Document:

Sunset Suits Holdings, Inc.: Exhibit 4.1 - Prepared by TNT Filings Inc.

  

Exhibit 4.1

 

SUNSET SUITS HOLDINGS, INC.

 

 

 

SHAREHOLDER RIGHTS PLAN

 

 

 

Dated as of June 9, 2008

 

 

 

 

 

 

TABLE OF CONTENTS

	 	 	Page
	 	 	 
	Section 1.	Certain Definitions	1
	Section 2.	Rights	4
	Section 3.	Exercise of Rights; Purchase Price; Expiration Date Of
    Rights	4
	Section 4.	Company Covenants Concerning Shares and Rights	5
	Section 5.	Record Date	6
	Section 6.	Adjustment of Purchase Price, Number and Type of Shares
    or Number of Rights	6
	Section 7.	Certificate of Adjusted Purchase Price or Number of
    Shares	11
	Section 8.	Consolidation, Merger or Sale or Transfer of Assets or
    Earning Power	12
	Section 9.	Fractional Rights and Fractional Shares	14
	Section 10.	Agreement of Rights Holders	14
	Section 11.	Redemption	15
	Section 12.	Notice of Certain Events	15
	Section 13.	Notices	16
	Section 14.	Supplements and Amendments	17
	Section 15.	Successors; Certain Covenants	17
	Section 16.	Severability	17
	Section 17.	Governing Law	17
	Section 18.	Descriptive Headings	17
	 	 	 

SHAREHOLDER RIGHTS PLAN

This Shareholder Rights Plan (the “Plan”) of Sunset Suits Holdings, Inc., a Nevada corporation (the “Company”), is made effective as of this 9th day of June, 2008.

RECITALS

On June 9, 2008 the Board of Directors of the Company authorized and declared a dividend distribution of one right (“Right”) for each share of Common Stock, $0.001 par value, of the Company (a “Common Share”) outstanding as of the close of business on June 9, 2008 (the “Record Date”), with each Right initially representing the right to purchase one Common Share, upon the terms and subject to the conditions hereinafter set forth, and further authorized the issuance of one Right with respect to each Common Share issued or delivered by the Company after the Record Date but prior to the Distribution Date (as hereinafter defined);

Section 1.

Certain Definitions.  For purposes of this Plan, the following terms shall have the meanings indicated:

(a)

“Acquiring Person” shall mean any Person (other than the Company or any Related Person) who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of twenty percent or more of the Common Shares then outstanding; provided however that (i) any Person who or which, together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of twenty percent or more of the Common Shares then outstanding in connection with a transaction or series of transactions approved prior to such transaction or transactions by the Board of Directors of the Company shall not be deemed an Acquiring Person by virtue of such transactions or series of transactions, and (ii) a Person shall not be deemed to have become an Acquiring Person solely as a result of a reduction in the number of Common Shares outstanding, unless subsequent to such reduction such Person or any Affiliate or Associate of such Person shall become the Beneficial Owner of any additional Common Shares other than as a result of a stock dividend, stock split or similar transaction effected by the Company in which all shareholders are treated equally.

(b)

“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act, as in effect on the date of this Plan.

(c)

A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “beneficially own” any securities:

(i)

which such Person or any of such Person's Affiliates or Associates, directly or indirectly, has the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in writing), or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise; provided however that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person's Affiliates or  Associates until such tendered securities are accepted for purchase or exchange; or

1

(ii)

which such Person or any of such Person's Affiliates or Associates, directly or indirectly, has the right to vote or dispose of, including pursuant to any agreement, arrangement or understanding (whether or not in writing); or

(iii)

of which any other Person is the Beneficial Owner if such Person or any of such Person's Affiliates or Associates has any agreement, arrangement or understanding (whether or not in writing) with such other Person (or any of such other Person's Affiliates or Associates) with respect to acquiring, holding, voting or disposing of any securities of the Company other than pursuant to a revocable proxy or a securities underwriting arrangement.

(d)

“Business Day” shall mean any day other than a Saturday, Sunday or a day on which banking institutions in New York or Poland are authorized or obligated by law or executive order to close.

(e)

“Close of Business” on any given date shall mean 5:00 p.m., Central European Time, on such date; provided however, that if such date is not a Business Day it shall mean 5:00 p.m., Central European Time, on the next succeeding Business Day.

(f)

“Common Shares” when used with reference to the Company shall mean the Common Stock, $0.001 par value, of the Company; provided, however, that, if the Company is the continuing or surviving corporation in a transaction described in Section 6(a)(ii) or Section 8(a)(ii) hereof, “Common Shares” when used with reference to the Company shall mean the capital stock or equity security with the greatest aggregate voting power of the Company. “Common Shares” when used with reference to any corporation or other legal entity, other than the Company, including an Issuer (as defined in Section 8(b) hereof), shall mean the capital stock or equity security with the greatest aggregate voting power of such corporation or other legal entity.

(g)

“Company” shall mean Sunset Suits Holdings, Inc., a Nevada corporation.

(h)

“Distribution Date” shall mean the earlier of:

(i)

the Close of Business on the twentieth calendar day (or if the Share Acquisition Date results from the consummation of a Permitted Offer, such later date as may be determined by the Company's Board of Directors before the Distribution Date) after the Share Acquisition Date; or

(ii)

the Close of Business on the twentieth calendar day (or such later date as may be specified by the Board of Directors prior to such time as any Person becomes an Acquiring Person) after the date of the commencement of a tender or exchange offer (as determined by reference to Rule 14d-2(a) under the Exchange Act) by any Person (other than the Company or any Related Person), the consummation of which could result in beneficial ownership by such Person of twenty percent or more of the outstanding Common Shares (including any such date which is after the date of this Plan and prior to the issuance of the Rights).

(i)

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

2

(j)

“Expiration Date” shall mean the earlier of (i) the Close of Business on the Final Expiration Date and (ii) the time at which the Rights are redeemed as provided in Section 11 hereof.

(k)

“Final Expiration Date” shall mean December 31, 2013.

(l)

“Flip-in Event” shall mean any event described in clauses (A), (B) or (C) of Section 6(a)(ii) hereof.

(m)

“Flip-over Event” shall mean any event described in subsections (i), (ii) or (iii) of Section 8(a) hereof.

(n)

“Issuer” shall have the meaning set forth in Section 8(b) of this Plan.

(o)

“NASDAQ” shall mean the National Association of Securities Dealers, Inc. Automated Quotation System.

(p)

“Permitted Offer” shall mean a tender offer or an exchange offer for all outstanding shares of Common Stock at a price and on terms for all outstanding shares of Common Stock determined by at least a majority of the members of the Board of Directors who are not officers or employees of the Company and who are not representatives, nominees, Affiliates or Associates of an Acquiring Person that is (a) fair to stockholders (taking into account all factors that such members of the Board of Directors deem relevant including, without limitation, prices that could reasonably be achieved if the Company or its assets were sold on an orderly basis designed to realize maximum value) and (b) otherwise in the best interests of the Company and its stockholders.

(q)

“Person” shall mean any individual, firm, corporation, partnership or other legal entity, and shall include any successor (by merger or otherwise) of such entity.

(r)

“Purchase Price” shall mean initially $9.50 per share of Common Stock and shall be subject to adjustment from time to time as provided in this Plan.

(s)

“Record Date” shall have the meaning set forth in the Recitals to this Plan.

(t)

“Redemption Price” shall mean $.001 per Right, subject to adjustment by resolution of the Board of Directors of the Company to reflect any stock split, stock dividend or similar transaction occurring after the date hereof.

(u)

“Related Person” shall mean (i) any Subsidiary of the Company or (ii) any employee benefit or stock ownership plan of the Company or any entity holding Common Shares for or pursuant to the terms of any such plan.

(v)

“Right” shall have the meaning set forth in the Recitals to this Plan.

(w)

“Right Certificates” shall mean certificates evidencing the Rights.

(x)

“Securities Act” shall mean the Securities Act of 1933, as amended.

3

(y)

“Share Acquisition Date” shall mean the first date of public announcement by the Company or an Acquiring Person (by press release, filing made with the Securities and Exchange Commission or otherwise) that an Acquiring Person has become such.

(z)

“Subsidiary” of any Person shall mean any corporation or other legal entity of which a majority of the voting power of the voting equity securities or equity interests is owned, directly or indirectly, by such Person.

(aa)

“Trading Day” shall mean any day on which the principal national securities exchange or other transaction reporting system on which the Common Shares are listed or admitted to trading is open for the transaction of business or, if the Common Shares are not listed or admitted to trading on any national securities exchange, a Business Day.

(bb)

“Triggering Event” shall mean any Flip-in Event or Flip-over Event.

Section 2.

Rights.

(a)

The Rights will be evidenced by the certificates representing Common Shares registered in the names of the record holders thereof (which certificates representing Common Shares shall also be deemed to be Right Certificates) and not by separate Right Certificates,

(b)

the Rights will be transferable only in connection with the transfer of the underlying Common Shares, and

(c)

the transfer of any certificates evidencing Common Shares shall also constitute the transfer of the Rights associated with the Common Shares evidenced by such certificates.

Section 3.

Exercise of Rights; Purchase Price; Expiration Date Of Rights.

(a)

Until the Distribution Date, the registered holder of any Right may exercise such Right by written notice to the Company of such exercise together with payment of the Purchase Price for the Common Share as to which such Right is exercised.  The Purchase Price shall be payable in lawful money of the United States of America by certified check or bank draft payable to the order of the Company.

(b)

Subject to Section 6(a)(ii) hereof, upon the exercise of a Right and payment as described above, the Company shall promptly (i) requisition from any transfer agent of the Common Shares certificates representing the number of Common Shares to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests, (ii) after receipt of such certificates cause the same to be delivered to or upon the order of the registered holder of such Right, registered in such name or names as may be designated by such holder, (iii) if appropriate, deliver to or upon the order of the registered holder of such Right the amount of cash to be paid in lieu of the issuance of fractional shares in accordance with Section 9 hereof or in lieu of the issuance of Common Shares in accordance with Section 6(a)(iii) hereof, and (iv) deliver any due bill or other instrument to the registered holder of such Right as provided by Section 6(l) hereof.

4

(c)

Notwithstanding anything in this Plan to the contrary, the Rights shall not be exercisable in any jurisdiction if the requisite qualification or registration in such jurisdiction shall not have been effected or the exercise of the Rights shall not be permitted under applicable laws, including but not limited to the Securities Act and applicable state securities laws.

