Document:

exh_10-2.htm

Exhibit 10-2

    

     

    CANCELLATION
AGREEMENT

     

     

    This
CANCELLATION AGREEMENT,  dated June 10, 2010 (this “Agreement”),
by and among, Extreme Home Staging, Inc., (“The Company”)
a Nevada Corporation  and Markensie Theresias. (the “Canceling
Party”).

     

     

    BACKGROUND

     

     

    Concurrently
herewith, the Company is entering into a Share Exchange Agreement with Q Lotus,
Inc.  (“QLIs”),
and its sole shareholder (the “Canceling
Party”), pursuant to which the Company will acquire from the Shareholder
all of the issued and outstanding capital stock of  (“QLIs”), in
exchange for 10,000,000 shares of the Company’s common stock (the “Share Exchange
Transaction”).

     

     

    It is a
condition precedent to the consummation of the Share Exchange Transaction that
the Canceling Party enter into this Agreement, which will effectuate the
cancellation of 8,850,000 shares of the common stock, par value $.0001 per
share, of the Company held by the Canceling Party (the “Subject
Shares”). The Canceling Party is entering into this Agreement to, among
other things, induce  (“The Company”)
to enter into the Share Exchange Transaction and the Canceling Party
acknowledges that (“The Company”)
would not consummate the transactions contemplated by the Share Exchange
Transaction unless the transactions contemplated hereby are effectuated in
accordance herewith.

     

     

    AGREEMENT

     

     

    NOW,
THEREFORE, in consideration of the mutual promises herein contained and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

     

    1.   Cancellation of Subject
Shares. The Canceling Party has delivered to the Company for cancellation
stock certificates representing the Subject Shares along with duly executed
medallion guaranteed stock powers covering the Subject Shares (or such other
documents acceptable to the Company’s transfer agent) and hereby irrevocably
instructs the Company and the Company’s transfer agent to cancel the Subject
Shares such that the Subject Shares will no longer be outstanding on the stock
ledger of the Company and such that the Canceling Party shall no longer have any
interest in the Subject Shares whatsoever. The Company shall immediately deliver
to the Company’s transfer agent irrevocable instructions providing for the
cancellation of the Subject Shares.

     

    2. Representations by the
Canceling Party.

     

    (a)  The
Canceling Party owns the Subject Shares, of record and beneficially, free and
clear of all liens, claims, charges, security interests, and encumbrances of any
kind whatsoever. The Canceling Party has sole control over the Subject Shares or
sole discretionary authority over any account in which they are held. Except for
this Agreement, no person has any option or right to purchase or otherwise
acquire the Subject Shares, whether by contract of sale or otherwise, nor is
there a “short position” as to the Subject Shares.

    

    (b)  The
Canceling Party has full right, power and authority to execute, deliver and
perform this Agreement and to carry out the transactions contemplated hereby.
This Agreement has been duly and validly executed and delivered by the Canceling
Party and constitutes a valid, binding obligation of the Canceling Party,
enforceable against it in accordance with its terms (except as such
enforceability may be limited by laws affecting creditor's rights
generally).

     

    3. Further Assurances.
Each party to this Agreement will use his or its best efforts to take all action
and to do all things necessary, proper, or advisable in order to consummate and
make effective the transactions contemplated by this Agreement (including the
execution and delivery of such other documents and agreements as may be
necessary to effectuate the cancellation of the Subject Shares).

     

     

    4. Amendment and Waiver.
Any term, covenant, agreement or condition of this Agreement may be amended,
with the written consent of the Company and the Canceling Party, or compliance
therewith may be waived (either generally or in a particular instance and either
retroactively or prospectively), by one or more substantially concurrent written
instruments signed by the Company and the Canceling Party.

     

    5. Survival of Agreements,
Representations and Warranties, etc. All representations and warranties
contained herein shall survive the execution and delivery of this
Agreement. 

    

    6. Successors and
Assigns. This Agreement shall bind and inure to the benefit of and be
enforceable by the Company and the Canceling Party, and their respective
successors and assigns. 

