Document:

ex10_1.htm

Markerting Acquisition Corporation 8-K

 

 

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE AGREEMENT (the “Agreement”) is made and entered into as of December 7, 2012, by and among Halter Financial Investments, L.P. (“HFI”), a Texas limited partnership, Glenn A. Little (“Little”), The Halter Group, Inc., a Texas corporation formerly known and currently doing business as Halter Financial Group, (“HFG”, together with HFI and Little, each a “Seller” and collectively, the “Sellers”) and USA Zhimingde International Group Inc. (the “Buyer”).

W I T N E S S E T H:

WHEREAS, Sellers own, in the aggregate, 1,687,502 shares (the “Shares”) of common stock, par value $.001 per share (the “Common Stock”) of Marketing Acquisition Corporation, a Nevada corporation (the “Company”), which represents approximately 91% of all of the issued and outstanding Common Stock of the Company, with HFI owning 1,250,000 Shares, Little owning 416,668 Shares and HFG owning 20,834 Shares; and

WHEREAS, Sellers desire to sell, transfer and convey the Shares to Buyer and Buyer desires to buy such Shares on the terms and subject to the conditions set forth herein (the “Transaction”); and

NOW, THEREFORE, in consideration of the agreements and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

1.           Purchase Price, Closing, and Repurchase.

a.           In consideration for $275,000 (including a deposit payment in the amount of $27,500 (the “Deposit”) previously paid by Buyer to Sellers) (the “Purchase Price”), Sellers hereby sell, transfer, assign and convey to Buyer, and Buyer hereby acquires from Sellers, the Shares. It is agreed by both HFI and HFG that Little is entitled to receive fifty percent (50%) of the Purchase Price, or $137,500 at the Closing, as hereinafter defined.

        b.          Upon execution of this Agreement and payment of the Purchase Price (excluding the Deposit) by Buyer to Sellers, the Transaction shall be deemed closed (the “Closing”).  The date on which the Closing occurs is herein referred to as the “Closing Date”.

2.           Representations and Warranties of Sellers regarding the Shares and this Agreement.

a.           Sellers jointly and severally represent and warrant to Buyer that Sellers have good and valid title to the Shares, free and clear of all mortgages, pledges, liens, security interests, conditional sale agreements, charges, encumbrances and restrictions.

b.           Sellers jointly and severally represent and warrant to Buyer that the execution, delivery and performance by Sellers of this Agreement is within the Sellers’ legal right, power and capacity, and does not and will not result in the breach of any term or provision of, or constitute an event of default under, any provision of any agreement, judgment, injunction, order decree or other instrument to which any Seller is a party or by which any Seller or any of its properties are bound.

c.           Sellers jointly and severally represent and warrant to Buyer that the Shares are duly authorized, validly issued, fully paid and non-assessable and were not issued in violation of any applicable foreign, federal or state securities laws or the Company’s certificate of incorporation or bylaws.  The Company has not entered into any other agreements or commitments to issue any Common Stock or ratified any future split, combination or reclassification of the Common Stock.

  

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d.           HFI and HFG jointly and severally represent and warrant to Buyer that the Halter Financial Investments, GP, L.L.C., the General Partner of HFI and the sole director of HFG have authorized the execution and delivery of the Agreement hereby and have approved the transactions contemplated hereby on behalf of HFI and HFG.

 

3.           Representations and Warranties of HFI and HFG regarding the Company. HFI and HFG jointly and severally represent and warrant to Buyer that the following statements regarding the Company are true and accurate as of the date hereof:

a.           The Company is a corporation duly organized, validly existing, and in good standing under the laws of Nevada and has the corporate power and is duly qualified and in good standing under all applicable laws, regulations, ordinances, and orders of public authorities to carry on its business in each jurisdiction in which the business it is conducting makes such qualification necessary in all material respects as it is now being conducted.

