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Nutrastar International Inc.: Exhibit 10.3 - Filed by newsfilecorp.com

Exhibit 10.3 

NUTRASTAR INTERNATIONAL INC.

2009 EQUITY INCENTIVE PLAN 

NOTICE OF RESTRICTED SHARES GRANT 

Capitalized but otherwise undefined terms in this Notice of
Restricted Shares Grant and the attached Restricted Shares Grant Agreement shall
have the same defined meanings as in the Nutrastar International Inc. 2009
Equity Incentive Plan (the “Plan”). 

	Grantee Name: 	Richard E. Fearon, Jr. 
	 	 
	Address: 	 
    

You have been granted Restricted Shares subject to the terms
and conditions of the Plan and the attached Restricted Shares Grant Agreement,
as follows: 

	 	Date of Grant: 	November 26, 2012 
	 	Vesting Commencement Date: 	November 26, 2012 
	 	Exercise Price Per Share: 	$0.00
    
	 	Total Number of Shares Granted:
    	20,000
      shares 
	 	Total Purchase Price: 	$0.00
    
	 	Agreement Date: 	November 26, 2012 
	 	Vesting Schedule: 	as
      follows 

The Restricted Share vests under the following schedule:

	Number
      of Shares 	 	Vesting Date 
	5,000 	 	February 15, 2013
  
	5,000 	 	August 15, 2013 
	5,000 	 	February 15, 2014
  
	5,000 	 	August 15, 2014

NUTRASTAR INTERNATIONAL INC. 
2009 EQUITY INCENTIVE PLAN

RESTRICTED SHARES GRANT AGREEMENT 

This RESTRICTED SHARES GRANT AGREEMENT
(“Agreement”), dated as of the Agreement Date specified on the Notice of
Restricted Shares Grant is made by and between NUTRASTAR INTERNATIONAL INC., a
Nevada corporation (the “Company”), and the grantee named in the Notice of
Restricted Shares Grant (the “Grantee,” which term as used herein shall
be deemed to include any successor to Grantee by will or by the laws of descent
and distribution, unless the context shall otherwise require). 

BACKGROUND 

Pursuant to the Plan, the Company, acting through the
Administrator, approved the issuance to Grantee, effective as of the date set
forth above, of an award of the number of Restricted Shares as is set forth in
the attached Notice of Restricted Shares Grant (which is expressly incorporated
herein and made a part hereof, the “Notice of Restricted Shares Grant”) at the
purchase price per share of Restricted Shares (the “Purchase Price”), if any,
set forth in the attached Notice of Restricted Shares Grant, upon the terms and
conditions hereinafter set forth. 

NOW, THEREFORE, in consideration of the mutual premises
and undertakings hereinafter set forth, the parties agree as follows: 1.
Grant and Purchase of Restricted Shares. The Company hereby grants
to Grantee, and Grantee hereby accepts the number of Restricted Shares set forth
in the Notice of Restricted Shares Grant, subject to the payment by Grantee of
the total purchase price, if any, set forth in the Notice of Restricted Shares
Grant.

2. Stockholder Rights. 

(a) Voting Rights. Until such time as all or any part of
the Restricted Shares are forfeited to the Company under this Agreement, if
ever, Grantee (or any successor in interest) has the rights of a stockholder,
including voting rights, with respect to the Restricted Shares subject, however,
to the transfer restrictions or any other restrictions set forth in the
Plan.

(b) Dividends and Other Distributions. During the Period
of Restriction, Participants holding Restricted Shares are entitled to all
regular cash dividends or other distributions paid with respect to all Shares
while they are so held. If any such dividends or distributions are paid in
Shares, such Shares will be subject to the same restrictions on transferability
and forfeitability as the Restricted Shares with respect to which they were
paid.

2 

3. Vesting of Restricted Shares. 

(a) The Restricted Shares are restricted and subject to
forfeiture until vested. The Restricted Shares which have vested and are no
longer subject to forfeiture are referred to as “Vested Shares.” All Restricted
Shares which have not become Vested Shares are referred to as “Nonvested
Shares.” 

(b) Restricted Shares will vest and become nonforfeitable in
accordance with the vesting schedule contained in the Notice of Restricted
Shares Grant except that 100% of Grantee’s Nonvested Shares will vest in full
upon a Change of Control. 

