Document:

ex10-1.htm

    Exhibit
      10.1

     

    
      

      SETTLEMENT
        AGREEMENT

      AND
        MUTUAL RELEASE

       

      This
        Confidential Settlement Agreement and Mutual Release (“Agreement”) is
        dated as of October 5, 2007 and is hereby entered into between NANA YALLEY
        (“Yalley”), and WINSONIC DIGITAL MEDIA GROUP,
        LTD (“Winsonic” or the
“Company”).

       

      RECITALS

       

      WHEREAS,
        certain claims and disputes between the parties have arisen as a result of
        certain acts and occurrences which are the subject of a civil action (“Civil
        Action”) styled, Nana Yalley v. Winsonic Digital Media Group, Ltd; Case
        No. A529885, currently pending before the Eighth Judicial District Court
        in the
        State of Nevada, Department 13; and

       

      WHEREAS,
        the parties, without conceding or admitting liability, conclude that it serves
        their respective interests to avoid the expenditure of additional time, effort
        and resources in litigating their disputes and in continuing the Civil Action,
        and that they now wish to fully, finally and forever settle and compromise
        their
        claims and disputes against each other, including but not limited to any
        and all
        claims to attorneys fees, costs and other expenses, and to release, discharge
        and terminate all claims, demands, controversies, suits, causes of action,
        damages, rights, liabilities and obligations which the parties may have against
        each other, including but not limited to, the claims and counterclaims set
        forth
        in the Civil Action, which either have been asserted or which could have
        been
        asserted.

       

      NOW,
        THEREFORE, in consideration of the following terms, covenants and conditions
        set
        forth herein, the parties hereby agree as follows:

       

      SETTLEMENT
        TERMS

       

      1.  Simultaneously
        with the execution of this Agreement, Winsonic shall issue to Yalley one
        million, eight hundred sixty four thousand, two hundred and eighty-six
        (1,864,286) restricted shares of common stock of the Company.

       

      
        	
                 

              	
                a.

              	
                These
                  shares are being issued with a Restrictive Legend expiration date
                  of
                  December 9, 2007.

              

      

       

      
        	
                 

              	
                b.

              	
                The
                  issuance of these shares has been approved by the Board of Directors
                  of
                  Winsonic, as evidenced by the Written Consent of the Board of Directors
                  attached hereto as Exhibit “A”.

              

      

       

      
        	
                 

              	
                c.

              	
                Simultaneously
                  with the execution of this Agreement, Winsonic and its counsel
                  shall
                  execute, and will cause to be delivered to Pacific Stock Transfer
                  Company
                  (“Pacific”) within three (3) business days following the
                  execution of this Agreement the Opinion Letter attached
                  hereto as Exhibit “B.”

              

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                 

              	
                Simultaneously
                  with the execution of this Agreement, Winsonic shall issue to Yalley
                  one
                  hundred thousand (100,000) restricted shares of common stock of
                  the
                  Company.

              

      

       

      
        	
                 

              	
                a.

              	
                These
                  shares are being issued with a Restrictive Legend expiration date
                  of
                  October 5, 2009.

              

      

       

      
        	
                 

              	
                b.

              	
                The
                  issuance of these shares has been approved by the Board of Directors
                  of
                  Winsonic, as evidenced by the Written Consent of the Board of Directors
                  attached hereto as Exhibit “A”.

              

      

       

      
        	
                 

              	
                c.

              	
                Simultaneously
                  with the execution of this Agreement, Winsonic and its counsel
                  shall
                  execute, and will cause to be delivered to Pacific Stock Transfer
                  Company
                  (“Pacific”) within three (3) business days following the
                  execution of this Agreement the Opinion Letter attached
                  hereto as Exhibit “C”.

              

      

       

      3.           Simultaneously
        with the execution of this Agreement, Winsonic shall issue to Yalley an Option
        to purchase five hundred thousand (500,000) shares of restricted common stock
        of
        the Company at the price of one dollar ($1.00) per share.  The
        purchase Option shall vest immediately and Yalley shall have the right to
        exercise the purchase option up to December 9, 2010.

       

      
        	
                 

              	
                a.

