Document:

EXHIBIT 10.1

 

KUN DE INTERNATIONAL HOLDINGS INC. 

2015 FLEXIBLE STOCK PLAN

 

ARTICLE I

NAME AND PURPOSE

 

	
1.1

	
Name. The name of the Plan is the "Kun De International Holdings Inc. 2015 Flexible Stock Plan."

 

	
3.2

	
Purpose. The Company has established the Plan to attract, retain, motivate and reward Employees and other individuals, to encourage ownership of the Company's Common Stock by Employees and other individuals, and to promote and further the best interests of the Company.

 

ARTICLE II

DEFINITIONS OF TERMS AND RULES OF CONSTRUCTION

 

	
2.1

	
General Definitions. The following words and phrases, when used in the Plan, unless otherwise specifically defined or unless the context clearly otherwise requires, shall have the following respective meanings:

 

	
A. 

	
Agreement. The document which evidences the grant of any Benefit under the Plan and which sets forth the Benefit and the terms, conditions and provisions of, and restrictions relating to, such Benefit.

 

	
B. 

	
Benefit. Any benefit granted to a Participant under the Plan.

 

	
C. 

	
Board. The Board of Directors of the Company.

 

	
D. 

	
Company. Kun De International Holdings Inc., a Delaware corporation

 

	
E. 

	
Committee. The Committee described in Section 5.1, or in the event that the Board of Directors does not appoint a Committee, then the Board of Directors.

 

	
F. 

	
Common Stock. The Company's Common Stock, $0.001 par value.

 

	
G. 

	
Effective Date. The date that the Plan is adopted by the Board of Directors.

 

	
H. 

	
Employee. Any person, consultant or professional employed by the Employer.

 

	
I. 

	
Employer. The Company and any Subsidiary.

 

	
J. 

	
Exchange Act. The Securities Exchange Act of 1934, as amended.

 

	
K. 

	
Fair Market Value. The last reported sale price, regular way, of the Shares on any day or, in case no such reported sale takes place on such day, the average of the reported closing bid and asked prices, regular way, in either case on the principal national securities exchange on which the Shares are listed or if the Shares are not listed on a national securities exchange and are listed on the NASDAQ Stock Market, the sale price determined in the same fashion or, if the Shares are not so listed on any of the foregoing, the average of the bid and asked prices on such day as furnished by dealers in the Shares in the over-the-counter market. All calculations of the current market price shall be made to the nearest cent.

 

	
L. 

	
Option. An option to purchase Shares granted under the Plan.

 

	
M. 

	
Other Stock Based Award. An award under the Plan that is valued in whole or in part by reference to, or is otherwise based on, Common Stock.

 

	 
	
1

	

 

	
N. 

	
Participant. A person who is granted a Benefit under the Plan. Benefits may be granted only to Employees, employees and owners of entities which are not Subsidiaries but which have a direct or indirect ownership interest in an Employer or in which an Employer has a direct or indirect ownership interest, persons who, and employees and owners of entities which, are customers and suppliers of an Employer, persons who, and employees and owners of entities which, render services to an Employer, and persons who, and employees and owners of entities, which have ownership or business affiliations with any persons or entity previously described.

 

	
O. 

	
Performance Share. A Share awarded to a Participant under ARTICLE XIV of the Plan.

 

	
P. 

	
Plan. The Kun De International Holdings Inc. 2015 Flexible Stock Plan, and all amendments and supplements to it.

 

	
Q. 

	
Restricted Stock. Shares issued under ARTICLE XIII of the Plan.

 

	
R. 

	
Share. A share of Common Stock.

 

	
S. 

	
Subsidiary. Any corporation in an unbroken chain of corporations beginning with the Company if, at the time of grant of an Option or other Benefit, each of the corporations, other than the last corporation in the unbroken chain, owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

	
2.2

	
Other Definitions. In addition to the above definitions, certain words and phrases used in the Plan and any Agreement may be defined in other portions of the Plan or in such Agreement.

