-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CsaRhzDE0gbjPFw3ti+d9SvodI9gF7gVZf4JzoqysEwNz0CFRkjnHXy1RfYi5GB2 fwzXYM39Ox43dghTPGKNWw== 0001140361-10-041916.txt : 20101022 0001140361-10-041916.hdr.sgml : 20101022 20101022113318 ACCESSION NUMBER: 0001140361-10-041916 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20101020 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Unregistered Sales of Equity Securities ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20101022 DATE AS OF CHANGE: 20101022 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHINA BROADBAND INC CENTRAL INDEX KEY: 0000837852 STANDARD INDUSTRIAL CLASSIFICATION: CABLE & OTHER PAY TELEVISION SERVICES [4841] IRS NUMBER: 201777837 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19644 FILM NUMBER: 101136539 BUSINESS ADDRESS: STREET 1: 1900 NINTH STREET STREET 2: 3RD FLOOR CITY: BOULDER STATE: CO ZIP: 80302 BUSINESS PHONE: 760-804-8844 MAIL ADDRESS: STREET 1: 1900 NINTH STREET STREET 2: 3RD FLOOR CITY: BOULDER STATE: CO ZIP: 80302 FORMER COMPANY: FORMER CONFORMED NAME: ALPHA NUTRA INC DATE OF NAME CHANGE: 20060922 FORMER COMPANY: FORMER CONFORMED NAME: ALPHA NUTRACEUTICALS INC DATE OF NAME CHANGE: 20040115 FORMER COMPANY: FORMER CONFORMED NAME: SIERRA ROCKIES CORP DATE OF NAME CHANGE: 19970604 8-K 1 form8k.htm CHINA BROADBAND, INC 8-K 10-20-2010 form8k.htm


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):  October 22, 2010 (October 20, 2010)

CHINA BROADBAND, INC.
(Exact name of registrant as specified in its charter)

Nevada
000-19644
20-1778374
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

27 Union Square, West Suite 502
New York, New York  10003
Telephone No.: 212-206-1216
(Address and telephone number of Registrant's principal
executive offices and principal place of business)

1900 Ninth Street, 3rd Floor Boulder, Colorado 80302
(Former name or 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 (see General Instruction A.2. below):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
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.
Item 3.02
Unregistered Sales of Equity Securities

On October 20, 2010, China Broadband, Inc. (the “Company”) entered into separate Warrant Exchange Agreements (the “Agreements”) with the holders of different series of warrants to purchase shares of the Company’s common stock (“Warrants”).  Pursuant to the Agreements, (i) the holders of Warrants issued on January 11, 2008  to purchase an aggregate of 9,699,993 shares of the Company’s common stock at an exercise price of $0.20 per share, have exchanged their Warrants for an aggregate of 485,000 shares of the Company’s common stock, and (ii) the holders of Warrants issued on July 30, 2010 to purchase an aggregate of 622,591,300 shares of the Company’s common stock at an exercise price of $0.05 per share, have exchanged their Warrants for an aggregate of 373,5 54,780 shares of the Company’s common stock.  Following the consummation of the transactions contemplated by the Agreements, there are 829,836,723 shares of common stock outstanding (on a fully diluted basis) and 11,393,500 Warrants to purchase shares of Company common stock at exercise prices ranging from $0.60 to $2.00.

The issuance of the foregoing securities pursuant to the Agreements was made in reliance on the exemption provided by Section 3(a)(9) and Section 4(2) of the Securities Act of 1933, as amended (the “Act”). None of the securities issued in connection with Agreements have been registered under the Act and may not be offered or sold absent registration or an applicable exemption from registration requirements. This current report on Form 8-K does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

Item 8.01
Other Events

On October 20, 2010, the Company issued a press release announcing the consummation of the transactions contemplated by the Agreements.  A copy of the press release, which the Company is furnishing to the SEC, is attached as Exhibit 99.1 hereto and incorporated by reference herein.

Item 9.01
Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.
 
