Exhibit 10.1


 


SETTLEMENT AGREEMENT AND STIPULATION


  


THIS SETTLEMENT AGREEMENT
and STIPULATION is dated as of May 31, 2016 by and between InCapta, Inc. (“INCAPTA” or the “Company”),
a corporation formed under the laws of the State of Nevada, and Rockwell Capital Partners, Inc., (“RCP”), a Delaware
corporation.


 


BACKGROUND:


 


WHEREAS, there are
bona fide outstanding liabilities of the Company in the principal amount of not less than $50,861.25 and


 


WHEREAS, these liabilities
are past due; and


 


WHEREAS, RCP acquired
such liabilities on the terms and conditions set forth in the annexed Claim Purchase Agreement(s), subject however to the agreement
of the Company and compliance with the provisions hereof; and


 


WHEREAS, RCP and INCAPTA
desire to resolve, settle, and compromise among other things the liabilities as more particularly set forth on Schedule A and the
Claims Purchase Agreements and debt instruments attached and annexed thereto and incorporated herein (hereinafter collectively
referred to as the “Claims”).


 


NOW, THEREFORE, the
parties hereto agree as follows:


 


I.  Defined Terms.
As used in this Agreement, the following terms shall have the following meanings specified or indicated (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):


 


“AGREEMENT”
shall have the meaning specified in the preamble hereof. "CLAIM AMOUNT" shall mean $50,861.25


 


“COMMON STOCK”
shall mean the Company’s common stock, $0.001 par value per share, and any shares of any other class of common stock whether
now or hereafter authorized, having the right to participate in the distribution of dividends (as and when declared) and assets
(upon liquidation of the Company).


 


  “COURT” shall mean Circuit Court within Sarasota County, Florida.




 


  “DISCOUNT” shall mean Fifty (50%) percent.




 


“SALE PRICE”
shall mean the Sale Price of the Common Stock on the Principal Market.




 






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“MARKET PRICE”
on any given date shall mean the lowest Sale Price during the Valuation Period.


 


“PRINCIPAL MARKET”
shall mean the Nasdaq National Market, the Nasdaq SmallCap Market, the Over the Counter Bulletin Board, QB marketplace, QX Marketplace,
OTC Pink, the American Stock Exchange or the New York Stock Exchange, whichever is at the time the principal trading exchange or
market for the Common Stock.


 


“PURCHASE PRICE”
shall mean the Market Price during the Valuation Period (or such other date on which the Purchase Price is calculated in accordance
with the terms and conditions of this Agreement) less the product of the Discount and the Market Price.


 


“SELLER”
shall mean any individual or entity listed on Schedule A, who originally owned the Claims.


 


“TRADING DAY”
shall mean any clay during which the Principal Market shall be open for business.


 


  “TRADING PERIOD” shall mean Trading Days during the Valuation Period.




 


  “TRANSFER AGENT” shall mean the transfer agent for the Common Stock (and to any substitute or replacement transfer agent for the Common Stock upon the Company’s appointment of any such substitute or replacement transfer agent).




 


“VALUATION PERIOD”
shall mean the fifteen (15) day trading period preceding the share request inclusive of the day of any Share Request pursuant to
this agreement (the “trading period”); provided that the Valuation Period shall be extended as necessary in the event
that (1) the Initial Issuance is delivered in more than one tranche pursuant to Sections 3(a) and 3(e); and/or (2) one or more
Additional Issuances is required to be made pursuant to Section 3(d) below, in which case the Valuation Period for each issuance
shall be extended to include additional trading days pursuant to such issuance. The Valuation Period shall begin on the elate of
any Share Request pursuant to this Agreement, but shall be suspended to the extent that any subsequent Initial Issuance tranche
and/or Additional Issuance is due to be made until such date as such Initial Issuance tranche and/or Additional Issuance is delivered
to RCP pursuant to Section 3(b)(iii). Any period of suspension of the Valuation Period shall be established by means of a written
notice from RCP to the Company.


 


2.  Fairness Hearing. Upon the
execution hereof, Company and RCP agree, pursuant to Section 3(a)(10) of the Securities Act of 1933 (the “Act”),
to immediately submit the terms and conditions of this Agreement to the Court for a hearing on the fairness of such terms and
conditions, and the issuance exempt from registration of the Settlement Shares. This Agreement shall become binding upon the
parties only upon entry of an order by the Court substantially in the form annexed hereto as Exhibit A (the
“Order”).


