Document:

a6743391ex102.htm

EXHIBIT 10.2

CONSENT AND FIRST AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS CONSENT AND FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is dated as of May 27, 2011 among each of AMCON Distributing Company, a Delaware corporation, having its principal place of business at 7405 Irvington Road, Omaha, Nebraska 68122 (“AMCON”), Chamberlin Natural Foods, Inc., a Florida corporation, having its principal place of business at 430 North Orlando Avenue, Winter Park, Florida 32789 (“Chamberlin Natural”), Health Food Associates, Inc., an Oklahoma corporation, having its principal place of business at  7807 East 51st Street, Tulsa, Oklahoma 74145 (“Health Food”), and AMCON ACQUISITION CORP., a Delaware corporation, having its principal place of business at 7405 Irvington Road, Omaha, Nebraska 68122 (“AMCON Acquisition”; AMCON, Chamberlin Natural, Health Food and AMCON Acquisition are each referred to as a “Borrower” and are collectively referred to as “Borrowers”), and BANK OF AMERICA, N.A., a national banking association (in its individual capacity, “BofA”), as agent (in such capacity as agent, “Agent”) for itself and all other lenders from time to time a party to the Credit Agreement (as defined below) (“Lenders”), 135 South LaSalle Street, Chicago, Illinois 60603-4105.

 

W I T N E S S E T H:

 

WHEREAS, the AMCON, Chamberlin, Health Food, the Lenders and Agent have entered into that certain Second Amended and Restated Credit Agreement dated as of April 18, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) pursuant to which the Lenders agreed to provide certain credit facilities to the Borrowers;

 

WHEREAS, the Borrowers have requested that the Agent and the Lenders (a) consent to the acquisition of the wholesale convenience distribution business of L.P. Shanks Company (the “Shanks Purchase Transaction”), a Tennessee corporation (the “Seller”), in accordance with the terms of that certain Asset Purchase Agreement dated as of May 26, 2011 by and among Seller, Scot H. Shanks, L. Paul Shanks Revocable Trust under agreement dated June 6, 1990, as amended to date, and AMCON Acquisition (the “Purchase Agreement”), (b) add AMCON Acquisition (the acquirer of the assets under the Purchase Agreement) as a Borrower under the Credit Agreement, and (c) amend the Credit Agreement in order to, among other things, (i) increase the aggregate principal amount of the revolving loans available thereunder from $55,000,000 to $70,000,000 and (ii) effectuate such other amendments as provided herein; and

 

WHEREAS, the Agent and the Lenders are willing to accommodate the Borrowers’ requests on the terms and conditions set forth below.

 

NOW, THEREFORE, for and in consideration of the premises and mutual agreements herein contained and for the purposes of setting forth the terms and conditions of this Amendment, the parties, intending to be bound, hereby agree as follows:

 

  

  

  

1.           Defined Terms; Incorporation of the Credit Agreement.  All capitalized terms which are not defined hereunder shall have the same meanings as set forth in the Credit Agreement, and the Credit Agreement, to the extent not inconsistent with this Amendment, is incorporated herein by this reference as though the same were set forth in its entirety.  To the extent any terms and provisions of the Credit Agreement are inconsistent with the amendments set forth in paragraph 3 below, such terms and provisions shall be deemed superseded hereby.  Except as specifically set forth herein, the Credit Agreement shall remain in full force and effect and its provisions shall be binding on the parties hereto.

 

2.           Limited Consent.

 

(a)           Subject to the terms and conditions of this Amendment (including, without limitation, Section 8 hereof):

 

(i)           The Agent and the Lenders hereby consent to (1) the consummation of the Shanks Purchase Transaction in accordance with the terms and conditions of the Purchase Agreement as in effect on the date hereof, (2) the formation of AMCON Acquisition Corp., a Delaware corporation, to acquire the assets in accordance with the Purchase Agreement, (3) the issuance of promissory notes payable by AMCON Acquisition to the Seller in connection with the Shanks Purchase Transaction in the original principal amount of $2,552,090 (the “Note”) and (4) the execution by AMCON of that certain guaranty dated as of May 26, 2011 (the “Guaranty”) to Seller with respect to the Note and certain other obligations of AMCON Acquisition in accordance with the terms of the Guaranty.

 

(b)           The foregoing consents are expressly limited to the specific transactions described above in this Section 2, and shall not be deemed or otherwise construed to constitute a consent to any other transaction, whether or not similar to the transaction described above in this Section 2.  The Agent and the Lenders have granted the consents set forth in this Section 2 in this particular instance and in light of the facts and circumstances that presently exist, and the grant of such consents shall not constitute a course of dealing or impair the Agent’s or any Lender’s right to withhold any similar consent in the future.

