Document:

ex10.1

 DIVESTITURE AND SHARE PURCHASE AGREEMENT
 

 THIS DIVESTITURE AND SHARE PURCHASE AGREEMENT (the “Agreement”) made effective as of the 2nd day of December, 2013 (the “Effective Date”),
 

 BETWEEN: 
 

 OCTAVIO VIVEROS, Businessperson, with offices located at 888 S. Andrews Avenue, Suite 201, Fort Lauderdale, Florida 33316
 

 (the “Acquiring Party”)
 

 AND:
 

 POLY SHIELD TECHNOLOGIES INC., a company incorporated under the laws of the State of Delaware and having its executive office at 428 Plaza Real, Suite 419, Boca Raton, Florida 33432
 

 (the “Company”)
 

 AND:
 

 NEW WORLD TECHNOLOGIES GROUP INC., a company incorporated under the laws of the State of Florida and having an office at 888 S. Andrews Avenue, Suite 201, Fort Lauderdale, FL 33316
 

 (“NWT or New World Technologies Group, Inc.”)
 

 WHEREAS:
 

 A.
 The Company is the registered and beneficial owner of all of the issued and outstanding shares of New World Technologies Group, Inc., a wholly owned subsidiary of the Company, (the “Purchased Shares”);
 

 B.
 The Company has decided it is in its best interest to divest its ownership in New World Technologies Group, Inc. as a wholly owned subsidiary by selling and transferring all the Purchased Shares;
 

 C.
 The Company wishes to sell and transfer to the Acquiring Party, and the Acquiring Party wishes to purchase and acquire from the Company, all of the Purchased Shares on the terms and conditions herein set forth;
 

 NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of good and valuable consideration paid by each party to the other, the receipt and sufficiency of which are hereby acknowledged, the parties covenant and agree as follows:
 

 INTERPRETATION
 

 1.
 In and for the purpose of this Agreement:
 

 

 

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 a.
 “Business Day” means a day that is not a Saturday or Sunday and is not a statutory holiday in the United States;
 

 b.
 “Claim” means any claim, action or cause of action, proceeding, assessment, loss, judgment, amount paid in settlement of actions or claims, liability (whether accrued, actual, contingent or otherwise), costs, deficiency, damage, expense (including, but not limited to, legal fees and disbursements on a solicitor and own client basis) and demand whatsoever (including any liabilities arising from claims and demands for income, sales, excise or other taxes) in connection with any litigation, investigation, hearing or other proceeding of any kind and nature (collectively, referred to as “Claims” and, individually, as a “Claim”);
 

 c.
 “Closing” means the completion of the sale, purchase and transfer of the Purchased Shares pursuant to and in accordance with all of the terms and conditions of this Agreement;
 

 d.
 “Closing Date” means the Effective Date or such later date as the parties may agree to in writing;
 

 e.
 “Competition” means, with respect to the NWT Business or the Poly Shield Business, as the case may be:
 

 i.
 Engaging in the NWT Business or the Poly Shield Business, as the case may be, anywhere at any time;
 

 ii.
 Assisting any Person, whether in a financial, managerial, employment, advisory or other capacity or as a shareholder, member or owner, or by providing information to such Person, in the engaging, remaining or otherwise improving its competitive position in a business identical or substantially similar to the NWT Business or the Poly Shield Business, as the case may be; or
 

 iii.
 Owning any interest in or organizing a corporation, partnership, or other business or organization that engages in a business identical or substantially similar to the NWT Business or the Poly Shield Business, as the case may be, anywhere at any time; provided that nothing in this definition of Competition will preclude the Company from holding no more than 5% of the outstanding shares of any corporation listed on an exchange or traded in an over-the-counter market, whether in the United States or elsewhere, which may be so engaged in a business identical or substantially similar to the NWT Business or the Poly Shield Business, as the case may be;
 

 f.
 “Material Contracts” will have the meaning ascribed to it in paragraph 3(z);
 

 g.
 “NWT Business” means the business of providing energy efficiency and water purification technologies, products, solutions and services for application in high rise buildings;
 

 h.
 “Person” means an individual, corporation, body corporate, partnership, joint venture, association, trust or unincorporated organization or any trustee, executor, administrator or other legal representative;
 

 i.
 “Poly Shield Business” means the business of (i) developing, marketing and providing emission reduction technologies, products, solutions and services for the marine industry, and (ii) the distribution of fluoropolymer coatings and related technologies, products, solutions and services for any and all applications; 
 

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 j.
 “Purchase Price” means the price to be paid for the Purchased Shares, as set out in paragraph 7;
 

 k.
 “Purchased Shares” means all the issued and outstanding shares of New World Technologies Group, Inc.;
 

 l.
 “Restrictive Period” means the period from the Closing Date until five years after the Closing Date;
 

 m.
 “Tax Act” means the U.S. Internal Revenue Income Tax Code;
 

 n.
 “Knowledge” means the actual knowledge of matters in respect of which the particular party’s representation or warranty is being rendered and is intended to indicate that during the course of giving its representation or warranty, no information has come to that party’s attention that would give that party actual knowledge of the existence or absence of such facts or cause that party to believe that such facts exist or are absent.
 

 2.
 Schedules:  The following are the schedules to this Agreement, which are incorporated into and form part of this Agreement:
 

 Schedule “1” - Liabilities
 Schedule “2” - Bank Accounts and Powers of Attorney
 Schedule “3” - Litigation
 Schedule “4” - Licenses and Permits
 Schedule “5” - Material Contracts
 

 REPRESENTATIONS AND WARRANTIES
 

 3.
 The Company’s Representations and Warranties.  The Company represents and warrants to the Acquiring Party as of the date hereof and as of the Closing Date as follows and acknowledge that the Acquiring Party is relying upon such representations and warranties in connection with the purchase by the Acquiring Party of the Purchased Shares and that the Acquiring Party would not have entered into this Agreement without such representations and warranties:
 

 a.
 Due Incorporation.  New World Technologies Group, Inc. is duly incorporated and organized, validly exists and is in good standing under the laws of Florida, and has all necessary corporate power and authority to conduct the NWT Business as and in the places where the NWT Business is now conducted.
 

 b.
 Jurisdiction.  New World Technologies Group, Inc. has an address in the State of Florida at 888 S. Andrews Avenue, Suite 201, Fort Lauderdale, Florida 33316 and operates the NWT Business only in the State of Florida.
 

 c.
 Due Authorization.  The Company has due and sufficient right and authority to enter into and deliver this Agreement on the terms and conditions set forth in this Agreement and to do all such acts and things as may be necessary to give effect to the transactions contemplated hereby, including to transfer the legal and beneficial title and ownership of the Purchased Shares to the Acquiring Party.  The execution, delivery and performance of this Agreement by the Company may require action or consent of, or registration with, or notification to, a governmental authority, or action or consent under any laws to which the Company is subject, and the Company shall comply and take all action necessary to effect the transactions contemplated hereby.  
 