 


3.  Settlement Shares. Following entry of an Order by the Court in accordance with Paragraph 2 herein and the execution
by RCP and Company of the Stipulation and Order of Dismissal (as defined below) subject to paragraph 7 herein, Company shall issue
and deliver to RCP shares of its Common Stock (the “Settlement Shares”) as follows:


 






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(a)In settlement
of the Claims, Company shall initially issue and deliver to RCP, in one or more tranches as necessary subject to paragraph 3(f)
herein, shares of Common Stock (the “Initial Issuance”), subject to adjustment and ownership limitations as set forth
below, sufficient to satisfy the compromised amount at a fifty percent (50%) discount to market (the total amount of the claims
divided by 50%) based on the market price during the valuation period as defined herein through the issuance of freely trading
securities issued pursuant to Section 3(a)(l0) of the Securities Act (the “Settlement Shares”). The Company shall also
issue to RCP, on the issuance date(s), Five Million (5,000,000) free trading shares pursuant to Section 3(a)(10) of the Securities
Act in accordance herewith as a settlement fee.


 


(b)No later than
the first business day following the date that the Court enters the Order, time being of the essence, Company shall: (i) cause
its legal counsel to issue an opinion to Company’s transfer agent, in form and substance reasonably acceptable to RCP and
such transfer agent, that the shares of Common Stock to be issued as the Initial Issuance and Additional Issuance (as defined below)
and shares issued as a settlement fee are legally issued, fully paid and non-assessable, are exempt from registration under the
Securities Act, may be issued without restrictive legend, and may be resold by RCP without restriction; (ii) transmit via email,
facsimile and overnight delivery an irrevocable and unconditional instruction to Company’s stock transfer agent in the form
annexed hereto as Exhibit B; and (iii) within three (3) days thereof, issue and deliver to RCP Settlement Shares and settlement
fee shares in one or more tranches as necessary, without any legends or restrictions on transfer, sufficient to satisfy the compromised
amount along with settlement fee shares, through the issuance of freely trading securities issued pursuant to Section 3(a)(10)
of the Securities Act. Pursuant to this agreement, RCP may deliver a request to INCAPTA, either directly or through Company’s
Transfer Agent pursuant to Exhibit “B” which states the dollar amount (designated in U.S. dollars) of Common Stock
to be issued to RCP (the “Share Request”). The date upon which the first tranche of the Initial Issuance shares along
with any shares issued as a settlement fee have been received into RCP’s account and are available for sale by RCP shall
be referred to as the “Issuance Date”. In the event that Company is delinquent on issuance of shares of stock to RCP
pursuant to the terms and conditions of this Section 3 within five (5) business days of a request for issuance of shares pursuant
to Court Order Granting Approval of this Settlement Agreement, then the Discount shall be increased by five percent (5%), as well
as an additional five percent (5%) for each additional delinquency of five (5) Trading Days up to a maximum Discount of ninety
percent (90%) until all Settlement Shares and settlement fee shares have been received by RCP and Company has fully complied with
all terms and conditions and obligations pursuant to this Settlement Agreement and Stipulation.


 


(c)During the
Valuation Period, the Company shall deliver to RCP, through the Initial Issuance and any required Additional Issuance subject to
paragraph 3(f) herein that number of shares (the “Final Amount”) with an aggregate value equal to (A) the sum of the
Claim Amount, divided by (B) the Purchase Price. The parties acknowledge that the number of Settlement Shares along with any settlement
fee shares to be issued pursuant to this Agreement is indeterminable as of the date of its execution, and could well exceed the
current existing number of shares outstanding as of the date of its execution.


 


(d)If at any
time during the Valuation Period the Market Price is below ninety percent (90%) of the Market Price on the day before the Issuance
Date, Company shall immediately cause to be issued and delivered to RCP in accordance with the provisions of Section 3(b) herein,
such additional shares as may be required to effect the purposes of this Settlement Agreement (each, an “Additional Issuance”),
subject to the limitation in the paragraph below. At the end of the Valuation Period, if the sum of the Initial Issuance and any
Additional Issuance is greater than the Final Amount, RCP shall promptly deliver any remaining shares to Company or its transfer
agent for cancellation.