 

3.           Amendments to the Credit Agreement.  The Credit Agreement is hereby amended as follows:

 

(a)           AMCON Acquisition is hereby added as a Borrower to the Agreement and all references to Borrowers in the Agreement shall be deemed to include AMCON Acquisition.

 

(b)           The definition of the term “AMCON Acquisition” is hereby added to Section 1.1 of the Credit Agreement to read as follows:

 

“AMCON Acquisition” means AMCON Acquisition Corp., a Delaware corporation.

 

(c)           The definitions of the term “Maximum Loan Limit” set forth in Section 1.1 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

  

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“Maximum Loan Limit” shall mean Seventy Million and 00/100 Dollars ($70,000,000.00).

 

(d)           The reference to AMCON set forth in the definitions of “Eligible Cigarette Inventory”, “Eligible Confectionary Goods” and “Eligible Tobacco Products” is hereby amended to refer to each of AMCON and AMCON Acquisition.

 

(e)           Sections 2(a)(i), (ii) and (iii) of the Credit Agreement are hereby amended and restated to read as follows:

 

(i)           Up to eighty-five percent (85%) of the face amount (less maximum discounts, credits and allowances which may be taken by or granted to Account Debtors in connection therewith in the ordinary course of  AMCON’s and AMCON Acquisition’s business) of AMCON’s and AMCON Acquisition’s Eligible Accounts or Seventy Million and No/100 Dollars ($70,000,000.00), whichever is less; plus

 

(ii)           Up to eighty-five percent (85%) of the lower of cost or market value of Eligible Cigarette Inventory or Thirty-Two Million and No/100 Dollars ($32,000,000.00), whichever is less; plus

 

(iii)           Up to seventy percent (70%) of the lower of cost or market value of AMCON’s and AMCON Acquisition’s Eligible Inventory (consisting solely of AMCON’s and AMCON Acquisition’s Eligible Inventory other than Eligible Cigarette Inventory set forth in clause (ii) above) or Twenty Million and No/100 Dollars ($20,000,000.00), whichever is less; plus

 

(f)           The reference to the Maximum Revolving Loan Limit of “Fifty-Five Million Dollars ($55,000,000)” set forth in Section 2(a) is hereby deleted and the words “Seventy Million and No/100 Dollars ($70,000,000.00)” are hereby added in its place.

 

(g)           Section 11(f) is hereby amended to add the following representation:

 

“AMCON Acquisition is a corporation, duly organized, validly existing and in good standing in the State of Delaware, its state organizational identification number is 4986703and such Borrower is duly qualified and in good standing in all states where the nature and extent of the business transacted by it or the ownership of its assets makes such qualification necessary.

 

(h)           The aggregate amount of each Lenders’ Revolving Loan Commitments set forth on the signature page to the Credit Agreement is hereby amended as set forth on the signature page to this Amendment.

 

  

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4.           Representations, Covenants and Warranties; No Default.  Except for the representations and warranties of the Borrowers made as of a particular date, the representations, covenants and warranties set forth in Sections 11, 12 and 13 of the Credit Agreement shall be deemed made (in the case of AMCON Acquisition) or remade (in the case of all other Borrowers) as of the date hereof by the Borrowers; provided, however, that any and all references to the Credit Agreement in such representations and warranties shall be deemed to include this Amendment.  The Borrowers hereby represent, warrant and covenant that after giving effect to the amendments and consents contained in this Amendment, no Default or Event of Default has occurred and is continuing.  The Borrowers represent and warrant to Agent and the Lenders that the execution and delivery by each Borrower of this Amendment and the performance by it of the transactions herein contemplated (i) are and will be within its organizational powers, (ii) have been authorized by all necessary organizational action, and (iii) are not and will not be in contravention of any order of any court or other agency of government, of law or any other indenture, agreement or undertaking to which such Borrower is a party or by which the property of such Borrower is bound, or be in conflict with, result in a breach of, or constitute (with due notice and/or lapse of time) a default under any such indenture, agreement or undertaking, which conflict could reasonably be expected to have a Material Adverse Effect or result in the imposition of any lien, charge or encumbrance of any nature on any of the properties of such Borrower.

 

5.           Affirmation.  Except as specifically amended pursuant to the terms hereof, the Credit Agreement and the Other Agreements (and all covenants, terms, conditions and agreements therein), shall remain in full force and effect, and are hereby ratified and confirmed in all respects by the Borrowers.  The Borrowers covenant and agree to comply with all of the terms, covenants and conditions of the Credit Agreement, as amended hereby, notwithstanding any prior course of conduct, waivers, releases or other actions or inactions on Agent’s or any Lender’s part which might otherwise constitute or be construed as a waiver of or amendment to such terms, covenants and conditions.  The Borrowers hereby represent and warrant to Agent and Lenders that as of the date hereof, there are no claims, counterclaims, offsets or defenses arising out of or with respect to the Liabilities.  Each Borrower hereby confirms its existing grant to Agent of a Lien on and security interest in the Collateral.  Each Borrower hereby confirms that all Liens and security interests at any time granted by it to Agent continue in full force and effect and secure and shall continue to secure the Liabilities.  Nothing herein contained is intended to in any manner impair or limit the validity, priority and extent of Agent’s existing security interest in and Liens upon the Collateral.

