Document:

dragon_ex1001.htm

     

    EXHIBIT 10.1

     

    
      STOCK
        PURCHASE AGREEMENT

      

      THIS
        STOCK PURCHASE AGREEMENT (the "Agreement") executed this 28th day of
        September,
        2007 by and among Dragon International Group Corp, a Nevada
        Corporation, (hereinafter referred to as “Dragon”), and Wellton
        International Fiber Corp., a corporation organized
        under the laws of the British Virgin Islands (hereinafter
        referred to as the “Company” or “Wellton”), and York
        Smooth, Ltd., a
        Chinese limited liability company and sole shareholder of Wellton International
        Fiber Corp. (the “Shareholder”), and effective October 1,
        2007.  Dragon, Wellton and Shareholder, together, shall be referred to
        as the “Parties” herein.

      

      RECITALS

      

      A.     
        Dragon owns a 51% equity interest in Wellton.  On June 29, 2007 Dragon
        acquired a 51% equity interest in Wellton in exchange for an aggregate of
        8,186,029 shares of common stock, valued at $573,022 (the "Consideration
        Stock").  The 51% equity interest of Wellton was based on the value of
        the net tangible assets of Wellton as stated on Wellton’s unaudited
        financial statements as of March 31, 2007.  The number of shares of
        Consideration Stock was computed by dividing the aggregate Purchase Price
        by the
        closing price of Dragon Nevada's common stock on the
        Over-the-Counter-Bulletin-Board on April 23, 2007, which was $.07 per
        share.

      

      B.       Shareholder
        owns a 49% equity interest in Wellton.

      

      C.       Net
        Tangible Assets of Wellton, as of March 31, 2007 is $1,123,573.

      

      D.      Dragon
        desires to acquire, in a stock for stock exchange, Shareholder’s 49% equity
        interest of Wellton, resulting in Wellton becoming a wholly-owned subsidiary
        of
        Dragon.

      

      E.      Shareholder
        desires to exchange its 49% equity interest of Wellton for the consideration
        of
        7,865,011 Dragon authorized but unissued shares of common stock as provided
        in
        the Agreement herein.

      

      F.      The
        Exchange shall qualify as a transaction in securities exempt from registration
        under Section 4(2) of the Securities Act of 1933, as amended.

      

      G.      Wellton
        is doing business in China and related territories with an address
        of:

      

      Suite
        1503, Bldg C, New Century Plaza,

      48
        Xing
        Yi Rd, Hong Qiao, Shanghai, China 200336

      PHONE:
        86-21-6295-4411

      FAX:
        86-21-6295-4001

      

      NOW,
        THEREFORE, in consideration of the mutual covenants, agreements, representations
        and warranties contained in this Agreement, the parties hereto agree as
        follows:

      

      SECTION
        1.  EXCHANGE OF SHARES

      

      1.1           Exchange
        of Shares.  Dragon and the Shareholder hereby agree that,
        effective October 1, 2007, Shareholder shall exchange its 49% equity interest
        of
        Wellton (the "Wellton Shares") for 7,865,011shares of Dragon Common Stock,
        $.001
        par value (the "Dragon Shares"), valued at $0.07 per share, the closing trade
        price of Dragon on April 23, 2007.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      1.2            Delivery
        of Shares.  On the Closing Date, as defined in Section 1.4
        below, Shareholder will deliver to Dragon the certificates representing the
        Wellton Shares, and Dragon will deliver certificates representing
        7,865,011 shares of Dragon to Shareholder.

      

      1.3           Investment
        Intent.  The newly issued shares of Dragon common stock have not
        been registered under the Securities Act of 1933, as Amended, and may not
        be
        resold unless the Dragon Shares are registered under the Act or an exemption
        from such registration is available.  The Shareholder represents and
        warrants that he is acquiring the Dragon Shares for his own account, for
        investment, and not with a view to the sale or distribution of such
        Shares.  Each certificate representing the Dragon Shares will have a
        legend thereon incorporating language as follows:

      

      "The
        shares represented by this certificate have not been registered under the
        Securities Act of 1933, as amended (the "Act").  The shares have been
        acquired for investment and may not be sold or transferred in the absence
        of an
        effective Registration Statement for the shares under the Act unless in the
        opinion of counsel satisfactory to the Company, registration is not required
        under the Act."

      

      1.4       
          Closing Date.  The closing shall take place
        not later than December 1, 2007 (the “Closing Date”).  At the closing,
        the parties shall provide each other with such documents as may be necessary
        or
        appropriate in order to consummate the transactions contemplated
        herein.

      

      SECTION
        2.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE
        SHAREHOLDER

      

      The
        Company and the Shareholder hereby represent and warrant as
        follows:

      

      2.1         Organization
        and Good Standing; Ownership of Shares.  The Company and its
        subsidiary are corporations duly organized, validly existing and in good
        standing under the laws of the British Virgin Islands, and is entitled to
        own or
        lease its properties and to carry on its business as and in the places where
        such properties are now owned, leased or operated and such business is now
        conducted.  The Company is duly licensed or qualified and in good
        standing as a Chinese company where the character of the properties owned
        by it
        or the nature of the business transacted by it make such licenses or
        qualifications necessary.  There are no outstanding subscriptions,
        rights, options, warrants or other agreements obligating either the Company
        or
        the Shareholder to issue, sell or transfer any stock or other securities of
        the Company.

