UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 19, 2019
LEADER CAPITAL HOLDINGS CORP.
(Exact name of registrant as specified in its charter)
| Nevada | 333-221548 |
37- 1853394 |
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(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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Room
2708-09, Metropolis Tower,
10 Metropolis Drive, Hung Hom, Hong Kong |
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| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: +852 3487 6378
(Former name or former address, if changed since last report.)
Check 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:
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). |
Item 1.01 Entry into a Material Definitive Agreement.
Leader Capital Holdings Corp. (the “Registrant”) had entered into a Bond Purchase Agreement (the “Bond Purchase Agreement”) with Wang, Ching-nan, an individual purchaser (the “Purchaser”) on August 14, 2019 (the “Effective Date”) pursuant to which the Registrant issued and sold to the Purchaser the Company Bond at an aggregate principle amount and an aggregate purchase price of US$600,000.00 (the “Bond”).
The Bond will mature three years from the Effective Date (the “Maturity Date”). Interest on the Bond will be payable on semi-yearly basis at 10.0% per annum (equivalent to 0.8333%, per month) from the Effective Date. On Maturity Date, the Registrant promises to pay to the Investor the principle amount and any interest, fees, charges and penalties incurred. The Registrant may not prepay to Purchaser any balance remaining following the Prepayment Date. However, the Registrant may exercise its right to repay this Bond at any time on or before two years from the Maturity Date by wiring 100% of all outstanding principal and interest(s) to the Purchaser.
The Bond provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the Bond to become or to be declared due and payable. The events of default under this Bond are: (i) The Registrant fails to pay any principal under this Bond, pursuant to the terms of this Bond, on or before the Maturity Date; or (ii) the Registrant fails to pay any interest or any other amount under this Bond, pursuant to the terms of this Bond, on or before the Maturity Date; or (iii) a receiver, trustee or other similar official shall be appointed over the Registrant or a material part of its assets and such appointment shall remain uncontested for ten days or shall not be dismissed or discharged within thirty days; or (iv) the Registrant becomes insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any; or (v) The Registrant makes a general assignment for the benefit of creditors; or (vi) The Registrant files a petition for relief under any bankruptcy, insolvency or similar law (domestic or foreign); or (vii) an involuntary proceeding shall be commenced or filed against the Registrant; or (viii) the Registrant fails to observe or perform any covenant, obligation, condition or agreement of the Registrant contained herein, including without limitation all covenants to timely file all required quarterly and annual reports, and any other filings related to Rule 144; or (ix) any representation, warranty or other statement made or furnished by or on behalf of the Registrant to the Purchaser herein or in connection with the issuance of the Bonds shall be false, incorrect, incomplete or misleading in any material respect when made or furnished.
Upon the occurrence of any event of default described above, the Outstanding Balance as of the date of acceleration shall become immediately and automatically due and payable in cash at the Mandatory Default Amount, without any written notice required by Investor. The “Mandatory Default Amount” means 100% multiplied by the applicable Outstanding Balance (the “Default Effect”), provided that the Default Effect may only be applied with respect to the first two events of default that occur. Commencing five days after the occurrence of any event of default, interest shall accrue on the Outstanding Balance of each Bond at an interest rate equal to the lesser of 12% per annum or the maximum rate permitted under applicable law. In connection with such acceleration described herein, the Purchaser needs not provide, and the Registrant hereby waives, any presentment, demand, protest or other notice of any kind, and Investor may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by the Purchaser at any time prior to payment hereunder and the Purchaser shall have all rights as a holder of the Bond until such time, if any, as the Purchaser receives full payment pursuant to this Section. No such rescission or annulment shall affect any subsequent event of default or impair any right consequent thereon. Nothing herein shall limit Investor’s right to pursue any other remedies available to it at law or in equity.
Item 9.01 Financial Statements And Exhibits
(a) Financial Statements of Business Acquired.
Not applicable
(b) Pro Forma Financial Information.
Not applicable
(d) Exhibits.
| Exhibit No. | Description | ||
| 10.1 | Bond dated as of August 14, 2019 | ||
| 10.2 | Bond Purchase Agreement as of August 14, 2019 |
SIGNATURES
Pursuant 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.
| LEADER CAPITAL HOLDINGS CORP. | ||
| Date: August 19, 2019 | By: | /s/ Lin Yi-Hsiu |
|
Lin Yi-Hsiu Chief Executive Officer, President, Treasurer Director (Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer) |
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BOND
| Effective Date: _______________ | U.S. $600,000.00 |
1. FOR VALUE RECEIVED, Leader Capital Holdings Corp., a Nevada corporation (“Company”), promises to pay to_______________ , or its successors or assigns (“Investor”), US$600,000.00 (the “Purchase Price”), and any interest, fees, charges and penalties in accordance with the terms set forth herein. This Bond (this “Bond”) is issued and made effective as of __________________ (the “Effective Date”). For purposes hereof, the “Outstanding Balance” (as defined below) means the Purchase Price (as defined below), as reduced or increased, as the case may be, pursuant to the terms hereof for redemption, or otherwise, plus any accrued but unpaid interest, collection and enforcements costs, and any other fees or charges (including without limitation late charges) incurred under the Bond.