Section 4.

Company Covenants Concerning Shares and Rights.  The Company covenants and agrees that:

(a)

It will cause to be reserved and kept available out of its authorized and unissued Common Shares the number of Common Shares that will be sufficient to permit the exercise pursuant to Section 3 hereof of all outstanding Rights.

(b)

So long as the Common Shares (and, following the occurrence of a Triggering Event, Common Shares and/or other securities) issuable and deliverable upon the exercise of the Rights may be listed on a national securities exchange or other transaction reporting system, it will endeavor to cause, from and after such time as the Rights become exercisable, all shares reserved for such issuance to be listed on such exchange or system upon official notice of issuance.

(c)

It will take all such action as may be necessary to ensure that all Common Shares (and, following the occurrence of a Triggering Event, Common Shares and/or other securities) delivered upon exercise of Rights, at the time of delivery of the certificates for such shares, shall be (subject to payment of the Purchase Price) duly and validly authorized and issued, fully paid and nonassessable shares, free and clear of any liens, encumbrances or other adverse claims and not subject to any rights of call or first refusal.

(d)

It will pay when due and payable any and all federal and state transfer taxes and charges that may be payable in respect of the issuance or delivery of the Rights or of any Common Shares (or other securities, as the case may be) upon the exercise of Rights; provided however that it will not be required to pay any transfer tax or charge which may be payable in respect of any transfer, issuance or delivery of certificates representing Common Shares (or other securities, as the case may be).

(e)

It will use its best efforts to (i) file on an appropriate form, as soon as practicable following the later to occur of a Triggering Event or the Distribution Date, a registration statement under the Securities Act with respect to the securities purchasable upon exercise of the Rights, (ii) cause such registration statement to become effective as soon as practicable after such filing, and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities, or (B) the Expiration Date.  The Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or “blue sky” laws of the various states in connection with the exercisability of the Rights; provided however that the Company may temporarily suspend the exercisability of the Rights in order to prepare and file such registration statement and permit it to become effective and upon any such suspension, the Company will issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect.

5

(f)

Notwithstanding anything in this Plan to the contrary, the Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 11 or Section 14 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish or otherwise eliminate the benefits intended to be afforded by the Rights.

(g)

In the event that the Company is obligated to issue other securities of the Company, pay cash and/or distribute other property pursuant to Sections 6 and 8 hereof, it will make all arrangements necessary so that such other securities, cash and/or property are available for distribution, if and when appropriate.

Section 5.

Record Date.  Each Person in whose name any certificate representing Common Shares (or other securities, as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Common Shares (or other securities, as the case may be) represented thereby on, and such certificate shall be dated, the date upon which the Rights were duly exercised hereunder and payment of the Purchase Price (and all applicable transfer taxes) was made.  Prior to the exercise of a Right, the holder of such Right shall not be entitled by virtue thereof to any rights of a shareholder of the Company with respect to securities for which the Right shall be exercisable, including without limitation the right to vote, receive dividends or other distributions or exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company except as provided herein.

Section 6.

Adjustment of Purchase Price, Number and Type of Shares or Number of Rights.  The Purchase Price, the number and kind of shares covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 6.

(a)

(i)

In the event that the Company shall at any time after the date of this Plan (A) declare a dividend on the Common Shares payable in Common Shares, (B) subdivide the outstanding Common Shares, (C) combine the outstanding Common Shares into a smaller number of shares or (D) issue any shares of its capital stock in a reclassification of the Common Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and/or the number and/or kind of shares of capital stock issuable on such date upon exercise of a Right, shall be proportionately adjusted so that the holder of a Right exercised after such time shall be entitled to receive upon payment of the Purchase Price then in effect the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such date and at a time when the Common Shares transfer books of the Company were open, he or she would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification.  If an event occurs which would require an adjustment under both this Section 6(a)(i) and Section 6(a)(ii) hereof or Section 8 hereof, the adjustment provided for in this Section 6(a)(i) shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 6(a)(ii) or Section 8 hereof.

6

(ii)

In the event that:

(A)

any Acquiring Person or any Associate or Affiliate of any Acquiring Person, at any time after the date of this Plan, directly or indirectly, shall (1) merge into the Company or otherwise combine with the Company and the Company shall be the continuing or surviving corporation of such merger or combination (other than in a transaction subject to Section 8 hereof), (2) merge or otherwise combine with any Subsidiary of the Company, (3) in one or more transactions (other than in connection with the exercise of Rights or the exercise or conversion of securities exercisable or convertible into capital stock of the Company or any of its Subsidiaries) transfer any assets to the Company or any of its Subsidiaries in exchange (in whole or in part) for shares of any class of capital stock of the Company or any of its Subsidiaries or for securities exercisable for or convertible into shares of any class of capital stock of the Company or any of its Subsidiaries, or otherwise obtain from the Company or any of its Subsidiaries, with or without consideration, any additional shares of any class of capital stock of the Company or any of its Subsidiaries or securities exercisable for or convertible into shares of any class of capital stock of the Company or any of its Subsidiaries (other than as part of a pro rata distribution to all holders of such shares of any class of capital stock of the Company, or any of its Subsidiaries), (4) sell, purchase, lease, exchange, mortgage, pledge, transfer or otherwise dispose (in one or more transactions) of any assets (including securities), to, from, with or of, as the case may be, the Company or any of its Subsidiaries (other than in a transaction subject to Section 8 hereof), (5) receive any compensation from the Company or any of its Subsidiaries other than compensation as a director or for full-time employment as a regular employee, in either case, at rates in accordance with the Company's (or its Subsidiaries') past practices, or (6) receive the benefit, directly or indirectly (except proportionately as a shareholder), of any loans, advances, guarantees, pledges or other financial assistance or any tax credits or other tax advantage provided by the Company or any of its Subsidiaries; or

(B)

during such time as there is an Acquiring Person, there shall be any reclassification of securities (including any reverse stock split), or recapitalization of the Company, or any merger or consolidation of the Company with any of its Subsidiaries or any other transaction or series of transactions involving the Company or any of its Subsidiaries (whether or not with or into or otherwise involving an Acquiring Person), other than a transaction subject to Section 8 of this Plan, which has the effect, directly or indirectly, of increasing by more than one percent the proportionate share of the outstanding shares of any class of equity securities or of securities exercisable for or convertible into equity securities of the Company or any of its Subsidiaries of which an Acquiring Person or any Associate or Affiliate of any Acquiring Person, is the Beneficial Owner; or

(C)

any Person (other than the Company or any Related Person) who or which, together with all Affiliates and Associates of such Person, shall at any time after the date of this Plan, become an Acquiring Person other than through a purchase of Common Shares pursuant to a tender offer made in the manner prescribed by Section 14(d) of the Exchange Act and the rules and regulations promulgated thereunder and which is a Permitted Offer; then in each such case proper provision shall be made so that each holder of a Right, except as provided below, shall thereafter have a right to receive, upon exercise thereof in accordance with the term of this Plan at an exercise price per Right equal to the product of the then-current Purchase Price multiplied by the number of Common Shares for which a Right was exercisable immediately prior to the first occurrence of such Flip-in Event (but assuming the rights were then exercisable), such number of Common Shares as shall equal the result obtained by multiplying the then-current Purchase Price by the number of Common Shares for which a Right was exercisable immediately prior to the first occurrence of such Flip-in Event (assuming exercisability), and dividing that product by fifty percent of the current per share market price of a Common Share (determined pursuant to Section 6(d) hereof) on the date of the first occurrence of any such Flip-in Event.  Notwithstanding anything in this Plan to the contrary, from and after the first occurrence of any such Flip-in Event, any Rights of which any Acquiring Person or any Associate or Affiliate of such Acquiring Person involved in such Flip-in Event is or was at any time the Beneficial Owner after the date upon which such Acquiring Person became such shall become void and any holder of such Rights shall thereafter have no right to exercise such Rights under any provision of this Plan.

7

(iii)

In the event that there shall not be sufficient authorized but unissued Common Shares or authorized and issued Common Shares held in treasury to permit the exercise in full of the Rights in accordance with the foregoing subsection (ii), and the Company is unable to obtain the authorization of the necessary additional Common Shares within ninety calendar days after the occurrence of the Flip-in Event, then, notwithstanding anything in this Plan to the contrary, the Company shall determine the excess of the value of the Common Shares issuable upon the exercise of a Right over the Purchase Price (such excess being hereinafter referred to as the “Spread”) and shall be obligated to deliver, upon the surrender of such Right and without requiring payment of the Purchase Price, Common Shares (to the extent available) and cash (to the extent permitted by applicable law and any agreements or instruments to which the Company is a party in effect immediately prior to the first occurrence of any Flip-in Event) in an amount equal to the Spread.  To the extent that any legal or contractual restrictions prevent the Company from paying the full amount of cash payable in accordance with the foregoing sentence, the Company shall pay to holders of the Rights as to which such payments are payable all amounts which are not then restricted on a pro rata basis and shall continue to make payments on a pro rata basis as funds become available until the full amount due to each such Right holder has been paid.

(b)

In the event that the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Common Shares entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Common Shares (or securities having equivalent rights, privileges and preferences as the Common Shares (“equivalent common shares”)) or securities convertible into Common Shares or equivalent common shares at a price per Common Share or equivalent common share (or having a conversion price per share, if a security convertible into Common or equivalent common shares) less than the current per share market price of the Common Shares (as determined pursuant to Section 6(d) hereof) on such record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of Common Shares outstanding on such record date plus the number of Common Shares which the aggregate offering price of the total number of Common Shares and/or equivalent common shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such current per share market price and the denominator of which shall be the number of Common Shares outstanding on such record date plus the number of additional Common Shares and/or equivalent common shares to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible).  In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a written statement which shall be conclusive for all purposes.  Common Shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation.  Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed.

