Document:

Exhibit 10.1

AMENDMENT #2 TO THE CONVERTIBLE PROMISSORY NOTES

ISSUED ON MARCH 18, APRIL 22, AND MAY 27, 2016

THIS AMENDMENT #2 TO THE CONVERTIBLE PROMISSORY NOTES ISSUED ON March 18, April 22, and May 27, 2016 (the “Amendment”) is made effective as of November 28, 2016 (the “Effective Date”), by and between CLS Holdings USA, Inc., a Nevada corporation (the “Company”), and Old Main Capital, LLC, a Florida limited liability company (the “Holder”) (collectively the “Parties”).

BACKGROUND

A. The Company and Holder are the parties to those certain 15% (amended from 10% to 15% effective August 1, 2016) convertible promissory notes originally issued by the Company to the Holder on March 18, April 22, and May 27, 2016, in the original principal amounts of $222,222.00 (the “First 15% Note”), $55,556.00 (the “Second 15% Note”), and $55,556.00 (the “Third 15% Note”), respectively (collectively the “15% Notes”); and

B. The Company and Holder are the parties to that certain 8% convertible promissory note originally issued by the Company to the Holder on March 18, 2016, in the original principal amount of $200,000.00 (the “8% Note”)(together with the 15% Notes, the “Notes”).

C. The Parties amended certain terms of the Notes pursuant to an Amendment to Agreements dated October 6, 2016 (the “First Amendment”).

D. The Parties desire to amend the Notes again as set forth expressly below.

NOW THEREFORE, in consideration of the execution and delivery of the Amendment and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

	
1.

	
The first sentence of the second paragraph of the 8% Note shall be deleted and replaced with the following language:

FOR VALUE RECEIVED, the Company promises to pay to Old Main Capital, LLC or its registered and permitted assigns (the “Holder”), or shall have paid pursuant to the terms hereunder, the principal sum of $200,000 and all accrued interest on the aggregate unconverted and outstanding principal amount of this Note from time to time, on March 18, 2017 (the “Maturity Date”) or such earlier date as this Note is required or permitted to be repaid as provided hereunder.

	
2.

	
The first sentence of the second paragraph of the First 15% Note shall be deleted and replaced with the following language:

FOR VALUE RECEIVED, the Company promises to pay to Old Main Capital, LLC or its registered and permitted assigns (the “Holder”), or shall have paid pursuant to the terms hereunder, the principal sum of $244,444, and all accrued interest on the aggregate unconverted and outstanding principal amount of this Note from time to time, on September 18, 2017 (the “Maturity Date”) or such earlier date as this Note is required or permitted to be repaid as provided hereunder.

	
3.

	
The first sentence of the second paragraph of the Second 15% Note and Third 15% Note shall be deleted and replaced with the following language:

FOR VALUE RECEIVED, the Company promises to pay to Old Main Capital, LLC or its registered and permitted assigns (the “Holder”), or shall have paid pursuant to the terms hereunder, the principal sum of $61,111, and all accrued interest on the aggregate unconverted and outstanding principal amount of this Note from time to time, on September 18, 2017 (the “Maturity Date”) or such earlier date as this Note is required or permitted to be repaid as provided hereunder.

	
4.

	
The following language shall be deleted in its entirety from the first page of the 8% Note:

“Fixed Conversion Price (subject to adjustment herein): $1.07”

	
5.

	
The following language shall be deleted in its entirety from the first page of the 15% Notes:

“Fixed Conversion Price (subject to adjustment herein): $0.80”

	
6.

	
The first sentence of Section 4(b) of the 8% Note shall be replaced in its entirety with the following:

The conversion price in effect on any Conversion Date shall be equal to the lesser of (i) $1.07 or (ii) 75% of the lowest VWAP in the fifteen (15) consecutive Trading Days ending on the Trading Day that is immediately prior to the applicable Conversion Date (the “Fixed Conversion Price”).

	
7.

