Document:

INDEMNIFICATION AGREEMENT

 

This
Indemnification Agreement (this “Agreement”) is effective as of June 14, 2012, (the “Effective
Date”) by and between Flux Power Holdings, Inc., a Nevada corporation (the “Company”), and Chris
Anthony (“Indemnitee”) and the parties hereby agree as follows:

 

1.           Services
by Indemnitee. Indemnitee agrees to serve as a director and/or executive officer of the Company so long as he or she is duly
appointed or elected and qualified in accordance with the applicable provisions of the Articles of Incorporation and bylaws of
the Company or any subsidiary of the Company and until such time as he or she resigns or fails to stand for election or is removed
from his or her position. Indemnitee may, at any time and for any reason, resign or be removed from such position (subject to any
other contractual obligation or other obligation imposed by operation of law), in which event the Company shall have no obligation
under this Agreement to continue Indemnitee in any such position.

 

2.           Indemnification.

 

2.1           The
Company hereby agrees to hold harmless and indemnify Indemnitee against any and all Expenses incurred by reason of the fact that
Indemnitee is or was a director, officer, agent, or advisor of the Company, or is or was serving at the request of the Company
as a director, officer, employee, agent or advisor of another corporation, partnership, joint venture, trust, limited liability
company, or other entity or enterprise, but only if Indemnitee acted in good faith and in a manner he reasonably believed to be
in or not opposed to the best interest of the Company and, in the case of a criminal proceeding, had no reasonable cause to believe
that his conduct was unlawful. The termination of any Proceeding by judgment, order of the court, settlement, conviction, or upon
a plea of nolo contendere, or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith
and in a manner which he reasonably believed to be in or not opposed to the best interest of the Company, and with respect to any
criminal proceeding, shall not create a presumption that such person believed that his conduct was unlawful. The indemnification
provided herein shall be applicable whether or not negligence or gross negligence of the Indemnitee is alleged or proven. Notwithstanding
the foregoing, in the case of any Proceeding brought by or in the right of the Company, Indemnitee shall not be entitled to indemnification
for any claim, issue or matter as to which Indemnitee has been adjudged by a court of competent jurisdiction, after exhaustion
of all appeals therefrom, to be liable to the Company or for amounts paid in settlement to the Company, unless and only to the
extent that, the court in which the Proceeding was brought or another court of competent jurisdiction determines, on application,
that in view of all the circumstances, the person is fairly and reasonably entitled to indemnity for such expenses as the court
deems proper.

 

2.2          Notwithstanding
anything in this Agreement to the contrary, the Company shall not be obligated under this Agreement to continue to indemnify Indemnitee
with respect to:

 

2.2.1           the
reporting or accounting of profits made from the purchase or sale by Indemnitee of securities of the Company within the meaning
of Section 16 of the Securities Exchange Act of 1934 as amended, or similar provisions of any state statutory or common law;

 

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2.2.2           any
attempt to acquire, or obtain voting rights with respect to, at least fifty percent (50%) of the then outstanding voting stock
of the Company, whether by tender offer, proxy solicitation or otherwise, if (a) Indemnitee attempted to acquire or obtain voting
rights with respect to such stock or was or became a member of a group consisting of two (2) or more persons that had agreed (whether
formally or informally and whether or not in writing) to act together for the purpose of acquiring, obtaining voting rights with
respect, holding, voting or disposing of such stock, and (b) such attempt to acquire or obtain voting rights with respect to such
stock was not approved by a majority of the directors of the Company. For purposes of determining whether any tender offer, proxy
solicitation or other transaction constituted an attempt by Indemnitee, or a group (as described above) of which Indemnitee was
or became a member, to acquire or obtain voting rights with respect to at least fifty percent (50%) of the then outstanding voting
stock of the Company, there shall be counted toward the required number of shares of voting stock any shares which, immediately
prior to the commencement of such tender offer, proxy solicitation or other transaction, (x) were owned by Indemnitee or any member
of any such group, (y) Indemnitee or any member of any such group had the right to vote, or (z) Indemnitee or any member of any
such group had the right to acquire;

 

2.2.3           any
solicitation of proxies by Indemnitee, or by a group of which he was or became a member consisting of two or more persons that
had agreed (whether formally or informally and whether or not in writing) to act together for the purpose of soliciting proxies,
in opposition to any solicitation of proxies approved by the Company’s Board of Directors; or

 

2.2.4           any
act or omission by Indemnitee that constitutes a breach of or default under any agreement between Indemnitee and the Company.

 

2.3          Subject
to Section 3, Indemnitee shall be paid promptly by the Company all amounts necessary to effectuate the indemnity described in
Section 2.1.

 

3.           Choice
of Counsel. Indemnitee shall be entitled to employ, and be reimbursed for the fees and disbursements of, counsel separate from
that chosen by any other person or persons whom the Company is obligated to indemnify with respect to the same or any related or
similar Proceeding.