b.           The Company’s authorized capitalization consists of 100,000,000 shares of Common Stock, of which 1,853,207 shares are issued and outstanding. All issued and outstanding shares of Common Stock are legally issued, fully paid, and non-assessable and not issued in violation of any preemptive or other rights of any person or entity.  There are no (i) outstanding options, warrants, puts, calls, convertible securities, preemptive or similar rights, (ii) bonds, debentures, notes or other indebtedness having general voting rights or that are convertible or exchangeable into securities having such rights, or (iii) subscriptions or other rights, agreements, arrangements, or commitments of any character, relating to the issued or unissued Common Stock of, or other equity interests in, the Company or obligating the Company to issue, transfer, deliver or sell any options or Common Stock of, or other equity interest in, the Company or securities convertible into or exchangeable for such shares or equity interests, or obligating the Company to grant, extend or enter into any such option, warrant, call, subscription or other right, agreement, arrangement or commitment for such equity interest.  There are no outstanding obligations of the Company to repurchase, redeem or otherwise acquire any Common Stock, capital stock of, or other equity interests in, the Company or to provide funds to make any investment (in the form of a loan, capital contribution or otherwise) in any other entity.

 

c.           There are not, as of the date hereof, and there will not be at the Closing Date any registration rights, and there is no voting trust, proxy, rights plan, anti-takeover plan or other agreement or understanding to which the Company is a party or by which it is bound with respect to any equity security of any class of the Company, and there are no agreements to which the Company is a party, or which the Company has knowledge of, which conflicts with this Agreement or the transactions contemplated herein or otherwise prohibits the consummation of the transactions contemplated hereunder.

 

d.            Except as set forth on the Company’s SEC Reports (hereinafter defined), the Company does not have any predecessor corporation(s) or subsidiaries, and does not own, beneficially or of record, any shares of any other entity.

 

  

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f.           The Company has filed all forms, reports, schedules, statements and other documents required to be filed or furnished to the SEC under the requirements of the Securities Act of 1933, as amended (the “Securities Act”), or the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), together with any amendments, restatements or supplements thereto. The reports, registration statements and definitive proxy statements filed by the Company with the SEC (the “SEC Reports”): (i) were prepared in all material respects in accordance with the requirements of the Securities Act and the Exchange Act, as the case may be, and the rules and regulations thereunder and (ii) did not at the time they were filed with the SEC (except to the extent that information contained in any SEC Report has been revised or superseded by a later filed SEC Report) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.  All certifications and statements of the Company required by (i) Rules 13a-14 or 15d-14 under the Exchange Act, or (ii) 18 U.S.C. §1350 (Section 906) of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) with respect to any SEC Report are each true and correct.

 

g.           Each set of financial statements (including, in each case, any related notes thereto) contained in the SEC Reports comply as to form in all material respects with the published rules and regulations of the SEC with respect thereto, were prepared in accordance with U.S. generally accepted accounting principles, applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, do not contain footnotes as permitted by Form 10-Q promulgated under the Exchange Act) and each in all material respects accurately reflects the Company’s books and records as of the times and for the periods referenced to therein and fairly presents in all material respects the financial position of the Company at the respective dates thereof and the results of its operations and cash flows for the periods indicated, except that the unaudited interim financial statements were or are subject to normal adjustments which were not or are not expected to have a material adverse effect.

 

h.           There are no liabilities of the Company or any of its subsidiaries of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or other­wise, other than liabilities adequately reflected or reserved in the Company’s financial statements contained in the SEC Reports.

 

i.           The Company has filed all state, federal or local income and/or franchise tax returns required to be filed by it from December 31, 2008 to the date hereof.  Each of such income tax returns reflects the taxes due for the period covered thereby, except for amounts which, in the aggregate, are immaterial. The Company has no liabilities with respect to the payment of any federal, state, county, local or other taxes (including any deficiencies, interest or penalties), except for taxes accrued but not yet due and payable.

 

j.           All of the books and records of the Company are complete and accurate in all material respects and have been maintained in the ordinary course and in accordance with applicable laws and standard industry practices with regard to the maintenance of such books and records.  The records, systems, controls, data and information of the Company and its subsidiaries are recorded, stored, maintained and operated under means (including any electronic, mechanical or photographic process, whether computerized or not) that are under the exclusive ownership and direct control of the Company or its accountants (including all means of access thereto and therefrom).

 

k.            None of the Company or any of its subsidiaries has: (i) commenced a voluntary case, or had entered against it a petition, for relief under the federal bankruptcy code or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors; (ii) caused, suffered or consented to the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non judicial proceedings, to hold, administer or liquidate all or substantially all of its property; or (iii) made an assignment for the benefit of creditors.

