Document:

kl09004_ex10-1.htm

    
      

    

     

    Exhibit 10.1

     

     

    

     

     

    
      
        	 
      	 
      
	 
      	 
      
	
                Kerry
      Propper

                CEO

                 

                 

              	
                Chardan
      Capital Markets, LLC

                17
      State Street

                Suite
      1600

                New
      York, NY 10004

                Tel:  646
      465 9015

                Fax:  646
      465 9039

                 

              

      

      

       

      September
4, 2008

      

      

      InterAmerican
Acquisition Group, Inc.

      2918
Fifth Avenue South, Suite 209

      San
Diego, CA 92103

      O:
619-298-9883

      

      

      

      Gentlemen:

      

      This
letter will confirm our understanding that InterAmerican Acquisition Group, Inc.
(the “Company” or “IAG”) engages Chardan Capital Markets, LLC (“Chardan”) and
Chardan accepts the engagement for Chardan to act as the Company’s exclusive
financial advisor in connection with a Merger Transaction (as defined below) on
the terms and conditions set forth below (sometimes referred to as the
“Transaction”).   References herein to the “Company" or to the
Target shall be deemed to include any entity that the Company or the Target,
whichever the case may be, may form or utilize to effect any of the transactions
contemplated hereby. The surviving public company following the Merger
Transaction is sometimes referred to as the “Combined Company”. IAG shall take
such steps as are necessary to ensure that this agreement is assumed by the
Combined Company if a Merger Transaction is consummated.

      

      Section 1.    Scope of Engagement and
Services.  In connection with this engagement, Chardan (and to
the extent it deems necessary, specialists that it engages to assist it) shall,
as appropriate:

      

      
        	
                (a)  

              	
                advise
      and assist the Company with respect to defining objectives, performing
      valuation analyses and structuring and planning the Transaction;
      and

              

      

       

      
        	
                (b)  

              	
                advise
      and assist the Company in crafting and negotiating the terms and
      conditions of the Transaction, including any amendments thereto that may
      be proposed by Target of are necessitated by changes in circumstances or
      performance of the Target or capital markets conditions that could
      adversely impact the chances of gaining approval for the Transaction from
      IAG’s stockholders; and

              

      

       

      
        	
                (c)  

              	
                arrange
      road shows and ad hoc meetings for the Company to introduce it and the
      Transaction to prospective investors, as appropriate. and to assist the
      Company to identify investors who are favorably disposed to the
      Transaction and would be interested in acquiring its stock, voting
      favorably on the Transaction in any prospective vote related thereto and
      holding the Company’s stock following the closing of the Transaction;
      and

              

      

       

      
        	
                (d)  

              	
                advise
      the Company on strategy in connection with its proxy filings, other public
      disclosures and matters related to the required shareholder vote on the
      Transaction; and

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      InterAmerican Acquisition Group, Inc.

      Page 2

       

       

       

       

      
        	
                (e)  

              	
                introduce
      the Company to research firms and research units of brokerage firms and
      others in order to increase market awareness and institutional investor
      interest in IAG, the Transaction and the Combined Company;
    and

              

      

       

      
        	
                (f)  

              	
                leverage
      Chardan’s relationships with other financial institutions in order to
      facilitate varied corporate finance strategy support and awareness of and
      interest in the securities of IAG and the Combined Company;
      and

              

      

       

      
        	
                (g)  

              	
                perform
      such other tasks related to the Transaction as Chardan and the Company may
      from time to time agree upon.

              

      

       

      For
purposes of this agreement, the term “Merger Transaction” shall mean the
business combination between IAG and Sing Kung, Ltd. (“Sing Kung”) pursuant to
that certain Amended and Restated Stock Purchase Agreement dated as of May 15,
2008, and any subsequent amendments thereto or any other transaction involving
both Sing Kung or any affiliated or subsidiary entity of Sing Kung (collectively
a “SK Affiliate”) and the Company in which a substantial amount of the assets or
the capital stock of the Company (whether in one or a series of transactions),
is transferred to an SK Affiliate or its stockholders through any proposed
merger, consolidation, joint venture, contractual arrangements or other
business/strategic combination.

