Document:

EXHIBIT 10.1

    
       

      
        EXHIBIT
          10.1

        SECURITIES
          PURCHASE AGREEMENT

         

        

        THIS
          SECURITIES PURCHASE AGREEMENT is entered into as of April 13,
          2006
          (the “Agreement”),
          by
          and by and among Commerce Development Corporation, Ltd., a Delaware corporation
          (the “Company”),
          on
          the one hand, and each of the undersigned buyers identified on the signature
          pages hereto and on Schedule
          A
          attached
          hereto (collectively, the “Buyers”).
          Each
          party to this Agreement is referred to herein as a “Party,”
and
          they are all referred to collectively as “Parties.”
          

         

        W
          I T N E
          S S E T H:

         

        WHEREAS,
          the board of directors of the Company has declared a 2,184-for-1 reverse
          stock
          split (“Reverse
          Split”),
          that
          became effective on April 7, 2006 (“Reverse
          Split Effective Date”);
          

         

        WHEREAS,
          immediately following the Reverse Split, the Company, formerly a Maryland
          corporation, reincorporated into Delaware (“Reincorporation”);
          

         

        WHEREAS,
          the board of directors has approved the Reverse Split and Reincorporation,
          and
          the stockholders of the Company approved the Reverse Split and Reincorporation
          at a special meeting held at 10:00 am on April 7, 2006;

         

        WHEREAS,
          in order to pay certain costs, expenses and fees of the Company, the Company
          wishes to issue and sell and the Buyers wish to purchase up to 1,302,999
          additional shares (the “Shares”)
          of the
          Company’s common stock par value $0.001 per share (the “Company
          Common Stock”)
          at
$0.0384
          per
          share; and 

         

        WHEREAS,
          the board of directors of the Company have duly approved the foregoing
          issuance
          of Shares. 

         

        NOW,
          THEREFORE, in consideration of the premises and of the mutual representations,
          warranties and agreements set forth herein, the Parties hereto agree as
          follows:

         

        ARTICLE
          I

         

        PURCHASE
          OF SECURITIES

         

        1.1 Incorporation
          of Recitals.
          The
          provisions and recitals set forth above are hereby referred to and incorporated
          herein and made a part of this Agreement by reference.

         

        1.2 Purchase
          of Shares.
          Subject
          to the terms and conditions of this Agreement, on the Closing Date (as
          hereinafter defined) the Company shall issue and each of the Buyers shall
          purchase such amount of the Shares and for such consideration set forth
          opposite
          such Buyer’s name (the aggregate purchase price referred to herein as the
“Purchase
          Price”)
          as set
          forth on Schedule
          A
          attached
          hereto. 

         

        1.3 Closing.
          The
          Closing shall take place on April 13, 2006 (the “Closing
          Date”),
          or at
          some other time and date as agreed by the parties. On the Closing Date,
          the
          Company shall (i) cause the transfer agent of the Company to reflect the
          new
          issuance of Shares on the stock ledger of the Company, and (ii) shall cause
          the
          transfer agent to promptly prepare and deliver to each of the Buyers, stock
          certificate(s) evidencing the Shares to be purchased in the name of the
          Buyers
          and/or its designees (the “Share
          Certificates”)
          free
          and clear of any Encumbrances (defined below). On the Closing Date, the
          Buyers
          shall pay (or cause to be paid) to the Company the aggregate Purchase Price
          of
$50,000
          (the
“Closing
          Payment”)
          for
          the purchase of the Shares, such
          Closing Payment to be paid at the Closing to the Company by delivering
          to the
          Company cash in such amount by cashier's check or by wire transfer of
          immediately available funds to such account as the Company may specify
          in
          writing to Purchaser at least one (1) business day prior to the
          Closing. 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        ARTICLE
          II

         

        REPRESENTATIONS
          AND WARRANTIES OF THE COMPANY

         

        The
          Company represents and warrants to Buyer that now and/or as of the
          Closing:

         

        2.1  
          Due
          Organization and Qualification; Subsidiaries; Due Authorization.

         

        (a) The
          Company is a corporation duly incorporated, validly existing and in good
          standing under the laws of its jurisdiction of formation, with full corporate
          power and authority to own, lease and operate its respective business and
          properties and to carry on its respective business in the places and in
          the
          manner as presently conducted. The Company is in good standing as a foreign
          corporation in each jurisdiction in which the properties owned, leased
          or
          operated, or the business conducted, by it requires such qualification
          except
          for any failure, which when taken together with all other failures, is
          not
          likely to have a material adverse effect on the business of the Company,
          taken
          as a whole. For
          purposes of this Agreement, a “material adverse effect” means any effect or
          change that is or would be materially adverse to the business, operations,
          assets, condition (financial or otherwise) or results of operations of
          the
          Company or the Shares or the consummation of the transactions contemplated
          hereby. 

         

        (b) The
          Company does not have, and has never had, any subsidiaries and does not
          own,
          directly or indirectly, any capital stock, equity or interest in any
          corporation, firm, partnership, joint venture or other entity.

         

        (c) The
          Company has all requisite corporate power and authority to execute and
          deliver
          this Agreement, and to consummate the transactions contemplated hereby
          and
          thereby. The Company has taken all corporate action necessary for the execution
          and delivery of this Agreement and the consummation of the transactions
          contemplated hereby, and this Agreement constitutes the legal, valid and
          binding
          obligation of the Company, enforceable against the Company in accordance
          with
          its respective terms, except as may be affected by bankruptcy, insolvency,
          moratoria or other similar laws affecting the enforcement of creditors’ rights
          generally and subject to the qualification that the availability of equitable
          remedies is subject to the discretion of the court before which any proceeding
          therefore may be brought. This
          Agreement, the Actions, and the transactions contemplated hereby have been
          unanimously approved by the Board of Directors of the Company and by the
          holders
          of a majority of the outstanding shares of Common Stock of the Company.
          

         

        2.2  
          Articles
          of Incorporation and By-laws; Minute Books.
          Certified copies of the Company’s Articles of Incorporation and its by-laws have
          been forwarded to the Buyer. Such copies of the Articles of Incorporation
          and
          By-laws (or similar governing documents) of the Company, and all amendments
          to
          each are true, correct and complete. The minute books of the Company as
          forwarded to the Buyer contain true and complete records of all meetings
          and
          consents in lieu of meetings of their respective Board of Directors (and
          any
          committees thereof), or similar governing bodies, since the time of their
          respective organization. The stock books of the Company as forwarded to
          the
          Buyer are true, correct and complete. 

         

        2.3  
          Listing
          and Maintenance Requirements.
          The
          Company is currently quoted
          on the
          OTC Bulletin Board (“OTCBB”).
          The
          Company has not, in the twelve (12) months preceding the date hereof, received
          any notice from the OTCBB or the National Association of Securities Dealers
          (the
“NASD”)
          or any
          trading market on which the Company’s Common Stock is or has been listed or
          quoted to the effect that the Company is not in compliance with the quoting,
          listing or maintenance requirements of the OTCBB or such other trading
          market.
          The Company is, and has no reason to believe that it will not, in the
          foreseeable future continue to be, in compliance with all such quoting,
          listing
          and maintenance requirements.

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        2.4  
          Consents.
          No
          consent or approval of any person, regulatory authority, governmental
          organization or third party, and no approval, order, license, permit, franchise,
          declaration or filing of any nature, is required as a result of or in connection
          with the Seller’s execution, delivery and performance of its obligations under
          this Agreement.

         

        2.5  
          Capitalization.
          The
          authorized capital stock of the Company immediately prior to giving effect
          to
          the transactions contemplated hereby consists of 50,000,000 shares of the
          Company common stock and as of the date hereof, and 5,000,000 shares of
          preferred stock. Immediately prior to the Reverse Split, the Company had
          a total
          of 98,285,596 shares of common stock are issued and outstanding. As of
          the date
          hereof, there are no shares of Company preferred stock issued and outstanding.
          All of the outstanding shares of Company Common Stock are duly authorized,
          validly issued, fully paid and nonassessable, and have not been issued
          in
          violation of any preemptive right of shareholders. Immediately after the
          Closing, the Shares will be duly authorized, validly issued and nonassessable
          and free and clear of any Encumbrances and will have been issued and transferred
          free and clear of any preemptive right of stockholders. Except for this
          Agreement, there are no outstanding subscriptions, voting trust agreement
          or
          other contract, agreement, arrangement, option, warrant, call, commitment
          or
          other right of any character obligating or entitling the Company to issue,
          sell,
          redeem or repurchase any of its securities, and there is no outstanding
          security
          of any kind convertible into or exchangeable for Company Common Stock.
          To the
          Company’s knowledge, no shareholder currently holds registration rights.

         

        2.6  
          Compliance
          With Law.
          The
          Company and the Company’s officers and directors are in compliance with all
          applicable federal, state, local and foreign laws and regulations which
          are
          applicable to the operation of the Company’s business. The Company and the
          Company’s officers and directors have not received any written notice to the
          effect that, or otherwise have been advised that the Company or its officers
          or
          directors are not in compliance with any of such laws or orders. To the
          Company’s knowledge, the Company and its officers and directors are not
          currently, or have been, the subject of any inquiries, investigations,
          or
          requests for documents or other information related to its compliance with
          any
          laws or orders. The Company is not, and to the Company’s knowledge has not been,
          subject to any regulatory enforcement actions or consent decrees. None
          of the
          Company’s officers and directors have been convicted of a felony or
          misdemeanor.