	
The first sentence of Section 4(b) of the 15% Notes shall be replaced in its entirety with the following:

The conversion price in effect on any Conversion Date shall be equal to the lesser of (i) $0.80 or (ii) 75% of the lowest VWAP in the fifteen (15) consecutive Trading Days ending on the Trading Day that is immediately prior to the applicable Conversion Date (the “Fixed Conversion Price”).

	
8.

	
The definition of Amortization Conversion Rate in Section 1 of the Notes shall be removed in its entirety.

	
9.

	
The definition of Amortization Payment in Section 1 of the Notes shall be removed in its entirety.

	
10.

	
The definition of Equity Conditions in Section 1 of the Notes shall be removed in its entirety.

	
11.

	
The title of Section 2 of the Notes shall be replaced in its entirety with “Prepayment and Interest.”

	
12.

	
The second sentence of Section 2(a) of the Notes shall be replaced in its entirety with the following:

“All accrued interest hereunder will be payable on the Maturity Date in common stock pursuant to a voluntary conversion, or in cash.”

	
13.

	
 Section 2(e) of the Notes shall be removed in its entirety.

	
14.

	
The Amortization Schedule on Schedule 2 of the Notes shall be removed in its entirety.

	
15.

	
The total outstanding balance of the 15% Notes shall all be increased by 10%.

	
16.

	
The following Section 7(k) shall be added to the Notes:

“k) Trading Limitation.  Unless an Event of Default occurs under the Note and is continuing, the Holder shall only be permitted to sell, per Trading Day, an amount of Common Stock up to the greater of (i) $5,000 or (ii) 25% multiplied by the Aggregate Amount (as defined below).  The Aggregate Amount shall mean the average number of shares of Common Stock sold per day for the five (5) Trading Days preceding the day of sale (total shares sold during the trading period divided by 5) multiplied by the average daily VWAP during the immediately preceding five (5) Trading Day period.”

	
17.

	
Holder hereby confirms that (i) no event of default has occurred under the Notes as of the Effective Date, and (ii) all amortization payments due under the Notes prior to the Effective Date have been deferred until the respective maturity date of the Notes.

	
18.

	
This Amendment shall be deemed part of, but shall take precedence over and supersede any provisions to the contrary contained in the Notes, as modified by the First Amendment.  Except as specifically modified hereby and by the First Amendment, all of the provisions of the Notes, which are not in conflict with the terms of this Amendment, shall remain in full force and effect.  Notwithstanding the foregoing and for purposes of clarity, the interest rate on the 15% Notes shall be 10%, as increased to 15% effective August 1, 2016, and for purposes of computing interest on the 15% Notes, the principal balances of the 15% Notes shall be the original amounts, as set forth in the Notes (without consideration of this Amendment), until the Effective Date, 2016, at which point the principal balances of the 15% Notes shall be increased to the amounts set forth in this Amendment.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Effective Date.

	
CLS Holdings USA, Inc.

 

By: /s/ Jeffrey Binder                              

Name: Jeffrey Binder

Title: Chief Executive Officer

 

	
Old Main Capital, LLC

 

By: /s/ Adam Long                                  

Name: Adam Long

Title: PresidentExhibit 10.1

 

 

 

DEBT SETTLEMENT

Dated as of November 28, 2016

This Debt Settlement and Release Agreement (this "Agreement") is dated as of the date first set forth above (the "Effective Date"), and is entered into by and between (i) New Asia Energy, Inc., a Colorado corporation (the "Company"); (ii) Rock Capital Ltd, previously the principal controlling and currently a minority shareholder of the Company ("Rock Capital") collectively referred to herein as the "Parties" and each as a "Party."

            WHEREAS, Rock Capital has advanced certain funds to the Company and is expected to advance additional funds to the Company for the payment of the Company's operating expenses and other matters;

WHEREAS, Rock Capital and the Company desire to provide for the repayment of the funds so advanced by Rock Capital or the conversion thereof, pursuant to the terms and conditions herein;

            NOW, THEREFORE, in consideration of the premises and of the terms and conditions herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties mutually agree as follows:

	1.	
Payments Made.  The Parties acknowledge and agree that, as of November 28th, 2016 , Rock Capital has advanced a total of $102,420 in funds to the Company; the "initial advance" which reflects $42,420 advanced through September 30th, 2016 and an additional $60,000 advanced through November 28th, 2016. These advances were used to pay for the Company's further operating expenses of the Company. The total advances through November 28th, 2016  total $102,420.

