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AND EXCHANGE COMMISSION
to Section 13 or 15 (d) of the Securities Exchange Act of 1934
of Report (date of earliest event reported): December 10, 2020 (December 9, 2020)
name of Registrant as specified in its charter)
or other jurisdiction of
302, Shizhi Commercial Hotel
of principal executive offices)
telephone number, including area code: +86 139 4977 8662
registered pursuant to Section 12(b) of the Act:
of each class
of each exchange on which
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant
under any of the following provisions:
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
growth company ☐
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01. Entry
into a Material Definitive Agreement
December 9, 2020, Gushen Inc., a Nevada corporation (the “Company”), Custodian Ventures LLC, a Wyoming limited liability
company (“Custodian”) and certain investors (“Purchasers”) entered into a Stock Purchase Agreement (the
“SPA”), pursuant to which the Purchasers acquired 30 million shares of Series A preferred stock (the “Shares”),
each convertible into 10 shares of common stock, from Custodian for an aggregate purchase price of $525,000. The transaction contemplated
in the SPA closed on the same day (the “Closing”) subject to certain post-closing delivery as set forth in the SPA.
connection with the SPA, on the same day, the Company, Custodian and Gushen Holding Limited, a Seychelles corporation (“Spin-Off
Subsidiary”), entered into a spin-off agreement (the “Spin-Off Agreement”). Pursuant to the Spin-Off Agreement,
Custodian received all of the issued and outstanding capital stock of Spin-Off Subsidiary at a nominal purchase price of $1. As
a result, Custodian becomes the sole equity owner of Spin-Off Subsidiary and the Company shall have no further interest in Spin-Off
Subsidiary. Immediately prior to the execution of the Spin-Off Agreement, Spin-Off Subsidiary had no operation.
form of the SPA and Spin-Off Agreement is attached hereto as Exhibit 10.1 and Exhibit 10.2 respectively. The foregoing is only
a brief description of the material terms of the SPA and the Spin-Off Agreement, and does not purport to be a complete description
of the rights and obligations of the parties thereunder and is qualified in its entirety by reference to such exhibit.
Item 2.01. Completion
of Acquisition or Disposition of Assets
information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 2.01 by reference.
Item 5.01. Changes in Control of Registrant
to the SPA, the Purchasers acquired Shares, representing approximately 91.18% of the voting power of the Company on as converted
basis, with respect to all of the shares of common stock and preferred stock, voting as a single class, with each share of common
stock entitles to 1 vote and each share of preferred stock entitles to 10 votes.
purchase price for the Shares was paid in cash. The consideration for the purchase of Shares was provided to the Purchasers from
their individual’s private funds. The purchase of Shares was the result of a privately negotiated transaction which consummation
resulted in a change of control of the Company.
shares of common stock was issued in the transaction.
connection with the transaction, Mr. David Lazar, the President, CEO, Treasurer, CFO, Secretary, sole director of the board of
the Company (the “Board”), resigned from all his positions with the Company.
with the Closing, Mr. Pengfei Zhou was appointed as the Company’s Chief Executive Officer, Chief Financial Officer, President,
Treasurer, Secretary and a director and chairman of the Board, effective upon the Closing of the transaction contemplated in the
Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
(a) Resignation of Directors and Officers
the Closing, Mr. David Lazar resigned from his positions as the President, CEO, Treasurer, CFO, Secretary, sole director of the
was no disagreement between Mr. David Lazar and the Company.
of Directors and Officers
closing, the following person was appointed as our directors and officers effective upon the Closing of the transaction contemplated
in the SPA:
Executive Officer, Chief Financial Officer, President, Treasurer, Secretary and a director and chairman of the Board
Pengfei Zhou, age 29, has served as the project manager and the assistant to the chairman of the board of Sanmenxia Jiangfeng
Earthwork Engineering Co., Ltd., a company that engages in construction business since September 2020, where Mr. Zhou is responsible
for coordinating civil engineering related projects. From December 2013 to July 2017, he served as the assistant to the chairman
of the board of Sanmenxia Yuchen Real Estate Co., Ltd., responsible for assisting with the chairman to participate in business
negotiations or related business activities. Mr. Zhou obtained his high school diploma from Sanmenxia City Third Senior High School.
Pengfei Zhou does not have any family relationship with any director or executive officer of the Company and has not been involved
in any transaction with the Company during the past two years that would require disclosure under Item 404(a) of Regulation S-K.
Statements and Exhibits.
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
December 10, 2020
This SPIN-OFF AGREEMENT,
dated as of December 9, 2020 (this “Agreement”), is entered into by and among Gushen Inc., (“Seller”),
Gushen Holding Limited, a Seychelles corporation (“Spin-Off Subsidiary”), and Custodian Ventures LLC, a Wyoming
limited liability company (“Buyer”).
R E C I T A L S:
is the owner of all of the issued and outstanding capital stock and equity interests of Spin-Off Subsidiary (the “Shares”);
Agreement is made in connection with the closing of a Securities Purchase Agreement, dated as of the date hereof (the “Purchase
Agreement”) between the Buyer, the Seller and other third parties listed in the Purchase Agreement;
desires to purchase the Shares from Seller, on the terms and subject to the conditions specified in this Agreement, on the terms
and subject to the conditions specified in this Agreement;
desires to sell and transfer the Shares to Buyer, on the terms and subject to the conditions specified in this Agreement;
in consideration of the premises and the covenants, promises and agreements herein set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending legally to be bound, agree as follows:
PURCHASE AND SALE OF SPIN-OFF SUBSIDIARY STOCK
and Sale of Shares. Subject to the terms and conditions provided below, Seller shall sell and transfer to Buyer and Buyer shall
purchase from Seller, on the Closing Date (as defined in Section 3.1), the Shares.
Consideration. The purchase price for the Shares shall be $1.00 (the “Share Consideration”).
The closing of the purchase and sale of the Shares (the “Closing”) shall take place remotely by electronic exchange
of signature pages, on the date hereof (the “Closing Date”).
of Shares. At the Closing, Seller shall cause the Spin-Off Subsidiary to appropriate book Buyer as the sole holder of all issued
and outstanding equity interest of the Spin-Off Subsidiary.
of Share Consideration. At the Closing, Buyer shall deliver a check to Seller payable to Seller at $1.00.
BUYER’S REPRESENTATIONS AND
Buyer represents and warrants to Seller that:
and Enforceability. Buyer has the power, authority and legal capacity to execute and deliver this Agreement and the documents
to be executed and delivered by Buyer at the Closing pursuant to the transactions contemplated this Agreement. This Agreement and
all such documents constitute valid and binding agreements of Buyer, enforceable in accordance with their terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance or similar laws affecting the enforcement
of creditors’ rights generally and subject to general principles of equity (regardless of whether enforcement is sought in
a proceeding of law or in equity).
Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby by Buyer will
result in the breach of any term or provision of, or constitute a default under, or violate any agreement, indenture, instrument,
order, law or regulation to which Buyer is a party or by which Buyer is bound.
SELLER’S REPRESENTATIONS AND
Seller represents and warrants to Buyer
and Good Standing. Seller is a corporation duly incorporated, validly existing, and in good standing under the laws of the
State of Nevada and is properly qualified to do business and is in good standing in each state in which it is required to be so
and Enforceability. Seller and Spin-Off Subsidiary have full power and authority to enter into this Agreement and to consummate
the transactions contemplated hereby and to perform its obligations hereunder. The execution and delivery of this Agreement and
the documents to be executed and delivered at the Closing pursuant to the transactions contemplated hereby, and performance in
accordance with the terms hereof and thereof, have been duly authorized by Seller and Spin-Off Subsidiary, including requisite
approval by Seller’s board of directors and shareholders, and approval by the sole shareholder of Spin-Off Subsidiary and
the board of directors of Spin-Off Subsidiary, and all such documents constitute valid and binding agreements of Seller and Spin-Off
Subsidiary enforceable in accordance with their terms.