8

(c)

In the event that the Company shall fix a record date for the making of a distribution to all holders of Common Shares (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness, cash (other than a regular periodic cash dividend at a rate not in excess of 125 percent of the rate of the highest regular periodic cash dividend paid during the immediately preceding two years), assets, stock (other than a dividend payable in Common Shares) or subscription rights, options or warrants (excluding those referred to in Section 6(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the current per share market price of the Common Shares (as determined pursuant to Section 6(d) hereof) on such record date or, if earlier, the date on which Common Shares begin to trade on an ex-dividend or when-issued basis with respect to such distribution, less the fair market value (as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a written statement which shall be conclusive for all purposes) of the portion of the cash, assets, stock or evidences of indebtedness so to be distributed (in the case of periodic cash dividends, only that portion in excess of 125 percent of the rate of the highest regular periodic cash dividend paid during the immediately preceding two years) or of such subscription rights, options or warrants applicable to Common Shares, and the denominator of which shall be such current per share market price of the Common Shares.  Such adjustments shall be made successively whenever such a record date is fixed; in the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed.

(d)

For the purpose of any computation hereunder, the “current per share market price” of Common Shares on any date shall be deemed to be the average of the daily closing prices per share of such Common Shares for the thirty consecutive Trading Days immediately prior to such date; provided however that in the event that the current per share market price of the Common Shares is determined during a period following the announcement by the issuer of such Common Shares of (A) a dividend or distribution on such Common Shares payable in such Common Shares or securities convertible into such Common Shares (other than the Rights) or (B) any subdivision, combination or reclassification of such Common Shares, and prior to the expiration of thirty Trading Days after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the current per share market price shall be appropriately adjusted to take into account ex-dividend trading or to reflect the current per share market price per Common Share equivalent.  The closing price for each day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Common Shares are listed or admitted to trading or, if the Common Shares are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by NASDAQ or such other system then in use, or, if on any such date the Common Shares are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Common Shares selected by the Board of Directors of the Company.  If the Common Shares are not publicly held or not so listed or traded, or not the subject of available bid and asked quotes, “current per share market price” shall mean the fair value per share as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a written statement which shall be conclusive for all purposes.

9

(e)

Except as set forth below, no adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least one percent in such price; provided, however, that any adjustments which by reason of this Section 6(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment.  All calculations under Section 6 shall be made to the nearest cent or to the nearest whole Common Share or other share, as the case may be.  Notwithstanding the first sentence of this Section 6(e), any adjustment required by Section 6 shall be made no later than the earlier of (i) three years from the date of the transaction which requires such adjustment or (ii) the Expiration Date.

(f)

If as a result of an adjustment made pursuant to Section 8(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than Common Shares, thereafter the number of such other shares so receivable upon exercise of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Common Shares contained in this Section 6 and the provisions of Sections 3, 4, 5, 8 and 9 hereof with respect to the Common Shares shall apply on like terms to any such other shares.

(g)

All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of Common Shares purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided in this Plan.

(h)

Upon each adjustment of the Purchase Price as a result of the calculations made in Section 6(b) hereof and Section 6(c) hereof made with respect to a distribution of subscription rights, options or warrants applicable to Common Shares, each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of Common Shares (calculated to the nearest whole Common Share) obtained by (i) multiplying the number of Common Shares covered by a Right immediately prior to this adjustment by the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

10

(i)

Before taking any action that would cause an adjustment reducing the Purchase Price below the par value of the Common Shares issuable upon exercise of the Rights, the Company shall take any corporate action which may be necessary in order that the Company may validly and legally issue fully paid and nonassessable Common Shares at such adjusted Purchase Price.

(j)

In any case in which this Section 6 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer until the occurrence of such event the issuance to the holder of any Right exercised after such record date the number of Common Shares or other capital stock or securities of the Company, if any, issuable upon such exercise over and above the number of Common Shares or other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided however that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder's right to receive such additional shares, capital stock or securities upon the occurrence of the event requiring such adjustment.

(k)

Notwithstanding anything in this Plan to the contrary, the Company shall be entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 6, as and to the extent that in their good faith judgment the Board of Directors of the Company shall determine to be advisable in order that any (i) consolidation or subdivision of the Common Shares, (ii) issuance wholly for cash of Common Shares at less than the current per share market price therefor, (iii) issuance wholly for cash of securities which by their term are convertible into or exchangeable for Common Shares, (iv) stock dividends, or (v) issuance of rights, options or warrants referred to in this Section 6, hereafter made by the Company to holders of its Common Shares shall not be taxable to such shareholders.

(l)

Notwithstanding anything in this Plan to the contrary, in the event that the Company shall at any time after the date of this Plan and prior to the Distribution Date (i) declare a dividend on the outstanding Common Shares payable in Common Shares, (ii) subdivide the outstanding Common Shares, (iii) combine the outstanding Common Shares into a smaller number of shares, or (iv) issue any shares of its capital stock in a reclassification of the outstanding Common Shares, the number of Rights associated with each Common share then outstanding, or issued or delivered thereafter but prior to the Distribution Date, shall be proportionately adjusted so that the number of Rights thereafter associated with each Common Share following any such event shall equal the result obtained by multiplying the number of Rights associated with each Common Share immediately prior to such event by a fraction the numerator of which shall be the total number of Common Shares outstanding immediately prior to the occurrence of the event and the denominator of which shall be the total number of Common Shares outstanding immediately following the occurrence of such event, provided that any resulting fractional amount shall be rounded to the nearest whole number.

Section 7.

Certificate of Adjusted Purchase Price or Number of Shares.  Whenever an adjustment is made as provided in Section 6 or Section 8(a) hereof, the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting  for such adjustment, (b) promptly file with the transfer agent for the Common Shares, a copy of such certificate, and (c) if such adjustment is made after the Distribution Date, mail a brief summary of such adjustment to each holder of a Right Certificate in accordance with Section 13 hereof.

11

Section 8.

Consolidation, Merger or Sale or Transfer of Assets or Earning Power.

(a)

Except as provided in Section 8(c) of this Plan, in the event that, following the Share Acquisition Date, directly or indirectly, (i)  the Company shall consolidate with, or merge with or into, any other Person (other than a Related Person in a transaction which complies with Section 4(f) hereof) and the Company shall not be the continuing or surviving corporation of such consolidation or merger; (ii) any Person (other than a Related Person in a transaction which complies with Section 4(f) hereof) shall consolidate with the Company, or merge with or into the Company and the Company shall be the continuing or surviving corporation of such merger or consolidation and, in connection with such merger or consolidation, all or part of the Common Shares shall be changed into or exchanged for stock or other securities of such other Person or cash or any other property; or (iii) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one or more transactions, assets or earning power (including without limitation securities creating any obligation on the part of the Company and/or any of its Subsidiaries) representing in the aggregate more than fifty percent of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any Acquiring Person or Persons (other than the Company or any Related Person in one or more transactions each of which complies with Section 4(f) hereof), then, and in each such case, proper provision shall be made so that (A) except as provided below, each holder of a Right shall thereafter have the right to receive, upon the exercise of it in accordance with the terms of this Plan at an exercise price per Right equal to the product of the then-current Purchase Price multiplied by the number of Common Shares for which a Right is then exercisable, in lieu of Common Shares, such number of validly authorized and issued, fully paid, nonassessable and freely tradeable Common Shares of the Issuer (as such term is hereinafter defined), free and clear of any liens, encumbrances and other adverse claims and not subject to any rights of call or first refusal, as shall be equal to the result obtained by multiplying the then-current Purchase Price by the number of Common Shares for which a Right is exercisable immediately prior to the first occurrence of any Flip-over Event (or, if a Flip-in Event has occurred prior to the first occurrence of a Flip-over Event, multiplying the number of Common Shares for which a Right was exercisable immediately prior to the first occurrence of a Flip-in Event, assuming the Rights were then exercisable by the Purchase Price in effect immediately prior to such first occurrence), and dividing that product by fifty percent of the current per share market price of the Common Shares of the Issuer (determined pursuant to Section 6(d) hereof), on the date of consummation of such Flip-over Event; (B) the Issuer shall thereafter be liable for, and shall assume, by virtue of such Flip-over Event, all the obligations and duties of the Company pursuant to this Plan; (C) the term “Company” shall thereafter be deemed to refer to the Issuer; and (D) the Issuer shall take such steps (including without limitation the reservation of a sufficient number of its Common Shares to permit the exercise of all outstanding Rights) in connection with such consummation as may be necessary to ensure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be possible, in relation to its Common Shares thereafter deliverable upon the exercise of the Rights.

12

(b)

For purposes of this Section 8, “Issuer” shall mean (i) in the case of any Flip-over Event described in Sections 8(a)(i) or (ii) above, the Person that is the continuing, surviving, resulting or acquiring Person (including the Company as the continuing or surviving corporation of a transaction described in Section 8(a)(ii) above), and (ii) in the case of any Flip-over Event described in Section 8(a)(iii) above, the Person that is the party receiving the greatest portion of the assets or earning power (including without limitation securities creating any obligation on the part of the Company and/or any of its Subsidiaries) transferred pursuant to such transaction or transactions; provided however that in any such case, (A) if (1) no class of equity security of such Person is, at the time of such merger, consolidation or transaction and has been continuously over the preceding twelve-month period, registered pursuant to Section 12 of the Exchange Act, and (2) such Person is a Subsidiary, directly or indirectly, of another Person, a class of equity security of which is and has been so registered, the term “Issuer” shall mean such other Person; and (B) in case such Person is a Subsidiary, directly or indirectly, of more than one Person, a class of equity security of two or more of which are and have been so registered, the term “Issuer” shall mean whichever of such Persons is the issuer of the equity security having the greatest aggregate market value.  Notwithstanding the foregoing, if the Issuer in any of the Flip-over Events listed above is not a corporation or other legal entity having outstanding equity securities, then, and in each such case, (i) if the Issuer is directly or indirectly wholly owned by a corporation or other legal entity having outstanding equity securities, then all references to Common Shares of the Issuer shall be deemed to be references to the Common Shares of the corporation or other legal entity having outstanding equity securities which ultimately controls the Issuer, and (ii) if there is no such corporation or other legal entity having outstanding equity securities, (Y) proper provision shall be made so that the Issuer shall create or otherwise make available for purposes of the exercise of the Rights in accordance with the terms of this Plan, a type or types of security or securities having a fair market value at least equal to the economic value of the Common Shares which each holder of a Right would have been entitled to receive if the Issuer had been a corporation or other legal entity having outstanding equity securities; and (Z) all other provisions of this Plan shall apply to the issuer of such securities as if such securities were Common Shares.

