Exhibit
99.1
SHARE
EXCHANGE AGREEMENT
This
Share Exchange Agreement (“the Agreement”), dated as of the 22nd day of December 2021, by and between:
Party-1:
FDCTECH, INC. of 200 Spectrum Center Drive, Suite 300, Irvine, CA 92618 (the “Company”); and
Party-2:
AD FINANCIAL SERVICES PTY LTD ACN 628 331 117 of Level 38/71 Eagle St, Brisbane, Queensland Australia, 4000 (“the Target”
or “ADFS”).
Party-1
and Party-2 are referred to individually and jointly in the Agreement as a “Party” or “Parties” with reference
to the following:
RECITALS:
A.
The Company is prepared to acquire approximately 51% of the issued and outstanding shares of capital stock in the Target;
B.
The Target is 100% owned by ADFP Pty Ltd (“ADFP”);
C.
The Company has issued capital stock of 92,911,264 shares of $0.0001 par value common stock. The shares of common stock of the Company
are registered under Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are publicly
traded on the OTCQB of the OTC Markets (“OTC”) under the symbol “FDCT”. Upon the Closing (as defined below in
Section 1.2.1), the Company will issue 45,000,000 shares of its common stock to ADFP in exchange for 62,450,000 shares of ADFS, representing
fifty-one percent (51%) of the isiisued and outstanding capital stock of ADFS.
D.
All “$” mean United States Dollars herein, unless specifically indicated otherwise;
E.
It is the intention of the Parties that: (i) the issuance and exchange of the respective shares of the Parties hereunder shall qualify
as a tax-free reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”); and (ii)
that said exchange shall qualify as a transaction in “securities” exempt from registration or qualification under the United
States Securities Act of 1933, as amended and in effect on the Closing of this Agreement (the “Securities Act”); and
F.
The Parties agree that the Annexes hereto shall be “Exhibits” to this Agreement. Though the documents or information mentioned
in the Annexes shall not be “Exhibits” to the Agreement, they shall be integral to the representations and warranties of
the respective Parties in all respects and made a part hereof for all such purposes.
NOW,
THEREFORE, the Parties hereto agree as follows:
1.
ARTICLE 1
THE
TRANSACTION
1.1.
At the Closing, a minimum of 51% of the 122,450,000 issued and outstanding shares of capital stock of the Target shall be acquired by
the Company, being 62,450,000 shares, in exchange for 45,000,000 newly issued “restricted” common shares of the Company to
be issued to ADFP and which shall represent the full and complete consideration paid under this Agreement for the 51% acquisition of
Target (the “Consideration”).
1.2.
At the Closing, the Target will become a majority-owned subsidiary of the Company.
1.3.
At the Closing, ADFP will transfer to the Company, a minimum of 51% of the shares of stock in the Target, and all of such shares shall
be transferred to the Company free and clear from all security interests, liens, judgments or other encumbrances, such that the Company
shall then become the 51% owner of all issued and outstanding shares of the Target. ADFP shall exchange their certificates representing
the Target shares for the Company Shares by delivering such stock certificates to the Company duly executed and endorsed in the blank
(or accompanied by duly executed stock powers duly endorsed in blank), in each case in proper form for transfer, with signatures guaranteed
(unless waived by the Company), and, if applicable, with all stock transfer and any other required documentary stamps affixed thereto
with appropriate instructions to authorize the Company’s transfer agent to exchange Company Shares for the Target Shares.
1.4.
At the Closing, ADFP will arrange for signing and delivery of all auxiliary documents substantially similar to those described in the
Closing Memorandum (Annex A) of this Agreement, and other legal documents as may become needed to conclude the transaction in the State
of California and perfect it in such other jurisdictions where the Company may have its interests in, including but not limited to, other
states in the United States of America and elsewhere.
1.5.
At the Closing, the Company shall deliver the Consideration in accordance with this Agreement to ADFP such that ADFP shall receive 45
million shares of the Company’s common stock for 62,450,000 shares of Target’s stock.
1.6.
The Company Shares issued and delivered to ADFP shall be subject to resale restrictions imposed pursuant to the Securities Act and thus
restricted for a period of at least twelve (12) months from the date on which the Company files all of its Form 10 Information with the
U.S. Securities and Exchange Commission following the date of issuance.
1.7.
