Document:

form8k053008ex10-16.htm

    

     

    PROPERTY OPTION
AGREEMENT

     

     

    THIS
AGREEMENT made and entered into as of the 30th day of June, 2004.

     

    BETWEEN:

     

    MinQuest Inc., a company
having a mailing address at 4235 Christy Way, Reno,Nevada 89509, U.S.A
;

     

    (herein
called the “Optionor “)

     

    OF THE
FIRST PART

     

    AND:

    American Goldfields Inc., a
company having an office at

    #200 –
4170 Still Creek Dr, Burnaby, B.C. Canada, V5C 6C6;

     

    

     

    (herein
called the “Optionee “)

     

    OF THE
SECOND PART

     

    

     

    WHEREAS
the Optionor has represented that it is the sole recorded and beneficial owner
in and to the Imperial Property (the “Property”) described in Schedule “A”
attached hereto;

     

    AND
WHEREAS the Optionor, subject to the Net Smelter Royalty reserved to the
Optionor, now wishes to grant to the Optionee the exclusive right and option to
acquire an undivided 100% right, title and interest in and to the Property on
the terms and conditions hereinafter set forth;

     

    NOW
THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the premises, the
mutual covenants herein set forth and the sum of One Dollar ($1.00) of lawful
money of U.S. currency now paid by the Optionee to the Optionor (the receipt
whereof is hereby acknowledged), the Parties hereto do hereby mutually covenant
and agree as follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              1.

            	
              Definitions

            

    

     

    The following words, phrases and
expressions shall have the following meanings:

     

    
      	
               
      

            	
              (a)

            	
              “After
      Acquired Properties” means any and all mineral interests staked, located,
      granted or acquired by or on behalf of either of the parties hereto during
      the currency of this Agreement which are located, in whole or in part,
      within one mile of the perimeter of the
  Property;

            

    

     

    
      	
               
      

            	
              (b)

            	
              “Work
      Commitment” includes all direct or indirect expenses [net of government
      incentives and net of payments to the Optionor pursuant to paragraph 4
      hereof] of or incidental to Mining Operations.  The certificate
      of the Controller or other financial officer of the Optionor, together
      with a statement of expenditures in reasonable detail shall be prima facie
      evidence of such expenditures.  In the event the commitment is
      not met on any year, the balance will be due in cash and or free trading
      stock paid to the Optionor.  Any and all excess amounts expended
      in one year may offset commitments to future
  commitments;

            

    

     

    
      	
               
      

            	
              (c)

            	
              “Facilities”
      means all mines and plants, including without limitation, all pits,
      shafts, adits, haulageways, raises and other underground workings, and all
      buildings, plants, facilities, and other structures, fixtures, and
      improvements, and all other property, whether fixed or moveable, as the
      same may exist at any time in, or on the Property and relating to the
      operator of the Property as a mine or outside the Property if for the
      exclusive benefit of the Property
only.

            

    

     

    
      	
               
      

            	
              (d)

            	
              “Force
      Majeure” means an event beyond the reasonable control of the Optionee that
      prevents or delays it from conducting the activities contemplated by this
      Agreement other than the making of payments referred to in Section 4 herein.  Such events shall include
      but not be limited to acts of God, war, insurrection, and inclement
      weather conditions.  Any action or inaction of governmental
      agencies, inability to obtain any environmental, operating or other
      permits or approvals, authorizations or consents within 18 months of
      application assuming continual persistance by the Optionee shall also
      constitute grounds for Force
Majeure;

            

    

     

    
      	
               
      

            	
              (e)

            	
              “Mineral
      Products” means the commercial end products derived from operating the
      Property as a mine;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (f)

            	
              “Mining
      Operations” includes:

            

    

     

    
      	
               
      

            	
              (i)

            	
              every
      kind of work done on or with respect to the Property by or under the
      direction of the Optionee during the Option Period or pursuant to an
      approved Work Program except expansion of the property boundaries;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              without
      limiting the generality of the foregoing, includes all work capable of
      receiving assessment credits pursuant to The Mines and Minerals
      Act of Nevada and the work of assessment, geophysical, geochemical
      and geological surveys, studies and mapping, investigating, drilling,
      designing, examining equipping, improving, surveying, shaft sinking,
      raising, cross-cutting and drifting, searching for, digging, trucking,
      sampling, working and procuring minerals, ores and metals, in surveying
      and bringing any mineral claims to lease or patent, in doing all other
      work usually considered to be prospecting, exploration, development, a
      feasibility study, mining work, milling, concentration, bonification or
      ores and concentrates, as well as the separation and extraction of mineral
      products;

            

    

     

    
      	
               
      

            	
              (g)

            	
              “Net
      Smelter Royalty” means that Net Smelter Royalty as defined in Schedule “B”
      attached hereto (“NSR”);

            

    

     

    
      	
               
      

            	
              (h)

            	
              “Option”
      means the option granted by the Optionor to the Optionee to acquire,
      subject to the NSR reserved to the Optionor, an undivided 100% right,
      title and interest in and to the Property as more particularly set forth
      in Section 4.

            

    

     

    
      	
               
      

            	
              (i)

            	
              “Option
      Period” means the period from the date hereof to the date at which the
      Optionee has performed its obligations to acquire its 100% interest in the
      Property as set out in Section 4 hereof,
      which ever shall be the lesser
period;

            

    

     

    
      	
               
      

            	
              (j)

            	
              “Property”
      means the mineral claims described in Schedule
  “A”;

            

    

     

    
      	
               
      

            	
              (k)

            	
              “Work
      Program” means, a program of work reasonably acceptable to both parties in
      respect of a particular Property, contained in a written document setting
      out in reasonable detail:

            

    

     

    
      	
               
      

            	
              (i)

            	
              an
      outline of the Mining Operations proposed to be undertaken and conducted
      on the Property, specifically stating the period of time during which the
      work contemplated by the proposed program is to be done and
      performed;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      estimated cost of such Mining Operations including a proposed budget
      providing for estimated monthly cash requirements in advance and giving
      reasonable details;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      total estimated cash costs shall be put in escrow each month to cover
      expenses of Optionor, including but not restricted to cost of initial
      expansion of claim position by location and filing at an estimated cost of
      US$5,000 per year: and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      identity and credentials of the person or persons undertaking the Mining
      Operations so proposed if not the
Optionor.

