Document:

ex101.htm

Exhibit 10.1

 

SETTLEMENT AND FORECLOSURE AGREEMENT

This Settlement and Foreclosure Agreement (the “Agreement”) is made the 30th day of November 2011 (the “Execution Date”) by and between Forex International Trading Corp., Moria 30 Avenue, Haifa, Israel 34572 (“Forex”), AP Holdings Limited, Frede Livadica, 10490 Samobor, Croatia (“APH”), H.A.M. Group Limited, a Nevis corporation, Willem De Zwijgerlaan 276, Amsterdam 1055RE, Holland (“HAM”) and Cordellia d.o.o., a Croatian corporation, 29 E Tuskanac St., 10000 Zagreb, Croatia (“CDOO”) (each a “Party” and collectively the “Parties”).

WITNESSETH:

WHEREAS, on November 17, 2010, the Company entered into a Share Exchange Agreement (the “APH Agreement”) with APH pursuant to which the Company agreed to acquire 17,924 ordinary shares of Triple 8 Limited, a corporation organized under the laws of Cyprus, engaged in the business of operating a Forex trading platform (“Triple”) in consideration  of 36,000,000 shares of common stock of the Company as well as a 6%  Convertible Note in the principal amount of $1,200,000 due February 15, 2011 (the “APH Note”).  

WHEREAS, on December 30, 2010, the Company and APH entered into an amendment to the APH Agreement whereby the number of shares to be delivered by the Company was reduced from 36,000,000 to 25,000,000. 

WHEREAS, the APH transaction closed on December 30, 2010 with an effective date of October 1, 2010.  

WHEREAS, the APH Note was secured by 7,984 shares of Triple.

 

WHEREAS, on April 5, 2011 $200,000 of the APH Note was assigned to a third party, which converted the assigned portion into 2,500,000 shares of common stock.

WHEREAS, on April 5, 2011, the Company and APH entered into an agreement whereby APH agreed to extend the maturity date of the APH Note from February 15, 2011 to June 30, 2011 and the Company agreed to return the 33,000,000 shares of common stock (of which 8,000,000 shares of common stock were purchased by APH from a third party) held by APH to treasury and issued APH 100,000 shares of Series A Preferred Stock (the “APH Stock”). 

WHEREAS, on April 5, 2011, the Company entered into and closed a Share Exchange Agreement with HAM pursuant to which it acquired 1,996 ordinary shares of Triple in consideration of 12,000 shares of Series A Preferred Stock (the “HAM Stock”) and a 6% Convertible Debenture due June 30, 2011  in the amount of $600,000 (the “HAM Note”). 

WHEREAS, APH and HAM have assigned the remaining portion of the APH Note in the amount of $1,000,000 and the HAM Note, respectively, to CDOO.

WHEREAS, the APH Note and the HAM Note are in default and HAM, at the direction of CDOO, the holder thereof, provided an acceleration notice to the Company in September 2011.

WHEREAS, in the event that CDOO commences an action against the Company, the Company would be required to defend itself incurring substantial legal fees and requiring that the Company ultimately pay $1,600,000 in principal under the HAM Note and APH Note plus interest, penalties and attorneys’ fees.

WHEREAS, in order to avoid costly litigation and the potential detrimental impact of a judgment to the Company, the Company has agreed to enter into that certain Annulment of Share Purchase Agreement with Triple, APH and HAM (the “Annulment”) which is attached hereto as Exhibit A, whereby, as a result of the parties agreement to unwind,  APH, HAM and the Company’s ownership interest in Triple, Triple has agreed to pay the Company $2,001,000 over time with the initial payment of $732,000 within three days of the Annulment and the balance being paid through November 10, 2012.

WHEREAS, in order to expedite the closing of the Annulment, the Parties have agreed to enter into this Agreement, whereby the Company will provide CDOO, as the assignee of HAM and APH, with the ability to foreclose on all shares of Triple held by the Company in consideration of the termination of the APH Note and the HAM Note, which are presently in default, and the issuance of a new promissory note in the name of CDOO in the principal amount of $1,000,000, attached as Exhibit B (the “New Note”).