ADFP acknowledges that the Company Shares are being issued pursuant to an exemption from the registration requirements promulgated by
the U.S. Securities and Exchange Commission and agrees to abide by all applicable resale restrictions and hold periods imposed by applicable
securities legislation.
2.
ARTICLE 2
THE
CLOSING
2.1
The Closing of the Agreement (the “Closing) shall take place on or before December 31, 2021 USA EST and subject to the conditions
to the Closing set forth in this Agreement having been satisfied or waived, or at such other time and date as the Parties hereto shall
agree in writing (the “Closing Date”), simultaneously at the offices of the Target Level 38/71 Eagle St, Brisbane, Queensland
Australia and the offices of The Company and electronically as required. The parties will use their good faith efforts to attempt to
close the transaction on December 31, 2021 or as soon thereafter as reasonably practicable provided however that the record date for
the stock issued hereunder shall be December 31, 2021.
3.
ARTICLE 3
REPRESENTATIONS
AND WARRANTIES OF THE COMPANY
The
Company hereby represents and warrants to The Target that:
3.1
The Company shall deliver to The Target on or before the Closing, each of the following:
(a)
Financial Statements. Financial statements for the fiscal years ended December 31, 2020 and 2019, including, but not limited to, balance
sheets and profit and loss statements, prepared in accordance with United States generally accepted accounting principles and which fairly
present the financial condition of the Company at the date or dates thereof. (Annex B).
3.2
Organization, Standing and Power. The Company is a corporation duly organized, validly existing, and in good standing under the laws
of the State of Delaware with all requisite corporate power to own or lease its properties and carry on its businesses as are now being
conducted.
3.3
Qualification. The Company is duly qualified and is licensed as a foreign corporation authorized to do business in each jurisdiction
wherein it conducts its business operations.
Capitalization
of the Company. On the Closing Date, immediately before the Closing, the Company shall have 92,911,264 shares of common stock, $0.0001
par value per share issued;
3.4
Authority. The execution and delivery of this Agreement and consummation of the transactions contemplated herein have been duly authorized
by all necessary corporate action, including, but not limited to duly and validly authorized action and approval by the Board of Directors,
on the part of the Company. This Agreement constitutes the valid and binding obligation of the Company and is enforceable against it
in accordance with its terms, subject to the principles of equity applicable to the availability of the remedy of specific performance.
This Agreement has been duly executed by the Company, and the execution and delivery of this Agreement and the consummation of the transactions
contemplated by this Agreement shall not result in any breach of any terms or provisions of the Company’s Certificates and Articles
of Incorporation or Bylaws or of any other document of organization, agreement, court order or instrument to which the Company is a party
or bound by.
3.5
Absence of Undisclosed Liabilities. The Company has no material liabilities of any nature, whether fixed, absolute, contingent, or accrued,
which were not reflected on the financial statements set forth in Annex B or otherwise disclosed in this Agreement or any of the Annexes
delivered hereunder or Exhibits attached hereto.
3.6
Absence of Changes. Since December 31, 2020, there has not been any material adverse change in the condition (financial or otherwise),
assets, liabilities, earnings or business of the Company, except for changes occurring in the ordinary course of business and those changes
contemplated by this Agreement.
3.7
Tax Matters. All taxes and other assessments and levies which the Company is required by applicable law to withhold or to collect have
been duly withheld and collected, and have been paid over to the proper government authorities or are held by the Company in separate
bank accounts for such payment or are represented by depository receipts, and all such withholdings and collections and all other payments
due in connection therewith (including, without limitation, employment taxes, both the employee’s and employer’s share) have
been paid over to the government or placed in a separate and segregated bank account for such purpose. There are no known deficiencies
in income taxes for any periods and further, the representations and warranties as to absence of undisclosed liabilities contained in
Section 3.5 includes any and all tax liabilities of whatsoever kind or nature (including, without limitation, all United States federal,
state or local, and foreign, income, profit, franchise, sales, use and property taxes) due or to become due, incurred in respect of or
measured by the Company income or business prior to the Closing Date.
3.8
Options, Warrants, Etc. Except as otherwise described in Section 4.8, there are no outstanding options, warrants, calls, commitments
or agreements of any character to which the Company is a party or by which the Company is bound, or is a party, calling for the issuance
of shares of capital stock of the Company or any securities representing the right to purchase or otherwise receive any such capital
stock of the Company.