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 d.
 Enforceability of Obligations.  This Agreement constitutes a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.
 

 e.
 Absence of Conflicting Agreements.  The execution and delivery of this Agreement, the consummation of the transactions contemplated herein, the performance by the Company of its obligations hereunder and the compliance by the Company with this Agreement does not:
 

 i.
 Violate, contravene or breach, or constitute a default under the constating documents of New World Technologies Group, Inc.;
 

 ii.
 Violate, contravene or breach, or constitute a default under any contract, agreement, indenture, instrument, or commitment to which the Company may be a party, or the Purchased Shares may be subject, or by which the Company is bound or affected;
 

 iii.
 Result in a creation of, or require the creation of, any lien upon any of (a) the Purchased Shares or (b) the Business of New World Technologies Group, Inc.; or
 

 iv.
 Violate, contravene or breach any laws.
 

 f.
 Authorized and Issued Capital.  The authorized and issued capital of New World Technologies Group, Inc. consists of the following shares:
 

 	 	 	
	 Class
	 Authorized
	 Issued & Outstanding

	 Common Stock
	 1,000,000
	 1,000,000

 

 The Purchased Shares represent all of the issued and outstanding shares in the capital of New World Technologies Group, Inc.
 

 g.
 Title to Purchased Shares.  The Company is the beneficial owner and holder of record of, and has a good and valid title to, the Purchased Shares as set forth below, free and clear of all liens, claims, charges and encumbrances, and at Closing will transfer to the Acquiring Party, or his designated transferee, a good and valid title to the Purchased Shares, free and clear of all liens, claims, charges and encumbrances:
 

 	 	 	
	 Name
	 Class
	 Number

	 Poly Shield Technologies Inc.
	 Common Stock
	 1,000,000

 

 If there exists any share certificate, such share certificate representing the Purchased Shares is genuine, valid and subsisting and has not been altered and the Company does not know of any acts or circumstances that may impair the validity of such share certificate.  If there is no share certificate, then transfer may be completed by the execution of this Agreement, and any other necessary accompanying and supporting documentation as each party may reasonably request from the other.
 

 h.
 No Options.  There is no:
 

 i.
 Outstanding security of New World Technologies Group, Inc. convertible or exchangeable into any share or shares in the capital of New World Technologies Group, Inc.;
 

 

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 ii.
 Outstanding subscription, option, warrant, call, commitment or agreement obligating New World Technologies Group, Inc. to issue any share or shares of its capital or any security or any class or kind, as the case may be, or which in any way relate to the authorized or issued capital of New World Technologies Group, Inc.;
 

 iii.
 Agreement (other than this Agreement) that grants to any Person the right to purchase or otherwise acquire any share or shares issued and outstanding in the capital of New World Technologies Group, Inc.; and
 

 iv.
 Voting trust or voting agreement or pooling agreement or proxy with respect to any of the Purchased Shares.
 

 i.
 Proceedings pertaining to Purchased Shares.  There are no actions, suits, claims, trials, demands, investigations, arbitrations or other proceedings (whether or not purportedly on behalf of the Company or New World Technologies Group, Inc.) pending, or to the best of the Company’s knowledge, threatened with respect to or in any manner affecting the Purchased Shares.
 

 j.
 Corporate Records.  The minute book of New World Technologies Group, Inc. is complete and accurate and contains copies of all resolutions passed by its shareholders and directors and all proceedings of its shareholders and directors since the date of its incorporation, of which all resolutions have been duly passed.  The register of shareholders, and registers of directors of New World Technologies Group, Inc. are complete.  The financial books and records of New World Technologies Group, Inc. have been maintained in accordance with sound business practices, and fairly, accurately and completely present and disclose in accordance with generally accepted accounting principles applied on any basis consistent with prior periods and throughout the periods involved (i) the financial position of New World Technologies Group, Inc. and (ii) all transactions of New World Technologies Group, Inc.  All material transactions have been promptly and properly recorded or filed in or with its books and records.
 

 k.
 Liabilities.  There are no liabilities, contingent or otherwise, of New World Technologies Group, Inc., and New World Technologies Group, Inc. has not guaranteed, or agreed to guarantee, any debt, liability or other obligation of any Person other than those listed in Schedule “1” Liabilities or as disclosed in the unaudited financial statements of NWT for the period ended December 2, 2013 (the “NWT Financials”), copies of which have been provided to the Acquiring Party.  There are no liabilities of any other party capable of creating a lien or charge on any of the assets of New World Technologies Group, Inc.  New World Technologies Group, Inc. is not indebted to the Company or any affiliate, director or officer of New World Technologies Group, Inc. or any Person affiliated with the Company, including, without limitation, for any shareholder loan or accrued wages other than those listed in Schedule “1” Liabilities or disclosed in the NWT Financials.
 

 l.
 Ownership of Assets.  Except as disclosed in the NWT Financials, there are no material assets of NWT (assets of NWT as disclosed in the NWT Financials being referred to as the “NWT Assets”).  Except as otherwise disclosed in the NWT Financials:
 

 i.
 New World Technologies Group, Inc. has good and marketable title to the NWT Assets;
 

 ii.
 There are no liens or encumbrances registered or pending to be registered against any of the NWT Assets;
 

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 iii.
 Neither the Company nor any third party has any beneficial interest in any of the NWT Assets; and
 

 iv.
 No other assets other than the NWT Assets are necessary to operate the NWT Business.
 

 m.
 Intellectual Property Rights.  To the Company’s Knowledge, the operations of New World Technologies Group, Inc. do not infringe in any respect upon the intellectual property rights of any Person and no Person has claimed or threatened to claim any infringement of any intellectual property rights.  There are no registered patents, trademarks, industrial design, tradenames, service names or copyrights which are owned or used by New World Technologies Group, Inc.  New World Technologies Group, Inc. does not conduct nor has it conducted its business under any name other than its corporate name.
 

 To the Company’s Knowledge, New World Technologies Group, Inc. does not use intellectual property rights of any Person, including, without limitation, any shareholder, director, officer or employee of New World Technologies Group, Inc. without such Person’s written permission.
 

 No proceeding for infringement of intellectual property rights of any Person is pending, or, to the best of the Company’s knowledge, threatened against New World Technologies Group, Inc.
 

 All intellectual property owned or used by New World Technologies Group, Inc. is unencumbered and no fact, condition or circumstance exists which, after notice or lapse of time or both, would constitute a default or breach of any agreement or license with respect to any intellectual property.
 

 n.
 Litigation.  
 

 i.
 There are no pending actions, suits, claims, trials, demands, arbitrations, or other proceedings on behalf of New World Technologies Group, Inc., or to the Company’s Knowledge, threatened against, with respect to, or affecting in any material manner, New World Technologies Group, Inc.;
 

 ii.
 To the Company’s Knowledge, there are no outstanding judgments, orders, decrees, writs, injunctions, decisions, rulings or awards against, with respect to, or affecting, in any material manner, New World Technologies Group, Inc.; and 
 

 iii.
 To the Company’s Knowledge, New World Technologies Group, Inc. is not in default with respect to any judgment, order, notice, writ, injunction, decision, ruling, decree or award of any Governmental Authority.
 

 o.
 No Dividends.  New World Technologies Group, Inc. has (i) since the date of its incorporation, reserved, declared, made or paid any dividend or redeemed, retired, repurchased or otherwise acquired shares of its capital stock or other corporate security, or (ii) agreed to reserve, declare or pay to shareholders of record prior to the time of Closing on the Closing Date any dividend or to redeem, retire, repurchase or otherwise acquire shares of its capital stock or other corporate security.
 

 p.
 No Default Under Agreements.  In all material respects, New World Technologies Group, Inc. (i) is in good standing and entitled to all benefits under, (ii) has performed all obligations required to be performed under, and (iii) is not in material default under, or material breach of, any written or oral contracts, agreements, indentures, instruments, commitments, licenses and permits.
 

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 There exists no fact, condition or circumstance which, after notice or lapse of time or both, would constitute such a material default or material breach of any of the aforesaid contracts, agreements, indentures, instruments, commitments, licenses or permits.
 

 No party to a contract, agreement, indenture, instrument, or commitment with New World Technologies Group, Inc. is in material default under, or in material breach of, any such contract, agreement, indenture, instrument or commitment and there exists no circumstance or fact which, after notice or lapse of time or both, would result in a material default or material breach by such other party under such contract, agreement, indenture, instrument or commitment.
 

 q.
 Tax Matters.  New World Technologies Group, Inc. has no taxes owing, or has paid all taxes (including payments to be made on account of estimated tax liability) that are due and payable in any taxation year ending on or prior to the Closing Date and made adequate provision (including provision for interest payable) for the payment of all taxes due or payable for any taxation year ending on or prior to the Closing Date.  
 

 With respect to any period up to and including the Closing Date for which returns have not yet been filed or for which taxes are not yet due and payable, New World Technologies Group, Inc. has only incurred liabilities for taxes in the ordinary course of its business.
 