 






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(e)Notwithstanding
anything to the contrary contained herein, it is the intention of the parties that the Settlement Shares along with settlement
fee shares beneficially owned by RCP at any given time shall not exceed the number of such shares that, when aggregated with all
other shares of Company then beneficially owned by RCP, or deemed beneficially owned by RCP, would result in RCP owning more than
four and ninety-nine tenths (4.99%) of all of such Common Stock as would be outstanding on such date, as determined in accordance
with Section 16 of the Exchange Act and the regulations promulgated thereunder. In compliance therewith, the Company agrees to
deliver the Initial Issuance and any Additional Issuances in one or more tranches.


 


(f)For the avoidance
of doubt, the price used to determine the number of shares of Common Stock to be delivered pursuant to any Share Request shall
be rounded up to the nearest decimal place of 0.00001.


 


4.  Necessary Action. At all times after the execution of this Agreement and entry of the Order by the Court, each party
hereto agrees to take or cause to be taken all such necessary action including, without limitation, the execution and delivery
of such further instruments and documents, as may be reasonably requested by any party for such purposes or otherwise necessary
to effect and complete the transactions contemplated hereby.


 


5.  Releases. Upon receipt of all of the Settlement Shares and settlement fee shares for and in consideration of the
terms and conditions of this Agreement, and except for the obligations, representations, indemnifications pursuant to paragraph
15 herein and covenants arising or made hereunder or a breach hereof, the parties hereby release, acquit and forever discharge
the other and each, every and all of their current and past officers, directors, shareholders, affiliated corporations, subsidiaries,
agents, employees, representatives, attorneys, predecessors, successors and assigns (the “Released Parties”), of and
from any and all claims, damages, cause of action, suits and costs, of whatever nature, character or description, whether known
or unknown, anticipated or unanticipated, which the parties may now have or may hereafter have or claim to have against each other
with respect to the Claims. Nothing contained herein shall be deemed to negate or affect RCP' s right and title to any securities
heretofore issued to it by Company or any subsidiary of Company.


 


6.  Representations.Company hereby represents, warrants and covenants to RCP as follows:


 


(a) There
are Five Billion (5,000,000,000) shares of Common Stock of the Company authorized, of which approximately Forty Four Million
Three Hundred Sixty Seven Thousand Seven Hundred and Nine (44,367,709) as of September 30, 2015 Shares of Common Stock are
issued and outstanding; and approximately Four Billion Nine Hundred Fifty Five Million Six Hundred Thirty Two Thousand Two
Hundred Ninety One (4,955,632,291) Shares of Common Stock are available for issuance pursuant hereto;


 


(b) The
shares of Common Stock to be issued pursuant to the Order are duly authorized, and when issued will be duly and validly
issued, fully paid and non-assessable, free and clear of all liens, encumbrances and preemptive and similar rights to
subscribe for or purchase securities;


 


(c) The
shares will be exempt from registration under the Securities Act and issuable without any restrictive legend;


 






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(d)The Company
shall reserve from its duly authorized capital stock a number of shares of Common Stock at least equal to the greater of the number
of shares that could be issued pursuant to the terms of the Order and that Company shall reserve at its transfer agent, at a minimum.
Two Hundred Thirty Million (230,000,000) shares during the Valuation Period in order to ensure that it can properly carry out the
terms of this agreement, which may only be released to Company once all of the Settlement Shares and settlement fee shares have
been delivered and converted pursuant to this agreement and Company’s obligations are otherwise fully satisfied or there
has otherwise been a default pursuant to the terms of this Agreement;


 


(e)If at any
time it appears reasonably likely that there may be insufficient authorized shares to fully comply with the Order, Company shall
promptly increase its authorized shares to ensure its ability to timely comply with the Order;


 


(f)The execution of this Agreement
and performance of the Order by Company and RCP will not (1) conflict with, violate or cause a breach or default under any agreements
between Company and any creditor (or any affiliate thereof) related to the account receivables comprising the Claims, or (2) require
any waiver, consent, or other action of the Company or any creditor, or their respective affiliates, that has not already been
obtained;


 