              	
                The
                  issuance of this purchase Option has been approved by the Board
                  of
                  Directors of Winsonic, as evidenced by the Written Consent of the
                  Board of
                  Directors attached hereto as Exhibit
“A”.

              

      

       

      4.           Simultaneously
        with the execution of this Agreement, Yalley, Winsonic, and Pacific shall
        execute the Stipulation and Order for Dismissal attached hereto as Exhibit
        “D”.  Upon the issuance of the shares detailed in Paragraphs 1 and 2
        herein and confirmation from Pacific that it has received the letters detailed
        in Paragraphs 1(c) and 2(c) herein, Yalley shall file the executed Stipulation
        and Order for Dismissal.

       

      5.           The
        parties shall bear their own costs, attorneys' fees and expenses incurred
        in and
        as a result of the Civil Action.

       

      6.           Yalley
        and Winsonic hereby release and forever discharge each other from any and
        all
        claims for relief, losses, causes of action, costs, interest, expenses,
        attorneys fees, liabilities, duties and obligations of any kind or nature
        whatsoever, at law or in equity, whether known or unknown, fixed or contingent,
        arising out of their dispute or any other cause whatsoever occurring prior
        to
        the date of the execution of this Agreement.

       

      7.           Yalley
        and Winsonic acknowledge that this Agreement is a compromise settlement between
        them, and is not an admission of liability as to any claim, and that this
        Agreement is a means of avoiding further litigation.

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      8.           Nothing
        in this Agreement expresses or implies an intention on the part of Yalley
        or
        Winsonic to confer upon any person, any rights or remedies by reason of any
        term, provision, condition, undertaking, warranty, representation or agreement
        contained herein.

       

      9.           In
        the event it is necessary for either Yalley or Winsonic to institute an action
        to interpret or enforce this Agreement, or to preclude the purported violation
        of this Agreement, the prevailing party in such action shall be entitled
        to
        reimbursement of reasonable costs, expenses and attorneys fees.

       

      10.           This
        Agreement is made pursuant to and shall be governed by the laws of the State
        of
        Nevada.

       

      11.           This
        Agreement contains the entire understanding between Yalley and Winsonic in
        connection with the subject matter discussed herein.  It is expressly
        acknowledged and recognized by the parties that there are no other oral or
        written agreements between the parties, and that this Agreement may be modified,
        cancelled, supplemented or discharged only in a subsequent writing signed
        by the
        parties.

       

      12.           This
        Agreement is a result of negotiations, and, as such, shall be deemed to have
        been jointly prepared by the parties.

       

      13.           The
        normal rule of construction to the effect that any ambiguities are to be
        resolved against the drafting party shall not be employed in the interpretation
        of this Agreement or of any amendments or exhibits to this
        Agreement.

       

      14.           Yalley
        and Winsonic each warrant and acknowledge that they have been fully advised
        by
        legal counsel concerning the Agreement and they are relying fully upon their
        own
        judgment and advice of such counsel.

       

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      15.           This
        Agreement may be executed in counterparts and delivered by facsimile with
        the
        same force and effect as if all signatures were set forth in a single
        instrument.

       

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the date
        set
        forth above.

       

      
        	
                 

                 

                 

                By:     /s/
                  Nana
                  Yalley                                                                                                                              
                  

                NANA
                  YALLEY

                 

                 

                AS
                  REVIEWED BY:

                 

                GORDON
                  & SILVER, LTD.

                 

                By:/s/
                  Joel
                  Schwarz                                                                                                                                   
                  

                ERIC
                  R. OLSEN

                Nevada
                  Bar No. 3127

                JOEL
                  Z. SCHWARZ

                Nevada
                  Bar No. 9181

                3960
                  Howard Hughes Parkway, 9th
                  Floor

                Las
                  Vegas,
                  NV  89109

                Attorneys
                  for
                  Plaintiff

                NANA
                  YALLEY

                 

              	
                WINSONIC
                  DIGITAL MEDIA GROUP, LTD.