Subsidiaries. Seller owns all of the issued and outstanding stock of Spin-Off Subsidiary. The Shares constitute all
of the issued and outstanding securities of Spin-Off Subsidiary. Seller does not have any subsidiaries or have any ownership interest
in any other Person, other than Spin-Off Subsidiary.
to Shares. Seller is the sole record and beneficial owner of the Shares. At Closing, Buyer will have good and marketable title
to the Shares, which Shares are, and at the Closing will be, free and clear of all options, warrants, pledges, claims, liens and
encumbrances, and any restrictions or limitations prohibiting or restricting transfer to Buyer. The Shares represent all of the
issued and outstanding securities of Spin-Off Subsidiary. Seller has good and marketable title to, and all other legal rights to
possess and use, sell, assign, transfer and convey the Shares, free and clear of all Liens. Upon consummation of the transactions
contemplated by this Agreement at the Closing, good and marketable title to the Shares, free and clear of all Liens (other than
Liens incurred or imposed by Buyer), will pass to Buyer. As used herein, “Lien” means any interest (including
any security interest), pledge, mortgage, lien, encumbrance, charge, claim or other right of third parties, including any spousal
interests (community or otherwise), whether created by law or in equity, including any such restriction on the use, voting, transfer,
receipt of income or other exercise of any attributes of ownership.
Obligations. Assuming this Agreement has been duly and validly authorized, executed and delivered by the parties hereto other
than the Seller and Spin-Off Subsidiary, this Agreement is duly authorized, executed and delivered by Seller and Spin-Off Subsidiary,
and constitutes the legal, valid and binding obligation of Seller and Spin-Off Subsidiary, enforceable against each of them in
accordance with its terms, except as such enforcement is limited by general equitable principles, or by bankruptcy, insolvency
and other similar laws affecting the enforcement of creditors rights generally.
to Carry Out Obligations. The execution and delivery of this Agreement by Seller and Spin-Off Subsidiary and the performance
by Seller and Spin-Off Subsidiary of its obligations hereunder will not cause, constitute, or conflict with or result in (a) any
breach or violation of any of the provisions of or constitute a default under any agreement to which such Seller or Spin-Off Subsidiary
is a party, or by which Seller or Spin-Off Subsidiary is bound, or (b) an event that would result in the creation or imposition
of any lien, charge, or encumbrance upon the Shares being sold by Seller pursuant to this Agreement.
Each party hereto shall bear its expenses separately incurred in connection with this Agreement and with the performance of its
Buyer, Spin-Off Subsidiary and their respective employees and agents shall each hold in strict confidence all Information concerning
the other party or parties in their possession or furnished by the other or the other’s Representative pursuant to this Agreement
with the same degree of care as such party utilizes as to such party’s own confidential information (except to the extent
that such Information is (i) in the public domain through no fault of such party or (ii) later lawfully acquired from any other
source by such party without, so such party’s knowledge, any breach of a confidentiality obligation), and each party shall
not release or disclose such Information to any other person, except such party’s auditors, attorneys, financial advisors,
bankers, other consultants and advisors or persons to whom such party has a valid obligation to disclose such Information, unless
compelled to disclose such Information by judicial or administrative process or, as advised by its counsel, by other requirements
Buyer and Spin-Off Subsidiary shall each use their best efforts to forward promptly to the other party all notices, claims, correspondence
and other materials which are received and determined to pertain to the other party.
of Spin-Off Subsidiary. Following the date hereof, Seller shall be released from and Buyer shall be responsible for any liability
of Spin-Off Subsidiary existing as of and beyond the Closing Date including any direct or indirect indebtedness, guaranty, endorsement,
claim, loss, damage, deficiency, cost, expense, obligation or responsibility, fixed or unfixed, known or unknown, asserted choate
or inchoate, liquidated or unliquidated, secured or unsecured (each, “Liability of Spin-Off Subsidiary”).
Further Assurances. Following the date hereof, Seller shall take such steps and actions, and provide such cooperation and
assistance to Buyer and Spin-Off Subsidiary and any of their successors, assigns and legal representatives, including the execution
and delivery of any affidavits, declarations, oaths, exhibits, assignments, powers of attorney, or other documents, as may be reasonably
necessary or appropriate to effect, evidence or perfect the sale of the Shares to Buyer or any assignee or successor thereof.
by Seller. From and after the Closing, Seller agrees, to indemnify the Buyer and Spin-Off Subsidiary and each of their respective
officers, directors, employees, stockholders, agents, representatives and Affiliates (collectively, the “Buyer Indemnified
Parties”), as applicable, against all Losses incurred by such Buyer Indemnified Parties, caused by (i) any breach of
any representation or warranty made by Seller in this Agreement or in any document or certificate delivered by Seller pursuant
to this Agreement; and (ii) any breach of any covenant or obligation of Seller in this Agreement or any documents attached or delivered
pursuant to this Agreement; and (iii) any fraud on behalf of Seller or any liability of Spin-Off Subsidiary which arose prior to
the Closing and which was not disclosed to Buyer by Seller. Notwithstanding any other provision of this Agreement: (1) Seller’s
aggregate liability in respect of all claims that the Buyer or Spin-Off Subsidiary may have against Seller pursuant to this Agreement
will not exceed one thousand ($1,000); and (2) Seller shall not have any liability for any breach of any representation, warranty,
covenant or other obligation of the Spin-Off Subsidiary set forth in this Agreement.
Capitalized terms used herein without definition have the meanings ascribed to them in the Securities Purchase Agreement.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been
duly given (i) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed,
(ii) mailed by certified or registered mail with postage prepaid, on the third (3rd) business day after the date on which it is
so mailed, or (iii) sent by facsimile transmission or email, without receipt of confirmation that such transmission has been received:
|(a)||If to Seller, addressed to:|
|3445 Lawrence Ave, Oceanside, New York, 11572|
|Attn: David Lazar|
|Title: President, CEO and CFO|
|(b)||If to Buyer or Spin-Off Subsidiary, addressed to:|
|Custodian Ventures LLC|
|3445 Lawrence Ave, Oceanside, New York, 11572|
|Attn: David Lazar|
|Email Address: David@activistinvestingllc.com|
or to such other address as any party hereto
shall specify pursuant to this Section 7.2 from time to time.
of Rights and Remedies. Except as otherwise provided herein, no delay of or omission in the exercise of any right, power or
remedy accruing to any party as a result of any breach or default by any other party under this Agreement shall impair any such
right, power or remedy, nor shall it be construed as a waiver of or acquiescence in any such breach or default, or of any similar
breach or default occurring later; nor shall any waiver of any single breach or default be deemed a waiver of any other breach
or default occurring before or after that waiver.
and Severability. In case any provision of this Agreement shall be invalid, illegal or unenforceable, it shall, to the extent
possible, be modified in such manner as to be valid, legal and enforceable but so as to most nearly retain the intent of the parties,
and if such modification is not possible, such provision shall be severed from this Agreement, and in either case the validity,
legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby.
Acts and Assurances. From and after the Closing, Seller, Buyer and Spin-Off Subsidiary agree that each will act in a manner
supporting compliance, including compliance by its Affiliates, with all of its obligations under this Agreement and, from time
to time, shall, at the request of another party hereto, and without further consideration, cause the execution and delivery of
such other instruments of conveyance, transfer, assignment or assumption and take such other action or execute such other documents
as such party may reasonably request in order more effectively to convey, transfer to and vest in Buyer, and to put Spin-Off Subsidiary
in possession of, all Shares and to convey, transfer to and vest in Buyer, the Shares, and, in the case of any contracts and rights
that cannot be effectively transferred without the consent or approval of another person that is unobtainable, to use its best
reasonable efforts to ensure that Spin-Off Subsidiary receives the benefits thereof to the maximum extent permissible in accordance
with applicable law or other applicable restrictions, and shall perform such other acts which may be reasonably necessary to effectuate
the purposes of this Agreement.