WHEREAS, in order to induce the Company to enter into this Agreement, APH and HAM have also agree to return to the Company for cancellation portion of the APH Stock and all of the HAM Stock, respectively.

WHEREAS, the Parties to this Agreement now desire to terminate any and all agreements between them and to resolve all disputes existing between them.

NOW, THEREFORE, in consideration of the mutual promises, releases, and payments provided for herein, the Parties hereto agree as follows:

 

1. Obligations Among the Parties. By the Parties executing this Agreement, in consideration of the termination of the APH Note and the HAM Note and the cancellation of the APH Stock and the HAM Stock, subject to all payments being made to the Company by Triple under the Annulment, the Company hereby provides CDOO, as the assignee of HAM and APH, with the ability to foreclose on all shares of Triple (or any other contractual rights) held by the Company in consideration of the termination of the APH Note and the HAM Note, which are presently in default. HAM and APH shall deliver the certificates representing the HAM Stock  and  APH Stock to the Company for cancellation.  As a result of the cancellation of the APH Stock and the HAM Stock, APH and HAM will no longer own securities in the Company and the Company will have 34,254,085 shares of common stock issued and outstanding (49,254,085 shares of common stock on fully diluted basis).  The Company shall deliver the New Note to CDOO.

 

 

 

 

  

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2. Releases: APH, HAM and CDOO release the Company from and against any and all claims, chooses in action and from any and all debts, obligations, claims, and causes of action either of them may have against the other and against the other‘s respective agents, representatives, employees, predecessors, successors, officers, directors, shareholders, partners, subsidiaries, parents, or affiliates, whether such debts, obligations, claims, or causes of action are accrued or un-accrued, or known or unknown.  This release includes but is not limited to any and all claims relating to any interest, penalties or fees resulting from the APH Note and the HAM Note.

 

3. No Admission of Liability: No party admits any default, error, liability, or wrongdoing by entering into this Agreement.  Neither shall any party hereto portray this Agreement or any act taken under or in connection with it as an explicit or implicit statement or admission of the strength or weakness of any position taken by any party.  Instead, the Parties enter into this Agreement to constructively resolve disputes between them and to avoid litigation.

 

4. Settlement of Debt, Liabilities & Obligations. Each of the Parties acknowledges and understands that this Agreement shall settle all debts, liabilities and obligations between the Parties and that any and all prior Agreements are hereby null and void.

 

5. No Oral Modifications: This Agreement sets forth the entire agreement between the Parties and supersedes in its entirety any and all prior agreements, understandings or representations relating to the subject matter hereof and may not be changed or terminated orally.  The Parties represent that in entering this Agreement they do not rely on any statement or fact not set forth herein.

 

6. Governing Law, Remedies, Venue and Jurisdiction: This Settlement Agreement shall be governed exclusively by the Laws of the State of Israel, and any actions, claims or proceedings shall be subject to the exclusive venue and jurisdiction of the state and Federal Courts in Haifa, Israel. The Parties hereby waive any right to a jury trial. In the event of a default by either Party, the other Party’s sole remedy shall be to enforce the terms of this Settlement Agreement. In the event a Party to this Settlement Agreement must institute suit or a cause of action to enforce the terms of this Settlement Agreement, the prevailing party will be entitled to fees and costs, including reasonable attorney’s fees. This shall also include any attorney’s fees required for the purposes of executing and collecting on the amounts due pursuant to the Stipulated Judgment, the actual Judgment and the Security Interest.

 

7. Notices: All notices, requests, demands, claims, and other communications hereunder shall be in writing and delivered via overnight courier.  Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given as of the next business day.  Such notices shall be addressed to the intended recipient(s) as set forth above.

 

8. No Representations: Neither party has relied upon any representations or statements made by the other party hereto which are not specifically set forth in this Agreement.

 

9. Severability:  In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.

 

10. Entire Agreement:  This Agreement represents the entire agreement and understanding between the Parties concerning the termination of the Purchase Order and Teaming Agreement (collectively the “Agreements”), and supersedes and replaces any and all prior agreements and understandings concerning the Agreements.

