Document:

Exhibit 10.17

AMENDMENT NO. 11

 

TO NOTE EXCHANGE AND OPTION AGREEMENT

 

This AMENDMENT NO. 10 to the NOTE EXCHANGE AND OPTION AGREEMENT is entered into as of December 31, 2015 (this “Amendment”), by and among KEYWIN HOLDINGS LIMITED, a British Virgin Islands company (“Keywin”), and NETWORK CN INC., a Delaware corporation (the “Company”).  Each of the parties hereto is referred to as a “Party” and collectively as the “Parties.”  Capitalized terms used, but not otherwise defined, herein have the meanings ascribed to such terms in the Original Agreement (as defined below).

 

BACKGROUND

 

The Parties entered into a Note Exchange and Option Agreement, dated as of April 2, 2009, as amended by Amendment No. 1 to Note Exchange and Option Agreement, dated as of July 1, 2009, Amendment No. 2 to Note Exchange and Option Agreement, dated as of September 30, 2009, Amendment No. 3 to Note Exchange and Option Agreement, dated as of January 1, 2010, Amendment No. 4 to Note Exchange and Option Agreement, dated as of September 30, 2010, Amendment No. 5 to Note Exchange and Option Agreement, dated as of June 1, 2011, Amendment No. 6 to Note Exchange and Option Agreement, dated as of December 30, 2011, Amendment No. 7 to Note Exchange and Option Agreement, dated as of June 28, 2012, Amendment No. 8 to Note Exchange and Option Agreement, dated as of December 28, 2012,Amendment No. 9 to Note Exchange and Option Agreement, dated as of December 31, 2013 and Amendment No. 10 to Note Exchange and Option Agreement, dated as of December 12, 2014 (together, the “Original Agreement”), pursuant to which the Company (a) issued 61,407,093 shares of its common stock, par value $0.001 per share in exchange for certain notes payable by the Company held by Keywin, (b) agreed to grant Keywin an option (the “Option”) to purchase from the Company an aggregate of 1,637,522 shares of the Common Stock for an aggregate purchase price of $2,000,000, exercisable within 105 months after April 2, 2009 and (c) the Company shall have the right, at its sole discretion, to terminate the Option by providing Keywin with thirty (30) days’ advance written notice of such termination.  The Parties now desire to enter into this Amendment to modify the terms of the Original Agreement as more specifically set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises of the Parties, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1.          Amendment to Exercise Period and Exercise Price: Subsection (a) of Section 2, of the Original Agreement is deleted in its entirety and in lieu thereof the following provision is inserted:

 

(a)          For a one hundred and five (105) month period commencing on the Closing Date (the “Exercise Period”), the Noteholder shall have the right to purchase from the Company an aggregate of 2,020,202 shares of the Common Stock for an aggregate purchase price of $2,000,000 (the “Purchase Price”).  The Option may be exercised by the Noteholder at any time during the Exercise Period by giving written notice to the Company.

 

2.          Agreement.  In all other respects, the Original Agreement shall remain in full force and effect.

 

3.          Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 

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

 

	 	
NETWORK CN INC.

	 
	 	 	 
	 	 	 
	 	
By

	 	 
	 	
Name: Shirley Cheng

	 
	 	
Title: Director and Chief Financial Officer

	 
	 	 	 
	 	 	 
	 	 	 
	 	
KEYWIN HOLDINGS LIMITED

	 
	 	 	 
	 	 	 
	 	
By

	 	 
	 	
Name: Earnest Leung

	 
	 	
Title: DirectorEXHIBIT 10.1 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS.  THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH NOTE UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES STATUTE OR SOME OTHER EXCEPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

	
February 3, 2017

	
 

	
$165,000.00

	
821 NW 57th Place

	
 

	
 

	Fort Lauderdale, Florida 33309	
 

	
 

                                                                                              

PROMISSORY NOTE

FOR VALUE RECEIVED, the undersigned, Enviro Voraxial Technology, Inc., an Idaho corporation (the "Company"), having a business address at 821 NW 57th Place, Fort Lauderdale, Florida 33309, hereby promises to pay to the order of Brian Uhlmer (the "Holder"), the principal and interest amount of One Hundred Sixty Five Thousand Dollars ($165,000.00) by May 31, 2017 (the "Maturity Date").