Agreement; Amendments. This Agreement contains the entire understanding of the parties relating to the subject matter contained
herein. This Agreement cannot be amended or changed except through a written instrument signed by all of the parties hereto.
No party may assign his, her or its rights or obligations hereunder, in whole or in part, without the prior written consent of
the other parties. This Agreement will be binding on and enforceable against all permitted successors and assignees.
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without giving effect
to principles of conflicts or choice of laws thereof.
This Agreement may be executed in one or more counterparts, with the same effect as if all parties had signed the same document.
Each such counterpart shall be an original, but all such counterparts taken together shall constitute a single agreement. In the
event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile
signature page was an original thereof.
Headings and Gender. The section headings used herein are inserted for reference purposes only and shall not in any way affect
the meaning or interpretation of this Agreement. All personal pronouns used in this Agreement shall include the other genders,
whether used in the masculine, feminine or neuter and the singular shall include the plural, and vice versa, whenever and as often
as may be appropriate.
to Jurisdiction; Process Agent; No Jury Trial.
party to the Agreement hereby submits to the jurisdiction of the Courts of State of Nevada, in any action arising out of or relating
to this Agreement, and agrees that all claims in respect of the action may be heard and determined in any such court. Each party
to the Agreement also agrees not to bring any action arising out of or relating to this Agreement in any other court. Each party
to the Agreement agrees that a final judgment in any action so brought will be conclusive and may be enforced by action on the
judgment or in any other manner provided at law or in equity. Each party to the Agreement waives any defense of inconvenient forum
to the maintenance of any action so brought and waives any bond, surety or other security that might be required of any other party
with respect thereto.
PARTY TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RIGHTS TO JURY TRIAL OF ANY DISPUTE BASED UPON OR ARISING OUT OF THIS AGREEMENT
OR ANY OTHER AGREEMENTS RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR ANY DEALINGS AMONG THEM RELATING TO THE TRANSACTIONS
CONTEMPLATED HEREBY. The scope of this waiver is intended to be all encompassing of any and all actions that may be filed in any
court and that relate to the subject matter of the transactions, including contract claims, tort claims, breach of duty claims
and all other common law and statutory claims. Each party to the Agreement hereby acknowledges that this waiver is a material inducement
to enter into a business relationship and that they will continue to rely on the waiver in their related future dealings. Each
party to the Agreement further represents and warrants that it has reviewed this waiver with its legal counsel, and that each knowingly
and voluntarily waives its jury trial rights following consultation with legal counsel. NOTWITHSTANDING ANYTHING TO THE CONTRARY
HEREIN, THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED ORALLY OR IN WRITING, AND THE WAIVER WILL APPLY TO ANY
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING HERETO. In
the event of commencement of any action, this Agreement may be filed as a written consent to trial by a court.
party hereto, respectively, on its own behalf and on behalf of its Affiliates (each such party and its Affiliates, a “Releasor”),
effective on the Closing Date: (i) irrevocably and unconditionally releases, waives and forever discharges each other party
to this Agreement and such other party’s respective officers, directors, stockholders, successors, Representatives and permitted
assigns (each, a “Releasee”), from any and all claims and Liabilities, but only to the extent arising prior
to the Closing (collectively all claims and Liabilities released pursuant to this Section 7.13(a)(i) are referred to as
the “Released Claims”); and (ii) irrevocably agrees to refrain from directly or indirectly asserting
any claim or demand or commencing (or causing to be commenced) any suit, action or proceeding of any kind against any of the Releasees,
based upon or in connection with any matter released or purported to be released pursuant to this Section 7.13(a).
the avoidance of doubt, this Section 7.13 does not constitute a release with respect to claims or Liabilities arising out
of, based on or resulting from this Agreement, the Purchase Agreement, or the agreements or exhibits attached hereto and thereto.
As used in this Agreement, “Liabilities” means, collectively, any debt, claim, cause of action, obligation,
[Signature page follows this page]
IN WITNESS WHEREOF,
the parties hereto have duly executed this Spin-Off Agreement as of the day and year first above written.
|By:||/s/ David Lazar|
|Title:||President, CEO and CFO|
|Gushen Holding Limited|
|By:||/s/ David Lazar|
|Title:||Acting Chief Executive Officer|
|Custodian Ventures LLC|
|By:||/s/ David Lazar|
STOCK PURCHASE AGREEMENT, effective as of the 9th day of December 2020 (the “Effective Date”) by and among
Custodian Ventures LLC, a Wyoming limited liability company (“Seller“), Pengfei Zhou, an individual and Zhaowei
Zhang, an individual (each, a “Buyer” and collectively, “Buyers”) and Gushen Inc., a Nevada
corporation (the “Company“).
Seller owns 30 million Series A Preferred Stock (the “Shares“) of the Company. This Agreement provides for the
acquisition of the Shares by Buyers for a total purchase price of U.S. Dollars of five hundred and twenty-five thousand ($525,000.00)
(the “Purchase Price”) on the terms and conditions set forth below.
Matthew McMurdo, Esq. from McMurdo Law Group, LLC acts as the escrow agent of this transaction.
THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth
and the mutual benefits to the parties to be derived therefrom, it is hereby agreed as follows:
AND PURCHASE OF THE SHARES
1.1 Closing. The purchase of the Shares shall be consummated at a closing (“Closing”) to take place
at 10:00 o’clock a.m., before December ___, 2020 unless extended by agreement of the parties hereto (the “Closing Date“).
Below are Seller’s wire instructions:
Name JP Morgan Chase Bank address 3285 Long Beach Rd, Oceanside NY 11572
# 021000021 Account # 259369285
Name: CUSTODIAN VENTURES LLC
Address 3445 Lawrence Ave Oceanside NY.11572
1.2 Sale and Purchase. Subject to the terms and conditions hereof, at the Closing, Seller agrees to sell and deliver
to Buyers, and Buyers agree to purchase from Seller, the Shares.
1.3 Payment of Purchase Price. The Purchase Price for the Shares shall be paid to Escrow Agent, among which
U.S. Dollars of five hundred thousand ($500,000) shall be released to Seller on the Closing Date and U.S. Dollars of twenty-five
thousand ($25,000) shall be released to Seller upon the receipt of FINRA approval of the intended Stock Split (defined below),
both pursuant to the wire instructions set forth in Section 1.1.
1.4 Delivery of Shares. Immediately prior to the Closing, Seller shall have already delivered a duly executed copy
of the unanimous written consent of the board of directors of the Company to authorize and approve the transfer of the Shares
and reissuance of the Shares under Buyers’ names in an customary form of book entry of such Shares under Buyers’ names
by the Company with the allocation set forth in in Appendix A of this Agreement.
1.5 Other Closing Deliveries. At the Closing, Seller and the Company shall deliver to Buyers a duly executed copy of
the unanimous written consent of the board of directors of Seller and the Company, respectively authorizing Seller and the Company
to enter into this Agreement and the transactions contemplated hereby. Seller, Buyers and the Company shall deliver such other
customary closing documents as may be reasonably requested by the other parties.
AND WARRANTIES OF SELLER
an inducement to and to obtain the reliance of Buyers, Seller represents and warrants to Buyers that each of the following are
true, correct, and complete as of the Effective Date and will be correct and complete as of the Closing. All references in this
Agreement to “knowledge of Seller” shall mean the actual knowledge, after reasonable investigation, of Seller
and its sole manager, David Lazar. Seller has no officers or any member or manager other than David Lazar.
2.1 No Conflict, Authority. The execution of this Agreement and the consummation of the
transactions contemplated by this Agreement will not result in contravene or conflict with or the material breach of any term
or provision of, or constitute an event of default under, any material debt instrument, which may include an indenture, mortgage,
deed of trust or other contract, agreement or instrument to which Seller is a party or to which the Shares are subject, nor result
in contravene, conflict with or a violation of, any Law or Order to which Seller is a party or to which the Shares are subject.
Seller has full power, authority and legal right and has taken all action required by law or otherwise to authorize the execution
and delivery of this Agreement.