 

6.           Joinder of New Borrower.

 

(a)           AMCON Acquisition hereby (a) confirms that it has received a copy of the Credit Agreement, as amended by this Amendment, the other loan documents executed in connection therewith and such other documents and information as it has deemed appropriate and (b) agrees that it will be bound by the provisions of the Credit Agreement, as amended by this Amendment, and will perform in accordance with its terms all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Borrower.

 

(b)           From and after the date hereof, AMCON Acquisition shall be a party to the Credit Agreement, as amended by this Amendment, and have the rights and obligations of a Borrower thereunder and under the other loan documents executed in connection therewith and shall be bound by the provisions thereof.  AMCON Acquisition hereby acknowledges and confirms the grant of a first priority security interest in all of its assets to Agent as security for all Liabilities in accordance with the provisions of Section 5(a) of the Credit Agreement.

 

  

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7.           Fees and Expenses.  The Borrowers agree to pay on demand all costs and expenses incurred by Agent and the Lenders in connection with the drafting, negotiation, execution and implementation of this Amendment including, but not limited to, the expenses and reasonable fees of counsel for Agent and the Lenders.  In addition, the Borrowers shall pay on the date of this Amendment to Agent, for the account of each Lender, an amendment fee which shall be deemed earned as of the date of this Amendment and shall be non-refundable, in the amount of Fifteen Thousand Dollars ($15,000).

 

8.           Closing Documents.  This Amendment shall be deemed effective as of the date hereof provided that Borrowers shall deliver to Agent the following documents and/or complete the following requirements (collectively, the “Closing Requirements”) upon execution hereof (in each case in form and substance satisfactory to Agent and the Lenders):

 

(a)           this Amendment executed by the Borrowers and the Agent;

 

(b)           the documents, instruments and agreements set forth on the Closing Checklist attached hereto as Annex 1;

 

(c)           the Shanks Purchase Transaction shall have been consummated in accordance with the Purchase Agreement on terms reasonably acceptable to Agent (including, without limitation, all material third party approvals necessary in connection with the Shanks Purchase Transaction shall have been obtained and be in full force and effect), and no provision of the Purchase Agreement shall have been waived, amended or supplemented in a manner materially adverse to Borrowers or Lenders without the consent of the Agent;

 

(d)           AMCON Acquisition shall maintain all of its principal deposit accounts with the Agent or, in the alternative, provide the Agent with a Control Agreement in form and substance acceptable to the Agent, for all third party bank accounts;

 

(e)           receipt by Agent of the amendment fee described in Section 7 above; and

 

(f)           such other documents, instruments, agreements, opinions or certificates as required by Agent.

 

9.           Continuing Effect.  Except as otherwise specifically set forth herein, the provisions of the Credit Agreement shall remain in full force and effect.

 

10.           Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.  Receipt of an executed signature page to this Agreement by facsimile or other electronic transmission shall constitute effective delivery thereof and shall be deemed an original signature hereunder.

 

[SIGNATURE PAGE FOLLOWS]

 

  

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IN WITNESS WHEREOF, the parties hereto have duly executed this Consent and First Amendment to Second Amended and Restated Credit Agreement as of the date first above written.

 

	
BORROWERS:

	
AMCON DISTRIBUTING COMPANY

 

By:           /s/ Andrew C. Plummer                                

Title:          VP & CFO                                                     

	 	 
	  	
CHAMBERLIN NATURAL FOODS, INC.

 

By:           /s/ Andrew C. Plummer                               

Title:          Secretary                                                     

	 	 
	  	
THE HEALTH FOOD ASSOCIATES, INC.

 

By:           /s/ Andrew C. Plummer                              

Title:          Secretary                                                    

	 	 
	  	
AMCON ACQUISITION CORP.

 

By:           /s/ Andrew C. Plummer                              

Title:          President                                                    

 

 

  

  

  

 

	
LENDERS:

	
BANK OF AMERICA, N.A., as Agent and a Lender

 

By:           /s/ James Fallahay                                                     

James Fallahay

Title:       Vice President

 

Revolving Loan Commitment: $46,666,667.09

 

	  	
M&I MARSHALL & ILSLEY BANK, as a Lender

 

By:           /s/ Brian Rathke                                                  

Title:        Vice President                                                     

 

Revolving Loan Commitment:$23,333,332.91Exhibit 10.1

THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 (THE "1933 ACT") NOR REGISTERED UNDER ANY STATE
SECURITIES LAWS AND ARE "RESTRICTED SECURITIES" AS THAT TERM IS DEFINED IN RULE
144, UNDER THE 1933 ACT. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE 1933 ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE 1933
ACT THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE
COMPANY.