 

4.           Advancement
of Expenses.         All reasonable Expenses incurred by or on behalf of Indemnitee
shall be advanced from time to time by the Company to him within thirty (30) days after the receipt by the Company of a written
request for an advance of Expenses, whether prior to or after final disposition of a Proceeding (except to the extent that there
has been a Final Adverse Determination that Indemnitee is not entitled to be indemnified for such Expenses), including without
limitation any Proceeding brought by or in the right of the Company; provided, however, that Indemnitee shall not
be entitled to the advancement of Expenses in connection with any Proceeding relating to his termination by or resignation from
the Company or arising out of the circumstances described in Section 2.2 above. The written request for and advancement of any
and all Expenses under this paragraph shall contain reasonable detail of the Expenses incurred by Indemnitee. Indemnitee hereby
agrees to repay the Company the amounts advanced if it is ultimately determined that Indemnitee is not entitled to be indemnified
pursuant to the terms of this Agreement.

 

5.           Additional
Limitations. The foregoing indemnity and advancement of Expenses shall apply only to the extent that Indemnitee has not been
indemnified and reimbursed pursuant to such insurance as the Company may maintain for Indemnitee’s benefit, or otherwise;
provided, however, that notwithstanding the availability of such other indemnification and reimbursement, Indemnitee may claim
indemnification and advancement of Expenses pursuant to this Agreement by assigning to the Company, at its request, Indemnitee’s
claims under such insurance to the extent Indemnitee has been paid by the Company.

 

6.           Insurance
and Funding. The Company may purchase and maintain insurance to protect itself and/or Indemnitee against any Expenses in connection
with any Proceeding to the fullest extent permitted by applicable laws. The Company may create a trust fund, grant an interest
in assets or use other means (including, without limitation, a letter of credit) to ensure the payment of such amounts as may be
necessary to effect indemnification or advancement of Expenses as provided in this Agreement. If, at the time the Company receives
notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness or otherwise), the Company
has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers
in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable
action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance
with the terms of such policies.

 

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7.           Procedure
for Determination of Entitlement to Indemnification.

 

7.1         Whenever
Indemnitee believes that he is entitled to indemnification pursuant to this Agreement (other than pursuant to Section 4 above),
Indemnitee shall submit a written request for indemnification to the Company. Any request for indemnification shall include sufficient
documentation or information reasonably available to Indemnitee to support his claim for indemnification. Indemnitee shall submit
his claim for indemnification within a reasonable time not to exceed five (5) years after any judgment, order, settlement, dismissal,
arbitration award, conviction, acceptance of a plea of nolo contendre or its equivalent, final termination or other disposition
or partial disposition of any Proceeding, whichever is the later date for which Indemnitee requests indemnification. The president
or the secretary or other appropriate officer of the Company shall, promptly upon receipt of Indemnitee’s request for indemnification,
advise the Board of Directors of the Company in writing that Indemnitee has made such request. Determination of Indemnitee’s
entitlement to indemnification shall be made not later than sixty (60) days after the Company’s receipt of the written request
for such indemnification. If no determination has been made in such 60-day period, the Company shall be deemed to have approved
the request.

 

7.2         The
Indemnitee shall be entitled to select the forum in which Indemnitee’s request for indemnification will be heard, which selection
shall be included in the written request for indemnification required in Section 7.1 above. The forum shall be any one of the following:

 

7.2.1           The
stockholders of the Company;

 

7.2.2           A
quorum of the Board of Directors consisting of Disinterested Directors; or

 

7.2.3           Independent
Legal Counsel, who shall make the determination in a written opinion.

 

7.3         Upon
making a request for indemnification, Indemnitee shall be presumed to be entitled to indemnification under this Agreement
and the Company shall have the burden of proof to overcome that presumption in reaching any contrary determination. The
termination of any Proceeding by judgment, order, settlement, arbitration award or conviction, or upon a plea of nolo
contendre or its equivalent shall not affect this presumption or, except as provided in Section 2 or 5 hereof, establish a
presumption with regard to any factual matter relevant to determining Indemnitee’s rights to indemnification
hereunder.

 

7.4         The
Company agrees to pay the reasonable fees and expenses of Independent Legal Counsel should such counsel be retained to make
a determination of Indemnitee’s entitlement to indemnification pursuant to Section 7 of this Agreement, and to fully
indemnify such counsel or by any of them arising out of or relating to this Agreement or their engagement pursuant hereto,
except with respect to expenses and losses resulting from the negligence or willful misconduct of such counsel.

 

8.           Undertaking
By Indemnitee. Indemnitee hereby undertakes to repay to the Company any advances of Expenses pursuant to this Agreement to
the extent that it is ultimately determined that Indemnitee is not entitled to indemnification.

 

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9.           Remedies
of Indemnitee.

 

9.1           In
the event that (i) a determination pursuant to Section 7 hereof is made that Indemnitee is not entitled to indemnification, (ii)
advances of Expenses are not made pursuant to this Agreement, (iii) payment has not been timely made following a determination
of entitlement to indemnification pursuant to this Agreement, or (iv) Indemnitee otherwise seeks enforcement of this Agreement,
Indemnitee shall be entitled to a final adjudication in any court of competent jurisdiction of his rights. The Company shall not
oppose Indemnitee’s right to indemnification under this Agreement and the Company shall have the burden of proof to overcome
that presumption.

 

9.2           In
the event that a determination that Indemnitee is not entitled to indemnification, in whole or in part, has been made
pursuant to Section 7 hereof, the decision in the judicial proceeding provided in Section 9.1 shall be made de novo and
Indemnitee shall not be prejudiced by reason of a determination that he or she is not entitled to indemnification.

