Document:

Unassociated Document

 

 

Exhibit 10.1

 

AMENDED AND RESTATED SETTLEMENT AGREEMENT

 

THIS AMENDED AND RESTATED SETTLEMENT AGREEMENT (the “Agreement”), dated as of July 18, 2012, is entered into by and among China Electronics Holdings, Inc., a Nevada corporation (the “Company”), American Capital Partners, LLC (“ACP”) and individual investors as listed in Schedule A in connection with the subscription agreement of the Company’s July 2010 and August 2010 private placements (collectively, the “Offering”),, and is intended to amend, restate and replace, in its entirety, the original settlement agreement by and between the Company and ACP dated December 6, 2011 and is effective as of the date hereof Defined terms not otherwise defined herein shall have the meanings set forth in the Offering

 

WHEREAS, pursuant to Section 9 of the Subscription Agreements entered into between the Company and each of the Subscribers (collectively, the “Subscription Agreements”) in connection with the Offering, the Company was required to file a registration statement with the Securities and Exchange Commission and prosecute the same to effectiveness by the dates set forth in the Subscription Agreements and has failed to do so (the “Non-Registration Event”);

 

WHEREAS, pursuant to the Subscription Agreements entered into between the Company and each of the Subscribers, Subscribers are entitled to liquidated damages from the Company on the first business day after the earliest date of occurrence of any or all Non-Registration Events and for each subsequent thirty (30) day period for a aggregate amount no more than $262,500 (the “Maximum Liquidated Damages”);

 

WHEREAS, pursuant to Section 12 of the Subscription Agreements entered into between the Company and each of the Subscribers, ACP is appointed as subscriber’s representative (the “Subscriber Representative”) to act collectively on behalf of each and all subscribers at its sole discretion with respect to the transaction documents and all amendments thereto except for Oso Capital, LLC, Lee Bear I, LLC, Chestnut Ridge Partners, LP, Jon Baldwin, DNST Properties, LLC, Burke Family Trust, SEL Private Trust Co. FAO Jim Smucker Co. Master Trust, Coronado Capital Partners LP, Lazy Bear I, LLC, Joseph R. Lee, Chris Clayton and Bear Marsh, LLC;

 

WHEREAS, a dispute has arisen as to the right of the Subscribers to liquidated damages from the Company; and

 

WHEREAS, the Company has made payment of liquidated damages in the amount of $131,250 to ACP and Subscribers as of today; and

 

WHERAS, the Company and ACP on behalf of the Subscribers desire to resolve the dispute as to the payment of the balance of the liquidated damages on the terms and conditions set forth herein;

 

NOW THEREOF, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and ACP hereby agree as follows:

 

	
  

	
1.

	
On or before July 20, 2012, the Company will deliver $50,000 by wire transfer to Sichenzia Ross Friedman Ference LLP’s Escrow Account pursuant to the attached wire instructions for disbursement to the Subscribers upon receipt of a fully executed copy of this Agreement;

 

	
  

	
2.

	
On or before July 31, 2012, the Company shall pay an additional $50,000 by wire transfer to Sichenzia Ross Friedman Ference LLP’s Escrow Account pursuant to the attached wire instructions for disbursement to the Subscribers upon receipt of a fully executed copy of this Agreement; and

 

	
  

	
3.

	
On or before August 31, 2012, the Company shall pay an additional $31,250 by wire transfer to Sichenzia Ross Friedman Ference LLP’s Escrow Account pursuant to the attached wire instructions for disbursement to the Subscribers upon receipt of a fully executed copy of this Agreement;

 

FURTHER, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and ACP hereby agree as follows:

 

	
  

	
4.

	
Subject to the full and timely payment no later than August 31, 2012, of the $131,250 provided for above:

 

  

  

  

 

	
  

	
a.

	
ACP, on behalf of itself, and each of the Subscribers, forever releases and discharges the Company, China Electronic Holdings, Inc. (Delaware), Lu’an Guoying Electronic Sales Co., Ltd. and its shareholders, subsidiaries, affiliates, successors, and assigns (collectively, the “Releasees”) from any and all claims, demands, causes of action, and liabilities of any kind whatsoever (upon any legal or equitable theory, whether contractual, common-law, statutory, federal, state, local, or otherwise), whether known or unknown, arising out of or in connection with any further liquidated damages without limitation as identified in Section 7, Section 9, and Section 13(f)of the Subscription Agreement;

 

	
  

	
b.