                 

                 

                By:    
                  /s/ Winston
                  Johnson                                                                                                                                        

                 

                 

                 

                AS
                  REVIEWED BY:

                 

                PAUL
                  HASTINGS, LLP

                 

                By:     /
                  s/ William K.
                  Whitner                                                                                                                                      

                 WILLIAM
                  K.
                  WHITNERex10-2.htm

    Exhibit
      10.2

     

    
      IN
        THE
        STATE COURT OF FULTON COUNTY

      

      STATE
        OF
        GEORGIA

       

       

       

       

      
        	CROWNE
                OFFICE SUITES, INC., AT	 *
	DOWNTOWN
                d/b/a CROWNE OFFICE SUITES,	 *
	INC.,
                AT PEACHTREE CENTER,	 *
	 	 *
	     Plaintiff   	 *
	 	 *
	vs.	 *
	 	 *
	WINSONIC
                DIGITAL MEDIA GROUP, LTD.,	 *
	 	 *
	Defendant.  	 *

      

       

      CONSENT
        ORDER

      

      The
        parties to this action having requested of this Court that it enter this
        Consent
        Order, and it appearing to this Court that the parties are acting in good
        faith
        and in compliance with the rules of this Court,

       

      IT
        IS HEREBY ORDERED as follows:

       

       

      1.

       

      Crowne
        Office Suites, Inc., at Downtown d/b/a Crowne Office Suites, Inc., at Peachtree
        Center, Plaintiff above (hereinafter, “Plaintiff”) initiated this action against
        Winsonic Digital Media Group, Ltd., Defendant above, (hereinafter, “Defendant”)
        to recover certain amounts claimed due pursuant to certain Office Sublease
        and
        Service Agreements (hereinafter “Lease Agreements”) copies of which are attached
        to Plaintiff’s Complaint and the Affidavit of Herbert H. Rudd submitted in
        support of Plaintiff’s Motion for Summary Judgment.

       

       

      2.

       

      In
        this
        case, Plaintiff seeks to receiver from Defendant damages on written consent
        in
        the principal amount of $50,193.69 plus pre-judgment interest thereon in
        the
        amount of $14,305.20 plus attorney’s fees in the amount of $8,394.05
        (collectively, the “Judgment Amount”).  Defendant admits that it was
        properly served with process in this matter and hereby waives any defenses
        and
        counterclaims it asserted or which it could have asserted in this matter,
        including any defenses regarding venue and jurisdiction.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      In
        order
        to avoid the uncertainties of litigation and the costs associated therewith,
        Plaintiff agrees to accept from Defendant in full satisfaction of the Judgment
        Amount, $20,000.00 in cash or readily available funds and $15,000.00 in the
        common stock of Winsonic Digital Media Group, Ltd., such stock being
“restricted” with “piggy back rights” pursuant to SEC Rule 144, and such stock
        to be valued pursuant to the value published on the NASD bulletin board under
        symbol “WDMG on Monday, October 8, 2007” (the “Settlement Amount”).

       

       

      3.

       

      The
        Settlement Amount will be paid to Plaintiff by Defendant in two installments
        as
        follows:

       

      
        	
                ·  

              	
                The
                  first installment of $10,000.00 cash or readily available funds
                  and
                  $15,000.00 in Winsonic Digital Media Group, Ltd.’s stock shall be
                  delivered to the office of Plaintiff’s counsel located at One Securities
                  Centre, Suite 300, 3490 Piedmont Road NE, Atlanta, GA 30305 by
                  close of
                  business Monday, October 8, 2007;
                  and

              

      

       

      
        	
                ·  

              	
                The
                  second installment of $10,000.00 cash or readily available funds
                  shall be
                  delivered to the office of Plaintiff’s counsel located at One Securities
                  Centre, Suite 300, 3490 Piedmont Road NE, Atlanta, GA 30305 by
                  close of
                  business Monday, November 5, 2007 (the “Final
                  Payment”).

              

      

       

      All
        checks or other instrument of payment delivered to the office of Plaintiff’s
        counsel should be made payable to Simpson Law Offices, LLP and all stock
        certificates delivered to the office of Plaintiff’s counsel shall be issued in
        the name of Crowne Office Suites, Inc., at Downtown.

       

      4.