(c)

Notwithstanding anything contained in this Plan to the contrary, the adjustments described in Section 8(a) of this Plan shall not be made upon the occurrence of an event described in Section 8(a)(i) or Section 8(a)(ii) if all of the following are met:

(i)

the Company shall merge or consolidate with an Acquiring Person (or a wholly owned subsidiary of such Acquiring Person) who became an Acquiring Person pursuant to a Permitted Offer;

(ii)

the per share consideration offered in such merger or consolidation is equal to or greater than the price per Common Share paid to all holders of Common Stock whose shares were purchased pursuant to such Permitted Offer; and

(iii)

the form of consideration being offered to the remaining holders of shares of Common Stock pursuant to such transaction is the same as the form of consideration paid pursuant to such Permitted Offer.

13

(d)

The Company shall not consummate any Flip-over Event unless the Issuer shall have a sufficient number of authorized Common Shares (or other securities as contemplated in Section 8(b) above) which have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 8 and unless prior to such consummation the Company and the Issuer shall have both executed an agreement providing for the terms set forth in subsections (a) and (b) of this Section 8 and further providing that as soon as practicable after the consummation of any Flip-over Event, the Issuer will (i)  prepare and file a registration statement under the Securities Act, with respect to the Rights and the securities purchasable upon exercise of the Rights on an appropriate form, and will use its best efforts to cause such registration statement to (A) become effective as soon as practicable after such filing and (B) remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the Expiration Date; and (ii) deliver to holders of the Rights historical financial statements of the Issuer and each of its Affiliates which comply in all respects with the requirements for registration on Form 10 under the Exchange Act.

(e)

The provisions of this Section 8 shall similarly apply to successive mergers or consolidations or sales or other transfers.  In the event that a Flip-over Event occurs at any time after the occurrence of a Flip-in Event, the Rights which have not theretofore been exercised shall thereafter become exercisable in the manner described in this Section 8.

Section 9.

Fractional Rights and Fractional Shares.

(a)

The Company shall not be required to issue fractions of Rights.  In lieu of any fractional Rights which would otherwise result from this Plan, the number of Rights to be issued to a shareholder of the Company shall be rounded to the nearest whole Right.

(b)

The Company shall not be required to issue fractions of Common Shares upon exercise of the Rights or to distribute certificates which evidence fractional Common Shares.  In lieu of any fractional Common Shares which would otherwise result from this Plan, the number of Common Shares to be issued by the Company under the Plan shall be rounded to the nearest whole Common Share.

Section 10.

Agreement of Rights Holders.  Every holder of a Right by accepting the same consents and agrees with the Company and with every other holder of a Right that, notwithstanding anything in this Plan to the contrary, the Company shall not have any liability to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this Plan by reason of any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation; provided however that the Company shall use its best efforts to have any such order, decree or ruling lifted or otherwise overturned as soon as reasonably possible.

14

Section 11.

Redemption.

(a)

The Board of Directors of the Company may at its option redeem all but not less than all of the then-outstanding Rights at the Redemption Price at any time prior to the Close of Business on the earlier of (i) the Final Expiration Date or (ii) the tenth business day following the Share Acquisition Date.

(b)

If after the occurrence of a Share Acquisition Date and following the expiration of the right of redemption hereunder but prior to the occurrence of a Triggering Event, each of the following shall have occurred and remain in effect:  (i) a Person who is an Acquiring Person shall have transferred or otherwise disposed of a number of Common Shares in a transaction, or series of transactions, which did not result in the occurrence of any Triggering Event such that such Person is thereafter a Beneficial Owner of ten percent or less of the outstanding Common Shares, (ii) there are no other Persons, immediately following the occurrence of the event described in clause (i), who are Acquiring Persons, and (iii) the transfer or other disposition described in clause (i) above was other than pursuant to a transaction, or series of transactions, which directly or indirectly involved the Company or any of its Subsidiaries, then the right of redemption set forth in Section 11(a) shall be reinstated and thereafter be subject to the provisions of this Section 11.

(c)

Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights, and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price.  Promptly after the action of the Board of Directors ordering the redemption of the Rights, the Company shall publicly announce such action and within ten calendar days thereafter the Company shall give notice of such redemption to the holders of the then-outstanding Rights by mailing such notice to all such holders at their last addresses as they appear upon the registry books of the Company or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Shares.  Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice.  Each such notice of redemption will state the method by which the payment of the Redemption Price will be made.  The Company may at its option pay the Redemption Price in cash, Common Shares (based upon the current per share market price of the Common Shares (determined pursuant to Section 6(d) hereof), at the time of redemption) or any other form of consideration deemed appropriate by the Board of Directors.

(d)

The Board of Directors of the Company may at any time relinquish any or all of the rights to redeem the Rights under Sections 11(a) or 11(b) hereof by duly adopting a resolution to that effect.  Promptly after adoption of such a resolution, the Company shall publicly announce such action.  Immediately upon adoption of such resolution, the rights of the Board of Directors under the portions of this Section 18 specified in such resolution shall terminate without further action and without any notice.

Section 12.

Notice of Certain Events.

(a)

In case after the Distribution Date the Company shall propose (i) to pay any dividend payable in stock of any class to the holders of Common Shares or to make any other distribution to the holders of Common Shares (other than a regular periodic cash dividend at a rate not in excess of 125 percent of the rate of the highest regular periodic cash dividend paid during the immediately preceding two years), (ii) to offer to the holders of Common Shares rights, options or warrants to subscribe for or to purchase any additional Common Shares or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of its Common Shares (other than a reclassification involving only the subdivision of outstanding Common Shares), or (iv) to effect any consolidation or merger into or with, or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more transactions, of assets or earning power (including without limitation securities creating any obligation on the part of the Company and/or any of its Subsidiaries) representing more than fifty percent of the assets and earning power of the Company and its Subsidiaries, taken as a whole, to any other Person or Persons, then in each such case the Company shall give to each holder of a Right Certificate notice in accordance with Section 13 hereof of such proposed action which shall specify the record date for the purposes of such stock dividend, distribution or offering of rights, options or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of participation therein by the holders of the Common Shares, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least twenty calendar days prior to the record date for determining holders of the Common Shares for purposes of such action, and in the case of any such other action at least twenty calendar days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the Common Shares, whichever shall be the earlier.

15

(b)

In case any Triggering Event shall occur, then in each such case the Company shall as soon as practicable thereafter give to each holder of a Right Certificate notice in accordance with Section 13 hereof of the occurrence of such event which shall specify the event and the consequences of the event to holders of Rights.

Section 13.

Notices.

(a)

Notices or demands authorized by this Plan to be given or made by the holder of any Right Certificate to or on the Company shall be sufficiently given or made if sent by (i) confirmed telefax or (ii) first-class mail with postage prepaid, addressed (until written notice of another address is given to the holders of Right Certificates) as follows:

Sunset Suits Holdings, Inc.

ul. Garbary 57

61-758 Poznań

Poland

Facsimile:  48-61-642-40-53

Attn:  Mirosław Kranik, President

(b)

Notices or demands authorized by this Plan to be given or made by the Company to or on the holder of any Right shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company.

16

Section 14.

Supplements and Amendments.  Prior to the Share Acquisition Date, the Company shall supplement or amend any provision of this Plan in any manner which the Company may deem desirable without the approval of any holders of Rights or certificates representing Common Shares.  Notwithstanding anything in this Plan to the contrary, no supplement or amendment shall be made which decreases the stated Redemption Price or the period of time remaining until the Final Expiration Date.

Section 15.

Successors; Certain Covenants.  All the covenants and provisions of this Plan by or for the benefit of the Company shall bind and inure to the benefit of its successors and assigns hereunder.

Section 16.

Severability.  If any term, provision, covenant or restriction of this Plan is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Plan shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

Section 17.

Governing Law.  This Plan and each Right Certificate issued hereunder shall be deemed to be a contract made under the internal substantive laws of the State of Nevada and for all purposes shall be governed by and construed in accordance with the internal substantive laws of such State applicable to contracts to be made and performed entirely within such State.

Section 18.

Descriptive Headings.  Descriptive headings of the several sections of this Plan are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

[Signature Page Follows]

17

IN WITNESS WHEREOF, the Company has caused this Shareholder Rights Plan to be duly executed on its behalf as of the date first above written.

  	SUNSET SUITS HOLDINGS, INC.,
	a Nevada corporation
	 
	 
	
      By: /s/ Mirosław Kranik
	
      Name: Mirosław Kranik
	President: President and Chief
      Executive OfficerSunset Suits Holdings, Inc.: Exhibit 10.1 - Prepared by TNT Filings Inc.

  

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”) is dated as of May 21, 2008 among SMSA III ACQUISITION CORP., a Nevada corporation (the “Company”), and the investors listed on the Schedule of Buyers attached hereto as Annex A and identified on the signature pages hereto (each, an “Investor” and collectively, the “Investors”).

BACKGROUND

Subject to the terms and conditions set forth in this Agreement and pursuant to the Securities Act (as defined below), the Company desires to issue and sell to each Investor, and each Investor, severally and not jointly, desires to purchase from the Company certain securities of the Company, as more fully described in this Agreement.
 

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Investors agree as follows:

ARTICLE 1.

DEFINITIONS

1.1.

Definitions.  In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the meanings indicated in this Section 1.1:

 “Action” means any action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation pending or threatened in writing against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency, regulatory authority (federal, state, county or local), stock market, stock exchange or trading facility.

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person.

“Agreement” has the meaning set forth in the Preamble.

“Business Day” means any day except Saturday, Sunday and any day which is a legal holiday or a day on which banking institutions in the State of New York or in Poznań, Poland are authorized or required by law or other governmental action to close.

“Closing” means the closing of the purchase and sale of the Shares pursuant to Article 2.

1

“Closing Date” means the Business Day on which all of the conditions set forth in Sections 5.1 and 5.2 hereof are satisfied, or such other date as the parties may agree.

“Closing Escrow Agreement” means that certain Escrow Agreement, dated as of the date hereof, among the Investors, Wentworth Securities, Inc., as agent, Thelen Reid Brown Raysman & Steiner LLP, as escrow agent, and the Company.

“Commission” means the Securities and Exchange Commission.

“Common Stock” means the common stock of the Company, par value $0.001 per share, including the appurtenant common stock purchase rights thereto, and any securities into which such common stock may hereafter be reclassified.

“Company” has the meaning set forth in the Preamble.

“Company Counsel” means Thelen Reid Brown Raysman & Steiner LLP.

“Company Deliverables” has the meaning set forth in Section 2.2(a).

“Disclosure Materials” means the Schedules to this Agreement.