 

	
2.3

	
Conflicts in Plan. In the case of any conflict in the terms of the Plan relating to a Benefit, the provisions in the ARTICLE of the Plan which specifically permits the grant of such Benefit shall control those in a different ARTICLE.

 

ARTICLE III

COMMON STOCK

 

	
3.1

	
Number of Shares. The number of Shares which may be issued or sold or for which Options or Performance Shares may be granted under the Plan is fixed at 10,000,000 Shares. At this date there are no shares issued and outstanding under this 2015 Flexible Stock Plan. Such Shares may be authorized but Shares, or Shares held in the treasury, or both.

 

	
3.2

	
Reusage. If an Option expires or is terminated, surrendered, or canceled without having been fully exercised, if Restricted Shares or Performance Shares are forfeited, or if any other grant results in any Shares not being issued, the Shares covered by such Option, grant of Restricted Shares, Performance Shares or other grant, as the case may be, shall again be available for use under the Plan, to the fullest extent permitted under applicable law.

 

	
3.3

	
Adjustments. If there is any change in the Common Stock of the Company by reason of any stock dividend, spin-off, split-up, spin-out, recapitalization, merger, consolidation, reorganization, combination or exchange of shares, the number and class of shares available for Options and grants of Restricted Stock, Performance Shares and Other Stock Based Awards and the number of Shares subject to outstanding Options, grants of Restricted Stock and Performance Shares which are not vested, and Other Stock Based Awards, and the price thereof, as applicable, shall be appropriately adjusted by the Committee.

 

	 
	
2

	

 

ARTICLE IV

ELIGIBILITY

 

	
4.1

	
Determined By Committee. The Participants and the Benefits they receive under the Plan shall be determined solely by the Committee, or in the event the Board of Directors does not appoint a Committee, then by the Board of Directors (hereinafter the Committee or the Board, if there is no Committee appointed, is referred to as the “Committee). In making its determinations, the Committee shall consider past, present and expected future contributions of Participants and potential Participants to the Employer, including, without limitation, the performance of, or the refraining from the performance of, services.

 

ARTICLE V

ADMINISTRATION

 

	
5.1

	
Committee.

 

	
A. 

	
The Plan shall be administered by the Board of Directors of the Company, the Stock Option Committee of the Board or another committee of the Board, all as shall be determined by the Board.

 

	
B. 

	
If the Board appoints a Committee, the Committee shall be comprised of not less than two persons, and each member of the Committee shall be a member of the Board who during the one year period prior to service on the Committee was, and during such service is, an “outside director,” as such term is utilized in Section 162(m) of the Internal Revenue Code, and a “non-employee director,” as such term is defined and utilized in Rule 16b-3 of the Exchange Act. Subject to the foregoing, the Board may from time to time appoint members of the Committee in substitution for or in addition to members previously appointed, may fill vacancies in the Committee and may remove members of the Committee, at the sole discretion of the Board of Directors.

 

	
C. 

	
The Committee shall select one of its members as its chairman and shall hold its meetings at such times and places as it shall deem advisable. A majority of its members shall constitute a quorum and all determinations shall be made by a majority of such quorum. Any determination reduced to writing and signed by all of the members of the Committee shall be fully as effective as if it had been made by a majority vote at a meeting duly called and held.

 

	
5.2

	
Powers.

 

	
A. 

	
The Board or the Committee, if so determined by the Board, shall have full power and authority, subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be issued or adopted by the Board, to grant eligible persons Benefits under the Plan, to determine the restrictions, terms and conditions (which need not be identical) of all Benefits so granted, to interpret the provisions of the Plan and any Agreements relating to Benefits granted under the Plan, and to supervise the administration of the Plan.

 

	
B. 

	
The Board or the Committee, if the Board shall so determine, shall have sole authority in the selection of directors, officers and employees of the Company or a Subsidiary, and any consultant, advisor or independent contractor to the Company or a Subsidiary, to whom Awards may be granted under the Plan and in the determination of the timing, pricing, terms, conditions, restrictions and amount of any such Award, subject only to the express provisions of the Plan.

 

	 
	
3

	

 

	
C. 