      

      In
performing its services hereunder, Chardan shall use commercially reasonable
efforts to obtain the results desired by the Company, in accordance with the
terms hereof.  Chardan shall also cooperate with and coordinate its
efforts on the Company’s behalf with other professionals engaged by the Company,
including its attorneys, accountants and Investor Relations firm, that it has
engaged in connection with the  Merger Transaction and obtaining a
favorable shareholder voter thereon.

      

      Section 2.    Compensation.  For
and in consideration for the services to be rendered hereunder:

      

      In the
event a Merger Transaction is consummated pursuant to the terms hereof, the
Company will pay Chardan a “Merger Transaction Fee” equal to five-tenths of one
percent (0.5%)of the Market Capitalization of the Combined
Company.  For purposes of this paragraph, Market Capitalization shall
mean the Issued and Outstanding Shares of the Combined Company immediately
following the closing of the Merger Transaction (the “IOS”) multiplied by the
average closing price of the stock (the “ACP”).  IOS means 59,463,718
shares less shares that do not elect to participate in the exchange offer or are
held back as a result of purchase price adjustments specified in the Merger
Transaction documents. ACP means the average closing price of IAG common stock
for the 10 trading days immediately before the closing day of the Merger
Transaction (the “IAG Price”) and of the common stock of the Combined Company
for the 10 trading days immediately following the closing day of the Merger
Transaction (the “Combined Company Price”).  . As an added incentive,
Chardan shall receive fifteen one-hundredths of one percent (0.15%) of the
Market Capitalization of the Combined Company if the Combined Company Price
exceeds $10/share.

      

      All fees
payable and expenses reimbursable hereunder will be payable after deduction of
all applicable withholding and similar taxes, it being understood that Chardan
is responsible for all taxes on payments made to it hereunder.  The
Merger Transaction Fee and expenses reimbursable hereunder are contingent on the
closing of the Merger Transaction and shall be settled on a preliminary basis at
the time of closing by wire transfer of funds from the Combined Company to
Chardan calculated solely on the IAG Price.  Any adjustment thereto
based on the application of the Combined Company Price shall be settled between
the parties by wire transfer within 15 business days following the closing day
of the Merger Transaction.  Chardan may choose to involve other
persons or organizations with specialist skills or geographic capabilities to
fulfill some of its engagement responsibilities.  To the extent that
it does so, it will be responsible for compensation of such parties unless the
Company has agreed in writing to engage them separately.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        InterAmerican Acquisition Group, Inc.

        Page 3

      

       

       

      
 

      As
additional consideration, if there is a closing of the Merger Transaction, the
engagement period will be automatically extended for an additional twenty-four
months following such closing.  During the Engagement Period, and as
long as Chardan is proceeding in good faith to meet the needs of the Combined
Company, the Combined Company will not solicit, negotiate with or enter into any
agreement with any other source of financing (whether equity, debt or
otherwise), any underwriter, potential underwriter, placement agent, financial
advisor, fund, investment vehicle or any other person or entity in connection
with an offering of the Company’s securities or any other financing by the
Company without prior consultation with Chardan.  In consideration for
its professional advice on such financing matters, Chardan shall receive a
monthly retainer throughout the engagement period of an amount mutually
agreeable to Chardan and the Combined Company Board of Directors and set
promptly following the closing of the Merger Transaction based on the parties’
good faith estimates at the time of the workload involved.