3.9
Brokers and Finders. The Company shall be solely responsible for payment to any broker or finder retained by the Company for any brokerage
fees, commissions or finders’ fees in connection with the transactions contemplated herein.
3.10
Accuracy of Information. No representation or warranty by the Company contained in this Agreement and no statement contained in any certificate
or other instrument delivered or to be delivered to Party 2 pursuant hereto or in connection with the transactions contemplated hereby
(including without limitation all Annexes and Exhibits hereto) contains or will contain any untrue statement of material fact or omits
or will omit to state any material fact necessary in order to make the statements contained herein or therein not misleading.
3.11
Subsidiaries. The Company does not have any other subsidiaries or own capital stock representing 10% or more of the issued and outstanding
stock of any other corporation.
3.12
Consents. Except as specifically listed, no consent or approval of, or registration, qualification or filing with, any governmental authority
or other person is required to be obtained or accomplished by the Company or any shareholder thereof in connection with the consummation
of the transactions contemplated hereby.
3.13
Improper Payments. Neither the Company nor any person acting on behalf of the Company has made any payment or otherwise transmitted anything
of value, directly or indirectly, to (a) any official or any government or agency or political subdivision thereof for the purpose of
influencing any decision affecting the business of the Company (b) any customer, supplier or competitor of the Company or employee of
such customer, supplier or competitor, for the purpose of obtaining, retaining or directing
3.14
business for the Company or (c) any political party or any candidate for elective political office nor has any fund or other asset of
the Company been maintained that was not fully and accurately recorded on the books of account of the Company.
3.15
Copies of Documents. The Company has made available for inspection and copying by Party 2 and its or his duly authorized representatives,
and will continue to do so at all times, true and correct copies of all documents which it has filed with the U.S. Securities and Exchange
Commission (“SEC”) and all other governmental agencies which are material to the terms and conditions contained in this Agreement.
Furthermore, all filings by the Company with the SEC, and all other governmental agencies, including, but not limited to the United States
Internal Revenue Service, have contained information which is true and correct, to the best knowledge of the Board of Directors of the
Company, in all material aspects and did not contain any untrue statement of a material fact or omit to state any material fact necessary
to make the statements made therein not misleading or which could have any material adverse effect upon the financial condition or operations
of the Company or adversely affect the objectives of this Agreement with respect to Target including, but not limited to, the issuance
and subsequent trading of the shares of common stock of the Company to be received hereby, subject to compliance by the shareholders
with applicable securities laws, rules, and regulations.
3.16
Environmental Compliance. Except in compliance with Environmental Laws, the Company has not caused or permitted, and the Company has
no knowledge of, any material release or disposal by any person of any hazardous substance on or from any premises formerly or presently
used in the business. All hazardous substances generated, handled, stored, treated, processed, transported, or disposed of in the course
of the business have been generated, handled, stored, treated, processed, transported, or disposed of in all material respects, in compliance
with applicable Environmental Laws and any environmental permits.
4.
ARTICLE 4
REPRESENTATIONS
AND WARRANTIES
OF
THE TARGET
Party
2, on behalf of the Target and any beneficial or nominal owner of Target, in all material respects and as may be applicable to complete
the acquisition of Target by the Company, hereby represent and warrant to the Company as follows:
4.1
Party 2 shall deliver to the Company, on or before the Closing, the following, accompanied by English language translation:
(a)
Financial Statements. Financial statements of Target for the period from inception to June 2021, prepared in accordance with Australian
generally accepted accounting principles and which fairly present the financial condition of the Target at the date thereof
(b)
Shareholders. A complete list of all persons or entities holding capital stock or participatory interest of Target or any rights to subscribe
for acquire, or receive shares of the capital stock of Target (whether warrants, calls, options, or conversion rights), including copies
of all stock option plans whether qualified or nonqualified, and other similar agreements.
4.2
Organization, Standing and Power. Target is a corporation duly organized, validly existing and in good standing under the laws of the
State of Queenslnd with all requisite corporate power to own or lease its properties and carry on its business as is now being conducted.