	
Without limiting the generality of the above Sections, the Board or the Committee shall have the authority to condition any Award, in whole or in part, on performance or other criteria established by the Board or the Committee at the time of grant. In making determinations hereunder, the Board or the Committee may take into account the nature of the services rendered by the respective directors, officers, employees, consultants, advisors or independent contractors, their present and potential contributions to the success of the Company and its Subsidiaries and such other factors as the Board or the Committee in its discretion deems relevant, and may consult with, and give such consideration to the recommendations of, management of the Company as the Board or Committee deems desirable.

 

	
5.3

	
Interpretation. The Board or the Committee is authorized, subject to the provisions of the Plan, to establish, amend and rescind such rules and regulations as it deems necessary or advisable for the proper administration of the Plan and to take such other action in connection with or in relation to the Plan as it deems necessary or advisable. Each action and determination made or taken pursuant to the Plan by the Board or the Committee, including any interpretation or construction of the Plan, shall be final and conclusive for all purposes and upon all persons. No member of the Board or the Committee shall be liable for any action or determination made or taken by him or the Board or the Committee in good faith with respect to the Plan.

 

ARTICLE VI

AMENDMENT

 

	
6.1

	
Power of Board. Except as hereinafter provided, the Board shall have the sole right and power to amend the Plan at any time and from time to time.

 

ARTICLE VII

TERM AND TERMINATION

 

	
7.1

	
Term. The Plan shall commence as of the Effective Date, and, subject to the terms of the Plan, including those limiting the period over which Benefits may be granted, shall continue in full force and effect until terminated.

 

	
7.2

	
Termination. The Plan may be terminated at any time by the Board.

 

ARTICLE VIII

MODIFICATION OR TERMINATION OF BENEFITS

 

	
8.1

	
General. Subject to the provisions of Section 8.2, the amendment or termination of the Plan shall not adversely affect a Participant's right to any Benefit granted prior to such amendment or termination.

 

 

	
8.2

	
Committee's Right. Any Benefit granted may be converted, modified, forfeited or canceled, in whole or in part, by the Committee if and to the extent permitted in the Plan or applicable Agreement, or in the grant of the benefit, or with the consent of the Participant to whom such Benefit was granted.

 

ARTICLE IX

AGREEMENTS AND CERTAIN BENEFITS

 

	
9.1

	
Grant Evidenced by Agreement. The grant of any Benefit under the Plan may be evidenced by an Agreement which shall describe the specific Benefit granted and the terms and conditions of the Benefit or may be evidenced by adoption of a Board Resolution. The granting of any Benefit shall be subject to, and conditioned upon, the recipient's execution of any Agreement required by the Committee. Except as otherwise provided in an Agreement, all capitalized terms used in the Agreement shall have the same meaning as in the Plan and the Agreement shall be subject to all of the terms of the Plan.

 

 

	 
	
4

	

 

	
9.2

	
Provisions of Agreement. Any Agreement shall contain such provisions that the Committee shall determine to be necessary, desirable and appropriate for the Benefit granted which may include, but not be limited to, the following with respect to any Benefit: description of the type of Benefit; the Benefit's duration; its transferability; if an Option, the exercise price, the exercise period and the person or persons who may exercise the Option; the effect upon such Benefit of the Participant's death or termination of employment; the Benefit's conditions; when, if, and how any Benefit may be forfeited, converted into another Benefit, modified, exchanged for another Benefit or replaced; and the restrictions on any Shares purchased or granted under the Plan.

 

	
9.3

	
Certain Benefits. Any Benefit granted to an individual who is subject to Section 16 of the Exchange Act shall be not transferable other than by will or the laws of descent and distribution and shall be exercisable during his lifetime only by him, his guardian or his legal representative.

 

ARTICLE X

REPLACEMENT AND TANDEM AWARDS

 

	
10.1

	
Replacement. The Committee may permit a Participant to elect to surrender a Benefit in exchange for a new Benefit.

 

	
10.2

	
Tandem Awards. Awards may be granted by the Committee in tandem.