(g)Without limitation,
the Company hereby waives any provision in any agreement related to the account receivables comprising the Claims requiring payments
to be applied in a certain order, manner, or fashion, or providing for exclusive jurisdiction in any court other than this Court;


 


(h)The Company
has all necessary power and authority to execute, deliver and perform all of its obligations under this Agreement;


 


(i)The execution,
delivery and performance of this Agreement by Company has been duly authorized by all requisite action on the part of Company and
its Board of Directors (including a majority of its independent directors), and this Agreement has been duly executed and delivered
by Company;


 


(j)Company did
not enter into the transaction giving rise to the Claims in contemplation of any sale or distribution of Company’s common
stock or other securities;


 


(k)There has
been no modification, compromise, forbearance, or waiver entered into or given with respect to the Claims. There is no action based
on the Claims that is currently pending in any court or other legal venue, and no judgments based upon the Claims have been previously
entered in any legal proceeding;


 


(l)There are
no taxes due, payable or withholdable as an incident of Seller's provision of goods and services, and no taxes will be due, payable
or withholdable as a result of settlement of the Claims;


 


(m)Seller was
not and within the past ninety (90) days has not been directly or indirectly through one or more intermediaries in control, controlled
by, or under common control with, the Company and is not an affiliate of the Company as defined in Rule 144 promulgated under the
Act;


 


(n)Company is
operational and is a non-shell company within the meaning of Rule 405 and all applicable Securities Rules and Registration pertaining
thereto;


 


(o)Company represents
that Seller is not, directly or indirectly, utilizing any of the proceeds received from RCP for selling the Claims to provide any
consideration to or invest in any manner in the Company or any affiliate of the Company;


 






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(p)Company has
not received any notice (oral or written) from the SEC or Principal Market regarding a halt, limitation or suspension of trading
in the Common Stock;


 


(q)Seller will
not, directly or indirectly, receive any consideration from or be compensated in any manner by, Company, or any affiliate of Company,
in exchange for or in consideration of selling the Claims;


 


(r)Company represents that none
of the services provided or to be provided which gave rise to the Claims were or are services related to promoting the Company's
Securities or that may be considered investor relations services;


 


(s)Company represents that each
Claim being purchased pursuant hereto is a bona-fide Claim against the Company and that the invoices or written contract(s)/promissory
notes underlying each Claim are accurate representations of the nature of the debt and the amounts owed by the Company to Seller
and that the goods or services which are the subject of the Claims being purchased have been received or rendered;


 


(t)Company acknowledges that RCP
or its affiliates may from time to time, hold outstanding securities of the Company which may be convertible in shares of the Company's
common stock at a floating conversion rate tied to the current market price for the stock. The number of shares of Common Stock
issuable pursuant to this Agreement may increase substantially in certain circumstances, including, but not necessarily limited
to the circumstance wherein the trading price of the Common Stock declines during the Valuation Period. The Company’s executive
officers and directors have studied and fully understand the nature of the transaction contemplated by this Agreement and recognize
that they have a potential dilutive effect. The board of directors of the Company has concluded in its good faith business judgment
that such transaction is in the best interests of the Company. The Company specifically acknowledges that its obligation to issue
the Settlement Shares along with settlement fee shares is binding upon the Company and enforceable regardless of the dilution such
issuance may have on the ownership interests of other shareholders of the Company. The Board of Directors of the Company has further
given its consent for each conversion of shares of stock pursuant to this agreement and agrees and consents that same may occur
below the par value of the Company’s Common Stock if applicable.


 


(u)None
of the transactions, agreements or proceedings described above is part of a plan or scheme to evade the registration requirements
of the Securities Act and INCAPTA and RCP are acting and have acted in an arms length capacity.


 


7. Continuing
Jurisdiction. Simultaneously with the execution of this Agreement, the attorneys representing the parties hereto will execute
a stipulation of dismissal substantially in the form annexed hereto as Exhibit C (the “Stipulation of Dismissal”).
The parties hereto expressly agree that said Stipulation of Dismissal shall not be filed, but shall be held in escrow by counsel
for RCP, until such time that Company has fully complied with all of its obligations pursuant to this Settlement Agreement and
Stipulation. In order to enable the Court to grant specific enforcement or other equitable relief in connection with this Agreement,
(a) the parties consent to the jurisdiction of the Court for purposes of enforcing this Agreement, and (b) each party to this
Agreement expressly waives any contention that there is an adequate remedy at law or any like doctrine that might otherwise preclude
injunctive relief to enforce this Agreement.