4.3
Qualification. Target is duly qualified and licensed as a foreign corporation authorized to do business in each jurisdiction wherein
it conducts business operations. Such jurisdictions, which are the only jurisdictions in which Target is duly qualified and licensed
as a foreign corporation
4.4
Authority. The execution and delivery of this Agreement and consummation of the transactions contemplated herein have been duly authorized
by all necessary corporate action, including but not limited to duly and validly authorized action and approval by the Board of Directors
or other required persons on behalf of Target, and by ADFP. This Agreement constitutes the valid and binding obligation of Target and
ADFP, enforceable against Target and each Participant 1 through 15 in accordance with its terms, subject to the principles of equity
applicable to the availability of the remedy of specific performance. This Agreement has been duly executed, as applicable, by Target
and ADFP and the execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement shall
not result in any breach of any terms or provisions of Target’s Articles of Incorporation or Bylaws or of any other agreement,
court order or instrument to which Target or ADFP is a party or bound.
4.5
Absence of Undisclosed Liabilities. Target has no material liabilities of any nature, whether fixed, absolute, contingent or accrued,
which were not reflected on the financial statements or otherwise disclosed in this Agreement or any of the Annexes or Exhibits attached
hereto.
4.6
Absence of Changes. Since the period from inception through 30th June, 2021, and to the date hereof, there has not been any material
adverse change in the condition (financial or otherwise), assets, liabilities, earnings or business of Target, except for changes resulting
from completion of those transactions contemplated herein.
4.7
Tax Matters. All taxes and other assessments and levies which Target is required by applicable law to withhold or to collect have been
duly withheld and collected, and have been paid over to the proper government authorities or are held by Target in separate bank accounts
for such payment or are represented by depository receipts, and all such withholdings and collections and all other payments due in connection
therewith (including, without limitation, employment taxes, both the employee’s and employer’s share) have been paid over
to the government or placed in a separate and segregated bank account for such purpose. There are no known deficiencies in income taxes
for any periods and further, the representations and warranties as to absence of undisclosed liabilities contained in Section 4.5 includes
any and all tax liabilities of whatsoever kind or nature (including, without limitation, all federal, provincial, local and foreign income,
profit, franchise, sales, use and property taxes) due or to become due, incurred in respect of or measured by Target income or business
prior to the Closing Date.
4.8
Options, Warrants, etc. Except as otherwise described, there are no outstanding options, warrants, calls, commitments or agreements of
any character to which Target or its shareholders are a party or by which Target or its shareholders are bound, or are a party, calling
for the issuance of shares of capital stock of Target or any securities representing the right to purchase or otherwise receive any such
capital stock of Target.
4.9
Title to Assets. Except for liens set forth in the financial statements, Target is the sole and unconditional owner of, with good and
marketable title to all the assets and patents listed in the Annexes as owned by them and all other property and assets are free and
clear of all mortgages, liens, pledges, charges or encumbrances of any nature whatsoever.
4.10
Agreements in Force and Effect. Except as disclosed the Target has not breached any material provision of, and is not in default in any
material respect under the terms of, any such contract, agreement, plan, promissory note, mortgage, lease, policy, license, franchise
or similar instrument which breach or default would have a material adverse effect upon the business, operations or financial condition
of Target.
4.11
Legal Proceedings, Etc. Except as disclosed there are no civil, criminal, administrative, arbitration or other such proceedings or investigations
pending or, to the knowledge of the Parties, threatened, in which, individually or in the aggregate, an adverse determination would materially
and adversely affect the assets, properties, business or income of Target. Target has substantially complied with, and is not in default
in any material respect under, any laws, ordinances, requirements, regulations or orders applicable to its businesses.
4.12
Governmental Regulation. To the knowledge of the Parties, the Target is not in violation of or in default with respect to any applicable
law or any applicable rule, regulation, order, writ or decree of any court or any governmental commission, board, bureau, agency or instrumentality,
or delinquent with respect to any report required to be filed with any governmental commission, board, bureau, agency or instrumentality
which violation or default could have a material adverse effect upon the business, operations or financial condition of Target.
4.13
Broker and Finders. Party 2 shall be solely responsible for payment to any broker or finder retained by Party 2 for any brokerage fees,
commissions or finders’ fees in connection with the transactions contemplated herein.
4.14
Accuracy of Information. No representation or warranty by ADFP contained in this Agreement and no statement contained in any certificate
or other instrument delivered or to be delivered to the Company pursuant hereto or in connection with the transactions contemplated hereby
(including without limitation all Annexes and Exhibits hereto) contains or will contain any untrue statement of a material fact or omits
or will omit to state any material fact necessary in order to make the statements contained herein or therein not misleading.