      

      Notwithstanding
any other provisions herein, if the IAG or Combined Company is considering
either an offer of securities to the public or a private placement of securities
in conjunction with or following the Merger Transaction, Chardan will be
considered for the role of financial advisor, underwriter or placement agent, as
the case may be if any such advisor is engaged.  If Chardan’s proposed
fees for such engagement are competitive and it has reasonably competitive
qualifications and is willing to commit appropriate staff resources to complete
the proposed assignment in accordance with the requirements of the Combined
Company or IAG, then it shall be given preference in selection as the advisor
for such engagement, subject to the final determination of the board of
directors of IAG or the Combined Company. For avoidance of doubt, if Chardan is
asked to act for IAG or the Combined Company in any other formal additional
capacity not specifically addressed in this letter, such as acting as an
underwriter in connection with the issuance of securities by the Combined
Company, then such activities shall constitute separate engagements and the
terms and conditions of any such additional engagements will be embodied in one
or more separate written agreements, containing provisions and terms to be
mutually agreed upon, including without limitation appropriate indemnification
provisions.  The indemnity provisions in the letter agreement attached
hereto as Annex
A shall apply to any such additional engagements, unless superseded by an
indemnity provision set forth in a separate agreement applicable to any such
additional engagements, and shall remain in full force and effect regardless of
any completion, modification or termination of Chardan’s
engagement(s).

      

      

      Section 3.    Expenses.  In
addition to compensation payable pursuant to Section 2, if the Company requests
Chardan to incur expenses in connection with the Transaction or Chardan's
services hereunder, then Chardan shall submit such expenses for Company's prior
approval and if the Company approves same, it shall reimburse Chardan, for such
out-of-pocket expenses incurred by Chardan.  Company acknowledges that
reasonable travel expenses up to $5,000 will require no prior approval from
Company.

      

      Section 4.    Confidentiality.  The
Company agrees that, except as required by applicable law, any confidential
information or advice to be provided by Chardan or any of its representatives in
connection with this engagement, whether formal or informal, shall not be
disclosed publicly or made available to third parties, in whole or in part, or
summarized, excerpted from or otherwise referred to without Chardan’s prior
written consent, and accordingly such advice shall not be relied upon by any
person or entity other than the Company.  In addition, neither Chardan
nor the terms of this engagement may be otherwise referred to without Chardan’s
prior written consent.

      

      Section 5.    Use of
Information.  In connection with Chardan’s engagement, to the
extent Company wishes Chardan to use the information, and on the expectation
that Chardan will strictly follow Company's guidelines in connection therewith,
the Company shall (a) make available to Chardan information concerning the
business, assets, operations and financial condition of the Company; and
(b)

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        InterAmerican Acquisition Group, Inc.

        Page 4

      

       

       

       

       

      provide
Chardan with reasonable access to the Company’s officers, directors, employees,
accountants, counsel and other advisors and agents as is appropriate to the
Transaction contemplated.  The Company represents that all such
information furnished by it or on its behalf shall be true, complete and correct
in all material respects and shall not contain any misstatement of material fact
or omit to state any material fact required to be stated therein or necessary to
make such information not misleading.  The Company recognizes and
confirms that Chardan, in acting pursuant to this engagement, will be using such
information (to the extent permitted by Company) in reports and other materials
provided by others, and that Chardan does not assume responsibility for and may
rely, without independent verification, solely upon the accuracy and
completeness of any such information.  The Company will promptly
notify Chardan if the Company learns of any material inaccuracy or misstatement
in, or any material omission from, any such information furnished by the Company
or any of its agents or advisors to Chardan.  All non-public
information concerning the Company which is given to Chardan in connection with
this engagement will be used solely in the course of the performance of
Chardan’s services hereunder and will be treated confidentially by
Chardan.  Chardan will not supply information to third parties that
has not been submitted to it by Company and pre-approved for the specific
purpose intended.  Except as otherwise required by law or regulating
authority, Chardan shall indemnify Company for any damages or liabilities
incurred by Company by reason of Chardan's failure to adhere to the provisions
of this agreement or otherwise follow Company's instructions and guidelines, and
the provisions of Annex A will apply.

