Document:

STOCK PURCHASE AGREEMENT AND
SHARE EXCHANGE

 

 

 

by and among

 

MD HOLDINGS CORP.

 

a Nevada Corporation

 

 

and

 

 

MD  Mortgage Corporation

 

a Maryland Corporation

 

 

 

 

 

 

effective as of January 15,
2007

 

 

    	1

    	 

    

 

STOCK PURCHASE AGREEMENT
AND SHARE EXCHANGE

 

    THIS
STOCK PURCHASE AGREEMENT AND SHARE EXCHANGE, made and entered into this     15th day of
January, 2007 by and among MD Holdings Corp, a Nevada corporation ("MD Holdings"), and MD Mortgage Corporation, a Maryland corporation
("MD Mortgage"), and the shareholders of MD Mortgage Corporation.  

 

Premises

 

    A.    This
Agreement provides for the acquisition of MD Mortgage whereby MD Mortgage shall become a wholly owned subsidiary of MD Holdings
and in connection therewith, the issuance of a total of 27,515,000 shares of MD Holdings to the Shareholders.

 

    B.           
The boards of directors of MD Mortgage and MD Holdings have determined, subject to the terms and conditions set forth in this Agreement,
that the transaction contemplated hereby is desirable and in the best interests of their stockholders, respectively. This Agreement
is being entered into for the purpose of setting forth the terms and conditions of the proposed acquisition.

 

Agreement

 

NOW, THEREFORE, on the stated
premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the
parties to be derived here from, it is hereby agreed as follows:

 

ARTICLE I

MD HOLDINGS, INC.

 

As an inducement to and to
obtain the reliance of MD Mortgage, MD Holdings represents and warrants as follows:

 

Section
1.1   Organization.  MD Holdings is a corporation duly organized, and validly existing under
the laws of Nevada and has the corporate power and is duly authorized, qualified, franchised and licensed under all applicable
laws, regulations, ordinances and orders of public authorities to own all of its properties and assets and to carry on its business
in all material respects as it is now being conducted, including qualification to do business as a foreign corporation in the
jurisdiction in which the character and location of the assets owned by it or the nature of the business transacted by it requires
qualification.  Included in the Schedules attached hereto (hereinafter defined) are complete and correct copies of the
articles of incorporation, bylaws and amendments thereto as in effect on the date hereof.  The execution and delivery
of this Agreement does not and the consummation of the transactions contemplated by this Agreement in accordance with the terms
hereof will not violate any provision of MD Holdings’ articles of incorporation or bylaws.  MD Holdings has full
power, authority and legal right and has taken all action required by law, its articles of incorporation, its bylaws or otherwise
to authorize the execution and delivery of this Agreement.

 

 

Section
1.2  Capitalization.  The authorized capitalization of MD Holdings consists of 100,000,000 Common
Shares, $0.001 par value per share, and 10,000,000 shares of preferred.  As of the date hereof, MD Holdings has no common
shares issued and outstanding.

 

 

 

    	2

    	 

    

 

All issued and outstanding
shares are legally issued, fully paid and nonassessable and are not issued in violation of the preemptive or other rights of any
person.

 

Section
1.3   Subsidiaries.  MD Holdings has no subsidiaries.

 

Section
1.4  Tax Matters: Books and Records.

 

	(a)  	The books and records, financial and others, of MD Holdings are in all material respects complete and correct and have been maintained in accordance with good business accounting practices; and

 

	(b)  	MD Holdings shall remain responsible for all debts incurred by MD Holdings prior to the date of closing.

 

Section
1.5  Litigation and Proceedings.  Other than set forth in the documents filed with the Securities
and Exchange Commission (the “SEC documents”), there are no actions, suits, proceedings or investigations pending
or threatened by or against or affecting MD Holdings or its properties, at law or in equity, before any court or other governmental
agency or instrumentality, domestic or foreign or before any arbitrator of any kind that would have a material adverse affect
on the business, operations, financial condition or income of MD Holdings.  MD Holdings is not in default with respect
to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator or governmental agency or
instrumentality or of any circumstances which, after reasonable investigation, would result in the discovery of such a default.

 

Section
1.6 Material Contract Defaults.  MD Holdings is not in default in any material respect under the terms of any outstanding
contract, agreement, lease or other commitment which is material to the business, operations, properties, assets or condition
of MD Holdings, and there is no event of default in any material respect under any such contract, agreement, lease or other commitment
in respect of which MD Holdings has not taken adequate steps to prevent such a default from occurring.

 

Section 1.7  Information.  The
information concerning MD Holdings as set forth in this Agreement and in the attached Schedules is complete and accurate in all
material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make
the statements made in light of the circumstances under which they were made, not misleading.