 New World Technologies Group, Inc. is not subject to and, to the best of the Company’s knowledge, will not be subject to, after the Closing Date, any assessments, levies, penalties or interest with respect to taxes that should result in any liability on its part in respect of any period ending on or prior to the Closing Date.  The Company is not aware of any contingent tax liabilities or any grounds for reassessment by any tax agency.
 

 There are no Claims regarding any tax matters related to New World Technologies Group, Inc. and the Business, and New World Technologies Group, Inc. has not waived any statutory time limits for any tax assessment.
 

 r.
 Employee Matters.  New World Technologies Group, Inc. has complied with all laws relating to the employment of labour, including, without limitation, any provisions thereof relating to wages, hours, collective bargaining, health, and safety and industrial accidents.  
 

 None of the directors, officers, employees and agents of New World Technologies Group, Inc. are covered by any written or oral contract, agreement, indenture, instrument or commitment providing for a specified notice of termination of fixed term of employment.  There are no directors, officers, employees or agents of New World Technologies Group, Inc. who cannot be dismissed upon such notice as is required by law.  There are no obligations to pay benefits or share profits that survive the termination of employment.
 

 There are no written employment, service, union, agency, consulting, termination or severance contracts and agreements that New World Technologies Group, Inc. has entered into with or for any or all of its present or past shareholders, directors, officers, employees and agents.
 

 There are no plans or policies regarding pension, benefit, vacation or disability payments in existence that New World Technologies Group, Inc. is required to comply with for any present or past shareholders, directors, officers, employees and agents.  
 

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 New World Technologies Group, Inc. is not or has never been a party to any collective bargaining agreement or other labour contract.  There has never been and there is not presently pending or existing any strike, slowdown, picketing, work stoppage, labour arbitration or proceeding in respect of the grievance of any employee or other labour dispute against or affecting New World Technologies Group, Inc.  No application for certification of a collective bargaining unit has been instituted or is pending or threatened.  No fact, condition or circumstance exists that could provide the basis for any work stoppage or other labour dispute.  There is no lock-out of any employee by New World Technologies Group, Inc., nor is any such action contemplated by any of them.
 

 s.
 Compliance with Laws.  To the Company’s Knowledge, New World Technologies Group, Inc. has complied and continues to comply, in all material respects, with all laws, statutes, regulations, by-laws, and applicable court orders, including the zoning for the property located at 888 S. Andrews Avenue, Suite 201, Fort Lauderdale, Florida 33316, which is zoned to permit the operation of the NWT Business. 
 

 To the Company’s Knowledge, it is not aware of any pending change in statutes, regulations, or bylaws (including zoning) that will render any part of the NWT Business illegal or non-compliant.
 

 t.
 Licenses and Permits.  New World Technologies Group, Inc. has, and is in full compliance with and entitled to all of the benefits under, all licenses and permits, if any, of or which any governmental authority necessary or required by all laws to conduct the NWT Business, and such have been validly issued and are in full force and effect.
 

 To the Company’s Knowledge, no past or present fact, condition or circumstance has occurred to create, and the execution and delivery of this Agreement and its performance will not create, any right to terminate, cancel, modify, amend, revoke or expire any such license or permit.
 

 u.
 Environment.  To the Company’s Knowledge, New World Technologies Group, Inc. and, as related to or connected with the NWT Business, the Company has at all times conducted, held and used, and are continuing to conduct, hold and use their affairs and NWT Business in accordance with, and not in violation of or non-compliance with any and all applicable environmental laws or any permits, and, to the Company’s Knowledge, there is no past or present fact, condition or circumstance relating to New World Technologies Group, Inc. or, as related to or connected with the NWT Business, the Company, or to the NWT Business that would result in any liability or potential liability under any environmental law.
 

 v.
 No Guarantees.  New World Technologies Group, Inc. is not party to or bound either absolutely or on a contingent basis by any comfort letter, understanding or agreement of guarantee, indemnification, performance bond, assumption or endorsement or any like commitment with respect to the liabilities or obligations of any Person (whether accrued, absolute or contingent), except in the ordinary course of business.
 

 w.
 No Change.  To the Company’s Knowledge, except as disclosed elsewhere in this Agreement or in the NWT Financials, since the date of the NWT Financials, there has not been any material adverse change in the NWT Business. or any event, condition, or contingency that is likely to result in such a material adverse change.
 

 

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 x.
 No Unusual Transactions.  Except for anything contained in this Agreement, New World Technologies Group, Inc. has conducted the Business and its affairs in the ordinary course and, without limiting the generality of the foregoing, and with the exception of any item listed in Schedule “1” Liabilities, has not, except when conducted in the ordinary course of NWT’s business:
 

 i.
 Incurred or discharged any secured or unsecured liability or obligation (whether accrued, absolute or contingent) other than in the ordinary course of business; 
 

 ii.
 Waived or cancelled any claim, account receivable, trade account or material right or made any gift;
 

 iii.
 Made any capital expenditure not in the ordinary course of business;
 

 iv.
 Entered into any transaction, contract, agreement, indenture, instrument or commitment other than in the ordinary course of business;
 

 v.
 Suffered any extraordinary losses whether or not covered by insurance;
 

 vi.
 Modified its constating instruments or capital structure;
 

 

 vii.
 Removed any of its directors and auditors or terminated any of its officers;
 

 viii.
 Terminated, cancelled, amended, modified, altered or varied any Material Contract;
 

 ix.
 Made any change in its accounting principles and practices;
 

 x.
 Changed the NWT Business or the manner in which it conducts the NWT Business;
 

 

 xi.
 Made any loan or advance, or assumed, guaranteed, endorsed or otherwise became liable with respect to the liabilities or obligations of any Person;
 

 xii.
 Purchased or otherwise acquired any corporate security or proprietary interest in any Person;
 

 xiii.
 Granted to any customer any special allowance or discount, or changed its pricing, credit or payment policies;
 

 xiv.
 Incurred any indebtedness other than in the ordinary course of business;
 

 xv.
 Amended, modified, varied, altered or otherwise changed any benefit plans;
 

 xvi.
 Taken any action outside the ordinary course of business;
 

 xvii.
 Purchased, sold, leased or otherwise disposed of any of its assets;
 

 

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 xviii.
 Materially modified or changed NWT’s business organization or its relationship with its suppliers, customers, clients, and others having business relations with it; or
 

 xix.
 Authorized, agreed or otherwise committed to any of the foregoing.
 

 y.
 No Broker.  None of the New World Technologies Group, Inc. or any of its respective shareholders, directors, officers, employees or agents has employed or incurred any liability to any broker, finder or agent for any brokerage fees, finder’s fees, commissions or other amounts with respect to this Agreement or any transaction contemplated by this Agreement.
 

 z.
 Material Contracts.  Schedule 5 describes all Material Contracts to which New World Technologies Group, Inc. is a party or by which it is bound other than those Material Contracts described in other Schedules annexed hereto.  For the purposes of this Agreement, the phrase “Material Contracts” will mean all written or oral:
 

 i.
 Contracts, agreements, indentures, instruments and commitments (a) arising in the ordinary course of business and providing for the payment in any 12 month period of $10,000 or more in one instance or in the aggregate, or (b) not arising in the ordinary course of business;
 

 ii.
 Loan and credit agreements, revolving credit agreements, security agreements, guarantees, notes, agreements evidencing any lien, conditional sales, leasing agreements, sale-lease back agreements, or title retention agreements;
 

 iii.
 Purchase orders and other contracts and commitments for the future purchase of materials, supplies or equipment in excess of the requirements for normal operating inventories or for business now booked;
 

 iv.
 Agreements relating to intellectual property rights;
 

 v.
 Contracts, agreements, indentures, instruments or commitments by and between New World Technologies Group, Inc. and Persons with whom it is not dealing at arm’s length within the meaning of the Tax Act;
 

 vi.
 Government contracts, tenders or bids;
 

 vii.
 Contracts subject to renegotiation, renewal or review;
 

 viii.
 Agreements of non-competition, non-disclosure and/or confidentiality;
 

 ix.
 Franchise, distribution, license or consignment contracts or agreements;
 

 x.
 Sales, agency or advertising contracts or agreements;
 

 xi.
 Leases under which New World Technologies Group, Inc. is the lessor; or
 

 xii.
 Management service contracts or agreements.
 