“Escrow Agent” means Thelen Reid Brown Raysman & Steiner LLP.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Financial Statements” has the meaning set forth in Section 3.1(h).

“GAAP” means U.S. generally accepted accounting principles.

“Intellectual Property Rights” has the meaning set forth in Section 3.1(o).

“Investment Amount” means, with respect to each Investor, the Investment Amount indicated on such Investor’s signature page to this Agreement.

“Investor” has the meaning set forth in the Preamble.

“Investor Deliverables” has the meaning set forth in Section 2.2(b).

“Lien” means any lien, charge, encumbrance, security interest, or other charge of any kind.

“Make Good Escrow Agreement” means that certain Make Good Escrow Agreement, dated as of the date hereof, among the Company, Wentworth Securities, Inc., as agent, Halter Financial Group, L.P., the escrow agent identified therein  (the “Make Good Escrow Agent”) and the Make Good Pledgor.

“Make Good Pledgor” means Mr. Mirosław Kranik.

2

“Material Adverse Effect” means any of (i) a material and adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material and adverse effect on the results of operations, assets, prospects, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, except for results or consequences attributable to the effects of, or changes in, general economic or capital markets conditions or effects and changes that generally affect the Polish apparel industry, such as regulatory action by the Polish or municipal governments or (iii) an adverse impairment to the Company’s ability to perform on a timely basis its obligations under any Transaction Document.

“New York Courts” means the state and federal courts sitting in the City of New York, Borough of Manhattan.

“Outside Date” means May 31, 2008.

“Per Share Purchase Price” equals $3.12.

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

“Proceeding” means an action, claim, suit, investigation or proceeding (including an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

“Registrable Securities” has the meaning set forth in Section 4.2(a).

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

“Securities Act” means the Securities Act of 1933, as amended.

“Shares” means the shares of Common Stock issued, issuable or transferable to the Investors pursuant to this Agreement.

“Short Sales” include all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, swaps and similar arrangements (including on a total return basis), and sales and other transactions through non-US broker dealers or foreign regulated brokers.

“Subsidiary” means any “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X promulgated by the Commission under the Exchange Act.

“Trading Day” means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by the Pink Sheets LLC (or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

3

“Trading Market” means whichever of the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market or OTC Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question.

“Transaction Documents” means this Agreement, the Closing Escrow Agreement, the Make Good Escrow Agreement and any other documents or agreements executed in connection with the transactions contemplated hereunder.

ARTICLE 2.

PURCHASE AND SALE

2.1.

Closing.  Subject to the terms and conditions set forth in this Agreement, at the Closing the Company shall issue and sell to each Investor, and each Investor shall, severally and not jointly, purchase from the Company, the Shares representing such Investor’s Investment Amount.  The Closing shall take place at the offices of Thelen Reid Brown Raysman & Steiner LLP, 701 Eighth Street, NW, Washington, D.C. 20001 on the Closing Date or at such other location or time as the parties may agree.

2.2.

Closing Deliveries.

(a)

On the date of this Agreement, the Company shall deliver or cause to be delivered to each Investor the Closing Escrow Agreement, duly executed by the Company and the Escrow Agent and the Make Good Escrow Agreement, duly executed by the Company, the Make Good Pledgor and the Make Good Escrow Agent; and at the Closing, or as soon thereafter as is reasonably practicable as to item (i) below, the Company shall deliver or cause to be delivered to each Investor the following (the “Company Deliverables”):

(i)

a certificate evidencing a number of Shares equal to such Investor’s Investment Amount divided by the Per Share Purchase Price, registered in the name of such Investor or its nominee;
 

(ii)

an opinion of Company Counsel in form and substance reasonably satisfactory to the Investors; and

(iii)

an opinion of the Company’s law firm in Poland (which Polish legal opinion shall address, among other things, the legality under Polish law of any reorganizations or legal structures owned by the Company in Poland), in agreed form, addressed to the Investors.

(b)

Each Investor shall deliver or cause to be delivered to the Company the following (the “Investor Deliverables”):

4

(i)

on the date of this Agreement, the Closing Escrow Agreement, duly executed by such Investor, and the Make Good Escrow Agreement, duly executed by Wentworth Securities, Inc., as agent; and

(ii)

within one Business Day following the date of this Agreement, each Investor shall cause to be delivered to the Escrow Agent, its Investment Amount, in United States dollars and in immediately available funds, by wire transfer to an account designated in writing by the Company for such purpose in accordance with the terms of the Closing Escrow Agreement.

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES

3.1.

Representations and Warranties of the Company.  The Company hereby makes the following representations and warranties to each Investor as of the date hereof and as of the Closing Date:

(a)

Subsidiaries.  The Company has no direct or indirect Subsidiaries other than as disclosed in Schedule 3.1(a).  The Company owns, directly or indirectly, all of the capital stock of each Subsidiary free and clear of any and all Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights.

(b)

Organization and Qualification.  Except as disclosed in Schedule 3.1(b), each of the Company and each Subsidiary is duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.  Neither the Company nor any Subsidiary is in violation of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents.  Each of the Company and each Subsidiary is duly qualified to conduct its respective businesses and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.

(c)

Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations thereunder.  The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company in connection therewith.  Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

5

(d)

No Conflicts.  The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of the Company’s articles of incorporation or bylaws, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) result in a violation of any U.S. law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.

(e)

Filings, Consents and Approvals.  The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any United States court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (i) the filing with the Commission of one or more registration statements in accordance with the requirements of this Agreement, (ii) filings required by state securities laws, (iii) the filing of a Notice of Sale of Securities on Form D with the Commission under Regulation D of the Securities Act and (iv) those that have been made or obtained prior to the date of this Agreement.

(f)

Issuance of the Shares.  The Shares have been duly authorized and are, or with respect to the Shares to be delivered to the Investors on the Closing Date, when issued and paid for in accordance with the Transaction Documents, will be, duly and validly issued, fully paid and nonassessable, free and clear of all Liens.  The Company has reserved from its duly authorized capital stock the shares of Common Stock issuable pursuant to this Agreement in order to issue the Shares.

(g)

Capitalization.  The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock, par value $0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share.  As of the date hereof, 7,371,428 shares of Common Stock are issued and outstanding and no shares of preferred stock are outstanding.  There are no shares of Common Stock reserved for issuance under any option or incentive plan.  No securities of the Company are entitled to preemptive or similar rights, and no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents.  There are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock, or securities or rights convertible or exchangeable into shares of Common Stock.  The sale of Shares to the Investors will not, immediately or with the passage of time, obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Investors) or result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities.

6

(h)

Financial Statements.  Set forth on Schedule 3.1(h) are (i) the audited financial statements of the Company for the period from inception of the Company on September 26, 2007 through December 31, 2007 and (ii) the audited consolidated financial statements of the Company’s Subsidiary Sunset Suits S.A. and its Subsidiaries for the fiscal years ended December 31, 2007 and 2006  (the “Financial Statements”).  The Financial Statements have been prepared in accordance with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified in such Financial Statements or the notes thereto, and fairly present in all material respects the financial position of the Company and its Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended.
 

(i)

Material Changes.  Since the date of the Financial Statements, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Financial Statements pursuant to GAAP, (iii) the Company has not altered its method of accounting or the identity of its auditors, and (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock.

(j)

Litigation.  There is no Action which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Shares or (ii) could, if there were an unfavorable decision, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any Subsidiary, nor any director or officer thereof (in his or her capacity as such), is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.  There has not been, and to the knowledge of the Company, there is not pending any investigation by the Commission involving the Company or any current or former director or officer of the Company (in his or her capacity as such).

(k)

Labor Relations.  No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company or any Subsidiary.

(l)

Compliance.  Except as disclosed in Schedule 3.1(l), neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including all federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in the case of clause (i), such as could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.   

7

(m)

Regulatory Permits.  The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such permits could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any such permits.

(n)

Title to Assets.  Except as disclosed in Schedule 3.1(n), the Company and the Subsidiaries use, own or have legal right to all real property that is material to their respective businesses and good and marketable title in all personal property owned by them that is material to their respective businesses, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries.  Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases.

(o)

Patents and Trademarks.  The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights (collectively, the “Intellectual Property Rights”) that are necessary or material for use in connection with their respective businesses and which the failure to so have could, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any Subsidiary has received a written notice that the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person.  To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights.

(p)

Insurance.  The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged.

(q)

Certain Registration Matters.  Assuming the accuracy of the Investors’ representations and warranties set forth in Section 3.2(b)-(e), no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Investors under the Transaction Documents.  The Company is eligible to register its Common Stock for resale by the Investors under the Securities Act.

8

(r)

Certain Fees.  Except as described in Schedule 3.1(r), no brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement.  The Investors shall have no obligation with respect to any fees or with respect to any claims (other than such fees or commissions owed by an Investor pursuant to written agreements executed by such Investor which fees or commissions shall be the sole responsibility of such Investor) made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by this Agreement.

3.2.

Representations and Warranties of the Investors.  Each Investor hereby, for itself and for no other Investor, represents and warrants to the Company as follows:

(a)

Organization; Authority.  If such Investor is a business entity, such Investor is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the applicable Transaction Documents and otherwise to carry out its obligations thereunder.  The execution, delivery and performance by such Investor of the transactions contemplated by this Agreement has been duly authorized by all necessary corporate or, if such Investor is not a corporation, such partnership, limited liability company or other applicable like action, on the part of such Investor.  Each of this Agreement and the Closing Escrow Agreement has been duly executed by such Investor, and when delivered by such Investor in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Investor, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

(b)

Investment Intent.  Such Investor is acquiring the Shares as principal for its own account for investment purposes only and not with a view towards, or resale in connection with, a public sale or distribution of such Shares or any part thereof, without prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all or any part of such Shares in compliance with applicable federal and state securities laws.  Subject to the immediately preceding sentence, nothing contained herein shall be deemed a representation or warranty by such Investor to hold the Shares for any period of time.  Such Investor is acquiring the Shares hereunder in the ordinary course of its business. Such Investor does not have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Shares.

(c)

Investor Status.  At the time such Investor was offered the Shares, it was an “accredited investor” as defined in Rule 501(a) under the Securities Act.  Such Investor is not a registered broker dealer under Section 15 of the Exchange Act.

(d)

General Solicitation.  Such Investor is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio.