2.2 Title to the Shares. Seller owns, of record and beneficially, and has good valid and indefeasible title to the
Shares of the Company, free and clear of all liens, encumbrances, pledges, claims, options, charges and assessments of any nature
whatsoever, with full right and lawful authority and right to transfer the Shares to Buyers. No person has any preemptive rights
or rights of first refusal with respect to any of the Shares. There exists no voting agreement, voting trust, or outstanding proxy
with respect to any of the Shares. There are no outstanding rights, options, warrants, calls, commitments, or any other agreements
of any character, whether oral or written, with respect to the Shares.
2.3 Tax Matters. The Shares are not subject to any lien arising in connection with any
failure or alleged failure to pay tax. There are no pending, threatened, or proposed audits, assessments or claims from any tax
authority for deficiencies, penalties, or interest with respect to Seller that would affect the Shares.
2.4 Due Diligence Materials Provided. Seller has provided Buyers with true and accurate copies of all corporate books
and records relating to the Company in Seller’s possession or control, save and except those additional books and records.
Seller does not have any actual knowledge of any liability or obligation of the Company other than is reflected in said books
2.5 Brokers and Finders. Seller represents and warrants that Seller has made no agreements involving any fees of any
type that relate to this Agreement and that would involve Buyers, including but not limited to broker’s fee, finder’s
fees or any similar compensation arrangement.
2.6 Authorized Shares. As of the Closing (i) the total number of authorized shares of common stock of the Company shall
be 600,000,000 par value $0.0001 per share, and that the total number of shares of common stock of the Company issued and outstanding
shall be 26,998,130; and (ii) the total number of authorized shares of preferred stock of the Company shall be 200,000,000, par
value $0.0001 per share, and that the total number of shares of said preferred stock of the Company issued and outstanding shall
2.7 Litigation. To the knowledge of Seller, (i) there is no claim, legal action, suit, arbitration, investigation or
hearing, notice of claims or other legal, administrative or governmental proceedings pending or, to the knowledge of Seller, threatened
against Seller or the Company; and (ii) there is no continuing order, injunction, or decree of any court, arbitrator, or governmental
or administrative authority to which Seller or the Company is a party or to which it or any of its assets is subject.
AND WARRANTIES OF BUYERS
an inducement to and to obtain the reliance of Seller and the Company, each Buyer represents and warrants to Seller and the Company
that each of the following are true, correct, and complete as of the Effective Date and will be correct and complete as of the
Closing. All references in this Agreement to “knowledge of Buyers” shall mean the actual knowledge, after reasonable
3.1 No Conflict, Authority. The execution of this Agreement and the consummation of the
transactions contemplated by this Agreement will not result in contravene or conflict with or the material breach of any term
or provision of, or constitute an event of default under, any material debt instrument, which may include an indenture, mortgage,
deed of trust or other contract, agreement or instrument to which each Buyer is a party , nor result in contravene, conflict with
or a violation of, any Law or Order to which each Buyer is a party. Each Buyer has full power, authority and legal right and has
taken all action required by law or otherwise to authorize the execution and delivery of this Agreement.
3.2 Restricted Shares. Each Buyer acknowledges that the sale of Shares pursuant to this Agreement has not been registered
under the Securities Act or any state securities laws, are being offered and sold to in reliance upon an exemption from the registration
and prospectus delivery requirements of the 1933 Securities Act, as amended (the “Securities Act”) which relate
to private offerings, are being offered and sold to in reliance upon exemptions from the registration and prospectus delivery
requirements of state securities laws which relate to private transfer and each Buyer must therefore bear the economic risk of
such investment indefinitely unless a subsequent disposition thereof is registered under the Act and applicable state securities
laws or is exempt therefrom. Each Buyer acknowledges that the shares shall bear restrictive legends.
3.3 Buyer’s Sophistication. Each Buyer (i) acknowledges that the purchase of Shares involves a high degree of
risk in that the Company has no current business operations or plans and may require substantial funds; (ii) an investment in
the Company is highly speculative and only investors who can afford the loss of their entire investment should consider investing
in the Company and the Shares; (iii) has such knowledge and experience in finance, securities, investments, including investment
in non-listed and non registered securities, and other business matters so as to be able to protect its interests in connection
with this transaction; (iv) that the sale of the Shares to each Buyer is not registered with the US Securities and Exchange Commission
or with the securities administrator of any state; (v) that the Shares are being sold pursuant to an exemption from such registration
requirements; and (vi) the Shares are “restricted securities” that will bear a restrictive legend prohibiting their
further transfer without registration or any exemption therefrom.
3.4 Brokers and Finders. Each Buyer represents and warrants that he/she/it has made no agreements involving any fees
of any type that relate to this Agreement and that would involve Seller, including but not limited to broker’s fee, finder’s
fees or any similar compensation arrangement.
3.5 Due Diligence Materials Provided. Each Buyer acknowledges that Seller has only recently become the controlling
shareholder of the Company and has obtained control of the Company through court process which, by its nature, provides Seller
with only very limited information regarding the Company, its history, its financial condition and any potential debts, obligations,
liabilities or other claims. Each Buyer understands that there may be significant obligations, claims or other obligations against
the Company of which Seller is unaware that would make the Company unsuitable for the business operations therein contemplated
by Buyer, and each Buyer expressly assumes such risk.
AND WARRANTIES OF THE COMPANY
an inducement to and to obtain the reliance of Buyers, the Company represents and warrants to Buyers that each of the following
are true, correct, and complete as of the Effective Date and will be correct and complete as of the Closing. All references in
this Agreement to “knowledge of the Company” shall mean the actual knowledge, after reasonable investigation,
of the Company, its officers and directors and controlling shareholder.
4.1 Organization. The Company is a Nevada corporation duly organized, validly existing, and in good standing under
the laws of Nevada, has all necessary corporate authority and powers, governmental licenses, authorizations, consents and approvals
to carry on its business as presently conducted and to own, hold and operate its properties and assets as now owned, and is duly
qualified to do business and is in good standing in the state of Nevada. The Company is duly qualified, licensed or domesticated
as a foreign corporation in good standing in each jurisdiction wherein the nature of its activities or its properties owned, held
or operated makes such qualification, licensing or domestication necessary, except where the failure to be so duly qualified,
licensed or domesticated and in good standing would not have a Material Adverse Effect. Schedule 4.1 sets forth a true,
correct and complete list of the Company’s jurisdiction of organization and each other jurisdiction in which the Company
presently conducts its business or owns, holds and operates its properties and assets. The Company is a reporting company under
the Securities Exchange Act of 1934 (the “Exchange Act”) pursuant to SEC rules and regulations. The shares
of Common Stock of The Company are currently quoted on the OTC Pink market of the OTC Markets Group under the symbol “GSHN”.
“Material Adverse Effect” means, any change, effect or circumstance which, individually or in the aggregate,
would reasonably be expected to: (a) have a material adverse effect on the business, assets, financial condition or results of
operations of The Company, as the case may be, in each case taken as a whole; (b) materially impair the ability of The Company,
as the case may be, to perform its obligations under this Agreement, excluding any change, effect or circumstance resulting from:
(i) the announcement, pendency or consummation of the transactions contemplated by this Agreement, (ii) changes in the United
States securities markets generally, (iii) changes in general economic, currency exchange rate, political or regulatory conditions
in industries in which The Company, as the case may be, operates, (iv) any changes in applicable laws or accounting rules or principles,
including changes in GAAP, (v) acts of war, sabotage or terrorism, military actions or the escalation thereof; or (c) that would
prohibit or otherwise materially interfere with the ability of any party to this Agreement to perform any of its obligations under
this Agreement in any material respect.
4.2 Subsidiaries. Except as disclosed in Schedule 4.2, the Company does not own, directly or indirectly, any
equity or other ownership interest in any corporation, partnership, joint venture or other entity or enterprise.
