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Share Exchange Agreement

 

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Title:

Share Exchange Agreement

Entities:

C.K. Howe Discretionary Settlement 2004; Loeb & Loeb

Date:

2004

Size:

Preview shows 9KB of 199KB total

Price:

$44

ID:

#1955605

 

 

► M&A ► Exchange ► Share Exchange Agreements
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                            SHARE EXCHANGE AGREEMENT


BY AND AMONG

SUNNINGDALE, INC.,

THE STOCKHOLDERS OF ADVANCED ALUMINIUM GROUP, LTD.,

ADVANCED ALUMINIUM GROUP, LTD.,

AND

KEATING REVERSE MERGER FUND, LLC

DATED AS OF SEPTEMBER 22, 2004

{PAGE}

SHARE EXCHANGE AGREEMENT

THIS SHARE EXCHANGE AGREEMENT (the "Agreement") is made and entered into
as of September 22, 2004, by and among Sunningdale Inc., a Delaware corporation
(the "Buyer"), Keating Reverse Merger Fund, LLC, a Delaware limited liability
company (the "KRM Fund"), Advanced Aluminium Group, Ltd., a corporation formed
and organized under the laws of the United Kingdom ("Company"), and each of the
persons listed under the caption "Stockholders" on the signature page hereof,
such persons being all of the stockholders of Company. The Stockholders shall be
referred to herein collectively as the "Stockholders" and individually as the
"Stockholder".

RECITALS

A. Stockholders own all of the Shares (as defined in Section 1.1) of the
Company. B. The KRM Fund owns the majority of the issued and outstanding shares
of common stock of Buyer. C. Buyer desires to purchase all of the Shares from
the Stockholders, and the Stockholders desire to sell the Shares to Buyer, on
the terms and conditions hereinafter set forth.

D. As a condition and inducement to Buyer's and the KRM Fund's willingness
to enter into this Agreement, the Stockholders will, at Closing (as defined in
Section 1.2) enter into a voting agreement in substantially the form attached
hereto as Exhibit A (the "Voting Agreement").

E. The parties intend, by executing this Agreement, to adopt a plan of
reorganization within the meaning of Section 368 of the Internal Revenue Code of
1986, as amended (the "Code").

NOW, THEREFORE, in consideration of the covenants, promises and
representations set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree
as follows:

ARTICLE I

SALE AND PURCHASE OF SHARES

1.1 Sale and Purchase. At the Closing and subject to and upon the terms
and conditions of this Agreement, the Stockholders agree to sell, transfer and
assign to Buyer, and Buyer agrees to purchase from the Stockholders, all of the
shares of Company Common Stock (as defined in Section 3.3) owned by the
Stockholders as specifically set forth on Schedule 1.1 hereto ("Shares"). As of
Closing, the Shares shall constitute all of the issued and outstanding shares of
Company Common Stock. The sale and purchase of Shares contemplated hereunder
shall be referred to herein as the "Transaction".

{PAGE}

1.2 Closing. Unless this Agreement shall have been terminated pursuant to
Article IX hereof, the closing of the Transaction (the "Closing") shall take
place at the offices of Loeb & Loeb LLP, 345 Park Avenue, New York, New York
10154 at a time and date to be specified by the parties, which shall be no later
than the third business day after the satisfaction or waiver of the conditions
set forth in Article VII, or at such other time, date and location as the
parties hereto agree in writing (the "Closing Date").

1.3 Purchase Price. The aggregate purchase price ("Purchase Price") for
the Shares shall be Two Million Two Hundred Ninety Five Thousand (2,295,000)
shares of common stock of Buyer ("Buyer's Shares"), which shall represent ninety
percent (90%) of the issued and outstanding shares of common stock of Buyer,
immediately following the Closing.

1.4 Allocation of Buyer's Shares. At the Closing, the Buyer's Shares to be
issued to the Stockholders shall be issued to the respective Stockholders; (i)
in proportion to their respective ownership of the Shares as described in
Schedule 1.1 hereto, and (ii) in accordance with the provisions of Section 1.9
hereof.

1.5 Delivery of Certificates Representing the Shares. At Closing, the
Stockholders shall deliver the certificate(s) representing the Shares, duly
endorsed to Buyer or accompanied by stock powers duly endorsed to Buyer, with
each Stockholder's signature medallion guaranteed by a national bank and with
(i) all such other documents as may be required to vest in Buyer good and
marketable title to the Shares free and clear of any and all Liens (as defined
in Section 2.3 hereof) and (ii) all necessary stock transfer and any other
required documentary stamps. The Stockholders shall cause the Company to
recognize and record the transfers described in this Section 1.5 on its transfer
books.

1.6 Issuance of Certificates Representing Buyer's Shares. At Closing,
Buyer shall cause the Buyer's Shares to be issued to the Stockholders as
provided in Section 1.4 above. The Buyer's Shares, when issued, shall be
restricted shares and may not be sold, transferred or otherwise disposed of by
the Stockholders without registration under the Securities Act of 1933, as
amended ("Securities Act") or an available exemption from registration under the
Securities Act. The certificates representing the Buyer's Shares will contain
the appropriate restrictive legends. The Buyer shall cause Corporate Stock
Transfer (the "Transfer Agent") to recognize and record the transfers described
in this Section 1.6 on its transfer books, and Buyer shall issue appropriate
stop-transfer instructions to the Transfer Agent with respect to the Buyer's
Shares. 1.7 Tax Consequences. It is intended by the parties hereto that the
Transaction shall constitute a reorganization within the meaning of Section 368
of the Code. The parties hereto adopt this Agreement as a "plan of
reorganization" within the meaning of Sections 1.368-2(g) and 1.368-3(a) of the
United States Income Tax Regulations.

1.8 Taking of Necessary Action; Further Action. 1.9 If, at any time after
the Closing, any further action is necessary or desirable to carry out the
purposes of this Agreement and to vest Buyer with full right, title and
possession to the Shares, the Stockholders will take all such lawful and
necessary action.


2
{PAGE}

1.9 Transaction Deposit. Upon execution of this Agreement, the Company
shall pay Buyer a $50,000 deposit ("First Deposit"). In the event the Company
fails to perform and satisfy its obligations to deliver to Buyer the Financial
Data (as defined below), on or before the Compliance Date (as defined below),
the Company shall pay to Buyer an additional $50,000 ("Second Deposit") on or
before the Compliance Date. Upon payment of the Second Deposit by Company in
accordance with this Section 1.9, the original Compliance Date shall be extended
by thirty (30) days. The First Deposit and Second Deposit shall be referred to
herein collectively as the "Deposits"). The Deposits shall be held by Buyer in
accordance with Sections 6.14 and 9.2 of this Agreement.

For purposes of this Agreement, (i) the term "Compliance Date" shall mean
the date which is thirty (30) days after the date of this Agreement, subject to
extension as provided for in this Section 1.9, and (ii) the term "Financial
Data" shall mean the Company U.S. GAAP Financial Statements (as defined in
Section 6.1), the Company Proforma Financial Statements (as defined in Section
6.2), the Questionnaires (as defined in Section 6.3), the Accountant Undertaking

 

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