Document:

Unassociated Document

    Exhibit
      10.3

    

    Summary
      of Mortgage
      Agreement
      (the
“Agreement”) dated September 13, 2006, by and between Jinzhou Halla Electrical
      Equipment Co., Ltd. (“Halla”) and the Bank of China Jinzhou Tiebei branch (the
“Bank”).

    

    
      
        	 	
                Contract
                  Number: 
                  2006-JZY-001

              

      

    

     

    Mortgagor:
      Jinzhou Halla Electrical Equipment Co., Ltd.

    Mortgagee:
      Bank of China Jinzhou Tiebei branch

    

    

    1.
      The
      Agreement is entered into pursuant to one or several Credit Facility Agreements
      (the “Credit Facility Agreements”) entered into by the Mortgagor and Mortgagee
      between August 21, 2006 and August 8, 2008, and any other agreements now or
      hereafter entered into in connection with the Credit Facility
      Agreements.

     

    2.
      The
      Agreement covers all credit facilities up to RMB 50 million provided by the
      Bank
      to Halla from August 21, 2006 to August 8, 2008. 

    

    3.
      Should
      the Mortgagor default for failing to make mortgage payments due under the
      Agreement (including the accelerated debts), the Mortgagee has the right to
      foreclose on the collaterals listed under the Schedule A of this Agreement.
      

    

    4.
      The
      assessed value of the collaterals is RMB 79.9831 million. 

    

    5.
      The
      collaterals under the Agreement shall be possessed by the Mortgagor but the
      titles and other ownership documents shall be possessed by the Mortgagee. The
      collaterals shall not be transferred, leased, or disposed by the Mortgagor
      without written consent of the Mortgagee. 

    

    6.
      The
      Mortgagor shall insure the collaterals with an insurer in such manner and for
      a
      term agreed upon by the Mortgagor and the Mortgagee. The coverage for the
      insurance shall be no less than the book value of the collaterals. 

    

    7.
      The
      Mortgagor shall make the necessary filing with the relevant government authority
      within ten days after the Agreement is entered into. 

    

    8.
      The
      mortgage created under this Agreement is independent from the Credit Facility
      Agreement and this Agreement shall not be voided or revoked because of the
      unenforceability of the Credit Facility Agreement. 

    

    9.
      The
      Mortgagor represents that it is duly organized and in good standing under
      Chinese laws, and has legal ownership of or right to dispose the collaterals.
      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.
      In
      the event of default by the Mortgagor, the Mortgagee is entitled to reduce
      the
      line of credit or declare the principal of and accrued interest on the loans,
      and any other amount payable due immediately and payable in full. 

    

    11.
      Failure to exercise any rights under the Agreement by the Mortgagee does not
      constitute waiver of such rights. 

    

    12.
      Disputes, which cannot be settled through consultation shall be adjudicated
      by
      the court which has the jurisdiction pursuant to the Credit Facility Agreement.
      

    

    

    Jinzhou
      Halla Electrical Equipment Co., Ltd. 

    /s/
      Yuncong Ma

    Seal

    September
      13, 2006

     

     

    Bank
      of China (Jingzhou Tiebei Branch)

    /s/
      Jun Wang

    Seal
      

    September
      13, 2006

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      A

    (List
      of
      Collateral) 

    

    
      	
               Collateral

            	
              Area
                (in square meters)

            	
              Value

            
	
              Residential
                Properties

            	
               14,525.11

            	
               RMB
                42,031,000

            
	
              Land,
                located at 16 Yulu Street, High Technology District,
                Jinzhou

            	
              42,169

            	
              RMB
                3,795,2100

            

    

    

    

    Jinzhou
      Halla Electrical Equipment Co., Ltd. 

    /s/
      Yuncong Ma

    Seal

    September
      13, 2006

     

     

    Bank
      of China (Jinzhou Tiebei Branch)

    /s/
      Jun Wang

    Seal
      

    September
      13, 2006Unassociated Document

    STOCK
      PURCHASE AGREEMENT

     

    AMONG

     

    HOMELAND
      SECURITY NETWORK, INC., AS SELLER

     

    AND

     

    MONET
      ACQUISITION, LLC,

     

    AS
      PURCHASER

     

    

     

    SEPTEMBER
      26, 2006

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    STOCK
      PURCHASE AGREEMENT

     

    THIS
      STOCK PURCHASE AGREEMENT ("Agreement")
      has
      been made and entered into as of this 26th day of September, 2006, between
      HOMELAND SECURITY NETWORK. INC., a Nevada corporation having its principal
      business address at 300 N. Coit Road, Suite 1200, Richardson TX 75080
      ("Seller"),
      and
      Monet Acquisition, LLC, a Delaware limited liability company having its
      principal business address at 2504 Green Oak Drive, Carrollton, TX 75010 (the
      "Purchaser").

    

    R
      E C I T
      A L S:

     

    A. The
      parties hereto desire to effect a stock sale (the "Stock
      Sale")
      pursuant to which Purchaser will purchase from the Seller an aggregate of
      40,000,000 shares (the "Transferred
      Shares")
      of the
      common stock of Pacific Auto Group, Inc., a Nevada corporation (the
      "Company"),
      par
      value $0.001 per share (the "Company
      Stock"),
      to be
      purchased by Purchaser for the consideration set forth herein.