4.15
Subsidiaries. Except as disclosed the Target does not have any other subsidiaries or own capital stock representing ten percent (10%)
or more of the issued and outstanding stock of any other corporation.
4.16
Consents. Except as disclosed, no consent or approval of, or registration, qualification or filing with, any other governmental authority
or other person is required to be obtained or accomplished by Target in connection with the consummation of the transactions contemplated
hereby.
4.17
Improper Payments. No person acting on behalf of Target has made any payment or otherwise transmitted anything of value, directly or
indirectly, to (a) any official or any government or agency or political subdivision thereof for the purpose of influencing any decision
affecting the business of Target, or (b) any political party or any candidate for elective political office, nor has any fund or other
asset of Target been maintained that was not fully and accurately recorded on the books of account of Target.
4.18
Copies of Documents. Target has made available for inspection and copying by the Company and its duly authorized representatives, and
will continue to do so at all times, true and correct copies of all documents which it has filed with any governmental agencies which
are material to the terms and conditions contained in this Agreement. Furthermore, all filings by Target with governmental agencies,
including but not limited to any taxing authority, have contained information which is true and correct in all material respects and
did not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements made therein
not misleading or which could have any material adverse effect upon the financial condition or operations of Target or adversely affect
the objectives of this Agreement.
4.19
Status of Target’s Shares. ADFP represents individually as to all of the shares of Target capital stock owned by said shareholder,
that the shares are owned free and clear of all security interests, liens, judgments and other encumbrances, and will be transferred
to the Company at the Closing free and clear from all security interests, liens, judgments and other encumbrances.
4.20
Sophisticated Investors. ADFP is a sophisticated investor, able to understand the merits and risks of entering into this Agreement and
consummating the transactions contemplated herein, and has had access to all information concerning the Company, its assets, liabilities
and business that ADFP believe is material to their respective investment decisions.
4.21
Environmental Compliance. Except in compliance with Environmental Laws, Target has not caused or permitted, and Target has no knowledge
of, any material release or disposal by any person of any hazardous substance on or from any premises formerly or presently used in the
business. All hazardous substances generated, handled, stored, treated, processed, transported or disposed of in the course of the business
have been generated, handled, stored, treated, processed, transported or disposed of in all material respects, in compliance with applicable
Environmental Laws and any environmental permits.
5.
ARTICLE 5
CONDUCT
AND TRANSACTIONS PRIOR TO THE
EFFECTIVE
TIME OF THE SHARE EXCHANGE
5.1
Parties Conduct and Transactions. During the period from the date hereof to the date of Closing, the Parties shall cause the Company
and the Target to:
(a)
Conduct their operations in the ordinary course of business, including but not limited to, paying all obligations as they mature, complying
with all applicable tax laws, filing all tax returns required to be filed and paying all taxes due;
(b)
Maintain their records and books of account in a manner that fairly and correctly reflects its income, expenses, assets and liabilities;
5.2
The Company Conduct and Transactions. Except as otherwise provided for in this Agreement, the Company shall not during such period, except
in the ordinary course of business, without the prior written consent of Target:
(a)
Except as otherwise contemplated or required by this Agreement, sell, dispose of or encumber any of its properties or assets;
(b)
Declare or pay any dividends on shares of its capital stock or make any other distribution of assets to the holders thereof;
(c)
Issue, reissue or sell, or issue options or rights to subscribe to, or enter into any contract or commitment to issue, reissue or sell,
any shares of its capital stock or acquire or agree to acquire any shares of its capital stock, except as provided herein in Recital
C, and Sections 7.1;
(d)
Except as otherwise contemplated and required by this Agreement, amend its Articles of Incorporation or merge or consolidate with or
into any other corporation or sell all or substantially all of its assets or change in any manner the rights of its capital stock or
other securities;
(e)
Except as contemplated or required by this Agreement, pay or incur any obligation or liability, direct or contingent, of more than $1,000,
other than in the ordinary course of business, excluding such payment as may be required for the purposes of completion and the closing
of the transactions described in this Agreement;
(f)
Incur any indebtedness for borrowed money, assume, guarantee, endorse or otherwise become responsible for obligations of any other party,
or make loans or advances to any other party, excluding the transactions contemplated by this Agreement;
(g)
Make any material change in its insurance coverage;
(h)
Increase in any manner the compensation, direct or indirect, of any of its officers or executive employees; except in accordance with
existing employment contracts;
(i)
Enter into any agreement or make any commitment to any labor union or organization;
(j)
Make any capital expenditures, excluding the transactions contemplated by this Agreement.