                   AGREEMENT FOR THE EXCHANGE OF COMMON STOCK

     Agreement made this 27th day of May, 2011, by and between Domark
International, Inc., a Nevada corporation, OTCBB DOMK (the "Issuer"), and Silk
for Less, Inc., a Florida corporation (the "Company"), and the shareholders of
Company, (the "Shareholders").

     In consideration of the mutual promises, covenants, and representations
contained herein, and other good and valuable consideration,

     THE PARTIES HERETO AGREE AS FOLLOWS:

1. TERMS.

     Subject to the terms and conditions of this Agreement, the Issuer agrees:

     i.   That the total common shares issued and outstanding of the Issuer at
          Closing shall be 110,000 Convertible Preferred Series A par value
          $.001 and Thirty Six Million Four Hundred Sixty Thousand Eight Hundred
          Thirty Five (36,460,835) common shares. The Convertible Preferred
          shares are convertible at the rate of one share of convertible
          preferred for 1000 shares of common stock of the Issuer.

     ii.  That the Issuer at Closing shall transfer to the Shareholders, ten
          thousand shares of preferred convertible series A stock of Issuer,
          $.001 par value, in exchange for 100% of the issued and outstanding
          shares of Company, such that Company shall become a wholly owned
          subsidiary of the Issuer.

     iii. That the Issuer requires the Company to:

          a)   Agree to the announcement of the transaction with the SEC on form
               8K within four days of the execution of this agreement, if
               applicable.
          b)   Execute any and all documentation to reflect the intent of the
               parties that Company becomes a wholly owned subsidiary of Issuer.

     iv.  That this transaction is subject to delivery by the Issuer of all
          required documents pre and post closing to effectuate the transaction

     v.   That Issuer shall take all necessary corporate actions so that at
          closing, all actions required of Issuer will be in accordance with the
          Bylaws of Issuer.

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     2. REPRESENTATIONS OF ISSUER Issuer is in good standing under the laws of
Nevada, and has all necessary corporate powers to own properties and carry on a
business, and is duly qualified to do business and is in good standing in
Nevada. All actions taken by the incorporators, directors and shareholders of
Issuer have been valid and in accordance with the laws of the State of Nevada.

     i.   Capital. The authorized capital stock of Issuer consists of two
          million shares of preferred convertible series A stock, $.001 par
          value of which 100,000 Shares are issued and outstanding, and
          (200,000,000) shares of common stock, $.001 par value, of which
          36,460,835 shares are issued and outstanding. All outstanding shares
          are fully paid and non-assessable, free of pre-emptive rights. At the
          Closing, there will be no outstanding subscriptions, options, rights,
          warrants, convertible securities, or other agreements or commitments
          obligating Issuer to issue or to transfer from treasury any additional
          shares of its capital stock, except as may be disclosed in the Issuer
          SEC filings.

     ii.  SEC Reports. Issuer has filed all required forms, reports, statements,
          schedules and other documents with the Securities and Exchange
          Commission ("SEC") (collectively, the "Issuer SEC Reports"). The
          financial statements, including all related notes and schedules,
          contained in the Issuer SEC Reports (or incorporated by reference
          therein) fairly present the consolidated financial position of Issuer
          as at the respective dates thereof and the consolidated results of
          operations and cash flows of Issuer for the periods indicated in
          accordance with generally accepted accounting principles ("GAAP")
          applied on a consistent basis throughout the periods involved (except
          for changes in accounting principles disclosed in the notes thereto)
          and subject in the case of interim financial statements to normal
          year-end adjustments and the absence of notes. For purposes of this
          Agreement, the balance sheet of Issuer as of last filing date of
          Issuer prior to Closing, is referred to as the "Issuer Balance Sheet"
          and the date thereof is referred to as the "Issuer Balance Sheet
          Date".

     iii. Absence of Changes. Since the Issuer Balance Sheet Date, there has not
          been any change in the financial condition or operations of Issuer,
          except changes in the ordinary course of business, which changes have
          not in the aggregate been materially adverse to Issuer.

     iv.  Liabilities. Issuer does not have any debt, liability, or obligation
          of any nature, whether accrued, absolute, contingent, or otherwise,
          and whether due or to become due, that is not reflected on the Issuers
          Balance Sheet and schedules contained in the Issuer's SEC filings at
          www.sec.gov. Issuer is not aware of any pending, threatened, or
          asserted claims, lawsuits or contingencies involving Issuer or its
          common stock, except as to matters set forth in the Issuer's SEC
          filings. There is no material dispute of any kind between Issuer and
          any third party, and no such dispute will exist at Closing not fully
          disclosed to Company at closing.

