Exhibit 10.3


 


SETTLEMENT
AGREEMENT AND GENERAL MUTUAL RELEASE


 


This
Settlement Agreement and General Mutual Release (“Agreement”) is entered into effective this 15th day of May, 2020
by and between EMA Financial, LLC, a Delaware limited liability company (“EMA”) and Blow & Drive Interlock Corporation,
a Delaware corporation (“BDIC”). EMA and BDIC shall each be referred to as a “Party” and collectively
as the “Parties.”


 


RECITALS


 


WHEREAS,
on February 26, 2020, BDIC closed a transaction with EMA that was the subject of a Securities Purchase Agreement (the “EMA
SPA”) and corresponding Convertible Promissory Note (the “EMA Note”), both dated February 24, 2020. Under the
EMA SPA and the EMA Note, BDIC issued EMA the EMA Note in the principal amount of Seventy Five Thousand Dollars ($75,000) in exchange
for Sixty Thousand Dollars ($60,000), with the remaining going to an original issuance discount of $11,250, $1,000 to EMA for
due diligence, and $2,750 for EMA’s legal counsel for drafting the loan documents. The EMA Note bears interest at Ten Percent
(10%) per annum and matures on November 24, 2020;


 


WHEREAS,
on or about same time we entered into the EMA Agreements we entered into similar agreements with Crown Bridge Partners, LLC and
Auctus Fund, LLC (together, the “Other Lenders”);


 


WHEREAS,
as a result of BDIC entering into the agreements with the Other Lenders, and pursuant to the terms of the EMA SPA, BDIC became
obligated to issue EMA a warrant to acquire shares of its common stock, but BDIC has not yet issued the warrant (the “EMA
Warrant” and together with the EMA SPA and EMA Note, the “EMA Agreements”);


 


WHEREAS,
the Parties now desire to have BDIC pay Seventy Five Thousand Dollars ($75,000) to EMA, in exchange for EMA giving up all rights
to any other consideration under the EMA Agreements, with each Party giving the other Party a full, general release for any all
claims related to the EMA Agreements;


 


NOW,
THEREFORE, for good and adequate consideration, the receipt of which is hereby acknowledged, without admitting or denying any
wrongdoing by any Party hereto, the Parties covenant, promise and agree as follows:


 


AGREEMENT


 


1.
In full satisfaction of any and all cash, securities or other consideration BDIC owes EMA under the EMA Agreements, the Parties
agree that BDIC will pay EMA Seventy Five Thousand Dollars ($75,000) (the “Consideration”) on or before May 18, 2020
(the “Deadline”). To evidence the full satisfaction of the EMA Note, upon EMA’s receipt of the Consideration
on or before the Deadline, EMA will deliver a signed version of the Notice of Debt Satisfaction attached hereto as Exhibit
A. To evidence the surrender of any rights to the EMA Warrant, upon EMA’s receipt of the Consideration on or before
the Deadline, EMA will deliver a signed version of the Surrender of Warrant attached hereto as Exhibit B. EMA acknowledges
and agrees that upon receipt of this signed Agreement, the Consideration on or before the Deadline, and the conditions of Section
2 being met, EMA will not own any securities of BDIC, and will not be owed any money or securities from BDIC, as a result of the
EMA Agreements.


 


2.
The Parties agree that this Agreement will not be effective and will be of no force and effect unless and until the Other Lenders
enter into substantially similar agreements as this Agreement fully settling all consideration owed by BDIC to the Other Lenders
under their agreements with BDIC.


 


3.
In exchange for the Consideration and the EMA Release as defined herein, BDIC agrees to fully release EMA from all obligations
under the EMA Agreements as set forth herein.


 




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4.
In exchange for the Consideration and the BDIC Release as defined herein, EMA agrees to fully release BDIC from all obligations
under the EMA Agreements as set forth herein.


 


5.
Effective with the signing of this Agreement by EMA, BDIC and its respective agents, affiliates, divisions, predecessors, successors
and assigns, hereby release EMA, and each and all of his present and former agents, officers, directors, attorneys, and employees,
from and against any and all claims, agreements, contracts, covenants, representations, obligations, losses, liabilities, demands
and causes of action which it may now or hereafter have or claim to have against EMA under the EMA Agreements (the “BDIC
Release”). This release of claims and defenses shall not alter the prospective duties or representations between the Parties
under this Agreement.


 


6.
Effective with the signing of this Agreement by BDIC, EMA and its respective agents, affiliates, divisions, predecessors, successors
and assigns, hereby release BDIC, and each and all of its present and former agents, officers, directors, attorneys, and employees,
from and against any and all claims, agreements, contracts, covenants, representations, obligations, losses, liabilities, demands
and causes of action which it may now or hereafter have or claim to have against BDIC under the EMA Agreements (the “EMA
Release”). This release of claims and defenses shall not alter the prospective duties or representations between the Parties
under this Agreement.