	2.	
Repayment or Conversion.

		(a)	
The Debt shall be due and payable in full, without interest and without further demand, as of 9:00 a.m., local time in Singapore, on November 28, 2016 (the "Due Date").

		(b)	
In the event that the Debt is not paid in full as of the Due Date, Rock Capital, in its sole discretion, shall cause the Company to issue to Rock Capital a number of shares of common stock, par value $0.001, of the Company (the "Common Stock") equal to (A) the Debt, divided by $0.00105 (the "Issuance"). Based on the advances set forth above, the total number of shares to be issued equal to 97,542,857.  Rock Capital consistent with  the preceding sentence by delivering to the Company the Conversion Election in the form as attached hereto as Exhibit B.

		(c)	
The Company covenants and agrees to undertake such actions as may be required to complete the Issuance.

 

  

Exhibit 10.1 -- Page 1

 

  

	3.	
Representations and Warranties of the Company. The Company hereby represents and warrants to Rock Capital as follows:

		(a)	
Authorization.  The execution, delivery and performance by the Company of this Agreement and the performance of all of the Company's obligations hereunder have been duly authorized by all necessary corporate action, and this Agreement has been duly executed and delivered by the Company.  The execution and performance of the transactions contemplated by this Agreement and compliance with its provisions by the Company will not conflict with or result in any breach of any of the terms, conditions, or provisions of, or constitute a default under, its Certificate of Incorporation or Bylaws or any agreement to which the Company is a party or by which it or any of its properties is bound.

		(b)	
Issuance of Shares.  The issuance and delivery of the Common Stock in accordance with this Agreement and the Issuance have been duly authorized by all necessary corporate action on the part of the Company, and the shares of Common Stock to be delivered pursuant to this Agreement, when so delivered, will have been duly and validly authorized and issued by the Company and will be fully paid and nonassessable.

		(c)	
Binding Obligation.  Assuming the due execution and delivery of this Agreement by Rock Capital, this Agreement constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject, as to enforcement, (i) to bankruptcy, insolvency, reorganization, arrangement, moratorium and other laws of general applicability relating to or affecting creditors' rights and (ii) to general principles of equity, whether such enforceability is considered in a proceeding in equity or at law.

	4.	
Representations and Warranties of Rock Capital. Rock Capital hereby represents and warrants to the Company as follows:

		(a)	
Authorization.  Rock Capital has full power and authority to enter into this Agreement, to perform his obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.

		(b)	
Binding Obligation.  Assuming the due execution and delivery of this Agreement by the Company, this Agreement constitutes the valid and binding obligation of Rock Capital, enforceable against Rock Capital in accordance with its terms, subject, as to enforcement, (i) to bankruptcy, insolvency, reorganization, arrangement, moratorium and other laws of general applic-ability relating to or affecting creditors' rights and (ii) to general principles of equity, whether such enforceability is considered in a proceeding in equity or at law.

		(c)	
Restricted Securities.  None of the Shares are registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws.  Rock Capital understands that the Shares may not be sold, transferred or otherwise disposed of without registration under the Securities Act or an exemption therefrom.

	5.	
Miscellaneous.

		(a)	
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.

 

 

 

Exhibit 10.1 -- Page 2

		(b)	
Entire Agreement.  This Agreement (including the documents referred to herein) constitutes the entire agreement among the Parties and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to the extent they related in any way to the subject matter hereof.

		(c)	
Interpretation. The Parties agree that this Agreement shall be deemed to have been jointly and equally drafted by them, and that the provisions of this Agreement therefore shall not be construed against a Party on the ground that such Party drafted or was more responsible for the drafting of any such provision(s). The Parties further agree that they have each carefully read the terms and conditions of this Agreement, that they know and understand the contents and effect of this Agreement and that the legal effect of this Agreement has been fully explained to its satisfaction by counsel of its own choosing.