 

  

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l.           No broker, investment banker, or other person is entitled to any broker’s, finder’s or other similar fee or commission in connection with the Transaction based upon arrangements made by or on behalf of the Company or Sellers.

m.           None of the Company or any of its subsidiaries, nor any director, officer, agent, employee or other person acting on behalf of the Company or any of its subsidiaries has, in the course of its actions for, or on behalf of, the Company (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

 

n.           The Company is not, and is not an affiliate of, and immediately following the Closing will not have become, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

o.           All disclosure provided to Buyer regarding the Company, its business and the transactions contemplated hereby, furnished by or on behalf of HFI (including HFI’s and HFG’s representations and warranties set forth in this Agreement) are true and correct and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.

p.           Since the date of the most recent balance sheet included in the SEC Reports:

 

(a)           the Company has been operated in the ordinary course of business as was operated in the past with no extraordinary actions or transactions.

 

(b)           there has not been: (i) any material adverse change in the business, operations, properties, assets or condition of the Company or (ii) any damage, destruction or loss to the Company (whether or not covered by insurance) materially and adversely affecting the business, operations, properties, assets or condition of the Company;

 

c)           the Company has not: (i) amended its certificate of incorporation or bylaws except as required by this Agreement; (ii) declared or made, or agreed to declare or make any payment of dividends or distributions of any assets of any kind whatsoever to stockholders or purchased or redeemed, or agreed to purchase or redeem, any of its capital stock; (iii) waived any rights of value which in the aggregate are outside of the ordinary course of business or material considering the business of the Company; (iv) made any material change in its method of management, operation, or accounting; (v) entered into any transactions or agreements of any kind or nature outside the ordinary course of business; (vi) made any accrual or arrangement for or payment of bonuses or special compensation of any kind or any severance or  termination pay to any present or former officer or employee; (vii) borrowed any money from the Sellers or (viii) made any material change to a material contract by which the Company or any of  its assets is bound; (c) Since September 30, 2012, the Company has not: (i) granted or agreed to grant any options, warrants, or other rights for its stock, bonds, or other corporate securities calling for the issuance thereof; (ii) borrowed or agreed to borrow any funds or incurred, or become subject to, any material obligation or liability (absolute or contingent); (iii) paid or agreed to pay any material obligations or liabilities (absolute or contingent) other than current liabilities reflected in or shown on the most recent balance sheet and current liabilities incurred since that date in the ordinary course of business and professional and other fees and expenses in connection with the preparation of this Agreement and the consummation of the transactions contemplated hereby; (iv) sold or transferred, or agreed to sell or transfer any of its assets, properties or rights or canceled, or agreed to cancel, any debts or claims; or (v) issued, delivered or agreed to issue or deliver, any stock, bonds or other corporate securities including debentures (whether authorized and unissued or held as treasury stock), except in connection with this Agreement; and

 

  

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(d)           The Company did not become subject to any law or regulation which materially and adversely affects, or in the future, may adversely affect, the business, operations, properties, assets or condition of the Company as described in its financial statements.

 

k.           There are no actions, suits, orders, proceedings or investigations pending or, to the knowledge of the Company threatened by or against the Company or affecting the party or its properties, at law or in equity, before any court or other governmental authority or instrumentality, domestic or foreign, or before any arbitrator of any kind.  The Company has no 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 authority or instrumentality or any circumstance which after reasonable investigation would result in the discovery of such default.

 

l.           As of the date hereof, the Company is not a party to and has no obligation to perform (absolute or contingent) under any oral or written: (i) profit sharing, bonus, deferred compensation, stock option, severance pay, pension benefit or retirement plan, (ii) agreement, contract, commitment or indenture relating to the borrowing of money, (iii) guaranty of any obligation; (iv) collective bargaining agreement; or (v) agreement with any present or former officer or director of the Company.

 

m.           The Company is in compliance with all laws applicable to it and the conduct of its business as currently conducted.  The Company is not in conflict with, or in default or violation of, nor has it received any notice of any conflict with, or default or violation of, (A) any applicable law by which the Company or any of its property or assets is bound or affected, or (B) any agreement to which the Company was a party or by which the Company or any property, asset or right of the Company was bound or affected, except, in each case, for any such conflicts, defaults or violations that would not reasonably be expected to have a material adverse effect.