 

ARTICLE XI

PAYMENT, DIVIDENDS, DEFERRAL AND WITHHOLDING

 

	
11.1

	
Payment. Upon the exercise of an Option or in the case of any other Benefit that requires a payment to the Company, the amount due the Company is to be paid:

 

	
A. 

	
in cash;

 

	
B. 

	
by the tender to the Company of Shares owned by the optionee and registered in his name having a Fair Market Value equal to the amount due to the Company;

 

	
C. 

	
by credit by the receipt for a Retainer due and payable under a contract executed by the Company;

 

	
D. 

	
in other property, rights and credits, including the Participant's promissory

 

	
E. 

	
note; or

 

	
F. 

	
by any combination of the payment methods specified in (a), (b) and (c) above.

 

Notwithstanding the foregoing, any method of payment other than (a) may be used only with the consent of the Committee (or if and to the extent so provided in an Agreement). The proceeds of the Sale of Common Stock purchased pursuant to an Option and any payment to the Company for other Benefits shall be added to the general funds of the Company or to the Shares held in treasury, as the case may be, and used for the corporate purposes of the Company as the Board shall determine.

 

	
11.2

	
Dividend Equivalents. Grants of Benefits in Shares or Share equivalents may include dividend equivalent payments or dividend credit rights.

 

	
11.3

	
Deferral. The right to receive any Benefit under the Plan may, at the request of the Participant, be deferred for such period and upon such terms as the Committee shall determine, which may include crediting of interest on deferrals of cash and crediting of dividends on deferrals denominated in Shares.

 

	 
	
5

	

 

	
11.4

	
Withholding. The Company, at the time any distribution is made under the Plan, whether in cash or in Shares, may at its discretion withhold from such distribution any amount necessary to satisfy federal, state and local income tax withholding requirements with respect to such distribution. Such withholding shall be in cash or, in the Committee's sole discretion, Shares.

 

ARTICLE XII

OPTIONS

 

	
12.1

	
Determination by Committee. The terms of all Options shall be determined by the Committee.

 

ARTICLE XIII

RESTRICTED STOCK

 

	
13.1

	
Description. The Committee may grant Benefits in Shares available under ARTICLE III of the Plan as Restricted Stock. Shares of Restricted Stock shall be issued and delivered at the time of the grant. Each certificate representing Shares of Restricted Stock shall bear a restrictive legend stating that such Shares are nontransferable until all restrictions have been satisfied (and such other legend as may be required in connection with any Agreement relating to the issuance under the Plan). The grantee shall be entitled to full voting and dividend rights with respect to all shares of Restricted Stock from the date of grant.

 

	
13.2

	
Non-Transferability. Shares of Restricted Stock shall not be transferable until after the removal of the legend with respect to such Shares.

 

ARTICLE XIV

PERFORMANCE SHARES

 

	
14.1

	
Description. Performance Shares are the right of an individual to whom a grant of such Shares is made to receive Shares or cash equal to the Fair Market Value of such Shares at a future date in accordance with the terms of such grant. Generally, such right shall be based upon the attainment of targeted profit and/or performance objectives.

 

	
14.2

	
Grant. The Committee may grant an award of Performance Shares. The number of Performance Shares and the terms and conditions of the grant shall be set forth in an applicable Agreement.

 

ARTICLE XV

FORM S-8 REGISTERED STOCK

 

	
15.1

	
Description. The Committee may grant Benefits in the form of the issuance of Shares available under ARTICLE III of the Plan, to be issued after filing and effectiveness of an S-8 Registration Statement filed under the Securities Act of 1933 registering such shares, either specifically or as part of a Plan wide registration of shares. The issuance of all such shares shall be in accord with the rules and regulations associated with the use of an S-8 Registration Statement adopted by the Securities and Exchange Commission as amended, and the terms set forth in the S-8 Registration as filed.

 

ARTICLE XVI

OTHER STOCK BASED AWARDS AND OTHER BENEFITS

 

	
16.1

	
Other Stock Based Awards. The Committee shall have the right to grant Other Stock Based Awards which may include, without limitation, the grant of Shares based on certain conditions, the payment of cash based on the performance of the Common Stock, and the grant of securities convertible into Shares.