9

(e)

Access to Information.  Such Investor acknowledges that it has reviewed the Disclosure Materials and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.  Neither such inquiries nor any other investigation conducted by or on behalf of such Investor or its representatives or counsel shall modify, amend or affect such Investor’s right to rely on the truth, accuracy and completeness of the Disclosure Materials and the Company’s representations and warranties contained in the Transaction Documents.

(f)

Certain Trading Activities.  Such Investor has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Investor, engaged in any transactions in the securities of the Company (including any Short Sales involving the Company’s securities) since the time that such Investor was first contacted by the Company regarding the investment in the Company contemplated by this Agreement.  Such Investor covenants that neither it nor any Person acting on its behalf or pursuant to any understanding with it will engage in any transactions in the securities of the Company (including Short Sales) prior to the time that the transactions contemplated by this Agreement are publicly disclosed.

(g)

Independent Investment Decision.  Such Investor has independently evaluated the merits of its decision to purchase Shares pursuant to the Transaction Documents, and such Investor confirms that it has not relied on the advice of any other Investor’s business and/or legal counsel in making such decision.  Such Investor confirms that none of such Persons has made any representations or warranties to such Investor in connection with the transactions contemplated by the Transaction Documents.

(h)

Regulation S.  Such Investor (i) acknowledges that the certificate(s) representing or evidencing the Shares contain a customary restrictive legend restricting the offer, sale or transfer of any Shares except in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or pursuant to an available exemption from registration, (ii) agrees that all offers and sales by such Investor of Shares shall be made pursuant to an effective registration statement under the Securities Act or pursuant to an exemption from, or a transaction not subject to the registration requirements of, the Securities Act, (iii) represents that the offer to purchase the Shares was made to such Investor outside of the United States, and such Investor was, at the time of the offer and will be, at the time of the sale and is now, outside the United States, (iv) has not engaged in or directed any unsolicited offers to purchase Shares in the United States, (v) is neither a U.S. Person nor a Distributor (as such terms are defined in Section 902(a) and 902(c), respectively, of Regulation S), (vi) has purchased the Shares for its own account and not for the account or benefit of any U.S. Person, (vii) is the sole beneficial owner of the Shares specified on Annex A opposite his name and has not pre-arranged any sale with a purchaser in the United States, and (ix) is familiar with and understands the terms and conditions and requirements contained in Regulation S, specifically, without limitation, each Investor understands that the statutory basis for the exemption claimed for the sale of the Shares would not be present if the sale, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the Securities Act.

10

The Company acknowledges and agrees that no Investor has made or makes any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.2.

ARTICLE 4.

OTHER AGREEMENTS OF THE PARTIES

4.1.

Compliance with Securities Laws.

 

(a)

Shares may only be disposed of in compliance with state and federal securities laws.  In connection with any transfer of the Shares, other than pursuant to an effective registration statement, pursuant to Rule 144, or to the Company, to an Affiliate of an Investor or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Shares under the Securities Act.  Notwithstanding the foregoing, the Company hereby consents to and agrees to register on the books of the Company and with its transfer agent, without any such legal opinion, any transfer of Shares by an Investor to an Affiliate of such Investor, provided that the transferee certifies to the Company that it is an “accredited investor” as defined in Rule 501(a) under the Securities Act and provided that such Affiliate does not request any removal of any existing legends on any certificate evidencing the Shares.

(b)

Certificates evidencing the Shares will contain the following legend, until such time as they are not required under Section 4.1(c):

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

11

The Company acknowledges and agrees that an Investor may from time to time pledge, and/or grant a security interest in some or all of the Shares pursuant to a bona fide margin agreement in connection with a bona fide margin account and, if required under the terms of such agreement or account, such Investor may transfer pledged or secured Shares to the pledgees or secured parties.  Such a pledge or transfer would not be subject to approval or consent of the Company and no legal opinion of legal counsel to the pledgee, secured party or pledgor shall be required in connection with the pledge, but such legal opinion may be required in connection with a subsequent transfer following default by the Investor transferee of the pledge.  No notice shall be required of such pledge.  At the appropriate Investor’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Shares may reasonably request in connection with a pledge or transfer of the Shares including the preparation and filing of any required prospectus supplement under Rule 424(b)(3) of the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder.  Except as otherwise provided in Section 4.1(c), any Shares subject to a pledge or security interest as contemplated by this Section 4.1(b) shall continue to bear the legend set forth in this Section 4.1(b) and be subject to the restrictions on transfer set forth in Section 4.1(a).

(c)

Certificates evidencing Shares shall not contain any legend (including the legend set forth in Section 4.1(b)):
 

(i)

following a sale or transfer of such Shares pursuant to an effective registration statement, or
 

(ii)

following a sale or transfer of such Shares pursuant to Rule 144 (assuming the transferee is not an Affiliate of the Company), or
 

(iii)

while such Shares are eligible for sale under Rule 144 without restriction.

4.2.

Registration Obligation.

(a)

The Company shall file a registration statement as soon as commercially reasonable, but in any event within forty-five (45) days, on Form S-1, or such other form that is appropriate, covering the resale of the Shares (the “Registrable Securities”).  The Company will use commercially reasonable efforts to cause such registration statement to become effective within one hundred thirty-five (135) days of its initial filing.

(b)

If at any time prior to the one (1) year anniversary of the Closing Date, the Company or any stockholder of the Company proposes to register any of its Common Stock or any securities convertible into Common Stock under the Securities Act (other than pursuant to an offering of securities in connection with an employee benefit, share dividend, share ownership or dividend reinvestment plan or registration of securities in connection with a business combination transaction) and the registration form to be used may be used by the Company for the registration of the Registrable Securities, the Company shall give prompt written notice to the Investors of its intention to effect such a registration and shall, if commercially practicable, include in such registration statement all Registrable Securities with respect to which the Company has received written request from the Investors for inclusion therein within ten (10) days after the date of sending of such notice to the Investors.

12

(c)

In connection with any registration, the Company will:

(i)

prepare and file with the Commission a registration statement in a commercially reasonable time with respect to such securities and use its commercially reasonable efforts to cause such registration statement to become and remain effective for a period of time required for the disposition of such securities by the Investors;

(ii)

prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the sale or other disposition of all securities covered by such registration statement until the such time as all of such securities have been disposed of in a public offering;

(iii)

furnish to the Investors such number of copies of a summary prospectus or other prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents, as the Investors may reasonably request;

(iv)

register or qualify the securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions within the United States and Puerto Rico as the Investors shall reasonably request (provided, however, that it shall not be obligated to qualify as a foreign corporation to do business under the laws of any jurisdiction in which it is not then qualified or to file any general consent to service or process);

(v)

furnish, at the request of the Investors, a legal opinion of the counsel representing the Company for the purposes of such registration, addressed to the Investors, in customary form and covering matters of the type customarily covered in such legal opinions;

(vi)

otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, but not later than eighteen (18) months after the effective date of such registration statement, an earnings statement covering the period of at least twelve (12) months beginning with the first full month after the effective date of such registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act;

(vii)

notify the Investors, at any time when the offering documents include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and at the request of the Investors, prepare and furnish to such person(s) such reasonable number of copies of any amendment or supplement to the offering documents as may be necessary so that, as thereafter delivered to the Investors of such shares, such offering documents shall not include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and to deliver to Investors of any other securities of the Company included in the offering copies of such offering documents as so amended or supplemented;

13

(viii)

keep the Investors informed of the Company’s best estimate of the earliest date on which the offering documents will become effective, and promptly notify the Investors of (A) the effectiveness of such offering documents, (B) a request by the Commission for an amendment or supplement to such offering documents, (C) the issuance by the Commission of an order suspending the effectiveness of the offering documents, or of the threat of any proceeding for that purpose, and (D) the suspension of the qualification of any securities to be included in the offering documents for sale in any jurisdiction or the initiation or threat of any proceeding for that purpose; and

(ix)

before filing any offering documents (including any documents incorporated by reference therein), the Company shall furnish to one counsel, if any, designated by the Investors, copies of all such offering documents, which offering documents shall be subject to the review of such counsel and, where feasible, the Company shall make such changes in the offering documents as are reasonably requested by such counsel.

(d)

All registrations (piggyback or otherwise) made by the Investors will be made solely at the Company’s expense, other than (i) if an underwritten offering is consented to by the Company, the underwriters’, broker-dealers’ and placement agents’ selling discounts, commissions and fees relating to the sale of the Investors’ securities, (ii) any costs and expenses of counsel, accountants or other advisors retained by the Investors and (iii) all transfer, franchise, capital stock and other taxes, if any, applicable to the Investors’ securities which shall be paid by the Investors.

(e)

In the event of any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company shall indemnify and hold harmless each Investor holding such Registrable Securities, such Investor's directors and officers, and each other person (including each underwriter) who participated in the offering of such Registrable Securities and each other person, if any, who controls such Investor or such participating person within the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such Investor or any such director or officer or participating person or controlling person may become subject under the Securities Act or any other statute or at common law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or any alleged untrue statement of any material fact contained, on the effective date thereof, in any registration statement under which such securities were registered under the Securities Act, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto, (ii) any omission or any alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any other violation of any applicable securities laws, and in each of the foregoing circumstances shall reimburse such Investor or such director, officer or participating person or controlling person for any legal or any other expenses reasonably incurred by such Investor or such director, officer or participating person or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any actual or alleged untrue statement or actual or alleged omission made in such registration statement, preliminary prospectus, prospectus or amendment or supplement in reliance upon and in conformity with written information furnished to the Company by such Investor specifically for use therein.  

14

(f)

In the event of any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, each Investor holding Registrable Securities agrees to indemnify and hold harmless the Company, its directors and officers and each other person, if any, who controls the Company within the meaning of the Securities Act and any other Investor against any losses, claims, damages or liabilities, joint or several, to which the Company or any such director or officer or any such person may become subject under the Securities Act or any other statute or at common law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or any alleged untrue statement of any material fact contained, on the effective date thereof, in any registration statement under which such securities were registered under the Securities Act, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto, or (ii) any omission or any alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but in either case only to the extent that such untrue statement or omission is (A) made in reliance on and in conformity with any information furnished in writing by such Investor to the Company concerning such Investor specifically for inclusion in the offering documents relating to such offering, and (B) is not corrected by such Investor and distributed to the Investors within a reasonable period of time.  Notwithstanding the provisions of this Section 4.2(f), no Investor shall be required to indemnify any person pursuant to this Section 4.2(f) or to contribute pursuant to Section 4.2(g) below in an amount in excess of the amount of the aggregate net proceeds received by such Investor in connection with any such registration under the Securities Act.