The Purchase Price shall be paid by Investor directly to the Company. Company agrees that the Bond is fully paid for as of the Effective Date.
This Bond shall have a maturity date, which shall be the date that is three (3) years from the Purchase Price is paid (the “Purchase Price Date”) for the Bond (the “Maturity Date”). The Purchase Price Date for the Bond shall be the Effective Date. On the Maturity Date, the Outstanding Balance shall be due and payable.
2. Interest. Company may repay this Bond at any time on or before two (2) years from the Maturity Date (the “Prepayment Date”) by wiring 100% of all outstanding principal and interest(s) to the Investor. The Bond shall accrue an interest charge of 10.0%, per annum (equivalent to 0.8333%, per month) (the “Interest Charge”) from the Effective Date, and the Interest Charge will be paid to the investor on semi-yearly basis. Company may not prepay any balance remaining following the Prepayment Date.
3. Intentionally Omitted.
4. Intentionally Omitted.
5. Default. The following are events of default under this Bond: (i) Company shall fail to pay any principal under this Bond, pursuant to the terms of this Bond, on or before the Maturity Date; or (ii) Company shall fail to pay any interest or any other amount under this Bond, pursuant to the terms of this Bond, on or before the Maturity Date; or (iii) a receiver, trustee or other similar official shall be appointed over Company or a material part of its assets and such appointment shall remain uncontested for ten (10) days or shall not be dismissed or discharged within thirty (30) days; or (iv) Company shall become insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any; or (v) Company shall make a general assignment for the benefit of creditors; or (vi) Company shall file a petition for relief under any bankruptcy, insolvency or similar law (domestic or foreign); or (vii) an involuntary proceeding shall be commenced or filed against Company; or (viii) Company shall fail to observe or perform any covenant, obligation, condition or agreement of Company contained herein, including without limitation all covenants to timely file all required quarterly and annual reports, and any other filings related to Rule 144; or (ix) any representation, warranty or other statement made or furnished by or on behalf of Company to Investor herein or in connection with the issuance of the Bonds shall be false, incorrect, incomplete or misleading in any material respect when made or furnished.
6. Remedies. Upon the occurrence of any event of default described in clauses (iii), (iv), (v), (vi) or (vii) of Section 5, the Outstanding Balance as of the date of acceleration shall become immediately and automatically due and payable in cash at the Mandatory Default Amount, without any written notice required by Investor. The “Mandatory Default Amount” means 100% multiplied by the applicable Outstanding Balance (the “Default Effect”), provided that the Default Effect may only be applied with respect to the first two (2) events of default that occur. Commencing five (5) days after the occurrence of any event of default, interest shall accrue on the Outstanding Balance of each Bond at an interest rate equal to the lesser of 12% per annum or the maximum rate permitted under applicable law. In connection with such acceleration described herein, Investor need not provide, and Company hereby waives, any presentment, demand, protest or other notice of any kind, and Investor may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Investor at any time prior to payment hereunder and Investor shall have all rights as a holder of the Bond until such time, if any, as Investor receives full payment pursuant to this Section 6. No such rescission or annulment shall affect any subsequent event of default or impair any right consequent thereon. Nothing herein shall limit Investor’s right to pursue any other remedies available to it at law or in equity.
7. No Offset. Company acknowledges that this Bond is an unconditional, valid, binding and enforceable obligation of Company not subject to offset, deduction or counterclaim of any kind. Company hereby waives any rights of offset it now has or may have hereafter against Investor, its successors and assigns, and agrees to make the payments or conversions called for herein in accordance with the terms of the Bonds.
8. Intentionally Omitted.
9. Opinion of Counsel. In the event that an opinion of counsel is needed for any matter related to any Bond, Investor has the right to have any such opinion provided by its counsel and Company agrees that it shall not unreasonably withhold acceptance of any such opinion. Investor acknowledges that Company requires an opinion of counsel independent of Company for all sales of its restricted common stock.