 

9.3           If
a determination that Indemnitee is entitled to indemnification has been made pursuant to Section 7 hereof or otherwise
pursuant to the terms of this Agreement, the Company shall be bound by such determination in the absence of (i)
misrepresentation of a material fact by Indemnitee or (ii) a specific finding (which has become final) by a court of
competent jurisdiction that all or any part of such indemnification is expressly prohibited by Nevada law.

 

10.         Modification,
Waiver, Termination, and Cancellation. No supplement, modification, termination, cancellation or amendment of this Agreement
shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a
continuing waiver.

 

11.         Notice
by Indemnitee and Defense of Claim. Indemnitee shall promptly notify the Company in writing upon being served with any summons,
citation, subpoena, complaint, indictment, information or other document relating to any matter, whether civil, criminal, administrative
or investigative, but the omission to notify the Company will not relieve it from any liability which it may have to Indemnitee
if such omission does not prejudice the Company’s rights. If such omission does prejudice the Company’s rights, the
Company will be relieved from liability only to the extent of such prejudice, and such omission shall not relieve the Company from
any liability which it may have to Indemnitee otherwise than under this Agreement.

 

12.         Settlement
of Claims. The Company shall not be liable to indemnify Indemnitee under this Agreement for any
amounts paid in settlement of any Proceeding effected without the Company's written consent. The Company shall not settle any Proceeding
in any manner which would impose any penalty or limitation on Indemnitee's rights under this Agreement without Indemnitee's written
consent. Neither the Company nor Indemnitee will unreasonably withhold its or his consent to any proposed settlement. The Company
shall not be liable to indemnify Indemnitee under this Agreement with regard to any judicial award if the Company was not given
a reasonable and timely opportunity, at its expense, to participate in the defense of such action.

 

13.         Continuation
Of Indemnity. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is
a director, officer, agent, or advisor of the Company (or is or was serving at the request of the Company as a director, officer,
employee, agent, or advisor of another corporation, partnership, joint venture, trust, limited liability company, or other enterprise)
and shall continue thereafter so long as Indemnitee shall be subject to any possible Proceeding.

 

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14.        Partial
Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some
or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for
the portion of such Expenses to which Indemnitee is entitled.

 

15.        Notices.
All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed to have been duly given
if delivered personally or by overnight courier such as Federal Express, or sent by certified or registered mail with postage prepaid,
addressed as:

 

	 	If to Indemnitee, to:	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	If to the Company, to:	 	2240 Auto Park Way	 
	 	 	 	Escondido, California 92029	 
	 	 	 	Attn: President	 
	 	 	 	 	 
	 	With a copy to:	 	John P. Yung, Esq.	 
	 	 	 	Locke Lord LLP	 
	 	 	 	500 Capitol Mall, Ste 1800	 
	 	 	 	Sacramento, CA 95814	 

 

or to such other address as may have been
furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. Notices given as set forth herein shall
be conclusively deemed to have been received by the party to whom addressed upon receipt, if delivered personally or by overnight
courier, and three business days after the same is deposited in the United States mail if sent by certified or registered mail.

 

16.         Non-exclusivity.
The indemnification and advancement of Expenses provided by this Agreement shall not be deemed exclusive of any other rights to
which Indemnitee may be entitled under the Articles of Incorporation or Bylaws, the Chapter 78 of the Nevada Revised Statutes,
any policy or policies of directors' and officers' liability insurance, any agreement, or otherwise, both as to action in his official
capacity and as to action in another capacity while holding such office. However, Indemnitee shall reimburse the Company for amounts
paid to him under this Agreement in an amount equal to any payments received pursuant to such other rights to the extent such payments
duplicate any payments received pursuant to this Agreement.

 

17.         Certain
Definitions.

 

17.1         “Disinterested
Director” shall mean a director of the Company who is not or was not a party to the Proceeding in respect of which indemnification
is being sought by Indemnitee.

 

17.2         “Expenses”
shall include, without limitation, any judgments, fines, and penalties against Indemnitee in connection with a Proceeding; amounts
paid by Indemnitee in settlement of a Proceeding; and all attorneys' fees and disbursements, accountants' fees and disbursements,
private investigation fees and disbursements, retainers, court costs, transcript costs, fees of experts, fees and expenses of witnesses,
travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses reasonably incurred by or for Indemnitee in connection with prosecuting, defending, preparing to prosecute
or defend, investigating, or being or preparing to be a witness in a Proceeding or establishing Indemnitee's right or entitlement
to indemnification for any of the foregoing.

 

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17.3         “Final
Adverse Determination” shall mean that a determination that Indemnitee is not entitled to indemnification shall
have been made pursuant to Section 7 hereof and either (i) a final adjudication in a court of competent jurisdiction pursuant
to Section 9.1 hereof shall have denied Indemnitee’s right to indemnification hereunder, or (ii) Indemnitee shall have
failed to file a complaint in a court of competent jurisdiction pursuant to Section 9.1 for a period of one hundred twenty
(120) days after the determination made pursuant to Section 7

hereof.