 

	 
	
6

	

 

	
16.2

	
Other Benefits. The Committee shall have the right to provide types of Benefits under the Plan in addition to those specifically listed, if the Committee believes that such Benefits would further the purposes for which the Plan was established.

 

ARTICLE XVII

MISCELLANEOUS PROVISIONS

 

	
17.1

	
Underscored References. The underscored references contained in the Plan are included only for convenience, and they shall not be construed as a part of the Plan or in any respect affecting or modifying its provisions.

 

	
17.2

	
Number and Gender. The masculine and neuter, wherever used in the Plan, shall refer to either the masculine, neuter or feminine; and, unless the context otherwise requires, the singular shall include the plural and the plural the singular.

 

	
17.3

	
Governing Law. This Plan shall be construed and administered in accordance with the laws of the State of Nevada.

 

	
17.4

	
Purchase for Investment. The Committee may require each person purchasing Shares pursuant to an Option, or receiving shares under an award under the Plan to represent to and agree with the Company in writing that such person is acquiring the Shares for investment and without a view to distribution or resale. The certificates for such Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer. All certificates for Shares delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under all applicable laws, rules and regulations, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate references to such restrictions.

 

	
17.5

	
No Employment Contract. The adoption of the Plan shall not confer upon any Employee any right to continued employment nor shall it interfere in any way with the right of the Employer to terminate the employment of any of its Employees at any time.

 

	
17.6

	
No Effect on Other Benefits. The receipt of Benefits under the Plan shall have no effect on any benefits to which a Participant may be entitled from the Employer, under another plan or otherwise, or preclude a Participant from receiving any such benefits.

 

Undersigned, the Secretary of Monster Arts Inc. hereby certifies that this Kun De International Holdings Inc. 2015 Flexible Stock Plan was duly adopted by the Board of Directors of the Corporation, effective as of February 1, 2015.

 

Date: February 9, 2015

 

/s/ Shuquan Chen 

Shuquan Chen, Chief Executive Officer

 

7DEMAND PROMISSORY NOTE

EXHIBIT 4.1

DEMAND PROMISSORY NOTE

		
	$50,000.00

	Lafayette, CO

	 
	June 21, 2012

FOR VALUE RECEIVED, Aquarius Holdings, LLC, a Colorado limited liability company, with an address for notification purposes at 2549 Cowley Drive, Lafayette, CO (the "Maker"), hereby promises to pay to Dan Hagel, an individual with an address for notification purposes at c/o 1321 Maria Ignacia Lane, Santa Barbara, CA 93111 ("Holder"), or order, ON DEMAND, the sum of Fifty Thousand Dollars ($50,000.00), together with interest thereon at a rate per annum which is the greater of (i) Two Percent (2%) or (ii) the Short Term Applicable Federal Rate (Annual Compounding) promulgated by the Internal Revenue Service, adjusted at the beginning of each calendar month; provided, however, that accrued interest shall be paid annually, beginning on the third anniversary hereof, and that such annual rate shall increase to the Wall Street Journal prime rate plus three percent (3%) during the occurrence and continuance of any Event of Default (as defined below).  Payment of amounts due hereunder shall be made by check in United States Dollars in immediately available funds to Holder at the address listed above or such other address provided by the Holder from time to time or, if requested by the Holder, by wire transfer to an account designated by the Holder.  Payments shall first be applied to accrued and unpaid interest and then to principal.

The following is a statement of the rights of the Holder and the conditions to which this Promissory Note (this "Note") is subject:

1.

Certain Definitions.  As used in this Note, "Maker" includes Aquarius Holdings, LLC and its successors or assigns, and "Holder," when the context refers to a holder of this Note, shall mean any person who shall at the time be the holder of this Note.

2.