      

      Section 6.    Indemnity.  To
the extent Chardan will be acting on behalf of the Company in connection with
its engagement hereunder and relies on information supplied by Company, and
fulfills its obligations properly under this Agreement, the Company and Chardan
have entered into a separate agreement dated the date hereof and attached hereto
as Annex A,
which provides, among other things, for the indemnification of Chardan by the
Company, and the indemnification of the Company by Chardan, in connection with
this engagement, and the terms of such agreement are incorporated by reference
into this agreement in their entirety and shall survive any termination or
expiration of this agreement.

      

      Section 7.    Waiver of Claims On
Trust Funds.  Chardan understands that most of  IAG’s assets
are held in a trust account for the benefit of IAG’s public shareholders and the
Chardan hereby agrees, notwithstanding any provision of this agreement
(including Annex A) to the contrary, to waive any right, interest or claim of
any kind that it may have in or to any monies held in such trust account and
agrees not to seek any payment of any indemnity specified in this agreement from
any monies held in such trust account.

      

      

      Section 8.    Term and Termination.  Chardan’s
engagement will commence on the date hereof and will continue until terminated
as provided below.  Either the Company or Chardan may terminate this
agreement at any time, with or without cause, by giving 30 days written notice
to the other party; provided, however, that no such termination will affect the
matters set out in this section or under the captions “Confidentiality,” “Use of
Information,” "Indemnity," “Certain Acknowledgments and Agreements” and
“Miscellaneous” or in the indemnification letter agreement.  Subject
to the extension provisions set forth in Section 2, if this engagement is not
terminated by notice as provided in the preceding sentence, then the engagement
shall terminate automatically on the earlier to occur of the termination or
abandonment of the Merger Transaction, any vote of the IAG shareholders that
would result in rejection of the Merger Transaction or September 5, 2009. It is
expressly agreed that following the expiration or termination of this agreement,
Chardan will continue to be entitled to receive fees, as described in the
“Compensation” section above that have accrued prior to such expiration or
termination but are unpaid, as well as reimbursement for expenses as
contemplated in the “Expenses” section above.  It is also expressly
agreed that Chardan’s initial efforts on the Company’s behalf are expected to be
material to the success of the Transaction and therefore, even if there is an
early termination of this engagement by the Company in accordance with the
second sentence of this Section 8 and, the closing of the Transaction occurs
prior to September 5, 2009, Chardan shall be entitled to its full fee as set forth
in the “Compensation” section herein.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        InterAmerican Acquisition Group, Inc.

        Page 5

      

       

      
 

      Section 9.    Certain Acknowledgments and
Agreements.  The parties hereto acknowledge that Chardan has
been retained solely as an advisor to the Company, and not as an agent of the
Company, and that the Company’s engagement of Chardan is as an independent
contractor and not in any fiduciary or other capacity.  Neither this
engagement, nor the delivery of any advice in connection with this engagement,
is intended to confer rights upon any persons not a party hereto.

      

      It is expressly understood and agreed
that Chardan is not undertaking to provide any advice relating to legal,
regulatory, accounting or tax matters.  In furtherance thereof, the
Company acknowledges and agrees that (a) it and its affiliates have relied and
will continue to rely on the advice of its own legal, tax and accounting
advisors for all matters relating to the Transaction, and all other matters and
(b) neither it, nor any of its affiliates, has received, or has relied upon, the
advice of Chardan or any of its affiliates regarding matters of law, taxation or
accounting.

      

      Section 10.    No Finders or Other
Brokers.  The Company represents that this agreement does not
conflict with any other finder or broker agreement entered into by Company, and
that if another person or entity is entitled to payment by Company of a finder’s
fee or any type of brokerage commission in connection with any Transactions
contemplated by this Agreement as a result of any agreement or understanding
with the Company, this will not reduce Company’s obligations to Chardan
hereunder.  Chardan likewise represents that to the extent it has
incurred any broker or finder’s fee obligation, e.g., for a third party’s
assistance to Chardan, such obligation will be and remain Chardan’s
responsibility.  