		(d)	
Governing Law; Jurisdiction.  This Agreement shall be governed, construed and enforced in accordance with the laws of the State of Colorado, without giving effect to principles of conflicts of law. Each of the Parties agree to submit to the jurisdiction of the federal or state courts located in State of Colorado in any actions or proceedings arising out of or relating to this Agreement. Each of the Parties, by execution and delivery of this Agreement, expressly and irrevocably (i) consents and submits to the personal jurisdiction of any of such courts in any such action or proceeding; (ii) consents to the service of any complaint, summons, notice or other process relating to any such action or proceeding by delivery thereof to such Party as set forth herein and (iii) waives any claim or defense in any such action or proceeding based on any alleged lack of personal jurisdiction, improper venue or forum non conveniens or any similar basis. EACH OF THE UNDERSIGNED HEREBY WAIVES FOR ITSELF AND ITS PERMITTED SUCCESSORS AND ASSIGNS THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INSTITUTED IN CONNECTION WITH THIS AGREEMENT.

		(e)	
Specific Performance.  The Parties acknowledge and agree that a breach of the provisions of this Agreement could not adequately be compensated by money damages, and therefore any Party shall be entitled, in addition to any other right or remedy available to it, to an injunction restraining such breach or threatened breach and to specific performance of any such provision of this Agreement, and no bond or other security shall be required in connection therewith, and the Parties hereby consent to the issuance of such an injunction and to the ordering of specific performance.

		(f)	
Waiver/Amendments.  Any waiver by any Party to this Agreement of any provision of this Agreement shall not be construed as a waiver of any other provision of this Agreement, nor shall such waiver be construed as a waiver of such provision respecting any future event or circumstance. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by Rock Capital and the Company.

		(g)	
Severability.  Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

 

 

  

Exhibit 10.1 -- Page 3

 

 

  

		(h)	
Costs.  Each Party will bear its own costs and expenses incurred in connection with this Agreement and the transaction contemplated thereby.

		(i)	
Survival of Terms.  All representations, warranties and covenants contained in this Agreement or in any certificates or other instruments delivered by or on behalf of the Parties hereto shall be continuous and survive the execution of this Agreement and the Closing.

		(j)	
Assignment.  This Agreement shall be binding upon the Parties hereto and their respective successors and assigns and shall inure to the benefit of any assignee, subject to the terms and conditions hereof. No Party may assign this Agreement without the prior written consent of the other Parties.

		(a)	
Notices. Notices hereunder shall be given only by personal delivery, registered or certified mail, return receipt requested, overnight courier service, by email, and shall be deemed delivered immediately when personally delivered or sent via email (with return receipt requested and received) or three days following such notice being deposited in the mail or delivered to a courier service, postage or charges prepaid, and properly addressed to the particular Party to whom the notice is to be sent, to the address as set forth below the applicable Party's name on the signature pages hereto.

		(k)	
Headings.  The headings used in this Agree-ment are for convenience only and shall not by themselves determine the interpretation, construction or meaning of this Agreement.

		(l)	
Attorneys' Fees and Costs.  In the event any Party to this Agreement shall be required to initiate legal proceedings to enforce performance of any term or condition of this Agreement, including, but not limited to, the interpretation of any term or provision hereof, the payment of moneys or the enjoining of any action prohibited hereunder, the prevailing Party shall be entitled to recover such sums in addition to any other damages or compensation received, as will reimburse the prevailing Party for reasonable attorneys' fees and court costs incurred on account thereof (including, without limitation, the costs of any appeal) notwithstanding the nature of the claim or cause of action asserted by the prevailing Party.

		(m)	
Further Assurances. Each Party agrees to execute and deliver to the other such additional documents and instruments, and to do and perform such other acts and things, as may be reasonably necessary for effecting the transactions contemplated herein.