 

11. Binding Effect: This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors, assigns, distributees, heirs, and grantees of any revocable trusts of a Party. No Party may assign either this Agreement or any of its or his or her rights, interests, or obligations hereunder without the prior written approval of the other Parties.

 

12. No Third-Party Beneficiaries: This Agreement shall not confer any rights or remedies upon any person other than the Parties and their respective successors and permitted assigns.

 

13. Headings and Counterparts: The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.  Facsimile and photocopies of this Agreement shall have the same effect as originals.

 

14. Waivers: No waiver by any Party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence and all waivers must be in writing, signed by the waiving Party, to be effective.

 

15. Further Assurances: Each Party shall, at the reasonable request of any other Party hereto, execute and deliver to such other Party all such further instruments, assignments, assurances and other documents, and take such actions as such other Party may reasonably request in connection with the carrying out the terms and provisions of this Agreement.

 

16. Voluntary Execution of Agreement:  This Agreement is executed voluntarily and without any duress or undue influence on the part or behalf of the Parties hereto, with the full intent of releasing all claims. The Parties acknowledge that:

 

	
(a)  

	
They have read this Agreement;

 

	
(b)  

	
They have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice or that they have voluntarily declined to seek such counsel;

 

	
(c)  

	
They understand the terms and consequences of this Agreement and of the releases it contains;

 

	
(d)  

	
They are fully aware of the legal and binding effect of this Agreement; and

 

	
(e)  

	
Each signatory to this Agreement below represents that he/she has the requisite authority and has been duly authorized by his/her respective corporation to execute this Agreement.

 

 

  

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IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

 

 

	Forex International Trading Corp.	 	AP Holdings Limited
	 	 	 
	By: /s/Liat Franco 	 	By: /s/ Shalom Atia
	Name: Liat Franco	 	Name: Shalom Atia
	Title: Chief Executive Officer   	 	Title: Director
	 	 	 
	 	 	 
	H.A.M. Group Limited	 	Cordellia d.o.o.
	 	 	 
	By: /s/ Oz Har Adir  	 	By: /s/ Michael Kaponi
	Name: Oz Har Adir   	 	Name: Michael Kaponi
	Title: Director  	 	Title: Director
	 	 	 

 

 

 

                                                                                     

                                                                                                                                                                                                                                       

 

 

 

 

3ex102.htm

Exhibit 10.2

 

ANNULMENT OF SHARE PURCHASE AGREEMENT

 

 

 THIS ANNULMENT OF SHARE PURCHASE AGREEMENT (this "Agreement") is made as of  December 1, 2011,  (the "Effective Date"), by and between (a) Triple 8 Limited, a Cyprus company (the "Company"), (b) 888 Markets (Jersey) Limited, a Jersey company (the "Investor"), (c)  HAM LIMITED  a company registered in Nevis ("HAM");  (d) AP Holdings, a company registered in Jersey ("AP"), and  (e) Forex International Trading Corp, a Nevada company (the "Forex") (the Company ,  the Investor ,  HAM ,  AP  and Forex, each a "Party" and collectively, the "Parties").

 

WHEREAS, the Company and the Investor are parties to that certain Share Purchase Agreement dated November 10, 2008, pursuant to which the Investor purchased from the Company 19,920 ordinary shares of the Company (the "Shares") that represents approximately 49.9% of the Company at such time (the "SPA"); and

 

WHEREAS, the Investor, HAM, AP Holdings and Forex hereby declare and represent to the Company that:

 

(1)         on December 1, 2011, the Investor and HAM entered into an agreement (the "Investor-HAM Agreement") pursuant to which the Investor and HAM agreed to transfer 90% of the Shares (i.e.: 17,928 ordinary shares of the Company) (the "Waived Shares") to HAM for a remaining balance due of $750,000 (all as set forth in the Investor-HAM Agreement attached hereto as Exhibit ‎‎(A));

 

 (2)         HAM previously entered into an agreement to transfer its interest in the Company to Forex; an agreement in which Forex defaulted for cause and therefore failed to pay balances owing on notes with respect  the total acquisition consideration when due;