Events of Default.  If any of the events specified in this Section 2 shall occur (herein individually referred to as an "Event of Default"), the Holder may, so long as such condition exists, declare the entire principal and unpaid accrued interest thereon immediately due and payable by notice in writing to the Maker:

(i)

The failure by Maker to make any payment due hereunder when due;

(ii)

The institution by the Maker of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to institution of bankruptcy or insolvency proceedings against it  or the filing by it of a petition or answer or consent seeking reorganization or release under the federal Bankruptcy Act, or any other applicable federal or state law, or the consent by it to the filing of any such petition or the appointment of a receiver, liquidator, assignee, or trustee, or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors; or

1

(iii)

If, within sixty (60) calendar days after the commencement of an action against the Maker (and service of process in connection therewith on the Maker) seeking any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such action shall not have been resolved in favor of the Maker or all orders or proceedings thereunder stayed, or if the stay of any such order or proceeding shall thereafter be set aside, or if, within sixty (60) calendar days after the appointment without the consent or acquiescence of the Maker of any trustee, receiver or liquidator, such appointment shall not have been vacated.

3.

Prepayment.  This Note is given as consideration for a business loan, and may be prepaid by the Maker at any time, without penalty.

4.

Use of Proceeds.  The Maker must use the proceeds of the loan evidenced by this Note solely to pay Maker's operating expenses.

5.

Assignment.  The Maker may not transfer this Note without the prior written consent of the Holder.  Subject to the foregoing, the rights and obligations of the Maker and the Holder of this Note shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.  

6.

Amendment and Waiver.  Any provision of this Note may be amended, waived or modified only upon the written consent of the Maker and the Holder.  A waiver on any one occasion will not be construed as a bar to or waiver of any right or remedy on any future occasion.

7.

Notices.  All notices, requests, consents and other communications hereunder to any party pursuant to this Note will be deemed to be sufficient if contained in a written instrument delivered in person, including delivery by recognized express courier, fees prepaid, addressed as set forth in the first paragraph of this Note, or to such other address as may hereinafter be designated in writing by the recipient to the sender pursuant to this Section 8.  All such notices, requests, consents and other communications will be deemed to have been received in the case of personal delivery, including delivery by express courier, on the date of such delivery.

8.

Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado.  

9.

Heading; References.  All headings used herein are used for convenience only and shall not be used to construe or interpret this Note.  Except where otherwise indicated, all references herein to Sections refer to Sections hereof.

10.

Waiver.  The Maker hereby waives diligence, presentment, demand, protest and notice of dishonor.

11.

Delay.  No delay on the part of the Holder or the exercise of any power or right under this Note shall operate as a waiver of such power or right to preclude other or further exercise thereof or the exercise of any other power or right.  

2

12.

Time.  Time is of the essence for each and every obligation under this Note.

13.

Attorneys' Fees.  In the event of any litigation or other action to collect or enforce this Note, Holder shall be entitled to, in addition to any other damages assessed, his reasonable attorneys' fees, and all other costs and expenses incurred in connection with such litigation or action.  The attorneys' fees which Holder is entitled to recover shall include fees for prosecuting or defending any appeal and shall be awarded for any supplemental proceedings until the final judgment is satisfied in full.  In addition to the foregoing award of attorneys' fees to Holder, Holder shall be entitled to its reasonable attorneys' fees, costs, and expenses incurred in any post judgment proceedings to collect or enforce the judgment.  This attorneys' fees provision is separate and several and shall survive the merger of this Note into any judgment.

14.

Usury Law.  Notwithstanding any other provision contained in this Note, the rate of interest payable under this Note shall not at any time exceed a rate which, when combined with any and all other charges provided for in this Note or any other document executed in connection with this Note (to the extent such other charges would constitute interest for the purpose of any applicable law limiting interest which may be charged hereunder), exceeds the maximum interest rate permitted by law with respect to the transactions contemplated hereby.

IN WITNESS WHEREOF, the Maker has caused this Note to be issued to Holder as of the date first written above.

			
	 
	AQUARIUS HOLDINGS, LLC

	 
	 
	 

	 
	 
	 

	 
	By:

	 

	 
	 
	Michael Davis Lawyer, Manager

	 
	 
	 

	 
	 
	 

	 
	DAN HAGEL

	 
	 
	 

	 
	 
	 

	 
	By:

	 

	 
	 
	Dan Hagel

3

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