Exhibit 10.2
SCHEDULES TO SHARE EXCHANGE AND ADDITIONAL NOTE PURCHASE AGREEMENT
The information in the following schedules solely refers to River Capital Group,
Inc. and the Subsidiaries (as defined in the Exchange Agreement)
SCHEDULE I
OPTION ALLOCATION
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Name of the Optionee Number of Options
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Xxxxxxx Xxxxxxx Initial Officer Options with
respect to 1/3 of the Option Shares
to be authorized and issued under
the Option Plan
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Xxxxx Xxxxxxx Initial Officer Options with
respect to 1/3 of the Option Shares
to be authorized and issued under
the Option Plan
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Xxxxxx X. Xxxxxxxx Initial Officer Options with
respect to 1/3 of the Option Shares
to be authorized and issued under
the Option Plan
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SCHEDULE 3(a)
ORGANIZATION AND QUALIFICATION
LIST OF SUBSIDIARIES
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SUBSIDIARIES JURISDICTIONS OF PERCENTAGE OF
ORGANIZATION/INCORPORATION OUTSTANDING CAPITAL
STOCK/EQUITY INTERESTS
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River Capital Barbados 100% held by RCGI
Holdings Limited
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River Reinsurance Barbados 100% held by River
Limited Capital Holdings
Limited
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Both companies are held free and clear of Liens. No subsidiary owns any equity
interest in any other Person.
SCHEDULE 3(c)(i)
CAPITALIZATION
As of the date of the Exchange Agreement, there are 50,000,000 shares, par value
$.001 per share, authorized and 38,552,749 shares issued and outstanding. All
such shares are common stock. There are no shares reserved for any stock option
or other plan.
SCHEDULE 3(c)(ii)
After the Exchange Closing, there will be 50,000,000 shares, par value $.001 per
share, authorized, and the number of the issued and outstanding shares will be
the sum of (i) 38,552,749 as adjusted for the Reverse Stock Split plus (ii) the
New RCGI Common Shares plus (iii) a number of RCGI Common Shares issuable to X X
Xxxxxx & Company equal to $180,000 divided by the Per Share Purchase Price.
SCHEDULE 3(c)(iii)
No exceptions, except for transactions and arrangements contemplated by the
Exchange Agreement and the other Transaction Documents.
SCHEDULE 3(e)
NO CONFLICTS
1. Upon termination of the service agreement between RCGI and Concord
Capital Limited, remaining fees under the agreement will become due. Such amount
is reflected as "Concord Capital Limited Contracts Notice (10 month)" on
Schedule 3(z).
FILINGS AND CONSENTS
1. Filing and clearance of the Information Statement with the SEC.
2. Filing of the required amendment to RCGI's Certificate of
Incorporation.
3. Receipt of Stockholders Consent to the actions set forth in the
Information Statement.
4. Filings required by Section 4(j) and other periodic SEC filings.
SCHEDULE 3(f)
SEC DOCUMENTS
A. The table below sets forth all reports, schedules, forms, statements
and other documents required to be filed by the Company with the SEC pursuant to
the reporting requirements of the 1934 Act since December 31, 2005.
Forms Filing Date
----- -----------
8-K 2007-06-19
10QSB 2007-05-15
10KSB 2007-04-02
8-K 2007-01-08
10QSB 2006-11-14
10QSB 0000-00-00
0-X/X 0000-00-00
0-X/X 0000-00-00
10QSB 2006-05-15
10KSB 2006-04-13
NT 00-X 0000-00-00
0-X 0000-00-00
0-X/X 0000-00-00
8-K 2006-01-06
B. The list below sets forth, since December 31, 2005, all press releases,
analyst reports, advertisements and other written communications with
stockholders or other investors, or potential stockholders or other potential
investors, on behalf of the Company or any of its Subsidiaries.
o Press release issued on March 8, 2006, announcing the
completion of the acquisition of River Reinsurance Limited.
C. SEC Comments. In its letter dated July 27, 2007, the Associates Chief
Accountant indicated that it is not clear why the acquisition of River Capital
Holdings was not accounted for as a reverse merger. RCGI does not know whether
this statement will be made into a formal comment as its 2005 Form 10K-SB.
D. Possible Erroneous Statements. The cover page of RCGI's Form 10K-SB for
each of the years ended December 31, 2005 and December 31, 2006 states that RCGI
is not a "shell company" within the meaning of the rules of the SEC.
E. RCGI has not received or otherwise had knowledge of any complaint or
claim regarding the accounting or auditing practices of RCGI or any of the
Subsidiaries or its internal accounting controls
SCHEDULE 3(g)
ABSENCE OF CERTAIN CHANGES
RCGI's accumulated accounts payable at August 1, 2007, as listed in Schedule
3(z) exceed the value of RCGI's assets on the March 31, 2007 Balance Sheet.
SCHEDULE 3(h)
ABSENCE OF LITIGATION
NO EXCEPTIONS
SCHEDULE 3(i)
FULL DISCLOSURE; NO UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR
CIRCUMSTANCES
NO EXCEPTIONS
SCHEDULE 3(k)
NO GENERAL SOLICITATION
NO EXCEPTIONS
SCHEDULE 3(n)
EMPLOYEE RELATIONS
NO EXCEPTIONS
SCHEDULE 3(o)
INTELLECTUAL PROPERTY RIGHTS
NONE
SCHEDULE 3(p)
ENVIRONMENTAL LAW COMPLIANCE
NO EXCEPTIONS
SCHEDULE 3(q)
TITLE
Neither RCGI nor any of the Subsidiaries owns any interest in any real property
or any oil, gas or other mineral interest.