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     v.   Ability to Carry Out Obligations. Issuer has the right, power, and
          authority to enter into and perform its obligations under this
          Agreement. The execution and delivery of this Agreement by Issuer and
          the performance by Issuer of its obligations hereunder will not cause,
          constitute, or conflict with or result in (a) any breach or violation
          or any of the provisions of or constitute a default under any license,
          indenture, mortgage, charter, instrument, articles of incorporation,
          bylaw, or other agreement or instrument to which Issuer is a party, or
          by which it may be bound, nor will any consents or authorizations of
          any party other than those hereto be required, (b) an event that would
          cause Issuer to be liable to any party, or (c) an event that would
          result in the creation or imposition of any lien, charge, encumbrance
          on any asset of Issuer.

     vi.  Full Disclosure. None of the representations and warranties made by
          the Issuer in this Agreement and the Officers Certificate to be
          delivered to Company and Shareholders at closing, contains any untrue
          statement of a material fact, or omits any material fact, the omission
          of which would be misleading.

     vii. Contract and Leases. Issuer is currently carrying on its business and
          is not a party to contracts, agreements, or lease other than those
          items disclosed on the Issuer Balance Sheet. No person holds a power
          of attorney from Issuer.

     viii. Compliance with Laws. To the best of its knowledge, Issuer has
          complied with all federal, state, and local statutes, laws, and
          regulations pertaining to Issuer. To the best of its knowledge, Issuer
          has complied with all federal and state securities laws in connection
          with the issuance, sale, and distribution of its securities.

     ix.  Litigation. Issuer is not (and has not been), except as may be
          disclosed in the Issuers SEC filings and press releases, a party to
          any suit, action, arbitration, or legal, administrative, or other
          proceeding, or pending governmental investigation. To the best
          knowledge of the Issuer, there is no basis for any such action or
          proceeding and no such action or proceeding is threatened against
          Issuer, and Issuer is not subject to or in default with respect to any
          order, writ, injunction, or decree of any federal, state, local, or
          foreign court, department, agency, or instrumentality.

     x.   Conduct of Business. From the Issuer Balance Sheet Date to the
          Closing, Issuer has conducted its business in the normal course, and
          has not (1) sold, pledged, or assigned any assets, other than in the
          ordinary course of business; (2) amended its Certificate of
          Incorporation or ByLaws, except recent action taken to amend Issuers
          articles to change the name of the Issuer to Armada Sports &
          Entertainment, Inc.; (3) declared dividends; (4) redeemed or sold
          stock or other securities; (5) incurred any liabilities, other than in
          the ordinary course of business; (6) acquired or disposed of any
          assets, other than in the ordinary course of business; (7) entered
          into any contract, other than in the ordinary course of business; (8)
          guaranteed obligations of any third party; or (9) entered into any
          other transaction, other than in the ordinary course of business.

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     xi.  Documents. All minutes, consents, or other documents pertaining to
          Issuer to be delivered at Closing shall be valid and in accordance
          with the laws of the State of Nevada.

     xii. Title. At the Closing all shares issued to Shareholders shall be
          non-assessable; and (ii) free and clear of all liens, security
          interests, pledges, charges, claims, encumbrances and restrictions of
          any kind. There is no applicable local, state, or federal law, rule,
          regulation, or decree which would, as a result of the issuance of the
          Shares to Shareholders, impair, restrict, or delay Shareholders voting
          rights with respect to the Issuer Shares.

     xiii. Brokers. Issuer has not retained any Broker or finder to which
          compensation would be due in connection with this transaction.

     3. REPRESENTATIONS AND WARRANTIES OF COMPANY. Company represents and
warrants to Issuer the following:

     i.   Organization. The Company is a corporation duly organized, validly
          existing, and in good standing under the laws of the State of Florida,
          and it has all necessary corporate powers to own properties and carry
          on a business, and is duly qualified to do business and is in good
          standing in the jurisdictions where qualification is required. All
          actions taken by the incorporators, directors, and stockholders of
          Company have been valid and in accordance with the laws of the State
          of Florida.

     ii.  Capital. The authorized capital stock of Company consists of 1000
          common shares, $ 1.00 par value of which 500 shares are issued and
          outstanding (Shares). The Shareholders are the beneficial owners of
          the shares and have sole management and dispositive power over the
          securities, and there are no other agreements or commitments
          obligating the Company to issue or to transfer from treasury any
          additional shares of its capital stock.

     iii. If a requirement of the materiality test, Company shall engage an
          auditor after closing to perform the necessary audits required under
          the rules and regulations of the Securities and Exchange Commission.
          If applicable, Audited financials on an 8KA must be filed with the SEC
          within 75 days of closing of this transaction. Company agrees to take
          all steps to insure that the auditor has full access to the Company
          books and records in order to timely file the reports required under
          the rules. Issuer shall issue but shall hold back the shares to be
          issued to Shareholders pursuant to paragraph 1(ii) under the audit is
          completed and filed with the SEC.

     iv.  Absence of Changes. Since the date of the Company financial
          statements, there has not been any change in the financial condition
          or operations of Company, except changes in the ordinary course of
          business.