 

(3)         Investor and Mr Jack Lahav ("Lahav") agreed that the Investor shall assign to Lahav the right to 10% of the Shares (i.e.: 1992 ordinary shares of the Company) (the "Lahav Shares"); and

 

(4)         AP HOLDINGS consented to the transactions set forth in ‎(A), ‎(B) and ‎(C) above;

 

WHEREAS, subject to the terms set forth in this Agreement which apply to the Company and the Investor, the Parties wish to declare the SPA null and void, and

 

WHEREAS, the Investor, HAM, AP and Forex hereby declare that each of the above referenced transfers to Forex are null and void;

 

NOW, THEREFORE, in consideration of the mutual covenants and representations herein set forth, the Parties agree as follows:

 

1. Subject to Section ‎8 hereto, and fulfillment of all the terms and conditions of this Agreement applicable to the Company and the Investor, the SPA is hereby declared null and void.

 

2. Subject to Section ‎8 hereto, and until the date on which conditions of Sections ‎5 and ‎7 have been satisfied in full, the Investor, HAM, AP and Forex hereby acknowledge and agree that, except for the Lahav Shares, the Company has not, and will not, issue any shares, or grant  any securities, to the Investor, HAM, AP or Forex, or any person or entity related thereto, whether by virtue of the SPA, any other verbal or written agreement, law or otherwise.

 

3. Subject to Section ‎8 hereto, and until the date on which conditions of Sections ‎5 and ‎7 have been satisfied in full the Company irrevocably undertakes not to alter the number of issued share of the Company.

 

4. The Parties hereby acknowledge that, pursuant to the SPA and prior to the Effective Date hereof, the Investor, HAM, AP and/or Forex had furnished certain amounts to the Company, and hereby agree that the Company shall repay an aggregate total amount (which includes interest) of US $2,800,000 as agreed repayment thereof (the "Agreed Repayment Amount"), and that such Agreed Repayment Amount shall be made to HAM in accordance to its instructions set forth in Section ‎6 hereto.

 

5. The Agreed Repayment Amount shall be made by the Company as follows:

 

5.1. Not later than 3 business days from the Effective Date, the Company shall repay an amount of US $1,000,000;

 

5.2. On the 10th day of each of the 10 calendar months commencing on January 10th , 2012 and ending on October 10th, 2012, the Company shall repay an amount of US $100,000 (and, in the aggregate for all payments set forth in this Section ‎5.2, an amount of US $1,000,000); and

 

5.3. On the 10th of November 2012, the Company shall repay an amount of US $800,000.

 

6. HAM hereby instructs the Company, and each of the Investor, AP and Forex hereby agree, that each of the payments set forth in Section ‎5 above shall be divided and disbursed by the Company by means of a wire transfer to two separate bank accounts, and allocated between them, all as set forth in to Exhibit ‎4 attached hereto: to the bank account of Lanatech Limited care of:

 

  

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Bank: Royal Bank of Scotland International;

Bank address: Royal Bank House, 71 Bath Street, St Helier, Jersey, JE4 8PJ;

Account number:                                 50596201;

IBAN: GB77RBOS16102850596201;

Account name: Lanatech Limited.

 

 and to   Forex's attorney trust bank account:

 

 Name of Account:       Fleming PLLC

Bank:                              Citibank

                                        330 Madison Avenue

                                        New York, New York 10017

ABA:                              021000089

Account #:                    9936861271   

Swift:                              citius33

 

 

7. A delay in payment by no more than 14 days (for other than the initial payment of $1,000,000 and the payment for legal fees of $10,000 that shall be paid in 3 days) shall not constitute a breach of this Agreement. For the avoidance of doubt, a day which is deemed a Banking Holiday in Cyprus, Jersey, Channel Islands, or the USA shall not count as one of such days.