4.3 Organizational Documents. True, correct and complete copies of the Organizational Documents of the Company have
been delivered to Buyers prior to the execution of this Agreement, and no action has been taken to amend or repeal such Organizational
Documents since such date of delivery. The Company is not in violation or breach of any of the provisions of its Organizational
Documents. “Organizational Documents” means, the Company’s certificate of incorporation and bylaws.
4.4 Capitalization and Related Matters.
The authorized capital stock of the Company consists of 600,000,000 shares of Common Stock authorized, par value $0.0001per share,
of which 29,018,750 shares of Common Stock are issued and outstanding and 200,000,000 shares of Preferred Stock, par value $0.0001
per share, of which 30,000,000 shares of Preferred Stock are issued and outstanding. All issued and outstanding shares immediately
prior to the Closing are duly authorized, validly issued, fully paid and non-assessable, free of liens, encumbrances, options,
restrictions and legal or equitable rights of others not a party to this Agreement. There are no outstanding options, warrants,
purchase agreements, participation agreements, subscription rights, conversion rights, exchange rights or other securities or
contracts that could require The Company to issue, sell or otherwise cause to become outstanding any of its authorized but unissued
shares of capital stock or any securities convertible into, exchangeable for or carrying a right or option to purchase shares
of capital stock or to create, authorize, issue, sell or otherwise cause to become outstanding any new class of capital stock.
No Redemption Requirements. There are no outstanding contractual obligations (contingent or otherwise) of the Company to
retire, repurchase, redeem or otherwise acquire any outstanding shares of capital stock of, or other ownership interests in the
Company or to provide funds to or make any investment (in the form of a loan, capital contribution or otherwise) in any other
4.5 No Conflict, Authority. The execution of this Agreement and the consummation of the
transactions contemplated by this Agreement will not result in contravene or conflict with or the material breach of any term
or provision of, or constitute an event of default under, any material debt instrument, which may include an indenture, mortgage,
deed of trust or other contract, agreement or instrument to which the Company is a party , nor result in contravene, conflict
with or a violation of, any Law or Order to which the Company is a party. The Company has full power, authority and legal right
and has taken all action required by law or otherwise to authorize the execution and delivery of this Agreement.
4.6 SEC Reports; Financial Statements. Except as set forth on Schedule 4.6, the Company has filed all SEC Reports
for the three (3) years preceding the date hereof (or such shorter period as the Company was required by law to file such material).
As of their respective dates, the SEC Reports and any registration statements filed under the Securities Act (the “Registration
Statements”) complied in all material respects with the requirements of the Exchange Act and the Securities Act, as
applicable, and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports or Registration
Statements, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
All Material Contracts to which the Company is a party or to which the property or assets of the Company are subject have been
appropriately filed as exhibits to the SEC Reports and the Registration Statements as and to the extent required under the Exchange
Act and the Securities Act, as applicable. The financial statements of the Company included in the Registration Statement and
the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing, were prepared in accordance with GAAP applied on a consistent basis during
the periods involved (except as may be indicated in the notes thereto, or, in the case of unaudited statements as permitted by
Form 10-Q of the Commission), and fairly present in all material respects (subject in the case of unaudited statements, to normal,
recurring audit adjustments) the financial position of the Company as at the dates thereof and the results of its operations and
cash flows for the periods then ended. The disclosure set forth in the SEC Reports and Registration Statements regarding the Company’s
business is current and complete and accurately reflects operations of the Company, as it exists as of the date hereof, except
as has not had and would not reasonably be expected to have a Material Adverse Effect on the Company.
4.7 Filings with Government Agencies. The Company files annual and quarterly reports with the SEC and is current in
all filings that might be required and is current in their filings and reporting to the state of Nevada. Upon the purchase of
the Shares by Buyers, Buyers will have the full responsibility for filing any and all documents required by the SEC and/or any
other government agency that may be required. The Company will supply Buyers with all information that is currently available
for the Company.
4.8 Liabilities. Except as set forth on Schedule 4.8, in the SEC Reports, the Company has no debt, obligation
or liability of any nature, whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due, arising
out of any transaction entered into at or prior to the Closing Date or any act or omission at or prior to the Closing Date, except
to the extent set forth on or reserved against on the Company’s Balance Sheet. The Company has not incurred any liabilities
or obligations under agreements entered into, in the usual and ordinary course of business since March 9, 2015. It is understood
and agreed that the purchase of the Shares is predicated on the Company not having any debt at Closing, and the Company will not,
as of Closing, have any debt other than as set forth on Schedule 4.8, which is to be paid at Closing. The Company is not
aware of any pending, threatened or asserted claims, lawsuits or contingencies involving the Company or its shares. To the Knowledge
of the Company, there is no dispute of any kind between the Company and any third party, and to the Company’s Knowledge,
no such dispute will exist at the Closing of this transaction and at the Closing, the Company will be free from any and all debts.
4.9 Tax Returns and Audits.
Tax Returns. The Company has filed all outstanding federal or state tax returns prior to the Closing. No Governmental Authority
in any jurisdiction has made a claim, assertion or threat to the Company that the Company is or may be subject to taxation by
such jurisdiction; there are no Liens with respect to taxes on the Company’s property or assets other than Permitted Liens;
and there are no tax rulings, requests for rulings, or closing agreements relating to the Company for any period (or portion of
a period) that would affect any period after the date hereof.
No Adjustments, Changes. Neither the Company nor any other person on behalf of the Company (a) has executed or entered
into a closing agreement pursuant to Section 7121 of the Code or any predecessor provision thereof or any similar provision of
state, local or foreign law; or (b) has agreed to or is required to make any adjustments pursuant to Section 481(a) of the Code
or any similar provision of state, local or foreign law.
No Disputes. To the Company’s Knowledge there is no pending audit, examination, investigation, dispute, proceeding
or claim with respect to any taxes of the Company, nor is any such claim or dispute pending or contemplated.
Not a U.S. Real Property Holding Corporation. The Company is not and has not been a United States real property holding
corporation within the meaning of Section 897(c)(2) of the Code at any time during the applicable period specified in Section 897(c)(1)(A)(ii)
of the Code.
No Tax Allocation, Sharing. The Company is not and has not been a party to any tax allocation or sharing agreement.
No Other Arrangements. The Company is not a party to any agreement, contract or arrangement for services that would result,
individually or in the aggregate, in the payment of any amount that would not be deductible by reason of Section 162(m),
280G or 404 of the Code. The Company is not a “consenting corporation” within the meaning of Section 341(f) of the
Code. The Company does not have any “tax-exempt bond financed property” or “tax-exempt use property” within
the meaning of Section 168(g) or (h), respectively of the Code. The Company does not have any outstanding closing agreement, ruling
request, requests for consent to change a method of accounting, subpoena or request for information to or from a Governmental
Authority in connection with any tax matter. During the last two years, the Company has not engaged in any exchange with a related
party (within the meaning of Section 1031(f) of the Code) under which gain realized was not recognized by reason of Section 1031
of the Code. The Company is not a party to any reportable transaction within the meaning of Treasury Regulation Section 1.6011-4.
4.10 Material Assets. The financial statements of the Company set forth in the SEC Reports reflect the material properties
and assets (real and personal) owned or leased by the Company.
4.11 Litigation; Orders. There is no proceeding (whether Federal, state, local or foreign) pending or, to the Knowledge
of the Company, threatened against or affecting the Company or any of the Company’s properties, assets, business or employees.
To the Knowledge of the Company, there is no fact that might result in or from the basis for any such proceeding. The Company
is not subject to any orders.
4.12 No Brokers or Finders. Except as disclosed in Schedule 4.12, no person has, or as a result of the transactions
contemplated herein will have, any right or valid claim against the Company for any commission, fee or other compensation as a
finder or broker, or in any similar capacity, and after the Closing, the Company will indemnify and hold Buyer harmless against
any liability or expense arising out of, or in connection with, any such claim.