 

n.           The Common Stock is listed for quotation on the Over-The-Counter Bulletin Board under the symbol of MAQC. The Common Stock is eligible for the book-entry delivery and depository services provided by The Depository Trust Company.

 

o.           Except as disclosed in the SEC Reports, the Company has no employees, officers, directors, agents or consultants.  The Company maintains no employee benefit plans or programs of any kind or nature.

 

3.           Representations and Warranties of Buyer.

a.           The Shares are being acquired for Buyer’s own account, not as nominee or agent, for investment purposes only and not with a view to the resale or distribution of any part thereof in violation of the Securities Act of 1933, as amended (the “Securities Act”) or any other law, rule or regulation, foreign or domestic.  Buyer has no present intention of selling, granting any participation in, or otherwise distributing the same in violation of the Securities Act or any other law, rule or regulation, foreign or domestic.

b.           Buyer did not learn of the investment in the Shares as a result of any public advertising or general solicitation, and is not aware of any public advertisement or general solicitation in respect of the Company or its securities.

 

  

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c.           Buyer is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of this investment and to make an informed decision relating thereto.

d.           The execution, delivery and performance by Buyer of this Agreement is within the Buyer’s legal right, power and capacity, requires no action by or in respect of or filing with, any governmental body, agency or official and does not and will not contravene, or constitute a default under, any provision of applicable law or regulation or of any agreement, judgment, injunction, order decree or other instrument to which the Buyer is a party or by which any of his properties is bound.

4.           Conditions to Buyer’s Obligations.

a.           The representations and warranties made by Sellers in this Agreement were true when made and shall be true as of the Closing Date with the same force and effect as if such representations and warranties were made at and as of the Closing Date.

b.           All authorizations, approvals and permits required to be obtained from or made with any governmental entity in order to consummate the transactions contemplated by this Agreement and all consents from third persons that are required in connection with the transactions contemplated by this Agreement shall have been obtained or made.

c.           The obligations of Buyer to be performed hereunder shall be subject to the current Board of Directors of the Company tendering their resignations as directors after appointing Zhongquan Zou as a director of the Company, such actions of the Company to be effective after 10 days following the filing of an Information Statement on Form 14F-1 relating to the appointment of directors to the Board of Directors of the Company in connection with the consummation of the Transaction (the “14F-1”).

d.           All outstanding debts and liabilities of the Company shall be satisfied prior to the Closing. Buyer shall have been furnished with a certificate dated the Closing Date and signed by duly authorized executive officers of the Company, certifying as to the existing liabilities of the Company as of the Closing Date and that each of the representations and warranties of the Company contained in this Agreement are true and correct on and as of the Closing Date, a form of which is attached hereto as Exhibit A.

e.           Buyer shall have been furnished a certificate of good standing with respect to the Company and each of its subsidiaries issued by the appropriate governmental entity of the respective jurisdictions of incorporation.

5.           Miscellaneous.

a.           This Agreement embodies the entire agreement and understanding between Sellers and Buyer with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof.   No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement.

b.           The terms and provisions of this Agreement may be modified or amended only by written agreement executed by all parties hereto.

 

  

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c.           The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions.  No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar.  Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent.

d.           The rights and obligations under this Agreement may not be assigned by either party hereto without the prior written consent of the other party.

e.           This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the law of State of New York, without giving effect to the conflict of law principles thereof.

f.           This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

g.           The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

h.           This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute a single agreement.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

i.           The captions appearing in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope and intent of this Agreement or any of the provisions hereof.

j.           The 14F-1 shall be filed with the SEC and mailed to the stockholders of the Company.

k.           Any notice or communication required or permitted hereunder shall be in writing and either delivered personally, telegraphed or telecopied or sent by certified or registered mail, postage prepaid, and shall be deemed to be given, dated and received when so delivered personally, telegraphed or telecopied or, if mailed, five business days after the date of mailing to the following address or telecopy number, or to such other address or addresses as such person may subsequently designate by notice given hereunder:

 

(a) if to Sellers, to:

Halter Financial Investments GP, L.L.C.

12890 Hilltop Road

Argyle, Texas 76226

Glenn A. Little

P.O.Box 1271

Midland, Texas 79702

 

  

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 (b) if to Buyer, to:

225 Broadway Suite 910 

New York. NY10007

Tel: (212) 608 8858.

with a copy to:

 

Ellenoff Grossman & Schole, LLP

150 E. 42nd Street

New York, NY 10017

Attention:  Barry I. Grossman, Esq.