5.3
Conduct and Transactions of Target. During the period from the date hereof to the date of Closing, Target shall:
(a)
Obtain an Investment Letter from each of the beneficiary shareholders or owners of Target in a form substantially like that attached
hereto as Exhibit “B”.
(b)
Conduct the operations of Target in the ordinary course of business.
5.4
Except as otherwise provided for in this Agreement, Target shall not during such period, except in the ordinary course of business, without
the prior written consent of the Company:
(a)
Except as otherwise contemplated or required by this Agreement, sell, dispose of or encumber any of the properties or assets of Target;
(b)
Declare or pay any dividends on shares of its capital stock or make any other distribution of assets to the holders thereof;
(c)
Issue, reissue or sell, or issue options or rights to subscribe to, or enter into any contract or commitment to issue, reissue or sell,
any shares of its capital stock or acquire or agree to acquire any shares of its capital stock;
(d)
Except as otherwise contemplated and required by this Agreement, amend its Articles of Incorporation or merge or consolidate with or
into any other corporation or sell all or substantially all of its assets or change in any manner the rights of its capital stock or
other securities;
(e)
Except as otherwise contemplated and required by this Agreement, pay or incur any obligation or liability, direct or contingent, of more
than $1,000, other than in the ordinary course of business;
(f)
Except as otherwise contemplated and required by this Agreement, incur any indebtedness for borrowed money, assume, guarantee, endorse
or otherwise become responsible for obligations of any other party, or make loans or advances to any other party, other than in the ordinary
course of business;
(g)
Make any material change in its insurance coverage;
(h)
Increase in any manner the compensation, direct or indirect, of any of its officers or executive employees; except in accordance with
existing employment contracts;
(i)
Enter into any agreement or make any commitment to any labor union or organization;
(j)
Make any material capital expenditures.
(k)
Unless contemplated by this Agreement, allow any of the foregoing actions to be taken by any subsidiary of Target.
6.
ARTICLE 6
RIGHTS
OF INSPECTION
6.1
During the period from the date of this Agreement to the Closing Date, the Company and Target agree to use their best efforts to give
the other Party, including its representatives and agents, full access to the premises, books and records of each of the Parties, and
to furnish the other with such financial and operating data and other information including, but not limited to, copies of all legal
documents and instruments referred to on any Annex or Exhibit hereto, with respect to the business and properties of the Company or Target
or otherwise as may be necessary for the completion of the transactions contemplated hereby, as the case may be, as the other shall from
time to time request; provided, however, if there are any such investigations:
1)
they shall be conducted in such manner as not to unreasonably interfere with the operation of the business of the other Parties and
2)
such right of inspection shall not affect in any way whatsoever any of the representations or warranties given by the respective Parties
hereunder. In the event of termination of this Agreement, the Company and Target will each return to the other all documents, work papers
and other materials obtained from the other Party in connection with the transactions contemplated hereby, and will take such other steps
necessary to protect the confidentiality of such material.
7.
ARTICLE 7
CONDITIONS
TO CLOSING
7.1
Conditions to Obligations of the Target. The obligations of the Target to perform this Agreement are subject to the satisfaction of the
following conditions on or before the Closing unless waived in writing.
(a)
Representations and Warranties. There shall be no information disclosed in the Annexes delivered by ADFP, which in the opinion of the
Company, would materially adversely affect the proposed transaction and intent of the Parties as set forth in this Agreement. The representations
and warranties of ADFP set forth in Article 4 hereof shall be true and correct in all material respects as of the date of this Agreement
and as of the Closing as though made on and as of the Closing, except as otherwise permitted by this Agreement.
(b)
Performance of Obligations. The ADFP shall have in all material respects performed all agreements required to be performed by it under
this Agreement and shall have performed in all material respects any actions contemplated by this Agreement prior to or on the Closing
and ADFP shall have complied in all material respects with the course of conduct required by this Agreement.
(c)
Corporate Action. ADFP shall have furnished minutes, certified copies of corporate resolutions and/or other documentary evidence satisfactory
to the Company that ADFP has submitted with this Agreement and any other documents required hereby to such Parties for approval as provided
by applicable law.