 

8. If any payment set forth in Section ‎5 above shall not be made in full as required pursuant to this Agreement within 60 days from its applicable date of payment (for other than the initial payment of $1,000,000 and the payment for legal fees of $10,000 that shall be paid in 3 days) (for each payment - the "Last Date for Payment"), then such failure shall be deemed an event of material default, which shall result in all of the following events occurring:  (i) as sole and exclusive remedy of the Investor, HAM, AP and Forex for such non-payment, the Company shall issue to Forex (and not to any other Party) all Waived Shares within 7 days from such Last Date for Payment; (ii) all amounts previously paid pursuant to this Agreement shall NOT BE  returned to the Company, and shall be considered as both  liquidated damages and compensation payments that shall NOT BE returned to the Company in any way; and  (iii) this Agreement shall promptly terminate, and no further payment shall be made by the Company on account whereof.

 

9. As between the Investor, HAM, AP and Forex, it is agreed that in the event that the Waived Shares are issued to Forex pursuant to Section ‎8 above, then concurrently, and not later than Five business days from the date on which the Shares are issued to Forex, Forex shall issue to the Investor such number of shares as represents the pro-rata amount of shares for which the Investor has not received cash compensation based on the following formula: $750,000 USD representing 25% of all Shares; if and to the extent Lanatech Limited has not received $750,000 in cash as set forth herein, then any portion of such $750,000 amount not paid shall result in the Investor receiving a pro-rata amount of all Shares (e.g., if  Lanatech Limited were to only receive $375,000 pursuant to this agreement, then the Investor shall be entitled to hold 12.5% of all shares). ;

 

10. The Investor, HAM, AP and Forex hereby agree and acknowledge that the Agreed Repayment Amount provides adequate and final payment thereto under this Agreement, the SPA or otherwise, and that they, or any person or entity on their behalf or stead, or any affiliated person or entity thereof, shall not be entitled to receive any further payment or (except as set forth in Section ‎8 hereto, to the extent applies) any securities (including Company shares).

 

11. Subject to consummation of the Transactions contemplated hereby, and provided the Company received from Lavav, a written notice instructing the Company to issue the Lahav Shares either to Lahav or to an entity wholly owned by Lahav, the Company shall, within 7 days of receipt of such written instruction, issue to Lahav or to such entity the Lahav Shares.

 

12. Subject to the fulfillment of the Parties respective obligations hereunder, each Party hereby forever irrevocably waives any claim, legal or otherwise, against the other Party or any of its subsidiaries or any of their shareholders, directors, officers and employees, and releases the same, including with respect to any claims regarding any matters relating to the sale or purchase of any shares or other securities of the Company, or any payment made or to be made, whether by virtue of the SPA, any other verbal or written agreement, law or otherwise.

 

13. Without derogating from the above, the Parties hereby agree and confirm that should a claim or demand be brought by the Investor, HAM, AP, Forex, Lahav or Lanatech Limited, or any person or entity on their behalf or stead, or any affiliated person or entity thereof (each, a "Non-Company Entity"), against the Company, its subsidiaries, parent or affiliated companies, or against any of their respective officers, directors, shareholders, employees, consultants and advisors (each, a "Company Entity"), alleging that any Non-Company Entity is entitled to any further amount, or (except as set forth in Section ‎8 hereto, to the extent applies) to any securities (including shares of the Company), whether by virtue of the SPA, any other verbal or written agreement, law or otherwise, or with respect to or the conduct of the Company at any time including, without limitation, any action taken or any omission to take any action on behalf of the Company, before or following the Effective Date hereof ("Claim"), then any loss, expense or payment (whether by cash, securities or otherwise) suffered by any Company Entity as a result thereof, may be (without derogating from any other remedy available to such Company Entity by law, agreement or otherwise) set off against any portion of the Agreed Repayment Amount not actually repaid until such time.

 

 

  

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14. It is hereby agreed that the $75,000 loan previously advanced to the company by the Investor is hereby waived, and the Company shall not be required to repay any amount (whether by cash or otherwise) on account whereof.     

 

15. This Agreement shall be governed in all respects by the internal laws of Cyprus. The appropriate courts in Cyprus shall have exclusive jurisdiction over any dispute or claim in connection with this Agreement.