Fax: (212) 370-7889

l.           All of the representations, warranties and agreements in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Closing Date, for a period of one year from the Closing Date, except for those related to taxes, which shall survive as long as the applicable statute of limitations.

m.           Sellers will, jointly and severally, indemnify and hold Buyer harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that Buyer may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by Sellers in this Agreement or (b) any action instituted against Buyer by any stockholder of the Company with respect to any of the transactions contemplated by this Agreement (unless such action is based upon a breach of Buyer’s representations, warranties or covenants under this Agreement or any agreements or understandings Buyer may have with any such stockholder or any violations by Buyer of state or federal securities laws or any conduct by Buyer which constitutes fraud, gross negligence, willful misconduct or malfeasance).

n.           Notwithstanding anything to the contrary contained herein, in the event Buyer discovers and notifies Sellers of a material breach of any of the representations, warranties, covenants or agreements made by Sellers in this Agreement on or before the Closing Date, Buyer may rescind this Agreement and unwind the transactions contemplated hereby as if they never occurred.

o.           The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court of the United States located in the State of New York, this being in addition to any other remedy to which they are entitled at law or in equity.  In addition, each of the parties hereto (a) consents to submit itself to the personal jurisdiction of any federal or state court sitting in New York in the event any dispute between the parties hereto arises out of this Agreement solely in connection with such a suit between the parties, (b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (c) agrees that it will not bring any action relating to this Agreement in any court other than a Feral or state court sitting in New York.

 

  

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p.           Each party agrees that, should any court or other competent authority hold any provision of this Agreement or part hereof to be null, void or unenforce­able, or order any party to take any action inconsistent herewith or not to take an action consistent herewith or required hereby, the validity, legality and enforceability of the remaining provisions and obligations contained or set forth herein shall not in any way be affected or impaired thereby, unless the foregoing inconsistent action or the failure to take an action constitutes a material breach of this Agreement or makes the Agreement impossible to perform in which case this Agreement shall terminate.  Except as otherwise contemplated by this Agreement, to the extent that a party hereto took an action inconsistent herewith or failed to take action consistent herewith or required hereby pursuant to an order or judgment of a court or other competent authority, such party shall not incur any liability or obligation unless such party breached its obligations under this Agreement or did not in good faith seek to resist or object to the imposition or entering of such order or judgment.

 

[Remainder of Page Intentionally Left Blank]

 

  

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IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement the date and year first above written.

 

	  	  	
Sellers:

	 	 	 
	  	  	
Halter Financial Investments, L.P. 

	  	  	
By:

	
/s/ Timothy P. Halter

	  	  	
Name:

	Timothy P. Halter
	  	  	
Title:

	Chairman, Halter Financial Investments GP,
	 	 	 	L.L.C., its General Partner

	  	  	

Halter Financial Group, Inc.

	 	 	 
	  	  	
By:

	
/s/ Timothy P. Halter

	  	  	
Name:

	Timothy P. Halter
	  	  	
Title:

	President
	 	 	 	 

	  	  	

Glenn A. Little

	 	 	 
	 	 	 /s/ Glenn A. Little
	 	 	 	 

	  	  	

Buyer:

	 	 	 
	  	  	

USA Zhimingde International Group Inc.. 

	  	  	
By:

	
/s/ Zhongquan Zou

	  	  	
Name:

	Zhongquan Zou
	  	  	
Title:

	Director
	 	 	 	 

 

 10ex10.13

 

 CONTRIBUTION AND ASSIGNMENT AGREEMENT
 

 This Contribution and Assignment Agreement (this "Agreement") is made this 30th day of November, 2012, by and between Steele Resources Incorporated ("SRI"), a Nevada corporation having its principal place of business in Cameron Park, California, acting herein by its parent corporation, Steele Resources Corporation ("SRC") which is represented herein by the unanimous action of its Board of Directors as evidenced by the signatures of the individual Board Members set forth below (being all the Directors comprising the Board) and Shooting Star Mining Company, LLC ("Shooting Star"), a Texas limited liability company having its principal place of business at 4099 McEwen Road, Suite 150, Dallas, Texas 75244-5053. SRI, SRC and Shooting Star are referred to herein individually as a "Party" and collectively as the "Parties."
 