	
ACP, on behalf of itself, and each of the Subscribers, waives any right it or they may have to require the Company to register any securities of the Company under the Securities Act of 1933, as amended, together with any right it or they may have to seek damages or otherwise declare an Event of Default under the Subscription Agreements including, without limitation under Sections 7(o) “Further Registration Statements,” 7(r) “Uplisting”,9(d) “Non-Registration Events”, and 13(f) “Damages”.  This agreement supersedes in its entirety Section 7(o), 7(r), 9(d) and 13(f) of the Subscription Agreements in connection with the Offering.

 

Notwithstanding anything contained in the Subscription Agreements, ACP hereby agrees on behalf of itself, each and all of the Subscribers, that in the event any of them shall commence an action against the Company or its subsidiaries or any of their respective officers and directors, arising out of or related to the Subscription Agreements or any other matter, action or failure to act occurring on or prior to the date hereof, that each party shall to bear its own legal fees and expenses in connection therewith regardless of the outcome thereof.

 

IN WHITNESS WHEREOF, this Agreement is executed as of the date first set forth above.

 

CHINA ELECTRONICS HOLDINGS, INC.

 

By: /s/ Hailong Liu

Name: Hailong Liu

Title:   Chairman of the Board, CEO and President

 

AMERICAN CAPITAL PARTNERS, LLC

 

By: /s/ Anthony Gardini

Name: Anthony Gardini

Title:  CEO

 

 

BEAR MARSH LLC

By: /s/ Kevin Marsh

Name: Kevin Marsh

Title:

 

 

CHESTNUT RIDGE PARTNERS, LP

By: /s/Kenneth Pasternak

Name: Chestnut Ridge Capital, LLC., General Partner

Title: Kenneth Pasternak, Managing Member

 /s/ Chris Clayton

     Chris Clayton

 

CORONADO CAPITAL PARTNERS LP

By: /s/ Zach Easton

Name: Zach Easton

Title: President

 

  

  

  

 

SEL PRIVATE TRUST CO. FAO JIM SMUCKER CO. MASTER TRUST

By: /s/ Zach Easton

Name: Zach Easton

Title:  President

 

  

DNST PROPERTIES, LLC.

 

By: /s/ David Aufrecht

Name: Directional Managing Co., Manager

Title: David Aufrecht, Present

 

 

BURKE FAMILY TRUST

 

By: /s/ Peter Burke

Name: Peter Burke

Title: Trustee

 

OSO CAPITAL, LLC.

By: /s/ Scott B. Gann

Name: Scott B. Gann

Title:

 

 

LEE BEAR I, LLC.

 

By: /s/Scott Gann

Name:  Scott Gann

Title:  Lazy Bear, LLC. Oso Capital as member

 

LAZY BEAR I, LLC.

By: /s/Scott Gann

Name:  OSO Capital, LLC., by Scott Gann

Title:

/s/  Joseph R. Lee

      Joseph R. Lee

 

 /s/ Jon Baldwin

       Jon Baldwin

 

  

  

  

 

SCHEDULE A

 

 

BEAR MARSH LLC CHESTNUT RIDGE PARTNERS, LP

CHESTNUT RIDGE PARTNERS, LP

CHRIS CLAYTON

CORONADO CAPITAL PARTNERS LP

SEL PRIVATE TRUST CO. FAO JIM SMUCKER CO. MASTER TRUST

DNST PROPERTIES, LLC.

BURKE FAMILY TRUST

OSO CAPITAL, LLC.

LEE BEAR I, LLC.

LAZY BEAR LLC

 JOSEPH R. LEE

JON BALDWINf8k080812ex10i_epunk.htm

Exhibit 10.1

 

Addendum

 

SHARE CANCELLATION AGREEMENT

(Drecshler)

 

THIS SHARE CANCELLATION AGREEMENT (the "Agreement") is effective as of the 7th day of August, 2012 (the "Effective Date")

 

BETWEEN:

 

EPUNK INC., a corporation incorporated under the laws of Nevada, having a an office at 1060 Calle Negocio, Suite B, San Clemente CA 92673 (the "Company");

 

AND:

 

FRANK DRECSBLER, a businessperson with a residence at (the

"Shareholder")

 

WHEREAS:

 

	
A.

