Mr. Kirkpatrick
Now that the company is dissolving there is no excuse to not make this information .
I am asking you, to avoid the appearance of a cover up, to post the information below on the company website before it is taken down so shareholders can copy it.
You agreed to give this information out, you must believe at this point every shareholder deserves to see it.
Thanks Ron Bates
Agreement of Settlement
This document is to certify that an agreement has been reached in the legal action #1103417-A, filed in the 7th District Court of Smith County, Texas. Upon the signing by the representatives of the parties in question and the notarization of this document, the following terms, as listed below, will be honored as has been negotiated:
Plaintiffs Ronald Bates, William Hubert Cox, Jr., John Crosier, Ronald G. Hermansen, Gerard Kozic, David F. Nelson and Daryl Brian Waddell; Defendant CMKM Diamonds, Inc. represented by CEO Steve Kirkpatrick, agree and stipulate to the following:
1. Mr. Kirkpatrick will host 2 shareholder web meetings a month starting in April. These will be open to the first 1000 minimum, 2000 maximum shareholders, first come, first serve, and the meetings will be recorded and posted for all to hear on the company website. There will be 2 meetings a month in May and then one a month there on out, unless additional meetings are called for by Mr. Kirkpatrick. Mr. Kirkpatrick is willing to pay for these meetings himself at this time. There will be no more private internet board meetings, only those held officially by Mr. Kirkpatrick through his web meetings.
2. There will be a vote for 2 CMKM Diamonds Inc. shareholder representatives to be placed on a board of directors on September 30, 2012. This vote will be open to any shareholder that wants to be considered as a candidate, and a method of voting will be established by July 15, 2012. Candidates will have until August 15, 2012 to register as a candidate. Shareholder representatives will be considered directors with full voting rights. Mr. Kirkpatrick will have several appointees to the board that he chooses himself. The board will consist of a minimum of 5 people, including Mr. Kirkpatrick, to a maximum of seven people. This number will be determined by Mr. Kirkpatrick. There will be no compensation of any type to serve on the board at this time. The term for the board will be one year for the shareholder representatives, and another vote will occur on September 30th of each consecutive year through 2015, at which time a full vote by CMKM Diamonds, Inc. shareholders for all board members will occur.
3. The Shareholder voting list of record will be made available to shareholders to examine for a board of directors’ vote as specified in Texas Business Corporation Act, Article 2.27, to verify ownership and validate any shareholder’s candidacy for board representative.
4. Mr. Kirkpatrick agrees to allow Plaintiffs access to all corporate materials they are allowed by law to examine as per the laws of Texas. This list (Exhibit A) has been agreed on by both parties. Mr. Kirkpatrick asks that he be allowed to organize the files and Plaintiffs can start their examination on June 1, 2012 and will be allowed sufficient time to examine the records to their satisfaction.
5. Mr. Kirkpatrick agrees that if legal representation regarding litigation concerning the naked short selling of CMKM Diamonds, Inc. stock is not retained by the company in six months after the signing of this settlement agreement, he will allow complete access to the Plaintiffs of all records held by CMKM Diamonds, Inc. relating to the naked short selling of this stock, including and not limited to, those requests as listed in the attached Exhibit B.
EXHIBIT A
Examination of Corporate Records
1. All CMKM corporate bank account records, including monthly statements, dating back to April 30, 2007. This shall include domestic and international accounts, and any CMKM-related accounts which list as signatories any person that served in any capacity from April 30, 2007 to present as a director, officer, management or counsel.
2. Documents, correspondence, media and any evidence from any person that served in any capacity from April 30, 2007 to present as a director, officer, management or counsel of any trust(s), trust account(s) or settlement funds that are appropriated and being retained for CMKM shareholders. Also requested are any documents, correspondence, media and evidence of any trustee, custodian or trust agreement regarding these trust accounts or settlements that the previously mentioned persons are in possession of or have knowledge of.
3. All CMKM Board of Directors’ meeting notes dating back to April 30, 2007.
4. All CMKM federal and state tax returns dating back to April 30, 2007.
5. A copy of the current shareholders’ list as required by Article 2.27 of the Texas Business Corporation Act.
6. All records of the payment of fees to the corporate transfer agent, Transfer Online, Inc.
EXHIBIT B
Examination of Records as pertains to the Naked Short Selling of CMKM Diamonds, Inc. stock
1. Any correspondence, communications and documents between and regarding the Depository Trust and Clearing Corporation (DTCC) and CMKM Diamonds, Inc.
2. Any correspondence, communications and documents between and regarding any brokerage house, broker, trader and CMKM Diamonds, Inc.
3. A copy of the compact disc (CD) containing the data obtained through the Owners Group will be made publicly available if an authorization signed by all the shareholders (5,000 or so) who tendered such brokerage statements and personal information to the Owners Group database can be obtained. Mr. Bill Frizzell has agreed to make any summaries of its investigation and the actual contents of the CD which was tendered to the SEC to potential legal counsel investigating naked shorting litigation on behalf of the company and any other counsel subject to a binding protective order agreed to by the parties.
4. A copy of the “Interpleader filing” document.
5. Any type of documentation, communication or evidence that Attorney A. Clifton Hodges of Pasadena, CA, or any other person or entity is conducting negotiations in regards to the release and/or distribution of any trust or monetary account earmarked for CMKM Shareholders.
6. Jim DeCosta’s analysis of the trading irregularities regarding CMKM.
7. Any Securities and Exchange Commission (SEC) files concerning CMKM that any CMKM Board of Directors, management and/or counsel, past and present, including Robert Maheu and Bill Frizzell, had access to, including Silver State Bank, Las Vegas, Nevada information and accounts. Some of the information described in this paragraph is subject to a protective order entered between the parties to various lawsuits as it was exchanged during litigation. Any material that is not subject to a protective order can be released.
8. Any SEC banking records that Bill Frizzell was granted access to. Some of the information described in this paragraph is subject to a protective order entered between the partieis to various lawsuits as it was exchanged during litigation. Any material that is not subject to a protective order can be released.
9. All meeting minutes between the SEC and any CMKM Board of Directors, management and counsel, past and present, including Robert Maheu.
10. A CD copy of a file named “informant audio file”.
11. A DVD or VHS copy of the video used in the supposed CMKM “sting” conducted by Robert Maheu and the U.S. Government.
12. Any other documents, data, evidence, media that Plaintiffs and/or their counsel deem necessary for a legal action pertaining to the naked short selling of CMKM Diamonds, Inc. stock.