 RECITALS
 

 A. On April 20, 2012, Steele Resources Incorporated, a Nevada corporation ("SRI"), entered into a purchase agreement (the "Purchase Agreement") with Billali Mine, LLC ("Billali") providing that SRI would purchase, among other consideration, for Six Hundred Thousand Dollars ($600,000) and One Thousand Eight Hundred (1,800) American Eagle one ounce gold coins, the exclusive use and access to the Billali Mine (the "Mine"), as described in the Purchase Agreement, along with all of Billa Ii's rights, titles, interests and privileges in and to the mineral and natural resource deposits beneath the surface of, within, or that may be produced from the Mine (collectively referred to herein as "Mining Rights"). The Purchase Agreement commenced on April 20, 2012 and such Mining Rights continue through April 19, 2014. At the conclusion of the term of the Purchase Agreement, provided both SRI and Billali perform all obligations as required by Purchase Agreement, SRI would gain full right and title ownership to the Mine and all Mining Rights thereto. The Purchase Agreement is attached to this Agreement as Exhibit A and fully incorporated herein as if expressly included within this Agreement.
 

 B. At the time of the execution of the Purchase Agreement, neither SRI nor its parent company, Steele Resources Corporation, had sufficient cash on hand to fund the required payment obligations owed to Billali under the Purchase Agreement. Thus, SRI borrowed One Hundred Thousand Dollars ($100,000) from Jeffrey Benison ("Benison"), an individual having his principal place of business in Valley Stream, New York, to satisfy the down payment due to Billali on April 20, 2012 pursuant to the Purchase Agreement.
 

 C. Further pursuant to the Purchase Agreement, SRI owed an additional Five Hundred Thousand Dollars ($500,000) to Billali on June 4, 2012. Unable to fund this payment to Billali, SRI executed an Assignment Agreement with Benison whereby Benison provided the additional Five Hundred Thousand Dollars ($500,000) owed by SRI to Billali in exchange for the Mining Rights as granted to SRI by the Purchase Agreement, along with all other rights, titles, interests and privileges granted to SRI under the Purchase Agreement (the "Benison Assignment"). As a result of the Benison Assignment, Benison would assume all obligations of SRI under the Purchase Agreement, including, but not limited to, development of the Mine. As part of the Benison Assignment, SRI received a twenty percent (20%) economic interest in the Mine. Such economic interest was a "qualified carried interest" (as defined in the Benison Assignment) whereby SRI would receive twenty percent of the net operating profits of the
 

 	 	
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 development of the Mine. Benison paid to Billali the payment of Five Hundred Thousand Dollars ($500,000) owed under the Purchase Agreement, but lacks the ability to satisfy the remaining financial obligations due to Billali under the Purchase Agreement, including the payment of the American Eagle gold coins, and the financial requirements of developing the Mine. The Benison Assignment is attached hereto as Exhibit B and fully incorporated herein to the extent that it does not conflict with this Agreement.
 

 D. In exchange for Shooting Star's assumption of all financial obligations owed to Billali under the Purchase Agreement, Benison now wishes to assign to Shooting Star the Mining Rights under the Purchase Agreement, together with all other rights, titles, interests and privileges under the Purchase Agreement that were assigned to Benison by SRI under the Benison Assignment (the "Shooting Star Assignment").
 

 E. As a result of the Shooting Star Assignment, Shooting Star has, contemporaneously with this Agreement, executed an amendment to the Purchase Agreement with BiIIali ("Shooting Star Amendment"). Such Shooting Star Amendment evidences and confirms the Shooting Star Assignment and Shooting Star's assumption of all obligations, financial or otherwise, owed to BiIIali under the Purchase Agreement.
 

 F. To date, Billali has received and accepted separate payments of One Hundred Thousand Dollars ($100,000) and Five Hundred Thousand Dollars ($500,000) in partial satisfaction of the purchase price specified under the Purchase Agreement. These payments, as evidenced and confirmed by the Shooting Star Amendment, inure to the benefit of Shooting Star as if Shooting Star had paid them directly to BiIIali under the Purchase Agreement.
 