    

    7.  Governing Law. This
Agreement (including the validity thereof and the rights and obligations of the
parties hereunder and thereunder) and all amendments and supplements hereof and
thereof and all waivers and consents hereunder and thereunder shall be construed
in accordance with and governed by the internal laws of the State of New York
without regard to its conflict of laws rules, except to the extent the laws of
Nevada are mandatorily applicable.

    

    8. Miscellaneous. This
Agreement embodies the entire agreement and understanding between the parties
hereto and supersedes all prior agreements and understandings relating to the
subject matter hereof. In case any provision of this Agreement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby. This
Agreement may be executed in any number of counterparts and by the parties
hereto on separate counterparts but all such counterparts shall together
constitute but one and the same instrument. This Agreement may be reproduced by
any electronic, photographic, photostatic, magnetic, microfilm, microfiche,
microcard, miniature photographic, facsimile or other similar process and the
original thereof may be destroyed. The parties agree that any such reproduction
shall, to the extent permitted by law, be as admissible in evidence as the
original itself in any judicial or administrative proceeding (whether or not the
original is in existence and whether or not the reproduction was made in the
regular course of business) and that any enlargement, facsimile or further
reproduction shall likewise be admissible in evidence. Facsimile execution and
delivery of this Agreement is legal, valid and binding execution and delivery
for all purposes.

    

     

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

     

     

    EXTREME
HOME STAGING, INC.

     

     

    By: /s/ Markensie Theresias
                                 

     

     

    Title:
President and Chief Executive Officer

     

     

    MARKENSIE
THERESIAS, By: /s/     Markensie
Theresias
 Individuallyex4-2.htm

Exhibit 4.2

 

CERTIFICATE OF AMENDMENT

TO

RESTATED CERTIFICATE OF INCORPORATION

OF

NEOMAGIC CORPORATION

(Pursuant to Section 242 of the General Corporation Law of the State of Delaware)

 

NeoMagic Corporation, a corporation organized and existing under the laws of the State of Delaware, hereby certifies as follows:

 

The Board of Directors of the Corporation duly adopted a resolution, pursuant to Section 242 of the General Corporation Law of the State of Delaware, setting forth an amendment to the Restated Certificate of Incorporation of the Corporation and declaring such amendment to be advisable.  The stockholders of the Corporation duly approved such proposed amendment by written consent in accordance with Sections 228 and 242 of the General Corporation Law of the State of Delaware, and written notice of such consent has been given to all stockholders who have not consented in writing to such amendment.  The resolution setting forth the amendment is as follows:

 

RESOLVED:  That the text of the first paragraph of Article FOURTH of the Restated Certificate of Incorporation of the Corporation be, and it hereby is, amended in its entirety to read as follows:

 

“1.           The Corporation is authorized to issue 200,000,000 shares of Common Stock, par value $0.001 per share (the “Common Stock”), and 2,000,000 shares of Preferred Stock, par value $0.001 per share (the “Preferred Stock”).”

 

[Signature Page Follows]

 

  

  

  

 

IN WITNESS WHEREOF, the Corporation has caused this Certificate of Amendment to be signed by its duly authorized President and Chief Executive Officer on this 1st day of June, 2010.

 

	 	NEOMAGIC CORPORATION	 
	 	 	 	 
	
 

	
By: 

	/s/ Syed Zaidi	 
	 	 	Syed Zaidi	 
	 	 	President and Chief Executive Officerex4-1.htm

Exhibit 4.1

 

 

 

THIS CONVERTIBLE SECURED PROMISSORY NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR UNDER ANY SECURITIES LAWS OF ANY STATE.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR ANY SUCH LAW.