         

        2.7  
          No
          Conflicts.
          The
          execution and delivery by the Company of this Agreement does not, and the
          performance by the Company of their obligations under this Agreement and
          the
          consummation of the transactions contemplated, including the Reverse Split,
          hereby does not and will not conflict with or result in a violation or
          breach of
          any term or provision of any law, order, permit, statute, rule or regulation
          applicable the Company, any of their affiliates, or any of the businesses,
          or
          assets or properties of the Company.

         

        2.8  
          SEC
          Documents.
          As of
          the Closing Date, except as set forth in Schedule 2.8 hereof, none of the
          Company’s filings with the SEC are under review or are the subject of comment
          letters which have not been resolved. As of their respective filing dates,
          the
          Company’s Annual Report on Form 10-KSB for the year ended December 31, 2004, and
          all reports filed with the SEC subsequent thereto (the “SEC
          Documents”),
          have
          complied in all material respects with the requirements of the Exchange
          Act and
          the rules and regulations of the SEC promulgated thereunder applicable
          to the
          SEC Documents. As of their respective filing dates, none of the SEC Documents
          contained an untrue statement of a material fact or omitted to state a
          material
          fact required to be stated therein or necessary to make the statements
          therein,
          in light of the circumstances under which they were made, not misleading.
          

         

        2.9  
          Material
          Misstatements and Omissions.
          As of
          the Closing Date, the representations and warranties of the Company contained
          in
          this Agreement (including the exhibits and schedules hereto) do not contain
          any
          untrue statement of a material fact and do not omit to state a material
          fact
          necessary to make the statements or facts contained herein or therein,
          in light
          of the circumstances made, not misleading.

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        2.10 
          Reverse
          Split.
          The
          Company and the Company’s officers and directors are in compliance with all
          applicable federal, Maryland state laws and regulations which are applicable
          to
          effecting the Reverse Split. 

        

        ARTICLE
          III

         

        REPRESENTATIONS
          AND WARRANTIES OF THE BUYERS

         

        Each
          of
          the Buyers hereby severally and independently represents and warrants to
          the
          Company that now and/or as of the Closing:

         

        3.1  
          Authority
          Relative to this Agreement.
          Such
          Buyer has the requisite power and/or authority to enter into this Agreement
          and
          carry out his/her obligations hereunder. This Agreement has been duly and
          validly executed and delivered by such Buyer and constitutes a valid and
          binding
          obligation of such Buyer, enforceable in accordance with its terms, except
          as
          such enforcement may be limited by bankruptcy, insolvency or other similar
          laws
          affecting the enforcement of creditors' rights generally or by general
          principles of equity. 

         

        3.2  
          Buyer
          Representation Regarding the Shares.
          The
          Buyer understands that the Shares are “restricted securities” and have not been
          registered under the Shares Act or any applicable state securities law
          and is
          acquiring the Shares as principal for its own account and not with a view
          to or
          for distributing or reselling such Shares or any part thereof, has no present
          intention of distributing any of such Shares and has no arrangement or
          understanding with any other persons regarding the distribution of such
          Shares
          (this representation and warranty not limiting such Buyer’s right to sell the
          Shares pursuant to the Registration Statement or otherwise in compliance
          with
          applicable federal and state securities laws). The Buyer is acquiring the
          Shares
          hereunder in the ordinary course of its business. The Buyer does not have
          any
          agreement or understanding, directly or indirectly, with any Person to
          distribute any of the Shares.

        

        3.3  
          Buyer
          Status.
          At the
          time the Buyer receives any of the Shares, the Buyer will be an “accredited
          investor” as defined in Rule 501 under the Securities Act. 

        

        3.4  
          Experience
          of the Buyers.
          The
          Buyer, either alone or together with its representatives, has such knowledge,
          sophistication and experience in business and financial matters so as to
          be
          capable of evaluating the merits and risks of the prospective investment
          in the
          Shares, and has so evaluated the merits and risks of such investment. The
          Buyer
          is able to bear the economic risk of an investment in the Shares and, at
          the
          present time, is able to afford a complete loss of such investment.

        

        3.5  
          General
          Solicitation.
          The
          Buyer is not receiving the Shares as a result of any advertisement, article,
          notice or other communication regarding the Shares published in any newspaper,
          magazine or similar media or broadcast over television or radio or presented
          at
          any seminar or any other general solicitation or general
          advertisement.

        

        3.6  
          Material
          Misstatements of Omissions.
          As
          of the
          Closing Date, the representations and warranties of such Buyer contained
          in this
          Agreement (including the exhibits and schedules hereto) does not contain
          any
          untrue statement of a material fact and do not omit to state a material
          fact
          necessary to make the statements or facts contained herein or therein,
          in light
          of the circumstances made, not misleading.

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        ARTICLE
          IV
          

          INDEMNIFICATION

        

         

        4.1  
          By
          the
          Company.
          The
          Company shall indemnify, defend and hold harmless each Buyer, its affiliates
          and
          their respective officers, directors, members, shareholders, employees,
          agents,
          successors, assigns and affiliates from and against any and all costs,
          Undisclosed Liabilities, liabilities, damages, lawsuits, deficiencies,
          claims
          and expenses, including without limitation, interest, penalties, costs
          of
          mitigation, attorneys’ fees and all amounts paid in investigation, defense or
          settlement of any of the foregoing (collectively, the “Damages”),
          incurred in connection with, arising out of, resulting from or incident
          to any
          breach of any covenant, representation, warranty or agreement or the inaccuracy
          of any representation, made by the Company in or pursuant to this Agreement.
          

         

        4.2  
          By
          Buyer.
          Each
          Buyer shall indemnify, reimburse, defend and hold harmless the Company,
          its
          affiliates, officers, directors, employees, agents, successors and assigns
          from
          and against any and all Damages incurred in connection with, arising out
          of,
          resulting from or incident to (i) any breach of any covenant, representation,
          warranty or agreement or the inaccuracy of any representation, made by
          such
          Buyer in or pursuant to this Agreement, or in the other documents delivered
          in
          connection with the transaction contemplated in this Agreement; and (ii)
          the
          business, operations, or conduct of the Company after the Closing; provided,
          however, that Damages under this Section 4.2 shall be limited to the amount
          of
          the Closing Payment.

         

        4.3  
          Defense
          of Claims.
          If any
          action or proceeding is filed or initiated against any party entitled to
          the
          benefit of indemnity hereunder, written notice thereof shall be given to
          the
          indemnifying party as promptly as practicable (and in any event within
          ten (10)
          days after the service of the citation or summons); provided, however,
          that the
          failure of any indemnified party to give timely notice shall not affect
          rights
          to indemnification hereunder except to the extent that the indemnifying
          party
          demonstrates actual damage caused by such failure. After such notice, if
          the
          indemnifying party shall acknowledge in writing to the indemnified party
          that
          the indemnifying party shall be obligated under the terms of its indemnity
          hereunder in connection with such action or proceeding, then the indemnifying
          party shall be entitled, if it so elects, to take control of the defense
          and
          investigation of such action or proceeding and to employ and engage attorneys
          of
          its own choice to handle and defend the same, such attorneys to be reasonably
          satisfactory to the indemnified party, at the indemnifying party’s cost, risk
          and expense (unless (i) the indemnifying party has failed to assume the
          defense
          of such action or proceeding; or (ii) the named parties to such action
          or
          proceeding include both of the indemnifying party and the indemnified party,
          and
          the indemnified party and its counsel determine in good faith that there
          may be
          one or more legal defenses available to such indemnified party that are
          different from or additional to those available to the indemnifying party
          and
          that joint representation would be inappropriate), and to compromise or
          settle
          such action or proceeding, which compromise or settlement shall be made
          only
          with the written consent of the indemnified party, such consent not to
          be
          unreasonably withheld. The indemnified party may withhold such consent
          if such
          compromise or settlement would adversely affect the conduct of its business
          or
          requires less than an unconditional release to be obtained. If (i) the
          indemnifying party fails to assume the defense of such action or proceeding
          within fifteen (15) days after receipt of notice thereof pursuant to this
          Section 4.3; or (ii) the named parties to such action or proceeding include
          both
          the indemnifying party and the indemnified party and the indemnified party
          and
          its counsel determine in good faith that there may be one or more legal
          defenses
          available to such indemnified party that are different from or additional
          to
          those available to the indemnifying party and that joint representation
          would be
          inappropriate, the indemnified party against which such action or proceeding
          has
          been filed or initiated will (upon delivering notice to such effect to
          the
          indemnifying party) have the right to undertake, at the indemnifying party’s
          cost and expense, the defense, compromise or settlement of such action
          or
          proceeding on behalf of and for the account and risk of the indemnifying
          party;
          provided, however, that such action or proceeding shall not be compromised
          or
          settled without the written consent of the indemnifying party, which consent
          shall not be unreasonably withheld. In the event the indemnified party
          assumes
          defense of the action or proceeding, the indemnified party will keep the
          indemnifying party reasonably informed of the progress of any such defense,
          compromise or settlement and will consult with, when appropriate, and consider
          any reasonable advice from, the indemnifying party regarding any such defense,
          compromise or settlement. The indemnifying party shall be liable for any
          settlement of any action effected pursuant to and in accordance with this
          Section 4.3 and for any final judgment (subject to any right of
          appeal).

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        Regardless
          of whether the indemnifying party or the indemnified party takes up the
          defense,
          the indemnifying party will pay reasonable costs and expenses in connection
          with
          the defense, compromise or settlement for any action or proceeding under
          this
          Section 4.3.