 

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 aa.
 Stand Alone.  Except for any employees or agents of New World Technologies Group, Inc., no part of the NWT Business is conducted through any Person other than New World Technologies Group, Inc.
 

 bb.
 Copies.  All copies of documents provided or caused to be provided by the Company and New World Technologies Group, Inc., including, without limitation, those annexed hereto as Schedules, to the Acquiring Party or his legal, accounting and other representatives are true, complete and correct copies of the originals.
 

 cc.
 Full Disclosure.  The Company has made or caused to be made due inquiry with respect to each covenant, agreement, obligation, representation and warranty contained in this Agreement, the Schedules and any certificates or other documents referred to herein or furnished to the Acquiring Party pursuant hereto, and none of the aforesaid covenants, agreements, obligations, representations, warranties, Schedules, certificates or documents contain any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained therein not misleading.
 

 4.
 Acquiring Party’s Representations and Warranties.   The Acquiring Party represents and warrants to the Company as of the date hereof and as of the Closing Date  as follows and acknowledges that the Company is relying on such representations and warranties in connection with the sale by the Company of the Purchased Shares and that the Company would not have entered into this Agreement without such representations and warranties:
 

 a.
 Due Diligence.  The parties hereto have conducted their respective due diligence investigation into the matters set forth in this Agreement, and in particular to all matters identified in this section, and at the time of execution of this Agreement have satisfied themselves as to the validity of the responses contained herein.  Notwithstanding the foregoing, the Acquiring Party further state the following:
 

 b.
 Due Authorization.  The Acquiring Party, individually and personally, has the necessary authority to enter into and deliver this Agreement on the terms and conditions set forth in this Agreement and to do all such acts and things as may be necessary to give effect to the transactions contemplated in this Agreement.  The execution, delivery and performance of this Agreement by the Acquiring Party of his obligations hereunder are duly authorized by all necessary action on his part.  Such execution, delivery and performance by the Acquiring Party does not require any action or consent of, any registration with, or notification to, any Governmental Authority, or any action or consent under any laws to which the Acquiring Party is subject.
 

 c.
 Enforceability of Obligations.  This Agreement constitutes a legal, valid and binding obligation of the Acquiring Party enforceable against him in accordance with the terms of this Agreement.
 

 d.
 Absence of Conflicting Agreements.  The execution and delivery of this Agreement, the consummation of the transactions contemplated in this Agreement, the performance by the Acquiring Party of his obligations hereunder and the compliance by the Acquiring Party with this Agreement do not:
 

 i.
 Violate, contravene or breach, or constitute a default under any contract, agreement, indenture, instrument, or commitment to which the Acquiring Party is a party to or subject or by which he is bound or affected; and
 ii.
 Result in the violation of any laws.
 

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 e.
 No Broker.  The Acquiring Party has not employed or incurred any liability to any broker, finder or agent for any brokerage fees, finder’s fees, commissions or other amounts with respect to this agreement or any transaction contemplated by this Agreement.
 

 5.
 Survival of Representations and Warranties.   The representations and warranties contained in this Agreement will survive the completion of the transactions contemplated by this Agreement and, notwithstanding such completion or any investigation made by or on behalf of the Acquiring Party, will continue in full force and effect for a period of five years from the Closing Date except:
 

 a.
 Any representation and warranty in respect of which a claim based on fraud is made, which in each case will be unlimited as to duration; and
 

 b.
 The representations and warranties made with respect to taxation matters, which will survive for a period of seven years from the Closing Date notwithstanding any independent investigation by the Acquiring Party.
 

 PURCHASED SHARES AND PURCHASE PRICE
 

 6.
 Purchased Shares.  Subject to the terms and conditions of this Agreement and based on the representations and warranties of the parties as set forth in this Agreement, on the Closing Date (as defined in the Closing Section herein) the Company will sell, assign and transfer to the Acquiring Party and the Acquiring Party will purchase from the Company the Purchased Shares, which will consist of all the issued and outstanding shares of New World Technologies Group, Inc.
 

 7.
 Purchase Price.  The purchase price payable to the Company for the Purchased Shares will be the aggregate sum of $1.00 (one dollar) (the “Purchase Price).
 

 8.
 Payment of Purchase Price.  The Purchase Price will be paid and satisfied by the Acquiring Party paying $1.00 to the Company on Closing.
 

 ROYALTY
 

 9.
 Royalty. As additional consideration for the Purchased Shares, upon Closing, the Acquiring Party and NWT agree to pay to the Company a  royalty equal to 5% (five percent) of Gross Revenues for a period beginning on the Effective Date and ending on December 31, 2018 (the “Royalty”) For purposes of this Agreement, “Gross Revenues” means all gross revenues recognized by NWT from the sale of products or services, provided that, in the event of sales of products or services to persons that are affiliates of NWT or any other Person other than bona fide third parties of NWT, Gross Revenues shall be determined based on the average price for such products and services (with no deduction for expenses, costs of goods sold, or similar amounts) charged by NWT to bona fide third parties during the previous calendar quarter and, if there are no sales of products or services during the previous calendar quarter to bona fide third parties, Gross Revenues shall be determined based on the then prevailing market price for such products or services to be mutually determined by NWT and the Company in good faith.  In the event that NWT and the Company are unable to agree on the then prevailing market price for products or services sold to affiliates of NWT or Persons other than bona fide third parties of NWT, then the market price shall be determined based on the Comparable Profits Method under the Tax Act and the rules, regulations and interpretive releases of the Internal Revenue Service promulgated thereunder. Gross Revenues shall be determined in accordance with United States generally accepted accounting principles (GAAP) from books and records maintained in accordance with GAAP, consistently applied throughout New World Technologies Group, Inc. and any of its subsidiaries or affiliates.  
 

 -12-
 

 
 

 10.
 The Royalty owed hereunder shall be paid by NWT to the Company by the end of 10 days following the end of each calendar quarter commencing from the quarter beginning January 1, 2014 and including the additional month of December 2013, which initial quarter would end on March 31, 2014, such Royalty shall be for the period of the quarter just ended, and include the additional month of December 2013.  Each quarter thereafter shall be a calendar quarter of each year to which this Agreement applies, and unless terminated earlier by provisions contained herein, shall terminate with the final quarter on December 31, 2018.
 

 11.
 Within 10 days after the end of each calendar quarter subject to a Royalty to the Company, a Royalty report prepared by a responsible individual or corporate officer of the NWT shall be submitted to the Company showing in detail the total Gross Revenues and the calculation of the Royalty, if any, due to the Company as of the end of the previous calendar quarter and such reasonable supporting information as the Company may request.
 

 12.
  NWT will keep and maintain, in accordance with GAAP, full, clear and accurate books, records and accounts relating to the sale of products and services of the NWT Business. NWT will permit the Company to examine the books, records and accounts, on reasonable notice, for the purpose of determining the Royalty due and payable to the Company.  Should any examination of the books, records and accounts by the Company determine a discrepancy of 5% or more in the Company’s favor, then NWT will immediately pay the amount of the discrepancy to the Company.
 

 13.
 The Royalty is exclusive of all federal, provincial, state, municipal and other government excise, sales and use taxes or assessments now in force or which may be enacted in the future.
 

 14.
 Except as otherwise specified in this Agreement or agreed to by the parties, each party will be solely responsible for its out-of-pocket expenses incurred in the performance of its obligations under this Agreement.
 

 15.
 NWT may buy out the Company’s Royalty rights and interest at any time for a payment of one million dollars ($1,000,000), without credit for any amounts previously paid to the Company under the Royalty (the “Royalty Buyout”). Upon the Company’s receipt of the Royalty Buyout, all of the Company’s rights and interest to the Royalty end.
 