10. In case of any discrepancy between the English version and the Chinese version, the English version shall prevail.
(REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)
IN WITNESS WHEREOF, Company has caused this Bond to be duly executed as of the Effective Date set out above.
The Company
| SIGNED by Lin, Yi-Hsiu | ) | |
| for and on behalf of LEADER CAPITAL HOLDINGS CORP. |
) ) |
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| ) | ||
| whose signature(s) is/are verified by / in the presence of: |
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| ) | ||
| Signature of witness: | ) | |
| Name of witness: | ||
| ACKNOWLEDGED, ACCEPTED AND AGREED: |
The Investor
| SIGNED by ____________________________ | ) | |
| ) | ||
| whose signature(s) is/are verified by / in the presence of: | ) | |
| ) | ||
| Signature of witness: | ) | |
| ) | ||
| Name of witness: | ) | |
Exhibit A
BOND PURCHASE AGREEMENT
This BOND PURCHASE AGREEMENT (the “Agreement”), dated as of ______________, by and between LEADER CAPITAL HOLDINGS CORP. , a Nevada corporation, with its address at Room 2201, Malaysia Building, 50 Gloucester Road, Wan Chai Hong Kong (the “Company”), and ______________, with its address at _________________________________________________ (the “Buyer”).
WHEREAS:
| A. | The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”); and |
| B. | Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement a Bond (the “Bond”) of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount of US$600,000.00. |
NOW THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:
| 1. | Purchase and Sale of Bond. |
| a. | Purchase of Bond. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such principal amount of Bond as is set forth immediately below the Buyer’s name on the signature pages hereto. | |
| b. | Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Bond to be issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Bond in the principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto, and (ii) the Company shall deliver such duly executed Bond on behalf of the Company, to the Buyer, against delivery of such Purchase Price. |
| c. | Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and Section 7 below, the date and time of the issuance and sale of the Bond pursuant to this Agreement (the “Closing Date”) shall be 05:00 p.m., Hong Kong time (GMT+8) on or about _______________, or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties. |
| 2. | Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that: |
| a. | Investment Purpose. As of the date hereof, the Buyer is purchasing the bond for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act. | |
| b. | The Buyer has been informed by the Company that there is an exemption from registration for the issuance of the bond. | |
| c. | Reliance on Exemptions. The Buyer understands that the bonds are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the bond. | |
| d. | Information. The Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer. | |
| e. | Legends. The Buyer understands that the Bond may bear a restrictive legend in substantially the following form: |
“THE BONDS REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECUR ITIES LAWS OR (2) THE ISSUER OF SUCH BONDS RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH BONDS, WHICH COUNSEL AND OPINION ARE REASONABLY ACCEPTABLE TO THE ISSUER’S TRANSFER AGENT, THAT SUCH BONDS MAY BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.”
The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any bond upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Bond is registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to an exemption from registration without any restriction as to the number of bonds as of a particular date that can then be immediately sold, or (b) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such bond may be made without registration under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all bonds, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any.
| f. | Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf of the Buyer , and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms. |
| 3. | Representations and Warranties of the Company. The Company represents and warrants to the Buyer that: |
| a. | Organization and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted. “Subsidiaries” means any corporation or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly, any equity or other ownership interest. | |
| b. | Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the Bond and to consummate the transactions contemplated hereby and thereby and to issue the Bonds, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Bond by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Bond) have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized representative is the true and official representative with authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Bond, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms. | |
| c. | Intentionally Omitted. | |
| d. | Intentionally Omitted. | |
| e. |
No Conflicts. The execution, delivery and performance of this Agreement, the Bond by the Company and the consummation by the Company of the transactions contemplated hereby and thereby will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or its Bonds are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect). The businesses of the Company and its Subsidiaries, if any, are not being conducted, and shall not be conducted so long as the Buyer owns any of the bonds, in violation of any law, ordinance or regulation of any governmental entity. “Material Adverse Effect” means any material adverse effect on the business, operations, assets, financial condition or prospects of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith.