(c) Definitions. Terms used in section 3 and 4 have the
following meanings: 

(i) “Cause” has the meaning ascribed to such term or words of
similar import in Grantee’s written employment or service contract with the
Company or its subsidiaries and, in the absence of such agreement or definition,
means Grantee’s (i) conviction of, or plea of nolo contendere to, a felony or
crime involving moral turpitude; (ii) fraud on or misappropriation of any funds
or property of the Company or its subsidiaries, or any affiliate, customer or
vendor; (iii) personal dishonesty, incompetence, willful misconduct, willful
violation of any law, rule or regulation (other than minor traffic violations or
similar offenses), or breach of fiduciary duty which involves personal profit;
(iv) willful misconduct in connection with Grantee’s duties or willful failure
to perform Grantee’s responsibilities in the best interests of the Company or
its subsidiaries; (v) illegal use or distribution of drugs; (vi) violation of
any written rule, regulation, procedure or policy of the Company or its
subsidiaries; which is disclosed to Grantee; or (vii) breach of any provision of
any employment, non-disclosure, non-competition, non-solicitation or other
similar agreement executed by Grantee for the benefit of the Company or its
subsidiaries, all as determined by the Board of Directors of the Company, which
determination will be conclusive.

(ii) “Retirement” means Grantee’s retirement from Company
employ at age 65 as determined in accordance with the policies of the Company or
its subsidiaries in good faith by the Board of Directors of the Company, which
determination will be final and binding on all parties concerned. 

(d) Nonvested Shares may not be sold, transferred, assigned,
pledged, or otherwise disposed of, directly or indirectly, whether by operation
of law or otherwise. The restrictions set forth in this Section will terminate
upon a Change of Control. 

4. Forfeiture of Nonvested Shares. Except as
provided herein, if Grantee's service with the Company ceases for any reason
other than Grantee’s (a) death, (b) Disability, (c) Retirement, or (d)
termination by the Company without Cause, any Nonvested Shares will be
automatically forfeited to the Company, subject to the re-payment by the Company
at the lesser of (1) the original purchase price paid by the Participant
pursuant to the Award Agreement or (2) the Shares’ Fair Market Value on the date
of repurchase. 

(a) Legend. Each certificate representing Restricted
Shares granted pursuant to the Notice of Restricted Shares Grant may bear a
legend substantially as follows: 

3 

“THE SALE OR OTHER TRANSFER OF THE SHARES REPRESENTED BY THIS
CERTIFICATE, WHETHER VOLUNTARY, INVOLUNTARY OR BY OPERATION OF LAW, IS SUBJECT
TO CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN THE NUTRASTAR INTERNATIONAL
INC. 2009 EQUITY INCENTIVE PLAN AND IN A RESTRICTED SHARE GRANT AGREEMENT. A
COPY OF SUCH PLAN AND SUCH AGREEMENT MAY BE OBTAINED FROM NUTRASTAR
INTERNATIONAL INC.” 

(b) Escrow of Nonvested Shares. The Company has the
right to retain the certificates representing Nonvested Shares in the Company’s
possession until such time as all restrictions applicable to such Shares have
been satisfied. 

(c) Removal of Restrictions. The Participant is entitled
to have the legend removed from certificates representing Vested Shares. 

5. Recapitalizations, Exchanges, Mergers, Etc.
The provisions of this Agreement apply to the full extent set forth
herein with respect to any and all shares of capital stock of the Company or
successor of the Company which may be issued in respect of, in exchange for, or
in substitution for the Restricted Shares by reason of any stock dividend,
split, reverse split, combination, recapitalization, reclassification, merger,
consolidation or otherwise which does not terminate this Agreement. Except as
otherwise provided herein, this Agreement is not intended to confer upon any
other person except the parties hereto any rights or remedies hereunder. 

6. Grantee Representations. 

Grantee represents to the Company the following: 

(a) Restrictions on Transfer. Grantee acknowledges that
the Restricted Shares to be issued to Grantee must be held indefinitely unless
subsequently registered and qualified under the Securities Act or unless an
exemption from registration and qualification is otherwise available. In
addition, Grantee understands that the certificate representing the Restricted
Shares will be imprinted with a legend which prohibits the transfer of such
Restricted Shares unless they are sold in a transaction in compliance with the
Securities Act or are registered and qualified or such registration and
qualification are not required in the opinion of counsel acceptable to the
Company. 

(b) Relationship to the Company; Experience. Grantee
either has a preexisting business or personal relationship with the Company or
any of its officers, directors or controlling persons or, by reason of Grantee’s
business or financial experience or the business or financial experience of
Grantee’s personal representative(s), if any, who are unaffiliated with and who
are not compensated by the Company or any affiliate or selling agent, directly
or indirectly, has the capacity to protect Grantee’s own interests in connection
with Grantee’s acquisition of the Restricted Shares to be issued to Grantee
hereunder. Grantee and/or Grantee’s personal representative(s) have such
knowledge and experience in financial, tax and business matters to enable Grantee and/or them to utilize the information made
available to Grantee and/or them in connection with the acquisition of the
Restricted Shares to evaluate the merits and risks of the prospective investment
and to make an informed investment decision with respect thereto.