 G. Pursuant to the Purchase Agreement and the Shooting Star Amendment, Shooting Star assumes the remaining financial obligations owed to Billali, including payment of One Hundred Fifty Thousand Dollars ($150,000) and delivery of One Thousand Eight Hundred (1,800) American Eagle gold coins. Upon payment of these financial obligations and expiration of the Purchase Agreement, Shooting Star shall take full right and title of ownership of the Mine and all Mining Rights belonging thereto.
 

 H. As a result of the Shooting Star Assignment, SRI now wishes to assign its twenty percent (20%) economic interest in the Mine to Shooting Star, thus extinguishing such economic interest, in exchange for a twenty percent (20%) membership interest in Shooting Star.
 

 NOW, THEREFORE, in consideration of the premises set forth herein and for other good and valuable consideration, the Parties agree as follows:
 

 1. Definitions. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Purchase Agreement or any other document related to the Mine.
 

 2. Contribution. SRI hereby assigns and transfers to Shooting Star SRI's twenty percent (20%) economic interest in the Mine received from Benison as a result of the Benison
 

 	 	
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 Assignment. With the assignment of such economic interest, the economic interest is hereby extinguished.
 

 3. Issuance of Membership Interest. As consideration for this Agreement, Shooting Star agrees to grant to SRI a twenty percent (20%) membership interest in Shooting Star. As a result of this Agreement and other documents executed contemporaneously herewith, Shooting Star shall issue One Thousand (1,000) membership units, with the result that ThinkLinking LLC shall own 220 membership units, or twenty-two percent (22%) ownership in Shooting Star, SRI shall own 200 membership units, or twenty percent (20%) ownership in Shooting Star, Inflated Hedged Assets, LLC shall own 280 membership units, or twenty-eight percent (28%) ownership in Shooting Star and Benison shall own 300 membership units, or thirty percent (30%) ownership in Shooting Star.
 

 4. Shooting Star Responsibilities. Pursuant to the Operating Agreement of Shooting Star, executed by the members of Shooting Star contemporaneously with this Agreement, Shooting Star shall, in its sole discretion and judgment, coordinate and manage any and all exploration, development and production of the Mine and activities related thereto, including executing any and all necessary contracts and agreements.
 

 Furthermore, it is expressly understood and agreed that Shooting Star's provision of additional capital to develop the Mine is a "best efforts" undertaking. In no event shall Shooting Star have or incur any liability whatsoever owing to SRI or any other member of Shooting Star should Shooting Star, in its sole exercise of discretion and prudent investment judgment, determine that additional development capital cannot or should not be arranged or committed to develop the Mine.
 

 Shooting Star agrees to enter into a Mine contract with White Pine Mining LLC ("White Pine") on or after the date of this Agreement. The contract with White Pine (the "Mine Contract") shall be in substantially the same form and contract as the sample contract attached hereto as Exhibit C; provided, however, Shooting Star reserves the right to amend and vary the terms, conditions and provisions of the Mine Contract as provided or appropriate under circumstances arising hereafter with respect to the development of the Mine subject to the concurrence of White Pine as the mining contractor.
 

 5. Representations and Warranties. Each Party represents and warrants to the other Party that:
 

 5.1 The warranting Party has full power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement.
 

 5.2 The execution, delivery and performance by the warranting Party of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized.
 

 5.3 This Agreement constitutes the valid and legally binding obligations of the warranting Party, enforceable against such Party in accordance with its
 

 	 	
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 terms and conditions, subject, however, to the effects of bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and together, principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
 

 6. Indemnification.
 

 6.1 Each Party agrees to indemnify the other and such other Party's officers, directors, employees, stockholders, members, agents, and affiliates (the "Indemnitees") from and against any actions, suits, proceedings, hearings, investigations, charges, complaints, claims, demands, Injunctions, judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid in settlement, liabilities, obligations, taxes, liens, losses, expenses and fees, including court costs and reasonable attorneys' fees and expenses, the Indemnitees may suffer through and after the date of the claim for indemnification resulting from, arising out of, relating to, in the nature of, or caused by any breach by the indemnifying Party, as the case may be, of any representation, warranty or covenant contained in this Agreement.
 

 6.2 The above indemnification provisions are in addition to, and not in derogation of, any statutory, equitable or common law remedy (including without limitation any such remedy arising under environmental, health and safety requirements) either Party may have with respect to the other or the transactions contemplated by this Agreement.
 

