Document:

Settlement Agreement between the Company and Frits Bruggink

 Exhibit 10.1 
 SETTLEMENT AGREEMENT PURSUANT TO ARTICLE 7:900 OF THE DUTCH CIVIL CODE 
 THE
UNDERSIGNED: 
  

	1.	The private company with limited liability ECHELON B.V. with its registered office in Amersfoort, hereinafter referred to as “the employer”,
duly represented by Oliver R. Stanfield; 

 and 
  

	2.	FRITS H. BRUGGINK, residing in Switzerland, hereinafter referred to as “the employee”; 

 WHEREAS: 
  

	a.	the employee was born on 18 April 1955 and is therefore currently 54 years of age; 

  

	b.	the employee has been employed by the employer since 1 April 1996 and most recently held the position of Senior Vice President and General Manager, Service
Provider Group; 

  

	c.	the most recently earned gross monthly salary of the employee was EUR 27,083.33 inclusive 8% holiday allowance and as of November 15, 2009, his accrued and unused
vacation days are acknowledged to be 44 days; 

  

	d.	the parties have consulted one another of their own accord and have mutually agreed to amicably terminate the employee’s employment with the employer, and the
employee has been given ample opportunity to seek legal assistance regarding the termination, and has considered the relevant contents and implications of the settlement agreement. 

 DECLARE THAT THEY HAVE AGREED ON THE FOLLOWING: 
  

	1.	The employment contract between the employer and the employee will end by mutual consent on 31 May 2010. The employee declares that he unequivocally agrees
to this and is aware of the implications of the termination. 

  

	2.	The employer will grant compensation in the amount of EUR 430,000.- gross to the employee. The compensation is intended to supplement any benefits under social security
legislation or a lower salary earned elsewhere and/or loss of pension. The payment of the compensation will be paid in a lump sum check or direct deposit on the termination date. 

  

	3.	The employee will continue to work until the termination date of the employment contract as follows: 

  

	 	a.	From the date of signing this agreement until the new Senior VP NES Sales is introduced, the employee will continue to work in his current capacity.

  

	 	b.	Upon introduction to the Senior VP NES Sales and until January 15, 2010 the employee will do what can reasonably be expected of him to transfer his business
knowledge regarding NES strategy and position, product knowledge and relationships to the appointed Senior Vice President NES Sales and execute these tasks under the direction of the Senior Vice President NES. 

  

	 	c.	From 15 January 2010 until 15 March 2010, the employee will be available for business development tasks defined as presenting at shows and conferences,
performing in interviews, presenting to existing and potential relations, as directed to by the CEO of Echelon or the Senior VP NES Sales. 

  

	 	d.	From 15 March 2010 until 31 May 2010, the employee can only be called to tasks as defined under c) and any day (whether a full or a partial day) on which
employee is called to such a task shall be considered a day that employee has worked and will not be considered a vacation day. 

  

	 	e.	 The parties intend that during period d employee will use all of his accrued vacation days (including those that are accrued as of the date of this
agreement and those that are earned prior to the termination date). Employee does not intend to take any vacation between 15 November 2009 and 15 March 2010. If he desires to take vacation during this period he will obtain prior approval

	 	 
from the CEO or Sr. VP NES Sales. If such approval is given then employee agrees he will work a commensurate day(s) during period from 15 March through 31 May 2010.

  

	 	f.	Until 31 May 2010, the employee will receive his salary including emoluments. All stock and option programs will continue to vest in accordance with existing
programs until termination date. 

  

	4.	After the termination date of the employment contract, the employee will receive the usual final settlement (e.g., any remaining accrued and unused vacation, in
addition to the compensation grant described in paragraph 2 above) within one month of the end of the employment contract. 

  

	5.	The employee acknowledges that the confidentiality clause as included in the employment contract and the Employee Confidential Information and Invention Agreement
remain in full force and effect. 