(d)
Consents. Execution of this Agreement by the shareholders of Target and any consents necessary for or approval of any Party listed on
any Annex whose consent or approval is required pursuant thereto shall have been obtained.
(e)
Statutory Requirements. All statutory requirements for the valid consummation by ADFP of the transactions contemplated by this Agreement
shall have been fulfilled.
(f)
Governmental Approval. All authorizations, consents, approvals, permits and orders of all federal and state governmental agencies required
to be obtained by ADFP for consummation of the transactions contemplated by this Agreement shall have been obtained.
(g)
Changes in Financial Condition of the Target. There shall not have occurred any material adverse change in the financial condition or
in the operations of the business of the Target, except expenditures in furtherance of this Agreement, and excluding the transactions
contemplated by this Agreement.
(h)
Absence of Pending Litigation. The Target is not engaged in or threatened with any suit, action, or legal, administrative or other proceedings
or governmental investigations pertaining to this Agreement or the consummation of the transactions contemplated hereunder.
(i)
Authorization for Issuance of Stock. The Company shall have received in form and substance satisfactory to them a letter instructing
and authorizing the Registrar and Transfer Agent for the shares of common stock of the Target to issue stock certificates representing
ownership of the Target common stock to the Company in accordance with the terms of this Agreement.
7.2
Conditions or obligations on behalf of The Company
(a)
Representations and Warranties. There shall be no information disclosed in the Annexes delivered by the Company which in the opinion
of the ADFP, would materially adversely affect the proposed transaction and intent of the Parties as set forth in this Agreement. The
representations and warranties of the set forth in Article 3 hereof shall be true and correct in all material respects as of the date
of this Agreement and as of the Closing as though made on and as of the Closing, except as otherwise permitted by this Agreement.
(b)
Performance of Obligations. Company shall have in all material respects performed all agreements required to be performed by it under
this Agreement and shall have performed in all material respects any actions contemplated by this Agreement prior to or on the Closing
and Company shall have complied in all respects with the course of conduct required by this Agreement.
(c)
Statutory Requirements. All statutory requirements for the valid consummation by ADFP and of the transactions contemplated by this Agreement
shall have been fulfilled.
(d)
Governmental Approval. All authorizations, consents, approvals, permits and orders of all federal and state governmental agencies required
to be obtained by Company for consummation of the transactions contemplated by this Agreement shall have been obtained.
(e)
Absence of Pending Litigation. The Company is not engaged in or threatened with any suit, action, or legal, administrative or other proceedings
or governmental investigations pertaining to this Agreement or the consummation of the transactions contemplated hereunder.
8.
ARTICLE 8
MATTERS
SUBSEQUENT TO CLOSING
8.1
Covenant of Further Assurance. The Parties covenant and agree that they shall, from time to time, execute and deliver or cause to be
executed and delivered all such further instruments of conveyance, transfer, assignments, receipts and other instruments, and shall take
or cause to be taken such further or other actions as the other Party or Parties to this Agreement may reasonably deem necessary in order
to carry out the purposes and intent of this Agreement.
9.
ARTICLE 9
NATURE
AND SURVIVAL OF REPRESENTATIONS
9.1
All statements contained in any written certificate, Annex, exhibit or other written instrument delivered by the Company or Target or
otherwise pursuant hereto, or otherwise adopted by the Company, by its written approval, or by Target by its written approval, or in
connection with the transactions contemplated hereby, shall be deemed representations and warranties by the Company or Target, as the
case may be. All representations, warranties and agreements made by either Party shall survive for a period of two years, or until the
discovery of any claim, loss, liability or other matter based on fraud, if longer, but not longer than three years from the date hereof.
10.
ARTICLE 10
TERMINATION
OF AGREEMENT
AND
ABANDONMENT OF MERGER
10.1
Termination. Anything herein to the contrary notwithstanding, this Agreement and any agreement executed as required hereunder and the
acquisition contemplated hereby may be terminated at any time before the Closing as follows:
(a)
By mutual written consent of the Parties.
(b)
By the Board of Directors of the Company if any of the conditions set forth in Section 7.1 shall not have been satisfied by the Closing
Date.
(c)
By Target if any of the conditions set forth in Section 7.1 shall not have been satisfied by the Closing Date.