 

CONVERTIBLE SECURED PROMISSORY NOTE

(Due: June 13, 2011)

	
$500,000

	
June 14, 2010

Davis, California

 

FOR VALUE RECEIVED, the undersigned, Octus, Inc., a Nevada corporation (the “Company”) promises to pay to the order of  EAM Inc., or permitted assigns (hereinafter, with any subsequent holder, the “Holder”) the principal sum of $500,000, with interest on the unpaid principal from the date hereof at a rate of twelve percent (12.0%) simple interest per annum.  Interest shall be calculated on the basis of the actual number of days elapsed over a 365-day year, shall commence to accrue on the date hereof and shall continue on the outstanding principal until paid in full.

 

1. Interest Payments.  Accrued unpaid interest shall be paid semi-annually, and upon the Maturity Date, with the first payment due six months after the date on which the Note is issued.

 

2. Application of Payments.  All payments of principal and interest shall be in lawful money of the United States of America, except as set forth below in connection with conversion of this Note.  All payments on account of the indebtedness evidenced by this Note shall be applied first to any and all costs, expenses and other charges then owed the Holder by the Company, second, to accrued and unpaid interest, and thereafter to the unpaid principal balance hereof.   All payments so received after demand or acceleration shall be applied in such manner as the Holder may determine in its sole and absolute discretion.

 

3. Maturity Date. Unless this Note has been converted pursuant to the terms of this Note or unless earlier accelerated by the terms of this Note, the principal amount hereof, together with all unpaid accrued interest hereon and all other fees, costs and charges, if any, shall be due and payable on the date which is twelve (12) months from the original date of this Note (the “Maturity Date”).  No payments of principal or interest are required hereunder until the Maturity Date, except as otherwise provided herein.

 

  

1

  

 

4. (a)  Prepayment. Before the Maturity Date, the Company may prepay this Note, in whole or in part, at any time without penalty, upon ten (10) days advance notice to the Holder.  If the Company delivers such a notice to the Holder, then the Holder may elect, within such five-day period, to convert the Note into the Underlying Securities based on the provisions of Section 4(b).

 

(b) Conversion at the Option of the Holder.  At any time commencing ninety (90) days after the date of issuance of this Note and before the Maturity Date or earlier conversion of this Note, the Holder, at Holder’s option and upon five (5) days prior written notice to the Company, may convert in whole or in part the outstanding principal and accrued but unpaid interest of this Note (the amount to be converted referred to as the “Note Amount”) into a number of shares of Common Stock (sometimes referred to as the “Underlying Securities”) determined by the greater of thirty five cents ($0.30) per share or at seventy percent (70%) of the average closing price of the Common Stock on the OTC Bulletin Board (or whatever exchange, market or quotation system the Common Stock is then traded), for the ten (10) trading days ending five (5) days before the conversion date.

 

5. Mechanics of Conversion.  As promptly as practicable after the conversion of this Note, this Note shall be cancelled, and the Company will issue and deliver to the Holder a certificate or certificates representing the full number of securities issuable upon such conversion (and the issuance of such certificate or certificates shall be made without charge to the Holder of the Note for any issuance tax in respect thereof or other cost incurred by Company in connection with such conversion and the related issuance of shares).

 

6. Merger, Sale of Assets, etc.  In the event that Company sells or otherwise disposes of all or substantially all of its assets or is acquired by way of a merger, consolidation, reorganization or other similar transaction or series of transactions (but excluding any equity financing transaction by Company involving issuance of its equity securities to investors primarily for purposes of financing Company’s business) pursuant to which stockholders of Company prior to such acquisition own less than fifty percent (50%) of the surviving or resulting entity, then, the Note shall, immediately before the closing of any such transaction, become due and payable.