     

    B. It
      is the
      intent and desire of the Seller and the Purchaser, through the Stock Sale and
      through their diligent efforts following such Stock Sale, to effectuate the
      Stock Sale such that it is a qualified spin-off of the Company from the Seller
      and to cooperate together to effect a post spin-off public registration of
      the
      Company.

     

    C. Pursuant
      to the Stock Sale, the Seller will sell, and Purchaser will purchase, the
      Transferred Shares.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual agreements and covenants contained herein, the
      parties hereto agree as follows and do thereby adopt this
      Agreement.

     

    ARTICLE
      I.  
DEFINITIONS

     

    The
      terms
      defined in this Article (except as otherwise expressly provided in this
      Agreement) for all purposes of this Agreement shall have the respective meanings
      specified in this Article.

     

    "Affiliate"
      shall
      mean any entity controlling or controlled by another person, under common
      control with another person, or controlled by any entity which controls such
      person.

     

    "Agreement"
      shall
      mean this Agreement, and all the exhibits, schedules and other documents
      attached to the Agreement, and all amendments and supplements, if any, to this
      Agreement.

     

    "Closing"
      shall
      mean the closing of the Transaction at which the Closing Documents shall be
      exchanged by the parties, except for those documents or other items specifically
      required to be exchanged at a later time.

     

    "Closing
      Date"
      shall
      mean no more than five days from the date of this Agreement plus any extension
      as provided herein, or such other date as agreed in writing to by the parties
      on
      which the Closing occurs.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    "Closing
      Documents"
      shall
      mean the papers, instruments and documents required to be executed and delivered
      at the Closing pursuant to this Agreement.

     

    "Code"
      shall
      mean the Internal Revenue of 1986, or any successor law, and regulations issued
      by the Internal Revenue Service pursuant to the Internal Revenue Code or any
      successor law. 

     

    "Encumbrance"
      shall
      mean any charge, claim, encumbrance, community property interest, condition,
      equitable interest, lien, option, pledge, security interest, right of first
      refusal, or restriction of any kind, including any restriction on use, voting
      (in the case of any security), transfer, receipt of income, or exercise of
      any
      other attribute of ownership.

     

    "Exchange
      Act"
      shall
      mean the Securities Exchange Act of 1934, as amended.

     

    "GAAP"
      shall
      mean United States generally accepted accounting principles applied in a manner
      consistent with prior periods.

     

    "Investment
      Letter"
      shall
      mean the investment letter in the form attached hereto as
      Appendix A.

     

    "Legal
      Requirement"
      any
      federal, state, local, municipal, foreign, international, multinational, or
      other administrative order, constitution, law, ordinance, principle of common
      law, regulations, statue, or treaty.

     

    "Material
      Adverse Effect"
      means
      any change (individually or in the aggregate) in the general affairs,
      management, business, goodwill, results of operations, condition (financial
      or
      otherwise), assets, liabilities or prospects (whether or not the result thereof
      would be covered by insurance) that would be material and adverse to the
      designated party.

     

    "Ordinary
      Course of Business"
      shall
      mean actions consistent with the past practices of the designated party which
      are similar in nature and style to actions customarily taken by the designated
      party and which do not require, and in the past have not received, specific
      authorization by the Board of Directors of the designated party.

     

    "Proceeding"
      any
      action, arbitration, audit, hearing, investigation, litigation, or suit (whether
      civil, criminal, administrative, investigative, or informal) commenced, brought,
      conducted, or heard by or before, or otherwise involving, any governmental
      body
      or arbitrator.

    

    "Purchase
      Price" means
      the
      purchase price in the amount of Ten Thousand Dollars and no cents ($10,000.00)
      payable by the Purchaser to the Seller pursuant to Section 2.1 of this
      Agreement.

     

    "SEC"
      shall
      mean the Securities and Exchange Commission.

     

    "Securities
      Act"
      shall
      mean the Securities Act of 1933, as amended.

     

    "Taxes"
      shall
      include federal, state and local income taxes, capital gains tax, value-added
      taxes, franchise, personal property and real property taxes, levies,
      assessments, tariffs, duties (including any customs duty), business license
      or
      other fees, sales, use and any other taxes relating to the assets of the
      designated party or the business of the designated party for all periods up
      to
      and including the Closing Date, together with any related charge or amount,
      including interest, fines, penalties and additions to tax, if any, arising
      out
      of tax assessments.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    "Transaction"
      shall
      mean the Stock Sale contemplated by this Agreement.

     

    The
      following appendices and schedules are attached to and form part of this
      Agreement:

    

    APPENDICES

    

    Description

    

    Appendix
      A Investment
      Letter

    

    SCHEDULES

    

    Description

    

    Schedule 3.1.15
      Insurance Policies 

    

    Schedule
      5.2.1 Directors
      of the Company upon Closing 

    
ARTICLE
      II.

    THE
      TRANSACTION

     

    2.1. Stock
      Sale.
      Subject
      to the terms and conditions of the Closing Documents, the Seller hereby agrees
      to sell, transfer and deliver to Purchaser, and Purchaser hereby agree to
      purchase and accept, the Transferred Shares, in consideration for the payment
      of
      the Purchase Price by Purchaser to the Seller, free and clear of any liens,
      claims or Encumbrances.