		(n)	
Counterparts.  This agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

[Signatures appear on following page]

 

  

Exhibit 10.1 -- Page 4

 

  

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

	 	
New Asia Energy, Inc.

 

	 	
By:

	
/s/ Jose A Capote

	 	
Name:

	
Jose A Capote

	 	
Title:

	
Secretary

	 	 	 
	 	
Address for Notices:

	 	
60 Paya Lebar Road

	 	
12-08 Paya Lebar Square

	 	
Singapore, 409051

	 	 	 
	 	
New Asia Energy, Inc

	 	 	 
	 	
By:

	
/s/ Allister Lim Wee Sing

	 	
Name:

	
Allister Lim Wee Sing

	 	
Title:

	
Director

	 	 	 
	 	
Address for Notices:

	 	
60 Paya Lebar Road

	 	
12-08 Paya Lebar Square

	 	
Singapore, 409051

	 	 	 
	 	 	 
	 	
Rock Capital Ltd.

 

	 	
By:

	
/s/ Lin Kok Peng

	 	
Name:

	
Lin Kok Peng

	 	
Title:

	
Director

	 	 	 
	 	
Address for Notices:

	 	
Room 1408, Tak Shing House,

	 	
Theatre Lane

	 	
20 Des Voeux Road Central Hong Kong

 

  

Exhibit 10.1 -- Page 5

 

Annex A

Additional Advance

Pursuant to Section 1 of the Debt Settlement and Release Agreement entered into as of November 28th , 2016, by and between (i) New Asia Energy, Inc., a Colorado corporation (the "Company"); (ii) Rock Capital Ltd ("Rock Capital"), the Parties hereby acknowledge that an Additional Advance in the amount of $60,000 was made by Rock Capital to the Company between the period of September 30th, 2016 through November 28th, 2016.

Following such Additional Advance, the current Debt is $102,420.

Defined terms used herein shall have the meaning given in the Agreement.

Acknowledged and Agreed as of November 28, 2016.

	 	
New Asia Energy, Inc.

 

	 	
By:

	
/s/ Jose A Capote

	 	
Name:

	
Jose A Capote

	 	
Title:

	
Secretary

	 	 	 
	 	 	 
	 	
New Asia Energy, Inc.

	 	 	 
	 	
By:

	
/s/ Allister Lim Wee Sing

	 	
Name:

	
Allister Lim Wee Sing

	 	
Title:

	
Director

	 	 	 
	 	 	 
	 	
Rock Capital Ltd.

 

	 	
By:

	
/s/ Lin Kok Peng

	 	
Name:

	
Lin Kok Peng

	 	
Title:

	
Director

Exhibit 10.1 -- Page 6

 

 

Annex B

Conversion Election

Pursuant to Section 2(b) of the Debt Settlement entered into as of November 28th, 2016, by and between (i) New Asia Energy, Inc., a Colorado corporation (the "Company"); (ii) Rock Capital Ltd ("Rock Capital")  Rock Capital hereby elects to convert the outstanding Debt, which is currently $102,420 into shares of Common Stock of the Company.

Pursuant to Section 2(b) of the Agreement the conversion will result in 97,542,857 shares of Common Stock being issued to Rock Capital.

Defined terms used herein shall have the meaning given in the Agreement.

Acknowledged and Agreed as of November 28, 2016.

 

	 	
New Asia Energy, Inc.

 

	 	
By:

	
/s/ Jose A Capote

	 	
Name:

	
Jose A Capote

	 	
Title:

	
Secretary

	 	 	 
	 	 	 
	 	
New Asia Energy, Inc

	 	 	 
	 	
By:

	
/s/ Allister Lim Wee Sing

	 	
Name:

	
Allister Lim Wee Sing

	 	
Title:

	
Director

	 	 	 
	 	
Rock Capital Ltd.

 

	 	
By:

	
/s/ Lin Kok Peng

	 	
Name:

	
Lin Kok Peng

	 	
Title:

	
Director

  

 

Exhibit 10.1 -- Page 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}]]