            

    

     

    reasonably
acceptable to both parties hereto.

     

    
      	
              2.

            	
              Headings

            

    

     

    Any heading, caption or index hereto
shall not be used in any way in construing or interpreting any provision
hereof.

     

    
      	
              3.

            	
              Singular,
      Plural

            

    

     

    Whenever the singular or masculine or
neuter is used in this Agreement, the same shall be construed as meaning plural
or feminine or body politic or corporate or vice versa, as the context so
requires.

     

    
      	
              4.

            	
              Option

            

    

     

    The Optionor hereby grants to the
Optionee the sole exclusive right and option (the “Option”) to earn a 100%
interest in the Property exercisable as follows:

     

    
      	
               
      

            	
              (a)

            	
              the
      Optionee paying the sum of $60,000 US to the Optionor by way of cash upon
      signing.

            

    

     

    
      	
               
      

            	
              (b)

            	
              on
      or before July 1, 2005:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Optionee makes a work commitment of $75,000 on the
    Property;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              and
      the Optionee paying $20,000 to the
Optionor;

            

    

     

    
      	
               
      

            	
              (c)

            	
              on
      or before July 1, 2006:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Optionee makes a work commitment of $100,000 on the Property in addition
      to the expenditure referred to in clauses  (b)(i)
      hereof;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              and
      the Optionee paying $20,000 to the
Optionor;

            

    

     

    
      	
               
      

            	
              (d)

            	
              on
      or before July 1, 2007:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Optionee makes a work commitment of $100,000 on the Property in addition
      to the expenditure referred to in clauses  (b)(i) and (c)(i)
      hereof;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              and
      the Optionee paying $20,000 to the
Optionor;

            

    

     

    
      	
               
      

            	
              (e)

            	
              on
      or before  July 1, 2008

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Optionee makes a work commitment of $100,000 on the Property in
      addition  to the expenditures referred to in clauses (b)(i),
      (c)(i) and  (d)(i)

            

    

     

    
      	
               
      

            	
              (ii)

            	
              and
      the Optionee paying $20,000 to the
Optionor;

            

    

     

    (f)             on
or before July 1 ,2009

    
      	
               
      

            	
              (i)

            	
              the
      Optionee makes a work commitment of  $125,000 on the Property in
      addition  to the expenditures referred to in clauses
      (b)(i),(c)(i),(d)(i) and (e)(i).

            

    

    

    following
which the Optionee shall be deemed to have exercised the Option (the “Exercise
Date”) and shall be entitled to an undivided 100% right, title and interest in
and to the Property with the full right and authority to equip the Property for
production and operate the Property as a mine subject to the rights of the
Optionor to receive the  NSR.

     

    
      	
              5.

            	
              Transfer of
      Title

            

    

     

    Upon completion of all work commitments
and property payments by Optionee the Optionor will deliver or cause to be
delivered to the Optionee’s solicitors a duly executed transfer of Property in
favour of the Optionee (the “Optionee Transfer”) to be held in trust by said
solicitors subject to the terms and conditions of this Agreement.  The
Optionee shall be entitled to record the Optionee Transfer with the appropriate
government offices to effect transfer of legal title of the Property into its
own name upon the full and complete exercise of the Option by the Optionee. In
the event the Optionee Transfer is recorded the Optionor shall be entitled to
record notice of its NSR interest.

     

    
      	
              6.

            	
              Mining Operations
      during Option

            

    

     

    During the Option Period, the Optionor
shall conduct the Mining Operations on the Property for and on behalf of the
Optionee and shall invoice the Optionee in respect of the expenses of such
Mining Operations from time to time and the prompt payment of such invoices when
due shall constitute Expenditures by the Optionee as contemplated under Section
4 hereof.

     

    
      	
              7.

            	
              Assignment

            

    

     

    During the Option Term, no party shall
sell, transfer, assign, mortgage, pledge or otherwise encumber its interest in
this Agreement or its right or interest in the Property without the consent of
the other parties, such consent to be not unreasonably withheld, provided that
any party shall be permitted to assign this Agreement to an “affiliate”, as that
term is defined in The
Company Act
(Nevada).  It will be a condition of any assignment under this
Agreement that such assignee shall agree in writing to be bound by the terms of
this Agreement applicable to the assignor.  In the event Optionee
completes all obligations to acquire a 100% interest in the Property the
Optionor will have the right to transfer, assign an or sell the NSR on the open
market.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              8.

            	
              Termination

            

    

     

    This Agreement shall forthwith
terminate in circumstances where:

     

    
      	
               
      

            	
              (a)

            	
              the
      Optionee fails to make the payments for or carry out the expenditures
      required in Section 4 of this Agreement on or
      before the dates set out herein provided that, in circumstances where the
      Optionee is prevented from carrying out any of the expenditures
      contemplated in Section 4 prior to the dates
      set out therein due to Force Majeure, then the Optionee shall forthwith
      give the Optionor written notice of the commencement and termination of
      the said Force Majeure and thereafter such dates shall be deemed to have
      been extended by the period of time during which the Force Majeure remains
      in effect; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Optionee gives notice of termination to the Optionor which it shall be at
      liberty to do at any time after the execution of this Agreement. If and
      when the Optionee elects to terminate this agreement, at such time the
      property will be returned to the Optionor with at least 1 year assessment
      requirement credit.

            

    

     

    
      	
              9.

