Document:

ex10-9.htm

Exhibit 10.09

 

RELEASE

This RELEASE (this "Release") is granted effective as of the ____ day of ________________, 2012 (the "Effective Date") by CAA Liquidation, LLC (fka Chattanooga Auto Auction Limited Liability Company) ("CAA") in favor of each of Acacia Automotive, Inc., a Texas corporation ("AA"), and Acacia Chattanooga Vehicle Auction, Inc., a Tennessee corporation ("AC").

Background Information

A. Reference is hereby made to that certain Settlement Agreement and Release (the "Settlement Agreement") dated February ____, 2012 (the "Settlement Date") by and among Alexis Ann Jacobs, Keith Whann, CAA, Auction Venture Limited Liability Company, David Bynum, Tony Moorby, AA, AC, and Steven L. Sample.  Capitalized terms used herein but not otherwise defined shall have the meanings ascribed to such terms in the Settlement Agreement.

B. This Release is granted by CAA pursuant to, and as required by, paragraph 6 of the Settlement Agreement.

C. CAA expressly and irrevocably acknowledges and agrees that its agreement to give this Release was a material inducement for each of AA and AC to enter into the Settlement Agreement and that neither AA nor AC would have entered into the Settlement Agreement but for CAA’s agreement to give this Release as provided for in the Settlement Agreement.

Provisions

NOW THEREFORE, in consideration of the foregoing Background Information and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, CAA, intending to be legally bound, hereby agrees as follows:

1. Terminations and Releases.  CAA, by and on behalf of itself and its respective predecessors, successors and assigns, hereby (a) terminates the Line of Credit, the Loan Agreement, the Loan Note and the Security Agreement and any rights of CAA thereunder and fully, finally and forever releases and discharges the obligations of AC under the Line of Credit, the Loan Agreement, the Loan Note and the Security Agreement, and (ii) terminates the Stock Pledge and any rights of CAA thereunder and fully, finally and forever releases and discharges the obligations of AA under the Stock Pledge.

2. Covenant Not to Sue.  CAA hereby agrees, on behalf of itself, and its affiliates, successors and assigns, not to initiate, prosecute or in any way aid in the initiation or prosecution of any claim or cause of action covered by the releases set forth in Section 1 against either AC or AA, or their respective shareholders, officers, directors, managers, members, employees, agents, representatives, affiliates, successors or assigns.

3. Nondisparagement.  Each of the parties agrees that it will not in any manner disparage, defame, degrade or ridicule any other party in their future business or social relations with others or with each other.

4. Acknowledgements.  CAA ACKNOWLEDGES THAT IT HAS CAREFULLY READ THIS RELEASE, THAT IT IS FULLY SATISFIED WITH ALL OF ITS TERMS, THAT IT HAS HAD ADEQUATE TIME TO REVIEW AND CONSIDER THIS RELEASE AND TO CONSULT WITH ITS LEGAL COUNSEL WITH RESPECT THERETO, AND THAT IT HAS ENTERED INTO THIS RELEASE VOLUNTARILY AND OF ITS OWN FREE WILL, AND AGREES TO ALL PROVISIONS CONTAINED HEREIN.  IN ADDITION, CAA ACKNOWLEDGES THAT IN ENTERING INTO THIS RELEASE, IT IS NOT RELYING ON ANY REPRESENTATION, FACTUAL MATTER, PROMISE OR COMMITMENT EXCEPT AS EXPRESSLY SET FORTH IN THIS RELEASE.

 

  

  

  

5. Indemnification.  CAA shall indemnify and hold each of AC and AA harmless from and against any loss, liability, damage or expense, including reasonable attorneys’ fees, that AC or AA may incur by reason of any breach of this Release.

6. Entire Agreement.  This Release, the Settlement Agreement and the exhibits attached to the Settlement Agreement contain the entire agreement of the parties hereto and supersedes all prior or contemporaneous agreements and understandings, oral or written, between the parties hereto with respect to the subject matter hereof.

7. Binding Effect. This Release shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and permitted assigns.  This Release may not be assigned, by operation of law or otherwise, by CAA without the prior written consent of each of AC and AA.

8. Further Acts.  Consistent with the terms and conditions of this Release, CAA shall execute and deliver all instruments, certificates and other documents and shall perform all other acts which either AC or AA may reasonably request in order to carry out this Release and the transactions contemplated hereby.