      

      Section 11.    Public
Announcements.  Chardan may not, without the Company's prior
written consent, place announcements or advertisements or otherwise publicize
Chardan’s role hereunder, and likewise the Company will not make such
announcements without obtaining Chardan's prior written consent of the
description of Chardan's role in the Transaction (except that the Company may file a Form 8-K or make
other disclosures as may be required by law, including, without limitation,
federal securities laws).

      .

      Section
12.    Governing
Law.  This agreement and all aspects of the relationship
created by this agreement shall be governed by the laws of the State of New
York, without regard to conflicts of law principles thereof, and will be binding
upon and inure to the benefit of the Company and Chardan and their respective
successors and assigns.  The Company and Chardan agree to waive trial
by jury in any action, proceeding or counterclaim brought by or on behalf of
either party with respect to any matter whatsoever relating to or arising out of
any actual or proposed Transaction or the engagement of or performance by
Chardan hereunder.  The Company and Chardan also hereby each submit to
the exclusive jurisdiction of the courts of the State of New York located in the
City and County of New York or in the United States District Court for the
Southern District of New York, and each of the parties hereto submits to the
jurisdiction of such courts in any proceeding arising out of or relating to this
agreement, agrees not to commence any suit, action or proceeding relating
thereto except in such courts, and waives, to the fullest extent permitted by
law, the right to move to dismiss or transfer any action brought in such court
on the basis of any objection to personal jurisdiction, venue or inconvenient
forum.

      

      Section
13.    Miscellaneous.  The
indemnification letter agreement attached hereto as Annex A is an
integral part of this agreement and the terms thereof are incorporated by
reference herein, and shall survive any termination, expiration or completion of
Chardan’s engagement hereunder.  Prior to entering into any agreement
or arrangement with respect to, or effecting, any merger, statutory exchange or
other business combination or proposed sale or exchange, dividend or other
distribution or liquidation of all or a significant portion of its assets in one
or a series of transactions or any significant recapitalization or
reclassification of its outstanding securities that does not directly or
indirectly provide for the assumption of the obligations of the Company set
forth herein, the Company will notify Chardan in

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        InterAmerican Acquisition Group, Inc.

        Page 6

      

       

       

       

       

       

      writing
thereof (if not previously so notified) and, if requested by Chardan, shall
arrange in connection therewith alternative means of providing for the
obligations of the Company set forth herein, including the assumption of such
obligations by another party, insurance, surety bonds or the creation of an
escrow, in each case in an amount and upon terms and conditions satisfactory to
Chardan.  This agreement (with its annex) shall constitute the entire
agreement between the parties hereto and shall be binding upon and inure to the
benefit of any successors, assigns, heirs and personal representatives of the
Company and Chardan.  This agreement may be executed via facsimile
transmission and may be executed in separate counterparts, each of which shall
be deemed to be an original and all of which together shall constitute a single
instrument, and this agreement may not be amended or modified except in
writing.

      

      (signature
page follows)

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        InterAmerican Acquisition Group, Inc.

        Page 7

      

       

       

      
 

      We are
delighted to accept this engagement and look forward to working with you on this
assignment.  Please confirm that the foregoing is in accordance with
your understanding by signing and returning to us the enclosed duplicate of this
agreement.

      

      Very
truly yours,

      

      

      CHARDAN
CAPITAL MARKETS, LLC

      

      

      By: /s/ Kerry
Propper       

         Kerry
Propper

         CEO

      

      

      

      Accepted
and agreed to as of the date set forth above:

      

      INTERAMERICAN
ACQUISITION GROUP, INC.

      

      

      By: /s/ William C.
Morro             

         William C. Morro

         Chief Executive
Officer

      

       

      

      Enclosure

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Page A-1

       

       

      ANNEX A – INDEMNIFICATION
AGREEMENT

      

      September
4, 2008

      

      

      

      This
Annex A is attached to and made a part of the agreement (the “Agreement”)
between InterAmerican Acquisition Group, Inc. (“Company” or “you”) and Chardan
Capital Markets LLC (“Chardan” or or “we”)

      

      In
connection with our assisting you with the matters identified in the Agreement,
you and we are entering into this indemnification agreement.