 

Section 1.8  Title
and Related Matters.  MD Holdings has good and marketable title to and is the sole and exclusive owner of all of
its properties, inventory, interest in properties and assets, real and personal (collectively, the “Assets”) free and
clear of all liens, pledges, charges or encumbrances.  MD Holdings owns free and clear of any liens, claims, encumbrances,
royalty interests or other restrictions or limitations of any nature whatsoever and all procedures, techniques, marketing plans,
business plans, methods of management or other information utilized in connection with MD Holdings’ business.   No
third party has any right to, and MD Holdings has not received any notice of infringement of or conflict with asserted rights of
others with respect to any product, technology, data, trade secrets, know-how, proprietary techniques, trademarks, service marks,
trade names or copyrights which, singly on in the aggregate, if the subject of an unfavorable decision ruling or finding, would
have a materially adverse affect on the business, operations, financial conditions or income of MD Holdings or any material portion
of its properties, assets or rights.

 

 

    	3

    	 

    

 

Section
1.9  Compliance With Laws and Regulations.  To the best of MD Holdings’ knowledge and belief,
MD Holdings has complied with all applicable statutes and regulations of any federal, state or other governmental entity or agency
thereof, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties,
assets or condition of MD Holdings or would not result in MD Holdings incurring material liability.

 

Section
1.10  Insurance.  All of the insurable properties of MD Holdings are insured for MD Holdings’
benefit under valid and enforceable policy or policies containing substantially equivalent coverage and will be outstanding and
in full force at the Closing Date.

 

Section
1.11  Approval of Agreement.  The directors of MD Holdings have authorized the execution and delivery
of the Agreement by and have approved the transactions contemplated hereby.

 

Section
1.12  No Conflict With Other Instruments.  The execution of this Agreement and the consummation
of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an
event of default under, any material indenture, mortgage, deed of trust or other material contract, agreement or instrument to
which MD Holdings is a party or to which any of its properties or operations are subject.

 

Section
1.13  Governmental Authorizations.  MD Holdings has all licenses, franchises, permits or other
governmental authorizations legally required to enable it to conduct its business in all material respects as conducted on the
date hereof.  Except for compliance with federal and state securities and corporation laws, as hereinafter provided,
no authorization, approval, consent or order of, or registration, declaration or filing with, any court or other governmental
body is required in connection with the execution and delivery by MD Holdings of this Agreement and the consummation of the transactions
contemplated hereby.

 

 

ARTICLE II

REPRESENTATIONS, COVENANTS
AND WARRANTIES

OF MD MORTGAGE

 

As an inducement to, and
to obtain the reliance of MD Holdings, MD Mortgage represents and warrants as follows:

 

Section
2.1  Organization.  MD Mortgage is a corporation duly organized, validly existing and in good standing
under the laws of Florida and has the corporate power and is duly authorized, qualified, franchised and licensed under all applicable
laws, regulations, ordinances and orders of public authorities to own all of its properties and assets and to carry on its business
in all material respects as it is now being conducted, including qualification to do business as a foreign entity in the country
or states in which the character and location of the assets owned by it or the nature of the business transacted by it requires
qualification.  Included in the Attached Schedules (as hereinafter defined) are complete and correct copies of the articles
of incorporation, bylaws and amendments thereto as in effect on the date hereof.  The execution and delivery of this
Agreement does not and the consummation of the transactions contemplated by this Agreement in accordance with the terms hereof
will not, violate any provision of MD Mortgage's certificate of incorporation or bylaws.  MD Mortgage has full power,
authority and legal right and has taken all action required by law, its articles of incorporation, bylaws or otherwise to authorize
the execution and delivery of this Agreement.

 

 

    	4

    	 

    

 

Section
2.2  Capitalization.  The authorized capitalization of MD Mortgage consists of 25,000 shares, $0.001
par value and no preferred shares.  As of the date hereof, there are 22,025 shares issued and outstanding.

 

All issued and outstanding
common shares have been legally issued, fully paid, are nonassessable and not issued in violation of the preemptive rights of any
other person.  MD Mortgage has no other securities, warrants or options authorized or issued.

 

Section
2.3  Subsidiaries.  MD Mortgage has no subsidiaries.

 

Section
2.4  Tax Matters; Books & Records.

 

	(a)  	The books and records, financial and others, of MD Mortgage are in all material respects complete and correct and have been maintained in accordance with good business accounting practices; and

 

	(b)  	MD Mortgage has no liabilities with respect to the payment of any country, federal, state, county, local or other taxes (including any deficiencies, interest or penalties).

 

	(c)  	MD Mortgage shall remain responsible for all debts incurred prior to the closing.

 

Section
2.5  Information.  The information concerning MD Mortgage as set forth in this Agreement and in
the attached Schedules is complete and accurate in all material respects and does not contain any untrue statement of a material
fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were
made, not misleading.