 CLOSING
 

 16.
 Closing.  The completion of the transaction of purchase and sale contemplated in this Agreement (the “Closing”) will take place at a time and place to be mutually agreed upon by the parties and will be effective as of 3:00 p.m. PST on December 2, 2013 (the “Closing Date”).
 

 17.
 The Company’s Documents.  At the Closing, the Company will tender to the Acquiring Party:
 

 a.
 The share certificate representing the Purchased Shares, if any, duly endorsed for transfer;
 

 b.
 A copy of the resolution(s) of the directors of Poly Shield Technologies, Inc. authorizing and approving this Agreement and the transactions contemplated herein;
 

 c.
 All corporate records and seals and books of account of New World Technologies Group, Inc. including, without limiting the generality of the foregoing, record books, share register books, share certificates and annual reports for New World Technologies Group, Inc.;
 

 -13-
 

 
 
 d.
 Transfer to the Acquiring Party all banking authority for all existing bank accounts of New World Technologies Group, Inc., any banking resolution as may be required by the bank, all bank checks in possession of the Company or its agents or representatives pertaining to the New World Technologies Group, Inc. bank account(s), and on-line banking authorization, user identification and password to the New World Technologies Group, Inc. bank account(s); and 
 

 e.
 All such other documents and instruments as the Acquiring Party may reasonably request in order to give effect to the purposes of this Agreement and to consummate the transactions contemplated hereby.
 

 18.
 Acquiring Party’s Documents.  At the Closing, the Acquiring Party will tender to the Company:
 

 a.
 $1.00 (one dollar) representing consideration for the purchase of all shares of New World Technologies Group, Inc.; and
 

 b.
 All such other documents and instruments as the Company may reasonably request in order to give effect to the purposes of this Agreement and to consummate the transactions contemplated hereby.
 

 CONDITIONS PRECEDENT
 

 19.
 Conditions Precedent in Favor of the Acquiring Party.  All obligations of the Acquiring Party under this Agreement are subject to the fulfillment at, or prior to the Closing Date, of the following conditions:
 

 a.
 All of the representations and warranties of the Company set forth in this Agreement will be true and correct at the Closing Date notwithstanding any investigations or enquiries made by the Acquiring Party prior to the Closing Date;
 

 b.
 No laws are passed prior to Closing that would adversely affect the NWT Business;
 

 c.
 No adverse condition or action affecting the NWT Business that would materially adversely affect or reduce the value of the NWT Business as a whole;
 

 d.
 No court action prohibiting the purchase of the Purchase Shares by the Acquiring Party or materially prohibiting or adversely affecting any right of NWT to carry on the NWT Business; and
 

 e.
 At Closing the Company will have performed all of its obligations under this Agreement that are required to be performed at or before Closing, and will not be in breach of any of those obligations.
 

 20.
 Conditions Precedent in Favor of the Company.  All obligations of the Company under this Agreement are subject to the fulfillment, at or prior to the Closing Date, of the following conditions:
 

 a.
 All of the representations and warranties of the Acquiring Person set forth in this Agreement will be true and correct at the Closing Date notwithstanding any investigations or enquiries made by the Company prior to the Closing Date; and
 

 b.
 At Closing the Acquiring Party will have performed all of its obligations under this Agreement that are required to be performed at or before Closing, and will not be in breach of any of those obligations.
 

 

 -14-
 

 
 

 INDEMNIFICATION
 

 21.
 Indemnification by the Acquiring Party:  Upon Closing, the Acquiring Party and NWT (each an “Indemnifier”) covenants and agrees to indemnify and save harmless the Company and each of the Company’s directors, officers, employees and agents (each an “Indemnified Party”) from and against all Claims, imposed on or incurred by or asserted against the Company in connection with or in any way related to, accruing from, resulting from, or arising out of any Claim related to the NWT Business that comes into existence at any time, including any and all Claims arising prior to or after the Closing Date, whether or not arising from actions or omissions taken or made by the Company or New World Technologies Group, Inc. whether before or after the date of this Agreement or the Closing Date, and all claims, demands, costs and expenses (including, without limitation, interest, penalties and reasonable legal fees, disbursements and charges on a solicitor and his own client basis) in respect of the foregoing.
 

 22.
 Notice of Claim.  If any Claim is brought against an Indemnified Party in respect of which this indemnification may apply, the Indemnified Party will notify the Indemnifier in writing, and the Indemnifier will assume the defence thereof, including the retaining of counsel and the payment of all expenses.  In addition, the Indemnified Party will have the right to retain separate counsel for any such Claim and participate in the defence thereof, and the fees and expenses of such separate counsel will also be at the expense of the Indemnifier.  Any failure by the Indemnified Party to notify the Indemnifier will not relieve the indemnifier from its obligations hereunder, except to the extent that such failure will have actually prejudiced the defence of such Claim.
 

 23.
 Settlement of Claim.  The Indemnifier agrees not to settle or compromise or consent to the entry of any judgment in any Claim without first obtaining the written consent of all Indemnified Parties, which consent will not be unreasonably withheld.  Such a settlement, compromise or consent will include an unconditional release of the Indemnifier and each of the Indemnified Parties from all liability arising out of such Claim.
 

 24.
 Obligations of Indemnifier.  The indemnity and contribution obligations of the Indemnifiers will be in addition to and not in substitution for any liability that the Indemnifiers or any other Person may otherwise have (whether arising under contract or at law or otherwise), will extend upon the same terms and conditions to all Indemnified Parties, and will be binding upon and enure to the benefit of the respective successors, assigns, heirs and personal representatives of each of the Indemnifiers and the Indemnified Parties.
 

 NON-COMPETITION
 

 25.
 Events of Competition by Company.  Upon Closing, the Company covenants and agrees with NWT that it will not, during the Restrictive Period, directly or indirectly, without the prior written consent of NWT:
 

 a.
        Engage in Competition relating to the NWT Business; or
 

 b.
 Solicit or induce the employment of any individual who is, or has been at any time during the Restrictive Period, an employee, consultant, or independent contractor of NWT or any affiliate thereof for any purpose related to the NWT Business.
 

 26.
 Specific Knowledge.  The agreements made by the Company in Section 25 are made by the Company acknowledging that it has specific knowledge of the NWT Business and that New World Technologies Group, Inc. carries on and intends to carry on the NWT Business.
 

 -15-
 

 
 

 27.
 Remedies.  The Company acknowledges that any remedies in the form of damages for breach of Section 25 will be inadequate and NWT will be entitled to injunctive relief for any breach of this section.
 

 28.
 Waiver.  The Company agrees and acknowledges that all restrictions in this section are reasonable and valid.  The Company waives all defenses to the strict enforcement of this section by NWT.
 

 29.
 Events of Competition by Acquiring Party and NWT.  Upon Closing, the Acquiring Party and NWT each covenants and agrees with the Company that they will not, during the Restrictive Period, directly or indirectly, without the prior written consent of the Company:
 

 a.
        Engage in Competition relating to the Poly Shield Business; or
 

 b.
 Solicit or induce the employment of any individual who is, or has been at any time during the Restrictive Period, an employee, consultant, or independent contractor of the Company or any affiliate thereof for any purpose.
 

 30.
 Specific Knowledge.  The agreements made by the Acquiring Party and NWT in Section 29 are made by each of them acknowledging that they have specific knowledge of the Poly Shield Business and that Poly Shield Technologies, Inc. carries on and intends to carry on the Poly Shield Business.
 

 31.
 Remedies.  The Acquiring Party and NWT each acknowledges that any remedies in the form of damages for breach of this section will be inadequate and the Company will be entitled to injunctive relief for any breach of Section 29.
 

 32.
 Waiver.  The Acquiring Party and NWT each agrees and acknowledges that all restrictions in this section are reasonable and valid.  The Acquiring Party and NWT each waives all defenses to the strict enforcement of this section by the Company.
 