SCHEDULE 3(s)
REGULATORY PERMITS
NONE
SCHEDULE 3(t)
INTERNAL ACCOUNTING CONTROLS, DISCLOSURE CONTROLS & PROCEDURES, BOOKS &
RECORDS
NO EXCEPTIONS
SCHEDULE 3(u)
BANK ACCOUNTS
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Company Banks Balances
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RCGI: HSBC Bank of Bermuda Xxxxxxxx US$5077.81
Bermuda: Account Number
000-000000-000
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RBC Toronto: Account Number: CD$176.53
CD$ 000-000-0 US$ 000-000-0 US$695.64
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River Capital RBC Barbados: Account Number $64.86
Holdings Limited 000-000-0
Barbados
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River Reinsurance RBC Barbados: Account Number $132,028.39
Limited Barbados 000-000-0
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SCHEDULE 3(v)
TAX STATUS
NO EXCEPTIONS
SCHEDULE 3(w)
TRANSACTIONS WITH AFFILIATES
1. Pursuant to a service contract, dated July 1, 2006, by and between
Concern Capital Limited, a company 100% owned by RCGI's current officer
director, Xxxxxx Xxxxxx, and RCGI, RCGI paid Concorde Capital Limited management
and administrative fees totaling of $198,0000 and $95,000 for the years ended
December 31, 2006 and 2005, respectively. RCGI also reimbursed Concorde Capital
Limited $35,083 and $81,273 for out of pocket expenses for the years ended
December 31, 2006 and 2005, respectively. As of December 31, 2006, a total of
$147,333 was outstand and due to Concorde Capital Limited.
2. Pursuant to a service contract, dated July 1, 2006, by and between
Concern Capital Limited, a company 100% owned by RCGI's current officer
director, Xxxxxx Xxxxxx, and RCGI, RCGI further paid to Concorde Capital Limited
management and administrative fees totaling $60,000 for the three months ended
March 31, 2007. RCGI paid to Concorde Capital Limited an additional $1,891 as
reimbursement of direct out of pocket expenses for the three months ended March
31, 2007. A total of $176,245 was due to this company as of March 31, 2007.
These services were provided for fees that could be obtained from unrelated
parties for the same amounts.
3. RCGI paid Cognate Engineering Services Inc., a company 100% owned by
its director Xxxxxxx Xxxxxx, management and administrative fees totaling of
$4,000 and $24,000 for the years ended December 31, 2006 and 2005, respectively.
No amounts are currently due to Cognate Engineering Services Inc. or Xx. Xxxxxx.
SCHEDULE 3(x)
APPLICATION OF TAKEOVER PROTECTIONS; RIGHTS AGREEMENT
NONE.
SCHEDULE 3(z)
OUTSTANDING INDEBTEDNESS; LIENS
The table below sets forth the accounts payables of RCGI as of August 1, 2007.
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Parties Amounts Payable:
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Xxxxxxx Xxxxxxxx and Xxxx 15,142.21
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Xxxxx & Xxxxxxxx LLP 2,426.30
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Xxxx Xxxx Xxxx Xxxxxxxxxx 9,759.00
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XxXxx Young and XxXxxxx 1,882.50
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Olde Monmouth Stock Transfer 2,405.00
Company
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Corporation Services Company 264.00
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Xxxxxx & Catford & Co. 3,900.00
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Cognate Engineering Services 13,035.03
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Concorde Capital Limited 97,333.34
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Xxxxxxx Xxxxx 10,500.00
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Miscellaneous total (telephone, storage) 809.70
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Concorde Capital Limited contract notice (10mo) 100,000.00
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Company Secretary/accounts notice 4,500.00
$1500 pm 3 mos
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Office notice 3 months at $550 per months 1,650.00
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Total: 263,607.08
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The table below sets forth the estimated payables from August 1, 2007 to October
31, 2007.
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Parties Amounts Payable:
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Rent 1,650.00
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Xxxxxxx Xxxxx 4,500.00
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Concorde Capital Limited 30,000.00
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Contingency for 10-Q due Aug 15th 2007 3,900.00
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Office Expense 3,000
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Travel 2,500.00
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Miscellaneous total 1,000.00
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Unpaid expense reimbursement 6,894.74
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Contingent for finals/unpaid expenses 10,000.00
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Xxxxx & XxXxxxxx LLP 375,000.00
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Total: 438,444.74
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(i) Pursuant to an engagement letter with XX Xxxxxx, an investment banking fee
of $360,000 (to be paid $180,000 in cash and $180,000 in shares, at a price
equal to the Per Share Purchase Price) will be due at the Exchange Closing.
SCHEDULE 3(bb)
REAL PROPERTY
NONE
SCHEDULE 3(cc)
EXCLUDED SUBSIDIARIES
The table below sets for the assets and liability of each of the Subsidiaries as
of August 3, 2007.
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Subsidiary Assets Liabilities
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River Capital $64.86 $0
Holdings Limited
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River Reinsurance $132,028.39 (cash) $0
Limited
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SCHEDULE 3(ff)
STOCK OPTIONS
NO EXCEPTIONS