     

    2.2. Securities
      Law Matters.

     

    2.2.1. Private
      Offering.
      The
      Purchaser understands that the Transferred Shares to be acquired and delivered
      to it pursuant to terms of this Agreement will not be registered under the
      Securities Act, but will be transferred in reliance upon exemptions available
      for resales by Affiliates in private transactions, and that the Seller is
      relying upon the truth and accuracy of the representations set forth in the
      Investment Letter delivered concurrently with the execution of this Agreement.
      Each certificate representing the Transferred Shares registered in the name
      of
      the Purchaser pursuant to terms of this Agreement shall bear the following
      legend:

     

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED PURSUANT TO
      THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, AND
      MAY
      NOT BE TRANSFERRED UNLESS THEY ARE SO REGISTERED OR, IN THE OPINION OF COUNSEL
      ACCEPTABLE TO THIS CORPORATION, SUCH TRANSFER IS EXEMPT FROM
      REGISTRATION.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      III.
REPRESENTATIONS
      AND WARRANTIES

     

    3.1. Representations
      and Warranties of the Seller.
      The
      Seller hereby represents and warrants to Purchaser that:

     

    3.1.1. Organization
      of the Company; Foreign Qualification.
      The
      Company is a corporation duly organized, validly existing, and in good standing
      under the laws of the state of Nevada and has all requisite corporate power,
      authority, franchises, and licenses to own its property and conduct the business
      in which it is engaged. Each of the Company and the Seller have the full power
      and authority (corporate or otherwise) to execute, deliver and perform their
      respective obligations under this Agreement and the Closing Agreements to which
      it is a party. A complete set of the Company’s corporate records as currently in
      effect, including its Certificate of Incorporation, Bylaws, minutes, transfer
      records, have been delivered or made available to Purchaser. The Company is
      duly
      qualified and in good standing as a foreign corporation in every jurisdiction
      in
which
      such qualification is necessary, except to the extent the failure to be so
      qualified is not reasonably expected to result in a Material Adverse
      Effect.

     

    3.1.2. Capitalization;
      Ownership of Transferred Shares.

     

      3.1.2.1.The
      authorized equity securities of the Company consists of 100,000,000 shares
      of
      common stock, par value $0.001 per share, of which 50,000,000 shares are issued
      and outstanding and 100,000 shares of preferred stock, par value $0.001 per
      share, of which no preferred shares are issued and outstanding. All of the
      outstanding equity securities of the Company have been duly authorized and
      validly issued, fully paid, are non-assessable, and were issued in compliance
      with any preemptive or similar rights and in compliance with applicable federal
      and state securities laws. All shares held by the Seller were issued in
      compliance with the exemption set forth in Section 4(2) of the Securities Act,
      and all other outstanding shares were issued in compliance with either this
      exemption or the exemption set forth in Regulation S promulgated under the
      Securities Act.

     

      3.1.2.2.There
      are
      no subscriptions, options, rights, warrants, convertible securities or other
      agreements or commitments to issue, or contracts or any other agreements
      regarding the issuance, sale or transfer of any equity securities or other
      securities of the Company. No persons who are now holders of Company Stock,
      and
      no persons who previously were holders of Company Stock, are or ever were
      entitled to preemptive rights other than persons who exercised or waived those
      rights. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

      3.1.2.3.There
      is
      no vote, plan, pending proposal or right of any person or entity to cause any
      redemption of any equity securities or other securities of the Company. There
      is
      no obligation, contract or other arrangement to register (or maintain the
      registration of) any of the Company’s securities under federal or state
      securities laws.

     

      3.1.2.4.These
      is
      no agreement, voting trust, proxy or other agreement or understanding of any
      character, whether written or oral, with any stockholders of the Company with
      respect to or concerning the purchase, sale or transfer or voting of the equity
      securities of the Company or any other security of the Company.

     

      3.1.2.5.There
      are
      no legal obligations, absolute or contingent, to any other person or entity
      to
      sell the assets, or any equity securities or any other security of the Company
      or any of its subsidiaries or affect any merger, consolidation or other
      reorganization of the Company or any of its subsidiaries or to enter into any
      agreement with respect thereto, except pursuant to this Agreement.

     

      3.1.2.6.The
      Seller is the sole beneficial and record holder of the Transferred Shares.
      The
      Seller holds the Transferred Shares free and clear of any Encumbrance of any
      kind whatsoever.

     

    3.1.3. Subsidiaries.
      The
      Company does not have any subsidiaries (whether held directly or indirectly)
      or
      any equity investment in any corporation, partnership, joint venture or other
      business.
      

     

    3.1.4. Real
      Estate and Title to Assets.
      The
      Company does not own any real estate or any interest in any real
      estate.
      The
      Company has good and marketable title in and to all of the assets and properties
      reflected in the most recent Company Financial Statements, and all assets and
      properties purchased or acquired by the Company since the date of the Company
      Financial Statements, less all assets and properties that the Company has
      disposed of in the Ordinary Course of Business, are free and clear of any
      Encumbrance.

     

    3.1.5.  Authority
      Relative to the Closing Documents; Enforceability. 
      This
      Agreement constitutes the legal, valid, and binding obligation of Seller,
      enforceable against Seller in accordance with its terms. Upon the execution
      and
      delivery by Seller of this Agreement and the Closing Documents, this Agreement
      and the Closing Documents will constitute the legal, valid, and binding
      obligations of Seller, enforceable against Seller in accordance with their
      respective terms. Seller has the absolute and unrestricted right, power,
      authority, and capacity to execute and deliver this Agreement and the Closing
      Documents and to perform its obligations under this Agreement and the Closing
      Documents. 