            	
              Representations,
      Warranties and Covenants of the
Optionor

            

    

     

    The Optionor represents, warrants and
covenants to and with the Optionee as follows:

     

    
      	
               
      

            	
              (a)

            	
              the
      Optionor is a company duly organized validly existing and in good standing
      under the laws of Nevada;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Optionor has full power and authority to carry on its business and to
      enter into this Agreement and any agreement or instrument referred to or
      contemplated by this Agreement;

            

    

     

    
      	
               
      

            	
              (c)

            	
              neither
      the execution and delivery of this Agreement, nor any of the agreements
      referred to herein or contemplated hereby, nor the consummation of the
      transactions hereby contemplated conflict with, result in the breach of or
      accelerate the performance required by, any agreement to which it is a
      party;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      execution and delivery of this Agreement and the agreements contemplated
      hereby will not violate or result in the breach of the laws of any
      jurisdiction applicable or pertaining thereto or of its constating
      documents;

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      Agreement constitutes a legal, valid and binding obligation of the
      Optionor;

            

    

     

    
      	
               
      

            	
              (f)

            	
              the
      Property is accurately described in Schedule “A”, is in good standing
      under the laws of the jurisdiction in which it is located and is free and
      clear of all liens, charges and
encumbrances;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (g)

            	
              the
      Optionor is the sole recorded and beneficial owner of the Property and has
      the exclusive right to enter into this Agreement and all necessary
      authority to transfer its interest in the Property in accordance with the
      terms of this Agreement;

            

    

     

    
      	
               
      

            	
              (h)

            	
              no
      person, firm or corporation has any proprietary or possessory interest in
      the Property other than the Optionor, and no person, firm or corporation
      is entitled to any royalty or other payment in the nature of rent or
      royalty on any minerals, ores, metals or concentrates or any other such
      products removed from the Property other than the government of the state
      of Nevada pursuant to statute;

            

    

     

    
      	
               
      

            	
              (i)

            	
              upon
      request by the Optionee, the Optionor shall deliver or cause to be
      delivered to the Optionee copies of all available maps and other documents
      and data in its possession respecting the Property;
  and

            

    

     

    
      	
               
      

            	
              (j)

            	
              subject
      to performance by the Optionee of its obligations under Section 4, during
      the Option Period, the Optionor will keep the Property in good standing,
      free and clear of all liens, charges and encumbrances, will carry out all
      Mining Operations on the Property in a miner-like fashion, will obtain all
      necessary licenses and permits as shall be necessary and will, file all
      applicable work up to the legal limits as assessment work under The Mines and Minerals Act
      (Nevada).

            

    

     

    
      	
              10.

            	
              Representations,
      Warranties and Covenants of the
Optionee

            

    

     

    The Optionee represents, warrants and
covenants to and with the Optionor that:

     

    
      	
               
      

            	
              (a)

            	
              the
      Optionee is a company duly organized validly existing and in good standing
      under the laws of Nevada;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Optionee has full power and authority to carry on its business and to
      enter into this Agreement and any agreement or instrument referred to or
      contemplated by this Agreement;

            

    

     

    
      	
               
      

            	
              (c)

            	
              neither
      the execution and delivery of this Agreement, nor any of the agreements
      referred to herein or contemplated hereby, nor the consummation of the
      transactions hereby contemplated conflict with, result in the breach of or
      accelerate the performance required by, any agreement to which it is a
      party;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      execution and delivery of this Agreement and the agreements contemplated
      hereby will not violate or result in the breach of the laws of any
      jurisdiction applicable or pertaining thereto or of its constating
      documents;

            

    

     

    
      	
               
      

            	
              (e)

            	
              this
      Agreement constitutes a legal, valid and binding obligation of the
      Optionee; and

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              11.

            	
              Indemnity and Survival
      of Representations

            

    

     

    The representations and warranties
hereinbefore set out are conditions on which the parties have relied in entering
into this Agreement and shall survive the acquisition of any interest in the
Property by the Optionee and each of the parties will indemnify and save the
other harmless from all loss, damage, costs, actions and suits arising out of or
in connection with any breach of any representation, warranty, covenant,
agreement or condition made by them and contained in this
Agreement.

     

    The Optionor agrees to indemnify and
save harmless the Optionee from any liability to which it may be subject arising
from any Mining Operations carried out by the Optionor or at is direction on the
Property.  The Optionee agrees to indemnify and save harmless the
Optionor from any liability to which it may be subject arising from any Mining
Operations carried out by the Optionee or at its direction on the
Property.

     

    
      	
              12.

            	
              Confidentiality

            

    

     

    The parties hereto agree to hold in
confidence all information obtained in confidence in respect of the Property or
otherwise in connection with this Agreement other than in circumstances where a
party has an obligation to disclose such information in accordance with
applicable securities legislation, in which case such disclosure shall only be
made after consultation with the other party.

     

    
      	
              13.

            	
              Notice

            

    

     

    All notices, consents, demands and
requests (in this Section 13 called the
“Communication”) required or permitted to be given under this Agreement shall be
in writing and may be delivered personally sent by telegram, by telex or
telecopier or other electronic means or may be forwarded by first class prepaid
registered mail to the parties at their addresses first above
written.  Any Communication delivered personally or sent by telegram,
telex or telecopier or other electronic means shall be deemed to have been given
and received on the second business day next following the date of
sending.  Any Communication mailed as aforesaid shall be deemed to
have been given and received on the fifth business day following the date it is
posted, addressed to the parties at their addresses first above written or to
such other address or addresses as either party may from time to time specify by
notice to the other; provided, however, that if there shall be a mail strike,
slowdown or other labour dispute which might affect delivery of the
Communication by mail, then the Communication shall be effective only if
actually delivered.

     

    
      	
              14.

            	
              Further
      Assurances

            

    

     

    Each of the parties to this Agreement
shall from time to time and at all times do all such further acts and execute
and deliver all further deeds and documents as shall be reasonably required in
order fully to perform and carry out the terms of this
Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              15.

            	
              Entire
      Agreement

            

    

     

    The parties hereto acknowledge that
they have expressed herein the entire understanding and obligation of this
Agreement and it is expressly understood and agreed that no implied covenant,
condition, term or reservation, shall be read into this Agreement relating to or
concerning any matter or operation provided for herein.

     

    
      	
              16.

            	
              Proper Law and
      Arbitration

            

    

     

    This Agreement will be governed by and
construed in accordance with the laws of the State of Nevada and the laws of the
United States of America applicable therein.  The parties hereto
hereby irrevocably attorn to the jurisdiction of the Courts of Nevada. All
disputes arising out of or in connection with this Agreement, or in respect of
any defined legal relationship associated therewith or derived therefrom, shall
be referred to and finally resolved by a sole arbitrator by arbitration under
the rules of The Arbitration
Act of Nevada.

     

    
      	
              17.

            	
              Enurement

            

    

     

    This Agreement will enure to the
benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns.

