SEC Contract Filing

Filing Date: 2015-01-30

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>f8k012715_ex10z1.htm
<DESCRIPTION>EXHIBIT 10.1 EXCHANGE AGREEMENT
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<TITLE>Exhibit 10.1 Exchange Agreement</TITLE>
<META NAME="author" CONTENT="Todd Pitcher">
<META NAME="date" CONTENT="01/27/2015">
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<A NAME="page_1"></A><DIV style="width:720px"><P style="margin:0px" align=right><B>EXHIBIT 10.1</B></P>
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<P style="margin:0px" align=center><B>EXCHANGE AGREEMENT</B></P>
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<P style="margin:0px" align=justify>THIS EXCHANGE AGREEMENT (the &#147;Agreement&#148;) is made this 13 day of January, 2015 by and among Stuart King Capital Corp., a Delaware corporation (&#147;Herein after referred to as Pubco&#148;) on one hand, and Cloud Income Properties, Inc., a Nevada corporation (Herein after referred to as the &#147;Company&#148;) and the undersigned shareholders, each individuals, being the sole shareholders of the Company (the &#147;Company Shareholders&#148;), on the other hand.</P>
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<P style="margin:0px" align=center><B>BACKGROUND</B></P>
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<P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">A.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>The respective Boards of Directors of Pubco and the Company have determined that an acquisition of the Company&#146;s outstanding shares by Pubco through a voluntary exchange with the Company Shareholders (the &#147;Exchange&#148;), upon the terms and subject to the conditions set forth in this Agreement, would be fair and in the best interests of their respective shareholders and member, and such Boards of Directors, along with the Company Shareholders, have approved such Exchange, pursuant to which shares of the Company issued and outstanding immediately prior to the Effective Time (as defined in Section 1.04) (the &#147;Shares&#148;) will be exchanged (including by reservation for future issuances) for the right to receive 21,500,000 shares of restricted Rule 144 common stock of Pubco (the &#147;Exchange Shares&#148;).</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">B.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>At the Closing, the Company Shareholders&#146; ownership interest in Pubco shall represent approximately 80% of the issued and outstanding shares of Pubco.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">C.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>Pubco, the Company, and the Company Shareholders desire to make certain representations, warranties, covenants and agreements in connection with the Exchange and also to prescribe various conditions to the Exchange.</P>
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<P style="margin:0px" align=justify>NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Agreement, the parties agree as follows:</P>
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<P style="margin:0px" align=center><B>ARTICLE I</B></P>
<P style="margin:0px" align=center><B>THE EXCHANGE</B></P>
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<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left"><B>1.01</B></P>
<P style="margin:0px; text-indent:-2px" align=justify><B><U>Exchange</U></B>. Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the Nevada Revised Statutes (&#147;<B>Nevada Statutes</B>&#148;), at the Closing (as hereinafter defined), the parties shall do the following:</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(a)</P>
<P style="margin:0px; text-indent:-2px" align=justify>The Company Shareholders will sell, convey, assign, and transfer the Shares to Pubco by delivering to Pubco a share certificate issued in the name of Pubco evidencing the Shares (the &#147;<B>Share Certificate</B>&#148;). The Shares transferred to Pubco at the Closing shall constitute 100% of the issued and outstanding equity interests of the Company.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(b)</P>
<P style="margin:0px; text-indent:-2px" align=justify>As consideration for its acquisition of the Shares, Pubco shall issue the Exchange Shares to the Company Shareholders by delivering a share certificate to the Company Shareholders registered in the name of the Company Shareholders evidencing the Exchange Shares (the &#147;<B>Exchange Shares Certificate</B>&#148;). The Exchange Shares shall equal no less than 80% of the outstanding shares of Pubco&#146;s common stock at the time of Closing.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left"><B>1.02</B></P>
<P style="margin:0px; text-indent:-2px" align=justify><B><U>Effect of the Exchange</U></B>. The Exchange shall have the effects set forth in the applicable provisions of the Nevada Statutes.<A NAME="page_2"></A></P>
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<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left"><B>1.03</B></P>
<P style="margin:0px; text-indent:-2px" align=justify><B><U>Closing</U></B>. Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to Article VI and subject to the satisfaction or waiver of the conditions set forth in Article V, the