 






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8.  Conditions
Precedent/ Default.


 


(a)If Company
shall default in promptly delivering the Settlement Shares to RCP in the form and mode of delivery as required by Paragraphs 2,
3, 4 and 6 herein or otherwise fail in any way to fully comply with the provisions thereof;


 


(b)If the Order
shall not have been entered by the Court on or prior to ninety (90) days after execution of this Agreement;


 


(c)If the Company
shall fail to comply with the Covenants set forth in Paragraph 14 hereof;


 


(d)If
Bankruptcy, dissolution, receivership, reorganization, insolvency or liquidation proceedings or other proceedings for relief under
any bankruptcy law or any law for the relief of debtors or other legal proceedings for any reason shall be instituted by or against
the Company; or if the trading of the Common Stock shall have been halted, limited, or suspended by the SEC or on the Principal
Market; or trading in securities generally on the Principal Market shall have been suspended or limited; or, minimum prices shall
been established for securities traded on the Principal Market; or the Common Stock is not eligible or unable to be deposited for
trade on the Principal Market; or the Company is delinquent or has not made its required Securities and Exchange Commission filings;
or if any time, the Market Price for the Company’s Common Stock drops to at or below $0.001; or there shall have been any
material adverse change (i) in the Company’s finances or operations, or (ii ) in the financial markets such that, in the
reasonable judgment of the RCP, makes it impracticable or inadvisable to trade the Settlement Shares along with any settlement
fee shares; and such suspension, limitation or other action is not cured within five (5) Trading Days; then the Company shall be
deemed in default of the Agreement and Order and this Agreement and/or any remaining obligations of RCP pursuant to this Agreement
shall be voidable in the sole discretion of RCP, unless otherwise agreed by written agreement of the parties;


 


(e)In the event
that the Company fails to fully comply with the conditions precedent as specified in paragraph 8a. through d. herein, then the
Company shall be deemed in default of the agreement and RCP, at its option and in its sole discretion, may declare Company to be
in default of the Agreement and Order, and this Agreement and/or any remaining obligations of RCP pursuant to this Agreement shall
be voidable in the sole discretion of RCP, unless otherwise agreed by written agreement of the parties. In said event, RCP shall
have no further obligation to comply with the terms of this agreement and can thus opt out of making any remaining payments, if
applicable, not previously made to creditors as contemplated by the Claims Purchase Agreement as referenced in schedule A. ln the
event Company is declared to be in default, Company shall remain fully obligated to comply with the terms of this Settlement Agreement
and Stipulation for issuance of shares of stock to RCP for any amount of debt previously purchased and paid for by RCP pursuant
to the terms of this Settlement Agreement and Stipulation, Schedule A, as well as Order Approving same along with all settlement
fee shares required hereby. In the event that Company is declared to be in default of this Agreement prior to successful deposit
and clearance of the Settlement Shares and/or settlement fee shares, Company shall further remain fully obligated for issuance
of all settlement fee shares pursuant to paragraph 3(a) herein.


 


9.  Information.
Company and RCP each represent that prior to the execution of this Agreement, they have fully informed themselves of its terms,
contents, conditions and effects, and that no promise or representation of any kind has been made to them except as expressly stated
in this Agreement.


 






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10.  Ownership
and Authority. Company and RCP represent and warrant that they have not sold, assigned, transferred, conveyed or otherwise
disposed of any or all of any claim, demand, right, or cause of action, relating to any matter which is covered by this Agreement,
that each is the sole owner of such claim, demand, right or cause of action, and each has the power and authority and has been
duly authorized to enter into and perform this Agreement and that this Agreement is the binding obligation of each, enforceable
in accordance with its terms.


 


11.  No Admission.
This Agreement is contractual and it has been entered into in order to compromise disputed claims and to avoid the uncertainty
and expense of the litigation. This Agreement and each of its provisions in any orders of the Court relating to it shall not be
offered or received in evidence in any action, proceeding or otherwise used as an admission or concession as to the merits of the
Action or the liability of any nature on the part of any of the parties hereto except to enforce its terms.