4 

(c) Grantee’s Liquidity. In reaching the decision to
invest in the Restricted Shares, Grantee has carefully evaluated Grantee’s
financial resources and investment position and the risks associated with this
investment, and Grantee acknowledges that Grantee is able to bear the economic
risks of the investment. Grantee (i) has adequate means of providing for
Grantee’s current needs and possible personal contingencies, (ii) has no need
for liquidity in Grantee’s investment, (iii) is able to bear the substantial
economic risks of an investment in the Restricted Shares for an indefinite
period and (iv) at the present time, can afford a complete loss of such
investment. Grantee’s commitment to investments which are not readily marketable
is not disproportionate to Grantee’s net worth and Grantee’s investment in the
Restricted Shares will not cause Grantee’s overall commitment to become
excessive. 

(d) Access to Data. Grantee acknowledges that during the
course of this transaction and before deciding to acquire the Restricted Shares,
Grantee has been provided with financial and other written information about the
Company. Grantee has been given the opportunity by the Company to obtain any
information and ask questions concerning the Company, the Restricted Shares, and
Grantee’s investment that Grantee felt necessary; and to the extent Grantee
availed himself of that opportunity, Grantee has received satisfactory
information and answers concerning the business and financial condition of the
Company in response to all inquiries in respect thereof. 

(e) Risks. Grantee acknowledges and understands that (i)
an investment in the Company constitutes a high risk, (ii) the Restricted Shares
are highly speculative, and (iii) there can be no assurance as to what
investment return, if any, there may be. Grantee is aware that the Company may
issue additional securities in the future which could result in the dilution of
Grantee’s ownership interest in the Company. 

(f) Valid Agreement. This Agreement when executed and
delivered by Grantee will constitute a valid and legally binding obligation of
Grantee which is enforceable in accordance with its terms. 

(g) Residence. The address set forth on the Notice of
Restricted Shares Grant is Grantee’s current address and accurately sets forth
Grantee’s place of residence. 

(h) Tax Consequences. Grantee has reviewed with
Grantee’s own tax advisors the federal, state, local and foreign tax
consequences of this investment and the transactions contemplated by this
Agreement. Grantee is relying solely on such advisors and not on any statements
or representations of the Company or any of its agents. Grantee understands that
Grantee (and not the Company) is responsible for Grantee’s own tax liability
that may arise as a result of the transactions contemplated by this Agreement.
Grantee understands that Section 83 of the Internal Revenue Code of 1986, as
amended (the “Code”), taxes as ordinary income the difference between the
purchase price for the Restricted Shares and the fair market value of the
Restricted Shares as of the date any restrictions on the Restricted Shares
lapse. Grantee understands that Grantee may elect to be taxed at the time the
Restricted Shares is purchased rather than when and as the restrictions lapse by filing an
election under Section 83(b) of the Code with the Internal Revenue Service
within 30 days from the date of purchase. The form for making this election is
attached as Exhibit A hereto. 

5 

GRANTEE ACKNOWLEDGES THAT IT IS GRANTEE’S SOLE RESPONSIBILITY
AND NOT THE COMPANY’S TO FILE TIMELY ANY ELECTION UNDER SECTION 83(b), EVEN IF
GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON
GRANTEE’S BEHALF. 

7. No Employment Contract Created. The issuance
of the Restricted Shares is not be construed as granting to Grantee any right
with respect to continuance of employment or any service with the Company or any
of its subsidiaries. The right of the Company or any of its subsidiaries to
terminate at will Grantee's employment or terminate Grantee’s service at any
time (whether by dismissal, discharge or otherwise), with or without cause, is
specifically reserved, subject to any other written employment or other
agreement to which the Company and Grantee may be a party. 

8. Tax Withholding. The Company has the power and
the right to deduct or withhold, or require Grantee to remit to the Company, an
amount sufficient to satisfy Federal, state and local taxes (including the
Grantee’s FICA obligation) required by law to be withheld with respect to the
grant and vesting of the Restricted Shares. 

9. Interpretation. The Restricted Shares are
being issued pursuant to the terms of the Plan, and are to be interpreted in
accordance therewith. The Administrator will interpret and construe this
Agreement and the Plan, and any action, decision, interpretation or
determination made in good faith by the Administrator will be final and binding
on the Company and Grantee. 

10. Notices. All notices or other
communications which are required or permitted hereunder will be in writing and
sufficient if (i) personally delivered or sent by telecopy, (ii) sent by
nationally-recognized overnight courier or (iii) sent by registered or certified
mail, postage prepaid, return receipt requested, addressed as follows: 

if to Grantee, to the address (or telecopy number) set forth on
the Notice of Restricted Shares Grant; and 

if to the Company, to the attention of the President at the
address set forth below: 

Nutrastar International Inc.