1.          Term.  The term for this Agreement shall be for a period from the date of execution until note due date of May 31, 2017.  The term may be extended on a monthly basis if the SLB transaction is delayed.

2.          Proceeds. Holder will distribute net proceeds of One Hundred Fifty Thousand Dollars ($150,000) to the Company from gross loan value of One Hundred Sixty Five Thousand Dollars ($165,000) total loan amount.

3.          Interest.  The Company shall pay interest to the Holder on the principal balance borrowed at the rate of two and five tenths percent (2.5%) per month if the term is extended beyond initial maturity date. The note is issued at an original issuer discount of Fifteen Thousand Dollars ($15,000). 

4.          Optional Prepayment; Mandatory Prepayment.  This Note may be prepaid at any time at the option of the Company.

5.          Stock Issuance.  Upon receipt of the loan, Holder shall receive fifty thousand (50,000) shares of Enviro Voraxial Tehcnology, Inc. common shares.

6.          Notices.  Any notice, other communication or payment required or permitted hereunder shall be in either email or writing and shall be deemed to have been given if delivered to the appropriate address as stated below:

 

	
To Holder 

	
 

	
To Company

	Brian Uhlmer	
 

	
Enviro Voraxial Technology, Inc. 

	
2306 Columbia Circle 

	
 

	
821 NW 57th Place

	League City, TX 77573  	 	Fort Lauderdale, FL 33309 
	Phone: 832-738-7377 	 	Phone: 201-637-3218 
	Email: briuhlmer@hotmail.com  	 	Email: Jdibella@evtn.com 

7.          Event of Default.

(a)          General.  The Company shall be in default under this Note if an Event of Default (as defined below) occurs.  Upon an Event of Default, the principal amount then outstanding of, and the accrued interest on, if any, this Note shall be immediately due and payable.

(b)          Definition.  For purposes of this Note, an "Event of Default" is any of the following occurrences:

(i)          The Company shall fail to pay the outstanding principal and all accrued and unpaid interest under this Note on the Maturity Date; or

(ii)          If the Company shall (i) file, or consent by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, (ii) make an assignment for the benefit of its creditors, (iii) consent to the appointment of a custodian, receiver, trustee (or other officer with similar powers) of itself or of any substantial part of its property, (iv) be adjudicated insolvent or (v) take corporate action for the purpose of any of the foregoing; or

(iii)          If proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company or of all or a substantial part of the property thereof, or an involuntary case or other proceeding seeking liquidation, reorganization or other relief with respect to the Company or the debts thereof under any bankruptcy insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within sixty (60) days of commencement; or

(iv)          Any failure to perform or default in the performance by the Company that continues after applicable grace and cure periods, if any, under any covenant, condition or agreement contained in the Security Agreement.

8.          Remedies on Default, etc.  In case Default shall occur and be continuing, the Holder shall receive all revenues from the Company within 30 days of receipt of payments from customers until such time the principle and interest are paid in full.

9.          Waivers and Amendments.  The Company hereby waives presentment, demand for performance, notice of non-performance, protest, notice of protest and notice of dishonor.  No delay on the part of the Holder in exercising any right hereunder shall operate as a waiver of such right or any other right.  Any term of this Note may be amended or waived with the written consent of the Company and the Holder.

 

10.          Governing Law.  This Note is being delivered in, and shall be governed by and construed in accordance with, the laws of the State of Florida, without regard to conflicts of law provisions thereof.  The state and federal courts of Florida have jurisdiction; and venue for mediation, litigation and all other proceedings shall be located in Broward County, Florida.

	 	
COMPANY: Enviro Voraxial Technology, Inc.

