's investment in the Company hereunder is not material when compared to Purchaser's total financial capacity.

 

4.4 Purchaser understands the various risks of an investment in the Company and can afford to bear such risks, including, without limitation, the risks of losing the entire investment.

 

	 
	2

	

	 

 

4.5 Purchaser acknowledges that a very limited market for the Shares currently exists, and that Purchaser may find it impossible to liquidate the investment at a time when it may be desirable to do so, or at any other time.

 

4.6 Purchaser will acquire the Shares for his own account for investment and not with a view to the sale or distribution thereof or the granting of any participation therein, and has no present intention of distributing or selling to others any of such interest or granting any participation therein.

 

4.7 Purchaser has been advised by Seller that the Shares have not been registered under the Securities Act or applicable state securities law and that the Shares will be sold in a transaction exempt therefrom. Purchaser acknowledges that they are familiar with the nature of the limitations imposed by the Securities Act and the rules and regulations thereunder on the transfer of the Shares. In particular, Purchaser agrees that the Company shall not be required to give any effect to a sale, assignment or transfer of the Shares unless (i) the sale, assignment or transfer of the Shares is registered under the Securities Act, and applicable state securities laws, it being understood that the Shares is not currently registered for sale and that the Company has no obligation or intention to so register the Shares, or (ii) such sale, assignment or transfer is otherwise exempt from registration under the Securities Act and applicable state securities laws. The Purchaser further understands that an opinion of counsel and other documents may be required to transfer or sell the Shares.

 

4.8 Purchaser further acknowledges that the Shares are restricted securities under Rule 144 of the Act, and, therefore, when transferred by Seller to Purchaser the Shares will contain a restrictive legend substantially similar to the following:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

Without in any way limiting the representations set forth above, Purchaser further agrees not to make any disposition of all or any portion of the Shares unless and until:

 

(i) There is then in effect a Registration Statement under the Act covering such proposed disposition and such disposition is made in accordance with such Registration Statement; or

 

(ii) Purchaser shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, Purchaser shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration under the Act or any applicable state securities laws. 

 

	 
	3

	

	 

 

Notwithstanding the provisions of subparagraphs (i) and (ii) above, no such registration statement or opinion of counsel shall be necessary for a transfer by Purchaser to a partner (or retired partner) of Purchaser, or transfers by gift, will or intestate succession to any spouse or lineal descendants or ancestors if all transferees agree in writing to be subject to the terms hereof to the same extent as if they were the Purchaser hereunder.

 

4.9 The Purchaser acknowledges that there are currently 4,447,448 shares of common stock of the Company issued and outstanding, and that the Purchaser's purchase of the Shares does not constitute a controlling interest in the Company or entitle Purchaser to elect any directors or exercise any other corporate governance normally reserved for controlling shareholders.

 

5. Binding upon Successors and Assigns. Subject to, and unless otherwise provided in, this Agreement, each and all of the covenants, terms, provisions, and agreements contained herein shall be binding upon, and inure to the benefit of, the successors, executors, heirs, representatives, administrators and assigns of the parties hereto.

 

6. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements or understandings, inducements or conditions, express or implied, written or oral, between the parties with respect hereto and thereto.

 

7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original as against any party whose signature appears thereon and all of which together shall constitute one and the same instrument.

 

8. Amendment and Waivers. Any term or provision of this Agreement may be amended, and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a writing signed by the party to be bound thereby. The waiver by a party of any breach hereof for default in payment of any amount due hereunder or default in the performance hereof shall not be deemed to constitute a waiver of any other default or any succeeding breach or default.

 

9. Attorneys' Fees. Should suit be brought to enforce or interpret any part of this Agreement, the prevailing party shall be entitled to recover, as an element of the costs of suit and not as damages, reasonable attorneys' fees to be fixed by the court (including without limitation, costs, expenses and fees on any appeal). The prevailing party shall be the party entitled to recover its costs of suit, regardless of whether such suit proceeds to final judgment. A party not entitled to recover its costs shall not be entitled to recover attorneys' fees. No sum for attorneys' fees shall be counted in calculating the amount of a judgment for purposes of determining if a party is entitled to recover costs or attorneys' fees.

  

10. Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its choice of law principles. Any action brought by any party hereto shall be brought within the State of California, County of Orange.

 

11. Reliance by the Company. The Parties hereto expressly authorize the Company and its counsel to rely upon the representations set forth herein in connection with the transfer of the Shares.

 

[remainder of page intentionally left blank; signature page to follow]

 

	 
	4

	

	 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and entered into as of the date first written above. 

 

	
"Seller"
	
 
	
"Purchaser"
	
 

		
 
		
 

	
Teg S. Sandhu
	
 
	
Eric Clemons 
	
 

	
an individual
	
 
	
an individual
	
 

		
 
		
 

	

	
 
	
 
	
 

	
Teg S. Sandhu
	
 
	
Eric Clemons
	
 

 

 

 

5haii_ex106.htm

Exhibit 10.6. Loan Conversion Agreement

 

 

LOAN CONVERSION AGREEMENT

This Loan Conversion Agreement (“Agreement”) is entered into by and between HotApp International, Inc., a Delaware company (hereinafter the “Company”) and Singapore eDevelopment Limited, a Singapore company (hereinafter “Creditor”), effective as of this the 13th day of July 2015 (the “Conversion Date”).

