Document:

Unassociated Document

    Exhibit
      10.1

     

    

    SEPARATION
      AGREEMENT AND RELEASE

    

    This
      Separation Agreement and Release (the "Agreement") is entered into between
      Nana
      Yalley, an individual and Winsonic Digital Media Group, Ltd., a Nevada
      corporation with offices at 101 Marietta Street, Suite 2600, Atlanta, GA 30303
      (the “Company”).

     

    In
      consideration for the parties' execution of this Agreement and the promises
      and
      covenants contained herein, Yalley and the Company hereby agree as
      follows:

     

    1.  Yalley
      hereby agrees to resign as [Executive Vice President and member of the Board
      of
      Directors of the Company] effective as of December 9, 2005 (the "Separation
      Date"). It is agreed that the binding employment offer dated October 8, 2004
      and
      any and all other agreements are hereby terminated and are null and void and
      of
      no force and effect.

     

    2.  As
      consideration for Yalley entering into this Agreement and complying with its
      terms, the Company will issue to Yalley the following securities: 

     

    a)
      Options to purchase 500,000 (five hundred thousand) shares of common stock
      of
      the Company, which are vested and immediately exercisable for (5) five years
      from the date of grant at $1 per share.

     

    b)
      $270,000 worth of restricted common stock of the Company equal to Yalley's
      base
      salary, at the closing bid price of the Company’s Common Stock on the date prior
      to the execution of this Agreement. 

     

    c)
      An
      identical number of restricted shares of Common Stock of the Company, if any,
      that may be issued to Caesar Collazo in settlement of all litigation between
      the
      Company and Caesar Collazo (the “Collazo Litigation”). 

     

    3.
      All of
      the above certificates shall bear a restrictive legend under the Securities
      Act
      of 1933, as amended, but shall otherwise not be subject to any restrictions
      and
      encumbrances, now or in the future. The Company shall Indemnify Yalley against
      any and all claims relating to transferability of the shares and shall not
      seek
      to prohibit, impede, obstruct or pursue remedies from the Courts for any reason
      to prevent Yalley from exercising his rights to sell, encumber, pledge, or
      otherwise reap the benefits from these and all other previously issued Shares
      in
      Yalley's possession. Furthermore, all of the above described shares of common
      stock shall be registered by the Company on the next available registration
      statement.

     

    4.  The
      Company hereby releases and forever discharges, waives, and gives up any and
      all
      claims and rights the Company had, has, or may have against Yalley, and against
      all who succeed Yalley’s rights and responsibilities, including but not limited
      to, Yalley’s successors, heirs, and executors of their estates. This Release
      applies to any and all claims or rights of which the Company is not aware and
      to
      any and all claims not specifically mentioned in this Release.

     

    5.  Yalley
      hereby releases and forever discharges, waives, and gives up any and all claims,
      liabilities and rights of which Yalley is aware Yalley had, has, or may have
      against the Company, and its affiliated or related partnerships, limited
      liability companies and corporations and their respective past and present
      partners, managing directors, members, stockholders, directors, officers,
      employees and agents (collectively, the "Releasees") which directly or
      indirectly result from, arise from or out of, or pertain to anything which
      has
      happened up to now exclusive of the Collazo Litigation. 

     