7/F Jinhua Mansion 
41 Hanguang
Street
Nangang District, Harbin 150080 
People's Republic of China 

or to such other address as the party to whom notice is to be
given may have furnished to the other party in writing in accordance herewith.
Any such communication will be deemed to have been given (i) when delivered, if
personally delivered, or when telecopied, if telecopied, (ii) on the first Business Day (as hereinafter defined) after dispatch,
if sent by nationally-recognized overnight courier and (iii) on the fifth
Business Day following the date on which the piece of mail containing such
communication is posted, if sent by mail. As used herein, “Business Day” means a
day that is not a Saturday, Sunday or a day on which banking institutions in the
city to which the notice or communication is to be sent are not required to be
open. 

6 

11. Specific Performance. Grantee expressly
agrees that the Company will be irreparably damaged if the provisions of this
Agreement and the Plan are not specifically enforced. Upon a breach or
threatened breach of the terms, covenants and/or conditions of this Agreement or
the Plan by Grantee, the Company will, in addition to all other remedies, be
entitled to a temporary or permanent injunction, without showing any actual
damage, and/or decree for specific performance, in accordance with the
provisions hereof and thereof. The Administrator has the power to determine what
constitutes a breach or threatened breach of this Agreement or the Plan. Any
such determinations will be final and conclusive and binding upon Grantee. 

12. No Waiver. No waiver of any breach or
condition of this Agreement will be deemed to be a waiver of any other or
subsequent breach or condition, whether of like or different nature. 

13. Grantee Undertaking. Grantee hereby
agrees to take whatever additional actions and execute whatever additional
documents the Company may in its reasonable judgment deem necessary or advisable
in order to carry out or effect one or more of the obligations or restrictions
imposed on Grantee pursuant to the express provisions of this Agreement. 

14. Modification of Rights. The rights of
Grantee are subject to modification and termination in certain events as
provided in this Agreement and the Plan. 

15. Governing Law. This Agreement is
governed by, and construed in accordance with, the laws of the State of Nevada,
without giving effect to its conflict or choice of law principles that might
otherwise refer construction or interpretation of this Agreement to the
substantive law of another jurisdiction.

16. Counterparts; Facsimile Execution.
This Agreement may be executed in one or more counterparts, each of which
will be deemed to be an original, but all of which together will constitute one
and the same instrument. Facsimile execution and delivery of this Agreement is
legal, valid and binding execution and delivery for all purposes. 

17. Entire Agreement. This Agreement
(including the Notice of Restricted Shares Grant) and the Plan, constitute the
entire agreement between the parties with respect to the subject matter hereof,
and supersede all previously written or oral negotiations, commitments,
representations and agreements with respect thereto. 

18. Severability. In the event one or more
of the provisions of this Agreement should, for any reason, be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability will not affect any other provisions of this Agreement, and
this Agreement will be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. 

7 

19. WAIVER OF JURY TRIAL. THE GRANTEE
HEREBY EXPRESSLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM
THEREIN. 

[Signature Page Follows] 

8 

IN WITNESS WHEREOF, the parties hereto have executed
this Restricted Share Grant Agreement as of the date first written above. 

	NUTRASTAR INTERNATIONAL INC. 
	  	  
	  	  
	  	  
	By: 	/s/
      Lianyun Han 
	  	Lianyun Han 
	  	Chief Executive Officer 
	  	  
	  	  
	GRANTEE: 
	  	  
	  	  
	  	  
		s/ Richard E. Fearon, Jr. 
		Name: Richard E. Fearon, Jr.
  

9 

SPOUSE'S CONSENT TO AGREEMENT 
(Required where Grantee
resides in a community property state) 

I acknowledge that I have read the Agreement and the Plan and
that I know and understand the contents of both. I am aware that my spouse has
agreed therein to the imposition of certain forfeiture provisions and
restrictions on transferability with respect to the Restricted Shares that are
the subject of the Agreement, including with respect to my community interest
therein, if any, on the occurrence of certain events described in the Agreement.
I hereby consent to and approve of the provisions of the Agreement, and agree
that I will abide by the Agreement and bequeath any interest in the Restricted
Shares which represents a community interest of mine to my spouse or to a trust
subject to my spouse's control or for my spouse's benefit or the benefit of our
children if I predecease him. 

	Dated: ___________________	
	 	Signature 
	 	  
	 	  
	 	  
	 	Print Name 

10 

Exhibit A 

ELECTION UNDER SECTION 83(b) 
OF THE INTERNAL REVENUE CODE
OF 1986 

The undersigned taxpayer hereby elects, pursuant to Sections 55
and 83(b) of the Internal Revenue Code of 1986, as amended, to include in
taxpayer’s gross income or alternative minimum taxable income, as the case may
be, for the current taxable year the amount of any compensation taxable to
taxpayer in connection with taxpayer’s receipt of the property described below.