      

      It is
understood and agreed that in the event that Chardan or any of our officers,
directors, employees, agents, affiliates, partners or controlling persons, if
any (each of the foregoing, including Chardan sometimes referred to as a
“Chardan Indemnified Person” for the purpose of this paragraph) are named as
defendants in any action, claim, suit, proceeding or investigation brought by a
third party, related to, arising out of or in connection with our engagement or
any matter referred to in the engagement, as a result of your breach of your
obligations under the agreement to which this Annex A is attached, or so named
as co-defendants in an action against you solely by reason of acting as your
representative and undertaking activities as instructed by you, you will
indemnify each such Chardan Indemnified Person for damages and liabilities
incurred by them in connection with such action, including court costs and
reasonable legal fees, provided that you are first promptly notified by us of
such claim and are given the opportunity to join in the defense of such claim
with counsel of your choice. but this indemnity applies only if and to the
extent that any such loss, claim, damage, liability or expense is found by a
court of competent jurisdiction in a judgment which has become final in that it
is no longer subject to appeal or review and is not caused directly or
indirectly by the actions of such Chardan Indemnified Person.

      

      

      It is
understood and agreed that in the event that the Company or any of your
officers, directors, employees, agents, affiliates, partners or controlling
persons, if any (each of the foregoing, including the Company sometimes referred
to as a “Company Indemnified Person” for the purpose of this paragraph) are
named as defendants in any action, claim, suit, proceeding or investigation
brought by a third party, related to, arising out of or in connection with our
engagement or any matter referred to in the engagement, as a result of our
breach of our obligations under the agreement to which this Annex A is attached,
or so named as defendants or co-defendants in an action against you solely by
reason of our acting as your representative and undertaking activities in a
manner other than as instructed by you, we will indemnify each such Company
Indemnified Person for damages and liabilities incurred by them in connection
with such action, including court costs and reasonable legal fees, provided that
we are first promptly notified by you of such claim and are given the
opportunity join in the defense of such claim with counsel of our choice, but
this indemnity applies only if and to the extent that any such loss, claim,
damage, liability or expense is found by a court of competent jurisdiction in a
judgment which has become final in that it is no longer subject to appeal or
review and is not caused directly or indirectly by the actions of such Company
Indemnified Person.

      

      Chardan
Indemnified Persons and Company Indemnified Persons are sometimes referred to
interchangeably as "Indemnified Persons" below, except where the context must be
interpreted otherwise.

      

      If for
any reason the foregoing indemnification is held unenforceable or is
insufficient to hold an Indemnified Person harmless, then the indemnifying party
shall contribute to the loss, claim, damage, liability or expense for which such
indemnification is held unenforceable or is insufficient in such proportion as
is appropriate to reflect the relative benefits received, or sought to be
received, by you and your security holders on the one hand and the party
entitled to contribution on the other hand in the matters contemplated by our
engagement as well as the relative fault of yourselves and such party with
respect to such loss, claim, damage, liability or expense and any other relevant
equitable considerations.  The reimbursement, indemnity and
contribution obligations under this Agreement shall be in addition to any
liability which a party may otherwise have, shall not be limited by any rights
an indemnified person may otherwise have and shall be binding upon and inure to
the benefit of any successors, assigns, heirs and personal representatives of
indemnified persons.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
          InterAmerican Acquisition Group, Inc.