10.2
Termination of Obligations and Waiver of Conditions; Payment of Expenses. In the event this Agreement and the acquisition are terminated
and abandoned pursuant to this Article 10 hereof, this Agreement shall become void and of no force and effect, and there shall be no
liability on the part of any of the Parties hereto, or their respective directors, officers, shareholders or controlling persons to each
other. Each Party hereto will pay all costs and expenses incident to its or his negotiation and preparation of this Agreement and any
of the documents evidencing the transactions contemplated hereby, including fees, expenses and disbursements of counsel.
11.
ARTICLE 11
EXCHANGE
OF SHARES
11.1
Exchange of Shares. At the Closing, the Company shall issue a letter to the transfer agent of the Company with a copy of the resolution
of the Board of Directors of the Company authorizing and directing the issuance of the Company shares as contemplated by this Agreement.
At the Closing, ADFP shall deliver his/her/its share certificate representing all of the shares of Target’s capital shares being
transferred to the Company duly endorsed in blank.
11.2
Restrictions on Shares Issued to ADFP. Due to the fact ADFP will receive shares of the Company’s common stock in connection with
the acquisition which have not been registered under the Securities Act by virtue of the exemption provided in Section 4(2) of the Securities
Act and SEC Rule 506 or SEC Regulation S, stock certificates representing those shares of the Company will contain the following legend
or a reasonable facsimile thereof:
“The
shares represented by this certificate have not been registered under the Securities Act of 1933, as amended. The shares have been acquired
for investment and may not be sold or offered for sale in the absence of an effective registration statement for the shares under the
Securities Act of 1933, as amended, or an opinion of counsel to the Corporation that such registration is required.”
12.
ARTICLE 12
MISCELLANEOUS
12.1
Construction. This Agreement shall be construed and enforced in accordance with the laws of the State of California excluding the conflicts
of laws.
12.2
Notices. All notices necessary or appropriate under this Agreement shall be effective when personally delivered or deposited in the United
States mail, postage prepaid, certified or registered, return receipt requested, and addressed to the Parties last known addresses which
currently located at the addresses in the recitals of descriptions in this Agreement.
12.3
Amendment and Waiver. The Parties hereby may, by mutual agreement in writing signed by each Party, amend this Agreement in any respect.
Any term or provision of this Agreement may be waived in writing at any time by the Party, which is entitled to the benefits thereof,
such waiver right shall include, but not be limited to, the right of either Party to:
(a)
Extend the time for the performance of any of the obligations of the other;
(b)
Waive any inaccuracies in representations by the other contained in this Agreement or in any document delivered pursuant hereto;
(c)
Waive compliance by the other with any of the covenants contained in this Agreement, and performance of any obligations by the other;
and
(d)
Waive the fulfillment of any condition that is precedent to the performance by the Party so waiving of any of its obligations under this
Agreement. Any writing on the part of a Party relating to such amendment, extension or waiver as provided in this Section 12.3 shall
be valid if authorized or ratified by the Board of Directors of such Party.
12.4
Remedies not Exclusive. No remedy conferred by any of the specific provisions of this Agreement is intended to be exclusive of any other
remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter
existing at law or in equity or by statute or otherwise. The election of any one or more remedies by the Company or Target shall not
constitute a waiver of the right to pursue other available remedies.
12.5
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. A facsimile signature or email of a pdf file of a signature shall be accepted
and deemed to be a valid execution of this Agreement.
12.6
Benefit. This Agreement shall be binding upon, and inure to the benefit of, the respective successors and assigns of the Company and
Target and its participants and shareholders.
12.7
Entire Agreement. This Agreement and the Annexes and Exhibits attached hereto, represent the entire agreement of the undersigned regarding
the subject matter hereof, and supersedes all prior written or oral understandings or agreements between the Parties; provided, however,
the Annexes shall not be considered “Exhibits” to this Agreement.
12.8
Each Party to Bear its Own Expense. The Company and Target shall each bear their own respective expenses incurred in connection with
the negotiation, execution, closing, and performance of this Agreement, including counsel fees and accountant fees.
12.9
Captions and Section Headings. Captions and section headings used herein are for convenience only and shall not control or affect the
meaning or construction of any provision of this Agreement.
IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.
Party-1:
FDCTECH, INC.
| /s/
Mitchell M. Eaglstein |
|
| By:
Mitchell M. Eaglstein, CEO |
|
Party-2:
ADFP PTY LTD
| /s/
Jonathon Thomas |
|
| BY:
Jonathon Thomas, Director |
|