1. The name, address, taxpayer identification number and
taxable year of the undersigned are as follows: 

	 	                                                                                 	TAXPAYER: 	SPOUSE: 
	 	NAME: 	 	  
	 	ADDRESS: 	 	  
	 	IDENTIFICATION NO.: 	 	  
	 	TAXABLE YEAR: 	 	  

2. The property with respect to which the election is made is
described as follows: ____ shares (the “Shares”) of the Common Stock of
Nutrastar International Inc. (the “Company”). 

3. The date on which the property was transferred is:
___________________, ______. 

4. The property is subject to the following restrictions: 

The Shares may not be transferred and are subject to forfeiture
under the terms of an agreement between the taxpayer and the Company. These
restrictions lapse upon the satisfaction of certain conditions contained in such
agreement. 

5. The fair market value at the time of transfer, determined
without regard to any restriction other than a restriction which by its terms
will never lapse, of such property is: $_________________. 

6. The amount (if any) paid for such property is:
$_________________. 

The undersigned has submitted a copy of this statement to the
person for whom the services were performed in connection with the undersigned’s
receipt of the above-described property. The transferee of such property is the
person performing the services in connection with the transfer of said property.

The undersigned understands that the foregoing election may
not be revoked except with the consent of the Commissioner. 

	Dated: ______________________, ______	 
	  	Taxpayer 
	               
      The undersigned spouse of taxpayer joins in this election. 
	  	  
	Dated: ______________________, ______	 
	  	Spouse of Taxpayer 

11Exhibit 10.1 Share Exchange Agreement

Exhibit 10.1

AGREEMENT FOR SHARE EXCHANGE

This AGREEMENT FOR SHARE EXCHANGE (this “Agreement”) is entered into on April 14, 2011, with an effective date of July 14, 2010, by and among CH Real Estate II, Inc., a Utah corporation (“CHRE INC”), CH Real Estate, LLC, a Utah limited liability company (“CHRE LLC”), and the sole owner of CHRE LLC, Curt Hansen, as of July 14, 2010.  Such shareholder owns 100% of the shares of CHRE LLC and is sometimes referred to herein as the “Shareholder.”

RECITALS

WHEREAS, CHRE INC desires to acquire all of the equity ownership of CHRE LLC in exchange for the consideration and upon the terms set forth below; and  

WHEREAS, the Board of Directors of CHRE INC and the managers of CHRE LLC have each approved the proposed transaction, contingent upon satisfaction prior to closing of all of the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, and the covenants, conditions, representations and warranties hereinafter set forth, the parties hereby agree as follows:

ARTICLE I 

THE EXCHANGE

1.1

The Exchange.  At the Closing (as hereinafter defined), CHRE INC shall acquire 100% ownership of CHRE LLC.  Consideration to be paid by CHRE INC shall be a total of 9,600,000 shares of its common stock (the “Shares”) in exchange for 100% ownership of CHRE LLC (such exchange of shares shall be referred to herein as the “Exchange”).  The Exchange shall take place upon the terms and conditions provided for in this Agreement and in accordance with applicable law.  Immediately following completion of the share exchange transaction through issuance of the Shares, CHRE INC shall have a total of 9,600,000 shares of its common stock issued and outstanding.  For federal income tax purposes, it is intended that the Exchange shall constitute a tax-free reorganization within the meaning of Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the “Code”). 

1.2

Closing and Effective Time. Subject to the provisions of this Agreement, the parties shall hold a closing (the “Closing”) on (i) the first business day on which the last of the conditions set forth in Article V to be fulfilled prior to the Closing is fulfilled or waived or (ii) at such time and place as the parties hereto may agree. Notwithstanding the foregoing, February 14, 2012 shall be the effective date of the Exchange (the “Effective Time”), but in no event shall the Closing occur later than April 14, 2011 unless both parties agree, in writing, to extend the Closing beyond that date.

1.3

Actions at Closing.  At Closing:

(a)

The Shareholder shall execute and deliver to CHRE INC 100% ownership CHRE LLC.  

(b)

The parties to this Agreement further agree to execute, acknowledge and deliver such additional documents, take such additional actions and furnish such additional information as may be reasonably necessary to carry out fully the transactions contemplated by this Agreement.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

2.1

Representations and Warranties of CHRE INC.  CHRE INC represents and warrants to CHRE LLC as follows:

(a) 

Organization, Standing and Power. CHRE INC is or will be after the effective date, a corporation duly organized, validly existing and in good standing under the laws of Utah and has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted, and is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary except for any such failure, which when taken together with all other failures, is not likely to have a Material Adverse Effect.  “Material Adverse Effect” means any material adverse effect on the business, operations, assets, financial condition or prospects of CHRE LLC or CHRE INC, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith.

(b)

Articles of Incorporation and Bylaws. Copies of the Articles of Incorporation and Bylaws of CHRE INC, which have been delivered to CHRE LLC, are true, correct and complete copies thereof. 