 

17.4         “Independent
Legal Counsel” shall mean a law firm or a member of a law firm selected by the Company and approved by Indemnitee (which
approval shall not be unreasonably withheld) and that neither is presently nor in the past five years has been retained to represent:
(i) the Company or any of its subsidiaries or affiliates, or Indemnitee or any corporation as to which Indemnitee was or is a director,
officer, employee or agent, or any subsidiary or affiliate of such a corporation, in any material matter, or (ii) any other party
to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term Independent Legal
Counsel shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a
conflict of interest in representing the Company or Indemnitee in an action to determine Indemnitee’s right to indemnification
under this Agreement.

 

17.5         “Proceeding”
shall include any threatened, pending, or completed action, suit, or proceeding, whether brought
by or in the right of the Company or otherwise and whether of a civil, criminal, administrative, or investigative nature, in which
Indemnitee was, is, or will be involved as a party, as a witness, or otherwise, by reason of the fact that Indemnitee is or was
a director, officer, agent, or advisor of the Company, by reason of any action taken by him or of any inaction on his part while
acting as a director, officer, agent, or advisor of the Company, or by reason of the fact that he is or was serving at the request
of the Company as a director, officer, employee, agent, or advisor of another corporation, partnership, joint venture, trust, limited
liability company, or other entity or enterprise, in each case whether or not he is acting or serving in any such capacity at the
time any liability or expense is incurred for which indemnification or reimbursement can be provided under this Agreement; provided,
that any such action which is brought by Indemnitee to enforce his rights under this Agreement shall not be a Proceeding without
prior approval of a majority of the board of directors of the Company.

 

18.         Binding
Effect. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their
respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to
all or substantially all of the business or assets of the Company), spouses, heirs and personal and legal representatives.

 

19.         Severability.
If any provision(s) of this Agreement (or any portion thereof) shall be held to be invalid, illegal or unenforceable for any reason
whatsoever, (i) the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be
affected or impaired thereby; and (ii) to the fullest extent legally possible, the provisions of this Agreement shall be construed
so as to give effect to the intent of any provision held invalid, illegal or unenforceable.

 

20.         Applicable
Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Nevada, without
regard to its conflict of laws rules.

 

21.         Attorneys
Fees. In any proceeding brought to enforce any provision of this Agreement, or to seek damages for a breach of any provision
hereof, or when any provision hereof is validly asserted as a defense, the prevailing party shall be entitled to receive from the
other party all reasonable attorneys fees and costs in connection therewith.

 

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22.         Entire
Agreement. This Agreement represents the entire agreement between the parties hereto, and there are no other agreements, contracts
or understandings between the parties hereto with respect to the subject matter of this Agreement, except as specifically referred
to herein or as provided in Section 16 hereof.

 

23.         Amendments,
Termination and Waiver. No supplement, modification, amendment or termination of this Agreement shall be binding unless executed
in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver
of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

24.         Counterparts.
This Agreement may be executed in one or more counterparts (including facsimile), each of which shall be deemed an original and
all of which together shall constitute one and the same Agreement.

 

25.         Subrogation.
In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights,
including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

 

26.         No
Duplication of Payments. The Company shall not be liable under this Agreement to make any payment in connection with any Proceeding
made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under insurance policy, Articles of Incorporation
or otherwise) of the amounts otherwise identifiable hereunder.

 

27.         Contribution.
If the indemnification provided in Section 2 is unavailable, then, in respect of any Proceeding in which the Company is jointly
liable with Indemnitee (or would be if joined in the Proceeding), the Company shall contribute to the amount of Expenses, judgments,
fines, penalties and amounts paid in settlement as appropriate to reflect: (i) the relative benefits received by the Company,
on the one hand, and Indemnitee, on the other hand, from the transaction from which the Proceeding arose, and (ii) the relative
fault of the Company, on the one hand, and of Indemnitee, on the other, in connection with the events which resulted in such Expenses,
judgments, fines, penalties and amounts paid in settlement, as well as any other relevant equitable considerations. The relative
fault of the Company, on the one hand, and of Indemnitee, on the other, shall be determined by reference to, among other things,
the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting
in such Expenses. The Company agrees that it would not be just and equitable if contribution pursuant to this Section 27 were
determined by pro rata allocation or any other method of allocation which does not take account of the equitable considerations
described in this Section 27.

 

[Signatures on following page]

 

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IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the date first written above.

 

	 	COMPANY
	 	 
	 	Flux Power Holdings, Inc.
	 	 
	 	 
	 	By:	 
	 	Name: 	 
	 	 	 
	 	INDEMNITEE
	 	 	 
	 	 	 
	 	Name:	Chris
Anthony

 

    	8Exhibit 10.18

                        SETTLEMENT AGREEMENT AND RELEASE

     This Settlement  Agreement and Release  ("Agreement") is entered into as of
this __ day of June,  2012,  by and  between La Jolla Cove  Investors,  Inc.,  a
California   corporation  ("LJCI")  and  The  X-Change  Corporation,   a  Nevada
corporation  ("XCHC").  LJCI and XCHC will sometimes be referred to individually
as a "Party" and  collectively  as the "Parties"  throughout this Agreement with
respect to the following recitals:

                                    Recitals

     A. WHEREAS, the Parties entered into the following agreements or issued the
following financing documents:

     a.   Securities  Purchase Agreement (the "Securities  Purchase  Agreement")
          dated as of August 29, 2007 between LJCI and XCHC;

     b.   6 1/4% Convertible  Debenture in the principal amount of $250,000 (the
          "Debenture") issued on August 29, 2007 by XCHC to LJCI;

     c.   Warrant to Purchase Common Stock (the "Warrant")  issued on August 29,
          2007 by XCHC to LJCI;

     d.   6 1/4%  Convertible  Debenture  in the  principal  amount of  $150,000
          issued on October 9, 2007 by XCHC to LJCI (the "Second Debenture");

     e.   Warrant to Purchase  Common  Stock (the  "Second  Warrant")  issued on
          October 9, 2007 by XCHC to LJCI; and

     f.   Addendum To Stock Purchase  Agreement And Convertible  Debenture dated
          as of January, 2011 between LJCI and XCHC (the "Addendum");

     B. WHEREAS,  XCHC failed to issue shares to LJCI  following the delivery by
LJCI of a  "Conversion  Notice"  dated July 6, 2011, as defined in the Debenture
and the Second Debenture;

     C. WHEREAS, LJCI did not exercise any warrants to purchase common shares in
connection with three prior conversion notices ("Disputed Conversions") and XCHC
asserts that LJCI was required, under the terms of the Warrant and/or the Second
Warrant to exercise warrants in connection with those conversions;

     D. WHEREAS,  LJCI asserts that it was not required to exercise any warrants
in connection with the Disputed Conversions and a dispute has arisen between the
parties concerning all these matters;
<PAGE>
     E WHEREAS, on or about December 8, 2011, LJCI filed a lawsuit against XCHC,
known as La Jolla Cove Investors,  Inc. vs. The X-Change  Corporation,  Superior
Court Case No. 37-2011-00102204-CU-CO-CTL (the "Lawsuit");

     F. WHEREAS,  XCHC has filed its Answer and Cross-Complaint  against LJCI in
the Lawsuit;

     G WHEREAS,  LJCI and XCHC now want to resolve the  dispute  that has arisen
among them, and desire to enter into this Agreement as a means of fully settling
any claims or causes of action each may have against each other  relating to the
Lawsuit.

     NOW, THEREFORE, the parties hereby agree as follows:

     1. Recitals, Definitions and Condition: The Recitals set forth above are an
integral part of this Agreement, and shall be used in any interpretation of this
Agreement. All terms used herein and not otherwise defined herein shall have the
meanings set forth in the Securities  Purchase  Agreement,  the  Debenture,  the
Second Debenture,  the Warrant, the Second Warrant or the Addendum,  as the case
may be.

     2. Obligation to Sign New Addendum. On or before June 15, 2012, the parties
shall each execute an addendum to their agreements ("New Addendum"), in the form
attached hereto as Exhibit "A" and incorporated herein by this reference.

     3.  Obligation of LJCI.  On or before July 1, 2012,  LJCI shall dismiss the
Lawsuit  without  prejudice.  On or before July 1, 2012,  XCHC shall dismiss its
Cross-Complaint against LJCI in the Lawsuit without prejudice.

     4.  General   Release.   Except  for  (i)  claims  arising  for  breach  or
non-performance  of the terms and conditions of this  Agreement,  LJCI and XCHC,
and  on  behalf  of  their  respective  agents,  attorneys,   heirs,  executors,
beneficiaries,  administrators, successors and assigns, hereby fully and forever
release, remise, discharge, and acquit the other party (and such party's agents,
attorneys,  beneficiaries,  administrators,  heirs,  executors,  successors  and
assigns)  from and against any and all claims and causes of action of every kind
and nature, whether at this time known or unknown, anticipated or unanticipated,
direct or indirect,  which may presently  exist or may hereafter arise or become
known, and which such party may or might have by reason of or otherwise  arising
in connection with his interest in or relating to the Lawsuit.

     It is further agreed and  understood  that all rights under Section 1542 of
the  California  Civil Code  pertaining to unknown  claims are hereby  expressly
waived with  respect to such  unknown  claims  that are related to the  Lawsuit.
Section 1542 provides as follows:

                                       2
<PAGE>
          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.

LJCI and XCHC each  hereby  acknowledge,  agree and  certify  that each has read
Section 1542 set out above,  has considered and understands the implications and
risks  involved  with waiving its  application,  and, by each  party's  initials
below, freely and intentionally waive its protection and application.

     5.  Representations  and Warranties.  Each of the parties to this agreement
represent and warrant to, and agree with, each other party hereto, as follows:

     (a) Each party or responsible  officer  thereof has read this agreement and
understands the contents thereof.

     (b) In entering into this agreement and the settlement provided for herein,
each party assumes the risk of any misrepresentation,  concealment,  or mistake.
If any party should  subsequently  discover  that any fact relied upon by him in
entering into this agreement was untrue,  or that a fact was concealed from him,
or that his  understanding  of the facts or the law was  incorrect,  such  party
shall not be entitled to any relief in connection therewith,  including, but not
limited to, any alleged  right or claim to set aside or rescind this  agreement.
This  agreement  is intended  to be and is final and  binding  among the parties
hereto,  regardless  of any claims of  misrepresentation,  promise  without  the
intent to  perform,  concealment  of fact,  mistake of fact or law, or any other
circumstance.