 

*WITNESSETH*

 

WHEREAS, on or about December 28, 2014, Creditor did loan to the Company the sum of $5,250,553.92 Singapore Dollars (or $3,888,435.10 USD as of exchange rate on July 10, 2015) (the “Indebtedness”) which amount is evidenced by a promissory note dated as of even date therewith (“Promissory Note”),

 

WHEREAS, the Company plans to uplist its common stock, currently approved to trade on the OTCQB market, and in addition, is desirous of raising capital to fund its operations (“Financing”), and the Company and Creditor, as the Company’s largest shareholder, acknowledge that the existence of the Indebtedness will be an impediment to the uplisting and/or fund raising process,

 

WHEREAS, as a result of the forgoing and certain other good and valuable consideration acknowledged by the parties, Creditor desire to convert the entire Indebtedness into common stock of the Company in full satisfaction of the Indebtedness.

 

***

NOW THEREFORE, the undersigned parties to this Agreement hereby mutually agree to all of the following:

 

SECTION I

 

CONVERSION OF INDEBTEDNESS;

 

ISSUANCE OF COMMON STOCK AND

 

CANCELATION OF PROMISSORY NOTE

 

1.01. Conversion of Indebtedness. In exchange for good, valuable and mutual considerations, the receipt and sufficiency of which is hereby acknowledged by the parties, Creditor, as of the Conversion Date, hereby converts the entire Indebtedness into 777,687 shares of common stock of the Company (“Common Stock”), at a conversion price of $5.00 per share (rounded to the nearest full share), in full satisfaction of the Indebtedness.

 

1.02. Cancelation of Promissory Note and Issuance of Common Stock.

 

(a). As of the Conversion Date, the Creditor hereby cancels and forfeits the Promissory Note and shall deliver the Promissory Note to the Company marked “cancelled” and “satisfied in full” as soon as practicable following the execution of this Agreement.

 

(b). Within ten (10) days from the date hereof, the Company will issue the Common Stock to the Creditor.

 

  

  

  

 

1.03. Complete Release by Creditor. As of the Conversion Date, Creditor irrevocably and unconditionally releases, acquits, and forever discharges the Company, its transferees, assigns, and any successors, from any and all known or unknown claims, charges, promises, actions, or similar rights that the Creditor presently may have (“Claims”) relating in any way to its rights to collect the Indebtedness. Creditor understands that the Claims that it is releasing might arise under many different laws (including statutes, regulations, other administrative guidance, and common law doctrines), and include without limitation claims such as breach of contract, implied contract, promissory estoppel, or claims under any federal, state or local statute, law, order or ordinance.

 

SECTION II

 

CREDITOR’S REPRESENTATIONS AND WARRANTIES

 

Creditor hereby represents and warrants to the Company as follows;

 

(a). Creditor is acquiring the Common Stock for investment purposes and not with a view to resell or otherwise transfer the Common Stock,

(b). Creditor is an “Accredited Investor” as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended,

(c). the Common Stock has not been registered under any state or federal regulation and is "restricted securities" and the certificate will contain the following restrictive legend:

The securities represented by this certificate have not been registered under the United States Securities Act of 1933, as amended (the "Act") or any state securities law. These shares have been acquired for investment and may not be offered for sale, hypothecated, sold or transferred, nor will any assignee or transferee thereof be recognized by the Company as having any interest in such shares, in the absence of (i) an effective registration statement with respect to the shares under the Act, and any other applicable state law, or (ii) an opinion of counsel satisfactory to the Company that such shares will be offered for sale, hypothecated, sold or transferred only in a transaction which is exempt under or is otherwise in compliance with the applicable securities laws.

(d). Creditor has evaluated the risks associated with the acquisition of the Common Stock and has determined that the acquisition of the Common Stock is a suitable investment and can bear the entire risk of loss, and

 

(e). Creditor understands and acknowledges that a public trading market for the Common Stock of the Company currently does not exist and may not be developed in the future, and as a result, the Common Stock may not be a liquid investment, and

 

  

  

  

 

SECTION III

 

MISCELLANEOUS

 

3.01. Binding Nature of Agreement. This Agreement shall be binding on and inure to the respective successors, transferees and assigns of the Company and the Creditor.

 

3.02. Law Governing. This Agreement shall be governed by and construed under the laws of the STATE OF DELAWARE, REGARDLESS OF LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

 

3.03. Entire Agreement. This Agreement represents the entire agreement between the parties and has been entered into by Creditor with a full understanding of its terms, with an opportunity to consult with counsel and without inducement or duress. This Agreement may not be changed orally, and any written change or amendment must be signed and accepted by the Company. If any provision in this Agreement is found to be unenforceable, all other provisions will remain fully enforceable. This Agreement may be executed in counterparts, each of which shall be considered an original, but all of which together shall constitute one and the same instrument.

***

WHEREFORE, the undersigned parties to this Loan Conversion Agreement have agreed to the foregoing as of the Conversion Date.

HotApp International, Inc.

_/s/ Lum Kan Fai______________

 

By: Lum Kan Fai

 

Its: Director

 

 

Singapore eDevelopment Limited

_/s/ Chan Heng Fai______________

 

By: Chan Heng Fai-Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}]]