Description
 
Form of Warrant Exchange Agreement, dated October 20, 2010, between the Company and the holders of Warrants dated July 30, 2010
 
Form of Warrant Exchange Agreement, dated October 20, 2010, between the Company and the holders of Warrants dated January 11, 2010
 
Press Release dated October 20, 2010

 
 

 

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.


 
CHINA BROADBAND, INC.
     
   
 
 
Date: October 22, 2010
By:
/s/Marc Urbach
 
 
Marc Urbach
President
 
 

EX-10.1 2 ex10_1.htm EXHIBIT 10.1 ex10_1.htm

Exhibit 10.1
 
WARRANT EXCHANGE AGREEMENT

THIS WARRANT EXCHANGE AGREEMENT (this “Agreement”) is effective as of _______________, 2010, by and between CHINA BROADBAND, INC., a Nevada corporation (the “Company”) and the person signatory hereto (the “Holder”).

RECITAL

WHEREAS, the Company desires to reduce the complexity of its capital structure and thereby increase its investment appeal to institutional investors;

WHEREAS, the Holder purchased that a warrant (the “Warrant”) to purchase a number of shares of the Company’s common stock (the “Common Stock”) from the Company pursuant to that certain Securities Purchase Agreement, dated May 20, 2010;

WHEREAS, the Holder desires to exchange the Warrant (the “Exchange”) for the number of shares of Common Stock determined by multiplying the number of shares of Common Stock underlying the Warrant by 0.60 (the “Exchange Shares”); and

WHEREAS, the Company desires to issue to the Holder the Exchange Shares in exchange for the Warrant for the purpose described in the first recital clause of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein set forth, the parties hereby agree as follows:

1.             Exchange of Warrant.

(a)            On the date of Closing (as defined below), the Company shall issue to the Holder in exchange for the Warrant the Exchange Shares.  Immediately upon the Exchange, all obligations of the Company under the Warrant shall cease and the Warrant shall terminate and be of no further force and effect.

(b)            The closing of the Exchange (the “Closing”) shall take place on or about October 20, 2010 at the offices of Pillsbury Winthrop Shaw Pittman LLP, 2300 N Street NW, Washington, DC 20037, or at such other place as the Company and the Holder may mutually agree.

(c)            At the Closing, the Holder shall deliver, or cause to be delivered, to the Company its original Warrant, marked cancelled, and the Company shall deliver, or cause to be delivered, to the Holder a certificate representing its Exchange Shares; provided, however, that in the event that a Holder is unable to deliver the original Warrant due to loss, theft or destruction thereof, then, in lieu of delivery of the original Warrant, such Holder may deliver to the Company an indemnity reasonably satisfactory to the Company with respect to such loss, theft or destruction.  The certificate representing the Exchange Shares shall be stamped or otherwise imprinted with a legend substantially similar to the following (in addition to any legend required under applica ble state securities laws):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECUR ITIES.

 
 

 

2.             Representations and Warranties of the Company. The Company hereby makes the following representations and warranties, each of which is true and correct on the date hereof.

(a)            The Company is a corporation duly formed, validly existing and in good standing under the laws of the State of Nevada.  The Company has the power and authority to own its own property and assets and to transact the business in which it is engaged.  The Company is qualified to do business in each state or jurisdiction in which the failure to so qualify would have a material adverse effect on its business.

(b)            The Company has the power and authority to execute, deliver and perform this Agreement, and the Company has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement.  This Agreement constitutes the authorized, valid and legally binding obligations of the Company, enforceable against the Company in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of the Holder’s rights generally, and (b) general principles of equity.

(c)            The Exchange Shares to be issued pursuant to the Exchange, have been duly authorized, and upon consummation of the transactions contemplated by this Agreement, will be validly issued, fully paid and nonassessable.

(d)            Neither the Company nor any person acting on its behalf has offered or sold any of the Exchange Shares by any form of general solicitation or general advertising (as those terms are used in Regulation D).