 


12.  Binding
Nature. This Agreement shall be binding on all parties executing this Agreement and their respective successors, assigns and
heirs.


 


13.  Authority to Bind. Each
party to this Agreement represents and warrants that the execution, delivery and performance of this Agreement and the consummation
of the transactions provided in this Agreement have been duly authorized by all necessary action of the respective entity and that
the person executing this Agreement on its behalf has the full capacity to bind that entity. Each party further represents and
warrants that it has been represented by independent counsel of its choice in connection with the negotiation and execution of
this Agreement, and that counsel has reviewed this Agreement. Company farther represents and warrants that they have had corporate
legal counsel review and agree to the terms of this Agreement independent of counsel of their choosing to represent Company at
any fairness hearing or hearings to approve this Agreement.


 


14.  Covenants.


 


(a)For so long
as RCP or any of its affiliates holds any shares of Common Stock, neither Company nor any of its affiliates shall vote any shares
of Common Stock owned or controlled by it (unless voting in favor of a proposal approved by a majority of Company's Board of Directors),
or solicit any proxies or seek to advise or influence any person with respect to any voting securities of Company; in favor of
(1) an extraordinary corporate transaction, such as a reorganization, or liquidation, involving Company or any of its subsidiaries,
(2) a sale or transfer of a material amount of assets of Company or any of its subsidiaries, (3) any material change in the present
capitalization or dividend policy of Company, (4) any other material change in Company’s business or corporate structure,
(5) a change in Company’s charter, bylaws or instruments corresponding thereto (6) causing a class of securities of Company
to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system
of a registered national securities association, (7) causing a class of equity securities of Company to become eligible for termination
of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934, as amended, (8) terminating its Transfer Agent,
(9) taking any action which would impede the purposes and objects of this Settlement Agreement, or (10) taking any action, intention,
plan or arrangement similar to any of those enumerated above. Nothing in this section shall be deemed to exclude strategic decisions
by Company made in an effort to expand the Company except as expressly stated herein. The provisions of this paragraph may not
be modified or waived without further order of the Court.


 


(b)Immediately
upon the signing of the Settlement Order by the Court, the Company shall cause to be filed a Form 8-K with the Securities and Exchange
Commission disclosing the settlement. Furthermore, in the event that the Company raises their issued and outstanding Common Stock
by an additional ten percent (10%) or more, Company shall file a form 8-K with the Securities and Exchange Commission each and
every time. The Company shall further immediately file such additional SEC filings as may be or are required in respect of the
transactions. In the event that the Company fails to fully comply with this provision, then the Discount pursuant to this Agreement
shall be increased by five percent (5%), as well as an additional five percent (5%) for each additional delinquency of five (5)
Trading Days up to a maximum Discount of ninety percent (90%) until all Settlement Shares and settlement fee shares have been received
by RCP and Company has fully complied with all terms and conditions and obligations pursuant to this Settlement Agreement and Stipulation.


 






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(c)RCP hereby
covenants that they have not provided any funds or other consideration to the Company and have no intent to do so. In no event
shall any of the funds received from the sale of shares of the Company in reliance upon the Court Order be used to provide any
consideration to the Company or any affiliate of the Company.


 


(d)RCP has utilized
the services of Meyers Associates, L.P. as a placement agent in this transaction and RCP has not and is not acting as a broker
dealer in such capacity in this transaction pursuant to Section 15 of the Securities Exchange Act of 1934. Meyers Associates, L.P.
has performed due diligence on the debts associated with this transaction, negotiated the terms hereof and arranged for RCP to
place their capital in this transaction. Rockwell Capital Partners, Inc., through the transactions, agreements or proceedings above
are not a part of a plan or scheme or evade the registration requirements of Section 15 of the Securities Exchange Act of 1934
or any other applicable provisions.