 

Section
2.6  Title and Related Matters.  MD Mortgage has good and marketable title to and is the sole and
exclusive owner of all of its properties, inventory, interests in properties and assets, real and personal (collectively, the
"Assets") free and clear of all liens, pledges, charges or encumbrances.  Except as set forth in the Schedules attached
hereto, MD Mortgage owns free and clear of any liens, claims, encumbrances, royalty interests or other restrictions or limitations
of any nature whatsoever and all procedures, techniques, marketing plans, business plans, methods of management or other information
utilized in connection with MD Mortgage's business.  Except as set forth in the attached Schedules, no third party has
any right to, and MD Mortgage has not received any notice of infringement of or conflict with asserted rights of others with respect
to any product, technology, data, trade secrets, know-how, proprietary techniques, trademarks, service marks, trade names or copyrights
which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a materially adverse
affect on the business, operations, financial conditions or income of MD Mortgage or any material portion of its properties, assets
or rights.

 

Section
2.7  Litigation and Proceedings.  There are no actions, suits or proceedings pending or threatened
by or against or affecting MD Mortgage, at law or in equity, before any court or other governmental agency or instrumentality,
domestic or foreign or before any arbitrator of any kind that would have a material adverse effect on the business, operations,
financial condition, income or business prospects of MD Mortgage.  MD Mortgage does not have any knowledge of any default
on its part with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator
or governmental agency or instrumentality.

 

 

    	5

    	 

    

 

Section
2.8  Contracts.  On the Closing Date:

 

	(a)  	There are no material contracts, agreements, franchises, license agreements, or other commitments to which MD Mortgage is a party or by which it or any of its properties are bound;

 

	(b)  	MD Mortgage is not a party to any contract, agreement, commitment or instrument or subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree or award which materially and adversely affects, or in the future may (as far as MD Mortgage can now foresee) materially and adversely affect, the business, operations, properties, assets or conditions of MD Mortgage; and

 

	(c)  	MD Mortgage is not a party to any material oral or written:  (i) contract for the employment of any officer or employee;  (ii) profit sharing, bonus, deferred compensation, stock option, severance pay, pension, benefit or retirement plan, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended; (iii) agreement, contract or indenture relating to the borrowing of money;  (iv) guaranty of any obligation for the borrowing of money or otherwise, excluding endorsements made for collection and other guaranties of obligations, which, in the aggregate exceeds $1,000;  (v)  consulting or other contract with an unexpired term of more than one year or providing for payments in excess of $10,000 in the aggregate;  (vi)  collective bargaining agreement; (vii)   contract, agreement, or other commitment involving payments by it for more than $10,000 in the aggregate.

 

Section
2.9  No Conflict With Other Instruments.  The execution of this Agreement and the consummation
of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an
event of default under, any material indenture, mortgage, deed of trust or other material contract, agreement or instrument to
which MD Mortgage is a party or to which any of its properties or operations are subject.

 

Section
2.10  Material Contract Defaults.   To the best of MD Mortgage's knowledge and belief, it
is not in default in any material respect under the terms of any outstanding contract, agreement, lease or other commitment which
is material to the business, operations, properties, assets or condition of MD Mortgage, and there is no event of default in any
material respect under any such contract, agreement, lease or other commitment in respect of which MD Mortgage has not taken adequate
steps to prevent such a default from occurring.

 

Section
2.11  Governmental Authorizations.  To the best of MD Mortgage’s knowledge, MD Mortgage has
all licenses, franchises, permits and other governmental authorizations that are legally required to enable it to conduct its
business operations in all material respects as conducted on the date hereof.  Except for compliance with federal and
state securities or corporation laws, no authorization, approval, consent or order of, or registration, declaration or filing
with, any court or other governmental body is required in connection with the execution and delivery by MD Mortgage of the transactions
contemplated hereby.

 

Section
2.12  Compliance With Laws and Regulations. To the best of MD Mortgage's knowledge and belief, MD Mortgage
has complied with all applicable statutes and regulations of any federal, state or other governmental entity or agency thereof,
except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets
or condition of MD Mortgage or would not result in MD Mortgage 's incurring any material liability.

 

 

    	6

    	 

    

 

Section
2.13  Approval of Agreement.  The directors of MD Mortgage have authorized the execution and delivery
of the Agreement and have approved the transactions contemplated hereby.

 

 

ARTICLE III

EXCHANGE PROCEDURE AND
OTHER CONSIDERATION

 

Section
3.1  Share Exchange/Delivery of MD Mortgage Securities.  On the Closing Date, the holders of all
of the MD Mortgage Common Shares shall deliver to MD Holdings certificates or other documents evidencing all of the issued and
outstanding MD Mortgage Common Shares, duly endorsed in blank or with executed power attached thereto in transferable form.  On
the Closing Date, all previously issued and outstanding Common Shares of MD Mortgage shall be transferred to MD Holdings, so that
MD Mortgage shall become a wholly owned subsidiary of MD Holdings.