(e)            Assuming the accuracy of the Holder’s representations and warranties set forth in Section 3, neither the Company nor any of its affiliates, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this issuance of the Exchange Shares to be integrated with prior offerings by the Company for purposes of (i) the Securities Act of 1933, as amended (the “Securities Act”) which would require the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any trading market on which any of the securities of the Company are listed or designated.

(f)             Assuming the truth and accuracy of the representation and warranties set forth in Section 3, no registration under the Securities Act is required for the offer and issuance of the Exchange Shares to the Holder as contemplated hereby.

3.             Representations and Warranties of the Holder. The Holder hereby makes the following representations and warranties, each of which is true and correct on the date hereof.

 
-2-

 

(a)            The Holder is an individual or is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.

(b)            The Holder has the power and authority to execute, deliver and perform this Agreement, and the Holder is an individual or has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement.  This Agreement constitutes the authorized, valid and legally binding obligations of the Holder, enforceable against the Holder in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of Holder’s rights generally, and (b) general principles of equity.

(c)            The Holder has good and valid title to the Warrant, free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto.  The Holder has not, in whole or in part, (i) assigned, transferred, hypothecated, pledged or otherwise disposed of the Warrant or its rights in such Warrant, or (ii) given any person or entity any transfer order, power of attorney or other authority of any nature whatsoever with respect to such Warrant which would limit the Holder’s power to exchange the Warrant hereunder.

(d)            The Exchange Shares to be received by the Holder hereunder will be acquired for such Holder’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the Act, and such Holder has no present intention of selling, granting any participation in, or otherwise distributing the same in violation of the Securities Act without prejudice, however, to such Holder’s right at all times to sell or otherwise dispose of all or any part of such Exchange Shares in compliance with applicable federal and state securities laws.  Nothing contained herein shall be deemed a representation or warranty by such Holder to hold the Exchange Shares for any period of time. Such Holder is not a broker-d ealer registered with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or an entity engaged in a business that would require it to be so registered.

(e)            The Holder has had an opportunity to receive all information related to the Company requested by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the issuance of the Exchange Shares.  Neither such inquiries nor any other due diligence investigation conducted by such Holder shall modify, amend or affect such Holder’s right to rely on the Company’s representations and warranties contained in this Agreement.

(f)             The Holder understands that the Exchange Shares are characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances.

(g)            No person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Company, any subsidiary of the Company or any shareholder of the Company for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of such Holder.

(h)            The Holder understands that the Exchange Shares are being issued 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 such Holder’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of such Holder set forth herein in order to determine the availability of such exemptions and the eligibility of such Holder to acquire the Securities.

 
-3-

 

4.             Registration.  The Exchange Shares shall be deemed to carry the same registration rights pursuant to that certain Registration Rights Agreement between the Company and the Holder (or among the Company, the Holder, and the other parties listed on Schedule A thereto, if applicable), dated July 30, 2010, as the shares of Common Stock underlying the Warrant.

5.             Notice.  Except as otherwise provided herein, all notices, requests, consents, demands, approvals and other communications hereunder must be in writing and shall be deemed to have been duly given, made, served or received (i) on the date when delivered personally, (ii) on the third day after being sent when mailed first class mail, postage prepaid, return receipt requested, or (iii) on the next day after being delivered to an overnight delivery courier, charges prepaid to the respective parties to this Agreement at the address listed under such party’s name in the signature block hereof.  The designation of the person to be so notified or the address of such person for the purposes of such notice may be changed from time to time by similar notice in writing, except that any communication with respect to a change of address shall be deemed to be given or made when actually received by the party to whom such communication was sent.

6.             Governing Law.  This Agreement and the rights and obligations of all parties hereunder shall be deemed to have been made in the State of New York and shall be governed by and construed in accordance with, the laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.

7.             Authority.  The undersigned executing on behalf of the Company hereby represents that he or she is a duly authorized representative of the Company and that he or she has authority to execute and bind the organization on behalf of the organization.   The Holder is an individual or the undersigned executing on behalf of the Holder hereby represents that he or she is a duly authorized representative of the Holder and that he or she has authority to execute and bind the organization on behalf of the organization

8.             Entire Agreement; Amendment.  This Agreement contains the entire agreement among the parties hereto with respect to the transactions contemplated herein, and can be amended only by the written instrument of each party.