 33.
 Amendment to Form.  If any of the agreements contained in this section are held unreasonable by a court of competent jurisdiction by reason of the area, duration, type, or scope of such agreement, then such agreement will be given effect to in such reduced form as may be deemed valid by such court.
 

 MISCELLANEOUS
 

 34.
 Time.  Time is expressly declared to be of the essence of this Agreement in respect of all payments to be made hereunder and all covenants and agreements to be performed and fulfilled.  Any extension of time under this Agreement or any agreement between the parties to postpone all or any part of this Agreement will not constitute an agreement to any other postponement and will not be deemed to be or to operate in law as a waiver that time is to be of the essence of this Agreement and time will remain of the essence of this Agreement.
 

 35.
 Notice.  Any notice, request, election or communication that must be given or delivered under this Agreement must be in writing and delivered to the receiving party at the receiving party’s address as first set out above on page 1 or transmitted by fax and will be deemed to have been validly given when delivered to the receiving party’s address or transmitted by fax, unless the delivery or transmission is made after 4:00 p.m. PST or on a non-Business Day where it is received, in which case it is deemed to have been delivered or transmitted on the next Business Day.  Any payments of money may be delivered by mail or by hand or wired at the discretion of the delivering party.  Any delivery other than a written notice or a payment must be made by hand at the receiving party’s address.  Any party may change their address or fax number by giving the other party notice as provided in this section.
 

 -16-
 

 
 

 

 36.
 Reliance.  The parties acknowledge that they have each entered into this Agreement relying on the representations, warranties, covenants and agreements of the other and other terms and conditions of this Agreement, and that no information that is now known, which may become known, or that could upon investigation have become known to the any of the parties or any of their present or future officers, directors or professional advisors will in any way limit or extinguish any rights any of them may have against the other.
 

 37.
 Survival.  The covenants and agreements of the Company and the Acquiring Party contained in this Agreement and in any document or certificate given pursuant to it will survive the Closing of the transactions and remain in full force and effect for five years notwithstanding any waiver by the other unless such waiver was made after notice in writing by one party to the other specifying the breach.
 

 38.
 Fees.  Each of the parties will pay and be liable for their own fees and disbursements incurred by them in connection with this Agreement and the transactions contemplated herein, including without limitation the respective lawyers and consultants engaged by them.
 

 39.
 Further Instruments.  Both before and for a reasonable period after the Closing Date, the Company will execute and deliver all such further documents and instruments and do all acts and things as the Acquiring Party may either before or after the Closing Date reasonably require to carry out the full intent and meaning of this Agreement and to assure to the Acquiring Party the Purchased Shares.  The Acquiring Party will execute and deliver all such further documents and instruments and do all acts and things as the Company may either before or after the Closing Date reasonably require to carry out the full intent and meaning of this Agreement and to assure to the Company the Purchase Price.
 

 40.
 Entire Agreement.  This Agreement supersedes any oral or letter agreements between the parties and contains the whole agreement between the Company and the Acquiring Party in respect of the purchase and sale of the Purchased Shares and there are no warranties, representations, terms, conditions or collateral agreements, expressed, implied or statutory other than expressly contained in this Agreement.
 

 41.
 Severability.  If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect in any jurisdiction then such provision will be severed in that jurisdiction.  The remaining provisions of this Agreement will continue to be valid, legal and enforceable.  The severed provision will also continue to be valid, legal and enforceable in all other jurisdictions where the validity, legality and enforceability of such severed provisions is not affected or impaired.  If possible, the invalid provision will be replaced by the legal provision that most closely achieves the intent of the invalid provision in that particular jurisdiction.
 

 42.
 Amendment.  This Agreement may not be amended orally.  Any amendment of this Agreement must be in writing and signed by the parties.
 

 43.
 Binding Effect.  This Agreement will enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns.
 

 44.
 Governing Law.  This Agreement and all provisions hereof will be governed by and construed in accordance with the laws of the State of Florida and the parties irrevocably attorn to the jurisdiction of the courts of the State of Florida.
 

 -17-
 

 
 

 45.
 Counterparts.  This Agreement may be executed in one or more counterparts, each of which when so executed will be deemed an original, and such counterparts together will constitute one in the same instrument.
 

 

 -- INTENTIONALLY LEFT BLANK – EXECUTION PAGE FOLLOWS –
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 -18-
 

 
 

 

 

 IN WITNESS WHEREOF the parties have hereunto set their hands and/or corporate seals on the day and year first above written.
 

 	 	
	 The Company:
	 The Acquiring Party:

	  
	  

	 POLY SHIELD TECHNOLOGIES, INC.

 	  

	  
	  

 	 By: /s/ Brad Eckenweiler
	 __/s/  Octavio Viveros

	  
	 Octavio Viveros, an individual

 	 Brad Eckenweiler, CEO
	  

 	 Print Name & Title:  
	  

	  
	  

	  
	  

	 NWT:
	  

	  
	  

	 NEW WORLD TECHNOLOGIES GROUP, INC.
	  

	  
	  

	 By: /s/ Douglas Faulkner
	  

	  
	  

	 J. Douglas Faulkner
	  

	 Chief Executive Officer  
	  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 -19-
 

 
 SCHEDULE “1”
 

 Schedule “1” to that certain Divestiture and Share Purchase Agreement
 between Poly Shield Technologies, Inc. and Octavio Viveros
 made effective as of the 2nd day of December, 2013.
 

 (number of pages including this one:  1)
 _____________________________________________________________________
  
 LIABILITIES 
 

 

 1.
 Inter-company loan evidenced by a Promissory Note due to Poly Shield Technologies, Inc. by New World Technologies Group, Inc. in the principal amount of $26,649, and bearing interest at an annual rate of 3.33%, and maturing on December 2, 2016; and
 

 2.
 Obligation to perform delivery of products and services in exchange for a deposit of $150,000 paid to New World Technologies Group, Inc. by Villa Regina Association, Inc., which obligation NWT agrees to assume upon execution of this Divestiture and Share Purchase Agreement.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 -20-
 

 
  SCHEDULE “2”
 

 Schedule “2” to that certain Divestiture and Share Purchase Agreement
 between Poly Shield Technologies, Inc. and Octavio Viveros
 made effective as of the 2nd day of December, 2013.
 

 (number of pages including this one:  1)
 _____________________________________________________________________
  
 BANK ACCOUNTS and POWERS OF ATTORNEY
 

 

 Bank Accounts
 

 Bank of America (Florida)
 Account Name:  New World Technologies Group, Inc.
 Account Number:  89805 9172175
 

 Merrill Lynch
 Account Name: New World Technologies Group, Inc.
 Account Number: WCMA 207-02363
 

 

 

 Powers of Attorney
 

 None.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 -21-
 

 
 SCHEDULE “3”
 

 Schedule “3” to that certain Divestiture and Share Purchase Agreement
 between Poly Shield Technologies, Inc. and Octavio Viveros
 made effective as of the 2nd day of December, 2013.
 

 (number of pages including this one:  1)
 _____________________________________________________________________
  
 LITIGATION
 

 

 None.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 -22-
 

 
 SCHEDULE “4”
 

 Schedule “4” to that certain Divestiture and Share Purchase Agreement
 between Poly Shield Technologies, Inc. and Octavio Viveros
 made effective as of the 2nd day of December, 2013.
 

 (number of pages including this one:  1)
 _____________________________________________________________________
  
 
 LICENSES AND PERMITS
 

 

 Licenses
 

 Business license from the City of Fort Lauderdale, Florida, effective until December 31, 2013.
 

 

 

 Permits
 

 None.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 -23-
 

 
 SCHEDULE “5”
 

 Schedule “5” to that certain Divestiture and Share Purchase Agreement
 between Poly Shield Technologies, Inc. and Octavio Viveros
 made effective as of the 2nd day of December, 2013.
 