 

16. This Agreement embodies the entire understanding and agreement between the Parties and supersedes all prior agreements and understandings relating to the subject matter hereof.  Except as expressly made herein, the Company makes no representation or warranty concerning any matter, including without limitation, the business prospects of the Company.  This Agreement shall not be amended except by an instrument in writing signed by the Parties.

 

17. All notices and other communications required or permitted hereunder shall be deemed sufficiently made if given in writing and delivered in person, or sent by telecopy, electronic mail, overnight delivery service or certified or registered mail:

 

17.1. if to the Investor, at the Investor's address set forth in the SPA, or at such other address as the Investor shall have furnished to the other Parties in writing;

 

17.2. if to HAM, to Willem De Zwijgerlaan 276Amsterdam 1055RE, Holland, or at such other address as HAM shall have furnished to the other Parties in writing;

 

if to AP, to Dominika Mandica 21Zagreb Croatia 10090, or at such other address as AP shall have furnished to the other Parties in writing;

 

17.3. if to Forex, to Fleming PLLC  49 Front Street, Suite 206, Rockville Centre New York 11570 United States of America ,or at such other address as Forex shall have furnished to the other Parties in writing; or

 

17.4. if to the Company, at the Company's address set forth in the SPA, or at such other address as the Company shall furnish to the other Parties in writing.

 

17.5. Any such notice shall be deemed to have been received, if personally delivered, or sent by telecopy, electronic mail or overnight delivery service, on the date of delivery, or, if mailed on the second day after the day on which the letter is posted.

 

17.6. Each Party hereto shall pay its own expenses in connection with the preparation of this Agreement and the consummation of the transactions contemplated hereby.; notwithstanding the foregoing, not later than three business days following execution of this Agreement, by all Parties; a US $10,000  payment for legal costs shall be made by the Company to Lanatech Limited which shall be deducted and offset  from the $100,000 amount owing in the payment to be made January 1, 2012.

 

 

 

 

 

 

[Remainder of the page intentionally left blank]

 

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

 

 

	
COMPANY

 

Triple 8 Ltd

	 	
 INVESTOR

 

888 Markets (Jersey) Limited

	  	 	
 

	
Name: Dementra Cosma Eagle

	 	
Name: AJ Rothsell  and L. Braitelle

	
Title:  Director

	 	
Director:

	
/s/ Dementra Cosma Eagle

	 	
(subject to Eratum and amendment document to 

annulment of share purchase agreement)

	 	 	

Name

	 	 	

Director:

 

	 	 	  
	
 

Forex International Trading LTD

	 	  
	
By:  /s/ Liat Franco

Name: Liat Franco

Title : CEO

	 	  

 

                                                                           

	BY:	 	
BY:

	 	 	 
	
H.A.M Holdings

	 	
AP Holdings LTD

	
By:/s/ Oz Har Adir

Name: Oz Har Adir

Title : Director

Date: 4/12/2011

	 	
By:/s/ Shalom Atia

Name: Shalom Atia

Title : Director

Date: 5/12/2011

 

 

 

  

4

  

 

 

Exhibit ‎‎(A)

 

 

 

  

5

  

 

 

 

Exhibit ‎4

 

 

ALLOCATION OF PAYMENTS

 

 

 

 

A) FIRST PAYMENT OF $1,000,000:

 

           A-1)  TO LANATECH LIMITED: $268,000

 

           A-2)  TO FOREX INTERNATIONAL TRADING:  $732,000

 

B)  PAYMENT OF FIRST $100,000 PAYMENT (LESS $10,000 ADVANCE IS $90,000)

 

           B-1) $ 21,786 to Lanatech Limited

 

           B-2) $ 68,214 to Forex International Trading

 

 

C) SECOND THROUGH TENTH PAYMENTS OF $100,000

 

           C-1) $26,786 to Lanatech Limited

 

           C-2) $73,214 to Forex International Trading

 

D) FINAL PAYMENT OF $800,000

 

           D-1) $258,140 Lanatech Limited

 

           D-2) $541,860 to Forex International Trading

 

 

 

 

 

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