Exhibit 2.1
CO-OWNERSHIP AGREEMENT
THIS
AGREEMENT is made and entered into this 21st day of October 2005
by
and between Azur Shell Landing Development
II LLC, a Mississippi limited
liability company ("ASLD II"), Azur Shell
Landing Resort Inc., a Mississippi
corporation ("ASLR") and Azur
International, Inc., a Nevada corporation
("Azur"). ASLR and ASLD II are sometimes
referred to herein below as the
"Co-Owners".
RECITALS
A.
Crawford Family Limited Partnership, a Mississippi limited
partnership
("Crawford"), and Naranjo Family Limited Partnership, a Florida
limited
partnership ("Naranjo") each own 50% of the membership interests in
ASLD
II.
B. ASLD II
owns five (5) parcels of land with an as is undeveloped
appraised
value of $19,170,000 (per the appraisal) described on the
attached
Exhibit A (the "Property") and, subject to the terms and
conditions
of this Agreement, desires to convey to ASLR a 95% undivided
tenants-in-common interest in the Property (the "Transferred
Interest")
and
require ASLR to manage and provide the financing to develop and
sell
the
Property, it being the intention of the parties that ASLR shall
develop
the Property into a resort community.
C. The
parties desire that the conveyance to ASLR of the Transferred
Interest
shall be made subject to ASLD II (1) remaining the title owner
of
record of
the Property and (2) becoming and retaining the right to act
as,
the sole
trustee for the Co-Owners as beneficial owners of the Property;
D. ASLR
and ASLD II desire to establish their relative ownership
interests
in the
Property as tenants-in-common and to set forth an agreed basis
upon
which the
Transferred Interest shall be conveyed to ASLR and thereafter
how the
95% undivided tenants-in-common interest in the Property owned
by
ASLR and
the 5% undivided tenants-in-common interest in the Property to
be
retained
by ASLD II shall be owned by them.
NOW,
THERFORE, for and in consideration of Ten ($10.00) Dollars paid
by
each of the parties hereto to the other,
and in consideration of the mutual
promises of the parties hereto running one
to the other, the receipt and
sufficiency of which is hereby acknowledged
by each of the parties hereto, it is
hereby agreed as follows.
1. Incorporation of Recitals. The above
recitals are incorporated herein by
reference.
<PAGE>
2. Closing. The Closing Date shall be no
later than November 4, 2005. (If the
Closing Date does not occur on or prior to
November 4, 2005, then, except as
provided in Section 11(b) regarding the
survival of the general releases and
indemnities given by the parties, this
Agreement shall automatically terminate
and be of no further force and effect.) As
consideration for the transfer of the
Transferred Interest, ASLR shall cause to
be delivered on the Closing Date the
following consideration. All of the
consideration set forth below shall be
deemed to be payment to ASLD II, but ASLD
II directs that in lieu of a direct
payment to ASLD II, the consideration be
paid to the members of ASLD II,
Crawford and Naranjo, as set forth
below.
2.1 The
following shall be paid directly to Naranjo:
(a) On the
Closing Date, ASLR shall pay to Naranjo by check or
wire transfer of immediately available funds the sum of One
Million Dollars ($1,000,000),
(b) On the
Closing Date, Azur shall issue to Naranjo and/or those
persons designated by Naranjo prior to the Closing Date a
certificate or certificates aggregating 5,000,000 restricted
shares of Common Stock, par value $.0001 per share, of Azur
("Azur Common Stock"), which shall be exchanged for an
aggregate of 2,500,000 shares of Common Stock, par value
$.0001, of New Harvest Capital Corporation, a Delaware
corporation ("New Harvest") upon a share exchange to be made
by all holders of Azur Common Stock upon the effectiveness of
a Registration Statement on Form S-4 which has been filed by
New Harvest with the Securities and Exchange Commission (the
"SEC"), such registration statement to be declared effective
within 180 days after the Closing Date.; provided, however,
that if Azur shall in its sole discretion determine not to
consummate the share exchange with New Harvest, Azur shall
file with the SEC a registration statement covering the resale
of the Azur Common Stock issued to Naranjo and/or Naranjo's
designees under this Agreement and such registration statement
shall be declared effective within 180 days after the Closing
Date.
(c) On the
Closing Date, Azur shall issue to Naranjo a promissory
note in the principal amount of $250,000 in the form of
Exhibit B attached hereto (the "Naranjo Note").