         

        The
          indemnified party shall cooperate in all reasonable respects with the
          indemnifying party and such attorneys in the investigation, trial and defense
          of
          such action or proceeding and any appeal arising therefrom; provided, however,
          that the indemnified party may, at its own cost, participate in the
          investigation, trial and defense of such action or proceeding and any appeal
          arising therefrom. The indemnifying party shall pay all expenses due under
          this
          Section 4.3 as such expenses become due. In the event such expenses are
          not so
          paid, the indemnified party shall be entitled to settle any action or proceeding
          under this Section 4.3 without the consent of the indemnifying party and
          without
          waiving any rights the indemnified party may have against the indemnifying
          party. 

         

        4.4  
          Other
          Claims.
          A claim
          for indemnification for any matter not involving a third-party claim may
          be
          asserted by notice to the party from whom indemnification is sought.

         

         

        ARTICLE
          V
          

          DELIVERIES
            & CONDITIONS

        

         

        5.1  
          Items
          to be delivered to the Buyers at the Closing by the Company.
          The
          Buyers’ obligation to purchase the Shares is conditioned on the following
          closing conditions and deliveries:

         

        (a) a
          counterpart to this Agreement duly executed by the Company and delivered
          to each
          Buyer (or representative);

         

        (b) a
          copy of
          a letter of instruction to the Company’s transfer agent, to issue the Share
          Certificates in the name of each Buyer representing the Shares (or its
          designee
          or assignee);

         

        (c) the
          representations and warranties set forth in Article 2 of this Agreement
          shall be
          true and correct in all material respects; and

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        (d) an
          officer’s certificate of the Company certifying that subparagraph (c) above is
          true and correct as of the Closing Date; and 

         

        (e) any
          other
          document reasonably requested by Buyer that Buyer deems necessary for the
          consummation of this transaction. 

          

        5.2  
          Items
          to be delivered at Closing by Buyer.
          The
          Company’s obligation to issue and sell the Shares is conditioned on the
          following closing conditions and deliveries by the Buyers:

         

        (a)
           all
          applicable exhibits and schedules hereto;

         

        (b)   a
          counterpart to this Agreement duly executed by each Buyer and delivered
          to the
          Company;

         

        (c)   any
          other
          document reasonably requested by the Company that it deems necessary for
          the
          consummation of this transaction; and

         

        (d)   the
          Closing Payment. 

         

        5.2  
          Reverse
          Split.
          

         

        (a) The
          Company shall take all necessary actions to effect the Reverse Split, and
          the
          Reverse Split shall have taken effect; and

         

        (b) The
          Company shall have delivered to the Buyers the amended and restated articles
          of
          incorporation of the Company and other documentation evidencing the Reverse
          Split. 

         

        ARTICLE
          VI

         

        TERMINATION

         

        6.1  
          Termination.
          This
          Agreement may be terminated:

         

        (a) at
          any
          time before, or at, Closing by written notice of the Buyers; 

         

        (b) prior
          to
          the Closing by any Party at any time if any provision (including, but not
          limited to, the representations and warranties) of this Agreement that
          is
          applicable to or required to be performed by the other Party shall be materially
          untrue or fail to be accomplished or if any conditions set forth in Article
          4
          hereof have not been fully satisfied;

         

        (c) Upon
          termination of this Agreement for any reason, in accordance with the terms
          and
          conditions set forth in this paragraph, each Party shall bear all costs
          and
          expenses as that Party has incurred. 

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        

        ARTICLE
          VII

         

        MISCELLANEOUS

         

        7.1  
          Survival
          of Representations, Warranties and Agreements.
          All
          representations, warranties and statements made by a Party to in this Agreement
          or in any document or certificate delivered pursuant hereto shall survive
          the
          Closing Date. Each of the Parties hereto is executing and carrying out
          the
          provisions of this Agreement in reliance upon the representations, warranties
          and covenants and agreements contained in this agreement or at the closing
          of
          the transactions herein provided for and not upon any investigation which
          it
          might have made or any representations, warranty, agreement, promise or
          information, written or oral, made by the other Party or any other person
          other
          than as specifically set forth herein.

         

        7.2  
          Access
          to Books and Records.
          During
          the course of this transaction through Closing, each Party agrees to make
          available for inspection all corporate books, records and assets, and otherwise
          afford to each other and their respective representatives, reasonable access
          to
          all documentation and other information concerning the business, financial
          and
          legal conditions of each other for the purpose of conducting a due diligence
          investigation thereof. Such due diligence investigation shall be for the
          purpose
          of satisfying each Party as to the business, financial and legal condition
          of
          each other for the purpose of determining the desirability of consummating
          the
          proposed transaction. The Parties further agree to keep confidential and
          not use
          for their own benefit, except in accordance with this Agreement any information
          or documentation obtained in connection with any such
          investigation.

         

        7.3  
          Further
          Assurances.
          If, at
          any time after the Closing, the Parties hereby mutually agree
          that any further deeds, assignments or assurances in law or that any other
          things are necessary, desirable or proper to complete the transactions
          contemplated hereby in accordance with the terms of this agreement or to
          vest,
          perfect or confirm, of record or otherwise, the title to any property or
          rights
          of the Parties hereto, the Parties agree that their proper officers and
          directors shall execute and deliver all such proper deeds, assignments
          and
          assurances in law and do all things necessary, desirable or proper to vest,
          perfect or confirm title to such property or rights and otherwise to carry
          out
          the purpose of this Agreement, and that the proper officers and directors
          the
          Parties are fully authorized to take any and all such action.

         

        7.4  
          Notice.
          All
          communications, notices, requests, consents or demands given or required
          under
          this Agreement shall be in writing and shall be deemed to have been duly
          given
          when delivered to, or received by prepaid registered or certified mail
          or
          recognized overnight courier addressed to, or upon receipt of a facsimile
          sent
          to, the Party for whom intended, as follows, or to such other address or
          facsimile number as may be furnished by that Party by notice in the manner
          provided herein:

         

        If
          to
          the Company:

         

        Kevin
          Leung, Esq.

        Richardson
          & Patel LLP

        10900
          Wilshire Blvd. Suite 500

        Los
          Angeles, CA 90024

        

        If
          to
          Buyer:

         

        ARC
          Investment Partners, LLC

        9440
          Little Santa Monica Blvd., Suite 400

        Beverly
          Hills, CA  90210 

        Attn:
          Adam Roseman

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        

        with
          copies (which shall not constitute notice) to:

         

        Katten
          Muchin Rosenman LLP

        2029
          Century Park East, Suite 2600

        Los
          Angeles, CA 90067 

        
          
            	
                  	Facsimile:	
                    (310)
                      712-8482

                    (310)
                      712-8480

                  

          

          
            	
                  	Attention:	
                    Eric
                      A. Klein, Esq.

                    John J. Molloy III, Esq.
                      

                  

          

           

        

        7.5  
          Entire
          Agreement.
          This
          Agreement, the Exhibits and Schedules hereto and any instruments and agreements
          to be executed pursuant to this Agreement, set forth the entire understanding
          of
          the Parties hereto with respect to its subject matter, merges and supersedes
          all
          prior and contemporaneous understandings with respect to its subject matter
          and
          may not be waived or modified, in whole or in part, except by a writing
          signed
          by each of the Parties hereto. No waiver of any provision of this Agreement
          in
          any instance shall be deemed to be a waiver of the same or any other provision
          in any other instance. Failure of any party to enforce any provision of
          this
          Agreement shall not be construed as a waiver of its rights under such
          provision.

         

        7.6  
          Successors
          and Assigns.
          This
          Agreement shall be binding upon, enforceable against and inure to the benefit
          of, the Parties hereto and their respective heirs, administrators, executors,
          personal representatives, successors and assigns, and nothing herein is
          intended
          to confer any right, remedy or benefit upon any other person. This Agreement
          may
          not be assigned by the Corporation except with the prior written consent
          of the
          Buyer. This Agreement and all of the obligations of the Company may be
          assigned
          by the Buyer without the prior notice to the Company or written consent
          of the
          Company and upon assignment, all of the rights and obligations of Buyer
          shall be
          the rights and obligations of the Buyer’s designated assignee.

         

        7.7  
          Governing
          Law.
          This
          Agreement shall in all respects be governed by and construed in accordance
          with
          the laws of the State of California, USA that are applicable to agreements
          made
          and fully to be performed in such state, without giving effect to conflicts
          of
          law principles.

         

        7.8  
          Counterparts.
          This
          Agreement may be executed in multiple counterparts, each of which shall
          be
          deemed an original, but all of which together shall constitute one and
          the same
          instrument.

         

        7.9  
          Construction.
          Headings contained in this Agreement are for convenience only and shall
          not be
          used in the interpretation of this Agreement. References herein to Articles,
          Sections and Exhibits are to the articles, sections and exhibits, respectively,
          of this Agreement. The Schedules hereto are hereby incorporated herein
          by
          reference and made a part of this Agreement. As used herein, the singular
          includes the plural, and the masculine, feminine and neuter gender each
          includes
          the others where the context so indicates.

         

        7.10  
          Severability.
          If any
          provision of this Agreement is held to be invalid or unenforceable by a
          court of
          competent jurisdiction, this Agreement shall be interpreted and enforceable
          as
          if such provision were severed or limited, but only to the extent necessary
          to
          render such provision and this Agreement enforceable.

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        7.11  
          Arbitration.
          Any
          controversy arising out of, connected to, or relating to any matters herein
          of
          the transactions with the Parties hereto on behalf of the undersigned,
          or this
          Agreement, or the breach thereof, including, but not limited to any claims
          of
          violations of federal and/or state securities laws, banking statutes, consumer
          protection statutes, federal and/or state anti-racketeering (e.g. RICO)
          claims
          as well as any common law claims and any state law claims of fraud, negligence,
          negligent misrepresentations, and/or conversion, or the laws of any territory,
          country or jurisdiction, shall be settled by arbitration; and in accordance
          with
          this paragraph any judgment on the arbitrator’s award may be entered in any
          court having jurisdiction thereof. In the event of such a dispute, each
          party
          agrees to arbitration conducted through the auspices of American Arbitration
          Association. Venue for any action shall be in Los Angeles,
          California.