      

      2.2        
        Ownership of Capital Stock.  The Shareholder is the beneficial
        owner of record and beneficially of all of the shares of capital stock of
        the
        Company, all of which shares are free and clear of all rights, claims, liens
        and
        encumbrances, and have not been sold, pledged, assigned or otherwise transferred
        except pursuant to this Agreement.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      SECTION
        3.  REPRESENTATIONS AND WARRANTIES OF
DRAGON

      

      Dragon
        hereby represents and warrants to the Company and the Shareholders as
        follows:

      

      3.1         Organization
        and Good Standing.   Dragon is a corporation duly organized,
        validly existing and in good standing under the laws of the State of Nevada
        and
        is entitled to own or lease its properties and to carry on its business as
        and
        in the places where such properties are now owned, leased, or operated and
        such
        business is now conducted.  The authorized capital stock of consists
        of 200,000,000 shares of Common Stock (Par Value $0.001), of which 96,363,982
        shares are presently issued and outstanding and 25,000,000 shares of
        preferred stock, of which none is issued and outstanding.  Dragon is duly
        licensed or qualified and in good standing as a foreign corporation where
        the
        character of the properties owned by Dragon or the nature of the business
        transacted by it make such license or qualification necessary.  Dragon
        does have four subsidiaries.

      

      3.2         The
        Dragon Shares.  The Dragon Shares to be issued to the Shareholder
        have been or will have been duly authorized by all necessary corporate and
        stockholder actions and, when so issued in accordance with the terms of this
        Agreement, will be validly issued, fully paid and non-assessable.

      

      SECTION
        4.  MISCELLANEOUS

      

      4.1         Waivers.  The
        waiver of a breach of this Agreement or the failure of any party hereto to
        exercise any right under this Agreement shall in no event constitute waiver
        as
        to any future breach whether similar or dissimilar in nature or as to the
        exercise of any further right under this Agreement.

      

      4.2         Amendment.  This
        Agreement may be amended or modified only by an instrument of equal formality
        signed by the parties or the duly authorized representatives of the respective
        parties.

      

      4.3         Assignment.  This
        Agreement is not assignable except by operation of law.

      

      4.4         Notices.  Until
        otherwise specified in writing, the mailing addresses of both parties of
        this
        Agreement shall be as follows:

      

      
        	
                Dragon:

                No.
                  201, Guangyuan Road, District C,

                Investment Pioneering
                  Park Jiangbei

                Ningbo,
                  China 315033

                Tel:
                  86-574-83070703

                Fax:
                  86-574-83070757)

              	
                Wellton:

                Suite
                  1503, Bldg C, New Century Plaza,

                48
                  Xing Yi Rd, Hong Qiao, Shanghai, China 200336

                PHONE:
                  86-21-6295-4411

                FAX:
                  86-21-6295-4001

              

      

      

      Any
        notice or statement given under this Agreement shall be deemed to have been
        given if sent by registered mail addressed to the other party at the address
        indicated above or at such other address that shall have been furnished in
        writing to the addressor.

      

      4.5           Governing
        Law.  This Agreement shall be construed, and the legal relations
        be the parties determined, in accordance with the laws of the State of Nevada,
        thereby precluding any choice of law rules which may direct the applicable
        of
        the laws of any other jurisdiction.

      

      4.8           Headings.  The
        headings in this Agreement are for reference purposes only and shall not
        in any
        way affect the meaning or interpretation of this Agreement.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      4.9           Severability
        of Provisions.  The invalidity or unenforceability of any term,
        phrase, clause, paragraph, restriction, covenant, agreement or other provision
        of this Agreement shall in no way affect the validity or enforcement of any
        other provision or any part thereof.

      

      4.10
        Counterparts.  This Agreement may be executed in any number of
        counterparts, each of which when so executed, shall constitute an original
        copy
        hereof, but all of which together shall consider but one and the same
        document.

      

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement on the date
        first above written.

       

      
        	
                Dragon
                  International Group Corp

                 

                By:
                  /s/ David Wu

                                Date

                Name:  David
                  Wu, CEO and Chairman

                 

              	
                Wellton
                  International Fiber Corp.

                 

                By:
                  /s/ Kung Ming Kuo

                                Date

                 

                Kung
                  Ming Kuo, General Manager

              
	
                 

                York
                  Smooth, Ltd.

                 

                By:
                  ____________________________________

                                Date

                 

                NAMEEX-10.1

Municipal Mortgage & Equity, LLC

621 East Pratt Street

Baltimore, Maryland 21202

T 443.263.2900 F 410.727.5387

November 7, 2007

VIA FACSIMILE

Wachovia Securities

301 S. College Street, 16th Floor

Charlotte, NC 28288

Attention: Lee Goins, Vice President

Re: Notice and Request for Waiver

Ladies and Gentlemen:

Reference is made to that certain $200,000,000 Master Repurchase Agreement by and among MMA
Realty Capital Repurchase Subsidiary, LLC, Variable Funding Capital Company, LLC, Wachovia Capital
Markets, LLC (the “Bank”), MMA Realty Capital, LLC and Municipal Mortgage & Equity, LLC
(“MuniMae”) dated as of November 13, 2006 and all related agreements (together, the
"Agreement”). All capitalized terms used but not defined herein shall have the meanings
assigned to such terms in the Agreement.