(d) After the
Closing Date and until Naranjo shall have received
payments in an aggregate amount of $16,000,000 as a result of
its 5% undivided tenants-in-common interest the Property,
Naranjo shall receive directly and within 5 business days of
each closing, 5% of the Gross Proceeds. For purposes of this
Agreement, Gross Proceeds means revenue derived from the sale
of developed Property, sale of land, lease or rental of any or
all of the Property or any interest therein before closing
costs, commissions or other expenses paid in connection
therewith; provided, however, that in any event, Naranjo shall
receive in respect of its 5% undivided interest in the
Property on a cumulative basis from the date hereof to
December 31 of the year specified below the aggregate amounts
set forth in the table below:
<PAGE>
By
December 31
Total Cumulative Amount of
--------------
Gross Proceeds Which Must be
Received by Naranjo
-------------------
2006
$1,000,000
2007
$2,500,000
2008
$5,500,000
2009
$9,000,000
2010
$12,500,000
2011
$16,000,000
(e) ASLR shall
pay all closing costs and reasonable attorney's
fees incurred by Naranjo associated with the preparation and
implementation of this Agreement.
2.2 The
following shall be paid directly to or on behalf of Crawford:
(a) On the Closing Date, ASLR shall pay to Crawford by check or
wire
transfer of immediately available funds the
sum of Two Hundred Fifty Thousand
Dollars ($250,000),
(b) On the Closing Date, ASLR shall issue to the order of Crawford
a
promissory note, dated the Closing Date, in
the principal amount of $1,460,000
(which amount includes unpaid salary from
February 1, 2005 - September 30, 2005
of $210,000), which shall be in the form of
Exhibit C attached hereto (the
"Crawford Closing Note"),
(c) On the Closing Date, Azur shall issue to Crawford a
certificate
for 5,000,000 restricted shares of Azur
Common Stock, which shall be exchanged
for 2,500,000 shares of New Harvest Common
Stock upon a share exchange to be
made by all holders of Azur Common Stock
upon the effectiveness of a
Registration Statement on Form S-4 which
has been filed by New Harvest with the
SEC, such registration statement to be
declared effective within 180 days after
the Closing Date; provided, however, that
if Azur shall in its sole discretion
determine not to consummate the share
exchange with New Harvest, Azur shall file
with the SEC a registration statement
covering the resale of the Azur Common
Stock issued to Crawford under this
Agreement and such registration statement
shall be declared effective within 180 days
after the Closing Date.
<PAGE>
(d) On the Closing Date, ASLR and Carl Crawford shall enter in
an
Employment Agreement in the form of Exhibit
D attached hereto (the "Employment
Agreement").
(e) On the Closing Date ASLR shall pay to Shell Landing Golf,
L.L.C.
("Shell Golf"), the entire outstanding
principal balance and accrued interest of
the Purchase Money Promissory Note, dated
November 17, 2004 from The Grand Shell
Landing, Inc. ("Shell Landing") and Carl
Crawford to the order of Shell Golf,
which outstanding principal amount and
accrued interest is $1,136,000 in the
aggregate as of the date of this Agreement
the Shell Golf Note"). Upon payment
of the Shell Golf Note, Azur and Carl
Crawford shall direct the Escrow Agent for
that transaction, Stephen W. Burrow, to
deliver all remaining shares of Azur in
his possession to Carl Crawford and all
remaining shares of The Grand Shell
Landing, Inc. to Azur.
(f) ASLR shall pay all closing costs and reasonable attorney's
fees
incurred by Crawford associated with the
preparation and implementation of this
Agreement.
(g) After the Closing Date ASLR shall pay to Crawford in
perpetuity
5% of all gross proceeds received by ASLR
or any of its subsidiaries from of
sales of land from the Property (including
individual lots, tracts intended for
development as condos, hotels, retail
areas, etc.) less only standard closing
costs and commissions paid by ASLR in
connection with such land sales not to
exceed ten percent (10%) of the purchase
price. In the event 75% or more of the
Property is sold by ASLR (or any
combination of ASLR, its successors, parents,
subsidiaries, affiliates, directors,
officers, employees, attorneys,
shareholders or agents), then Crawford
shall be paid from the proceeds of that
sale the difference between (i) $5 million
and (ii) all prior payments made to
Crawford by ASLR under this Section
2.2(g).
(h) On the Closing Date ASLR shall issue to Crawford, a number
of
shares of its common stock so that
immediately after the issuance of such
shares, Crawford shall own 25% of the
outstanding common stock of ASLR. On the
Closing Date there shall not be outstanding
any other class of capital stock of
ASLR nor any securities convertible into,
or exercisable or exchangeable for any
shares of ASLR capital stock.
2.3 Upon
the payment by ASLR or its successors, parents, subsidiaries or
affiliates to Naranjo of an aggregate of
$16,000,000 pursuant Section 2.1(d),
the 5% undivided tenants-in-common interest
in the Property beneficially owned
by ASLD II shall, without any further
action or the payment of any additional
consideration being required, be
transferred and conveyed by ASLD II to ASLR, it
being understood that immediately upon
payment of such aggregate amount ASLR
shall own the Property in fee simple. In
such event, promptly upon request by
ASLR, each of ASLD II, Naranjo and Crawford
shall execute such documents,
agreements and instruments and take such
actions as are reasonably necessary to
evidence the ownership of the Property in
fee simple by ASLR.
<PAGE>
3. Term. The term of this Agreement shall
take effect immediately upon Closing
Date and shall continue until one of
the