	 	 
	 	 
	 	
By:  /s/ John A. Di Bella           

	 	
Name: John A. Di Bella

	 	
Its:       CEOEX-10.1

 EXHIBIT (10.1) 

Letter of Default Waiver dated April 11, 2017 by and among Skyline Corporation, Homette Corporation, Layton Homes Corp., Skyline
Homes Inc., and First Business Capital Corp. 
 April 10, 2017     

Mr. Jon Pilarski 
 Skyline Corporation 

2520 Bypass Rd. 
 Elkhart, IN 46514 

Dear Mr. Pilarski: 
 This letter is written
on behalf of First Business Capital Corp. (“FBCC”), a Wisconsin corporation, as the Lender under that certain Loan and Security Agreement dated March 20, 2015, as amended, wherein Skyline Corporation, an Indiana corporation, and its
wholly-owned subsidiaries, Homette Corporation and Layton Homes Corp., each an Indiana corporation, and Skyline Homes, Inc., a California corporation, together are the “Debtor”. Except as otherwise provided herein, capitalized terms have
the meaning given them in the Loan Agreement. 
 According to Debtor’s internally prepared financial statements for the fiscal period
ended February 28, 2017, Debtor was in violation of the covenants set forth in Sections 7.24 and 7.25 of the Loan Agreement as follows: 
  

									
	 Covenant
	  	Required	 	  	Actual	 
	 Section 7.24 Net Worth as of 2/28/2017
	  	$	23,383,000	 	  	$	22,942,000	 
			
	 Section 7.25 Net Earnings for the fiscal year-to-date period ending 2/28/2017
	  	($	1,750,000	) 	  	($	2,297,500	) 

 The failure by Debtor to comply with the foregoing provisions of the Loan Agreement constitutes Events of Default pursuant to
Section 9.2 of the Loan Agreement. Debtor has requested FBCC waive such Events of Default. 
 Upon the terms and subject to the
conditions set forth in this letter, FBCC hereby waives the foregoing Events of Default. This waiver shall be effective only in this specific instance and for the specific purpose for which it is given, and this waiver shall not entitle Debtor to
any other or further waiver in any similar or other circumstances. Neither this letter, nor any other communication between FBCC and Debtor, shall be deemed to be a waiver, modification, or release of any other Event of Default, whether such default
arose or arises before, on or after the date hereof and whether or not known to FBCC. Nothing in this letter shall be deemed to constitute a “course of dealing” or a waiver of any rights or remedies, or restrict FBCC in taking any action
or remedies afforded FBCC in the Loan Agreement or any other document or as allowed by law in the event any further Event of Default occurs hereafter. 

In consideration of FBCC’s agreements herein, Debtor agrees to pay to Lender a fully-earned
non-refundable accommodation fee in the amount of Fifty Thousand Dollars ($50,000.00). Debtor hereby agrees that at Lender’s sole option, and without further authorization by Debtor, such amount may be
debited to Debtor’s loan account ledger for Credit Facility A. 

 Except as provided herein, the Loan Agreement and all other loan documents related thereto shall
remain in full force and effect in accordance with their terms. Please acknowledge your agreement to the terms of this letter by signing below and returning to my attention. If you should have any questions with regard to the above matter, please do
not hesitate to contact me at 262/792-7142. 
 Sincerely, 

 

			
	FIRST BUSINESS CAPITAL CORP.
	
	/s/ James G. Tepp
	James G. Tepp
	Vice President
	
	 Acknowledged and Agreed as of
 the
11th day of April, 2017.

	
	SKYLINE CORPORATION
		
	By:	 	 /s/ Jon S. Pilarski

		 	Jon S. Pilarski, Vice President,
		 	 Finance & Treasurer, Chief Financial

Officer

	
	HOMETTE CORPORATION
		
	By:	 	 /s/ Jon S. Pilarski

		 	 Jon S. Pilarski, Vice President and

Treasurer

	
	LAYTON HOMES CORP.
		
	By:	 	 /s/ Jon S. Pilarski

		 	 Jon S. Pilarski, Vice President and

Treasurer

	
	SKYLINE HOMES, INC.
		
	By:	 	 /s/ Jon S. Pilarski

		 	 Jon S. Pilarski, Vice President and

Treasurer

		
	cc:	 	Peter J. Lowney

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