          Page A-2

        

      

       

       

      
 

      It is
further agreed that the indemnified persons are entitled to retain separate
counsel of their choice in connection with any of the matters in respect of
which indemnification, reimbursement or contribution may be sought under this
Agreement.  No waiver, amendment or other modification of this
agreement shall be effective unless in writing and signed by each party to be
bound thereby.  This agreement and any claim related directly or
indirectly to this agreement shall be governed and construed in accordance with
the laws of the State of New York, without regard to the conflicts of law
provisions thereof.  No such claim shall be commenced, prosecuted or
continued in any forum other than the courts of the State of New York located in
the City and County of New York or in the United States District Court for the
Southern District of New York and each of the parties hereto submits to the
jurisdiction of such courts.  We and you (on your own behalf and, to
the extent permitted by applicable law, on behalf of your security holders and
creditors) waive all right to trial by jury in any action, proceeding or
counterclaim, whether based upon contract, tort or otherwise, related to or
arising out of or in connection with our engagement.  The provisions
of this agreement shall apply to the engagement (including related activities
prior to the date hereof) and any modification thereof and shall remain in full
force and effect indefinitely, regardless of the completion or termination of
the engagement.  If any provision, covenant or restriction herein is
held by a court of competent jurisdiction to be invalid, void, unenforceable or
against public policy, then the court so holding shall at our or your request,
reform such provision to give the maximum permissible intent to the intentions
of the parties as set forth herein, and the court shall enforce such provision
as so reformed.  If, notwithstanding the foregoing, any provision,
covenant or restriction is held by a court of competent jurisdiction to be
invalid, void, unenforceable or against public policy, the remainder of the
provisions contained herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated.

      

      Chardan
understands that most of  IAG’s assets are held in a trust account for
the benefit of IAG’s public shareholders and the Chardan hereby agrees,
notwithstanding any provision of this Annex A to the contrary, to waive any
right, interest or claim of any kind that it may have in or to any monies held
in such trust account and agrees that neither Chardan nor any Chardan
Indemnified Person shall seek any payment of any indemnity specified in this
agreement from any monies held in such trust account.

      

      

      CHARDAN
CAPITAL MARKETS, LLC

       

      
        

        By: /s/ Kerry
Propper       

           Kerry
Propper

           CEO

        

         

         

        INTERAMERICAN
ACQUISITION GROUP, INC.

        

        

        By: /s/ William C.
Morro             

           William C. Morro

           Chief Executive
OfficerOTS Order to Cease and Desist with the Company dated September 5, 2008

Table of Contents

Exhibit 10.1

UNITED STATES OF AMERICA

Before the

OFFICE OF THRIFT SUPERVISION

                 
                 
                 
                 
                 
                 
                 

In the Matter of      )     Order No.:                 
WE-08-013                 
                 

DOWNEY FINANCIAL CORP.,      )     Effective Date:                 
September 5, 2008                 
                 

Newport Beach, California,

OTS Docket No. H-2408      )

                 
                 
                 
                 
                 
                 
                 
     )

ORDER TO CEASE AND DESIST

                 WHEREAS, Downey Financial Corp., Newport Beach, California, OTS Docket

No. H-2408 (Holding Company), by and through its Board of Directors (Board) has executed a Stipulation and Consent to Issuance of
Order to Cease and Desist (Stipulation); and

                 WHEREAS, the Holding Company, by executing the Stipulation, has consented and agreed to the issuance of this Order to Cease and
Desist (Order) by the Office of Thrift Supervision (OTS) pursuant to 12 U.S.C. § 1818(b); and

                 WHEREAS, pursuant to delegated authority, the OTS Regional Director for the West Region (Regional Director), is authorized to issue
Orders to Cease and Desist where a savings association holding company has consented to the issuance of an order.

NOW, THEREFORE, IT IS ORDERED that:

Dividends

1.           Effective immediately, the Holding Company shall neither accept nor request that Downey Savings and Loan Association, F.A.,
Newport Beach, California (OTS Docket No. 06189), a wholly owned savings association subsidiary (Association), make or pay any
dividends or other capital distributions, as that term is defined in 12 C.F.R. § 563.134, or commit to make or pay dividends or any
other capital distributions, without receiving the prior written approval of the Regional Director. The Holding Company’s written
request for such approval shall be submitted to the Regional Director at least forty-five (45) days prior to the anticipated date of
the proposed dividend payment or distribution of capital.