 (number of pages including this one:  1)
 _____________________________________________________________________
  
 MATERIAL CONTRACTS
 

 

 1.
 Office lease: 888 S. Andrews Ave., Suite 201, Ft. Lauderdale, FL 33316
 a.
 Lessor:  Coon Holdings, Inc., 888 S. Andrews Ave., Suite 204, Ft. Lauderdale, FL 33316
 b.
 Duration:  12 months
 c.
 Commencement date:  July 1, 2013
 d.
 Termination date: June 30, 2014
 e.
 Security deposit paid:  $3,000
 f.
 Monthly lease payments: $3,180
 g.
 Total 12 month lease payments:  $38,160
 

 2.
 Warehouse lease: 1610 SW 3rd Ave., Ft. Lauderdale, FL 33315
 a.
 Lessor:  Boman Commercial Properties, LLC, P.O. Box 402593, Miami Beach, FL 33140
 b.
 Duration:  12 months
 c.
 Commencement date:  July 5, 2013
 d.
 Termination date: July 30, 2014
 e.
 Security Deposit paid:  $1,500
 f.
 Monthly lease payments: $1,500
 g.
 Total 12 month lease payments:  $18,000
 

 3.
 Promissory Note due to Poly Shield Technologies, Inc. by New World Technologies Group, Inc. in the principal amount of $26,649, bearing interest at an annual rate of 3.33% and due on December 2, 2016; and
 

 4.
 Agreement, not in writing as at the time of this Divestiture and Share Purchase Agreement, but construed and understood to be an obligation to perform delivery of products and services in exchange for a deposit of $150,000 paid to New World Technologies Group, Inc. by Villa Regina Association, Inc., which obligation the NWT agrees to assume upon execution of this Divestiture and Share Purchase Agreement.
 

 

 

 

 

 

 

 

 

 -24-Exhibit 4.7

Exhibit 4.7

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS.  SUCH SECURITIES MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT. COPIES OF THE AGREEMENTS COVERING THE PURCHASE OF THESE SECURITIES AND RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE OFFICE OF THE COMPANY.

December __, 2013

SYSOREX GLOBAL HOLDINGS CORP.

WARRANT TO PURCHASE COMMON STOCK

Void after December __, 2018

This certifies that, for value received Wellington Shields & Co., or its permitted transferees and assigns (the “Holder”) is entitled, subject to the terms set forth below, to purchase from Sysorex Global Holdings Corp., a Nevada corporation (the “Company”), that number of shares of the common stock, $0.001 par value ("Common Stock"), of the Company (the “Warrant Shares”), as constituted on the date hereof (the “Warrant Issue Date”), equal to an aggregate of 3% of the shares of Common Stock sold by the Company in in its initial public offering of Common Stock (the "Offering") (including any shares issued pursuant to the Holder's over-allotment option under the terms of the Offering) upon surrender hereof, at the principal office of the Company referred to below, with the Notice of Exercise attached hereto duly executed, and simultaneous payment therefor in lawful money of the United States or otherwise as hereinafter provided, at the Exercise Price as set forth in Section 2 below.  The number, character and Exercise Price of such shares of Common Stock subject to this Warrant to Purchase Common Stock (this “Warrant”) are subject to adjustment as provided below.  This Warrant is issued to the Holder in pursuant to the terms of an Underwriting Agreement between Holder and the Company and its subsidiaries thereof dated on or about the date of this Warrant.

1.

Term of Warrant.  Subject to the terms and conditions set forth herein, this Warrant shall be exercisable, in whole or in part, during the term (the “Term”) commencing 12 months following the Warrant Issue Date and ending at 5:00 p.m., Eastern Standard Time, on December __, 2018.

2.

Exercise Price.  The price at which this Warrant may be exercised shall be 125% of the offering price of the shares sold in the Offering, as adjusted from time to time pursuant to Sections 8 and 10 hereof (the “Exercise Price”).

3.

Exercise of Warrant.

(a)

Method of Exercise.  This Warrant is exercisable by the Holder in whole or in part, at any time, or from time to time, during the term hereof as described in Section 1 above, by the surrender of this Warrant and the Notice of Exercise annexed hereto duly completed and executed on behalf of the Holder, at the office of the Company (or such other office or agency of the Company as it may designate by notice in writing to the Holder at the address of the Holder appearing on the books of the Company), upon payment of the aggregate Exercise Price for the number of shares for which this Warrant is being exercised either (i) by cash or check, or (ii) by net exercise pursuant to Section 3(b) below.  Promptly after such exercise, the Company shall issue and deliver to the Holder a certificate or certificates representing the number of shares of Common Stock issuable upon such exercise.  Upon issuances by the Company in accordance with the terms of this Warrant, all such shares of Common Stock shall be validly issued, fully paid and non-assessable, and free from all taxes, liens and encumbrances with respect to the issuance thereof (except for any restrictions on sale imposed pursuant to federal or applicable state securities laws).  To the extent permitted by applicable law, this Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided herein, even if the Company's stock transfer books are at that time closed, and the Holder shall be treated for all purposes as the holder of record of the Warrant Shares to be issued upon such exercise as of the close of business on such date.  Upon any exercise of this Warrant for fewer than all Warrant Shares purchasable pursuant to the terms of this Warrant, the Company shall cancel this Warrant and execute and deliver a new Warrant or Warrants in substantially identical form for the remaining Warrant Shares.

1

(b)

Net Exercise.  If, at the date of calculation set forth below, the fair market value of one Warrant Share is greater than the Exercise Price per share set forth in Section 2 (as adjusted to the date of such calculation), then, in lieu of paying the Exercise Price by cash or check, Holder may elect to exercise all or a portion of the Warrant on a “net exercise” basis by so indicating in the Notice of Exercise delivered to the Company pursuant to Section 3(a) in which case the Company shall issue to Holder that number of Warrant Shares computed using the following formula:

X = Y (A-B)

Where: 

X = 

the number of Warrant Shares to be issued to Holder upon exercise;

Y =

the total number of Warrant Shares purchasable under the Warrant or, if Holder elects to exercise the Warrant in part, then the number of Warrant Shares as to which such Warrant is being exercised;

A =

the fair market value of one Warrant Share as determined by the Board of Directors of the Company in good faith in accordance with the terms of this Warrant;

B =

the Purchase Price per Warrant Share (as adjusted to the date of such calculation);

provided, however, that (i) in the event that the Warrant is exercised pursuant to this Section 3(b) at a time during which the Company is not a Public Company (as defined below), the fair market value per Warrant Share shall be based upon the fair market value of the Common Stock of the Company if sold as a going concern and without regard to any discount for the lack of liquidity or on the basis that the relevant securities do not constitute a majority or controlling interest in the Company; and (ii) in the event that the Warrant is exercised pursuant to this Section 3(b) while the Company is a Public Company, the fair market value per Warrant Share shall be the Market Price (as defined elsewhere herein) measured on the business day immediately prior to the date of exercise.  For purposes of this Warrant, the Company shall be a "Public Company" for so long it is a reporting company under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and its Common Stock is traded on a national securities exchange, including NASDAQ, the OTC Bulletin Board or on another trading market on which the Common Stock is quoted on a daily basis.  For purposes of this Warrant, "Fair Market Value" shall mean the fair market value per Warrant Share determined as set forth above.

(c)

No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional share shall be issued upon the exercise of this Warrant.  Any fractional shares shall be rounded to the nearest whole number.

(d)

Replacement of Warrant.  On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of loss, theft, or destruction, on delivery of an indemnity agreement (without bond) reasonably satisfactory in form and substance to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and amount.

4.

Rights of Shareholders.  Subject to Section 8 of this Warrant, the Holder shall not be entitled to vote or receive dividends or be deemed the holder of Common Stock or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such, any of the rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value, or change of stock to no par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise until the Warrant shall have been exercised and the shares of Common Stock purchasable upon the exercise hereof shall have been issued, as provided herein.

5.

Successors and Assigns.  