Notice

This correspondence will serve as notice of the matters set forth herein given pursuant to the
requirements of the applicable notices provisions of the Agreement.

As we notified you by letter in September 2006 and by the Notice and Request for Waiver, dated
March 23, 2007, our continuing efforts to restate certain of the historical GAAP financial
statements of MuniMae and certain other matters have delayed the completion of certain of our 2006
financial statements and annual and periodic reports to the Securities and Exchange Commission, as
well as the financial statements for certain of our affiliates.

We currently anticipate that we will file (1) our annual report on Form 10-K for fiscal 2006
(the “MuniMae 2006 Form 10-K”) on or before March 3, 2008 and (2) our quarterly reports on
Forms 10-Q for each of the quarters ending March 31, 2007, June 30, 2007 and September 30, 2007
(the “MuniMae Q1 2007 Form l0-Q,” the “MuniMae Q2 2007 Form 10-Q” and the
"MuniMae Q3 2007 Form 10-Q,” respectively, and together the “MuniMae 2007 Forms
10-Q”) sequentially at some point after March 31, 2008 but not after December 31, 2008. Prior
to these filing dates, we currently anticipate that we will be able to deliver only “management
certified” unaudited financial statements with respect to MuniMae.

As a result and as we have informed you previously, we will be unable to comply with the
applicable financial reporting and related covenants set forth in the applicable financial
reporting covenants in the Agreements.

Request for Waiver

We hereby request a one-time waiver of any and all Defaults or Events of Default with respect
to the matters set forth herein; provided that we are able to deliver.

(a) audited 2006 financial statements for MuniMae as well as the MuniMae 2006 Form
10-K on or before March 3, 2008,

(b) the MuniMae 2007 Forms 10-Q filed sequentially on or before December 31, 2008,
and

(c) audited financial statements for other applicable MuniMae subsidiaries for the
year ending December 31, 2007 on or before December 31, 2008.

We acknowledge and agree that the Bank shall reserve the right to declare this waiver void
and of no force or effect if we fail to comply with these conditions.

We represent and warrant that the Company is in compliance with the Financial covenants and
all other covenants, duties, agreements contained in the Agreement, all representations and
warranties in the Agreement are true and correct in all material respects and there are no other
Defaults or Events of Default under the Agreement. We acknowledge and agree that the Bank is and
shall be entitled to rely on this representation and warranty in determining whether or not to
grant the requested waiver.

We acknowledge and agree that the Bank, if it executes this Request for Waiver, does so with
the express understanding with the Company that, in entering into the Request for Waiver, we are
not establishing any course of dealing with such Person. The Bank’s rights to require strict
performance with all of the provisions, terms and conditions of the Agreement shall not in any way
be impaired by the extension of this Request for Waiver, except to the extent expressly waived by
this Request for Waiver. The Bank shall not be obligated in any manner to execute further
amendments or waivers, if such waivers or amendments are requested in the future, assuming the
terms and conditions are satisfactory to it, the Bank may require the payment of fees in connection
therewith.

This Request for Waiver constitutes the entire agreement concerning the subject matter hereof
and supersedes any and all written and/or oral prior agreements, negotiations, correspondence,
understandings and communications. Except as expressly modified hereby, all of the terms and
provisions of the Agreement shall remain in full force and effect. The waiver granted by this
Request for Waiver is affective only for the specific purpose for which it is given and shall not
be deemed a consent, waiver, amendment or modification of any term or condition set forth in the
Agreement. The Bank hereby acknowledges that, after giving effect to this Request for Waiver, the
Agreement remains in fall force and effect.

This Request for Waiver may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original, and all of which, when taken together, shall constitute one and the same letter
agreement. This Request for Waiver shall be effective as of the date of execution by the Bank.

This Request for Waiver shall be governed by, construed and enforced in accordance with, the
laws of the State of New York without regard to its conflict of laws provisions.

1

This notice is being delivered to you as confirmation of our earlier discussion with you on
the topics set forth above and our understanding that this situation does not present any issues
under the Agreement. Please contact me by phone at (813) 868-8025 or e-mail at
ed.feldkamp@munimae.com if this is not the case.

Sincerely,

MUNICIPAL MORTGAGE & EQUITY, LLC

	 	 	 
	By: /s/Edward Feldkamp

	Name:

Title:

	 	Edward Feldkamp

Vice President and Treasurer

2

Please indicate your grant of the waivers requested above by signing below and returning a
copy of this page to me by e-mail or facsimile.

WACHOVIA BANK, N.A.

	 	 	 
	By:/s/ H. Lee Goins III

	Name:

Title:

	 	H. Lee Goins III

Vice President

3

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