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<PAGE>
     v.   Liabilities. Company does not have any debt, liability, or obligation
          of any nature, whether accrued, absolute, contingent, or otherwise,
          and whether due or to become due, that is not reflected on the
          Financial Statements provided to Issuer at closing. Company is not
          aware of any pending, threatened, or asserted claims, lawsuits or
          contingencies involving its capital stock.

     vi.  Ability to Carry Out Obligations. Company has the right, power, and
          authority to enter into and perform its obligations under this
          Agreement. The execution and delivery of this Agreement by Company and
          the performance by Company of its obligations hereunder will not
          cause, constitute, or conflict with or result in (a) any breach of
          violation or any of the provisions of or constitute a default under
          any license, indenture, mortgage, charter, instrument, articles of
          incorporation, bylaw, or other agreement or instrument to which
          Company is a party, or by which either of them may be bound, nor will
          any consents or authorizations of any party other than those hereto be
          required; (b) an event that would cause Company to be liable to any
          party; or (c) an event that would result in the creation or imposition
          of any lien, charge, encumbrance on any asset of Company.

     vii. Full Disclosure. None of the representations and warranties made by
          Company herein contains any untrue statement of a material fact, or
          omits any material fact the omission of which would be misleading.

     viii. Compliance with Laws. Company has complied with, and is not in
          violation of any federal, state, or local statute, law, and/or
          regulation pertaining to them. Company has complied with all federal
          and state securities laws in connection with the issuance, sale, and
          distribution of its securities.

     ix.  Litigation. Company is not and has never a party to any suit, action,
          arbitration, or legal, administrative, or other proceeding, or pending
          governmental investigation. To the best knowledge of Company, there is
          no basis for any such action or proceeding and no such action or
          proceeding is threatened against Company, and Company is not subject
          to or in default with respect to any order, wit, injunction, or decree
          of any federal, state, local, or foreign court, department, agency, or
          instrumentality.

     x.   Conduct of Business. From the date of Company financial statements to
          the Closing Date, Company has conducted its business in the normal
          course, and has not (1) sold, pledged, or assigned any assets other
          than in the ordinary course of business; (2) amended its Certificate
          of Incorporation or Bylaws; (3) declared dividends; (4) redeemed or
          sold stock or other securities except in the ordinary course of
          business; (5) incurred any liabilities not in the ordinary course of
          business; (6) acquired or disposed of any assets other than in the
          ordinary course of business; (7) entered into any contract other than

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<PAGE>
          in the ordinary course of business; (8) guaranteed obligations of any
          third party; or (9) entered into any other transactions other than in
          the ordinary course of business.

     xi.  Documents. All minutes, consents, or other documents pertaining to
          Company and to be delivered by Company to Issuer, are true, complete,
          and correct, and are valid and in accordance with applicable law.

     xii. Title. The Shares of Company to be delivered to Issuer will be, at
          closing, free and clear of all liens, security interests, pledges,
          charges, claims, encumbrances and restrictions of any kind. None of
          the Shares are subject to any voting trust or agreement. No person
          holds or has the right to receive any proxy or similar instrument with
          respect to the Shares, except as provided in this Agreement. Company
          is not a party to any agreement that offers or grants to any person
          the right to purchase or acquire any of the Shares. There is no
          applicable local, state, or federal law, rule, regulation, or decree
          which would, as a result of the transfer of the Shares to Issuer,
          impair, restrict, or delay Issuer's voting rights with respect to the
          Shares.

     xiii. Counsel. Company and Shareholders represent and warrant that prior to
          Closing, that they are represented by independent counsel or have had
          the opportunity to retain independent counsel to represent them in
          this transaction and that prior to Closing, Counsel for the Company
          and Shareholders have not represented either the Issuer or Issuer's
          stockholders in any manner whatsoever known to the Company.

     xiv. Brokers. Company and/or Shareholders have not retained a broker in
          connection with this transaction.

     xv.  Conflicts of Interests of Issuer Company and Shareholders have
          reviewed and understand the conflicts of interests, if any, between
          the Issuer and its officers and directors as disclosed in the Issuers
          filings with the SEC, if any.