(a)

This Warrant and the Warrant Shares may not be transferred or assigned in whole or in part for a period of 12 months from the effective date of the Company's Registration Statement in connection with the Offering unless to any officer or director of Holder or any general partner of Holder, any partner of Holder, any affiliate of Holder or a partner of an affiliate or any corporation, partnership, limited liability company or other entity or person controlling, controlled by, or under common control with Holder or to any underwriter or selected dealer participating in the Offering or any of their officers or directors, in each case in accordance with FINRA Conduct Rule 5110(g)(1). Holder shall not engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the Warrant or the Warrant Shares for a period of 180 days from the date of the Registration Statement in connection with the Offering except as provided for in FINRA Rule 5110(g)(2).  Subject to any applicable transfer restrictions, the terms and provisions of this Warrant shall inure to the benefit of, and be binding upon, the Company and the holders hereof and their respective successors and assigns.  Should the Warrant be transferred in part such that the Warrant Shares are held by more than two transferees, the Company and the holders of a majority of the Warrant Shares can amend the terms of the Warrant for all warrant holders.

2

(b)

This Warrant and the Warrant Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following form: 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.  TRANSFER OF THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER ARE SUBJECT TO RESTRICTIONS ON TRANSFER OR ASSIGNMENT.

6.

Reservation of Stock; Opinions.  The Company covenants that during the term this Warrant is exercisable, the Company will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of Common Stock upon the exercise of this Warrant.  The Company further covenants that all shares that may be issued upon the exercise of rights represented by this Warrant and payment of the applicable Exercise Price, all as set forth herein, will be free from all taxes, liens, and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously or otherwise specified herein).  The Company agrees that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock upon the exercise of this Warrant.  In connection with any exercise of this Warrant, the Company agrees to cause its counsel to render such customary legal opinions regarding the issuance and validity of the Warrant Shares and compliance with applicable securities laws as may be reasonably requested by Holder or as may be required by the Company's transfer agent or any broker of Holder.

7.

Amendments and Waivers.  Any term of this Warrant may be amended and the observance of any term of this Warrant may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Holder.   No waivers of or exceptions to any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision. Notwithstanding the foregoing, any provision of this Warrant may be amended or waived by written consent of both the Holder and Company.

8.

Adjustments.  The Exercise Price and the number of shares purchasable hereunder are subject to adjustment from time to time as follows:

(a)

Reclassification, etc.  If the Company at any time while this Warrant, or any portion thereof, remains outstanding and unexpired shall, by reclassification of securities or otherwise, change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities which were subject to the purchase rights under this Warrant immediately prior to such reclassification or other change and the Exercise Price therefor shall be appropriately adjusted, all subject to further adjustment as provided in this Section 8.

(b)

Split, Subdivision or Combination of Shares.  If the Company at any time while this Warrant, or any portion hereof, remains outstanding and unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, into a different number of securities of the same class, the Exercise Price for such securities shall be proportionately decreased and the number of securities issuable upon exercise proportionately increased in the case of a split or subdivision or the Exercise Price of such securities shall be proportionately increased and the number of securities issuable upon exercise proportionately decreased in the case of a combination.

(c)

Adjustments for Dividends in Stock or Other Securities or Property.  If, while this Warrant, or any portion hereof, remains outstanding and unexpired the holders of the securities as to which purchase rights under this Warrant exist at the time shall have received, or, on or after the record date fixed for the determination of eligible shareholders, shall have become entitled to receive, without payment therefor, other or additional stock or other securities or property (other than cash) of the Company by way of dividend, then and in each case, this Warrant shall represent the right to acquire, in addition to the number of shares of the security receivable upon the exercise of this Warrant, and without payment of any additional consideration thereof, the amount of such other or additional stock or other securities or property (other than cash) of the Company which such holder would hold on the date of such exercise had it been the holder of record of the security receivable upon exercise of this Warrant on the date hereof and had thereafter, during the period from the date hereof to and including the date of such exercise, retained such shares and/or all other additional stock available by it as aforesaid during such period, giving effect to all adjustments called for during such period by the provisions of this Section 8.  The Company agrees that so long as any portion of this Warrant remains outstanding, it shall not pay any cash dividends on any securities as to which purchase rights under this Warrant exist at the time without providing at least ten days prior written notice of the record date of such dividend.

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(d)

Rounding.  All calculations under this Section 8 shall be made to the nearest share.

(e)

Certificate as to Adjustments.  Upon the occurrence of each adjustment or readjustment pursuant to Section 8 hereof, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of this Warrant a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based.  The Company shall, upon the written request, at any time, of any such holder, furnish or cause to be furnished to such holder a like certificate setting forth:  (i) such adjustments and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the number of shares and the amount, if any, of other property which at the time would be received upon the exercise of the Warrant.

9.

No Impairment.  The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all of the provisions of Section 8 and in the taking of all such action as may be reasonably necessary or appropriate in order to protect the rights of the holders of this Warrant against impairment.

10.

Notices of Record Date.  In the event of any taking by the Company of a record of the holders of Common Stock for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend) or other distribution, any right, as a class, to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other securities or property or to receive any other right as a class, the Company shall notify Holder at least ten (10) days prior to such record date, a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution or right, and the amount and character of such dividend, distribution or right.

11.

Governing Law.  This Warrant shall be governed by the internal laws of the State of Nevada applicable to contracts made between residents of the State of Nevada and without regard to any conflict of law principles.

12.

Notices.  All notices required under this Warrant shall be deemed to have been given or made for all purposes (i) upon personal delivery, (ii) upon confirmation receipt that the communication was successfully sent to the applicable number if sent by facsimile; (iii) one day after being sent, when sent by professional overnight courier service, or (iv) five days after posting when sent by registered or certified mail to either party hereto at the address set forth below or at such other address as either party may designate by notice pursuant to this Section 12.

If to the Company:

Sysorex Global Holdings Corp.

3375 Scott Blvd., Suite 440

Santa Clara, CA 95054

Attention: Nadir Ali, CEO

with a copy to:

Davidoff Hutcher & Citron, LLP

605 Third Avenue

New York, New York 10158.

Attn: Elliot H. Lutzker, Esq.

If to the Holder:

Wellington Shields & Co. LLC

140 Broadway, 44th Floor

NY, NY 10005

Attn: Edward Cabrera, Head of Investment Banking and Syndicate Manager

with a copy to:

Akerman LLP

750 Ninth Street, N.W.

Suite 750

Washington, D.C. 20001

Attn: Ernest M. Stern, Esq.

12.

Captions.  The Section and subsection headings of this Warrant are inserted for convenience only and shall not constitute a part of this Warrant in construing or interpreting any provision hereof.

[Signature Page Follows]

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IN WITNESS HEREOF, SYSOREX GLOBAL HOLDINGS CORP. has caused this Warrant to be executed by its officer thereunto duly authorized.

Dated: December __, 2013

SYSOREX GLOBAL HOLDINGS CORP., a Nevada corporation

By:                                                

Name: Nadir Ali

Title: CEO

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NOTICE OF EXERCISE

(to be signed only on exercise of Warrant)

To:

Sysorex Global Holdings Corp.

(1)

The undersigned hereby irrevocably elects to purchase _________________* shares of common stock of SYSOREX GLOBAL HOLDINGS CORP. pursuant to the terms of the attached Warrant and tenders herewith payment of the purchase price for such shares in full; or

Exercise the attached Warrant with respect to _________________ shares of common stock of SYSOREX GLOBAL HOLDINGS CORP., pursuant to the net exercise provisions of Section 3(b) of the attached Warrant; (2) In exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of common stock are being acquired solely for the account of the undersigned and not as a nominee for any other party, and for investment, and that the undersigned will not offer, sell, or otherwise dispose of any such shares of common stock except under circumstances that will not result in a violation of any federal securities laws, including without limitation the Securities Act of 1933, as amended, any state securities laws or any applicable securities laws of foreign jurisdictions, or any rules or regulations promulgated thereunder.

					
	 
	 
	 
	[NAME]

	 
	 
	 
	 
	 

	Date:

	 
	 
	By:

	 

	 
	 
	 
	 
	 

	 
	 
	 
	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

                                      

 

*   Insert here the number of shares as to which the Warrant is being exercised.

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