     

    18.                      After Acquired
Properties

     

    
      	
               
      

            	
              (i)

            	
              The
      parties covenant and agree, each with the other, that any and all After
      Acquired Properties shall be subject to the terms and conditions of this
      Agreement and shall be added to and deemed, for the purposes hereof, to be
      included in the Property.  Any costs incurred by the Optionor in
      staking, locating, recording or otherwise acquiring any “After Acquired
      Properties” will be deemed to Mining Operations for which the Optionor
      will be entitled to reimbursements as part of the Expenditures payable by
      the Optionee hereunder.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Any
      additional claims staked within a 1 mile radius (1.6 km.) of the property
      boundaries by the Optionor shall form part of this agreement. As per
      1k(iii), the Optionee will escrow $5,000 US for the costs of staking
      additional claims undertaken by the Optionor at the request of the
      Optionee.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    19.                      Default

     

    Notwithstanding anything in this
Agreement to the contrary if any party (a “Defaulting Party”) is in default of
any requirement (other than as set forth in Section 4) herein set forth the party affected by such default
shall give written notice to the Defaulting Party specifying the default and the
Defaulting Party shall not lose any rights under this Agreement, unless thirty
(30) days after the giving of notice of default by the affected party the
Defaulting Party has failed to take reasonable steps to cure the default by the
appropriate performance and if the Defaulting Party fails within such period to
take reasonable steps to cure any such default, the affected party shall be
entitled to seek any remedy it may have on account of such default including,
without limiting, termination of this Agreement.

     

    20.                      Payment

     

    All references to monies hereunder
shall be in U.S. funds.  The Optionee shall escrow projected monthly
costs into an account for the Expenditures.  Escrow funds will be used
to pay invoices delivered by the Optionor which for the purposes of this
agreement shall constitute prompt and due payment.

     

    21.                      Option
Only

     

    This is an option only and except as
herein specifically provided otherwise, nothing herein contained shall be
construed as obligating the Optionee to do any acts or make any payments
hereunder, and any act or acts or payment or payments as shall be made hereunder
shall not be construed as obligating the Optionee to do any further act or make
any further payment or payments.

     

    22.                      Revisionary
Rights

     

    Optionor retains reversionary rights to
all property within the boundary of the Area of Interest as long as Optionee,
its subsidiaries or assigns holds title.  At such time in the future
that Optionee, its subsidiaries or assigns decides any and all property held by
Optionee within the referenced Area of Interest is unnecessary to the pursuit of
an ore deposit, Optionee, its subsidiaries or assigns will offer said Property
to Optionor, its subsidiaries or assigns at least 60 days prior to any fees,
taxes, payments or other assessment being due and payable.  Optionee,
its subsidiaries or assigns will make available any and all data to Optionor to
evaluate the potential or lack thereof of the offered
property.  Optionor will be obligated to accept in writing, by fax or
verbally within 30 days of notification.  At such time that Optionor
accepts any part of a Property, Optionee, its subsidiaries or assigns will
transfer any and all drill core, pulps, rejects, digital and other data
available for the above referenced property.

     

    23.                      Supersedes Previous
Agreements

     

    This Agreement supersedes and replaces
all previous oral or written agreements, memoranda, correspondence or other
communications between the parties hereto relating to the subject matter
hereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF the Parties hereto have duly executed this Agreement effective
as of the 30th day of June, 2004

     

    

     

                MinQuest
Inc.

     

    

    Per:           

    Authorized Signatory

    

    

              American
Goldfields Inc.

    

    Per:                                                                

    Authorized Signatory

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    

     

    SCHEDULE
A

    

    LIST OF IMPERIAL PROPERTY UNPATENTED
CLAIMS, SECTIONS 34-36, T4S, R40E,
MDB&M, ESMERALDA
COUNTY, NEVADA

     

    

    
      	
              Claim Name

            	
              BLM Serial Number

            
	
              Lida
      1-10

            	
              838518-838527

            
	
              Helen

            	
              833046

            
	
              Helen
      1-9

            	
              833047-833055

            
	
              Imperial
      20-21

            	
              833056-833

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
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    SCHEDULE
“B”

     

    

     

    “Net
Smelter Return” shall mean the aggregate proceeds received by the Optionee from
time to time from any smelter or other purchaser from the sale of any ores,
concentrates, metals or any other material of commercial value produced by and
from the Property after deducting from such proceeds the following charges only
to the extent that they are not deducted by the smelter or other purchaser in
computing the proceeds:

     

    
      	
              (a)

            	
              the
      cost of transportation of the ores, concentrates or metals from the
      Property to such smelter or other purchaser, including related
      insurance;

            

    

     

    (b)           smelting
and refining charges including penalties; and

     

    The
Optionee shall reserve and pay to the Optionor a NSR equal to three (3%) percent
of Net Smelter Return.

     

    Payment
of NSR payable to the Optionor hereunder shall be made quarterly within thirty
(30) days after the end of each calendar quarter during which the Optionee
receives Net Smelter Returns.  Within thirty (30) days after the end
of each calendar quarter for which the NSR are payable to the Optionor, the
records relating to the calculation of NSR for such year shall be audited by the
Optionee and any adjustments in the payment of NSR to the Optionor shall be made
forthwith after completion of the audit.  All payments of NSR to the
Optionor for a calendar year shall be deemed final and in full satisfaction of
all obligations of the Optionee in respect thereof if such payments or the
calculations thereof are not disputed by the Optionor within ninety (90) days
after receipt by the Optionor of the same audited statement.  The
Optionee shall maintain accurate records relevant to the determination of NSR
and the Optionor, or its authorized agent, shall be permitted the right to
examine such records at all reasonable times.sch13da6060308ex1-1.htm

     

    

    SECURITIES
PURCHASE AGREEMENT

    

    This
Securities Purchase Agreement (this “Agreement”), dated June 2,
2008 (“Closing Date”), is made by Howard Ullman, a natural person (“Seller”),
and Stewart Wallach, a natural person (“Buyer”).  Seller and Buyer may
hereinafter also be referred to individually as a “party” or collectively as the
“parties.” This Agreement memorializes and  includes a May 23, 2008
consent by the Buyer to cancel 74,666,667 shares of CHDT Common Stock, $0.0001
par value, under a nonqualified stock option granted to the Buyer.