    6.  The
      Company agrees to indemnify, exclude, and hold harmless Yalley as party to
      any
      actual or threatened action, suit, or proceeding, whether civil, criminal,
      administrative or investigative, by reason of the fact that he was a director
      or
      officer of the Corporation or, while a director or officer, he was serving
      at
      the request of the Corporation as a director, trustee, officer, employee or
      agent of another Corporation, partnership, joint venture, trust or other
      enterprise, whether the basis of such proceeding is alleged action in an
      official capacity as a director, trustee, officer, employee or agent or in
      any
      other capacity while serving as a director, trustee, officer, employee or agent.
      Yalley shall be indemnified and held harmless by the Corporation, to the full
      extent permitted by applicable law, against all expense, liability and loss
      (including attorney's fees, judgments, fines, ERISA excise taxes or penalties
      and amounts to be paid in settlement) actually and reasonably incurred or
      suffered by any person, group of people, including past and present shareholders
      in connection therewith, and such indemnification shall continue even after
      Yalley has ceased to be a director, officer, or employee and shall inure to
      the
      benefit of Yalley's heirs, executors and administrators. The right to
      indemnification conferred in this Section shall include Yalley's right to be
      paid by the Corporation, the expenses incurred in defending any law suits and/or
      proceedings involving past and present shareholders of Media and
      Entertainment.Com Inc., and Winsonic Digital Media Group, Ltd. (“WDMG”), brought
      against Yalley with regards to any and all matters of operations including
      Board
      decisions and oversight, while serving in his official capacity as a director,
      trustee, officer, or employee of Media and Entertainment.Com Inc, and WDMG,
      in
      advance of its final disposition in a court of competent jurisdiction, as long
      as the Corporation is notified in writing of any pending Proceeding . At which
      time the Corporation shall pay said expenses prior to 30 days after receipt
      of a
      request for such advancement accompanied by an Undertaking.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    For
      purposes of this Section:

     

    (i)
      a
      "Proceeding" is an action, suit or proceeding, whether civil, administrative
      or
      investigative, and any appeal therefrom;

     

    If
      expenses pursuant to the aforementioned has not been promptly advanced after
      a
      written request for such advancement accompanied by an Undertaking has been
      received by the Corporation, Yalley may at any time thereafter bring suit
      against the Corporation to recover any unpaid amounts or the advancement of
      expenses.

    

    7.  This
      Agreement, its terms and the negotiations leading up to the Agreement's
      execution are confidential and both Yalley and the Company agree that, except
      as
      required by the federal securities laws or other laws, or to enforce this
      Agreement, Yalley and the Company will not disclose any such information to
      any
      third party except for financial advisors, or attorneys, all of whom shall
      agree
      to maintain the confidentiality of this Agreement, except as required by law
      or
      to enforce this Agreement.

     

    Both
      Yalley and the Company further agree that they will not make or otherwise
      publish any statements that in any way disparage, or otherwise reflect adversely
      on the other, to any person or entity either orally or in writing. The Company
      agrees that in response to inquiries about Yalley from third parties, it will
      only verify dates of employment, title and salary.

     

    8.  This
      Agreement fully supersedes any and all prior agreements, representations or
      understandings, written or oral between the parties, including but not limited
      to, the subject matter of this Agreement or any related employment matter.
      This
      Agreement may only be amended by a writing signed by the parties to this
      Agreement.

     

    9.  Yalley
      shall have a period of seven (7) calendar days following the date of the full
      execution of this Agreement in which Yalley may revoke this Agreement (the
      "Revocation Period"). Any revocation within this Revocation Period must be
      submitted in writing, to Winston Johnson, CEO, and must state, “I hereby revoke
      my acceptance of my Separation Agreement and Release." The revocation must
      be
      personally delivered or mailed to Winston Johnson and received by him prior
      to
      the expiration of the Revocation Period. If the last day of the Revocation
      Period is a Saturday, Sunday or legal holiday in Nevada, then the Revocation
      Period shall not expire until the next following day which is not a Saturday,
      Sunday or legal holiday. 

     

    10.  The
      Company agrees to immediately forward Yalley’s option to purchase 500,000 common
      Stock, utilizing an overnight carrier for delivery, and to provide the Company’s
      transfer agent with irrevocable instructions to issue an aggregate of 771,429
      shares of restricted Common Stock as per Section 2 above.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    11.  Governing
      Law. This Agreement is made and entered into in the State of Georgia and shall
      be interpreted, enforced and governed under the laws of the State of
      Georgia.

     

    12.  Severability.
      Should any clause or provision of this Agreement be declared or be determined
      by
      any court to be illegal or invalid, the validity of the remaining clauses shall
      not be affected. 

     

    13.  This
      Agreement may be executed by the parties in duplicate so that each party may
      hold a duplicate original.