 

Section
3.2   Issuance of MD Holdings Common Shares.  In exchange for all of the MD Mortgage Common
Shares tendered pursuant to Section 3.1, MD Holdings shall issue to the Shareholders a total of 27,515,000 shares in the following
manner.  The 27,515,000 MD Holdings common shares which are restricted in accordance with Rule 144 of the 1933 Securities
Act:

 

Marshall Davis – 25,000,000

Richard I. Anslow- 625,000
shares

Gregg E. Jaclin- 625,000
shares

Goldco Properties Limited
Partnership - 1,250,000 shares

Kristina Trauger -25,000
shares

 

Section
3.3  Events Prior to Closing.  Upon execution hereof or as soon thereafter as practical, management
of MD Holdings and MD Mortgage shall execute, acknowledge and deliver (or shall cause to be executed, acknowledged and delivered)
any and all certificates, opinions, financial statements, schedules, agreements, resolutions rulings or other instruments required
by this Agreement to be so delivered, together with such other items as may be reasonably requested by the parties hereto and
their respective legal counsel in order to effectuate or evidence the transactions contemplated hereby, subject only to the conditions
to Closing referenced herein below.

 

Section
3.4  Closing.  The closing ("Closing") of the transactions contemplated by this Agreement shall
be on or about December 13, 2006 ("Closing Date").

 

Section
3.5  Termination.

 

	(a)  	This Agreement may be terminated by the board of directors or majority interest of Shareholders of either MD Holdings or MD Mortgage, respectively, at any time prior to the Closing Date if:

 

	(i)  	there shall be any action or proceeding before any court or any governmental body which shall seek to restrain, prohibit or invalidate the transactions contemplated by this Agreement and which, in the judgment of such board of directors, made in good faith and based on the advice of its legal counsel, makes it inadvisable to proceed with the exchange contemplated by this Agreement; or

 

 

    	7

    	 

    

 

	(ii)  	any of the transactions contemplated hereby are disapproved by any regulatory authority whose approval is required to consummate such transactions.

 

In the event of termination
pursuant to this paragraph (a) of this Section 3.5, no obligation, right, or liability shall arise hereunder and each party shall
bear all of the expenses incurred by it in connection with the negotiation, drafting and execution of this Agreement and the transactions
herein contemplated.

 

	(b)  	This Agreement may be terminated at any time prior to the Closing Date by action of the board of directors of MD Holdings if MD Mortgage shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or warranties of MD Mortgage contained herein shall be inaccurate in any material respect, which noncompliance or inaccuracy is not cured after 20 days written notice thereof is given to MD Mortgage.  If this Agreement is terminated pursuant to this paragraph (b) of this Section 3.5, this Agreement shall be of no further force or effect and no obligation, right or liability shall arise hereunder.

 

	(c)  	This Agreement may be terminated at any time prior to the Closing Date by action of the board of directors of MD Mortgage if MD Holdings shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or warranties of MD Holdings contained herein shall be inaccurate in any material respect, which noncompliance or inaccuracy is not cured after 20 days written notice thereof is given to MD Holdings.  If this Agreement is terminated pursuant to this paragraph (d) of this Section 3.5, this Agreement shall be of no further force or effect and no obligation, right or liability shall arise hereunder.

 

In the event of termination
pursuant to paragraph (b) or (c) of this Section 3.5, the breaching party shall bear all of the expenses incurred by the other
party in connection with the negotiation, drafting and execution of this Agreement and the transactions herein contemplated.

 

Section
3.6  Officers and Directors of MD Holdings and of MD Mortgage After Acquisition.  After the Closing Date,
the officers and directors of MD Holdings and MD Mortgage shall remain unchanged.

 

 

ARTICLE IV

SPECIAL COVENANTS

 

Section
4.1  Access to Properties and Records.  Prior to closing, MD Holdings and MD Mortgage will each
afford to the officers and authorized representatives of the other full access to the properties, books and records of each other,
in order that each may have full opportunity to make such reasonable investigation as it shall desire to make of the affairs of
the other and each will furnish the other with such additional financial and operating data and other information as to the business
and properties of each other, as the other shall from time to time reasonably request.

 

 

    	8

    	 

    

 

Section
4.2  Availability of Rule 144.  MD Holdings and MD Mortgage shareholders holding "restricted securities,"
as that term is defined in Rule 144 promulgated pursuant to the Securities Act will remain as “restricted securities.”  MD
Holdings is under no obligation to register such shares under the Securities Act, or otherwise. The stockholders of MD Holdings
and MD Mortgage holding restricted securities of MD Holdings and MD Mortgage as of the date of this Agreement and their respective
heirs, administrators, personal representatives, successors and assigns, are intended third party beneficiaries of the provisions
set forth herein.  The covenants set forth in this Section 4.2 shall survive the Closing and the consummation of the
transactions herein contemplated.

 

Section
4.3  Special Covenants and Representations Regarding the MD Holdings Common Shares to be Issued in the Exchange.  The
consummation of this Agreement, including the issuance of the MD Holdings Common Shares to the Shareholder of MD Mortgage as contemplated
hereby, constitutes the offer and sale of securities under the Securities Act, and applicable state statutes.  Such
transaction shall be consummated in reliance on exemptions from the registration and prospectus delivery requirements of such
statutes which depend, interalia, upon the circumstances under which the MD Mortgage Shareholders acquire such securities.