    

    RECITALS

    

    WHEREAS,
subject to the terms and conditions set forth in this Agreement,  and
pursuant to Section 4(2) of the Securities Act (as defined below), the Seller
desires to sell to Buyer, and Buyer desires to purchase from the Seller, certain
shares of the Common
Stock, $0.0001 par value per share, (“Common Stock”) and Series B
Convertible Preferred Stock, $0.10 par value per share, (“Series B Stock”) of
CHDT Corporation, a Florida corporation (“CHDT” or “Company”) with its shares of
Common Stock quoted on OTC Bulletin Board under the trading symbol “CHDO.OB,”
that are beneficially owned by the Seller; and

    

    WHEREAS,
subject to the terms and conditions set forth in this Agreement, the Buyer has
agreed to cancel his non-qualified stock option for the purchase of 74,666,667
shares of Common Stock for an exercise price of $0.029 per share;
and

    

    WHEREAS,
the Company is not a party to and did not arrange or facilitate this Agreement,
but the Company’s Board of Directors and its Compensation Committee and Audit
Committee have reviewed this Agreement and none of  those entities
have any objections to the transactions contemplated herein.

     

    NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the parties agree as follows:

     

    ARTICLE
I. DEFINITIONS

     

    1.1  
Definitions.  In addition to the terms defined elsewhere in this Agreement,
for all purposes of this Agreement, the following terms shall have the follow
meaning(s):

     

    “Action” means any action,
claim, suit, inquiry, notice of violation, proceeding (including, without
limitation, any investigation or partial proceeding such as a deposition) or
investigation pending or threatened in writing against or affecting the parties
or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency, regulatory authority (federal, state,
county, local or foreign), stock market, stock exchange or trading
facility.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Affiliate” means any Person
that, directly or indirectly, through one or more intermediaries, controls or is
controlled by or is under common control with a Person, as such terms are used
in and construed under Rule 144 under the Securities Act.

     

    “B
Shares” means
939,000 shares of Series B Stock beneficially owned by the Seller and issuable
to Buyer by Seller, subject to the terms and conditions of this
Agreement.

    

    “Business Day” means any day
except Saturday, Sunday and any day which is a federal legal holiday or a day on
which banking institutions in the State of  Florida are authorized or
required by law or other governmental action to close.

     

    “Closing” means the exchange
of  the signed originals of this Agreement by the parties and the
exchange of all payments, documents, instruments and certificates required
hereunder in accordance with and when required by this Agreement.

    

    Closing Date” mean June 2,
2008, or such other date as the parties may agree.

     

    “Common Stock” means the
common stock of the Company, par value $0.0001 per share, and any securities
into which such common stock may hereafter be reclassified, converted or
exchanged.

     

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

     

    “Material Adverse Effect”
means any of (i) a material and adverse effect on the legality, validity or
enforceability of any Transaction Document, (ii) a material and adverse effect
on the results of operations, assets, prospects, business or condition
(financial or otherwise) of the Company and the Subsidiaries, or (iii) an
adverse impairment to a party’s ability to perform on a timely basis its
obligations under any Transaction Document.

     

    “Person” means an individual
or corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an
agency or subdivision thereof) or other entity of any kind.

     

    “Rule 144” means Rule 144
promulgated by the U.S. Securities and Exchange Commission (“SEC” or
“Commission”) pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule.

    

    “SEC” means the U.S.
Securities and Exchange Commission

     

    “Securities Act” means the
Securities Act of 1933, as amended.

     

    “Shares” means 35 million shares of
Common Stock being purchased under this Agreement by Buyer from Seller,
Seller, subject to the terms and conditions of this Agreement.

     

    “Short Sales” has the meaning
set forth in Section 3.2(f).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Subsidiary” means any
“significant subsidiary” (as defined in Rule 1-02(w) of the Regulation S-X
promulgated by the Commission under the Exchange Act) of the
Company.

     

     “Trading Market” means
whichever of the New York Stock Exchange, the American Stock Exchange, any of
the NASDAQ markets or OTC Bulletin Board on which the Common Stock is listed or
quoted for trading on the date in question.

    

    “Trading Day” means (i) a day
on which the Common Stock is traded on a Trading Market, or (ii) if the Common
Stock is not listed or quoted on a Trading Market, a day on which the Common
Stock is quoted in the over-the-counter market as reported by the Pink Sheets,
LLC or http://www.otcbb.com, or any similar organization or agency succeeding to
its functions of reporting prices; provided, that in the event that the Common
Stock is not listed or quoted, then Trading Day shall mean a Business
Day.

    

    “Transaction Documents” means
this Agreement and any other documents or agreements executed in connection with
the transactions contemplated hereunder.

    

    ARTICLE
II. PURCHASE AND SALE

     

    2.1  
Closing.  (a) Pursuant to the provisions of this Agreement, the Seller
agrees to sell to the Buyer, and the Buyer agrees to purchase from the Seller,
all of the B Shares and all of the Shares and to do so on the Closing Date, at
the following per share purchase price:

    

    $0.0025 per share for the
Shares and $0.165 per share for the B Shares, or an aggregate purchase price for
all Shares and B Shares being TWO HUNDRED FORTY TWO THOUSAND AND FOUR HUNDRED
THIRTY FIVE DOLLARS AND NO CENTS ($242,435.00) (“Purchase
Price”),

    

    subject to the conditions
set forth herein and payable as set forth in Section 2.1(b) below.  The
Closing shall take place at the offices of CHDT, 350 Jim Moran Blvd., Suite 120,
Deerfield Beach, Florida 33442, at 1:00 p.m. (Miami time) on the Closing Date or
at such other location or time as the parties may agree.