(c)

Authority. CHRE INC has all requisite power to enter into this Agreement and, subject to approval of the proposed transaction by its shareholders, has the requisite power and authority to consummate the transactions contemplated hereby. Except as specified herein, no other corporate or shareholder proceedings on the part of CHRE INC are necessary to authorize the Exchange and the other transactions contemplated hereby.

 

(d)

Conflict with Agreements; Approvals. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, conflict with, or result in any violation of any provision of the Articles of Incorporation or Bylaws of CHRE INC or of any loan or credit agreement, note, mortgage, indenture, lease, benefit plan or other agreement, obligation, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to CHRE LLC or its properties or assets except for any such conflict or violation, which when taken together with all other conflict or violation, is not likely to have a Material Adverse Effect.  No consent, approval, order or authorization of, or registration, declaration or filing with, any governmental entity is required by or with respect to CHRE INC in connection with the execution and delivery of this Agreement by CHRE INC, or the consummation by CHRE INC of the transactions contemplated hereby.

(e)

Books and Records. CHRE INC has made and will make available for inspection by CHRE LLC upon reasonable request all the books of account, relating to the business of CHRE INC. Such books of account have been maintained in the ordinary course of business. All documents furnished or caused to be furnished to CHRE LLC by CHRE INC are true and correct copies, and there are no amendments or modifications thereto except as set forth in such documents.

(f)

Compliance with Laws.  CHRE INC is and has been in compliance in all material respects with all laws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any governmental entity applicable to it, its properties or the operation of its businesses.

(g)

Litigation. There is no suit, action or proceeding pending, or, to the knowledge of CHRE INC threatened against or affecting CHRE INC, which is reasonably likely to have a Material Adverse Effect on CHRE INC, nor is there any judgment, decree, injunction, rule or order of any governmental entity or arbitrator outstanding against CHRE INC having, or which, insofar as reasonably can be foreseen, in the future could have, any such effect.

(h)

Taxes.  CHRE INC has filed all tax returns and reports required to be filed as of the Closing with all other jurisdictions where such filing is required by law; and CHRE INC has paid, or made adequate provision for the payment of all taxes, interest, penalties, assessments or deficiencies due and payable on, and with respect to such periods or accruing prior to Closing.  As of the Closing, CHRE INC knows of (i) no other tax returns or reports which were required to be filed which have not been so filed and (ii) no unpaid assessment for additional taxes for any fiscal period ending before the Closing.  

2

2.2

Representations and Warranties of CHRE LLC.  CHRE LLC represents and warrants to CHRE INC as follows:

(a)

Organization, Standing and Power. CHRE LLC is an LLC duly organized, validly existing and in good standing under the laws of Utah and has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted, and is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary except for any such failure, which when taken together with all other failures, is not likely to have a Material Adverse Effect.

 (b)

Articles of Organization. Copies of the Articles of Organization, which have been delivered to CHRE INC, are true, correct and complete copies thereof. 

(c)

Authority. CHRE LLC has all requisite power to enter into this Agreement and, subject to approval of the proposed transaction by its shareholders, has the requisite power and authority to consummate the transactions contemplated hereby. Except as specified herein, no other corporate or shareholder proceedings on the part of CHRE LLC are necessary to authorize the Exchange and the other transactions contemplated hereby.

 

(d)

Conflict with Agreements; Approvals. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, conflict with, or result in any violation of any provision of the Articles of Organization or Operating Agreement of CHRE LLC or of any loan or credit agreement, note, mortgage, indenture, lease, benefit plan or other agreement, obligation, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to CHRE LLC or its properties or assets except for any such conflict or violation, which when taken together with all other conflict or violation, is not likely to have a Material Adverse Effect.  No consent, approval, order or authorization of, or registration, declaration or filing with, any governmental entity is required by or with respect to CHRE LLC in connection with the execution and delivery of this Agreement by CHRE LLC, or the consummation by CHRE LLC of the transactions contemplated hereby.

(e)

Books and Records. CHRE LLC has made and will make available for inspection by CHRE INC upon reasonable request all the books of account, relating to the business of CHRE LLC. Such books of account have been maintained in the ordinary course of business. All documents furnished or caused to be furnished to CHRE INC by CHRE LLC are true and correct copies, and there are no amendments or modifications thereto except as set forth in such documents.

(g)

Compliance with Laws.  CHRE LLC is and has been in compliance in all material respects with all laws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any governmental entity applicable to it, its properties or the operation of its businesses.

(h)

Litigation. There is no suit, action or proceeding pending, or, to the knowledge of CHRE LLC threatened against or affecting CHRE LLC, which is reasonably likely to have a Material Adverse Effect on CHRE LLC, nor is there any judgment, decree, injunction, rule or order of any governmental entity or arbitrator outstanding against CHRE LLC having, or which, insofar as reasonably can be foreseen, in the future could have, any such effect.