         

        7.12  
          Confidentiality;
          Public Disclosure.
          Each of
          the parties hereto hereby agrees that the information obtained pursuant
          to the
          negotiation and execution of this Agreement shall be treated as confidential
          and
          not be disclosed to third parties who are not agents of one of the Parties
          to
          this Agreement.

         

        7.13  
          Notification
          of Certain Matters.
          Each
          Party shall give prompt notice to the other of (i) the occurrence or
          non-occurrence of any event, the occurrence or non-occurrence of which
          is likely
          to cause any representation or warranty of such party contained in this
          Agreement to be untrue or inaccurate and (ii) any failure of such party
          to
          comply with or satisfy any covenant, condition or agreement to be complied
          with
          or satisfied by it hereunder; provided,
          however,
          that
          the delivery of any notice pursuant to this Section shall not limit or
          otherwise affect any remedies available to the party receiving such notice.
          Further, disclosure pursuant to this Section shall not be deemed to amend
          or supplement the Schedules hereto or prevent or cure any
          misrepresentations, breach of warranty or breach of covenant.

         

        7.14  
          Currency.
          The
          parties hereto agree that all monetary amounts set forth herein are referenced
          in United States dollars, unless otherwise stated.

         

        7.15  
          Rules
          of Construction. The
          parties hereto agree that they have been represented by counsel during
          the
          negotiation and execution of this Agreement and, therefore, waive the
          application of any law, regulation, holding or rule of construction providing
          that ambiguities in an agreement or other document will be construed against
          the
          party drafting such agreement or document.

         

        7.16  
          Counterparts.
          This
          Agreement may be executed in counterparts and by facsimile signatures.
          In the
          event that any signature is delivered by facsimile transmission, such signature
          shall create a valid and binding obligation of the party executing (or
          on whose
          behalf such signature is executed) with the same force and effect as if
          such
          facsimile signature page were an original thereof. All such counterparts
          shall
          together constitute one and the same instrument.

         

        

        [Signatures
          to Follow]

        

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, each of the Parties hereto has executed this Agreement
          as of
          the date first set forth above.

        
          
             

            
              
                	 	COMPANY:
	 	 
	
                         

                      	
                        
                          
                            Commerce
                              Development Corporation, Ltd.

                          

                          a
                            Delaware corporation

                        

                      
	 	 	 
	
                        
                           

                        

                      	
                        
                          By:

                        

                      	
                        /s/
                          Silas Phillips

                      
	
                         

                      	
                         

                      	
                        Silas
                          Phillips,

                        Chief
                          Executive Officer

                      
	 	 	 

              

              
 

              
                
                  
                  

                

                
                  11

                  
                    

                  

                

                
                  
                  

                

              

            

          

        

        
          
             

            
              
                	 	BUYERS:
	 	 
	
                         

                      	
                        
                          
                            ARC
                              HOLDINGS, LLC

                          

                        

                      
	 	 	 
	
                        
                           

                        

                      	
                        
                          By:

                        

                      	
                        ARC
                          INVESTMENT PARTNERS, LLC, its manager

                      
	 	 	/s/
                        Adam Roseman
	
                         

                      	
                         

                      	
                        
                          Adam
                            Roseman

                          Managing
                            Director

                        

                      
	 	 	 
	 	RP
                        CAPITAL, LLC
	 	 	 
	 	/s/
                        Nimish Patel
	 	
                        Nimish
                          Patel

                        Manager

                      
	 	 	 
	 	 
	 	/s/
                        Younes Nazarian
	 	
                        Younes Nazarian and Soraya Nazarian,
                          trustees of the
                          

                        Younes & Soraya Nazarian Revocable
                          Trust

                      
	 	 
	 	/s/
                        David Nazarian
	 	
                        David Nazarian and Angella Nazarian,
                          trustees of the
                          

                        David & Angella Nazarian Family
                          Trust

                      
	 	 
	 	/s/
                        Sam Nazarian
	 	Sam
                        Nazarian
	 	 	 

              

               

              
                
                  
                  

                

                
                  12

                  
                    

                  

                

                
                  
                  

                

              

            

          

        

         

        SCHEDULE
          A

        

        BUYERS

         

        
          

          
            	
                    Buyer

                  	 	
                    Shares

                  	 	
                    Consideration

                  	 
	 	 	 	 	 	 	 	 
	
                    ARC
                      INVESTMENT PARTNERS, LLC

                  	 	 	
                    
                    

                    1,037,960

                  	 	
                    
                    

                    $

                  	
                    
                    

                    39,829.70

                  	 
	 	 	 	 	 	 	 	 
	
                    RP
                      CAPITAL, LLC

                  	 	 	
                    
                    

                    36,396

                  	 	
                    
                    

                    $

                  	
                    
                    

                    1,396.62

                  	 
	 	 	 	 	 	 	 	 
	
                    YOUNES
                      NAZARIAN AND SORAYA NAZARIAN, trustees as the Younes & Soraya
                      Revocable Trust 

                  	 	 	
                    
                    

                    76,214

                  	 	
                    
                    

                    $

                  	
                    
                    

                    2,924.56

                  	 
	 	 	 	 	 	 	 	 
	
                    DAVID
                      NAZARIAN AND ANGELLA NAZARIAN, trustees of the David & Angella
                      Nazarian Family Trust

                  	 	 	
                    
                    

                    76,214

                  	 	
                    
                    

                    $

                  	
                    
                    

                    2,924.56

                  	 
	 	 	 	 	 	 	 	 
	
                    SAM
                      NAZARIAN 

                  	 	 	
                    
                    

                    76,214

                  	 	
                    
                    

                    $

                  	
                    
                    

                    2,924.56

                  	 
	 	 	 	 	 	 	 	 
	
                    TOTAL:

                  	 	 	
                    1,302,998

                  	 	
                    $

                  	
                    50,000.00

                  	 
	 	 	 	 	 	 	 	 

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        SCHEDULE
          2.8

        

        SEC
          DOCUMENTS

         

        

        The
          Company received comments by telephone from the Securities and Exchange
          Commission (“SEC”) staff regarding the Company’s Amended Form 10-KSB Annual
          Report (the “Form 10-KSB/A”) that was filed with the SEC on January 4, 2006. The
          Company is in the process of responding to these comments, which include
          the
          following: 

        

        (1)
           the
          Independent Auditors’ Report shall be revised to include time periods that were
          in fact covered in the audit of the Company’s balance sheets and in the audit of
          the Company’s related statements of operations, stockholders equity (deficit)
          and cash flows but which were inadvertently left out in the description
          of such
          audit in the Independent Auditors’ Report; 

        

        (2)
           the
          opinion of the auditors regarding the financial statements in the Independent
          Auditors’ Report shall be revised to include additional time periods that were
          inadvertently omitted, such as (a) that the opinion covered the Company’s
          financial statements for the periods ending December 31, 2003 in addition
          to the
          periods referenced; and (b) that the periods covered by the opinion regarding
          the Company’s related statements of operations, stockholders equity (deficit)
          and cash flows include the twelve months ended December 31, 2003, and the
          period
          from May 31, 1998 (Date of Inception) to December 31, 2004, in addition
          to the
          periods referenced; and

        

        (3)
           the
          Company’s Condensed Consolidated Balance Sheet shall be revised to correct an
          inadvertent calculation error as to the Company’s Total Liabilities and
          (Deficiency in) Stockholders’ Equity (“Total Liabilities”) as of December 31,
          2004 and 2003, such that it correctly reflects Total Liabilities and Total
          Assets in the balance sheets dated as of December 31, 2004 and
          2003.

        

        The
          Company’s auditors have furnished a revised Independent Auditors’ Report
          reflecting the revisions described above. The Company intends to promptly
          file
          this revised report along with the revised Condensed Consolidated Balance
          Sheet
          referenced in (3) above, in an Amended Form 10-KSB/A, upon receipt of the
          final
          version of the Company’s revised balance sheet from the Company’s auditors.EXHIBIT 10.2

     

    EXHIBIT
      10.2

    

      STOCK
        PURCHASE AGREEMENT

       

       

      THIS
        STOCK PURCHASE AGREEMENT is entered into as of April 13, 2006
        (the
“Agreement”), by and among the stockholders listed on Schedule
        A
        hereto
        (collectively, the “Sellers”) who are all holders of common stock of Commerce
        Development Corporation, Ltd., a Delaware corporation (the “Company”), on the
        one hand, and each of the undersigned buyers identified on the signature
        pages
        hereto (each, and collectively, the “Buyer”). Each party to this Agreement who
        is a Seller and each party to this Agreement who is a Buyer is referred to
        herein as a “Party,” and they are all referred to collectively as “Parties.”

       

      W
        I T N E
        S S E T H:

       

      WHEREAS,
        the Sellers collectively own, after giving effect to a 2,184-to-1 reverse
        stock
        split that occurred on April 7, 2006 (“Reverse Stock Split”), 40,506 shares of
        common stock of the Company (the “Shares”), which constitutes approximately 90%
        of the total outstanding shares of common stock of the Company par
        value
        $.001 (the “Company Common Stock”);
        

       

      WHEREAS,
        the Sellers wish to sell to the Shares to the Buyer, and the Buyer wishes
        to
        purchase the Shares from the Sellers, pursuant to this Agreement (the “Sale”);

       

      NOW,
        THEREFORE, in consideration of the premises and of the mutual representations,
        warranties and agreements set forth herein, the Parties hereto agree as
        follows:

       

      ARTICLE
        I

       

      PURCHASE
        OF SHARES

       

      1.1 
         Incorporation
        of Recitals.
        The
        provisions and recitals set forth above are hereby referred to and incorporated
        herein and made a part of this Agreement by reference.