 

Section
4.4  Third Party Consents.  MD Holdings and MD Mortgage agree to cooperate with each other in order to
obtain any required third party consents to this Agreement and the transactions herein contemplated.

 

Section
4.5  Actions Prior and Subsequent to Closing.

 

	(a)  	From and after the date of this Agreement until the Closing Date, except as permitted or contemplated by this Agreement, MD Holdings and MD Mortgage will each use its best efforts to:

 

	(i)  	maintain and keep its properties in states of good repair and condition as at present, except for depreciation due to ordinary wear and tear and damage due to casualty;

 

	(ii)  	maintain in full force and effect insurance comparable in amount and in scope of coverage to that now maintained by it;

 

	(iii)  	perform in all material respects all of its obligations under material contracts, leases and instruments relating to or affecting its assets, properties and business;

 

	(b)  	From and after the date of this Agreement until the Closing Date, MD Mortgage will not, without the prior consent of MD Holdings:

 

	(i)  	except as otherwise specifically set forth herein, make any change in its articles of incorporation or bylaws;

 

	(ii)  	declare or pay any dividend on its outstanding Common Shares, except as may otherwise be required by law, or effect any stock split or otherwise change its capitalization, except as provided herein;

 

	(iii)  	enter into or amend any employment, severance or agreements or arrangements with any directors or officers;

 

 

 

    	9

    	 

    

 

	(iv)  	grant, confer or award any options, warrants, conversion rights or other rights not existing on the date hereof to acquire any Common Shares; or

 

	(v)  	purchase or redeem any Common Shares.

 

Section
4.6  Indemnification.

 

	(a)  	MD Holdings hereby agrees to indemnify MD Mortgage, each of the officers, agents and directors and current shareholders of MD Mortgage as of the Closing Date against any loss, liability, claim, damage or expense (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claim whatsoever), to which it or they may become subject to or rising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement.  The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement; and

 

	(b)  	MD Mortgage hereby agrees to indemnify MD Holdings, each of the officers, agents and directors and current shareholders of MD Holdings as of the Closing Date against any loss, liability, claim, damage or expense (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claim whatsoever), to which it or they may become subject to or rising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement.  The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement; and

 

ARTICLE V

CONDITIONS PRECEDENT TO
OBLIGATIONS OF MD MORTGAGE

 

The obligations of MD Mortgage
under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:

 

Section
5.1  Accuracy of Representations.  The representations and warranties made by MD Holdings in this
Agreement were true when made and shall be true at the Closing Date with the same force and effect as if such representations
and warranties were made at the Closing Date (except for changes therein permitted by this Agreement), and MD Holdings shall have
performed or compiled with all covenants and conditions required by this Agreement to be performed or complied with by MD Holdings
prior to or at the Closing.   MD Mortgage shall be furnished with a certificate, signed by a duly authorized officer
of MD Holdings and dated the Closing Date, to the foregoing effect.

 

Section
5.2  Director Approval.  The Board of Directors of MD Holdings shall have approved this Agreement
and the transactions contemplated herein.

 

 

    	10

    	 

    

 

Section
5.3   Officer's Certificate.  MD Mortgage shall have been furnished with a certificate dated
the Closing Date and signed by a duly authorized officer of MD Holdings to the effect that:  (a) the representations
and warranties of MD Holdings set forth in the Agreement and in all Exhibits, Schedules and other documents furnished in connection
herewith are in all material respects true and correct as if made on the Effective Date;  (b) MD Holdings has performed
all covenants, satisfied all conditions, and complied with all other terms and provisions of this Agreement to be performed, satisfied
or complied with by it as of the Effective Date;  (c)  since such date and other than as previously disclosed
to  MD Mortgage, MD Holdings has not entered into any material transaction other than transactions which are usual and  in
the ordinary course if its business; and  (d) no litigation, proceeding, investigation or inquiry is pending or, to
the best knowledge of MD Holdings, threatened, which might result in an action to enjoin or prevent the consummation of the transactions
contemplated by this Agreement or, to the extent not disclosed in the MD Holdings Schedules, by or against MD Holdings which might
result in any material adverse change in any of the assets, properties, business or operations of MD Holdings.

 

Section
5.4  No Material Adverse Change.  Prior to the Closing Date, there shall not have occurred any
material adverse change in the financial condition, business or operations of nor shall any event have occurred which, with the
lapse of time or the giving of notice, may cause or create any material adverse change in the financial condition, business or
operations of MD Holdings.

 

Section
5.5  Other Items.  MD Mortgage shall have received such further documents, certificates or instruments
relating to the transactions contemplated hereby as MD Mortgage may reasonably request.