     (c) Each party has not heretofore  assigned,  transferred,  or granted,  or
purported  to  assign,  transfer,  or grant,  any of the  claims,  demands,  and
cause(s) of action disposed of by this agreement.

     (d) Each term of this agreement is contractual and not merely a recital.

     (e) Each party is aware  that he or she may  hereafter  discover  claims or
facts in addition to or  different  from those he or she knows or believes to be
true  with  respect  to the  matters  related  herein.  Nevertheless,  it is the
intention of the parties fully,  finally,  and forever to settle and release all
such matters and all claims relative  hereto,  which do now exist, may exist, or
heretofore have existed between them,  except as to such rights or claims as may
be created by this  agreement.  In furtherance of such  intention,  the releases
given herein shall be and remain in effect as full and complete  mutual releases
of  all  such  matters,  notwithstanding  the  discovery  or  existence  of  any
additional or different claims or facts relative thereto.

                                       3
<PAGE>
     (f) It is within the  contemplation  of each party to this  agreement,  and
understood  by each  party to this  agreement,  that  this  agreement  is not an
admission  of  liability  by way of the parties  hereto and is a  compromise  of
disputed claims. Nothing in this agreement shall be construed as an admission of
liability or  responsibility  on the part of any party  hereto.  This  agreement
affects the  settlement  of claims which are denied and  contested.  Each of the
parties hereto denies any liability in connection with any claim. This agreement
and the settlement  terms embodied herein are  confidential  and are intended to
remain confidential following execution.

     6. Attorneys' Fees. In the event of any action or proceeding arising out of
or relating to this Agreement,  its breach or enforcement,  including any action
for declaratory  relief or specific  performance,  the prevailing  party in such
action or proceeding shall be entitled to recover all court costs,  expenses and
reasonable attorneys' fees to be fixed by the court. Such recovery shall include
court costs,  expenses and  attorneys'  fees on appeal,  if any. The court shall
determine  the  prevailing  party,  whether or not the  dispute  or  controversy
proceeds to final judgment.

     7.  Successors and Assigns.  All terms of this  Agreement  shall be binding
upon,  and inure to the benefit of and be  enforceable by the parties hereto and
their respective legal representatives, successors and assigns.

     8. Modification. No modification, waiver, amendment, discharge or change of
this  Agreement  shall be valid  unless the same is in writing and signed by the
party against which the  enforcement of such  modification,  waiver,  amendment,
discharge or change is or may be sought.

     9.  California  Law.  This  Agreement  shall be  construed  and enforced in
accordance with the laws of the State of California.

     10. No Pursuit of Actions.  The Parties hereto covenant and agree that they
will not  individually  or in  concert  with any other  person  or entity  file,
commence, prosecute, or pursue (or cause to be filed, commenced,  prosecuted, or
pursued)  against  any  person or entity  released  herein  any  action or other
proceeding based upon any claim, demand, cause of action, obligation, damage, or
liability which is/are the subject of the releases contained herein.

     11. No Admission of Liability.  The Parties understand and acknowledge that
this Agreement constitutes a compromise and settlement of disputed claims and is
made to buy peace and for no other reason. No action taken by the Parties hereto
either  previously  or in  connection  with  this  Agreement  shall be deemed or
construed to be an  admission  of the truth or falsity of any claims  heretofore
made, or an  acknowledgement or admission by any Party of any fault or liability
whatsoever to the other Parties or third parties.

     12.  Authority.  The Parties  represent  and warrant  that the  undersigned
individuals  have the  authority to act on behalf of the signing  Party and have
the  authority  to bind that  Party,  and all that may claim  through it, to the
terms and conditions of this Agreement.  Each Party warrants and represents that
there are no liens or claims of lien or  assignment or equity or otherwise of or
against any of the claims or causes of action released herein.

                                       4
<PAGE>
     13.  Representation.  The Parties represent and warrant that they each have
had an  opportunity  to consult with an attorney,  and have  carefully  read and
understand  the scope and effect of the provisions of this  Agreement.  No Party
has relied upon any representations or statements made by any other Party, which
are not  specifically  set forth in this Agreement.  Each of the Parties warrant
and represent that in executing this  Agreement,  such Party has relied on legal
advice from the attorney of its choice, that the terms of this Agreement and its
consequences  have been  completely  read and  explained  to such  Party by that
attorney, and that such Party fully understands the terms of this Agreement.

     14. No Prior Assignment; Indemnity. Each Party represents and warrants that
it is the sole and lawful owner of all right, title and interest in and to every
claim and other matter which it purports to release herein,  and that such Party
has not hereto assigned or transferred,  or purported to assign or transfer,  to
any person or entity any  right,  title or  interest  in any  claims,  future or
current,  have been or could have been  released in this dispute or other matter
herein  released.   In  the  event  that  any  Party  shall  have  assigned  and
transferred,  or  purported  to assign or  transfer,  any claim or other  matter
herein released, such Party shall indemnify,  defend and hold harmless the other
Parties from and against any loss, cost, or claim or expense (including, but not
limited  to, all costs  related to  defense of any action  including  reasonable
attorneys' fees) based upon, arising out of or occurring as a result of any such
claim or assignment to transfer. Each Party further warrants and represents that
each and every  successor  to the  respective  Parties,  and any  party  that is
granted an assignment of claims by the respective Parties,  will be bound by the
terms of this Agreement.