(g)

If the indemnification provided for above from the indemnifying party is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified parties in connection with the actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.  The relative fault of such indemnifying party and indemnified parties shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified parties, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action.  The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding.  The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 4.3(g) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

15

(h)

In order to permit the Investors to sell the Registrable Securities, if so desired, pursuant to any applicable resale exemption under applicable securities laws and regulations, the Company shall:

(i)

comply with all rules and regulations of the Commission in connection with use of any such resale exemption;

(ii)

make and keep available adequate and current public information regarding the Company;

(iii)

file with the Commission in a timely manner, all reports and other documents required to be filed under the Securities Act, the Exchange Act, or other applicable securities laws and regulations;

(iv)

furnish to the Investors copies of annual reports required to be filed under the Exchange Act and other applicable securities laws and regulations; and

(v)

furnish to the Investors, upon written request (A) a copy of the most recent quarterly report of the Company and such other reports and documents filed by the Company with the Commission and (B) such other information as may be reasonably required to permit the Investors to sell pursuant to any applicable resale exemption under the Securities Act or other applicable securities law and regulations, if any.

(i)

All rights of the Investors under this Section 4.2 are unique to and limited to the Investors and may not be transferred or inure to the benefit of the Investors’ successors and assigns or any other transferee who obtains Registrable Securities.

4.3.

Integration.  The Company shall not, and shall use its best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the sale of the Shares to the Investors, or that would be integrated with the offer or sale of the Shares for purposes of the rules and regulations of any Trading Market in a manner that would require stockholder approval of the sale of the securities to the Investors.

4.4.

Publicity.  The Company may issue press releases disclosing the transactions contemplated hereby and the Closing.  In addition, the Company will make such filings and notices in the manner and time required by the Commission.

4.5.

Use of Proceeds.  The Company will use the net proceeds from the sale of the Shares hereunder for working capital purposes, acquisitions and/or capital expenditures.

ARTICLE 5.

CONDITIONS PRECEDENT TO CLOSING

5.1.

Conditions Precedent to the Obligations of the Investors to Purchase Shares.  The obligation of each Investor to acquire Shares at the Closing is subject to the satisfaction or waiver by such Investor, at or before the Closing, of each of the following conditions:

16

(a)

Representations and Warranties.  The representations and warranties of the Company contained herein shall be true and correct in all material respects as of the date when made and as of the Closing as though made on and as of such date;

(b)

Performance.  The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Closing;

(c)

No Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents;

(d)

Adverse Changes.  Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably could have or result in a Material Adverse Effect;

(e)

Company Deliverables.  The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a);
 

(f)

Opinion of Company Counsel.  The Investors shall have received an opinion of counsel to the Company in form and substance reasonably satisfactory to the Investors;

(g)

Waiver.  The Company shall have received a waiver of any and all rights of first refusal applicable to the transactions contemplated hereby; and

(h)

Termination.  This Agreement shall not have been terminated as to such Investor in accordance with Section 6.5.

5.2.

Conditions Precedent to the Obligations of the Company to sell Shares.  The obligation of the Company to sell Shares at the Closing is subject to the satisfaction or waiver by the Company, at or before the Closing, of each of the following conditions:

(a)

Representations and Warranties.  The representations and warranties of each Investor contained herein shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made on and as of such date;

(b)

Performance.  Each Investor shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Investor at or prior to the Closing;

(c)

No Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents;
 

17

(d)

Investors Deliverables.  Each Investor shall have delivered its Investors Deliverables in accordance with Section 2.2(b);
 

(e)

Waiver.  The Company shall have received a waiver of any and all rights of first refusal applicable to the transactions contemplated hereby; and

(f)

Termination.  This Agreement shall not have been terminated as to such Investor in accordance with Section 6.5.

ARTICLE 6.

MISCELLANEOUS

6.1.

Fees and Expenses.  Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of the Transaction Documents.  The Company shall pay all stamp and other taxes and duties levied in connection with the issuance and/or transfer of the Shares.

6.2.

Entire Agreement.  The Transaction Documents, together with the Exhibits and Schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

6.3.

Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile (provided the sender receives a machine-generated confirmation of successful transmission) at the facsimile number specified in this Section prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as follows:

If to the Company:

SMSA III Acquisition Corp.

c/o Sunset Suits S.A.

Ul. Garbary 57

 

61-758 Poznań

Poland

Facsimile: 48-61-642-4053

Attention:  Mr. Mirosław Kranik

With a copy to:

Thelen Reid Brown Raysman & Steiner LLP

701 8th Street NW

Washington, D.C. 20001

Facsimile:  (202) 508-4321

Attn.:  Louis A. Bevilacqua, Esq.

 

18

 

If to an Investor:

To the address set forth under such Investor’s name on the signature pages hereof;

or such other address as may be designated in writing hereafter, in the same manner, by such Person.

6.4.

Amendments; Waivers; No Additional Consideration.  No provision of this Agreement may be waived or amended except in a written instrument signed by the Company and the Investors holding a majority of the Shares subscribed for by Investors (excluding any Investors that are Affiliates of the Company).  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.  No consideration shall be offered or paid to any Investor to amend or consent to a waiver or modification of any provision of any Transaction Document unless the same consideration is also offered to all Investors who then hold Shares.

6.5.

Termination.  This Agreement may be terminated prior to Closing:

(a)

by written agreement of an Investor (as to itself but no other Investor) and the Company; or

(b)

by the Company or an Investor (as to itself but no other Investor) upon written notice to the other, if the Closing shall not have taken place by 6:30 p.m. Eastern time on the Outside Date; provided, that the right to terminate this Agreement under this Section 6.5(b) shall not be available to any Person whose failure to comply with its obligations under this Agreement has been the cause of or resulted in the failure of the Closing to occur on or before such time.

In the event of a termination pursuant to this Section, the Company shall promptly notify all non-terminating Investors.  Upon a termination in accordance with this Section 6.5, the Company and the terminating Investor(s) shall not have any further obligation or liability (including as arising from such termination) to the other and no Investor will have any liability to any other Investor under the Transaction Documents as a result therefrom.  

6.6.

Construction; Interpretation.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.  This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents.  The words “including,” “include” and other words of similar import shall be deemed to be followed by the words “without limitation.”

19

6.7.

Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investors.  Any Investor may assign any or all of its rights under this Agreement to any Person to whom such Investor assigns or transfers any Shares, provided such transferee agrees in writing to be bound, with respect to the transferred Shares, by the provisions hereof that apply to the Investors.

6.8.

No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

6.9.

Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.  Each party agrees that all Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the New York Courts.  Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any such New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum.  Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.  If either party shall commence a Proceeding to enforce any provisions of a Transaction Document, then the prevailing party in such Proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding.

6.10.

No Survival.  The representations, warranties, agreements and covenants contained herein shall not survive the Closing and the delivery of the Shares.

6.11.

Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

20

6.12.

Severability.  If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

6.13.

Replacement of Shares.  If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested.  The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares.  If a replacement certificate or instrument evidencing any Shares is requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement.

6.14.

Independent Nature of Investors’ Obligations and Rights.  The obligations of each Investor under any Transaction Document are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under any Transaction Document.  The decision of each Investor to purchase Shares pursuant to the Transaction Documents has been made by such Investor independently of any other Investor.  Nothing contained herein or in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.  Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment hereunder and that no Investor will be acting as agent of such Investor in connection with monitoring its investment in the Shares or enforcing its rights under the Transaction Documents.  Each Investor shall be entitled to independently protect and enforce its rights, including the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose.  The Company acknowledges that each of the Investors has been provided with the same Transaction Documents for the purpose of closing a transaction with multiple Investors and not because it was required or requested to do so by any Investor.

6.15.

Foreign Language Translation.  This Agreement is being executed both in English and in a foreign language.  If any ambiguity or vagueness arises between the English language version and the foreign language version or if there is any inconsistency or conflict between the two versions, the English language version will control.

21

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

  	SMSA III ACQUISITION CORP.
	 
	
      By:
	
      Name: Mirosław
      Kranik
	Title: Chief Executive Officer
      and President

 

 

[SIGNATURE PAGES FOR INVESTORS FOLLOW]

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

  	NAME OF INVESTOR
	 
	 
	 
	
      By:
	
      Name:
	Title:
	
      Investment Amount: $
	 
	
      Tax ID No.:
	 
	ADDRESS FOR NOTICE
	
      c/o:
	
      Street:
	
      City/State/Zip:
	
      Attention:
	
      Tel:
	
      Fax:
	 
	DELIVERY INSTRUCTIONS
	     
      (if different from above)
	
      c/o:
	
      Street:
	
      City/State/Zip:
	
      Attention:
	
      Tel:

Annex A

Schedule of Buyers

  
	
  
  Name and Address

	
  
  Investment Amount ($)

	
  
  Allocation Shares

	
  
  ALPEX Sp. z.o.o.