 

7. Default.  The Company will be in default if any of the following occurs (each an “Event of Default”): (a) the Company fails to make payment of the principal amount or an interest payment when due and fails to cure the default within ten (10) days of the date of delivery of notice from Holder to the Company of the default; (b) the Company fails in any material respect to comply with or to perform when due any other material term, obligation, covenant, or condition contained in this Note and fails to cure the default within ten (10) days of the date of delivery of notice from Holder to the Company of the default; (c) the Company shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business; or such a receiver or trustee shall otherwise be appointed; and/or (d) bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company and shall not have been dismissed within 60 days of filing.  Upon an Event of Default, Holder may declare the entire unpaid principal and accrued interest amount immediately due and payable, all without further demand, presentment or notice, or grace period, all of which hereby are expressly waived. If Holder prevails in a lawsuit to collect on this Note, the Company will pay Holder's costs and attorneys’ fees in an amount the court finds to be reasonable. Further, the Company will accrue a penalty fee of 1.5% per month on any payment that is in default as defined herein.

 

  

2

  

 

8. Miscellaneous

 

(b) Reservation of Shares.  The Company shall at all times reserve and keep available out of its authorized but unissued shares sufficient shares to effect the conversion of the Note.

 

(c) Successors and Assigns.  Subject to the restrictions on transfer set forth in this Note, the rights and obligations of the Company and the Holder of this Note shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

(d) Assignment.  This Note shall not be assignable by the Holder without prior written consent of the Company.

 

(e) Waivers.  The terms of this Note shall be construed in accordance with the laws of the State of California applicable to contracts entered into in California by California residents and wholly to be performed within California.

 

(f) Amendment or Waiver.    Any term of this Note may be amended or waived with the written consent of the Company and Holder.  Any amendment or waiver effected in accordance with this Section shall be binding upon Holder at the time outstanding, each future Holder of any Note and the Company.

 

(g) Notices. Any notice required or permitted under this Note shall be given in writing and shall be deemed effectively given (i) at the time of personal delivery, if delivery is in person; (ii) one (1) business day after deposit with an express overnight courier for United States deliveries, or two (2) business days after such deposit for deliveries outside of the United States, with proof of delivery from the courier requested; (iii) three (3) business days after deposit in the United States mail by certified mail (return receipt requested) for United States deliveries when addressed to the party to be notified; or (iv) one (1) business day after transmission by telecopier with confirmation of successful transmission.  Notices shall be delivered (i) if to the Holder, to the address and contact information for Holder set forth in the Company’s books and records, and (ii) if to the Company, to 803 Second Street, Suite 303, Davis, CA 95616, attention: Chief Executive Officer, or at such other address as any party may designate by giving written notice to the other party.

 

(h) Severability.  In the event any one or more of the provisions contained in this Note shall, for any reason, be held to be invalid, illegal, or unenforceable in whole or in part or in any respect, or in the event any one or more of the provisions of this Note operate or would prospectively operate to invalidate this Note, such invalidity, illegality, or unenforceability shall not affect any other provision of this Note.  In such instance, this Note shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein and the remaining provisions of this Note shall remain operative and in full force and effect and in no way shall be affected, prejudiced or disturbed thereby.

 

  

3

  

 

(i) Delays or Omissions.  No delay or omission on the part of the Holder in exercising any right under this Note shall operate as a waiver of such right or of any other right of the Holder, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future occasion. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

(j) Headings.  The headings in this Note are for convenience of reference only and shall not define or limit any terms or provisions hereof.

 

(k) Entire Agreement. This Note constitutes the entire agreement between the parties, and no party shall be liable or bound to any other party in any manner by any warranties, representations, or covenants except as specifically set forth herein or therein.

 

(l) Adjustment for Stock Splits, Stock Dividends, Recapitalizations, etc.  The number of shares of stock issuable upon conversion of this Note shall be proportionally adjusted to reflect any stock dividend, stock split, reverse stock split, reclassification, recapitalization or other similar event affecting the number of outstanding shares of common stock.

 

 

IN WITNESS WHEREOF, Company has caused this Convertible Promissory Note to be signed in its name as of the date first above written.

 

Company: Octus, Inc.

By: ____________________________

Name: Chris Soderquist

Title: Chief Executive Officer

Agreed and Accepted:

HOLDER: EAM Inc,

 

By: Gregory Galanis

Title: Chief Executive Officer and Secretary

 

 

4

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