    

     

    PLEASE
      READ CAREFULLY. THIS AGREEMENT IS 3 PAGES IN LENGTH AND INCLUDES A RELEASE
      OF
      ALL KNOWN AND UNKNOWN CLAIMS.

     

    

    Winsonic
      Digital Media Group, Ltd.

    

    

    
      	
              /s/
                Winston Johnson

            	 	
              December
                9, 2005

            
	
              By:
                Winston
                Johnson

            	
               

            	
              Date
                of Execution

            
	
              Its:
                CEO

            	
               

            	 
	 	 	 
	 	 	 
	
              /s/
                Nana Yalley

            	 	
              December
                9, 2005

            
	
              Nana
                Yalley

            	 	
              Date
                of ExecutionExhibit 10.1

                         NINTH AMENDMENT TO AMENDED AND
                            RESTATED CREDIT AGREEMENT

     THIS NINTH  AMENDMENT  TO AMENDED AND  RESTATED  CREDIT  AGREEMENT  ("Ninth
Amendment") is made as of the 20th day of July, 2006, by and between CULP, INC.,
a North  Carolina  corporation  (together  with  its  successors  and  permitted
assigns,  the "Borrower")  and WACHOVIA BANK,  NATIONAL  ASSOCIATION  (formerly,
Wachovia Bank,  N.A.), a national  banking  association,  as Agent and as a Bank
(together with its endorsees, successors and assigns, the "Bank").

                                   BACKGROUND
                                   ----------

     The  Borrower  and the Bank  entered  into an Amended and  Restated  Credit
Agreement,  dated as of August  23,  2002,  as amended  by Second  Amendment  to
Amended and Restated Credit Agreement (the "Second Amendment"), dated as of June
3, 2003, by Third Amendment to Amended and Restated Credit Agreement (the "Third
Amendment"),  dated as of August 23,  2004,  by Fourth  Amendment to Amended and
Restated Credit Agreement ("Fourth Amendment"), dated as of December 7, 2004, by
Fifth Amendment to Amended and Restated  Credit  Agreement  ("Fifth  Amendment")
dated as of February 18, 2005, by Sixth Amendment to Amended and Restated Credit
Agreement ("Sixth Amendment"), dated as of August 30, 2005, by Seventh Amendment
to Amended and Restated  Credit  Agreement  ("Seventh  Amendment"),  dated as of
December  7, 2005,  and by Eighth  Amendment  to  Amended  and  Restated  Credit
Agreement  ("Eighth  Amendment"),  dated  as  of  January  29,  2006  (it  being
acknowledged  by the parties hereto that the proposed First Amendment to Amended
and Restated Credit  Agreement,  which had been under  discussion in March 2003,
was never executed by the parties and is of no force or effect;  otherwise, such
agreement,  as  amended  by  the  Second  Amendment,  Third  Amendment,   Fourth
Amendment,  Fifth  Amendment,  Sixth  Amendment,  Seventh  Amendment  and Eighth
Amendment,  and as it may be  further  amended,  restated,  supplemented  and/or
modified,  shall be referred to herein as the  "Credit  Agreement").  Terms used
herein  and not herein  defined  shall  have the  meanings  given to them in the
Credit Agreement.

     The Borrower has now requested  additional  amendments to the provisions of
the Credit  Agreement,  which the Bank is willing to accommodate  subject to the
terms, provisions and conditions set forth in this Seventh Amendment.

     NOW,  THEREFORE,  in  consideration  of the  premises  and  other  good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the Borrower and the Bank hereby agree as follows:

     1.   Amendments to Credit Agreement. The Credit Agreement is hereby amended
as follows:

<PAGE>

     (a)  The  following  definition  in  Section  1.01 is  hereby  amended  and
restated in its entirety to read as follows:

          "Termination  Date" means  whichever is  applicable  of (i) August 31,
     2007, (ii) the date the Commitments are terminated pursuant to Section 6.01
     following  the  occurrence  of an Event of  Default,  or (iii) the date the
     Borrower terminates the Commitments entirely pursuant to Section 2.08.