       

      1.2  
        Purchase
        of Shares.
        Subject
        to satisfaction
        or waiver of all the
        terms
        and conditions of this Agreement, on the Closing Date (as hereinafter defined)
        the Sellers shall sell to the Buyer 40,506 shares of Company Common Stock
        and
        Buyer shall purchase such amount of the Shares, as set forth on Schedule
        A
        attached
        hereto, from the Sellers. 

       

      1.3  
        Closing.
        The
        Closing shall take place on April 13, 2006 (the “Closing Date”), or at a time
        and date mutually agreed by the parties. On the Closing Date, the Sellers
        shall
        deliver to the Company’s transfer agent: (a) stock certificate(s) evidencing the
        Shares to be purchased in the name of the Buyer and/or its designees (the
“Share
        Certificates”) free
        and
        clear of any Encumbrances (defined below);
        (b) a
        transfer instruction letter directing the transfer agent to record the sale
        of
        the Shares to the Buyer on the share ledger of the Company, cancel the Share
        Certificates, and issue a new certificate representing post-Reverse-Split
        Shares
        to the Buyer (or Buyer’s designee) purchased by the Buyer hereunder; and (c) all
        corporate documents (minutes, resolutions, agreements and contracts), bank
        accounts, check books, common seals, memorandum and articles and amendments,
        etc. On the Closing Date, the Buyer shall pay
        (or
        cause to be paid)
        to the
        Sellers an
        aggregate sum
        of
$701,396.63 (the
        “Closing Payment”) for
        the
        purchase of a total of 40,506
        Shares,
        as
        allocated and set forth on the Buyer signature page hereto. The Closing Payment
        shall be paid at the Closing to Sellers by delivering to Sellers cash in
        such
        amount by cashier’s check or by wire transfer of immediately available funds to
        such account as Sellers may specify in writing to Purchaser at least one
        (1)
        business day prior to the Closing.
        

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        II

       

      REPRESENTATIONS
        AND WARRANTIES OF THE SELLERS

       

      Each
        of
        the Sellers represents and warrants to the Buyer that now and/or as of the
        Closing (for purposes of this Article II:

       

      2.1  
        Due
        Organization and Qualification; Subsidiaries; Due Authorization.

       

      (a) The
        Company is a corporation duly incorporated, validly existing and in good
        standing under the laws of its jurisdiction of formation, with full corporate
        power and authority to own, lease and operate its respective business and
        properties and to carry on its respective business in the places and in the
        manner as presently conducted. The Company is in good standing as a foreign
        corporation in each jurisdiction in which the properties owned, leased or
        operated, or the business conducted, by it requires such qualification except
        for any failure, which when taken together with all other failures, is not
        likely to have a “material adverse effect” on the business of the Company, taken
        as a whole. For
        purposes of this Agreement, a "material adverse effect" that is or would
        be
        materially adverse to the business, operations, assets, condition (financial
        or
        otherwise) or results of operations of the Company or the Shares or the
        consummation of the transactions contemplated hereby.
        

       

      (b) The
        Company does not have, and has never had, any subsidiaries and does not own,
        directly or indirectly, any capital stock, equity or interest in any
        corporation, firm, partnership, joint venture or other entity.

       

      (c) Each
        of
        the Sellers have all requisite power and authority to execute and deliver
        this
        Agreement, and to consummate the transactions contemplated hereby and thereby.
        The consummation of the transactions contemplated hereby, and this Agreement
        constitutes the legal, valid and binding obligation of the Sellers, enforceable
        against the Sellers in accordance with its respective terms, except as may
        be
        affected by bankruptcy, insolvency, moratoria or other similar laws affecting
        the enforcement of creditors’ rights generally and subject to the qualification
        that the availability of equitable remedies is subject to the discretion
        of the
        court before which any proceeding therefore may be brought. This
        Agreement and the transactions contemplated hereby have been approved by
        each of
        the Sellers and by the holders of a majority of the outstanding shares of
        Common
        Stock of the Company. 

       

      2.2  
        Ownership
        and Title of Shares Sold.
        Each of
        the Sellers represents respectively that:

       

      (a) Each
        Seller owns the number of Shares listed opposite his/her name in Schedule
        A
        to be
        sold to the Buyer. 

       

      (b) As
        of the
        Closing Date, each of the Sellers will own and will have good and marketable
        title to, and sole record and legal ownership of, the Shares, free and clear
        of
        any and all liens, security interests, pledges, mortgages, charges, limitations,
        claims, restrictions, rights of first refusal, rights of first offer, rights
        of
        first negotiation or other encumbrances of any kind or nature whatsoever
        (collectively, “Encumbrances”).

       

      (c)
         Upon
        consummation of the Closing, without exception, the Buyer will acquire from
        the
        Sellers legal and beneficial ownership of, and good and marketable title
        to the
        Shares to be sold to the Buyer by each of the Sellers, free and clear of
        all
        Encumbrances.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      2.3 
        Articles
        of Incorporation and By-laws; Minute Books.
        Certified copies of the Company’s Articles of Incorporation and its by-laws have
        been forwarded to the Buyer. Such copies of the Articles of Incorporation
        and
        By-laws (or similar governing documents) of the Company, and all amendments
        to
        each are true, correct and complete. The minute books of the Company as
        forwarded to the Buyer contain true and complete records of all meetings
        and
        consents in lieu of meetings of their respective Board of Directors (and
        any
        committees thereof), or similar governing bodies, since the time of their
        respective organization. The stock books of the Company as forwarded to the
        Buyer are true, correct and complete. 

       

      2.4 
        Listing
        and Maintenance Requirements.
        The
        Company is currently quoted
        on the
        OTC Bulletin Board (“OTCBB”).
        The Company has not, in the twelve (12) months preceding the date hereof,
        received any notice from the OTCBB or the National Association of Securities
        Dealers (the “NASD”) or any trading market on which the Company’s Common Stock
        is or has been listed or quoted to the effect that the Company is not in
        compliance with the quoting, listing or maintenance requirements of the OTCBB
        or
        such other trading market. The Company is, and has no reason to believe that
        it
        will not, in the foreseeable future continue to be, in compliance with all
        such
        quoting, listing and maintenance requirements.

       

      2.5 
        Consents.
        No
        consent or approval of any person, regulatory authority, governmental
        organization or third party, and no approval, order, license, permit, franchise,
        declaration or filing of any nature, is required as a result of or in connection
        with the Seller’s execution, delivery and performance of its obligations under
        this Agreement.

       

      2.6 
        No
        Undisclosed Liabilities.
        Except
        as other disclosed in the Company’s financial statements or otherwise set forth
        on Schedule 2.6, the Company has no liability or obligation whatsoever, either
        direct or indirect, matured or unmatured, accrued, absolute, contingent or
        otherwise, and the Company is not aware of any basis for any such liability
        or
        obligation, including, without limitation, third party guaranties by the
        Company
        or liabilities (collectively, “Undisclosed Liabilities”). In addition, the
        Company and the Sellers represent that upon Closing, the Company will not
        have
        any liability or obligation whatsoever, either direct or indirect, matured
        or
        unmatured, accrued, absolute, contingent or otherwise.

       

      2.7 
        Capitalization.
        The
        authorized capital stock of the Company as of the date hereof, immediately
        prior
        to giving effect to the transactions contemplated hereby, consists of 50,000,000
        shares of the Company Common Stock, and 5,000,000 shares of Company Preferred
        Stock. Immediately prior to the Reverse Stock Split on April 7, 2006, the
        Company had a total of 98,285,596 shares of common stock are issued and
        outstanding. As of the date hereof, no shares of Company preferred stock
        are
        issued and outstanding. All of the outstanding shares of Company Common Stock
        are duly authorized, validly issued, fully paid and nonassessable, and have
        not
        been issued in violation of any preemptive right of stockholders. Except
        for a
        Securities Purchase Agreement dated an even date herewith, by and among the
        Company and purchasers thereto (including the Buyer), there are no outstanding
        subscriptions, voting trust agreement or other contract, agreement, arrangement,
        option, warrant, call, commitment or other right of any character obligating
        or
        entitling the Company to issue, sell, redeem or repurchase any of its
        securities, and there is no outstanding security of any kind convertible
        into or
        exchangeable for Company Common Stock. To the Company’s knowledge, no
        stockholder currently holds registration rights. 

       

      2.8 
        Compliance
        With Law.
        The
        Company and the Company’s officers and directors are in compliance with all
        applicable federal, state, local and foreign laws and regulations which are
        applicable to the operation of the Company’s business. The Company and the
        Company’s officers and directors have not received any written notice to the
        effect that, or otherwise have been advised that the Company or its officers
        or
        directors are not in compliance with any of such laws or orders. To the
        Company’s knowledge, the Company and its officers and directors are not
        currently, or have been, the subject of any inquiries, investigations, or
        requests for documents or other information related to its compliance with
        any
        laws or orders. The Company is not, and to the Company’s knowledge has not been,
        subject to any regulatory enforcement actions or consent decrees. None of
        the
        Company’s officers and directors have been convicted of a felony or
        misdemeanor.