  

	6.	The employee agrees that the employee shall not for a period of six months after the termination date (31 May, 2009), without prior consent of the employer, either
directly or indirectly, perform any Business Development Activities (as hereafter defined) for any person or enterprise anywhere in the world involved in providing residential smart metering solutions (each, a “Competitor”). Business
Development Activities means (i) participating in sales calls on behalf of a Competitor at utilities or third parties that could be involved in providing residential smart metering solutions to utilities; (ii) making presentations
regarding residential smart metering solutions at shows, conferences or similar public venues on behalf of a Competitor; (iii) advising a Competitor about utility tenders, plans or requirements with respect to existing or future deployments or
product specifications, if the employee became aware of such tenders, plans, requirements, deployments or product specifications while employed by the employer, or (iv) otherwise promoting a Competitor’s residential smart metering
solutions. 

	7.	The Parties have in mutual consultation prepared internal and external communications concerning the employee’s departure, which communications are attached as
Annex A. 

  

	8.	Neither party will make negative comments about the other party. 

  

	9.	At the employee’s request, the employer will provide him with a positive testimonial. If necessary, the employer will also provide positive references.

  

	10.	Not later than 30 May 2010, the employee shall return all property belonging to the employer in good condition. 

  

	11.	Parties undertake to observe strict confidentiality with regard to the employment contract and the termination thereof, except where required by U.S. or other
applicable law and except that the employer may have to comply with a statutory obligation to provide information to the Dutch Social Security Institution (UWV). Without limiting the foregoing, Employee acknowledges that U.S. law requires that this
agreement, as well as the employment agreement, must be filed with the U.S. Securities Exchange Commission. 

  

	12.	This amicable settlement was concluded subject to the condition that, as of the date of signing the settlement, the employee does not yet have another job and/or any
proposal therefor. 

  

	13.	With due observance of the above, the parties grant each other full and final discharge with regard to the employment contract and/or its termination and anything
directly or indirectly arising there from. This agreement replaces the Settlement Agreement signed by Echelon B.V on 10 November 2009 and by Frits H. Bruggink on 11 November 2009. 

 Thus agreed and signed: 
  

									
	On: 	  	 	    		  	On: 	  	 
					
	 	  	 	    		  	 	  	 
	Oliver R. Stanfield	    		  	Frits H. Bruggink

 Annex A 
 It is with mixed emotions I inform you that after 15 years with Echelon Frits Bruggink is leaving to investigate pursuing a lifelong dream of running his own show. I am sorry to see him go but happy that
he can follow his dream. He is not certain what exactly that will be, but he will be working on that over the next months, following a transition period of helping our new Sr. Vice President of NES Sales come up to speed. Frits has been an
extraordinary contributor to Echelon’s successes, first in developing the LonWorks networks business in EMEA, then in initiating and bringing home our contract with ENEL and in providing the leadership and vision to develop the market for our
NES product line around the globe. We all adore Frits and will miss working with him, but I know that you join me in wishing him every success and hoping that we can stay in close contact. 
 Kenexhibit_10-1.htm

 

EXHIBIT 10.1

 

WRAP-AROUND AGREEMENT

	
 

By and Between:

 

CAMELOT ENTERTAINMENT GROUP, INC., AS ISSUER;

 

AND

 

ROBERT ATWELL AS AFFILIATE;

AND

 

K&L INTERNATIONAL ENTERPRISES, INC. AS INVESTOR

 

 

Dated this: August 3, 2009

 

WHEREAS, the Issuer desires to fulfill debt obligations owed to Affiliate in the principal amount $200,000.00 (Two Hundred Thousand Dollars) of the total debt of $355,000.00 (Three Hundred Fifty Five Thousand Dollars) owed from March 31, 2008;

 

WHEREAS, the Issuer owes the Affiliate $200,000.00 (Two Hundred Thousand Dollars) of the total debt of $355,000.00 (Three Hundred Fifty Five Thousand Dollars) from accrued wages owed to the Affiliate by the Issuer, secured by an Employment Agreement;

 

WHEREAS, the Issuer does not have the disposable cash to satisfy those obligations;