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| f. | SEC Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents” ). Upon written request, the Company will deliver to the Buyer true and complete copies of the SEC Documents, except for such exhibits and incorporated documents. As of their respective dates or if amended, as of the dates of the amendments, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, 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. None of the statements made in any such SEC Documents is, or has been, required to be amended or updated under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof). As of their respective dates or if amended, as of the dates of the amendments, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with United States generally accepted accounting principles, consistently applied, during the periods involved and fairly present in all material respects the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). The Company is subject to the reporting requirements of the 1934 Act. | |
| g. | Absence of Certain Changes. Since November 30, 2018, except as set forth in the SEC Documents, there has been no material adverse change and no material adverse development in the assets, liabilities, business, properties, operations, financial condition, results of operation s, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries. | |
| h. | Absence of Litigation. Except as set forth in the SEC Documents, there is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such, that could have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. | |
| i. | No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales in any bond or solicited any offers to buy any bond under circumstances that would require registration under the 1933 Act of the issuance of the bonds to the Buyer. The issuance of the bonds to the Buyer will not be integrated with any other issuance of the Company’s bonds (past, current or future) for purposes of any shareholder approval provisions applicable to the Company or its bonds. | |
| j. | No Brokers. The Company has taken no action, other than the payment of a finder’s fee as disclosed to the Buyer, which would give rise to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this Agreement or the transactions contemplated hereby. | |
| k. | No Investment Company. The Company is not, and upon the issuance and sale of the Bonds as contemplated by this Agreement will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment Company’’). The Company is not controlled by an Investment Company. | |
| l. | Breach of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of default under Section 3 of the Bond. |
| 4. | COVENANTS. |
| a. | Best Efforts. The Company shall use its best efforts to satisfy timely each of the conditions described in Section 7 of this Agreement. | |
| b. | Form D; Blue Sky Laws. The Company agrees to timely make any filings required by federal and state laws as a result of the closing of the transactions contemplated by this Agreement. | |
| c. | Use of Proceeds. The Company shall use the proceeds for general working capital purposes. | |
| d. | Intentionally Omitted. | |
| e. | Corporate Existence. So long as the Buyer beneficially owns any bond, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company’s assets, except with the prior written consent of the Buyer. | |
| f. | Breach of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default under Section 3.4 of the Bond. | |
| g. | Failure to Comply with the 1934 Act. So long as the Buyer beneficially owns the Bond, the Company shall comply with the reporting requirements of the 1934 Act; and the Company shall continue to be subject to the reporting requirements of the 1934 Act. | |
| h. | Trading Activities. Neither the Buyer nor its affiliates has an open short position in the common stock of the Company and the Buyer agrees that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging transactions with respect to the common stock of the Company. |
| 5. | Intentionally Omitted. |
| 6. | Condition to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Bond to the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions thereto, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion: |
| a. | The Buyer shall have executed this Agreement and delivered the same to the Company. | |
| b. | The Buyer shall have delivered the Purchase Price in accordance with Section l(b) above. | |
| c. | The representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date. | |
| d. | No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement. |
| 7. | Conditions to The Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Bond at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that these conditions are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion: |
| a. | The Company shall have executed this Agreement and delivered the same to the Buyer. | |
| b. | The Company shall have delivered to the Buyer the duly executed bond (in such denominations as the Buyer shall request) in accordance with Section l(b) above. | |
| c. | The representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date. The Buyer shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer including, but not limited to certificates with respect to the Board of Directors’ resolutions relating to the transactions contemplated hereby. | |
| d. | No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement. | |
| e. | No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934 Act reporting obligations. |
| 8. | Governing Law; Miscellaneous. |
| a. | Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Nevada (Clark County) or in the federal courts located in the Nevada. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non-convenience. The Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement, the Bond or any related document or agreement by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of deliver y) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. |
| b. | Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. | |
| c. | Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement. | |
| d. | Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof. | |
| e. | Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer. | |
| f. | Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be as set forth in the heading of this Agreement. Each party shall provide notice to the other party of any change in address. | |
| g. | Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that purchases Bonds in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act, without the consent of the Company. | |
| h. | Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement , including advancement of expenses as they are incurred. | |
| i. | Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. |
| j. | No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. | |
| k. | Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required. |
| 9. | In case of any discrepancy between the English version and the Chinese version, the English version shall prevail. |
IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.
The Company
| SIGNED by Lin, Yi-Hsiu | ) | |
| for and on behalf of LEADER CAPITAL HOLDINGS CORP. |
) ) |
|
| ) | ||
| whose signature(s) is/are verified by / in the presence of: |
) ) |
|
| ) | ||
| ) | ||
| Signature of witness: | ||
| Name of witness: | ||
The Buyer
| SIGNED by __________________ | ) | |
| whose signature(s) is/are verified by / in the presence of: |
) ) ) |
|
| ) | ||
| Signature of witness: | ) | |
| ) | ||
| Name of witness: | ||
| AGGREGATE SUBSCRIPTION AMOUNT: | ||
| Aggregate Principal Amount of Bond: | US$600,000.00 | |
| Aggregate Purchase Price: | US$600,000.00 |