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      2.9 
        No
        Conflicts.
        The
        execution and delivery of this Agreement does not, and the performance by
        the
        Sellers of their obligations under this Agreement and the consummation of
        the
        transactions contemplated hereby does not and will not conflict with or result
        in a violation or breach of any term or provision of any law, order, permit,
        statute, rule or regulation applicable the Sellers or the Company, any of
        their
        affiliates, or any of the businesses, or assets or properties of the
        Company.

       

      2.10 
        SEC
        Documents.
        As of
        the Closing Date, except as set forth on Schedule 2.10, none of the Company’s
        filings with the SEC are under review or are the subject of comment letters
        which have not been resolved. As of their respective filing dates, the Company’s
        Annual Report on Form 10-KSB for the year ended December 31, 2004, and all
        reports filed with the SEC subsequent thereto (the “SEC Documents”), have
        complied in all material respects with the requirements of the Exchange Act
        and
        the rules and regulations of the SEC promulgated thereunder applicable to
        the
        SEC Documents. As of their respective filing dates, to the Company’s knowledge
        none of the SEC Documents contained an untrue statement of a material fact
        or
        omitted to state a material fact required to be stated therein or necessary
        to
        make the statements therein, in light of the circumstances under which they
        were
        made, not misleading.

       

      2.11 
        Shell
        Company; Not a Blank Check Company.
        The
        Company is a “shell company” as such term is defined by Rule 405 as promulgated
        under the Securities Act and Rule 12b-2 as promulgated under the Exchange
        Act.
        The Company is not a “blank check company” as such term is defined by Rule 419
        as promulgated under the Securities Act.
        

       

      2.12 
        Material
        Misstatements and Omissions.
        As of
        the Closing Date, the representations and warranties of the Company contained
        in
        this Agreement (including the exhibits and schedules hereto) do not contain
        any
        untrue statement of a material fact and do not omit to state a material fact
        necessary to make the statements or facts contained herein or therein, in
        light
        of the circumstances made, not misleading.

       

      

      ARTICLE
        III

       

      REPRESENTATIONS
        AND WARRANTIES OF THE BUYER

       

      3.1 
        Each
        Buyer represents and warrants to the each of the Sellers: 

       

      (a) 
        Authority
        Relative to this Agreement.
        The
        Buyer has the requisite power and/or authority to enter into this Agreement
        and
        carry out the Buyer’s obligations hereunder. This Agreement has been duly and
        validly executed and delivered by each of the Buyer and constitutes a valid
        and
        binding obligation of each of the Buyer, enforceable in accordance with its
        terms, except as such enforcement may be limited by bankruptcy, insolvency
        or
        other similar laws affecting the enforcement of creditors' rights generally
        or
        by general principles of equity. 

       

      (b) 
        The
        Buyer’s Representations Regarding the Shares.
        Buyer
        understands that the Securities are “restricted securities” and have not been
        registered under the Securities Act or any applicable state securities law
        and
        is acquiring the Shares as principal for its own account and not with a view
        to
        or for distributing or reselling such Shares or any part thereof, has no
        present
        intention of distributing any of such Shares and has no arrangement or
        understanding with any other persons regarding the distribution of such Shares
        (this representation and warranty not limiting such Buyer’s right to sell the
        Shares pursuant to a registration statement or otherwise in compliance with
        applicable federal and state securities laws. Buyer is acquiring the Shares
        hereunder in the ordinary course of its business. Buyer does not have any
        agreement or understanding, directly or indirectly, with any Person to
        distribute any of the Shares.

       

      (c) 
        The
        Buyer’s Status.
        At the
        time the Buyer receives any of the Shares, the Buyer will be an “accredited
        investor” as defined in Rule 501 under the Securities Act.  
        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

      

       

      (d) 
        Experience
        of the Buyer.
        Buyer,
        either alone or together with its representatives, has such knowledge,
        sophistication and experience in business and financial matters so as to
        be
        capable of evaluating the merits and risks of the prospective investment
        in the
        Shares, and has so evaluated the merits and risks of such investment. Buyer
        is
        able to bear the economic risk of an investment in the Shares and, at the
        present time, is able to afford a complete loss of such investment.

       

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

       

      (f) 
        Material
        Misstatements of Omissions.
        As
        of the
        Closing Date, the representations and warranties of Buyer contained in this
        Agreement (including the exhibits and schedules hereto) do not contain any
        untrue statement of a material fact and do not omit to state a material fact
        necessary to make the statements or facts contained herein or therein, in
        light
        of the circumstances made, not misleading. 

      

      

      ARTICLE
        IV

       

      DELIVERIES
        & CONDITIONS

       

      4.1 
        Items
        to be delivered to the Buyer at the Closing by the Sellers.
        The
        Buyer’s obligation to purchase the Shares is conditioned on the following
        closing conditions and deliveries:

       

         (a)  
        Delivery
        of the following:

       

      (i) 
        copies
        of
        the Company’s Articles of Incorporation and amendments thereto, Bylaws and
        amendments thereto;

       

      (ii) 
        all
        minutes and resolutions of the board of directors and of the shareholders
        (and
        meetings of shareholders) in possession of the Company;

       

      (iii) 
        shareholder
        list of the Company;

       

      (iv) 
        all
        financial statements and tax returns in possession of the Company;
        and

       

      (v) 
        all
        applicable schedules hereto; 

       

      (b)  
        Letters
        of resignation from the Company’s current officers and directors to be effective
        upon Closing and confirming that they have no claim against the Company in
        respect of any outstanding remuneration or fees of whatever nature to be
        effective upon closing and after the appointments;

       

      (c)
          A
        copy of
        this Agreement duly executed has been delivered to the Buyer;

       

      (d)
          Share
        Certificate(s) issued in the name of the Buyer or its designee or
        assignee;

       

      (e)
          Any
        other
        document reasonably requested by the Buyer that the Buyer deem necessary
        for the
        consummation of this transaction; and

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (f)
          the
        representations and warranties set forth in Articles 2 and 3 of this Agreement
        shall be true and correct in all material respects. 

        

      4.2 
         Items
        to be delivered to the Sellers at Closing by the Buyer.
        

       

      (a) 
        All
        applicable exhibits and schedules hereto;

       

      (b) 
        A
        copy of
        this Agreement duly executed;

       

      (c) 
        any
        other
        document reasonably requested by the Sellers that it deems necessary for
        the
        consummation of this transaction; and

       

      (d) 
        the
        Closing Payment. 

      

      

      ARTICLE
        V

       

      COVENANTS

       

      5.1 
         Seller
        Covenants.
        

       

      (a) 
        The
        Sellers shall cooperate with the designees of the Buyer with: (i) filing
        the
        necessary documents with the SEC and the Maryland Secretary of State as
        reasonably requested by the Buyer; (ii) appoint designees of the Buyer as
        members of the board of directors or officers of the Company and to promptly
        resign when requested by the Buyer as a member of the board of directors
        or
        officer of the Company as set forth in Schedule
        B.

       

      (b) 
        The
        Sellers shall assist in any way to ensure that the shares of the Company’s
        Common Stock shall continue to be quoted on the OTCBB, and to notify the
        Buyer
        if the Company receives any notification (either oral or written) materially
        adversely effecting such status.

      

       

      ARTICLE
        VI

       

      INDEMNIFICATION

       

      6.1 
        By
        Sellers.
        Sellers
        shall indemnify, defend and hold harmless the Buyer, its affiliates and their
        respective officers, directors, members, shareholders, employees, agents,
        successors, assigns and affiliates from and against any and all costs, damages,
        lawsuits, deficiencies, claims and expenses, including without limitation,
        interest, penalties, costs of mitigation, attorneys’ fees and all amounts paid
        in investigation, defense or settlement of any of the foregoing (collectively,
        the “Damages”), incurred in connection with, arising out of, resulting from or
        incident to any breach of any covenant, representation, warranty or agreement
        or
        the inaccuracy of any representation, made by Sellers in or pursuant to this
        Agreement; provided however that Damages under this Section 6.1 shall be
        limited
        to the amount of the Closing Payment. 

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      6.2 
        By
        Buyer.
        Buyer
        shall indemnify, reimburse, defend and hold harmless Sellers and their officers,
        directors, employees, agents, successors and assigns from and against any
        and
        all Damages incurred in connection with, arising out of, resulting from or
        incident to any breach of any covenant, representation, warranty or agreement
        or
        the inaccuracy of any representation, made by Buyer in or pursuant to this
        Agreement; provided however that Damages under this Section 6.2 shall be
        limited
        to the amount of the Closing Payment. 