     

    3.1.6. Material
      Contracts.
      The
      Company is not a party to or bound by any agreement or contract.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    3.1.7. Labor
      Matters.
      There
      are no employment or consulting contracts with, or covenants against competition
      by, any present or former employees of the Company and has no obligations to
      any
      Employee Benefit Plan or pursuant to any statute concerning employees or
      employee benefits under any law of any jurisdiction. The Company has no
      employees other than its officers.

     

    3.1.8. Undisclosed
      Liabilities.
      The
      Company has no liabilities and to the best of Seller's knowledge there are
      no
      contingent liabilities, except liabilities that would not have a Material
      Adverse Effect. 

     

    3.1.9. Compliance
      with Other Instruments; Consents.
      Neither
      the execution of any Closing Document nor the consummation of the Transaction
      will trigger any affirmative obligation (including notice) conflict with,
      violate or result in a breach or constitute a default (or an event which, with
      notice or lapse of time or both, would constitute a default), or result in
      a
      termination of, or accelerate the performance required by, or result in the
      creation of any Encumbrance upon any assets of the Company under any provision
      of the Articles of Incorporation, Bylaws, indenture, mortgage, lien, lease,
      agreement, contract, instrument, order, judgment, decree, statute, ordinance,
      regulation or any other restriction of any kind or character to which the
      Company is bound.

     

    3.1.10. Financial
      Statements.
      The
      Company's financial statements and notes thereto (the "Company
      Financial Statements")
      are
      true and complete in all material respects, and have been prepared in accordance
      with GAAP for the period covered by such statements, and fairly present, in
      accordance with GAAP, the properties, assets and financial condition of the
      Company, and results of its operations as of the dates and for the periods
      covered thereby. There has been no material adverse change in the business
      operations, assets, properties, prospects or condition (financial or otherwise)
      of the Company, taken as a whole, from that reflected in the Company Financial
      Statements. As of the date hereof and as of the Closing Date, the Company does
      not have any debts, liabilities or obligations of any nature, whether accrued,
      absolute, unmatured, contingent, or otherwise, whether due or to become due,
      that are not fully reflected in the Company Financial Statements.

     

    3.1.11. Litigation.
      There
      are no legal, administrative, arbitration actions, audits, hearings,
      investigations, suits or other proceedings or claims involving the Company,
      nor
      is the Company subject to any existing judgment which might affect the financial
      condition, business, property or prospects of the Company; nor has the Company
      received any inquiry from an agency of the federal or of any state or local
      government about the Transaction, or about any violation or possible violation
      of any law, regulation or ordinance affecting its business or
      assets.

     

    3.1.12. Taxes.
      The
      Company either: (a) has timely filed with the appropriate taxing authority
      all
      Tax and information returns required to have been filed by the Company or (b)
      has timely filed for any required extensions with regard to such returns. All
      Taxes of the Company have been paid (or provision for the full payment thereof)
      to the extent such payments are required prior to the date hereof or accrued
      on
      the books of the Company. The returns were correct when filed. There are no
      pending investigations of the Company concerning any Tax returns by any federal,
      state or local Taxing authority, and there are no federal, state, local or
      foreign Tax liens upon any of the Company’s assets.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    3.1.13. Compliance
      with Law and Government Regulations.
      The
      Company is in compliance with, and is not in violation of, applicable federal,
      state, local or foreign statutes, laws and regulations (including without
      limitation, any applicable environmental, building, zoning or other law,
      ordinance or regulation) affecting the Company or its properties or the
      operation of its business. The Company is not subject to any order, decree,
      judgment or other sanction of any court, administrative agency or other
      tribunal.

     

    3.1.14. Insurance.
      Schedule 3.1.15 sets forth a list of all insurance policies, fidelity and
      surety bonds and fiduciary liability policies (the "Insurance
      Policies"),
      as
      well as all self-insurance programs, covering the operations, employees,
      officers and directors of the Company and true and complete copies of all such
      Insurance Policies have been delivered to Purchaser. There is no claim by the
      Company pending under any of such Insurance Policies as to which coverage has
      been questioned, denied or disputed by the underwriters of such Insurance
      Policies or requirement by any insurer to perform work which has not been
      satisfied. No premiums payable under such Insurance Policies are overdue and
      the
      Company is in compliance in all respects with the terms and conditions of all
      such Insurance Policies. All Insurance Policies are in full force and effect.
      

     

    3.1.15 Trade
      Names and Rights.
      The
      Company does not use any trademark, service mark, trade name, or copyright
      in
      its business, nor does it own any trademarks, trademark registrations or
      applications, trade names, service marks, copyrights, copyright registrations
      or
      applications. No person owns any trademark, trademark registration or
      application, service mark, trade name, copyright or copyright registration
      or
      application, the use of which is necessary or contemplated in connection with
      the operation of the Company’s business.