 


7.
The Parties acknowledge and agree that these releases apply to all claims that they may have against the other Party arising out
of, or pertaining to the EMA Agreements, including, but not limited to, causes of action, injuries, damages, claims for costs
or losses to a Party’s person and property, real or personal, whether those injuries, damages, or losses are known or unknown,
foreseen or unforeseen, or patent or latent. The Parties agree not to file any complaints, causes of action, or grievances with
any governmental, state or county entity against the other Party arising out of, or pertaining to the EMA Agreements. The Parties
acknowledge and agree that the releases do not apply to any claims either Party may have against the other regarding this Agreement.


 


8.
The Parties expressly agree and understand that the above releases will be effective as of the date of the Parties signing this
Agreement, and the Other Lenders signing their agreement, whichever is later, provided that BDIC complies with the terms of this
Agreement.


 


9.
Section 1542 Release. It is understood and agreed by both Parties that all rights under an applicable provision similar to Section
1542 of the Civil Code of California, which provides as follows:


 


“A
general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing
the release, which if known by him must have materially affected his settlement with the debtor,”


 


are
hereby expressly waived. The Parties acknowledge, agree and understand the consequences of a waiver of Section 1542 of the California
Civil Code, or a like applicable provision, and assume full responsibility for any and all injuries, damages, losses or liabilities
that may hereinafter arise out of or be related to matters released hereunder. The Parties understand and acknowledge that the
significance and consequence of this waiver of Section 1542 of the Civil Code, or a like applicable provision, is that even if
a Party should eventually suffer additional damages from the EMA Agreements, it will not be permitted to make any claim for those
damages. Furthermore, the Parties acknowledge that they intend these consequences even as to claims for damages that may exist
as of the date of the signing of this Agreement but which the Parties do not know exist, and which, if known, would materially
affect the Party’s decision to execute this Agreement, regardless of whether the Party’s lack of knowledge is the
result of ignorance, oversight, error, negligence, or any other cause. The Parties acknowledge and agree that the releases do
not apply to any claims either Party may have against the other regarding the Settlement or this Agreement.


 




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10.
The Parties acknowledge and agree that they will not defame or disparage the services, business, integrity, veracity, or personal
or professional reputation of the other Party or any the other Party’s directors, officers, employees, affiliates, or agents
of any of the foregoing in either a professional or personal manner; provided that the Parties may testify and respond truthfully
to any questions from or on behalf of the themselves or any of its affiliates, or in any legal proceeding, arbitration or governmental
investigation, or in any circumstances in which an answer may be legally compelled.


 


11.
Each Party acknowledges and represents that, in executing this Agreement, such Party has not relied on any inducements, promises,
or representations made by any Party or any party representing or serving such Party, unless expressly set forth herein.


 


12.
This Agreement pertains to a disputed claim and does not constitute an admission of liability by any Party for any purpose, except
as otherwise provided herein.


 


13.
This Agreement may not be amended, canceled, revoked or otherwise modified except by written agreement subscribed by all of the
Parties to be charged with such modification.


 


14.
This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective partners, employees,
agents, servants, heirs, administrators, executors, successors, representatives and assigns.


 


15.
All notices and other required or permitted communications shall be in writing, and shall be addressed as follows:


 


	If
    to BDIC:	Blow
    & Drive Interlock Corporation
	 	1427
    S. Robertson Blvd.
	 	Los
    Angeles, CA 90035
	 	Attn.
    David Haridim, Chief Executive Officer
	 	E-mail:
    info@blowanddrive.com
	 	Fax:
    _____________________


 


With
a copy to (which shall not constitute notice):


 


	 	Law
    Offices of Craig V. Butler
	 	300
    Spectrum Center Drive, Ste 300
	 	Irvine,
    CA 92618
	 	Attn.
    Craig V. Butler, Esq.
	 	E-mail:
    cbutler@craigbutlerlaw.com
	 	Fax:
    (949) 209-2545


 


	If
    to EMA:	EMA
    Financial, LLC 
	 	40
    Wall Street, 17th Floor 
	 	New
    York, NY 10005
	 	Attn:
    Felicia Preston 
	 	Email:
    admin@emafin.com


 


All
notices shall be given (a) by personal delivery to the party, (b) by facsimile, (c) by e-mail, or (d) by overnight or other express
courier services. All notices shall be effective and shall be deemed given on the date of receipt at the principal address if
received during normal business hours, and, if not received during normal business hours, on the next business day following receipt.
Either Party may change its address by notice to the other Party.