 


15.  Indemnification.
Company covenants and agrees to indemnify, defend and hold RCP and its agents, employees, representatives, officers, directors,
stockholders, controlling persons and affiliates harmless arising from or incident or related to this Agreement, including, without
limitation and not limited to any claim or action brought derivatively or by the Seller or Shareholders of the Company and further,
harmless against any charges, claims, suits, losses, expenses, damages, obligations, fines, judgments, liabilities, costs and expenses
(including actual costs of investigation and reasonable attorney’s fees) whether brought by an individual or entity or imposed
by a court of law or by administrative action of any Federal, State or Local governmental body or agency, administrative agency
or regulatory authority related to arising in any manner out of, based upon or in connection with (a) any untrue statement or alleged
untrue statement of a material fact made by the Company or any omission or alleged omission of the Company to state a material
fact required to be stated herein or in any seller document or necessary to make the statements therein not misleading or (b) the
inaccuracy or breach of any covenant, representation or warranty made by the Company contained herein or in any seller document
or (c) any transaction, proposal or any other matter contemplated herein. The Company will promptly reimburse the indemnified parties
for all expenses (including reasonable fees and expenses of legal counsel) as incurred in connection with the investigation of,
preparation for or defense of any pending or threatened claim related to or arising in any manner out of any matter contemplated
by this Agreement, or any action or proceeding arising therefrom, whether or not such indemnified party is a formal party to any
such proceeding. This Agreement specifically includes, but is not limited to the foregoing concerning any claim that Rockwell Capital
Partners is in violation of or has violated Section 5 of the Securities Act of 1933, as amended, for unlawful or unauthorized sale
of securities based upon Rockwell Capital Partners, Inc.’s reliance on representations of Company or misrepresentations of
Company pursuant to (a), (b) or (c) herein and/or that any payments made by RCP to Creditors were fraudulent, based upon false
instruments provided to RCP or not bona fide claims within the meaning of Section 3(a)(10) of the Securities Act of 1933. Notwithstanding
the foregoing, the Company shall not be liable in respect of any claims that a court of competent jurisdiction has judicially determined
by final judgment (and the time to appeal has expired or the last right of appeal of has been denied) which resulted solely or
in part from the willful misconduct of an indemnified party or the willful violation of any securities law or regulations by the
indemnified party. The Company further agrees that it will not, without the prior written consent of Rockwell Capital Partners,
settle, compromise or consent to the entry of any judgment in any pending or threatened proceeding in respect of which indemnification
may be sought hereunder (whether or not Rockwell Capital Partners or any indemnified party is an actual or potential party to such
proceeding), unless such settlement, compromise or consent includes an unconditional release of Rockwell Capital Partners and each
other indemnified party hereunder from all liability arising out of such proceeding. In order to provide for just and equitable
contribution in any case in which (i) an Indemnified Party is entitled to indemnification pursuant to this Indemnification Agreement
but it is judicially determined by the entry of a final judgment decree by a court of competent jurisdiction and (the time to appeal
has expired or the last right of appeal has been denied) that such indemnification may not be enforced in such case, or (ii) contribution
may be required by the Company in circumstances for which an Indemnified Party is otherwise entitled to indemnification under the
Agreement, then, and in each such case, the Company shall contribute to the aggregate losses, Claims and damages and/or liabilities
in an amount equal to the amount for which indemnification was held unavailable.


 






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The Company further
agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the
Company for or in connection with Rockwell's agreement hereunder except for Claims that a court of competent jurisdiction shall
have determined by final judgment (and the time to appeal has expired or the last right of appeal has been denied) resulted solely
or in part from the willful misconduct of such Indemnified Party or the willful violation of any securities laws or regulations
by an Indemnified Party. The indemnity, reimbursement and contribution obligations of the Company set forth herein shall be in
addiction to any liability which the Company may otherwise have an shall be binding upon and inure to the benefit of any successors,
assigns, heirs and personal representatives of the Company or an Indemnified Party.


 


16.  Legal Effect.
The parties to this Agreement represent that each of them has been advised as to the terms and legal effect of this Agreement and
the Order provided for herein, and that the settlement and compromise stated herein is final and conclusive forthwith, shall supersede
all prior written or oral between the parties, subject to the conditions stated herein, and each attorney represents that his or
her client has freely consented to and authorized this Agreement after having been so advised.


 


17. Mutual
Drafting. Each party has participated jointly in the drafting of this Agreement which each party acknowledges is the result
of negotiation between the pm1ies and through placement agent Meyers Associates, L.P., and the language used in this Agreement
shall be deemed to be the language chosen by the parties to express their mutual intent. If ambiguity or question of intent or
interpretation arises, then this Agreement will accordingly be construed as drafted jointly by the parties, and no presumption
or burden of proof will arise favoring or disfavoring any party to this Agreement by virtue of the authorship of any of the provisions
of this Agreement.