     

    3.1.16 Transaction
      with Affiliates.
      Neither
      the Seller, nor any Affiliate of the Seller or of the Company has any interest
      in any property (whether real, personal, or mixed and whether tangible or
      intangible) used in or pertaining to the Company's business. Neither the Seller,
      nor any Affiliate of the Seller or of the Company is, or has owned (of record
      or
      as a beneficial owner) an equity interest or other financial or profit interest
      in, a person or entity that has (i) had business dealings or a material
      financial interest in any transaction with the Company, or (ii) engaged in
      competition with the Company with respect to the business of the Company.
      Neither the Seller nor any Affiliate of the Seller is a party to any contract
      or
      other agreement with, or has any claim or right against, the
      Company

     

    3.1.17 Investment
      Company Act.
      The
      Company is not, and upon completion of the Transaction will not be, subject
      to
      registration as an investment company under the Investment Company Act of 1940,
      as amended, and the rules and regulations thereunder.

     

    3.1.18 Corrupt
      Practices.
      Neither
      the Company, nor any director, officer, agent, employee or other person acting
      on behalf of the Company has, in the course of his actions for, or on behalf
      of,
      the Company, used any corporate funds for any unlawful contribution, gift,
      entertainment or other unlawful expenses relating to political activity; made
      any direct or indirect unlawful payment to any foreign or domestic government
      official or employee from corporate funds; violated or is in violation of any
      provision of the U.S. Foreign Corrupt Practices Act of 1977 or U.S. Patriot
      Act
      of 2001; or made any bribe, rebate, payoff, influence payment, kickback or
      other
      unlawful payment to any foreign or domestic government official or
      employee.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    3.1.19 Full
      Disclosure.
      None of
      the representations and warranties made by the Seller herein, or in any Closing
      Document furnished or to be furnished by them hereunder contain or will contain
      as of the Closing Date, any untrue statement of material fact, or omits any
      material fact, the omission of which would be misleading.

     

    3.1.20. Exchange
      Act Filings of Company. The
      Company is not delinquent in filing any reports, statements, or other documents
      that Company was required to file with the SEC under the Securities Act and
      the
      Exchange Act, if any. The Company does not have a class of stock registered
      under Section 12 of the Exchange Act and the Company is not obligated to file
      periodic reports under Section 13 or 15(d) of the Exchange Act. 

     

    3.1.21 Filings
      of Seller.
      (a) With
      respect to Seller, during the one (1) year period immediately preceding the
      date
      hereof, Seller has filed all reports, proxy statements, registration statements
      and documents that Seller was required to file with the SEC under the Securities
      Act and the Exchange Act, all of which complied as to form in all material
      respects with applicable requirements of the Securities Act or the Exchange
      Act,
      as the case may be, and the rules and regulations adopted thereunder. As of
      their respective filing dates, each such report, proxy statement, registration
      statement or other document, including any financial statements or schedules
      included therein, did not contain any untrue statement of a material fact or
      omit to state a material fact required to be stated therein or necessary to
      make
      the statements made therein, in light of the circumstances under which they
      were
      made, not misleading. 

     

    (b) The
      financial information set forth by Seller in its most recent filing with the
      SEC
      on Form 10-Q fairly presents, in all material respects, the financial condition
      of Seller and its consolidated subsidiaries and the results of operations of
      Seller and its consolidated subsidiaries as at the end of such reporting period
      and for the period covered thereby.

     

    ARTICLE IV. 
ADDITIONAL
      COVENANTS AND AGREEMENTS OF THE PARTIES

     

    4.1. Brokers
      or Finders.
      Each
      party agrees to hold the others harmless and to indemnify them against the
      claims of any persons or entities claiming to be entitled to any brokerage
      commission, finder’s fee, advisory fee or like payment from such other party
      based upon actions of the indemnifying party in connection with the
      Transaction.

     

    4.2. Dividend.
      To
      the
      extent allowed by law and to the extent such dividend would not affect the
      adequate capitalization of the Company, the Purchaser and Seller agree that
      the
      Company shall declare and pay a dividend in respect of its Company Stock within
      three (3) months of the Closing Date.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V.
CLOSING
      DELIVERIES

     

    5.1. The
      Closing.
      The
      Closing shall take place on or before the Closing Date (unless such date is
      extended by the mutual agreement of the parties) at such location as agreed
      to
      by the parties. Notwithstanding
      the location of the Closing, each party agrees that the Closing may be completed
      by the exchange of undertakings between the respective legal counsel for the
      Seller and Purchaser, provided such undertakings are satisfactory to each
      party’s respective legal counsel. Notwithstanding any other provision of this
      Agreement to the contrary, Purchaser shall have the option to extend the Closing
      Date for one fifteen (15) day period, upon payment to the Seller of $1.00
      (non-refundable).

     

    5.2. Deliveries
      by the Seller.
      The
      Seller hereby agrees to deliver, or cause to be delivered, to Purchaser the
      following items on Closing:

     

    5.2.1. Certified
      Resolutions. Copies
      of
      the resolutions, certified by an officer of the Company, of the Board of
      Directors of the Company: (a) duly electing the persons set forth on
Schedule
      5.2.1
      to serve
      as directors of the Company effective on the closing date of this agreement
      (the
      "Closing
      Date");
      and
      (b) approving the terms of this Agreement for purposes of Nev. Rev. Stat. Sec.
      78.438(1) and 78.378 - 78.3793. 

     

    5.2.2. Charter
      Documents.
      Copies
      of: (a) the Certificate of Incorporation of the Company, certified by the
      Secretary of State of Nevada; and (b) good standing certificates and
      certificates of existence from the Secretary of State of Nevada, evidencing
      that
      the Company is in existence and in good standing under the laws of the State
      of
      Nevada.