     (b)  Section 5.24 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

          "Section 5.24 Capital Expenditures. Aggregate Capital Expenditures for
     any Fiscal Year will not exceed $2,500,000.00."

     (c)  Section 5.26 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

          "Section 5.26 Liquidity  Requirement.  The Borrower will maintain with
     the  Bank  at  all  times  collected  deposit  balances  of not  less  than
     $2,000,000 (none of which shall have been borrowed hereunder).

     (d)  Section 5.27 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

          "Section  5.27.  Minimum  EBITDA.  EBITDA,  for the  following  Fiscal
     Quarters of Fiscal Year 2006 and Fiscal Year 2007 shall equal or exceed the
     following amounts:

     Fiscal Quarter Ending July 30, 2006                  $10,000,000
     Fiscal Quarter Ending October 29, 2006               $10,000,000
     Fiscal Quarter Ending January 28, 2007               $10,000,000
     Fiscal Quarter Ending April 29, 2007                 $11,000,000"

     2.   Further  Assurances.  The  Borrower  will  execute  such  confirmatory
instruments,  if any,  with  respect  to the  Credit  Agreement  and this  Ninth
Amendment as the Bank may reasonably request.

     3.   Ratification  by Borrower.  The Borrower  ratifies and confirms all of
its representations,  warranties,  covenants,  liabilities and obligations under
the Credit Agreement (except as expressly  modified by this Ninth Amendment) and
agrees  that:  (i) except as  expressly  modified by this Ninth  Amendment,  the
Credit Agreement continues in full force and effect as if set forth specifically
herein; and (ii) the Borrower has no right of setoff, counterclaim or defense to
payment of its obligations under the Credit Agreement. The Borrower and the Bank
agree  that this Ninth  Amendment  shall not be  construed  as an  agreement  to
extinguish the Borrower's  obligations  under the Credit  Agreement or the Notes

                                       -2-

<PAGE>

and shall not constitute a novation as to the  obligations of the Borrower under
the Credit Agreement or the Notes. The Bank hereby expressly reserves all rights
and remedies it may have against all parties who may be or may hereafter  become
secondarily  liable  for the  repayment  of the  obligations  under  the  Credit
Agreement or the Notes.

     4.   Amendments.  This Ninth Amendment may not itself be amended,  changed,
modified,  altered,  or  terminated  without in each  instance the prior written
consent of the Bank.  This Ninth Amendment shall be construed in accordance with
and governed by the laws of the State of North Carolina.

     5.   Counterparts.  This Ninth  Amendment  may be executed in any number of
counterparts,  each of which shall be deemed to be an original and all of which,
taken together, shall constitute one and the same agreement.

     6.   Modification  and Extension Fee. The Borrower shall pay to the Bank on
the date this Ninth Amendment is executed,  an amendment and extension fee equal
to $10,000.00, which fee, once paid, shall be fully earned and non-refundable.

     7.   Bank's  Expenses.  In  accordance  with  Section  9.03  of the  Credit
Agreement,  Borrower  hereby  acknowledges  and  agrees  to pay  all  reasonable
out-of-pocket  expenses  incurred by the Bank in connection with the preparation
of this Ninth Amendment,  including  without  limitation  reasonable  attorneys'
fees.

                            [Signature Page Follows]

                                       -3-

<PAGE>

     IN WITNESS WHEREOF,  this Ninth Amendment has been duly executed under seal
by Borrower and Bank as of the day and year first above written.

                                   BORROWER:

                                   CULP, INC.

                                   By:    /s/ Kenneth R. Bowling
                                   Name:  Kenneth R Bowling
                                   Title: Vice President - Finance, Treasurer

                                   BANK:

                                   WACHOVIA BANK, NATIONAL ASSOCIATION,
                                   as Agent and as Bank

                                   By:    /s/ Matthew M. Rankin
                                   Name:  Matthew M. Rankin
                                   Title: Vice President

                                       -4-

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