4.13 Contracts, Leases and Assets. The Company has provided to Buyers, prior to the date of this Agreement, true, correct
and complete copies of each written contract which Buyers have requested from it and to which the Company is a party, including
each amendment, supplement and modification thereto. No person holds a power of attorney from the Company.
4.14 No Defaults. The Company is not in material breach or material default of any Material Contract to which it is
a party and, to the Knowledge of the Company, no other party to any Material Contract to which the Company is a party is in material
breach or material default thereof, except as has not had a Material Adverse Effect on the Company. To the Company’s Knowledge,
no event has occurred or circumstance exists that (with or without notice or lapse of time) would (a) contravene, conflict with
or result in a violation or breach of, or become a material default or material event of default under, any provision of any Material
Contract to which the Company is a party, or (b) permit the Company or any other person the right to declare a default or exercise
any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify any Material Contract to
which the Company is a party. The Company has not received notice of the pending or threatened cancellation, revocation or termination
of any Material Contract to which it is a party. There are no renegotiations of, or attempts to renegotiate, or outstanding rights
to renegotiate any material terms of any Material Contract to which the Company is a party. “Material Contract”
means any contract to which the Company is a party that: (i) involves aggregate annual revenue or payments in excess of $25,000
per year; (ii) that is for the purchase, sale or lease of real property; (iii) that involves the Company’s receipt of goods
or services in excess of $25,000 per year, without respect to dollar amounts, or (iv) is an employment agreement involving annual
base salary payments in excess of $80,000.
Except as set forth on Schedule 4.15(a), the Company has no employees, independent contractors or other Persons providing
services to them. Except as would not have a Material Adverse Effect, the Company is in full compliance with all Laws regarding
employment, wages, hours, benefits, equal opportunity, collective bargaining, the payment of Social Security and other taxes,
and occupational safety and health. The Company is not liable for the payment of any compensation, damages, taxes, fines, penalties
or other amounts, however designated, for failure to comply with any of the foregoing Laws.
No director, officer or employee of the Company is a party to, or is otherwise bound by, any contract (including any confidentiality,
non-competition or proprietary rights agreement) with any other person that in any way adversely affects or will materially affect
(a) the performance of his or her duties as a director, officer or employee of the Company, or (b) the ability of the Company
to conduct its business. Except as set forth on Schedule 4.15(b), each employee of the Company is employed on an at-will
basis and the Company does not have any contract with any of its employees which would interfere with its ability to discharge
4.16 Compliance with Laws. The business and operations of the Company have been and are being conducted materially
in accordance with all applicable Laws and Orders. the Company has not received notice of any violation (or any Proceeding involving
an allegation of any violation) of any applicable Law or Order by or affecting the Company and, to the Knowledge of the Company,
no proceeding involving an allegation of violation of any applicable Law or Order is threatened or contemplated. To the Knowledge
of the Company, it has complied with all federal and state securities laws in connection with the offer, sale and distribution
of its securities. At the time that the Company sold the Shares to Seller, the Company was entitled to use the exemptions provided
by the Securities Act relative to the sale of its shares.
4.17 Governmental Inquiries. The Company has provided to Buyers a copy of each material written inspection report,
questionnaire, inquiry, demand or request for information received by the Company from any Governmental Authority, and the Company’s
response thereto, and each material written statement, report or other document filed by the Company with any Governmental Authority.
4.18 Bank Accounts and Safe Deposit Boxes. Except as set forth on Schedule 4.18, the Company does not have any
bank or other deposit or financial account, nor does the Company have any lock boxes or safety deposit boxes.
4.19 Intellectual Property. The Company does not own, use or license any intellectual property in its business as presently
4.20 Stock Option Plans; Employee Benefits.
the Company has no stock option plans providing for the grant by the Company of stock options to directors, officers or employees.
the Company has no employee benefit plans or arrangements covering their present and former employees or providing benefits to
such persons in respect of services provided the Company.
Neither the consummation of the transactions contemplated hereby alone, nor in combination with another event, with respect to
each director, officer, employee and consultant of the Company, will result in (i) any payment (including, without limitation,
severance, unemployment compensation or bonus payments) becoming due from the Company (except as otherwise contemplated by this
Agreement), (ii) any increase in the amount of compensation or benefits payable to any such individual, or (iii) any acceleration
of the vesting or timing of payment of compensation payable to any such individual. No agreement, arrangement or other contract
of the Company provides benefits or payments contingent upon, triggered by, or increased as a result of a change in the ownership
or effective control of the Company.
4.21 Money Laundering Laws. The operations of the Company are and have been conducted at all times in compliance with
applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all U.S. and non-U.S. jurisdictions, the rules and regulations thereunder and any
related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority (collectively,
the “Money Laundering Laws”) and no Proceeding involving the Company with respect to the Money Laundering Laws
is pending or, to the Knowledge of the Company, threatened.
4.22 Bad Actor Representation. None of the Company, any of its predecessors, any affiliated issuer, any director, executive
officer, other officer of the Company participating in the this transaction, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule
405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered
Person” and, together, “Issuer Covered Persons“) is subject to any of the “Bad Actor” disqualifications
described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event“), except for a
Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any
Issuer Covered Person is subject to a Disqualification Event.
PROCEDURE AND OTHER CONSIDERATION
5.1 Delivery of Seller and the Company. On the Closing Date, Seller and the Company, as applicable, shall deliver the
following to Buyers, conditioned upon (i) all of Buyers’ representations and warranties set forth in Article III, above,
shall be true and correct as of the Closing, and (ii) each Buyer’s performance of its delivery obligations in Section
Shares together with a duly executed copy of the unanimous written consent of the board of directors of the Company or other instruction
required for the transfer of the Shares to Buyers. If necessary, after the Closing, Seller shall also execute such other certificates
or other documents reasonably necessary to transfer the Shares to Buyers. If the Shares are to be transferred electronically in
book form, then irrevocable instructions from Seller to the Escrow Agent and/or the Company’s transfer agent directing the
transfer of the Shares to Buyers.
consent from the Company’s board of directors approving this Agreement and the transaction contemplated herein and approving
the appointing Buyers’ designee to the board of directors, effective upon Closing.
resignation from all members of the Company’s board of directors excepting only Buyers’ designee, effective upon Closing.
of good standing of the Company dated as of the Closing Date.
written resignation from all officers of the Company, effective upon Closing.
shareholder list dated as of the Closing Date issued by the transfer agent of the Company.
written waiver and release from Seller in favor of the Company of any debt obligation owed to Seller.
5.2 Buyer’s Delivery. On the Closing Date, Buyers shall deliver the following to Seller, conditioned upon (i)
all of Seller’s representations and warranties set forth in Article II, above, shall be true and correct as of the Closing,
and (ii) each Buyer’s performance of its delivery obligations in Section 5.1, above:
Price of $250,000 in immediately available good funds.
written consent to serve on the Company’s board of directors by Buyers’ nominee, effective upon Closing, including
the nominee’s mailing address.
written consent from Buyers’ nominee to serve as the President and as other officers of the Company, effective upon Closing,
including the nominee’s mailing address.
written acceptance from a registered agent appointed by Buyers for the Company, effective upon Closing, together with the new
registered office for the Company which registered office shall be a street address and not a post-office box or similar mail
5.3 Buyers’ Post-Closing Delivery. Upon the receipt of FINRA approval of the by the Company of its Stock Split,
Buyers shall instruct the Escrow Agent to release the remaining Purchase Price of $25,000 to Seller.
5.4 SEC Report.
From and after the Closing Date until the filing of the Immediate Report with the SEC, Seller shall timely collect and deliver
necessary information of the Company’s business or operation prior to and as of the Closing Date for the purpose of preparing
the Immediate Report and shall use its best efforts to cooperate with the Company and the Company’s auditor in connection
with the auditor’s review on the Immediate Report.
From and after the Closing Date, in the event the SEC notifies the Company of its intent to review any SEC Report filed prior
to the Closing Date or the Company receives any oral or written comments from the SEC with respect to any SEC Report filed prior
to the Closing Date or any disclosure regarding the Company business or operations, as in existence through the date hereof in
any SEC Report or registration statement filed after the Closing Date, Buyers shall promptly notify Seller and Seller shall make
commercially reasonable efforts to cooperate with Buyers in connection with such review and response.