     

    5.2.3. Resignations.
      A copy
      of the resignations of the existing director and officer of the Company, to
      be
      effective as of the Resignation Date.

     

    5.2.4. Stock
      Certificates.
      A stock
      certificate or certificates representing the Transferred Shares, together with
      such stock powers, legal opinions and all other documentation required by the
      Company's transfer agent to reissue such shares in the name of
      Purchaser.

     

    5.2.5. Transfer
      Agent Direction.
      A
      direction of the Company to the Company’s transfer agent to register the
      Transferred Shares in the name of the Purchaser with the legend set forth in
      paragraph 2.2.1 of this Agreement or such legend as is otherwise required by
      law.

     

    5.2.6. Minute
      Books.
      A copy
      of the minute books of the Company.

     

    5.2.7. Officer’s
      Certificate.
      A
      certificate, certified by a duly authorized officer of the Seller, stating
      that
      the respective representations and warranties of the Seller and the Company
      contained in this Agreement are true and correct in all material respects on
      and
      as of the Closing Date.

     

    5.3. Deliveries
      by Purchaser.
      Purchaser hereby agrees to deliver to the Seller the following items on
      Closing:

     

    5.3.1. Purchase
      Price. The
      Purchase Price, payable by cashier’s cheque, bank draft or wire transfer as may
      be reasonably required by Seller.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     5.3.2. Investment
      Letter. The
      Investment Letter, executed by the Purchaser.

     

    ARTICLE
      VI.
CONDITIONS
      PRECEDENT TO PURCHASER’ OBLIGATION TO CLOSE

    

    The
      Purchaser’s obligation to purchase the Transferred Shares and to take the other
      actions required to be taken by Purchaser at the Closing is subject to the
      satisfaction, at or prior to Closing, of each of the following conditions (any
      of which may be waived by Purchaser, in whole or in part):

     

    6.1. Performance
      of Covenants.
      The
      Seller shall have performed all covenants and agreements required to be
      completed prior to or on closing, including completion of the deliveries
      required by Section 5.2 of this Agreement.

    

    6.2. Accuracy
      of Representations.
      All of
      Seller’s representations and warranties in this Agreement (considered
      collectively), and each of Seller’s representations and warranties (considered
      individually), must have been accurate in all material respects as of the date
      of this Agreement, and must be accurate in all material respects as of the
      Closing Date as if made on the Closing Date.

    
ARTICLE
VII.

    CONDITIONS
      PRECEDENT TO SELLER’S OBLIGATION TO CLOSE

     

    The
      Seller’s obligation to sell the Transferred Shares and to take the other actions
      required to be taken by the Seller at the Closing is subject to the
      satisfaction, at or prior to Closing, of each of the following conditions (any
      of which may be waived by the Seller, in whole or in part):

     

    7.1. Performance
      of Covenants.
      The
      Purchaser shall have performed all covenants and agreements required to be
      completed prior to or on closing, including completion of the deliveries
      required by Section 5.3 of this Agreement.

    

    7.2. Accuracy
      of Representations.
      All of
      Purchaser’s representations and warranties in this Agreement (considered
      collectively), and each of Purchaser’s representations and warranties
      (considered individually), must have been accurate in all material respects
      as
      of the date of this Agreement, and must be accurate in all material respects
      as
      of the Closing Date as if made on the Closing Date.

    

    ARTICLE
      VIII.

    COVENANTS,
      SURVIVAL OF REPRESENTATIONS AND 

    WARRANTIES

    

    8.1. Covenants
      of Parties Post Closing. Seller
      agrees to cooperate with and provide reasonable assistance to Purchaser and
      the
      Company in compiling and completing the information and documentation required
      for the filing of public registration documents on behalf of the
      Company.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    8.2 Representations,
      Warranties and Covenants to Survive Closing. 
      All
      representations, warranties, covenants, and obligations in this Agreement,
      the
      Closing Documents, the certificates delivered pursuant to Section 5, and any
      other certificate or document delivered by Seller pursuant to this Agreement
      will survive the Closing of the Transaction for a period of two (2) years
      following the Closing. The right to indemnification, payment of Damages (as
      defined below) or other remedy based on such representations, warranties,
      covenants, and obligations will not be affected by any investigation conducted
      with respect to, or any knowledge acquired (or capable of being acquired) at
      any
      time, whether before or after the execution and delivery of this Agreement
      or
      the Closing Date, with respect to the accuracy or inaccuracy of or compliance
      with, any such representation, warranty, covenant, or obligation. The waiver
      of
      any condition based on the accuracy of any representation or warranty, or on
      the
      performance of or compliance with any covenant or obligation, will not affect
      the right to indemnification, payment of Damages, or other remedy based on
      such
      representations, warranties, covenants, and obligations. Each party acknowledges
      and agrees that, except as expressly set forth in this Agreement or any Closing
      Document, no party has made (and no party is relying on) any representation
      or
      warranties of any nature, express or implied, regarding any or relating to
      any
      of the transactions contemplated by this Agreement.