 

ARTICLE VI

CONDITIONS PRECEDENT TO
OBLIGATIONS OF MD HOLDINGS

 

The obligations of MD Holdings
under this Agreement are subject to the satisfaction, at or before the Closing date (unless otherwise indicated herein), of the
following conditions:

 

Section
6.1  Accuracy of Representations.  The representations and warranties made by MD Mortgage in this
Agreement were true when made and shall be true as of the Closing Date (except for changes therein permitted by this Agreement)
with the same force and effect as if such representations and warranties were made at and as of the Closing Date, and MD Mortgage
shall have performed and complied with all covenants and conditions required by this Agreement to be performed or complied with
by MD Mortgage prior to or at the Closing.  MD Holdings shall have been furnished with a certificate, signed by a duly
authorized executive officer of MD Mortgage and dated the Closing Date, to the foregoing effect.

 

Section
6.2  Director Approval.  The Board of Directors of MD Mortgage shall have approved this Agreement
and the transactions contemplated herein.

 

Section
6.3  Officer's Certificate.  MD Holdings shall be furnished with a certificate dated the Closing
date and signed by a duly authorized officer of MD Mortgage to the effect that:  (a) the representations and warranties
of MD Mortgage set forth in the Agreement and in all Exhibits, Schedules and other documents furnished in connection herewith
are in all material respects true and correct as if made on the Effective Date; and (b) MD Mortgage had performed all covenants,
satisfied all conditions, and complied with all other terms and provisions of the Agreement to be performed, satisfied or complied
with by it as of the Effective Date.

 

Section
6.4  No Material Adverse Change.  Prior to the Closing Date, there shall not have occurred any
material adverse change in the financial condition, business or operations of nor shall any event have occurred which, with the
lapse of time or the giving of notice, may cause or create any material adverse change in the financial condition, business or
operations of MD Mortgage.

 

 

    	11

    	 

    

 

ARTICLE VII

MISCELLANEOUS

 

Section
7.1  Brokers and Finders.  Each party hereto hereby represents and warrants that it is under no
obligation, express or implied, to pay certain finders in connection with the bringing of the parties together in the negotiation,
execution, or consummation of this Agreement.  The parties each agree to indemnify the other against any claim by any
third person for any commission, brokerage or finder's fee or other payment with respect to this Agreement or the transactions
contemplated hereby based on any alleged agreement or understanding between the indemnifying party and such third person, whether
express or implied from the actions of the indemnifying party.

 

Section
7.2  Law, Forum and Jurisdiction.  This Agreement shall be construed and interpreted in accordance
with the laws of the State of New Jersey, United States of America.

 

Section
7.3  Notices.  Any notices or other communications required or permitted hereunder shall be sufficiently
given if personally delivered to it or sent by registered mail or certified mail, postage prepaid, or by prepaid telegram addressed
as follows:

 

 

	If to MD Holdings :	MD Holdings, Inc.

	 	c/o Anslow & Jaclin, LLP

	 	195 Route 9 South, Suite 204

	 	Manalapan, NJ 07726

 

 

	If to MD Mortgage:	MD Mortgage Corporation

c/o Anslow & Jaclin, LLP

	 	195 Route 9 South, Suite 204

	 	Manalapan, NJ 07726

 

or such other addresses as
shall be furnished in writing by any party in the manner for giving notices hereunder, and any such notice or communication shall
be deemed to have been given as of the date so delivered, mailed or telegraphed.

 

Section
7.4  Attorneys' Fees.  In the event that any party institutes any action or suit to enforce this
Agreement or to secure relief from any default hereunder or breach hereof, the breaching party or parties shall reimburse the
non-breaching party or parties for all costs, including reasonable attorneys' fees, incurred in connection therewith and in enforcing
or collecting any judgment rendered therein.

 

Section
7.5  Confidentiality.  Each party hereto agrees with the other party that, unless and until the
transactions contemplated by this Agreement have been consummated, they and their representatives will hold in strict confidence
all data and information obtained with respect to another party or any subsidiary thereof from any representative, officer, director
or employee, or from any books or records or from personal inspection, of such other party, and shall not use such data or information
or disclose the same to others, except:  (i)  to the extent such data is a matter of public knowledge or is
required by law to be published; and (ii)  to the extent that such data or information must be used or disclosed in
order to consummate the transactions contemplated by this Agreement.

 

 

    	12

    	 

    

 

Section
7.6  Schedules; Knowledge.  Each party is presumed to have full knowledge of all information set
forth in the other party's schedules delivered pursuant to this Agreement.

 

Section
7.7  Third Party Beneficiaries.  This contract is solely between MD Holdings and MD Mortgage and
except as specifically provided, no director, officer, stockholder, employee, agent, independent contractor or any other person
or entity shall be deemed to be a third party beneficiary of this Agreement.

 

Section
7.8  Entire Agreement.  This Agreement represents the entire agreement between the parties relating
to the subject matter hereof.  This Agreement alone fully and completely expresses the agreement of the parties relating
to the subject matter hereof.  There are no other courses of dealing, understanding, agreements, representations or
warranties, written or oral, except as set forth herein.  This Agreement may not be amended or modified, except by a
written agreement signed by all parties hereto.