 


18. Waiver
of Defense. Each party hereto waives a statement of decision, and the right to appeal from the Order after its entry. Company
further waives any defense based on the rule against splitting causes of action. The prevailing party in any motion to enforce
the Order shall be awarded its reasonable attorney fees and expenses in connection with such motion. Except as expressly set forth
herein, each party shall bear its own attorneys’ fees, expenses and costs.


 


19.  Signatures.
This Agreement may be signed in counterparts and the Agreement, together with its counterpart signature pages, shall be deemed
valid and binding on each party when duly executed by all parties. Facsimile and electronically scanned signatures shall be deemed
valid and binding for all purposes. This Agreement may be amended only by an instrument in writing signed by the party to be charged
with enforcement thereof. This Agreement supersedes all prior agreements and understandings among the parties hereto with respect
to the subject matter hereof.


 


20.  Choice
of Law, Etc. Notwithstanding the place where this Agreement may be executed by either of the parties, or any other factor,
all terms and provisions hereof shall be governed by and construed in accordance with the laws of the State of Florida, applicable
to agreements made and to be fully performed in that State and without regard to the principles of conflicts of laws thereof. Any
action brought to enforce, or otherwise arising out of this Agreement shall be brought only in State Court sitting in Sarasota
County, Florida.


 


21.  Exclusivity.
For a period of the later of one hundred eighty (180) days from the date of the execution of this Agreement or upon RCP' s final
sale of all shares of stock issued pursuant hereto subsequent to final adjustment, (a) Company and its representatives shall not
enter into any exchange transaction under Section 3(a)(l0) of the Securities Act nor directly or indirectly discuss, negotiate
or consider any proposal, plan or offer from any other party relating to any liabilities, or any financial transaction having
an effect or result similar to the transactions contemplated hereby, and (b) RCP shall have the exclusive right to negotiate and
execute definitive documentation embodying the terms set forth herein and other mutually acceptable terms.




 


22.  Inconsistency.
In the event of any inconsistency between the terms of this Agreement and any other document executed in connection herewith, the
terms of this Agreement shall control to the extent necessary to resolve such inconsistency.


 






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23. Notices.
Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively
given on the earliest of:


 


(a)the
date delivered, if delivered by personal delivery as against written receipt therefore or by confirmed facsimile transmission,


 


(b)the
fifth business day after deposit, postage prepaid, in the United States Postal Service by registered or certified mail, or


 


(c)the
second business clay after mailing by domestic or international express courier, with delivery costs and fees prepaid,


 


(d)delivery by email upon delivery,


 


in each case, addressed
to each of the other parties thereunto entitled at the following addresses (or at such other addresses as such party may designate
by ten (10) days' advance written notice similarly given to each of the other parties hereto):


 


Company:


 


InCapta, Inc.


1950 Fifth Avenue, Suite 100


San Diego, CA 92101


Attn: John Fleming,


Telephone: (619) 798-9284


E-mail: ceo@incapta.com


 


RCP:


 


Rockwell Capital Partners, Inc.


919 North Market Street, Suite 101


Wilmington, Delaware 19801


Attn: Samuel O’Shea


Telephone: (305) 351-7728


E-mail: documents@rockwellcp.com


 


With a copy to:


 


Michael G. Brown, Esq.


P.O. Box 19702


Sarasota, Florida 34237


Telephone: (941)780-1300


Facsimile: (941) 296-7500


Florida Bar No. 0148709


 


Charles N. Cleland, Jr., P.A.


2127 Ringling
Boulevard, Suite 104


Sarasota,
Florida 34237


Telephone:
(941) 955-1595


Facsimile: (941 ) 953-7185


Florida Bar No. 0896195


 


IN WITNESS WHEREOF,
the parties have duly executed this Settlement Agreement and Stipulation as of the date first indicated above.




 


Rockwell Capital Partners, Inc.


 


 





	By:   	/s/ Samuel O’Shea	 
	Name: Samuel O’Shea	 
	Title:  Secretary	 







 


InCapta, Inc.


 


 





	By:   	/s/ John Fleming	 
	Name: John Fleming	 
	Title: CEO	 







 






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