     

    ARTICLE IX.
INDEMNITY

     

    9.1. Seller
      Indemnity.
      Seller
      will indemnify and hold harmless the Purchaser, the Company, and their
      respective representatives, officers, directors, stockholders, controlling
      persons and Affiliates (collectively, the "Purchaser Indemnified Persons")
      for,
      and will pay to the Purchaser Indemnified Persons the amount of, any loss,
      liability, claim or damage (including incidental and consequential damages),
      expenses (including costs of investigation and defense and reasonable attorney's
      fees) or diminution of value, whether or not involving a third-party claim
      (collectively, "Damages"), arising, directly or indirectly, from or in
      connection with:

     

    9.1.1 any
      breach of any representation or warranty made by the Seller in this Agreement
      or
      the Closing Documents, or any other certificate or document delivered by Seller
      pursuant to this Agreement;

     

    9.1.2 
      any
      breach by Seller of any covenant or obligation of the Seller in this
      Agreement.

    

    9.2. Purchaser
      Indemnity.
      Purchaser will indemnify and hold harmless the Seller and its representatives,
      officers, directors, stockholders, controlling persons and Affiliates
      (collectively, the "Seller Indemnified Persons") for, and will pay to the Seller
      Indemnified Persons the amount of, any loss, liability, claim or damage
      (including incidental and consequential damages), expenses (including costs
      of
      investigation and defense and reasonable attorney's fees) or diminution of
      value, whether or not involving a third-party claim (collectively, "Damages"),
      arising, directly or indirectly, from or in connection with:

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    9.2.1 any
      breach of any representation or warranty made by the Purchaser in this Agreement
      or the Closing Documents, or any other certificate or document delivered by
      Purchaser pursuant to this Agreement;

     

    9.2.2 any
      breach by Purchaser of any covenant or obligation of the Purchaser in this
      Agreement. 

    

    9.3. Procedure
      for Indemnification, Third Party Claims.

    

    9.3.1 Promptly
      after receipt by an indemnified party under Section 9.1 or 9.2 of notice of
      the
      commencement of any Proceeding
      against it, such indemnified party will, if a claim is to be made against an
      indemnifying party under such Section 9.1 or 9.2, give notice to the
      indemnifying party of the commencement of such claim, but the failure to notify
      the indemnifying party will not relieve the indemnifying party of any liability
      that it may have to an indemnified party, except to me extent that the
      indemnifying party demonstrates that the defense of such action is prejudiced
      by
      the indemnifying party's failure to give such notice. 

    

    9.3.2 If
      any
      Proceeding referred to in Section
      9.3.1 is brought against an indemnified party and it gives notice to the
      indemnifying party of the commencement of such Proceeding, the indemnifying
      party will, unless the claim involves taxes, be entitled to participate in
      such
      Proceeding and, to the extent that it wishes (unless (i) the indemnifying party
      is also a party to such Proceeding and the indemnified party determines in
      good
      faith that joint representation would be inappropriate, or (ii) the indemnifying
      party fails to provide the reasonable assurance to the indemnified party of
      its
      financial capacity to defend such Proceeding), to assume the defense of such
      Proceeding with counsel satisfactory to the indemnified party and, after notice
      from the indemnifying party to the indemnified party of its election to assume
      the defense of such Proceeding, the indemnifying party will not, as long as
      it
      diligently conducts such defense, be liable to the indemnified party under
      this
      Section 9.3.3 for any fees of other counsel or any other expenses with respect
      to the defense of such Proceeding, in each case subsequently incurred by the
      indemnified party in connection with the defense of such Proceeding, other
      than
      reasonable costs of investigation. If the indemnifying party assumes the defense
      of a Proceeding, (i) it will be conclusively established for purposes of this
      Agreement that the claims made in that Proceeding are within the scope of and
      subject to indemnification; (ii) no compromise or settlement of such claims
      may
      be effected by the indemnifying party without the indemnified party's consent
      unless (A) there is no finding or admission of any violation of Legal
      Requirements or any violation of the rights of any Person and no effect on
      any
      other claims that may be made against the indemnified party, and (B) the sole
      relief provided is monetary damages that are paid in full by the indemnifying
      party; and (iii) the indemnified party will have no liability with respect
      to
      any compromise or settlement of such claims effected without its consent. If
      notice is given to an indemnifying party of the commencement of any Proceeding
      and the indemnifying party does not, within ten (10) days after the indemnified
      party's notice is given, give notice to the indemnified party of its election
      to
      assume the defense of such Proceeding, the indemnifying party will be bound
      by
      any determination made in such Proceeding or any compromise or settlement
      effected by the indemnified party.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    9.3.3 Notwithstanding
      the foregoing, if an indemnified party determines in good faith that there
      is a
      reasonable probability that a Proceeding may adversely affect it or its
      affiliates other than as a result of monetary damages for which it would be
      entitled to indemnification under this Agreement, the indemnified party may,
      by
      notice to the indemnifying party, assume the exclusive right to defend,
      compromise, or settle such Proceeding, but the indemnifying party will not
      be
      bound by any determination of a Proceeding so defended or any compromise or
      settlement effected without its consent (which may not be unreasonably
      withheld).

    

    9.3.4 Each
      of
      the parties hereby consents to the non-exclusive jurisdiction of any court
      in
      which a Proceeding is brought against any Indemnified Person for purposes of
      any
      claims that an Indemnified Person may have under this Agreement with respect
      to
      such Proceeding or the matters alleged therein, and agree that process may
      be
      served on an indemnifying party with respect to such a claim anywhere in the
      world.