 

Section
7.9  Survival; Termination.  The representations, warranties and covenants of the respective parties
shall survive the Closing Date and the consummation of the transactions herein contemplated for 18 months.

 

Section
7.10  Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall
be deemed an original and all of which taken together shall be but a single instrument.

 

Section
7.11  Amendment or Waiver.  Every right and remedy provided herein shall be cumulative with every
other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver
by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default
then, theretofore, or thereafter occurring or existing.  At any time prior to the Closing Date, this Agreement may be
amended by a writing signed by all parties hereto, with respect to any of the terms contained herein, and any term or condition
of this Agreement may be waived or the time for performance hereof may be extended by a writing signed by the party or parties
for whose benefit the provision is intended.

 

Section
7.12  Expenses.  Each party herein shall bear all of their respective costs and expenses incurred
in connection with the negotiation of this Agreement and in the consummation of the transactions provided for herein and the preparation
thereof.

 

Section
7.13  Headings; Context.  The headings of the sections and paragraphs contained in this Agreement
are for convenience of reference only and do not form a part hereof and in no way modify, interpret or construe the meaning of
this Agreement.

 

Section
7.14  Benefit.  This Agreement shall be binding upon and shall inure only to the benefit of the
parties hereto, and their permitted assigns hereunder.  This Agreement shall not be assigned by any party without the
prior written consent of the other party.

 

 

    	13

    	 

    

 

Section
7.15  Public Announcements.  Except as may be required by law, neither party shall make any public
announcement or filing with respect to the transactions provided for herein without the prior consent of the other party hereto.

 

Section
7.16  Severability.  In the event that any particular provision or provisions of this Agreement
or the other agreements contained herein shall for any reason hereafter be determined to be unenforceable, or in violation of
any law, governmental order or regulation, such unenforceability or violation shall not affect the remaining provisions of such
agreements, which shall continue in full force and effect and be binding upon the respective parties hereto.

 

Section
7.17  Failure of Conditions; Termination.  In the event of any of the conditions specified in this
Agreement shall not be fulfilled on or before the Closing Date, either of the parties have the right either to proceed or, upon
prompt written notice to the other, to terminate and rescind this Agreement.  In such event, the party that has failed
to fulfill the conditions specified in this Agreement will be liable for the other party’s legal fees.  The election
to proceed shall not affect the right of such electing party reasonably to require the other party to continue to use its efforts
to fulfill the unmet conditions.

 

Section
7.18   No Strict Construction.   The language of this Agreement shall be construed as
a whole, according to its fair meaning and intendment, and not strictly for or against either party hereto, regardless of who
drafted or was principally responsible for drafting the Agreement or terms or conditions hereof.

 

Section
7.19   Execution Knowing and Voluntary.  In executing this Agreement, the parties severally
acknowledge and represent that each:  (a) has fully and carefully read and considered this Agreement;  (b)
has been or has had the opportunity to be fully apprized by its attorneys of the legal effect and meaning of this document and
all terms and conditions hereof;  (c) is executing this Agreement voluntarily, free from any influence, coercion or
duress of any kind.

 

Section
7.20  Amendment.  At any time after the Closing Date, this Agreement may be amended by a writing signed
by both parties, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived
or the time for performance hereof may be extended by a writing signed by the party or parties for whose benefit the provision
is intended.

 

Section
7.21  Conflict of Interest.  Both MD Mortgage and MD Holdings understand that Anslow & Jaclin, LLP
is representing both parties in this transaction which represents a conflict of interest.  Both MD Mortgage and MD Holdings
have the right to different counsel due to this conflict of interest.  Notwithstanding the above, both MD Mortgage and
MD Holdings agree to waive this conflict and have Anslow & Jaclin, LLP represent both parties in the above-referenced transaction.  Both
MD Mortgage and MD Holdings agree to hold this law firm harmless from any and all liabilities that may occur or arise due to this
conflict.

 

 

 

    	14

    	 

    

 

 

 

 

 

 

 

IN WITNESS WHEREOF,
the corporate parties hereto have caused this Agreement to be executed by their respective officers, hereunto duly authorized,
and entered into as of the date first above written.

 

 

	ATTEST:	 	MD HOLDINGS CORP.
	 	 	 