    

    (b)   Payment
of Purchase Price.  The Buyer shall pay the Purchase Price for the
Shares and B Shares by executing and issuing a promissory note (“Note”) to the
Seller in the principal amount of the Purchase Price and bearing interest at
five percent (5%) per annum. The term of the Note shall be five (5) years and
the principal and interest accrued thereon shall be due and payable in five (5)
equal installments of principal and interest accrued thereon with the first
installment being due and payable on June 2, 2009 and each subsequent
installment due on the annual anniversary of the date of the Note (that being,
June 2, 2008); provided, however, that the Buyer may prepay the principal and/or
interest accrued thereon in whole or in part at any time or from time to time,
at Buyer’s sole discretion, without penalty or charge.  Buyer may also
pay the principal and accrued interest thereon under the Note with the B Shares
and Shares or other equity securities of CHDT, which Shares or equity securities
will be valued at a per purchase price to be determined by the Compensation
Committee of the Company at the time of the tender of such Shares or equity
securities as payment of

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    the
Note’s principal and/or interest accrued thereon. A signed original of the Note
shall be deposited with the Company.  The Note shall be secured by the
Shares. Buyer shall execute and record all instruments, filings and documents
that are reasonably necessary, as determined by the Seller in his sole but
commercially reasonable discretion, to properly secure the Seller’s interest in
the Shares.  The form of the Note shall be satisfactory to the Seller
in his sole but commercially reasonable discretion.

    

    (c)   Costs.  The
parties agree that Exhibit One hereto sets forth their agreement on the
obligation of the parties with respect to any costs or expenses, including
taxes,  for the sale of the Shares and B Shares hereunder and the
recording of the secured interest created by the Note in favor of the
Buyer.  Exhibit One hereto is hereby incorporated herein by
reference.

     

    2.2  
Closing Deliveries.  (a)  Sale.  At the Closing, the
Seller shall deliver or cause to be delivered to Buyer a stock certificate
evidencing the Shares and a stock certificate
evidencing the B Shares – all to be delivered to the Buyer by the Seller
at the Closing along with written and signed instructions to the CHDT’s stock
transfer agent to issue a new stock certificate to the Buyer in the amount of
the Shares and B
Shares with appropriate restrictive legends on the reverse side of said
new stock certificates.  Any shares of Common Stock
and any shares of Series B Convertible Preferred Stock, $0.10 par value per
share, as the case may be,  evidenced by the stock certificates
tendered by the Seller to the Buyer at the Closing that are in excess of the
number of the Shares and/or B Shares
purchased hereunder shall be evidenced by a new stock certificate(s) issued to
the Seller by the CHDT stock transfer agent and said new Seller stock
certificate(s) shall have appropriate restrictive legends on the reverse side of
said new stock certificate(s). Seller shall sign and deliver at the Closing any
and all other documents, agreements and instruments reasonably required to
transfer good and
marketable title to the Shares to the Buyer.

    

    (b)   Purchase
Price and Option Termination.  At the Closing, the Buyer shall
deliver: (i) to the Seller and CHDT a written termination of that portion of
non-qualified stock options issued to the Buyer by CHDT representing 74,666,667
shares of Common Stock; and (ii) the Note, duly signed, witnessed and sealed.
Buyer shall take all actions and execute all instruments that are reasonably
necessary to cause the termination of said non-qualified stock options for
74,666,667 shares of Common Stock and to pay the Purchase Price to the Seller by
the tender of the signed and sealed Note to the Seller, subject to the
conditions to such actions that are expressly set forth herein. Buyer shall also
surrender to the Company at the Closing the signed non-qualified stock option
agreement covering the 74,666,667 shares of Common Stock. The Company shall
deliver to the Buyer a new stock option agreement evidencing the Buyer’s right
to purchase those shares of Common Stock in excess of the terminated 74,666,667
option shares and represented in the Buyer’s existing stock option agreement,
that being 27,733,333 and to do so on the same terms as the original stock
option agreement, subject to any adjustments required by applicable laws and
regulations.

      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.2  
Termination.  The following conditions precedent must be satisfied on or
before the Closing Date, or waived in writing by the party who is not required
to perform the action in question or deliver the agreement or document or
instrument in question, before the parties shall be obligated to consummate and
close any transactions and actions required by this Agreement.  Either
party may unilaterally terminate this Agreement upon prior written notice to the
other party, if and only if (i) the other party fails to deliver the documents
and/or instruments required to be delivered herein, or take all actions required
to be taken herein, as of the Closing Date; (ii) the parties have not received,
reviewed and approved the report of CHDT’s public auditors on the reporting and
financial impact of the cancellation of the 74,666,667 option shares of Buyer,
on or before the Closing Date; (iii) the parties do not reach agreement on the
Share Purchase Price on or before the Closing Date; (iv)  any party is
not ready to close the transactions contemplated herein on the Closing Date; (v)
one party has intentionally misled the other party in respect of any fact that
is material to the decision of a rational person in respect of the stock sale
and stock option termination contemplated herein; or (vi) the actions or
transactions contemplated herein are prohibited or barred by any applicable laws
or regulations or by court or agency order.

    

    

    ARTICLE
III. REPRESENTATIONS AND WARRANTIES

     

    3.1  
Representations and Warranties.  (a) In order to induce the Buyer to enter
into this Agreement, the Seller hereby makes the following representations and
warranties to the Buyer:

      

    (i) Authority.
The Seller is the beneficial and record owner of the Shares and has the legal
authority to enter into and consummate this Agreement and to transfer good and
marketable title to the Shares to the Buyer at the Closing, subject to the
restrictions imposed by Rule 144 of the Securities Act on such Shares;
and

    (ii)
Status. Seller is an “accredited investor” as defined in Rule 501(a) under
Regulation D of the Securities Act.   Seller is not a registered
broker-dealer under Section 15 of the Exchange Act.  Seller is also a
“sophisticated” investor in respect of CHDT securities; and