     4. INVESTMENT INTENT.

     i.   Restricted Shares. Shareholder understands that (A) the Issuer Shares
          Shareholder is receiving from Issuer under this Agreement have not
          been registered under the Securities Act of 1933, as amended ("the
          Act") or the securities laws of any state, based upon an exemption
          from such registration requirements pursuant to Section 4(2) of the
          Act; (B) the Issuer Shares are and will be "restricted securities", as
          said term is defined in Rule 144 of the Rules and Regulations
          promulgated under the Act; and (C) the Issuer Shares may not be sold
          or otherwise transferred unless exemptions from such registration
          provisions are available with respect to said resale or transfer or
          the shares have been registered under the Act.

                                       6
<PAGE>
     ii.  Transferability. Shareholder will not sell or otherwise transfer any
          of the Issuer Shares, any interest therein unless and until (A) the
          Issuer Shares shall have first been registered under the Act and/or
          all applicable state securities laws; or (B) Shareholder shall have
          first delivered to Issuer a written opinion of counsel, which counsel
          and opinion (in form and substance) shall be reasonably satisfactory
          to Issuer, to the extent that the proposed sale or transfer is exempt
          from the registration provisions of the Act and all applicable state
          securities laws.

     iii. Investment Intent. Shareholder is acquiring the Issuer Shares for
          Investment purposes only, without a view for resale or distribution
          thereof.

     iv.  Legend. Shareholder understands that the certificates representing the
          Issuer Shares will bear the following legend:

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT
          BE SOLD, TRANSFERRED, FURTHER PLEDGED, HYPOTHECATED OR OTHERWISE
          DISPOSED OF IN ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT FOR
          SUCH SECURITIES UNDER SAID ACT OR (II) AN OPINION OF COMPANY COUNSEL
          THAT SUCH REGISTRATION IS NOT REQUIRED.

     v.   Closing. The Closing of the share exchange and the transactions
          contemplated by this Agreement (the "Closing") shall be upon the
          completion of due diligence by all parties, the execution of this
          agreement by all parties, and the delivery of all documents and items
          required to be delivered under this agreement. Both parties to this
          agreement acknowledge that the closing date may be modified by mutual
          written consent of the parties.

     5. Documents to be Delivered at Closing.

     i.   By Issuer:

     (1)  Resolution of the Board of Directors authorizing the issuance of
          certificates for the number of shares to be delivered to Shareholders
          and a resolution approving the transaction.

     (2)  Certificates for the number of Issuer preferred shares registered in
          the names of the shareholders as set forth in the attached
          shareholders list.

     (3)  Such other resolutions of Issuer directors and officers and writings
          as may reasonably be required by Company and Shareholders.

     (4)  Such other agreements relating to the transaction as may reasonably be
          required by the Company or Shareholders.

     (5)  Issuer Officer Certificate and Disclosures

     (6)  Certificate of Good Standing from the State of Nevada

                                       7
<PAGE>
     By Company and Shareholders:

     (7)  Delivery to the Issuer, certificate(s) evidencing the Company Shares,
          and such stock powers as are required in order to transfer to Issuer
          good and marketable title to the Shares.

     (8)  Resolution by the Board of Directors of Company approving the
          transaction.

     (9)  Copies of the basic corporate records, including bylaws, minute books
          and articles of incorporation, together with financial statements with
          supporting schedules for the periods ending 12-31-09, 12-31-10 and
          2011 year to date of closing. Company shall retain all other records
          at its current principal address.

     (10) A certificate of good standing from the State of Incorporation.

     (11) Such other resolutions of Company and Shareholder and/or directors as
          may reasonably be required by Issuer.

     (12) Such other agreements or documents relating to the transaction as may
          reasonably be required by the Issuer.

     7. ARBITRATION. Any controversy or claim arising out of, or relating to,
this Agreement, or the making, performance, or interpretation thereof, shall be
settled by arbitration in Orlando, Florida in accordance with the Commercial
Rules of the American Arbitration Association then existing. The arbitrator
assigned shall have authority and power to decide all issues. Judgment on the
arbitration award may be entered in any court having jurisdiction over the
subject matter of the controversy. The prevailing party in such claim or
controversy shall be entitled to recover all costs and expenses of such claim or
controversy, including attorney's fees from the non-prevailing party.

     8. POST-CLOSING AGREEMENTS.

     I.   Further Assurances. The parties shall execute such further documents
          and perform such further acts, as may be necessary to effect the
          transactions contemplated hereby, on the terms herein contained and
          otherwise to comply with the terms of this Agreement, provided, that,
          except as contemplated by this Agreement, no party shall be required
          to waive any right or incur an obligation in connection therewith.