	 	 	By: 	/s/ Marshall Davis
	 

	 	 	Marshall Davis

President

	 	 	 
	 	 	 
	ATTEST:	 	
MD MORTGAGE CORPORATION
	 	 	 
	 	 	By: 	/s/ Marshall Davis
	 

	 	 	Marshall Davis

President

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	WITNESS:	 	MD MORTGAGE CORPORATION SHAREHOLDERS
	 	 	 
	 	 	/s/	Marshall Davis
	 

	 	 	Marshall Davis

President

	  	 	 
	 	 	 
	 	 	/s/	Richard I. Anslow
	 

	 	 	Richard I. Anslow

	 	 	 
	 	 	/s/	Gregg E. Jaclin
	 

	 	 	Gregg E. Jaclin

	 	 	 
	 	 	 
	  	 	Goldco Properties Limited Partnership
	 	 	 
	 	 	 
	 	 	/s/	Peter Goldstein
	 

	 	 	Peter Goldstein

	  	 	
	 
	 	 	/s/	Kristina Trauger
	 

	 	 	Kristina Trauger

 

    	15Our Ref:          011L122256-RL

Date: 21 March 2012

Hong Kong Highpower Technology Company Limited

Unit 12 15/F Technology Park

18 On Lai Street

Shek Mun

Shatin

 

Dear Sir(s)

 

	Re:	Term Loan I for USD2,600,000.00 and Term Loan II for HKD20,000,000.00
	 	Facility Letter dated, 29 August 2011 (the “Facility Letter”)

 

We refer to the Facility Letter and are
pleased to advise that the captioned facilities will continue to be made available to your company on the terms and conditions
stipulated in the Facility Letter except the following terms are replaced as below:-

 

	1.	Final Maturity Date:	Term Loan I: 28 March 2013 
 Term Loan II: 7 September 2012
	 	 	 
	2.	Term Loan I Interest Rate:	3% per annum above LIBOR
	 	 	 
	 	 	LIBOR means the London Interbank Offered Rate which shall be determined by the Lender by reference to the Reuters LIBOR page (or its replacement) as of 11:00 a.m. (London Time) two London Business Days prior to the beginning of each Interest Period.
	 	 	 
	3.	Term Loan I Handling Fee:	Non-refundable handling fee of 0.25% flat on the total Term Loan I Facility amount payable to the Lender within 7 Business Days after the Borrower’s acceptance of this Letter, but not later than 30 March 2012.

 

The granting of the banking facility is
subject to our usual terms and conditions for banking facilities granted to customers. Kindly confirm your acceptance of the above
terms and conditions by signing and returning to us the duplicate of this letter on or before 30 March 2012.

 

Yours faithfully

For Wing Lung Bank Limited

 

	/s/ [Illegible Signature]	/s/ [Illegible Signature]	 

Authorised Signatures

 

We accept the above terms and conditions

 

	/s/ Dang Yu Pan	 
	Borrower(s) & Surety(ies): Hong Kong Highpower Technology Company Limited
	Date:	 

 

    	 

    	 

    

 

CERTIFIED EXTRACT OF BOARD RESOLUTIONS

 

HONG KONG HIGHPOWER TECHNOLOGY COMPANY
LIMITED (“Company”)

 

We certify that the following is a true
extract of the resolutions of the Directors of the Company duly passed in accordance with the Company’s Articles of Association
on ________________________, which resolutions have not been amended, varied, rescinded or revoked and are in full force and effect:

 

IT WAS RESOLVED that:

 

		1.	It is in the commercial interest and corporate benefit of the Company to enter into and accept
the provisions of the facility letter (“Facility Letter”) of Wing Lung Bank Limited (“Bank”)
dated 29 August 2011 as amended by the supplemental facility dated 21 March 2012, together with the Bank’s Terms and Conditions
for Facilities (as amended by the Bank from time to time) (collectively the “Documents”).

 

		2.	The entry into, borrowing under, incurring and performance by the Company of its obligations under,
and the transactions contemplated by, the Documents are authorised.

 

		3.	Any                               
of the authorized representatives (“Authorized Representatives”) whose specimen signatures appear below are
authorised for and on behalf of and so as to bind the Company to sign the Facility Letter, to deliver the signed Facility Letter
to the Bank, to make any request to utilise any of the facilities under the Facility Letter, and to sign and deliver all other
documents, notices and communications required or permitted to be given by or on behalf of the Company under or for the purposes
of the Documents or the transactions contemplated thereby.

 

Authorized
Representatives:

 

	Name (in block letters) / Title	 	
        Specimen Signature

        /s/ Dang Yu Pan

	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

		4.	Any                               
of the Authorized Representatives is/are authorised, in the name and on behalf of the Company and from time to time, to do any
and all other things and to sign and deliver any and all documents which such Authorized Representative(s) consider(s) necessary
or desirable in connection with finalizing, giving effect to and completing the Documents or the transactions contemplated thereby.
If required, the Common Seal of the Company may be affixed onto any documents and any such Authorized Representative(s) may sign
such documents.

 

    	 

    	 

    

 

		5.	These resolutions be communicated to the Bank and will remain in effect until an amending resolution
has been sent to and acted on by the Bank. These resolutions will be binding notwithstanding any change in the Company’s
constitution. A copy of any resolution of the Directors of the Company, if certified by a Director of the Company, may be accepted
and acted on by the Bank without any enquiry.

 

Certified by:

 

	/s/ Dang Yu Pan	 
	Name in block letters:	 
	Director	 

 

Date:

 

    	- 3 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00204-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00204-of-00352.parquet"}]]