    (iii)   
Certain Trading Activities.  Seller has not directly or indirectly, nor has
any Person acting on behalf of or pursuant to any understanding with the Seller,
engaged in any trading in any securities of the Company (including, without
limitations, any “Short Sales” (defined below) involving the Company’s
securities) during the 20 Trading Days prior to the time that the transactions
contemplated by this Agreement are publicly disclosed by the Company.  For
purposes of this Section, “Short Sales” include, without
limitation, all “short sales” as defined in Rule 3b-3 of the Exchange Act and
include all types of direct and indirect stock pledges, forward sale contracts,
options, puts, calls, short sales, swaps and similar arrangements (including on
a total return basis), and sales and other transactions through non-US broker
dealers or foreign regulated brokers having the effect of hedging the securities
or investment made under this Agreement.  As of the Closing Date, Seller
shall have no open short position in the Common Stock, and covenants that
neither he nor any Person acting on his behalf or pursuant to any understanding
with him will engage in any Short Sales prior to the public disclosure of the
material terms of this transaction by the Company.  Further, Seller is
solely responsible for timely filings of all reports required to be made by him
personally with the SEC as a result of the transactions herein and neither the
Buyer nor any third party has any liability or responsibility for such filings;
and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (iv)
General Solicitation.  Seller is not selling the Shares or B Shares as a
result of any advertisement, article, notice or other communication regarding
the Shares or B Shares published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement; and

    (v) Access
to Information.  Seller is a former officer and current director of the
Company, who is active in the management of the Company, and, as such, has
access to information about the Company and its current business and financial
conditions and future prospects; and

    (vi)  
Independent Investment Decision.  Seller has independently evaluated the
merits of his decision to sell the Shares and B Shares pursuant to this
Agreement, and Seller confirms that he has not relied on the advice of the Buyer
or CHDT or any CHDT officer, director, attorney or agent in reaching that
decision.

     

    (b) In
order to induce the Seller to enter into this Agreement, the Buyer hereby makes
the following representations and warranties to the Seller:

    

    (i)   Authority.
The Buyer is the beneficial and record owner of the non-qualified stock option
representing the right to purchase 102,400,000 whole shares of Common Stock at
$0.029 per share (exercise price) and Buyer has the legal authority to
unilaterally and without the consent of any third party to enter into and
consummate this Agreement and cancel said stock option in the amount of
74,666,667 option shares of Common Stock; and

    (ii)
Status. Buyer is an “accredited investor” as defined in Rule 501(a) under the
Securities Act.  Buyer is not a registered broker-dealer under Section 15
of the Exchange Act. Buyer is also a “sophisticated” investor in respect of CHDT
securities; and

    (iii) Certain
Trading Activities.  Buyer has not directly or indirectly, nor has any
Person acting on behalf of or pursuant to any understanding with the Buyer,
engaged in any trading in any securities of the Company (including, without
limitations, any Short Sales (as defined in Section 3.1(a)(iii) above) involving
the Company’s securities) during the 20 Trading Days prior to the time that the
transactions contemplated by this Agreement are publicly disclosed by the
Company.  As of the Closing Date, Buyer shall have no open short position
in the Common Stock, and covenants that neither he nor any Person acting on his
behalf or pursuant to any understanding with him will engage in any Short Sales
prior to the public disclosure of the material terms of this transaction by the
Company. Further, Buyer is solely responsible for timely filings of all reports
required to be made by him personally with the SEC as a result of the
transactions herein and neither the Seller nor any third party has any liability
or responsibility for such filings; and

    (iv)
General Solicitation.  Buyer is not buying the Shares or B Shares as a
result of any advertisement, article, notice or other communication regarding
the Shares or B Shares published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement; and

    (v) Access
to Information.   Buyer is an officer and director of the Company
and, as such, has access to information about the Company and its current
business and financial conditions and future prospects;  and

    (vi)  
Independent Investment Decision.  Buyer has independently evaluated the
merits of his decision to buy the Shares or the B Shares pursuant to this
Agreement, and Buyer confirms that he has not relied on the advice of the Seller
or CHDT or any CHDT officer, director, attorney or agent in reaching that
decision.  Buyer is acquiring the Shares of investment purposes only
and not with intent to redistribute or sell the Shares or B Shares to a third
party.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)  Publicity
and Form 8-K.  By 5:00 p.m. (Miami time) on the Closing Date, the parties
shall cause the Company to issue a press release in a form approved by the
parties and Company directors disclosing the transactions contemplated herein
and to file a Current Report on Form 8-K disclosing the material terms of the
Transaction Documents (and attach as exhibits thereto the Transaction
Documents).

    

     

    ARTICLE
IV.  OTHER AGREEMENTS OF THE PARTIES

     

    4.1  
Shares and B Shares may only be disposed of in compliance with state and federal
securities laws.  In connection with any transfer, pledge or encumbrance of
the Shares other than pursuant to an effective registration statement, the
Company may require the transferor thereof to provide to the Company an opinion
of counsel selected by the transferor, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred Shares under the
Securities Act.

     

    4.2     Certificates
evidencing the Shares and B Shares will contain the following
legend:

     

    THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

     

    4.3  Indemnification. 
Each party hereby indemnifies and holds harmless the other party 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 (collectively, “Losses”) that the other party
may suffer or incur as a result of or relating to any misrepresentation, breach
or inaccuracy of any representation, warranty, covenant or agreement made by the
indemnifying party in any Transaction Document.  In addition to the
indemnity contained herein, the indemnifying party shall reimburse the other
party for its reasonable legal and other expenses (including the cost of any
investigation, preparation and travel in connection therewith) incurred in
connection therewith, as such expenses are incurred.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
V.

    CONDITIONS
PRECEDENT TO CLOSINGS

    

    5.1  
Conditions Precedent to the Obligations. In addition to the conditions precedent
set forth in Section 2.2 above, the obligation of each party to consummate this
Agreement is subject to the satisfaction or waiver at or before such Closing of
each of the following conditions:

     

    (a)  
Representations and Warranties.  The representations and warranties of the
other party contained in the Transaction Documents shall be true and correct in
all material respects as of the date when made and as of such Closing as though
made on and as of such dates;

     

    (b)  
Performance.  The other party shall have performed, satisfied and complied
in all material respects with all covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by it
at or prior to such Closing;

     

    (c)  
No Injunction.  No statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits
the consummation of any of the transactions contemplated by the Transaction
Documents;

     

    (d)  
Adverse Changes.  Since the date of execution of this Agreement, no event
or series of events shall have occurred that reasonably could have or result in
a Material Adverse Effect;

     

    (e)  
No Suspensions of Trading in Common Stock; Listing.  Trading in the Common
Stock shall not have been suspended by the SEC on any Trading Market (except for
any suspensions of trading of not more than one Trading Day solely to permit
dissemination of material information regarding the Company) at any time since
the date of execution of this Agreement, and the Common Stock shall have been at
all times since such date listed for trading or quoted on a Trading
Market;

     

    (f)   
Deliverables.  The other party has delivered at the Closing all documents,
instruments, agreements and signatures required hereunder.