 

WHEREAS, the Issuer and the Affiliate are willing to act as surety to the fulfillment of the debt assignment as a material inducement;

 

WHEREAS, the Investor desires to modify the existing debt structure with new terms and conditions, which reasonable terms and conditions are hereby agreed to by the Issuer and the Affiliate as a material inducement;

 

WHEREAS, to effectuate this understanding, and facilitate in the mechanizations of the new terms and conditions, the parties agree to enter this Wrap-Around Agreement;

 

WHEREAS, the original Debt instrument, as defined below, shall be incorporated herein by reference; Schedule A, Resolution of Authority, Schedule B, Promissory
Note, is annexed hereto and incorporated herein.

 

 

 

 

 

 

NOW WHEREFORE the following terms and conditions are hereby agreed to:

 

	
1.
	
 Assignment of Debt- The affiliate hereby assigns the debt to the Investor from the inception of the debt, together with unpaid principal and unpaid accrued interest thereon;

 

	
2.2.
	
Interest Rate – The interest rate shall be 15% per annum, compounded, applicable retroactively

 

	
  
	
to the date of this agreement;

 

	
2.3.
	
Call Provision – The Issuer shall have the rights to repurchase all remaining Debt, plus any

 

 

	
  
	
additional Debt at 150% of the Debt and Additional Debt, within the first year of the execution hereof, and 130% thereafter

 

	
2.4.
	
Anti-Dilution - The Issuer herby represents and warrants that any issuance, modification or creation of any class of security, or the granting of any beneficial interest in a security of the Issuer that will have a net dilutive
effect on the Investor, in regards to this instant Agreement, (e.g. granting an option, warrant, new issuance, preferred class convertible into common, etc.) will grant the Investor additional debt onto the Debt in pecuniary compensation of the net dilutive effect on the Investors position and interest.("ADDITIONAL Debt")

 

	
2.5.
	
Default Provisions – If the Issuer or the Affiliate Shall suffer a material adverse event, the Investor shall have the right to call for adequate assurances from both the issuer and the Affiliate reasonable and prudent
as circumstances warrant. Failure to produce such adequate assurances within a reasonable period of time shall result in default.

 

	 	
2.5.1
	
EXAMPLES OF MATERIAL ADVERSE EVENT: a) deregistration by the Issuer, either voluntary or involuntary; b) bankruptcy, a meeting of creditors, or the consultation of an attorney regarding bankruptcy.

 

	 	
2.5.2 
	
2.5.2 Entrance in Default – Upon a default event, the Issuer and the Affiliate shall be jointly and severally liable for the remaining Debt.,

 

	 	
2.5.3. 
	
Default Interest – Upon a default event, the interest rate shall be 24.99% per annum, compounded, effective retroactively since the inception of this agreement, less any converted amount, calculated as any conversion shares will be offset against the Debt nearest in time.

 

	 	
2.5.4 
	
Nonpayment – any missed conversion, or several missed conversions shall constitute a default event.

 

	
2.6
	
Denovo of Debt and Extension of Payment Period The Issuer hereby renews and affirms the debt as a legally binding obligation, regardless of any termination date or statute of limitation, and hereby
extends the Debt for 5 years from the execution hereof, or the depletion and satisfaction of the Debt with all accrued interest thereon.

 

	
2.7.
	
Transfer Agent Irrevocable Instructions – The Issuer hereby irrevocably instructs their Transfer Agent, current or successor, to issue said conversion shares upon request by Investor and waives all objections thereto.

 

	
2.8.
	
Demand Registration Rights – The Issuer hereby grants the right to the Investor to register any and all issuances, past, present and future, if the Investor shall request the registration thereof and the Issuer does not
comply within 30 days, nor takes reasonable steps to comply therewith within 10 days, Implied rights to the Demand registration shall include, but not be limited to:

 

 

 

 

 

 

	 	
2.8.1 
	
Limited Power of Attorney to act as signatory for any and all registration statements.