9. Governing Law and Jurisdiction.  This Release shall be construed, governed by and enforced in accordance with the internal laws of the State of Ohio, without giving effect to the principles of comity or conflicts of laws thereof.  CAA agrees and consents that any legal action, suit or proceeding seeking to enforce any provision of this Release shall be instituted and adjudicated solely and exclusively in the courts of the State of Ohio in Franklin County, or in the United States District Court for the Southern District of Ohio, Eastern Division and CAA agrees that venue will be proper in such courts and waives any objection which any of them have now or hereafter to the venue of any such suit, action or proceeding in such courts, and CAA hereby irrevocably consents and agrees to the jurisdiction of said courts in any such suit, action or proceeding.

10. Specific Performance.  CAA, AC and AA agree that irreparable damage would occur in the event that any of the provisions of this Release were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that AC and AA shall be entitled to equitable (including injunctive) relief to prevent breaches of this Release and to enforce specifically the terms and provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other remedy to which they are entitled at law or in equity.

11. Counterparts and Electronic Signatures.  This Release 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 Release.  The counterparts of this Release may be executed and delivered by facsimile or other electronic signature by any of the parties to any other party and the receiving party may rely on the receipt of such document so executed and delivered by facsimile or other electronic means as if the original had been received.

 

  

  

  

 

IN WITNESS WHEREOF, CAA has caused this Release to be executed by its duly authorized representative as of the Effective Date.

	
CAA:

 

CAA LIQUIDATION, LLC (FKA CHATTANOOGA AUTO AUCTION LIMITED LIABILITY COMPANY),

  an Ohio limited liability company

 

 

  By: _________________________________

         Keith E. Whann, Vice President

	  

Acceptance by AC and AA

Each of the undersigned hereby accepts the foregoing Release:

	
AC:

 

ACACIA CHATTANOOGA VEHICLE AUCTION, INC.,

  a Tennessee corporation

 

  By: _________________________________

         Keith E. Whann, President

	
AA:

 

ACACIA AUTOMOTIVE, INC.,

  a Texas corporation

 

 

  By: /s/ Steven L. Sample                                    

         Steven L. Sample, President and CEOex10-10.htm

EXHIBIT 10.10

FORM OF 8-K

On February _____, 2012, Acacia Automotive, Inc. (“the Company”) and its Chief Executive Officer, Mr. Steven L. Sample (“Mr. Sample”) entered into a global Settlement and Release Agreement (the “Agreement”) concluding its litigation with Mr. Tony Moorby (“Mr. Moorby”) and Mr. David Bynum (“Mr. Bynum”).

Legal and equitable claims were asserted by the Company and Mr. Sample against Mr. Moorby and Mr. Bynum in the United States District Court for the Southern District of Ohio, Case No. 2:10-cv-995.  Similarly, claims were asserted by Mr. Moorby and Mr. Bynum against the Company and Mr. Sample in that action.

All claims by the Company, Mr. Sample, Mr. Moorby, and Mr. Bynum have been dismissed by agreement of the respective parties, and all parties have released the others from any known or unknown causes of action.  The Company and Messrs. Bynum and Moorby acknowledge that neither the Company nor Mr. Sample were found by the Court to have committed any misdeeds and that neither Mr. Moorby nor Mr. Bynum were found by the Court to have breached their fiduciary duties to the Company.

The Settlement does not constitute an admission by the Company, Mr. Sample, Mr. Moorby, or Mr. Bynum of any liability or violation of law.

The parties agreed to a mutual non-disparagement agreement and release from any liabilities or future litigations.Unassociated Document

Exhibit 10.4

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS.  THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO GUARDIAN 8 HOLDINGS THAT SUCH REGISTRATION IS NOT REQUIRED.

 

TERM NOTE

 

DATED: November 13, 2012

 

FOR VALUE RECEIVED, GUARDIAN 8 HOLDINGS, a Nevada corporation (the “Borrower”), hereby promises to pay to C. Stephen Cochennet (the “Holder”) or its registered assigns or successors in interest, on order, the sum of One Hundred Thousand Dollars ($100,000)(the “Principal Amount”) together with any accrued and unpaid interest hereon, on February 12, 2013 (the “Maturity Date”) if not sooner paid.