5.5 Assistance with Post-Closing Record Requests. It is understood that certain corporate records that were generated
during the normal course of business of the Company have not been delivered to Buyers before the Closing Date and Seller agrees
to use its best efforts to obtain such records upon the reasonable request of the Purchaser after the Closing Date. In the event
that such records are not timely delivered to Buyers upon their request, Seller shall indemnify and hold Buyers harmless against
any loss, liability or expense arising out of, or in connection with the failure of such delivery.
5.6 Public Announcements. Buyers shall cause the Company to file with the Commission a Current Report on Form 8-K describing
the material terms of the transactions contemplated hereby as soon as practicable following the Closing Date but in no event more
than four (4) business days following the Closing Date. Prior to the Closing Date, Buyers and the Company shall consult with each
other in issuing the Form 8-K and any other press releases or otherwise making public statements or filings and other communications
with the Commission or any regulatory agency or stock market or trading facility with respect to the transactions contemplated
hereby and none of the parties shall issue any such press release or otherwise make any such public statement, filings or other
communications without the prior written consent of the other parties, which consent shall not be unreasonably withheld or delayed,
except that no prior consent shall be required if such disclosure is required by Law, or the rules of any securities exchange
or self-regulatory organization, in which case the disclosing party shall provide the other parties with prior notice of no less
than three (3) calendar days, of such public statement, filing or other communication and shall incorporate into such public statement,
filing or other communication the reasonable comments of the other parties.
5.7 Assistance with Post-Closing SEC Reports and Inquiries. Upon the reasonable request of Buyers, after the Closing
Date, Seller shall use reasonable best efforts to provide such information available to them, including information, filings,
reports, financial statements or other circumstances of the Company occurring, reported or filed prior to the Closing, as may
be necessary or required by the Company for the preparation of the post-Closing Date reports that the Company is required to file
with the Commission to remain in compliance and current with its reporting requirements under the Exchange Act, or filings required
to address and resolve matters as may relate to the period prior to the Closing and any Commission comments relating thereto or
any Commission inquiry thereof.
6.1 Indemnification is Exclusive Remedy. This Agreement will be governed by the laws of the State of Nevada without
regard to conflicts of laws principles. Any controversy or claim arising out of, or relating to, this Agreement, or the making,
performance, or interpretation thereof, shall be adjudicated by the Courts of Nevada and may only be brought by a party if it
is permitted pursuant to and is brought in accordance with the provisions of this Article VI. No party may bring any claim for
breach, loss or damage arising out of, or relating to, this Agreement, or the making, performance, or interpretation thereof,
unless the party bringing such claim is entitled to indemnification for such breach, loss or damage pursuant to Article VI of
Indemnification by Seller. From and after the Closing, Seller agrees to indemnify the Purchasers against all actual losses,
damages and expenses (collectively, “Losses”) actually incurred by Buyers, caused by (i) any breach of any
representation or warranty made by Seller in Article III of this Agreement or made by the Company in Article IV
of this Agreement; and (ii) any breach of any covenant or obligation of Seller in this Agreement or any documents required to
be performed by Seller after the Closing Date. The representations and warranties contained in this Agreement (including all schedules
and exhibits hereto) shall survive the Closing for a period of two (2) months. Notwithstanding any other provision of this Agreement
Seller’s aggregate liability in respect of all claims that the Company and/or any and all Purchasers may have against it
pursuant to this Agreement will not exceed that amount of the Purchase Price.
6.3 Indemnification Procedures.
Except to the extent set forth in this Section 6.3, a Party will not have any liability under the indemnity provisions
of this Agreement with respect to a particular matter unless a written notice (a “Claim Notice”) setting forth
in reasonable detail: (i) the breach or other matter giving rise to such indemnification claim which is asserted, (ii) the estimated
amount, if reasonably practicable, of the Losses that have been incurred by the Indemnified Party in connection therewith, and
(iii) copies of any notices, claims or complaints sent or filed by the claimant, has been given to the Indemnifying Party promptly,
but in any event within thirty (30) days, after the Indemnified Party becomes aware of such claim (including the assertion or
commencement of any third-party claim). Notwithstanding the preceding sentence, failure of the Indemnified Party to give timely
notice hereunder shall not release the Indemnifying Party from its obligations under this Section 6.3, except to the extent
the Indemnifying Party is actually prejudiced by such failure to give notice. With respect to Losses described in Section 6.2(a),
Seller whose breach caused the Loss shall be the “Indemnifying Party” and the applicable Purchaser who incurred
such Loss, shall be the “Indemnified Party”. With respect to Losses described in Section 6.2(b), the
Purchaser whose breach caused the Loss shall be the “Indemnifying Party” and Seller or its affiliate or Representative
who incurred such Loss, as applicable, shall be the “Indemnified Party”.
Upon receipt of notice of any claim, suit, action or legal proceeding by a third party for which indemnification might be claimed
by an Indemnified Party (a “Third-Party Claim”), the Indemnifying Party shall be entitled to defend, contest
or otherwise protect against the Third-Party Claim at its own cost and expense, by providing written notice to the Indemnified
Party of such election within thirty (30) days after the Indemnified Party receives a Claim Notice with respect to such Third-Party
Claim, and the Indemnified Party must cooperate in any such defense or other action; provided, that the Indemnifying Party may
not control the defense of any Third-Party Claim that is criminal in nature or that seeks non-monetary equitable relief that would
reasonably be expected to be material to the Indemnified Party if adversely determined. The Indemnified Party shall have the right,
but not the obligation, to participate at its own expense in defense thereof by counsel of its own choosing, but the Indemnifying
Party shall be entitled to control the defense unless the Indemnifying Party does not elect to assume defense of the Third-Party
Claim, is not entitled under this Section 6.3 to control the defense of the Third-Party Claim or fails to competently conduct
the defense of such Third-Party Claim. If the Indemnifying Party undertakes the defense of a Third-Party Claim, the Indemnified
Party shall not, so long as the Indemnifying Party competently conducts the defense thereof, be entitled to recover from the Indemnifying
Party any legal or other expenses subsequently incurred by the Indemnified Party in connection with the defense thereof, except
(i) where separate representation is necessary, in the reasonable opinion of counsel to the Indemnified Party, to avoid a conflict
of interest that cannot be waived such that representation of both parties by the same counsel would violate processional standards
of conduct for attorneys in the jurisdiction where the Indemnifying Party’s counsel is practicing on behalf of the Indemnifying
Party, or (ii) reasonable costs of investigation undertaken by the Indemnified Party with the prior written consent of the Indemnifying
Party. If the Indemnifying Party assumes the defense of a Third-Party Claim, no compromise or settlement of the Third-Party Claim
may be effected by the Indemnifying Party without the Indemnified Party’s consent (which consent shall not be unreasonably
withheld, conditioned or delayed). In the event the Indemnifying Party does not elect to assume control of the Third-Party Claim
or otherwise is not entitled to control such Third-Party Claim in accordance with this Section 6.3.
7.1 Notification of OTC Markets, FINRA and Nevada Secretary of State. Buyers shall, within three (3) business days
following the Closing Date take the following actions:
OTC Markets, both via certified letter and by access to the website section of www.otcmarkets.com established for this purpose,
of the new address and resident agent for the Company, the new director(s) of the Company and the new officers of the Company,
including its President. Buyers shall promptly pay any fees associated with this notice.
FINRA corporate actions office, as required by its rules and procedures, of the change in control of the Company, the new address
and resident agent for the Company, the new director(s) of the Company and the new officers of the Company, including its President,
and the new controlling shareholder(s) of the Company. Buyers shall promptly pay any fees associated with this notice.
the Nevada Secretary of State, by filing an amended annual list of officers and directors and by filing a change in resident agent
notification, of the new address and resident agent for the Company, the new director(s) of the Company and the new officers of
the Company, including its President. Buyers shall promptly pay any fees associated with these filings.
to Seller in writing via certified letter to Seller and by providing copies of the notices and filings provided to OTC Markets,
FINRA and the Nevada Secretary of State, that Seller has performed its obligations pursuant to Sections 7.1(a), (b)
and (c), above.
