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EXHIBIT
10.1
ACQUISITION
AGREEMENT
This
Acquisition Agreement (“Agreement”) made on this 27th
day of October 2009, by and between Artfest International,
Inc. , a public corporation organized under the laws of Nevada
(the “Company”), with its principle place of business
at 15851 Dallas Parkway, Suite 600 Addison, TX 75001, and Luxor
International (“LXI”), a private company organized
under the laws of Nevada, with its principal place of business at
4035 Monument Lane, Frisco Texas 75034.
Terms of Agreement
In consideration of the mutual promises,
covenants and representations contained herein, the parties
herewith agree as follows:
ARTICLE I
ACQUISITION TERMS
1.01
Acquisition . The Company will acquire 100% of the assets
listed in Exhibit A attached hereto, in exchange for Five Million
($5,000,000) dollars to be paid in $1,000,000 dollars and
$4,000,000 worth of Common shares of the Company’s
stock.
1.02
Closing . The Closing of this transaction will
take place on October 28, 2009, under the terms described in
Article IV of this Agreement, unless mutually extended by the
parties.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF
THE COMPANY
The Company
represents and warrants to LXI the following:
2.01
Organization . The Company is a corporation
duly organized, validly existing, and in good standing under the
laws of the state of Nevada and has all necessary corporate powers
to own properties and carry on its business. All actions taken by
the incorporators, Directors and/or shareholders of Company have
been valid and in accordance with all applicable laws.
2.02
Capital . The authorized capital stock of Company consists
of 1,000,000,000 shares of Common Stock, of which 961,320,064
shares are issued and outstanding and 5,000,000 shares of Preferred
Stock, of which 3,000,000 are issued and outstanding. All
outstanding shares are fully paid and non-assessable, free of
liens, encumbrances, options, restrictions and legal or equitable
rights of others not a party to this Agreement. At the Closing,
there may be outstanding subscriptions, options, rights, warrants,
convertible securities, or other agreements or commitments
obligating the Company to issue or transfer from treasury any
additional shares of its capital stock. None of the
outstanding shares of the Company are subject to any stock
restriction agreements.
2.03
Financial Statements . The audited balance
sheet as of June 30, 2009, and the related statements of income and
retained earnings for the periods then ended fairly present the
financial position of the Company as of the dates of the balance
sheets included in the financial statements, and the results of its
operations for the period indicated.