 7. Safe Harbor Statement. SRI understands, acknowledges, and agrees that all predictions, projections, results, technical studies and/or all other reports concerning the Mine, economic perfonnance and/or Shooting Star's plans and objectives for management and development of the Mine constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21 E of the Securities Exchange Act of 1934, as amended, and Section 27 A of the Securities Act of 1933, as amended that involve risks and uncertainties. Although it is believed that the expectation reflected in such forward-looking statements are reasonable, the forward-looking statements and financial projections contained in various documents related to Shooting Star and the development of the Mine are subject to risks and uncertainties that could cause actual results to differ from those projected. Investors, including but not limited to SRI, are cautioned that any forward-looking statements and projections are not guarantees of future performance and that actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those reflected in forward-looking statements include, but are not limited to, risks and uncertainties regarding the actual precious metals mineralization of the Mine, fluctuations in precious metals market prices, and inflationary trends occurring with respect to costs associated with mine development and ore extraction operations.
 

 8. Miscellaneous.
 

 

 	 	
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 8.1 This Agreement (along with other agreements and ancillary documents referenced herein), embodies the entire agreement and understanding of the Parties with respect to the matters contemplated by this Agreement, and supersedes all prior agreements and understandings between or among the Parties with respect to such matters.
 

 8.2 No amendment of any provision of this Agreement will be valid unless the same is in writing and signed by the Parties.
 

 8.3 This Agreement has been negotiated under and will be governed by and construed in accordance with the domestic laws of the State of Texas without giving effect to any choice or conflict of law provision or rule. All claims and controversies arising under or in connection with this Agreement shall be determined in the state or federal courts of Dallas County, Texas.
 

 8.4 This Agreement may be executed in one or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument, and by facsimile.
 

 8.5 Any term or provision of this Agreement that is held by a court of competent jurisdiction to be invalid or unenforceable will not affect the validity or enforceability of the remaining terms and provisions of this Agreement or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.
 

 8.6 Each of the Parties acknowledges and agrees that the other Party would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached. Accordingly, each of the Parties agrees that the other Party is entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement in any action instituted, in addition to any other remedy to which it may be entitled, at law or in equity.
 

 8.7 Any notice, offer, request, demand, claim or other communication provided for by this Agreement must be in writing and will be deemed given or delivered when delivered by hand, transmitted by facsimile or three days after the day when deposited in the United States mail, certified or registered, return receipt requested, postage prepaid and properly addressed to the intended recipient as set forth below:
 

 If to SRI:
 

 Steele Resources Incorporated
 3081 Alhambra Drive, Suite 208
 Cameron Park, California 95682
 

 

 	 	
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 If to Shooting Star:
 

 Shooting Star Mining Company, LLC
 4099 McEwen Road, Suite 150
 Dallas, Texas 75244-5053
 

 Any Party may send any notice, request, demand, claim or other communication to the intended recipient at the address set forth above using any other means, but not such notice, request, demand, claim or other communication will be deemed to have been duly given unless and until it actually is received by the intended recipient.
 

 8.8 The Parties each acknowledge and agree that they have had the opportunity to obtain independent counsel of their own choice in the drafting and negotiation of this Agreement and that, accordingly, no rule of construction against the drafter shall apply in connection herewith.
 

 8.9 All representations and warranties and agreements hereunder shall survive execution of this Agreement and transactions contemplated hereby.
 

 8.10 This Agreement shall be binding upon and inure to the benefit of the Parties hereto and to their respective heirs, legal representatives, successors and assigns.
 

 

 	 	 	
	 SRI:
	  
	 Shooting Star:

	  
	  
	  

	 Steele Resources Incorporated, acting
	  
	 Shooting Star Mining Company, LLC

	 through the Board of Directors of its
	  
	  

	 parent corporation, Steele Resources
	  
	  

	 Corporation
	  
	  

	  
	  
	  

	 By: /s/ Peter Kristensen
	  
	 By: /s/ Robert E. Byerley, Jr.

	 Peter Kristensen, Director
	  
	 Robert E. Byerley, Jr., Manager

	  
	  
	  

	 By: /s/ Mark Livingston
	  
	  

	 Mark Livingston, Director
	  
	  

 

 

 

 

 

 	 	
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