Alex Welch Is Happy About Settlement with Demi Lovato

Demi Lovato and dancer Alex Welch have made peace for the holidays: The Disney Channel star has reached a settlement with Welch, the dancer she struck.

"I'm happy. We came to an agreement and I'm ready to move on," Alex "Shorty" Welch, a member of the all-female dance crew, Beat Freaks, tells PEOPLE. "I'm ready to start working again."

Lovato, 18, has been in treatment for emotional and physical issues since the altercation took place in October during the South American leg of the Jonas Brothers's world tour.

According to Welch, the punch came after Lovato was confronted by tour managers about her conduct the previous night. The incident left Welch with a black eye and a bruised left cheekbone, and the dancer considered legal action prior to the resolution.

Lovato's reps had no comment on the settlement.

Welch, 21, would not disclose the terms of the settlement but said that the agreement called for a portion of the settlement to be donated to charity. "That's important," she says.

Katie Holmes Goes Children's Clothes Holiday Shopping

 

With days before Christmas, Katie Holmes dropped into a favorite French-based children's clothing boutique in Beverly Hills recently to pick out gifts for six children – including 4-year-old daughter Suri.

"Her tastes were very classic," another customer, who was inside the Bonpoint shop on Brighton Way at the same time, tells PEOPLE. "Very practical."

Among the purchases: sweaters in caramel and grey for a 10-year-old girl and a jacket and slacks outfit for a very young boy.

Other selections were a bit more "fanciful," the source says, including "a princess dress for a girl [of] about 8 or so."

Holmes also picked out a short gold dress and ruby red shoes, described as "very red carpet," as well as some beach-ready shoulder-strapped sundresses.

Like husband Tom Cruise, Holmes is spotted regularly at the upscale shop, which scents and color-codes its packages: pink for girls, khaki for boys. Other celebrity clients of the brand include Brad Pitt and Angelina Jolie, Julia Roberts, Salma Hayek and Jessica Alba.

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