(i)

Taxes.  CHRE LLC has filed all tax returns and reports required to be filed as of the Closing with all other jurisdictions where such filing is required by law; and CHRE LLC has paid, or made adequate provision for the payment of all taxes, interest, penalties, assessments or deficiencies due and payable on, and with respect to such periods or accruing prior to Closing.  As of the Closing, CHRE LLC knows of (i) no other tax returns or reports which were required to be filed which have not been so filed and (ii) no unpaid assessment for additional taxes for any fiscal period ending before the Closing.  

(j)

Licenses, Permits; Intellectual Property. CHRE LLC owns or possesses in the operation of its business all material authorizations which are necessary for it to conduct its business as now conducted. Neither the execution nor delivery of this Agreement nor the consummation of the transactions contemplated hereby will require any notice or consent under or have any material adverse effect upon any such authorizations.

(k)

Title to Property. CHRE LLC has good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them which is material to the business of CHRE LLC, in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 2(s) or such as would not have a Material Adverse Effect. Any real property and facilities held under lease by CHRE LLC are held by it under valid, subsisting and enforceable leases with such exceptions as would not have a Material Adverse Effect.

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2.3

Representations and Warranties of Shareholder. Shareholder represents and warrants to CHRE INC as follows:

(a)

Shares Free and Clear. The shares or membership interest of CHRE LLC which Shareholder owns are free and clear of any liens, claims, options, charges or encumbrances of any nature.

(b)

Unqualified Right to Transfer Shares. Shareholder has the unqualified right to sell, assign, and deliver the shares of CHRE LLC and, upon consummation of the transactions contemplated by this Agreement, CHRE INC will acquire good and valid title to such shares or membership interest, free and clear of all liens, claims, options, charges, and encumbrances of whatsoever nature.

(c)

Agreement and Transaction Duly Authorized. Shareholder is authorized to execute and deliver this Agreement and to consummate the share exchange transaction described herein. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will constitute a violation or default under any term or provision of any contract, commitment, indenture, other agreement or restriction of any kind or character to which such Shareholder is a party or by which such Shareholder is bound.

(d)

Share Ownership. Shareholder is presently the only shareholder of CHRE LLC, and owns 100% of the equity ownership of CHRE LLC.

 

ARTICLE III

ADDITIONAL AGREEMENTS AND RELATED TRANSACTIONS

3.1

Restricted Shares. The Shares will not be registered under the Securities Act, but will be issued pursuant to applicable exemptions from such registration requirements for transactions not involving a public offering and/or for transactions which constitute “offshore transactions” as defined in Regulation S under the Securities Act of 1933, as amended (“1933 Act”). Accordingly, the Shares will constitute “restricted securities” for purposes of the Securities Act and the holders of Shares will not be able to transfer such shares except upon compliance with the registration requirements of the Securities Act or in reliance upon an available exemption therefrom. The certificates evidencing the Shares shall contain a legend to the foregoing effect.  

3.2

Access to Information. Upon reasonable notice, CHRE INC and CHRE LLC shall each afford to the officers, employees, accountants, counsel and other representatives of the other company, access to all their respective properties, books, contracts, commitments and records and all other information concerning its business, properties and personnel as such other party may reasonably request. Unless otherwise required by law, the parties will hold any such information which is nonpublic in confidence until such time as such information otherwise becomes publicly available through no wrongful act of either party, and in the event of termination of this Agreement for any reason each party shall promptly return all nonpublic documents obtained from any other party, and any copies made of such documents, to such other party.

ARTICLE IV

CONDITIONS PRECEDENT

4.1

Conditions to Each Party’s Obligation to Effect the Exchange. The respective obligations of each party to effect the Exchange shall be conditional upon the filing, occurring or obtainment by the other party of all authorizations, consents, orders or approvals of, or declarations or filings with, or expirations of waiting periods imposed by any governmental entity or by any applicable law, rule, or regulation governing the transactions contemplated hereby. 

4.2

Conditions to Obligations of CHRE INC. The obligation of CHRE INC to effect the Exchange is subject to the satisfaction of the following conditions on or before the Closing unless waived by CHRE INC:

(a)

Representations and Warranties. The representations and warranties of CHRE LLC set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date) as of the Closing as though made on and as of the Closing, except as otherwise stated in this Agreement, and CHRE LLC shall complete all government and legal process to transfer 100% of the ownerships from the Shareholder to CHRE INC.

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4.3

Conditions to Obligations of CHRE INC. The obligation of CHRE INC to effect the Exchange is subject to the satisfaction of the following conditions on or before the Closing unless waived by CHRE INC:

(a)

Representations and Warranties. The representations and warranties of CHRE LLC set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date) as of the Closing as though made on and as of the Closing, except as otherwise stated in this Agreement.