     15.  Confidentiality.   The  Parties  hereby  agree  that  they  and  their
affiliates,  attorneys  and/or  other  representatives  will  not,  directly  or
indirectly,  disclose  to  anyone  not a  Party  hereto  the  facts,  terms  and
conditions of this Agreement,  except:  (i) as necessary to enforce the terms of
this Agreement;  (ii) as reasonably  necessary in connection with any audits, or
financial or legal due diligence; (iii) insofar as it is necessary to reveal the
terms hereof to their  attorneys,  accountants,  and/or tax  preparers;  (iv) in
response  to a  properly  issued  subpoena;  (v) in  response  to  inquiries  or
investigations  by local,  state or federal  authorities  or  agencies;  (vi) in
filings with the SEC or (vii) as may be otherwise  required by law. In the event
of a subpoena or other compulsory  process that would require  disclosure to the
non-party, the Party receiving such process shall give to the other Party prompt
notice  thereof so as to permit the  opportunity  for such Party to contest  the
disclosure.

     16.  Severability.  In the event that any provision hereof becomes declared
by a court of competent jurisdiction to be illegal,  unenforceable or void, this
Agreement  shall  continue  in  full  force  and  effect  without  said  illegal
provision,  so long as the general  purpose and intent of this  Agreement can be
achieved.

     17. Entire  Agreement.  This Agreement  represents the entire agreement and
understanding  between the  Parties,  and  represents  the  complete,  final and
exclusive  embodiment of their agreement concerning the matters set forth in the
Recitals.  Further, this Agreement shall supersede and replace any and all prior
and contemporaneous agreements, representations and understandings regarding the
subject of this Agreement.  No representation,  inducements,  or agreement among
the Parties not  contained  or embodied  herein shall be of any force or effect.
Notwithstanding  the provisions of California  Evidence Code Section 1152,  this
Agreement is admissible for purposes of enforcement.

                                       5
<PAGE>
     18.  Acknowledgement.  Each  Party  acknowledges  that  it  has  read  this
Agreement in its entirety, that it understands the terms of this Agreement, that
the Agreement shall be binding upon its legal representatives,  successors,  and
assigns,  and that it sought advice from counsel as it deemed necessary in order
to understand the meaning of this Agreement.

     19.  Governing  Law.  This  Agreement  shall be governed by the laws of the
State  of  California,   including  all  matters  of   construction,   validity,
performance,  and  enforcement  and without  giving effect to the  principles of
conflict of laws.

     20.  Counterparts.  This Agreement may be executed in counterparts and each
counterpart  shall have the same force and effect as an original and  constitute
an effective,  binding  agreement on the part of each of the  undersigned.  This
Agreement may be transmitted by facsimile or otherwise.

     21. No  Construction  Against the Drafter.  This Agreement  shall be deemed
jointly  drafted and written by all Parties to it and shall not be  construed or
interpreted  against any particular Party,  regardless of which Party or counsel
originated or drafted any portion of it.

     22.  Notices.  Any  notices,  consents,  waivers,  or other  communications
required or permitted to be given under the terms of this  Agreement  must be in
writing  and will be  deemed  to have  been  delivered  (i) upon  receipt,  when
delivered personally; (ii) upon confirmation of receipt, when sent by facsimile;
(iii) on the date of actual  receipt,  when being sent by U.S.  certified  mail,
return receipt  requested,  or (iv) on the date of actual receipt when deposited
with an  internationally  recognized  overnight  delivery service,  in each case
properly  addressed to the Party to receive the same.  The address and facsimile
numbers for such communications shall be:

     If to XCHC, to:

     The X-Change Corporation
     12655 North Central Expressway Suite 1000
     Dallas, TX 75243
     Telephone: (972) 386-7360

     With a copy to:

     McDowell Odom LLP
     Attn: Claudia J. McDowell, Esq.
     28494 Westinghouse Place Suite 213
     Valencia, CA 91355
     Telephone: (661) 449-9630
     Facsimile: (818) 475-1819
     claudia@mcdowellodom.com

                                       6
<PAGE>
     If to LJCI, to:

     La Jolla Cove Investors, Inc.
     1150 Silverado Street, Suite 203
     La Jolla, California 92037
     Telephone: (858) 551-8789
     Facsimile: (858) 551-8779

Each Party may change its  foregoing  address by notice  given  pursuant to this
Section.

     23. Survival of Warranties. The representations and warranties contained in
this Agreement are deemed to and do survive the execution hereof.

     24. No  Implied  Waiver.  No action or failure  to act shall  constitute  a
waiver of any right or duty afforded under this Agreement,  nor shall any action
or failure to act  constitute  an approval of, or  acquiescence  in, any breach,
except as may be  specifically  agreed in writing.  Waiver of any one  provision
herein shall not be deemed to be a waiver of any other provision herein.

     IN WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of
the date first above written.