Buyers fail to timely perform according to this Section 5.1, Buyers expressly authorizes Seller to provide the notices
and filings contemplated by this Section 5.1 and Buyers agrees to promptly reimburse Seller for all expenses related thereto,
including filing fees and attorney’s fees actually incurred.
7.2 Notices. Any notices or other communications required or permitted hereunder shall be sufficiently given if personally
delivered to it or sent by overnight carrier or USPS via registered mail or certified mail, postage prepaid, addressed to the
addresses set forth in this Agreement or such other addresses as shall be furnished in writing by any party in the manner for
giving notices hereunder, and any such notice or communication shall be deemed to have been given as of the date so delivered,
mailed or sent. Any party with a non-US address may be provided notice via email, which notice shall be effective when sent to
the party or its representative.
7.3 Attorneys’ Fees. Except as expressly provided herein, each party will be responsible for their own attorney’s
7.4 Confidentiality. Each party hereto agrees with the other party that, unless and until the transactions contemplated
by this Agreement have been consummated, they and their representatives will hold in strict confidence (a) the existence and terms
of this Agreement and the transactions contemplated hereby, and (b) all data and information obtained with respect to another
party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal
inspection, of such other party, and shall not use such data or information or disclose the same to others, except: (i) to the
extent such data is a matter of public knowledge or is required by law to be published; and (ii) to the extent that such data
or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement. In addition,
no party shall issue any press release or other public announcement concerning this Agreement, its existence or the transactions
contemplated by this Agreement, without the prior written approval of the remaining parties.
7.5 Entire Agreement. This Agreement represents the entire agreement between the parties relating to the subject matter
hereof. This Agreement alone fully and completely expresses the agreement of the parties relating to the subject matter hereof.
There are no other courses of dealing, understanding, agreements, representations or warranties, written or oral, except as set
forth herein. This Agreement may not be amended or modified, except by a written agreement signed by all parties hereto.
7.6 Survival; Termination; Limitation of Seller’s Liability. The representations, warranties and covenants of
the respective parties shall survive the Closing and the consummation of the transactions herein contemplated two (2) months after
the Closing Date. In no instance shall the liability of Seller (including, without limitation its owners or managers) arising
hereunder or by reason of or related to any of the transactions contemplated hereby exceed the amounts actually paid by Buyers
to Seller under this Agreement.
7.7 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original
and all of which taken together shall be but a single instrument.
7.8 Amendment or Waiver. Every right and remedy provided herein shall be cumulative with every other right and remedy,
whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any party of the performance
of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter
occurring or existing. At any time prior to the Closing, this Agreement may be amended by a writing signed by all parties hereto,
with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance
hereof may be extended by a writing signed by the party or parties for whose benefit the provision is intended.
7.9 Expenses. Each party herein shall bear all of their respective costs and expenses incurred in connection with the
negotiation of this Agreement and in the consummation of the transactions provided for herein and the preparation thereof.
7.10 Headings; Context. The headings of the sections and paragraphs contained in this Agreement are for convenience
of reference only and do not form a part hereof and in no way modify, interpret or construe the meaning of this Agreement.
7.11 Benefit. This Agreement shall be binding upon and shall inure only to the benefit of the parties hereto, and their
permitted assigns hereunder. This Agreement shall not be assigned by any party without the prior written consent of the other
party. This contract is between Seller and Buyers. No person or entity shall be deemed to be a third party beneficiary of this
7.12 Severability. In the event that any particular provision or provisions of this Agreement or the other agreements
contained herein shall for any reason hereafter be determined to be unenforceable, or in violation of any law, governmental order
or regulation, such unenforceability or violation shall not affect the remaining provisions of such agreements, which shall continue
in full force and effect and be binding upon the respective parties hereto.
7.13 No Strict Construction. The language of this Agreement shall be construed as a whole, according to its fair meaning
and intendment, and not strictly for or against either party hereto, regardless of who drafted or was principally responsible
for drafting the Agreement or terms or conditions hereof.
7.14 Execution Knowing and Voluntary. In executing this Agreement, the parties severally acknowledge and represent
that each: (a) has fully and carefully read and considered this Agreement; and (b) has been or has had the opportunity to be fully
apprized by its attorneys of the legal effect and meaning of this document and all terms and conditions hereof.
7.15 Further Assurances, Cooperation. Each party shall, upon reasonable request by the other party, execute and deliver
any additional documents necessary or desirable to complete sale contemplated by this agreement. The parties hereto agree to cooperate
and use their respective best efforts to consummate the transactions contemplated by this agreement.
7.16 Governing Law. This Agreement shall be construed (both as to validity and performance) and enforced in accordance
with and governed by the laws of the state of Nevada applicable to agreements made and to be performed wholly within such jurisdiction
and without regard to its conflicts of laws principles. Any dispute arising out of this Agreement shall be resolved in the state
or federal courts sited in Clark County, Nevada to the exclusion of all other venues. The prevailing party in any such action
shall be entitled to an award of costs and its reasonable attorney’s fees.
7.17 Waiver of Jury Trial. ALL PARTIES HEREBY WAIVE THEIR RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY DISPUTE ARISING
UNDER THIS AGREEMENT OR ANY DOCUMENT OR INSTRUMENT DELIVERED HEREUNDER.
7.18 Certain Definitions. For purposes of this Agreement, the following capitalized terms have the following meanings.
Other capitalized terms are defined elsewhere in this Agreement.
means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement
or rule of law of any Governmental Authority.
Authority” means any federal, state, local or foreign government or political subdivision or union thereof (including
the European Union), or any department, agency or instrumentality or fully-owned or partially-owned enterprise of such government
or political subdivision or union, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental
authority (to the extent that the rules, regulations or orders of such organization or authority have the force of law), or any
arbitrator, court or tribunal of competent jurisdiction.
means any mortgage, pledge, security interest, attachment, right of first refusal, option, proxy, voting trust, encumbrance, lien
or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof), restriction
(whether on voting, sale, transfer, disposition or otherwise), any subordination arrangement in favor of another Person, any filing
or agreement to file a financing statement as debtor under the Uniform Commercial Code or any similar Law.
means any award, decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any
court, administrative agency, or other Governmental Authority.
Liens” means (a) Liens for taxes or assessments
and similar governmental charges or levies, which either are (i) not delinquent or (ii)
being contested in good faith and by appropriate proceedings, and adequate reserves have
been established with respect thereto, (b) other Liens imposed by operation of Law arising
in the ordinary course of business for amounts which are not due and payable and as would
not in the aggregate materially adversely affect the value of, or materially adversely
interfere with the use of, the property subject thereto, (c) Liens incurred or deposits
made in the ordinary course of business in connection with social security, (d) Liens
on goods in transit incurred pursuant to documentary letters of credit, in each case
arising in the ordinary course of business, or (v) Liens arising under this Agreement
or any agreement attached hereto or made a part hereof.
Spit” mean a revere stock split of the existing
issued and outstanding shares of Common Stock of the Company to be effected by the Company
following the Closing.
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WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.
of Seller for Notices:
Lawrence Ave, Oceanside, New York, 11572.
a copy to (which shall not constitute notice):
of Buyers for Notices:
302, Shizhi Commercial Hotel,
Hubin District, Sanmenxia City
CEO, and CFO
|Name of Buyer||Purchase Price||Allocation of Shares of Series A Preferred Stock|
|Upon Closing||Upon Stock Split|
|Pengfei Zhou||$||375,000||$||18,750||22,500,000 Shares|
|Zhaowei Zhang||$||125,000||$||6,250||7,500,000 Shares|