     

    

    ARTICLE
VI. MISCELLANEOUS

     

    6.1
   Entire Agreement.  The Transaction Documents, together with
all of the Exhibits and Schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and supersede all prior
agreements, understandings, discussions and representations, oral or written,
with respect to such matters, which the parties acknowledge have been merged
into such documents, exhibits and schedules.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.2  
Notices.  Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of transmission, if
such notice or communication is delivered via facsimile (provided the sender
receives a machine-generated confirmation of successful transmission) at the
facsimile number specified in this Section prior to 5:30 p.m. (Miami time) on a
Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number
specified in this Section on a day that is not a Trading Day or later than 5:30
p.m. (Miami time) on any Trading Day, (c) the Trading Day following the date of
mailing, if sent by U.S. nationally recognized overnight courier service, or (d)
upon actual receipt by the party to whom such notice is required to be
given.  The address for such notices and communications shall be as
follows:

     

    TO:
 HOWARD ULLMAN AND STEWART WALLACH

    350 Jim
Moran Blvd., #120

    Deerfield
Beach, Florida 33442

    

    6.3  
Amendments; Waivers; No Additional Consideration.  No provision of this
Agreement may be waived or amended except in a written instrument signed by the
parties.  No waiver of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in
the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of
either party to exercise any right hereunder in any manner impair the exercise
of any such right. 

     

    6.4  
Construction.  The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.  The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any party. 
This Agreement shall be construed as if drafted jointly by the parties, and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement or any of the
Transaction Documents.

     

    6.5  
Successors and Assigns.  This Agreement shall be binding upon and inure to
the benefit of the parties and their successors and permitted assigns.  A
party may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the other party.

     

    6.6 
No Third-Party Beneficiaries.  This Agreement is intended for the benefit
of the parties and their respective successors and permitted assigns and is not
for the benefit of, or be enforced by, any other Person.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.7  
Governing Law.  All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of
Florida, without regard to the principles of conflicts of law thereof. 
Each party agrees that all Actions concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other
Transaction Documents (whether brought against a party or its respective
Affiliates, employees or agents) shall be commenced exclusively in the courts
for Broward County, Florida.  Each party hereby irrevocably submits to the
exclusive jurisdiction of the Broward County, Florida Courts for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to
the enforcement of the any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any Action, any claim that he is not
personally subject to the jurisdiction of any such Broward County, Florida
Court, or that such Action has been commenced in an improper or inconvenient
forum.  Each party hereby irrevocably waives personal service of process
and consents to process being served in any such Action by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to him under
Section 6.2 of this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof.  Nothing contained
herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law.  Each party hereby irrevocably waives, to the
fullest extent permitted by applicable law, any and all rights to trial by jury
in any legal proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby.  Each party understands the consequences
of such waiver.  If either party shall commence an Action to enforce
any provisions of a Transaction Document, then the prevailing party in such
Action shall be reimbursed by the other party for its reasonable attorneys’ fees
and other costs and expenses incurred with the investigation, preparation and
prosecution of such Action.

     

    6.8  
Survival.  The representations, warranties, agreements and covenants
contained herein shall survive the Closing and the delivery of the Shares and B
Shares for three (3) years after the Closing Date.

     

    6.9        
Execution.  This Agreement may be executed in two or more counterparts, all
of which when taken together shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart.  In the event that any signature is delivered by
facsimile transmission, 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 signature page
were an original thereof.

     

    6.10        
Severability.  If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining
terms and provisions of this Agreement shall not in any way be affected or
impaired thereby and the parties will attempt to agree upon a valid and
enforceable provision that is a reasonable substitute therefore, and upon so
agreeing, shall incorporate such substitute provision in this
Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.11       
Rescission and Withdrawal Right.  Notwithstanding anything to the contrary
contained in (and without limiting any similar provisions of) the Transaction
Documents, whenever a party exercises a right, election, demand or option under
a Transaction Document and the other party does not timely perform its related
obligations within the periods therein provided, then such party exercising such
right, election demand or option may rescind or withdraw, in its sole discretion
from time to time upon written notice to the other party, any relevant notice,
demand or election in whole or in part without prejudice to its future actions
and rights.

     

    6.12        
Remedies.  In addition to being entitled to exercise all rights provided
herein or granted by law, including recovery of damages, each party will be
entitled to specific performance under the Transaction Documents.  The
parties agree that monetary damages may not be adequate compensation for any
loss incurred by reason of any breach of obligations described in the foregoing
sentence and hereby agrees to waive in any action for specific performance of
any such obligation the defense that a remedy at law would be
adequate.

     

    6.13      Agreement
on Drafting.  The parties have authorized Paul W. Richter of PW
Richter, plc, (“Firm”) to draft this Agreement on their behalf.  The
parties agree that Mr. Richter’s and the Firm’s role in drafting this Agreement
are merely that of a draftsman and neither Mr. Richter nor the Firm represents
either party as legal counsel in respect of this Agreement or any transactions
contemplated herein.  As such, neither Mr. Richter nor the Firm has
acted as an advocate for, or sought to protect or promote the interests of,
either party.  Each party has been advised by Paul W. Richter and the
Firm to seek their own legal counsel to review this Agreement and the other
Transaction Documents.  Neither Paul W. Richter nor Firm has provided
any legal, financial or tax advice to either party in connection with this
Agreement or any Transaction Documents or any transactions contemplated in any
Transaction Documents.

    

    IN
WITNESS WHEREOF, the parties have caused this Securities Purchase Agreement to
be duly executed by their respective authorized signatories as of the date first
indicated above.

    

    HOWARD
ULLMAN

    

    Signature:_/s/________________

    

    Witness
Name: Gerry
McClinton

    Witness
Signature:_/s/_________

    

    Date:
06/02/08

    

    STEWART
WALLACH

    Signature:_/s/________________

    

    Witness
Name: Gerry
McClinton

    Witness
Signature:_/s/_________

    

    Date:_06/02/08_______________

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