9.             Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

[The remainder of this page is intentionally left blank.]

 
-4-

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed on the date first written above.


 
COMPANY:
     
 
CHINA BROADBAND, INC.
     
     
 
By
 
 
Name:
 
 
Title:
 

 
-5-

 

[HOLDER SIGNATURE PAGE TO WARRANT EXCHANGE AGREEMENT]


In Witness Whereof, the undersigned Holder has executed this Warrant Exchange Agreement as of the date first above written.

Name of Holder:  
 

Signature of Authorized Signatory of Holder:  
 

Name of Authorized Signatory:  
 

Title of Authorized Signatory:  
 

Email Address of Authorized Signatory:  
 

Facsimile Number of Authorized Signatory:  
 

Address for Notice of Holder (include fax number):  
 





Address for Delivery of Exchange Shares to Holder  (if not same as address for notice):





Shares Underlying Warrant being exchanged:  
 

Number of Exchange Shares received in Exchange:  
 
 
 
-6-

EX-10.2 3 ex10_2.htm EXHIBIT 10.2 ex10_2.htm

Exhibit 10.2
 
WARRANT EXCHANGE AGREEMENT

THIS WARRANT EXCHANGE AGREEMENT (this “Agreement”) is effective as of _______________, 2010, by and between CHINA BROADBAND, INC., a Nevada corporation (the “Company”) and the person signatory hereto (the “Holder”).

RECITAL

WHEREAS, the Company desires to reduce the complexity of its capital structure and thereby increase its investment appeal to institutional investors;

WHEREAS, the Holder purchased that a warrant (the “Warrant”) to purchase a number of shares of the Company’s common stock (the “Common Stock”) from the Company pursuant to that certain Securities Purchase Agreement, dated January 11, 2008;

WHEREAS, the Holder desires to exchange the Warrant (the “Exchange”) for the number of shares of Common Stock determined by multiplying the number of shares of Common Stock underlying the Warrant by 0.05 (the “Exchange Shares”); and

WHEREAS, the Company desires to issue to the Holder the Exchange Shares in exchange for the Warrant for the purpose described in the first recital clause of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein set forth, the parties hereby agree as follows:

1.             Exchange of Warrant.

(a)            On the date of Closing (as defined below), the Company shall issue to the Holder in exchange for the Warrant the Exchange Shares.  Immediately upon the Exchange, all obligations of the Company under the Warrant shall cease and the Warrant shall terminate and be of no further force and effect.

(b)            The closing of the Exchange (the “Closing”) shall take place on or about October 20, 2010 at the offices of Pillsbury Winthrop Shaw Pittman LLP, 2300 N Street NW, Washington, DC 20037, or at such other place as the Company and the Holder may mutually agree.

(c)            At the Closing, the Holder shall deliver, or cause to be delivered, to the Company its original Warrant, marked cancelled, and the Company shall deliver, or cause to be delivered, to the Holder a certificate representing its Exchange Shares; provided, however, that in the event that a Holder is unable to deliver the original Warrant due to loss, theft or destruction thereof, then, in lieu of delivery of the original Warrant, such Holder may deliver to the Company an indemnity reasonably satisfactory to the Company with respect to such loss, theft or destruction.  The certificate representing the Exchange Shares shall be stamped or otherwise imprinted with a legend substantially similar to the following (in addition to any legend required under applica ble state securities laws):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECUR ITIES.

 
 

 

2.             Representations and Warranties of the Company. The Company hereby makes the following representations and warranties, each of which is true and correct on the date hereof.

(a)            The Company is a corporation duly formed, validly existing and in good standing under the laws of the State of Nevada.  The Company has the power and authority to own its own property and assets and to transact the business in which it is engaged.  The Company is qualified to do business in each state or jurisdiction in which the failure to so qualify would have a material adverse effect on its business.