ARTICLE V

TERMINATION AND AMENDMENT

5.1

Termination. This Agreement may be terminated at any time prior to the Closing:

(a)

by mutual consent of CHRE INC, CHRE LLC, and the Shareholder;

 

(b)

by either CHRE INC, CHRE LLC, and/or the Shareholder, if there has been a material breach of any representation, warranty, covenant or agreement on the part of the other party or parties, as set forth in this Agreement, which breach has not been cured within five (5) business days following receipt by the breaching party of notice of such breach, or if any permanent injunction or other order of a court or other competent authority preventing the consummation of the Exchange shall have become final and non-appealable.

5.2

Effect of Termination. In the event of termination of this Agreement by any party as provided in Section 5.1, this Agreement shall forthwith become void and, subject to the following, there shall be no liability or obligation on the part of any party hereto.  In the event of termination under Section 5.1(a), all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses.  In the event of termination under Section 5.1(b), all costs and expenses incurred in connection with this Agreement by the non-breaching party shall be paid by the other party.

5.3

Amendment. This Agreement may be amended by mutual agreement of CHRE INC, CHRE LLC, and the Shareholder.  Any such amendment must be by an instrument in writing signed on behalf of each of the parties hereto.

5.4

Extension; Waiver. At any time prior to the Closing, any party hereto, by action taken individually or authorized by their respective Board of Directors, may, to the extent legally allowed, (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in a written instrument signed on behalf of such party.

ARTICLE VI

GENERAL PROVISIONS

6.1

Survival of Representations, Warranties and Agreements. All of the representations, warranties and agreements in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Effective Time for as long as the applicable status of limitation shall remain open.  

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6.2

Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, telecopied (which is confirmed) or mailed by registered or certified mail (return receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice), with a copy to Vincent & Rees, L.C., 175 South Main, 15th Floor, Salt Lake City, Utah 84111:

(a)

If to CHRE INC:

175 South Main Street, 15th Floor

Salt Lake City, UT  84111

(b)

If to CHRE LLC:

175 South Main Street, 15th Floor

Salt Lake City, UT  84111

(c)

If to Shareholder:

175 South Main Street, 15th Floor

Salt Lake City, UT  84111

6.3

Interpretation. When a reference is made in this Agreement to Sections, such reference shall be to a Section of this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes,” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The phrase “made available” in this Agreement shall mean that the information referred to has been made available if requested by the party to whom such information is to be made available.

6.4

Counterparts. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

6.5

Entire Agreement; No Third Party Beneficiaries; Rights of Ownership. This Agreement (including the documents and the instruments referred to herein) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, and is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.

6.6

Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Utah without regard to principles of conflicts of law. Each party hereby irrevocably submits to the jurisdiction of any Utah state court or any federal court in the State of Utah in respect of any suit, action or proceeding arising out of or relating to this Agreement, and irrevocably accept for themselves and in respect of their property, generally and unconditionally, the jurisdiction of the aforesaid courts.

6.7

No Remedy in Certain Circumstances. Each party agrees that, should any court or other competent authority hold any provision of this Agreement or part hereof or thereof to be null, void or unenforceable, or order any party to take any action inconsistent herewith or not to take any action required herein, the other party shall not be entitled to specific performance of such provision or part hereof or thereof or to any other remedy, including but not limited to money damages, for breach hereof or thereof or of any other provision of this Agreement or part hereof or thereof as a result of such holding or order.

 

6.8

Publicity. Except as otherwise required by law or the rules of the SEC, so long as this Agreement is in effect, no party shall issue or cause the publication of any press release or other public announcement with respect to the transactions contemplated by this Agreement without the written consent of the other party, which consent shall not be unreasonably withheld.

6.9

Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns.

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ARTICLE VII

OTHER PROVISIONS

7.1

Bankruptcy, Insolvency, Etc.  In the case of CHRE INC instituting (a) any bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors or (b) the dissolution, liquidation, or winding up of CHRE INC or any substantial portion of its business prior to the date which is eighteen (18) months following the Effective Time, this Agreement shall be deemed null and void and CHRE INC shall immediately return to the Shareholder the CHRE LLC Shares.

IN WITNESS WHEROF, this Agreement has been signed by the parties set forth below as of the date set forth above.

[Signatures on the following page]

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	CH Real Estate II, Inc., a Utah corporation

By: /s/ Curt Hansen

	 

	Curt Hansen

Chief Executive Officer & Chairman

	 

	

CH Real Estate, LLC, a Utah LLC

By: /s/ Curt Hansen

	 
	Curt Hansen

Manager

	 
	

SHAREHOLDER of CH Real Estate, LLC, a Utah LLC

/s/ Curt Hansen

Curt Hansen

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