    

    ARTICLE
      X.
TERMINATION

     

    10.1. Termination.
      This
      Agreement may, by notice given prior to or at the Closing, be
      terminated:

     

    10.1.1
      by
      either
      Seller or Purchaser if a material breach of any provision of this Agreement
      has
      been committed by the other party and such breach is not waived;

    

    10.1.2
      (i) by
      Purchaser if any of the conditions in Article
      VI have not been satisfied as of the Closing Date; or (ii) by Seller if any
      of
      the conditions in Article VII have
      not
      been satisfied as of the Closing Date;

    

    10.1.3 by
      mutual
      written consent of Purchaser and Seller;

    

    10.1.4 in
      the
      event Seller amends any disclosure schedule or provides any disclosure schedule
      previously not yet provided to Purchaser as of the date of this Agreement,
      and
      Purchaser elects to terminate pursuant to its right set forth in Section
      11.9.

    

    ARTICLE
      XI.
MISCELLANEOUS

     

    11.1. Notices.
      All
      notices, requests, demands and other communications hereunder shall be in
      writing and shall be deemed delivered (i) on next business day if delivered
      by
      hand and (ii) on the fifth business day following mailing if by courier or
      mailed by certified or registered mail, postage prepaid, addressed as
      follows:

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    If
      to the Seller:

    

    Homeland
      Security Network, Inc.

    300
      N.
      Coit Road, Suite 1200,

    Richardson
      TX 75080

    Fax:
      (214) 618-6428

    Attn:
      Mr.
      Charles Norman, Chief Executive Officer

    

    If
      to Purchaser:

    

    Monet
      Acquisition, LLC

    2504
      Green Oak Drive

    Carrollton,
      TX 75010

    Fax:
      (214) 279-0241

    Atten:
      Chris Keefrider

    

    11.2. Assignability
      and Parties in Interest.
      This
      Agreement shall not be assignable by any of the parties hereto without the
      consent of all other parties hereto; provided, however, that Purchaser may
      assign this Agreement without consent of the Seller if such assignment is to
      an
      Affiliate of the Purchaser. This Agreement shall inure to the benefit of and
      be
      binding upon the parties hereto and their respective successors. Nothing in
      this
      Agreement is intended to confer, expressly or by implication, upon any other
      person any rights or remedies under or by reason of this Agreement.

     

    11.3. Expenses.
      Each
      party shall bear its own expenses and costs, including the fees of any attorney
      retained by it, incurred in connection with the preparation of the Closing
      Documents and consummation of the Transaction.

     

    11.4. Governing
      Law. This
      Agreement shall be governed by, and construed and enforced in accordance with,
      the laws of the State of Nevada. Each of the parties hereto consents to the
      personal jurisdiction of the federal and state courts in the State of Nevada
      in
      connection with any action arising under or brought with respect to this
      Agreement. 

     

    11.5. Counterparts.
      This
      Agreement may be executed as of the same effective date in one or more
      counterparts, each of which shall be deemed an original.

     

    11.6. Headings.
      The
      headings and subheadings contained in this Agreement are included solely for
      ease of reference, and are not intended to give a full description of the
      contents of any particular Section and shall not be given any weight whatever
      in
      interpreting any provision of this Agreement.

     

    11.7. Pronouns,
      Etc. Use
      of
      male, female and neuter pronouns in the singular or plural shall be understood
      to include each of the other pronouns as the context requires. The word "and"
      includes the word "or". The word "or" is disjunctive but not necessarily
      exclusive.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    11.8. Complete
      Agreement. This
      Agreement, the Schedules, and the Appendices hereto, and the documents delivered
      pursuant hereto or referred to herein or therein contain the entire agreement
      between the parties with respect to the Transaction and, except as provided
      herein, supersede all previous negotiations, commitments and
      writings.

     

    11.9. Modifications,
      Amendments and Waivers.
      This
      Agreement shall not be modified or amended except by a writing signed by each
      of
      the parties hereto. Subject to Purchaser’s right pursuant to the provisions of
      Section 10.1.4 to terminate this Agreement without liability to the Seller
      or
      the Company prior to the Closing, the Seller may amend any of the disclosure
      schedules referenced herein by giving Purchaser prior written notice of such
      amendments. 

     

    11.10. Severability.
      If any
      term or other provision of this Agreement is invalid, illegal, or incapable
      of
      being enforced by any rule of law or public policy, all other terms and
      provisions of this Agreement will nevertheless remain in full force and effect
      so long as the economic or legal substance of the Transaction is not affected
      in
      any manner adverse to any party hereto. Upon any such determination that any
      term or other provision is
      invalid, illegal, or incapable of being enforced, the parties hereto will
      negotiate in good faith to modify this Agreement so as to effect the original
      intent of the parties as closely as possible in any acceptable manner to the
      end
      that the Transaction are consummated to the extent possible.

     

    [Signature
      page follows.]

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Agreement as of the day and year first above
      written.

    

    
      	 	 	PURCHASER: 
	 	 	 
	 	 	MONET ACQUISITION,
              LLC 
	 	 	 
	 	 	By:  /s/Jack
              Takacs 
	 	 	Name: Jack
              Takacs 
	 	 	Title: Chairman 
	 	 	 
	 	 	 
	 	 	SELLER: 
	 	 	 
	 	 	HOMELAND SECURITY NETWORK,
              INC. 
	 	 	 
	 	 	By:  /s/Peter
              Ubaldi 
	 	 	Name: Peter
              Ubaldi 
	 	 	
              Title:
                President, Chief Financial
                Officer 

            

    

     

     

     

    

    
      
        
        

      

      
        16

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