(b)            The Company has the power and authority to execute, deliver and perform this Agreement, and the Company has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement.  This Agreement constitutes the authorized, valid and legally binding obligations of the Company, enforceable against the Company in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of the Holder’s rights generally, and (b) general principles of equity.

(c)            The Exchange Shares to be issued pursuant to the Exchange, have been duly authorized, and upon consummation of the transactions contemplated by this Agreement, will be validly issued, fully paid and nonassessable.

(d)            Neither the Company nor any person acting on its behalf has offered or sold any of the Exchange Shares by any form of general solicitation or general advertising (as those terms are used in Regulation D).

(e)            Assuming the accuracy of the Holder’s representations and warranties set forth in Section 3, neither the Company nor any of its affiliates, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this issuance of the Exchange Shares to be integrated with prior offerings by the Company for purposes of (i) the Securities Act of 1933, as amended (the “Securities Act”) which would require the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any trading market on which any of the securities of the Company are listed or designated.

(f)            Assuming the truth and accuracy of the representation and warranties set forth in Section 3, no registration under the Securities Act is required for the offer and issuance of the Exchange Shares to the Holder as contemplated hereby.

3.             Representations and Warranties of the Holder. The Holder hereby makes the following representations and warranties, each of which is true and correct on the date hereof.

 
-2-

 

(a)            The Holder is an individual or is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.

(b)            The Holder has the power and authority to execute, deliver and perform this Agreement, and the Holder is an individual or has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement.  This Agreement constitutes the authorized, valid and legally binding obligations of the Holder, enforceable against the Holder in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of Holder’s rights generally, and (b) general principles of equity.

(c)            The Holder has good and valid title to the Warrant, free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto.  The Holder has not, in whole or in part, (i) assigned, transferred, hypothecated, pledged or otherwise disposed of the Warrant or its rights in such Warrant, or (ii) given any person or entity any transfer order, power of attorney or other authority of any nature whatsoever with respect to such Warrant which would limit the Holder’s power to exchange the Warrant hereunder.

(d)            The Exchange Shares to be received by the Holder hereunder will be acquired for such Holder’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the Act, and such Holder has no present intention of selling, granting any participation in, or otherwise distributing the same in violation of the Securities Act without prejudice, however, to such Holder’s right at all times to sell or otherwise dispose of all or any part of such Exchange Shares in compliance with applicable federal and state securities laws.  Nothing contained herein shall be deemed a representation or warranty by such Holder to hold the Exchange Shares for any period of time. Such Holder is not a broker-d ealer registered with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or an entity engaged in a business that would require it to be so registered.

(e)            The Holder has had an opportunity to receive all information related to the Company requested by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the issuance of the Exchange Shares.  Neither such inquiries nor any other due diligence investigation conducted by such Holder shall modify, amend or affect such Holder’s right to rely on the Company’s representations and warranties contained in this Agreement.

(f)            The Holder understands that the Exchange Shares are characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances.

(g)            No person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Company, any subsidiary of the Company or any shareholder of the Company for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of such Holder.

(h)            The Holder understands that the Exchange Shares are being issued 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 such Holder’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of such Holder set forth herein in order to determine the availability of such exemptions and the eligibility of such Holder to acquire the Securities.

 
-3-

 

4.             Notice.  Except as otherwise provided herein, all notices, requests, consents, demands, approvals and other communications hereunder must be in writing and shall be deemed to have been duly given, made, served or received (i) on the date when delivered personally, (ii) on the third day after being sent when mailed first class mail, postage prepaid, return receipt requested, or (iii) on the next day after being delivered to an overnight delivery courier, charges prepaid to the respective parties to this Agreement at the address listed under such party’s name in the signature block hereof.  The designation of the person to be so notified or the address of such person for the purposes of such notice may be changed from time to time by similar notice in writing, except that any communication with respect to a change of address shall be deemed to be given or made when actually received by the party to whom such communication was sent.

5.             Governing Law.  This Agreement and the rights and obligations of all parties hereunder shall be deemed to have been made in the State of New York and shall be governed by and construed in accordance with, the laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.