 

	 	
2.8.2
	
Recoupment of Registration Fees – If the Investor shall invoke his rights under the demand Registration, all fees, costs, and disbursements, inclusive of attorney's fees, shall be added onto Debt as Additional Debt.

 

	
2.9.
	
Jurisdiction and Venue – All Parties hereto consent to the Debt instrument and resultant Wrap-Around Agreement having jurisdiction within the State of Florida, County of Seminole.

 

	
2.10.
	
Legal Opinion(s) – The Legal Opinion(s) rendered pursuant to the terms and conditions, and resultant from this Wrap-Around Agreement, shall be construed for the entire conversion process of the Debt, should full conversion
occur. Issuer and Affiliate hereby agree, acknowledge, accept, consent, and stipulate that any Legal Opinion acceptable to the Investor in a timely fashion, then the investor shall have the right to cause to be furnished their own Legal Opinion and Issuer and Affiliates hereby waives all rights to object thereto except for blatant and generally accepted misstatements or omissions of fact, law or application thereof. The costs of the Legal Opinion shall be deducted from the funds used to purchase the first tranche.

 

 

	
3.
	
             Representation and
Warranties

 

	
  
	
3.1.
	
Issuer- The Issuer hereby represents and warrants the following material inducements:

 

3.1.1. Hold a reserve of authorized shares for the issuance of conversion shares;

 

3.1.2. The Issuer has no objection to, and hereby waives all objections, to a reasonable legal opinion regarding the free trading nature of the conversion shares or the mechanics of the transaction;

 

3.1.3. All services constituting the Debt have been fully rendered for legitimate business purposes;

 

	 	
3.2. 
	
Affiliate – The Affiliate hereby represents and warrants the following material inducements;

 

3.2.1. Affiliate – The Affiliate will if necessary furnish a legal opinion regarding the free trading nature of the conversion shares and the mechanics thereof;

 

3.2.2 The services constituting the debt have been fully rendered for legitimate business purposes;

 

4.              Miscellaneous

 

	 	
4.1 
	
Execution – this Agreement may be executed in counterparts, each taken in conjunction equating to a fully executed agreement; facsimile and scanned signatures may be accepted in lieu of original manual signatures;

 

	 	
4.2 
	
Severability-This Agreement is not severable. If any term in this Wrap-Around Agreement is found by a court of competent jurisdiction to be unenforceable, then the entire Wrap-Around Agreement
shall be rescinded, the consideration proffered by the Investor shall be returned in its entirety and any conversion shares shall be forfeit.

 

	 	
4.3 
	
Legal fees – Legal fees for the production of this Wrap-Around Agreement shall be deducted from the funds
used to purchase the first tranche. Any legal fees spent resultant and as a proximate cause of this Wrap-around Agreement, subsequent and separate from the creation hereof, shall be borne by the Issuer and the Affiliate, which shall be inclusive of any Legal Opinion caused to be furnished by the Investor in the event the Affiliate fails to render a Legal opinion acceptable to the Investor, which acceptance thereof shall not be unreasonably withheld.

 

4.4            Jurisdiction and Venue –The jurisdiction and venue for this Wrap-Around agreement shall
be within the state of Florida, County of Seminole.

 

4.5.           Modification – This Wrap-Around Agreement and debt may only be modified in a writing
signed by all Parties.

 

NOW THEREFORE, all the Parties hereby agree, accept, acknowledge, consent, and stipulate to the terms and conditions contained herein for the mutual promise and consideration stated herein:

 

	"ISSUER"	 	 "AFFLILATE"
	 	 	 
	 Camelot Entertainment Group, Inc.	 	 
	 	 	 
	 /s/ Robert Atwell	 	 /s/ Robert Atwell
	 Signature	 	 Signature
	 Robert Atwell, President	 	 Robert Atwell,
	 Issuers Officer Name and Title	 	 Print Name

 

 

 

"INVESTOR"

 

 

K&L INTERNATIONAL ENTERPRISES, INC.

 

 

Larry Powalisz, President

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