       

      In
        the
        event Defendant fails to make any payments or to deliver any stock due to
        be
        paid or delivered by Defendant hereunder in strict compliance with the terms
        of
        this Consent Order and such failure shall continue for five (5) days after
        written notice from Plaintiff demanding cure of such failure, then and in
        that
        event, counsel for Plaintiff shall, without further notice to Defendant,
        submit
        an affidavit to this Court setting forth the Defendant’s default, the amounts
        received by Plaintiff under this Consent Order, the portion of the Judgment
        Amount which

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      remains
        outstanding at the time of said default, and upon receipt of said Affidavit,
        the
        Court shall, ex parte, enter Final Judgment against Defendant in favor
        of Plaintiff for the Judgment Amount less all amounts paid pursuant to this
        Consent Order, for purposes of calculating the remaining portion of the Judgment
        Amount, all stocks delivered pursuant to this Order shall be credited to
        the
        Judgment Amount as though it were cash having the sum value assigned to it
        on
        October 8, 2007, plus post-judgment interest on the remaining portion of
        the
        Judgment Amount at the legal rate.

       

      5.

       

      In
        the
        event any notice is required or requested to be given hereunder, such notice
        shall be made by first class mail, postage pre-paid and by facsimile and
        addressed as follows:

       

      If
        to
        Plaintiff:

       

      Thomas
        V. Keough

      Simpson
        Law Offices, LLP

      One
        Securities Centre, Suite
        300

      3490
        Piedmont Road NE

      Atlanta,
        GA 30305

      (404)
        266-9405

      

      If
        to
        Defendant:

       

      William
        K. Whitner, Esq.

      Paul,
        Hastings, Janofsky & Walker
        LLP

      600
        Peachtree Street NE, Suite
        2400

      Atlanta,
        GA 30308

      (404)
        685-5228

      

       

      Any
        notice given pursuant to this Consent Order shall be deemed effective upon
        dispatch and if either party wishes to change its Notice Address it may do
        so by
        serving notice pursuant to this paragraph on the other party.

       

      6.

       

      In
        the
        event Defendant pays all amounts due to be paid hereunder, and delivers all
        stock due to be delivered hereunder, in strict compliance with the terms
        of this
        Consent Order, then, and in that event, Defendant’s indebtedness to Plaintiff
        shall be deemed satisfied and Plaintiff shall dismiss this case with
        prejudice.

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      7.

       

      Upon
        receipt and honor of the Final Payment by Plaintiff, in strict compliance
        with
        the terms of this Consent Order, Defendant shall have five (5) days to recover,
        at its cost, from The Crowne Centre, 235 Peachtree Road, Suite 400, Atlanta,
        GA
        30303 Defendant’s property that remained on the premises governed by the Lease
        Agreements, provided however that Plaintiff make no representations regarding
        type, quantity or condition of such property, and shall not be responsible
        to
        Defendant for the same.

       

      Continued
        on following page.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      8.

       

      The
        parties to this Consent Order have relied upon their own independent judgment
        and their own legal counsel, if any, and have freely executed this Consent
        Order
        with the fully understanding of the terms and conditions contained
        herein.  All prior agreements between the parties are hereby merged
        into this Agreement and no change, modification or amendment to this Consent
        Order shall be valid unless reduced to writing and signed by the parties
        or
        their legal representatives, if any.

       

      IT
        IS SO ORDERED this 4th day of October, 2007.

       

      

       

                             
         /s/Penny
        Brown-Reynolds
JUDGE,
        Penny
        Brown-Reynolds

      State
        Court of Fulton County, State of
        Georgia

      

      Prepared
        and Consented to By:

      

      
        	
                
                   
                    /s/ THOMAS V. KEOUGH
                    

                  

                

                THOMAS
                  V. KEOUGH

                Attorney
                  for Plaintiff

                State
                  Bar Number:  415745

                SIMPSON
                  LAW OFFICES, L.L.P.

                One
                  Securities Centre, Suite 300

                3490
                  Piedmont Road, NE

                Atlanta,
                  Georgia 30305

                (404)
                  266-2421

              	
                
                   
                    /s/ WILLIAM K. WHITNER

                    

                    WILLIAM K. WHITNER

                

                Attorney
                  for Defendant

                State
                  Bar Number:  756652

                PAUL,
                  HASTINGS, JANOFSKY & WALKER LLP

                600
                  Peachtree Street NE, Suite 2400

                Atlanta,
                  GA 30308

                (404)
                  815-2400

              

      

      
 

       

      5

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