6.             Authority.  The undersigned executing on behalf of the Company hereby represents that he or she is a duly authorized representative of the Company and that he or she has authority to execute and bind the organization on behalf of the organization.   The Holder is an individual or the undersigned executing on behalf of the Holder hereby represents that he or she is a duly authorized representative of the Holder and that he or she has authority to execute and bind the organization on behalf of the organization

7.             Entire Agreement; Amendment.  This Agreement contains the entire agreement among the parties hereto with respect to the transactions contemplated herein, and can be amended only by the written instrument of each party.

8.             Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

[The remainder of this page is intentionally left blank.]

 
-4-

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed on the date first written above.


 
COMPANY:
     
 
CHINA BROADBAND, INC.
     
     
 
By
 
 
Name:
 
 
Title:
 

 
-5-

 
 
[HOLDER SIGNATURE PAGE TO WARRANT EXCHANGE AGREEMENT]


In Witness Whereof, the undersigned Holder has executed this Warrant Exchange Agreement as of the date first above written.

Name of Holder:  
 

Signature of Authorized Signatory of Holder:  
 

Name of Authorized Signatory:  
 

Title of Authorized Signatory:  
 

Email Address of Authorized Signatory:  
 

Facsimile Number of Authorized Signatory:  
 

Address for Notice of Holder (include fax number):  
 





Address for Delivery of Exchange Shares to Holder  (if not same as address for notice):





Shares Underlying Warrant being exchanged:  
 

Number of Exchange Shares received in Exchange:  
 
 
 
-6-

EX-99.1 4 ex99_1.htm EXHIBIT 99.1 ex99_1.htm

Exhibit 99.1
 
Logo 1

China Broadband Completes Warrant Exchange Offer


NEW YORK, NY—China Broadband, Inc. (“China Broadband” or the “Company”) (OTCBB: CBBD), a publisher of digital and analog program guides and a provider of value added services for the cable industry, including broadband internet, pay-per-view and video-on-demand services for viewers in the People’s Republic of China, today announced the completion of its warrant exchange offering.

The Company is pleased to report that all of the holders of warrants issued by the Company on January 11, 2008 to purchase an aggregate of 9,699,993 shares of the Company’s common stock at an exercise price of $0.20 per share have exchanged their 2008 warrants for an aggregate of 485,000 shares of the Company’s common stock. In addition, all of the holders of warrants issued by the Company on July 30, 2010 to purchase an aggregate of 622,591,300 shares of the Company’s common stock at an exercise price of $0.05 per share, have exchanged their 2010 warrants for an aggregate of 373,554,780 shares of Company common stock. Following the consummation of these exchange transactions, the Company reported 829,836,723 shares of common stock outstanding (on a fully diluted basis) and 11,393,500 warrants to purchase shares of Company common stock at exercise prices ranging from $0.60 to $2.00.

”We believe the warrant exchange to be an effective utilization of our equity that will enhance shareholder value and the Company’s appeal to potential partners and investors,” said Marc Urbach, President & Chief Financial Officer of China Broadband.  “With a simplified capital structure now in place, we believe China Broadband is significantly better positioned to attract additional investors going forward.”


About China Broadband

China Broadband’s historical core business operations have been conducted through its affiliate, and with Jinan Jia He Broadband, also known as “Jinan Broadband,” the fifth largest broadband operator in China and the second largest broadband service provider in the Shandong Province’s capital city of Jinan. Additionally, through its Shandong Group affiliate, China Broadband publishes digital and analog television program guides, newspapers and entertainment magazines. It holds the exclusive license to publish television program guides in Shandong Province, one of the largest regional economies in China. For more information, visit http://www.chinabroadband.tv. Through its recent acquisition of Sinotop Group, China Broadband is beginning its engagem ent in the business of providing pay-per-view and video-on-demand services to viewers located in the People’s Republic of China.

 
 

 
 
Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements". All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Contact

Debra Chen
212-206-1216
debra@imc-ir.com
www.chinabroadband.tv
 
 

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