 




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16.
In the event of any action, suit or other proceeding instituted to remedy, prevent or obtain relief from a breach of this Agreement,
arising out of a breach of this Agreement, involving claims within the scope of the releases contained in this Agreement, or pertaining
to a declaration of rights under this Agreement, the prevailing Party shall recover all of such Party’s attorneys’
fees and costs incurred in each and every such action, suit or other proceeding, including any and all appeals or petitions therefrom.


 


17.
This Agreement and the rights of the parties hereunder shall be governed by and construed in accordance with the governing laws
under the EMA Agreements including all matters of construction, validity, performance, and enforcement and without giving effect
to the principles of conflict of laws. Venue for any action brought under this Agreement shall be the venue specified in the EMA
Agreements.


 


18.
This Agreement sets forth the entire agreement and understanding of the Parties hereto and supersedes any and all prior agreements,
arrangements and understandings related to the subject matter hereof. No understanding, promise, inducement, statement of intention,
representation, warranty, covenant or condition, written or oral, express or implied, whether by statute or otherwise, has been
made by any party hereto which is not embodied in this Agreement, and no Party hereto shall be bound by or liable for any alleged
understanding, promise, inducement, statement, representation, warranty, covenant or condition not so set forth.


 


19.
Party has had the opportunity to have its legal counsel review this Agreement on its behalf. If an ambiguity or question of law
or intent arises with respect to any provision of this Agreement, the Agreement will be construed as if drafted jointly by the
Parties. The Parties expressly agree that the construction and interpretation of this Agreement shall not be strictly construed
against the drafter.


 


20.
Notwithstanding anything herein to the contrary, this Agreement shall be null and void and of no further or effect if BDIC fails
to pay the Consideration to EMA on or before the Deadline.


 


[signature
page follows]


 




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IN
WITNESS WHEREOF, the Parties hereto, agreeing to be bound hereby, execute this Agreement upon the date first set forth above.


  


	 	“BDIC”

         
	 	 	“EMA”
	 	Blow
    & Drive Interlock Corporation, Inc.	 	 	EMA
    Financial, LLC
	 	a
    Delaware corporation	 	 	a
    Delaware limited liability company
	 	 	 	 	 
	 		 	 	
	By:	David
    Haridim	 	By:	
	Its:	Chief
    Executive Officer	 	Its:	


 




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Exhibit
A


 


Notice
of Full Debt Satisfaction


 


Pursuant
to that certain Settlement Agreement and General Mutual Release dated May 15, 2020 (the “Agreement”) by and between
EMA Financial, LLC, a Delaware limited liability company (“EMA”) and Blow & Drive Interlock Corporation, a Delaware
corporation (“BDIC”), EMA is surrendering that certain Convertible Promissory Note dated February 24, 2020 issued
by BDIC to EMA in the principal amount of $75,000 (the “Note”) in exchange for the Consideration (as defined in the
Agreement). As noted in the Agreement, this Notice of Full Debt Satisfaction is the documentation required by the Parties to evidence
EMA’ surrender of the Note and that EMA considers all amounts due under the Note to be fully-satisfied upon the closing
of the transactions contemplated in the Agreement.


 


By
signing below, at the closing of the Agreement (as defined in the Agreement) EMA irrevocably extinguishes all amounts owed to
it from BDIC under the Note, and such amount shall be deemed to be paid and satisfied in full, in exchange for the consideration
owed to EMA under the Consideration.


 


EMA
Financial, LLC, a Delaware limited liability company


 


	Signature:
_____________________________________________________________ 	 
	 	 
	Print
    Name: ____________________________________________________________	 
	 	 
	Title:
    _________________________________________________________________	 
	 	 
	Address:
_____________________________________________________________    	 
	 	 
	                 _____________________________________________________________	 


 




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Exhibit
B


 


Surrender
of Warrant


 


FOR
VALUE RECEIVED, the undersigned does hereby cancels any rights to warrants to acquire shares of BDIC’s common stock. The
rights to any warrants are being cancelled pursuant to the terms of that certain Settlement Agreement and Mutual General Release
by and between EMA Financial, LLC, a Delaware limited liability company (“EMA”) and Blow & Drive Interlock Corporation,
a Delaware corporation (“BDIC”), dated May 15, 2020.


 


IN
WITNESS HEREOF, the party below has executed this Surrender of Warrant as of the date indicated by his signature below.


 


	 	EMA
    Financial, LLC
	 	 	 
	Dated:
    May 15, 2020	 	           
	 	By:
    	 
	 	Its:
    	 


 






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