	
The Shareholder is the registered and beneficial owner of 4,750,000 shares of the Company's common stock;

	
B.

	
The Shareholder resigned from director position with the Company effective January 30, 2012 (the "Resignation");

	
C.

	
The Company is in the process of seeking financing for working capital purposes; and

	
D.

	
In connection with the Shareholder's resignation and reduced role with the Company in the future, and the Company's efforts to seek financing, the Shareholder and the Company wish to cancel 1,900,000 shares of common stock in the Company.

 

THIS AGREEMENT WITNESSES THAT in consideration of the premises and mutual covenants contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound hereby, agree as follows:

 

I . CANCELLATION OF SHARES

 

	
a.      

	
The Shareholder hereby agrees to cancel 1,900,000 shares of the Company's common stock and deliver a certificate representing such shares to the Company for cancellation and return to treasure (the "Surrendered Shares").

	
b.      

	
The Shareholder retains 2,850,000 shares of common stock in the Company (the "Remaining Shares").

 

2. CONSIDERATION

 

	
a.      

	
The Shareholder recognizes and acknowledges that the consideration for cancelling the Surrendered Shares will be the increase in value of the Remaining shares following completion of the financing.

 

3. REPRESENTATIONS

 

	
a.   

	
The Shareholder represents and warrants to the Company that:

 

	
i.    

	
He is the owner of the Surrendered Shares;

  

1

  

 

	
 ii.  

	
He has good and marketable title to the Surrendered Shares; and

 

	
iii.  

	
The Surrendered Shares are free and clear of all liens, security interests, pledges, encumbrances or liabilities of any kind whatsoever.

 

4. MISCELLANEOUS

 

	
a.     

	
Time. Time is expressly declared to be of the essence in this Agreement.

 

	
b.      

	
Presumption. This Agreement or any section thereof shall not be construed against any party due to the fact that said Agreement or any section thereof was drafted by said party.

 

	
c.     

	
Titles and Captions. All article, section and paragraph titles or captions contained in this Agreement are for convenience only and shall not deemed part of the context nor affect the interpretation of this Agreement.

 

	
e.     

	
Good Faith, Cooperation and Due Diligence. The parties hereto covenant, warrant and represent to each other good faith, complete cooperation, due diligence and honesty in fact in the performance of all obligations of the parties pursuant to this Agreement. All promises and covenants are mutual and dependent.

 

	
f.     

	
Assignment. This Agreement may not be assigned by either party hereto without the written consent of the other, but shall be binding upon the successors of the parties.

 

	
g.     

	
Notices. All notices required or permitted to be given under this Agreement shall be given in writing and shall be delivered, either personally or by express delivery service, to the party to be notified. Notice to each party shall be deemed to have been duly given upon delivery, personally or by courier, addressed to the attention of the officer at the address set forth heretofore, or to such other officer or addresses or by such other means as either party may designate, upon at least five days written notice, to the other party.

 

	
h.     

	
Entire agreement. This Agreement contains the entire understanding and agreement among the parties. There are no other agreements, conditions or representations, oral or written, express or implied, with regard thereto. This Agreement may be amended only in writing signed by all parties.

 

	
i.     

	
Waiver. A delay or failure to exercise a right under this Agreement, or a partial or single exercise of that right, shall not constitute a waiver of that or any other right.

 

	
j.     

	
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement. In the event that the document is signed by one party and faxed to another the parties agree that a faxed signature shall be binding upon the parties to this Agreement as though the signature was an original.

 

	
k.     

	
Successors. The provisions of this Agreement shall be binding upon all parties, their successors and assigns.

 

	
1.     

	
Counsel. The parties expressly acknowledge that each has been advised to seek separatecounsel for advice in this matter and has been given a reasonable opportunity to do so.

 

	
m.    

	
Jurisdiction. The parties hereby consent to the jurisdiction of the state and federal courts in the city of San Diego, California, for all matters arising from this Agreement.

 

	
n.    

	
Currency. Unless otherwise noted, all references to currency in this Agreement are to US Dollars.

 

  

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