       

      6.3 
        Defense
        of Claims.
        If any
        action or proceeding is filed or initiated against any party entitled to
        the
        benefit of indemnity hereunder, written notice thereof shall be given to
        the
        indemnifying party as promptly as practicable (and in any event within ten
        (10)
        days after the service of the citation or summons); provided, however, that
        the
        failure of any indemnified party to give timely notice shall not affect rights
        to indemnification hereunder except to the extent that the indemnifying party
        demonstrates actual damage caused by such failure. After such notice, if
        the
        indemnifying party shall acknowledge in writing to the indemnified party
        that
        the indemnifying party shall be obligated under the terms of its indemnity
        hereunder in connection with such action or proceeding, then the indemnifying
        party shall be entitled, if it so elects, to take control of the defense
        and
        investigation of such action or proceeding and to employ and engage attorneys
        of
        its own choice to handle and defend the same, such attorneys to be reasonably
        satisfactory to the indemnified party, at the indemnifying party’s cost, risk
        and expense (unless (i) the indemnifying party has failed to assume the defense
        of such action or proceeding; or (ii) the named parties to such action or
        proceeding include both of the indemnifying party and the indemnified party,
        and
        the indemnified party and its counsel determine in good faith that there
        may be
        one or more legal defenses available to such indemnified party that are
        different from or additional to those available to the indemnifying party
        and
        that joint representation would be inappropriate), and to compromise or settle
        such action or proceeding, which compromise or settlement shall be made only
        with the written consent of the indemnified party, such consent not to be
        unreasonably withheld. The indemnified party may withhold such consent if
        such
        compromise or settlement would adversely affect the conduct of its business
        or
        requires less than an unconditional release to be obtained. If (i) the
        indemnifying party fails to assume the defense of such action or proceeding
        within fifteen (15) days after receipt of notice thereof pursuant to this
        Section 6.3; or (ii) the named parties to such action or proceeding include
        both
        the indemnifying party and the indemnified party and the indemnified party
        and
        its counsel determine in good faith that there may be one or more legal defenses
        available to such indemnified party that are different from or additional
        to
        those available to the indemnifying party and that joint representation would
        be
        inappropriate, the indemnified party against which such action or proceeding
        has
        been filed or initiated will (upon delivering notice to such effect to the
        indemnifying party) have the right to undertake, at the indemnifying party’s
        cost and expense, the defense, compromise or settlement of such action or
        proceeding on behalf of and for the account and risk of the indemnifying
        party;
        provided, however, that such action or proceeding shall not be compromised
        or
        settled without the written consent of the indemnifying party, which consent
        shall not be unreasonably withheld. In the event the indemnified party assumes
        defense of the action or proceeding, the indemnified party will keep the
        indemnifying party reasonably informed of the progress of any such defense,
        compromise or settlement and will consult with, when appropriate, and consider
        any reasonable advice from, the indemnifying party regarding any such defense,
        compromise or settlement. The indemnifying party shall be liable for any
        settlement of any action effected pursuant to and in accordance with this
        Section 6.3 and for any final judgment (subject to any right of
        appeal).

       

      Regardless
        of whether the indemnifying party or the indemnified party takes up the defense,
        the indemnifying party will pay reasonable costs and expenses in connection
        with
        the defense, compromise or settlement for any action or proceeding under
        this
        Section 6.3.

       

      The
        indemnified party shall cooperate in all reasonable respects with the
        indemnifying party and such attorneys in the investigation, trial and defense
        of
        such action or proceeding and any appeal arising therefrom; provided, however,
        that the indemnified party may, at its own cost, participate in the
        investigation, trial and defense of such action or proceeding and any appeal
        arising therefrom. The indemnifying party shall pay all expenses due under
        this
        Section 6.3 as such expenses become due. In the event such expenses are not
        so
        paid, the indemnified party shall be entitled to settle any action or proceeding
        under this Section 6.3 without the consent of the indemnifying party and
        without
        waiving any rights the indemnified party may have against the indemnifying
        party.

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      6.4 
        Other
        Claims.
        A claim
        for indemnification for any matter not involving a third-party claim may
        be
        asserted by notice to the party from whom indemnification is
        sought.

       

       

      ARTICLE
        VII

       

      TERMINATION

       

      7.1
          Termination.
        This
        Agreement may be terminated:

       

      (a) 
        at
        any
        time before, or at, Closing by the mutual written agreement of the Buyer
        and the
        Sellers; 

       

      (b) 
        prior
        to
        the Closing by any Party at any time if any provision (including, but not
        limited to, the representations and warranties) of this Agreement that is
        applicable to or required to be performed by the other Party shall be materially
        untrue or fail to be accomplished or if any conditions set forth in Article
        5
        hereof have not been fully satisfied;

       

      (c) 
        Upon
        termination of this Agreement for any reason, in accordance with the terms
        and
        conditions set forth in this paragraph, each Party shall bear all costs and
        expenses as that Party has incurred. 

       

      ARTICLE
        VIII

       

      MISCELLANEOUS

       

      8.1 
         Access
        to Books and Records.
        During
        the course of this transaction through Closing, each Party agrees to make
        available for inspection all corporate books, records and assets, and otherwise
        afford to each other and their respective representatives, reasonable access
        to
        all documentation and other information concerning the business, financial
        and
        legal conditions of each other for the purpose of conducting a due diligence
        investigation thereof. Such due diligence investigation shall be for the
        purpose
        of satisfying each Party as to the business, financial and legal condition
        of
        each other for the purpose of determining the desirability of consummating
        the
        proposed transaction. The Parties further agree to keep confidential and
        not use
        for their own benefit, except in accordance with this Agreement any information
        or documentation obtained in connection with any such
        investigation.

       

      8.2 
        Further
        Assurances.
        If, at
        any time after the Closing, the Parties hereby mutually agree
        that any further deeds, assignments or assurances in law or that any other
        things are necessary, desirable or proper to complete the transactions
        contemplated hereby in accordance with the terms of this agreement or to
        vest,
        perfect or confirm, of record or otherwise, the title to any property or
        rights
        of the Parties hereto, the Parties agree that their proper officers and
        directors shall execute and deliver all such proper deeds, assignments and
        assurances in law and do all things necessary, desirable or proper to vest,
        perfect or confirm title to such property or rights and otherwise to carry
        out
        the purpose of this Agreement, and that the proper officers and directors
        the
        Parties are fully authorized to take any and all such action.

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      8.3 
        Notice.
        All
        communications, notices, requests, consents or demands given or required
        under
        this Agreement shall be in writing and shall be deemed to have been duly
        given
        when delivered to, or received by prepaid registered or certified mail or
        recognized overnight courier addressed to, or upon receipt of a facsimile
        sent
        to, the Party for whom intended, as follows, or to such other address or
        facsimile number as may be furnished by that Party by notice in the manner
        provided herein:

       

      If
        to
        the Sellers:

       

      c/o
        Kevin
        Leung, Esq. 

      Richardson
        & Patel LLP

      10900
        Wilshire Blvd. Suite 500

      Los
        Angeles, CA 90024

      

      If
        to
        the Buyer:
        

       

      c/o
        ARC
        Investment Partners, LLC

      9440
        Little Santa Monica Blvd., Suite 400

      Beverly
        Hills, CA  90210 

      Attn:
        Adam Roseman

      

      with
        copies (which shall not constitute notice) to:

       

      Katten
        Muchin Rosenman LLP

      2029
        Century Park East, Suite 2600

      Los
        Angeles, CA 90067

      
        	
              	Facsimile:	
                (310)
                  712-8482

                (310)
                  712-8480

              

      

      
        	
              	Attention:	
                Eric
                  A. Klein, Esq.

                John J. Molloy III, Esq.
                  

              

      

       

      8.4 
        Entire
        Agreement.
        This
        Agreement, the Exhibits and Schedules hereto and any instruments and agreements
        to be executed pursuant to this Agreement, set forth the entire understanding
        of
        the Parties hereto with respect to its subject matter, merges and supersedes
        all
        prior and contemporaneous understandings with respect to its subject matter
        and
        may not be waived or modified, in whole or in part, except by a writing signed
        by each of the Parties hereto. No waiver of any provision of this Agreement
        in
        any instance shall be deemed to be a waiver of the same or any other provision
        in any other instance. Failure of any party to enforce any provision of this
        Agreement shall not be construed as a waiver of its rights under such
        provision.

       

      8.5 
        Successors
        and Assigns.
        This
        Agreement shall be binding upon, enforceable against and inure to the benefit
        of, the Parties hereto and their respective heirs, administrators, executors,
        personal representatives, successors and assigns, and nothing herein is intended
        to confer any right, remedy or benefit upon any other person. This Agreement
        may
        not be assigned by any of the Sellers hereto except with the prior written
        consent of the Buyer. This Agreement and all of the obligations of the Sellers
        may be assigned by the Buyer without the prior notice to the Sellers or written
        consent of any of the Sellers and upon assignment, all of the rights and
        obligations of the Buyer shall be the rights and obligations of the Buyer’s
        designated assignee. 

       

      8.6 
        Governing
        Law.
        This
        Agreement shall in all respects be governed by and construed in accordance
        with
        the laws of the State of California, USA that are applicable to agreements
        made
        and fully to be performed in such state, without giving effect to conflicts
        of
        law principles.

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      8.7 
        Counterparts.
        This
        Agreement may be executed in multiple counterparts, each of which shall be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument.

       

      8.8 
        Construction.
        Headings contained in this Agreement are for convenience only and shall not
        be
        used in the interpretation of this Agreement. References herein to Articles,
        Sections and Exhibits are to the articles, sections and exhibits, respectively,
        of this Agreement. The Schedules hereto are hereby incorporated herein by
        reference and made a part of this Agreement. As used herein, the singular
        includes the plural, and the masculine, feminine and neuter gender each includes
        the others where the context so indicates.

       

      8.9 
        Severability.
        If any
        provision of this Agreement is held to be invalid or unenforceable by a court
        of
        competent jurisdiction, this Agreement shall be interpreted and enforceable
        as
        if such provision were severed or limited, but only to the extent necessary
        to
        render such provision and this Agreement enforceable.

       

      8.10 
        Arbitration.
        Any
        controversy arising out of, connected to, or relating to any matters herein
        of
        the transactions with the Parties hereto on behalf of the undersigned, or
        this
        Agreement, or the breach thereof, including, but not limited to any claims
        of
        violations of federal and/or state securities laws, banking statutes, consumer
        protection statutes, federal and/or state anti-racketeering (e.g. RICO) claims
        as well as any common law claims and any state law claims of fraud, negligence,
        negligent misrepresentations, and/or conversion, or the laws of any territory,
        country or jurisdiction, shall be settled by arbitration; and in accordance
        with
        this paragraph any judgment on the arbitrator’s award may be entered in any
        court having jurisdiction thereof. In the event of such a dispute, each party
        agrees to arbitration conducted through the auspices of American Arbitration
        Association. Venue for any action shall be in Los Angeles,
        California.