Parkowa 8  

58-302 Wałbrzych  

Poland  

	
  
  295,000

	
  
  94,551

	
  
  Frantisek Ampapa

V Zatiší 298/9  

58601 Jihlava 1  

Czech Republic

	
  
  200,000

	
  
  64,103

	
  
  Jerzy Andrzejak

Polna 20  

Wolsztyn 64-200  

Poland

	
  
  200,000

	
  
  64,103

	
  
  Lajos Bako

Sertekapu u. 24  

3300 Eger  

Hungary

	
  
  200,000

	
  
  64,103

	
  
  Ladislav Bobiš

Robotnická 16  

831 03 Bratislava  

Slovakia

	
  
  201,010

	
  
  64,426

	
  
  Jan Bürger

Kněžská 4/418  

370 01 České Budějovice  

Czech Republic

	
  
  300,000

	
  
  96,154

	
  
  Krzysztof Busma

ul. Konduktorska 3B/29

Warszawa 00-775

Poland

	
  
  50,000

	
  
  16,026

	
  
  Carmentia Finance Limited

Revoluční 13

Praha 1

Czech Republic

	
  
  250,000

	
  
  80,128

	
  
  Irena Olimpia Chlebicka

Gwarecka 25/1

Ruda Slaska 41-705

Poland

	
  
  50,000

	
  
  16,026

	
   	
   	
   

  

 

  
	
  
  Name and Address	
  
  Investment Amount ($)
	
  
  Allocation Shares

	
  
  Juraj Dančišin

Opatovská Cesta 25A  

040 01 Košice   

Slovakia

	
  
  150,000

	
  
  48,077

	
  
  Dana Danková

Na Neklamce 16  

Praha 5  

Czech Republic

	
  
  400,000

	
  
  128,205

	
  
  György Darida

Petofi Sándor utca 13

Szarvas 5540

Hungary

	
  
  400,000

	
  
  128,205

	
  
  Zbigniew Demidowicz

Wyganowska 18H  

03-085 Warszawa  

Poland

	
  
  100,000

	
  
  32,051

	
  
  László Dudás

Szadai út. 2

Veresegyhaz 2112

Hungary

	
  
  245,000

	
  
  78,526

	
  
  Érdi Ferenc

Mohái út 18  

1113 Budapest  

Hungary

	
  
  200,000

	
  
  64,103

	
  
  Zdeněk Hochman

Jůzlova 3629  

Havlíčkův Brod  

Czech Republic

	
  
  200,000

	
  
  64,103

	
  
  Karel Hruška

Rejskova 2369/11  

Praha 2  

Czech Republic

	
  
  200,000

	
  
  64,103

	
  
  Krzysztof Kaczmarek

Jagodowa 49  

62-090 Rokietnica-Bytkowo  

Poland

	
  
  130,000

	
  
  41,667

	
   	
   	
   

  

  
	
   	
   	
   
	
  
  Name and Address	
  
  Investment Amount ($)
	
  
  Allocation Shares

	
  
  Bogusław Kajdrys

Zielona 25E  

05-092 Łomianki  

Poland

	
  
  200,000

	
  
  64,103

	
  
  Kapp-Kapital EST.

Boglárka u.1  

5000 Szolnok  

Hungary

	
  
  400,000

	
  
  128,205

	
  
  Zygmunt Karski

Podmiejska 19  

01-498 Warszawa  

Poland

	
  
  370,000

	
  
  118,590

	
  
  Sławomir Konarski

Žyrardow 96-300  

Browarna 2  

Poland

	
  
  200,000

	
  
  64,103

	
  
  Gábor Kormos

Petofi u.8

Sajosenye 3712

Hungary

	
  
  200,000

	
  
  64,103

	
  
  József Kovács

Templom u. 6  

H-8600 Siófok   

Hungary

	
  
  150,000

	
  
  48,077

	
  
  Sławomir Krakowiak

Jarocin 123  

37-405 Jarocin  

Poland

	
  
  180,000

	
  
  57,692

	
  
  Henryk Krauzy

Pod Lasem 79

44-210 Rybnik  

Poland

	
  
  200,000

	
  
  64,103

	
  
  Zbigniew Kreczko

Puncowska 134 B  

Cieszyn 43-400  

Poland

	
  
  100,000

	
  
  32,051

	
   	
   	
   

  

  
	
   	
   	
   
	
  
  Name and Address	
  
  Investment Amount ($)
	
  
  Allocation Shares

	
  
  KROC Kft.

Hüvösvölgyi út 18

Budapest 1021

Hungary

	
  
  200,000

	
  
  64,103

	
  
  Janusz Krzesinski

Krakowska 49  

268 00 Bialobrzegi  

Poland

	
  
  200,000

	
  
  64,103

	
  
  Krzysztof Krzyczkowski

Ks. Piotra Skargi 10

Legionowo 05-120

Poland

	
  
  85,000

	
  
  27,244

	
  
  Lubomír Kubánek

Veternó 4  

926 01 Sereď   

Slovakia

	
  
  240,000

	
  
  76,923

	
  
  Jaroslava Kubešová

Janáčkova 719  

513 01 Semily 1  

Czech Republic

	
  
  195,000

	
  
  62,500

	
  
  Jarosław Lazur

Lustrzana 6  

13-420 Warszawa  

Poland

	
  
  200,000

	
  
  64,103

	
  
  Vladimír Lein

Václavské nám. 48  

Praha 1  

Czech Republic

	
  
  200,000

	
  
  64,103

	
  
  Tomasz Lewandowski

Niepodległości 15/11  

14-200 Iława   

Poland

	
  
  210,000

	
  
  67,308

	
  
  Wojciech Lis

Kalinowszczyna 12/19  

Lublin 20-129  

Poland

	
  
  100,000

	
  
  32,051

	
   	
   	
   

  

  
	
   	
   	
   
	
  
  Name and Address	
  
  Investment Amount ($)
	
  
  Allocation Shares

	
  
  Jan Liszkiewicz

Wielicka 91/37  

30-552 Kraków  

Poland

	
  
  150,000

	
  
  48,077

	
  
  Artur Piotr Maciejczyk

Jana Kochanowskiego 23/A  

Radom 26-600  

Poland

	
  
  50,000

	
  
  16,026

	
  
  Rostislav Mareček

Komenského 536/28  

350 02 Cheb  

Czech Republic

	
  
  793,000

	
  
  254,167

	
  
  Vladimír Matejčík

Tajov 221

976 34 Tajov

Slovakia

	
  
  145,000

	
  
  46,474

	
  
  Ksawery Najda

Kochanowskiego 57/8  

43-410 Zebrzydowice   

Poland

	
  
  340,000

	
  
  108,974

	
  
  Rudolf Očenáš

Polǒvnícka 10  

974 06 Banská Bystrica  

Slovakia

	
  
  150,000

	
  
  48,077

	
  
  Marian Okoń

Sobieskiego 62  

05-520 Konstancin Jeziorna  

Poland

	
  
  100,000

	
  
  32,051

	
  
  Marcin Osiadacz

Słowackiego 23  

Kozienice 26-900  

Poland

	
  
  50,000

	
  
  16,026

	
  
  Jan Padrnos

Podlužanská 1875  

19016 Praha 9  

Czech Republic

	
  
  196,000

	
  
  62,821

	
   	
   	
   

  

  
	
   	
   	
   
	
  
  Name and Address	
  
  Investment Amount ($)
	
  
  Allocation Shares

	
  
  Eugeniusz Paprota

Kasztanowa 27

Miedzyrzec Podl 21-560

Poland

	
  
  120,000

	
  
  38,462

	
  
  Peter Pavlo

Kuzmányho  21  

040 01 Košice   

Slovakia

	
  
  250,000

	
  
  80,128

	
  
  Pavel Pěkný

Trojanova 16  

120 00 Praha 2  

Czech Republic

	
  
  150,000

	
  
  48,077

	
  
  Štefan Petergáč

Matejkova 28  

841 05 Bratislava  

Slovakia

	
  
  280,000

	
  
  89,744

	
  
  Slawomir Andrzej Piecka

Modrzewiowa 4 A  

94-020 Płock  

Poland

	
  
  300,000

	
  
  96,154

	
  
  Ivan Plichta

Zg. Vrbického 4291/18  

03101 Lipt.Mikuláš  

Slovakia

	
  
  449,990

	
  
  144,228

	
  
  Pavol Polakovič

Palkovičova  245/11  

821 08 Bratislava  

Slovakia

	
  
  150,000

	
  
  48,077

	
  
  Zbigniew Polatyński

Stokłosy 7m4  

02-787 Warszawa  

Poland

	
  
  200,000

	
  
  64,103

	
  
  Roland Sebestyen

Viola köz 2  

2336 Budapest  

Hungary

	
  
  200,000

	
  
  64,103

	
   	
   	
   

  

  
	
   	
   	
   
	
  
  Name and Address	
  
  Investment Amount ($)
	
  
  Allocation Shares

	
  
  Martin Šedivý

K Habrovce 669/7  

140 00 Praha 4  

Czech Republic

	
  
  200,000

	
  
  64,103

	
  
  Stanislav Šíma

Novy Malin 623

Novy Malin 788 03

Czech Republic

	
  
  250,000

	
  
  80,128

	
  
  František Šimka

Police 127

675 34 Police u Jemnice

Czech Republic

	
  
  50,000

	
  
  16,026

	
  
  František Šlehofer

Milevská 1105/22  

140 00 Praha 4  

Czech Republic

	
  
  180,000

	
  
  57,692

	
  
  SOFT ELEKTRONIK S.P. z.o.o.

ul. Jagiellonska 67  

70-382 Szczecin  

Poland

	
  
  750,000

	
  
  240,385

	
  
  Wojciech Strep

Górna 13  

21-560 Miedzyrzec Podlaski  

Poland

	
  
  200,000

	
  
  64,103

	
  
  Petr Švejnoha

Plzenska 213

150 00 Praha 5

Czech Republic

	
  
  250,000

	
  
  80,128

	
  
  Małgorzata Świetosławska

Długoszyńska 26 D  

43-605 Jaworzno  

Poland

	
  
  1,000,000

	
  
  320,513

	
  
  Daniusz Szaraniec

Przyjaźni 10  

26-910 Magnuszew

Poland

	
  
  150,000

	
  
  48,077

	
   	
   	
   

  

  
	
   	
   	
   
	
  
  Name and Address	
  
  Investment Amount ($)
	
  
  Allocation Shares

	
  
  Karel Sztogrýn

Marie Cibulkové 342/36

140 00 Praha 4  

Czech Republic

	
  
  150,000

	
  
  48,077

	
  
  Henryk Szubstarski

Jana Pawła II 16/53

14-100 Ostróda  

Poland

	
  
  50,000

	
  
  16,026

	
  
  Małgorzata Szymańska

Surowieckiego W. 4m27  

02-785 Warszawa  

Poland

	
  
  195,000

	
  
  62,500

	
  
  Wacław Tomaszewski

Platev 19-21  

85-664 Bydgoszcz  

Poland

	
  
  200,000

	
  
  64,103

	
  
  Trídens KFT.

Tínódí n.40  

4030 Debrecen  

Hungary

	
  
  300,000

	
  
  96,154

	
  
  Krzystof Paweł Urbaniec

Wesoła 9  

42-240 Rudniki  

Poland

	
  
  100,000

	
  
  32,051

	
  
  Béla Varga

Attila u. 17  

3170 Szécsény

Hungary

	
  
  200,000

	
  
  64,103

	
  
  Štefan Vodný

Pod Záhradami 2455/62  

841 02 Bratislava  

Slovakia

	
  
  300,000

	
  
  96,154

	
  
  TOTALS:

	
  
  $16,000,000.00  

	
  
  5,128,217

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]