     II.  Indemnification of Directors and Officers. For at least seven (7)
          years after the Closing Date, Issuer shall (a) maintain in effect the
          current provisions regarding the indemnification of officers and
          directors contained in Issuer's Certificate of Incorporation and
          Bylaws; provided, however, Issuer may adopt new indemnification
          provisions no less favorable than the current provisions as to the
          persons who served as directors and officers of Issuer prior to the
          Closing Date; and (b) indemnify the persons who served as directors
          and officers of Issuer prior to the Closing Date to the fullest extent

                                       8
<PAGE>
          to which Issuer is permitted to indemnify such officers and directors
          under its Certificate of Incorporation and ByLaws and applicable law
          as in effect immediately prior to the Closing Date.

     III. Press Release Issuer, Company and Shareholders agree that no public
          announcement of the specifics of this transaction or a disclosure of
          the parties to this agreement will be made until the 8K filing with
          the SEC is completed by Issuer and on record. The parties hereto agree
          that Company will take steps to insure that this provision is adhered
          to by Company and Shareholders, principals, employees, agents and
          representatives.

     IV.  PUT. Issuer shall grant to Shareholders, the right to PUT shares of
          Issuer received in this transaction to Issuer and receive back shares
          of Company delivered to Issuer at closing from the shareholders of
          Company, upon the occurrence of any one of the following; 1) the
          filing of a voluntary petition in bankruptcy by Issuer, 2) suspension
          of trading in the stock of Issuer for a period of time exceeding 20
          days, or 3) a judgment entered against the Issuer in an amount in
          excess of $100,000 4) the failure by the Issuer to timely file its
          required 10Qs and 10Ks with the SEC, including any amendments thereto,
          resulting in a delisting of the Issuer's securities from the OTC
          Bulletin Board 5) the failure of the Issuer to file a registration
          statement to register shares under its equity funding agreement within
          sixty days of the closing of this transaction 6) the failure by the
          SEC to declare the registration statement to be effective within one
          hundred twenty days of the date of filing of the registration
          statement. Shareholder(s) shall notice Issuer of the Put in writing
          detailing the cause of the PUT, and tender the shares issued to
          shareholder(s) in this transaction. Issuer, upon receipt of the Put
          and the Issuer shares shall transfer the Company shares to
          Shareholder(s) received in this transaction immediately. Issuer's
          obligation to honor the Put by shareholder is subject to and wholly
          conditioned upon immediate repayment of all sums due from loans or
          advances made by Issuer to Company prior to the date of the Put by
          shareholder.

     9. Miscellaneous.

     i.   Captions and Headings. The headings throughout this Agreement are for
          convenience and reference only, and shall in no way be deemed to
          define, limit, or add to the meaning of any provision of this
          Agreement.

     ii.  No Oral Change. This Agreement and any provision hereof may not be
          waived, changed, modified, or discharged orally, but only by an
          agreement in writing signed by the party against whom enforcement of
          any waiver, change, modification, or discharge is sought.

     iii. Non Waiver. Except as otherwise expressly provided herein, no waiver
          of any covenant, condition, or provision of this Agreement shall be
          deemed to have been made unless expressly in writing and signed by the
          party against whom such waiver is charged; and (1) the failure of any
          party to insist in any one or more cases upon the performance of any
          of the provisions, covenants, or conditions of this Agreement or to
          exercise any option herein contained shall not be construed as a

                                       9
<PAGE>
          waiver or relinquishment for the future of any such provisions,
          covenants, or conditions; (2) the acceptance of performance of any
          thing required by this Agreement to be performed with knowledge of the
          breach or failure of a covenant, condition, or provision hereof shall
          not be deemed a waiver of such breach or failure; and (3) no waiver of
          any party of one breach by another party shall be construed as a
          waiver with respect to any subsequent breach.

     iv.  Time of Essence. Time is of the essence of this Agreement and of each
          and every provision hereof.

     v.   Entire Agreement. This Agreement contains the entire Agreement and
          understanding between the parties hereto, and supersedes all prior
          agreements and understandings.

     vii. Notices. All notices, requests, demands, and other communications
          under this Agreement shall be in writing and shall be deemed to have
          been duly given on the third day after mailing if mailed to the party
          to whom notice is to be given, by first class mail, registered or
          certified, postage prepaid, and properly addressed, and by fax, as
          follows:

          Company and Shareholder:

          Luis Cardenas
          Silk for Less, Inc.
          1750 S Ronald Reagan Blvd
          Altamonte Springs, Florida 32701

          ISSUER:

          Domark International, Inc.
          1809 East Broadway #125
          Oviedo, Florida 32765

     vi.  Counterparts. This Agreement may be executed simultaneously in one or
          more counterparts, each of which shall be deemed an original, but all
          of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the day
first written above.

Domark International, Inc.                       Silk For Less, Inc.

By: /s/ R. Thomas Kidd                           By: /s/ Luis Cardenas
   ----------------------------                     ----------------------------
          Its CEO                                        Its President

                                                    ----------------------------
                                                         Luis Cardenas

                                       10

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