 

The following terms shall apply to this Note:

 

1. Interest Rate.  Interest payable on this Note shall accrue at a rate per annum (the “Interest Rate”) equal to twelve percent (12%) per annum.  Interest on the Principal Amount shall be payable in full on the Maturity Date, whether by acceleration or otherwise.  In the event of the redemption or conversion of all or any portion of the Principal Amount, accrued interest on the amount so redeemed or converted shall be paid on the date of redemption or conversion, as the case may be.

 

2. Payment of Principal Amount.   The Borrower shall pay the Holder the entire Principal Amount of this Note, if not earlier redeemed, on the Maturity Date in one lump sum payment.

 

3. Optional Redemption of Principal Amount.  The Borrower will have the option of prepaying the outstanding Principal Amount (“Optional Amortizing Redemption”), in whole or in part, by paying to the Holder a sum of money equal to one hundred percent (100%) of the Principal Amount to be redeemed, together with accrued but unpaid interest thereon and any and all other sums due, accrued or payable to the Holder arising under this Note (the “Redemption Amount”) on the Redemption Payment Date (as defined below).  The Borrower shall deliver to the Holder a notice of redemption (the “Notice of Redemption”) specifying the date for such Optional Redemption (the “Redemption Payment Date”), which date shall be not less than seven (7) business days after the date of the Notice of Redemption (the “Redemption Period”).  On the Redemption Payment Date, the Redemption Amount shall be paid in good funds to the Holder.  In the event the Borrower fails to pay the Redemption Amount on the Redemption Payment Date as set forth herein, then such Notice of Redemption will be null and void.

 

4. Events of Default. Upon the occurrence and continuance of an Event of Default beyond any applicable grace period, the Holder may make all sums of principal, interest and other fees then remaining unpaid hereon and all other amounts payable hereunder immediately due and payable.  In the event of such an acceleration, the amount due and owing to the Holder shall be 100% of the outstanding principal amount of the Note (plus accrued and unpaid interest and fees, if any) (the “Default Payment”).  The Default Payment shall be first applied to accrued and unpaid interest due on the Note and then to outstanding principal balance of the Note.

 

  

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The occurrence of any of the following events is an “Event of Default”:

 

	
i.  

	
Failure to Pay Principal, Interest or other Fees.  The Borrower fails to pay when due any installment of principal or interest hereon in accordance herewith, and such failure shall continue for a period of thirty (30) days following the date upon which any such payment was due.

 

	
ii.  

	
Receiver or Trustee.  The Borrower 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.

 

	
iii.  

	
Judgments.  Any money judgment, writ or similar final process shall be entered or filed against the Borrower or its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of thirty (30) days.

 

	
iv.  

	
Bankruptcy. 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 Borrower.

 

5. Failure or Indulgence Not Waiver.  No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.  All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

6. Notices.  Any notice herein required or permitted to be given shall be in writing and shall be deemed effectively given:  (a) upon personal delivery to the party notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent to the Borrower at: Guardian 8 Holdings, 15230 N. 75th Street, Suite 1002, Scottsdale, Arizona  85260, facsimile number 913-317-8858 and to the Holder at the address and facsimile number set forth on the signature page of this Note, or at such other address as the Borrower or the Holder may designate by ten days advance written notice to the other parties hereto.

 

7. Amendment Provision.  The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented, and any successor instrument issued hereunder, as it may be amended or supplemented.

 

8. Assignability.  This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Holder and its successors and assigns, and may not be assigned by the Borrower without the consent of the Holder.

 

9. Governing Law.  This Note shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to principles of conflicts of laws.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Nevada or in the federal courts located in the State of Nevada.  Both parties agree to submit to the jurisdiction of such courts.  The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs.  In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or unenforceability of any other provision of this Note. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Borrower in any other jurisdiction to collect on the Borrower’s obligations to Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court in favor of the Holder.

 

  

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10. Construction.  Each party acknowledges that its legal counsel participated in the preparation of this Note and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Note to favor any party against the other.

 

IN WITNESS WHEREOF, the Borrower has caused this Note to be signed in its name effective as of this 13th day of November, 2012.

 

GUARDIAN 8 HOLDINGS

By: /s/ Kathleen Hanrahan                                                               

      Kathleen Hanrahan, Chief Financial Officer

 

HOLDER:

/s/ C. Stephen Cochennet                                           

C. Stephen Cochennet

 

 

Address: 12101 NW Crooked Road, Parkville, Missouri  64152

 

  

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