Management Changes

2.           Effective immediately, the Holding Company shall comply with the prior notification requirements for changes in directors and Senior
Executive Officers set forth in 12 C.F.R. Part 563, Subpart H, 12 C.F.R. §§ 563.550 through 563.590.

Employment Contracts and Compensation Arrangements

3.           Effective immediately, the Holding Company shall not enter into, renew, extend, or revise any contractual arrangement relating to
compensation or benefits for any Senior Executive Officer or director of the Holding Company, unless it first provides the OTS with
not less than thirty (30) days prior written notice of the proposed transaction. The notice to the OTS shall include a copy of the
proposed employment contract or compensation arrangement, or a detailed, written description of the compensation arrangement to be
offered to such officer or director, including all benefits and perquisites. The Board shall ensure that any contract, agreement, or
arrangement submitted to the OTS fully complies with the requirements of 12 C.F.R. Part 359, 12 C.F.R. §§ 563.39 and 563.161(b), and
12 C.F.R. Part 570 - Appendix A.

Severance and Indemnification Payments

4.           Effective immediately, the Holding Company shall not make any golden parachute payment or prohibited indemnification payment unless,
with respect to each such payment, the Holding Company has complied with the requirements of 12 C.F.R. Part 359 and, as to
indemnification payments, 12 C.F.R. § 545.121.

Debt Limitations

5.           Effective immediately, the Holding Company shall not incur, issue, renew or rollover any debt, increase any current lines of credit,
or guarantee the debt of any entity, without at least thirty (30) days prior written notice to and receipt of written non-objection
from the OTS. In the event no written objection is raised by the Regional Director during the thirty (30) day notice period, the
Holding Company may proceed with the transaction.

Association Order to Cease and Desist

6.           The Board shall ensure that the Association complies with all of the terms of its Order to Cease and Desist entered into with the
OTS, dated September 5, 2008.

Effective Date, Incorporation of Stipulation

7.           This Order is effective on the Effective Date as shown on the first page. The Stipulation is made a part hereof and is incorporated
herein by this reference.

Duration

8.           This Order shall remain in effect until terminated, modified or suspended, by written notice of such action by the OTS, acting by and
through its authorized representatives.

Time Calculations

9.           Calculation of time limitations for compliance with the terms of this Order run from the Effective Date of this Order and shall be
based on calendar days, unless otherwise noted.

10.           The Regional Director may extend any of the deadlines set forth in the provisions of this Order upon written request by the Holding
Company that includes reasons in support of any such extension. Any OTS extension shall be made in writing.

Submissions and Notices

11.           All submissions, including progress reports, to the OTS that are required by or contemplated by this Order shall be submitted within
the specified timeframes.

12.           Except as otherwise provided herein, all submissions, requests, communications, consents or other documents relating to this Order
shall be in writing and sent by first class U.S mail (or by reputable overnight carrier, electronic facsimile transmission or hand
delivery by messenger) addressed as follows:

                    
                    Darrel Dochow, Regional Director

                    
                    West Region

                    
                    Office of Thrift Supervision

                    
                    2001 Junipero Serra Blvd.

                    
                    Daly City, CA 94014-3897

                    
                    Timothy J. Lane, Assistant Director

                    
                    West Region

                    
                    Office of Thrift Supervision

                    
                    1551 N. Tustin Ave., Suite 1050

                    
                    Santa Ana, CA 92705

No Violations Authorized

13.           Nothing in this Order or the Stipulation shall be construed as allowing the Holding Company, its Board, officers or employees to
violate any law, rule, regulation

              IT IS SO ORDERED.

	 
	OFFICE OF THRIFT SUPERVISION

	 
	By:           /s/  DARREL W. DOCHOW            
DARREL W. DOCHOW
Regional Director, West Region

	 
	Date: See Effective Date on page 1

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