       

      8.11 
        Confidentiality;
        Public Disclosure.
        Each of
        the parties hereto hereby agrees that the information obtained pursuant to
        the
        negotiation and execution of this Agreement shall be treated as confidential
        and
        not be disclosed to third parties who are not agents of one of the Parties
        to
        this Agreement.

       

      8.12 
        Notification
        of Certain Matters.
        Each
        Party shall give prompt notice to the other of (i) the occurrence or
        non-occurrence of any event, the occurrence or non-occurrence of which is
        likely
        to cause any representation or warranty of such party contained in this
        Agreement to be untrue or inaccurate and (ii) any failure of such party to
        comply with or satisfy any covenant, condition or agreement to be complied
        with
        or satisfied by it hereunder; provided,
        however,
        that
        the delivery of any notice pursuant to this Section shall not limit or
        otherwise affect any remedies available to the party receiving such notice.
        Further, disclosure pursuant to this Section shall not be deemed to amend
        or supplement the Schedules hereto or prevent or cure any
        misrepresentations, breach of warranty or breach of covenant.

       

      8.13 
        Currency.
        The
        parties hereto agree that all monetary amounts set forth herein are referenced
        in United States dollars, unless otherwise stated.

       

      8.14 
        Rules
        of Construction.
        The
        parties hereto agree that they have been represented by counsel during the
        negotiation and execution of this Agreement and, therefore, waive the
        application of any law, regulation, holding or rule of construction providing
        that ambiguities in an agreement or other document will be construed against
        the
        party drafting such agreement or document.

       

      8.15 
        Counterparts.
        This
        Agreement may be executed in counterparts and by facsimile signatures. In
        the
        event that any signature is delivered by facsimile transmission, such signature
        shall create a valid and binding obligation of the party executing (or on
        whose
        behalf such signature is executed) with the same force and effect as if such
        facsimile signature page were an original thereof. All such counterparts
        shall
        together constitute one and the same instrument.

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, each of the Parties hereto has executed this Agreement as
        of
        the date first set forth above.

    

    
      
         

        
          
            	 	 	
                    BUYER:

                  
	 	 	 
	 	 	 
	 	 	/s/ Younes
                    Nazarian
	 	 	
                    Younes
                      Nazarian and Soraya Nazarian, trustees of the 

                    Younes
                      & Soraya Nazarian Revocable Trust

                  
	 	 	 
	 	 	
                    Shares
                      purchased: 13,502

                    Purchase
                      Price: $233,798.87

                  
	 	 	 
	 	 	 
	 	 	/s/ David
                    Nazarian 
	 	 	
                    David
                      Nazarian and Angella Nazarian, trustees of the 

                    David
                      & Angella Nazarian Family Trust

                  
	 	 	 
	 	 	
                    Shares
                      purchased: 13,502

                    Purchase
                      Price: $233,798.87

                  
	 	 	 
	 	 	 
	 	 	/s/
                    Sam Nazarian
	 	 	Sam
                    Nazarian
	 	 	 
	 	 	
                    Shares
                      purchased: 13,502

                    Purchase
                      Price: $233,798.87

                  

          

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

      

      
        
          	 	 	SELLERS:
	 	 	
                
	 	 	/s/
                  Mark Y. Abdou
	 	 	Mark
                  Y. Abdou
	 	 	 
	 	 	/s/
                  Addison Adams
	 	 	Addison
                  Adams
	 	 	 	 
	 	 	CORPORATE
                  CAPITAL
                  PARTNERS
	 	 	 	 
	 	 	By:  
	/s/
                  Michael Donahue
	 	 	 	Name:  Michael
                  Donahue
	 	 	 	Title:  General
                  Partner
	 	 	
                
	 	 	
                  /s/
                    Ryan Hong

                
	 	 	
                  Ryan
                    Hong

                
	 	 	 
	 	 	 
	 	 	/s/
                  Luan Phan
	 	 	Luan
                  Phan
	 	 	 
	 	 	RP CAPITAL,
                  LLC
	 	 	 
	 	 	/s/
                  Nimish Patel
	 	 	
                  Nimish
                    Patel

                  Manager

                
	 	 	 
	 	 	
                  /s/
                    Silas Phillips

                
	 	 	
                  Silas
                    Phillips

                
	 	 	 	 

        

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

      

      SCHEDULE
        A

      

      SELLERS

      

      
        	
                 

                Stockholder

              	 	
                 

                Certificate
                  Number*

              	 	
                 

                Date
                  of Certificate

              	 	
                Shares
                  (pre-

                Reverse-

                Split)

              	 	
                Shares
                  (post-Reverse-

                Split)

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Mark
                  Y. Abdou

              	 	 	
                190

              	
                 

              	
                 

              	
                11-Jan-06

              	
                 

              	 	
                10,289,048

              	 	 	
                4,712
                  

              	 
	
                Mark
                  Y. Abdou

              	 	 	
                181

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                2,350,910

              	 	 	
                1,077
                  

              	 
	
                Addison
                  Adams

              	 	 	
                191

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                5,140,924

              	 	 	
                2,354
                  

              	 
	
                Addison
                  Adams

              	 	 	
                182

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                1,174,632

              	 	 	
                538
                  

              	 
	
                Corporate
                  Capital Partners 

              	 	 	
                192

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                2,059,250

              	 	 	
                943
                  

              	 
	
                Corporate
                  Capital Partners

              	 	 	
                183

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                470,511

              	 	 	
                216
                  

              	 
	
                Ryan
                  Hong

              	 	 	
                193

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                3,088,874

              	 	 	
                1,415
                  

              	 
	
                Ryan
                  Hong

              	 	 	
                184

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                705,767

              	 	 	
                324
                  

              	 
	
                RP
                  Capital, LLC

              	 	 	
                208

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                41,141,792

              	 	 	
                18,838
                  

              	 
	
                RP
                  Capital, LLC

              	 	 	
                203

              	
                 

              	
                 

              	
                12-Jan-06

              	 	 	
                9,400,350

              	 	 	
                4,305
                  

              	 
	
                Luan
                  K. Phan

              	 	 	
                195

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                5,140,924

              	 	 	
                2,354
                  

              	 
	
                Luan
                  K. Phan

              	 	 	
                186

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                1,174,632

              	 	 	
                538
                  

              	 
	
                Silas
                  Phillips

              	 	 	
                196

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                5,140,924

              	 	 	
                2,354
                  

              	 
	
                Silas
                  Phillips

              	 	 	
                187

              	
                 

              	
                 

              	
                11-Jan-06

              	 	 	
                1,174,632

              	 	 	
                538
                  

              	 
	
                TOTAL:

              	 	 	 	 	 	 	 	 	
                88,453,170
                  

              	 	 	
                40,506
                  

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                *
                  Stock certificates represent the right to receive the “post-Reverse-Stock
                  Split” shares listed above and opposite the stockholders name, after
                  giving effect to a 2,184-to-1 Reverse Stock Split that occurred
                  on April
                  7, 2006. 

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      SCHEDULE
        B

      

      OFFICER
        AND DIRECTOR APPOINTMENTS

      

       

      Silas
        Phillips is the sole director, Chief Executive Officer, acting Chief Financial
        Officer, and Secretary of the Company. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        2.10

      

      SEC
        DOCUMENTS

       

       

      The
        Company received comments by telephone from the Securities and Exchange
        Commission (“SEC”) staff regarding the Company’s Amended Form 10-KSB Annual
        Report (the “Form 10-KSB/A”) that was filed with the SEC on January 4, 2006. The
        Company is in the process of responding to these comments, which include
        the
        following: 

      

      (1)
         the
        Independent Auditors’ Report shall be revised to include time periods that were
        in fact covered in the audit of the Company’s balance sheets and in the audit of
        the Company’s related statements of operations, stockholders equity (deficit)
        and cash flows but which were inadvertently left out in the description of
        such
        audit in the Independent Auditors’ Report; 

      

      (2)
         the
        opinion of the auditors regarding the financial statements in the Independent
        Auditors’ Report shall be revised to include additional time periods that were
        inadvertently omitted, such as (a) that the opinion covered the Company’s
        financial statements for the periods ending December 31, 2003 in addition
        to the
        periods referenced; and (b) that the periods covered by the opinion regarding
        the Company’s related statements of operations, stockholders equity (deficit)
        and cash flows include the twelve months ended December 31, 2003, and the
        period
        from May 31, 1998 (Date of Inception) to December 31, 2004, in addition to
        the
        periods referenced; and

      

      (3)
         the
        Company’s Condensed Consolidated Balance Sheet shall be revised to correct an
        inadvertent calculation error as to the Company’s Total Liabilities and
        (Deficiency in) Stockholders’ Equity (“Total Liabilities”) as of December 31,
        2004 and 2003, such that it correctly reflects Total Liabilities and Total
        Assets in the balance sheets dated as of December 31, 2004 and
        2003.

      

      The
        Company’s auditors have furnished a revised Independent Auditors’ Report
        reflecting the revisions described above. The Company intends to promptly
        file
        this revised report along with the revised Condensed Consolidated Balance
        Sheet
        referenced in (3) above, in an Amended Form 10-KSB/A, upon receipt of the
        final
        version of the Company’s revised balance sheet from the Company’s auditors.

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