The X-Change Corporation, a Nevada        La Jolla Cove Investors, Inc., a
corporation                               California corporation

By:                                       By:
    -------------------------------           ----------------------------------
Name:                                     Name:
     ------------------------------            ---------------------------------
Title:                                    Title:
      -----------------------------             --------------------------------

                                       7
<PAGE>
                 EXHIBIT "A" TO SETTLEMENT AGREEMENT AND RELEASE

                    ADDENDUM TO SECURITIES PURCHASE AGREEMENT
                           AND CONVERTIBLE DEBENTURES

This  Addendum to  Securities  Purchase  Agreement  and  Convertible  Debentures
("Addendum")  is entered into as of the __ day of June,  2012 by and between The
X-Change  Corporation,  a Nevada  corporation  ("Company"),  and La  Jolla  Cove
Investors, Inc., a California corporation ("LJCI").

WHEREAS,  LJCI and  Company  are  parties  to that  certain  6 1/4%  Convertible
Debenture in the principal amount of $250,000 that was issued on August 29, 2007
by  Company  to LJCI  (the  "Debenture")  pursuant  to that  certain  Securities
Purchase Agreement dated as of August 29, 2007 between the Company and LJCI (the
"Purchase Agreement"), the 6 1/4 % Convertible Debenture in the principal amount
of  $150,000  that was  issued on  October  9, 2007 by the  Company to LJCI (the
"Second  Debenture"),  a Warrant to Purchase Common Stock (the "Warrant") issued
on August 29, 2007 by XCHC to LJCI and a Warrant to Purchase  Common  Stock (the
"Second Warrant") issued on October 9, 2007 by XCHC to LJCI;.

WHEREAS, the Parties agree that as of June 1, 2012, the balance of the Debenture
is $140,225,  plus $35,215.70 in accrued interest, and the balance of the Second
Debenture is $145,000, plus $34,915.80 in accrued interest.

WHEREAS,  the parties now desire to amend the Debenture,  Second Debenture,  the
Warrant and Second Warrant in certain respects.

NOW, THEREFORE,  in consideration of the mutual promises and covenants contained
herein,  and  for  other  good  and  valuable  consideration,  the  receipt  and
sufficiency of which are hereby acknowledged, XCHC and LJCI agree as follows:

     1.   The Recitals set forth above are an integral  part of this  Agreement,
          and  shall  be  used in any  interpretation  of  this  Agreement.  All
          capitalized  terms used and not  defined  herein  have the  respective
          meanings assigned to them in the Debenture.

     2.   The Maturity  Dates of the Debenture  and Second  Debenture are hereby
          extended to December 31, 2013.

                                       8
<PAGE>
     3.   The Expiration Dates (as defined in the Warrant and Second Warrant) of
          the Warrant and Second  Warrant  are hereby  extended to December  31,
          2013.

     4.   During the term of the  Debenture  and Second  Debenture,  the parties
          agree that all  conversions  will be  accompanied  by a  corresponding
          warrant  exercise  pursuant to the terms of the Warrant  and/or Second
          Warrant,,   except  as  permitted  in  the  Debenture   and/or  Second
          Debenture, as amended.

     5.   Section 3.1(c) in the Debenture and Second  Debenture shall be deleted
          in its entirety and replaced with the following:

          Section  3.1(c):  If the  Holder  elects to  convert a portion  of the
          Debenture  and,  on the day that the  election  is  made,  the  Volume
          Weighted  Average  Price is below  $0.30,  the Company  shall have the
          right to prepay that portion of the Debenture  that Holder  elected to
          convert, plus any accrued and unpaid interest, at 120% of such amount.
          In the event that the  Company  elects to prepay  that  portion of the
          Debenture,  Holder  shall have the right to  withdraw  its  Conversion
          Notice.  If, at anytime during the month,  the Volume Weighted Average
          Price is below  $0.30,  Holder  shall not be  obligated to convert any
          portion of the Debenture  during that month. If at any time during the
          term of this  Debenture (i) the Company has not authorized or reserved
          enough  shares of its Common  Stock to account for the  conversion  of
          this  Debenture and the exercise of the Warrant  Shares (as defined in
          the  Warrant)  and the  issuance of shares of the Common  Stock of the
          Company to Holder in connection  therewith;  and/or (ii) the Holder is
          prohibited for any reason,  including without limitation in connection
          with any  claim,  suit,  federal  or  state  law,  regulation,  order,
          interpretation,   statute,   or  similar  authority,   from  otherwise
          converting  this Debenture and, in connection  with such conversion of
          the Debenture,  exercising  such portion of the Warrant as is required
          under  the  terms  of the  Warrant,  then  the  Holder  shall  have no
          obligation  to  exercise  any portion of the  Warrant,  and Holder may
          elect in Holder's sole and absolute  discretion to convert any portion
          of the  outstanding  Principal  Amount and accrued and unpaid interest
          under this  Debenture into such amount of Common Shares of the Company
          equal to the dollar amount of the Debenture being converted divided by
          the Conversion Price.

     6.   All terms used herein and not otherwise  defined herein shall have the
          definitions  set forth in the  Securities  Purchase  Agreement  or the
          Debentures or the Warrants, as the case may be.

     7.   This  Addendum,  the  Debentures,  the  Warrants  and  the  Securities
          Purchase  Agreement  between LJCI and Company each constitute a legal,
          valid and binding  obligation  of both  parties and any  successor  or
          resulting  corporation  by  way  of  merger,  consolidation,  sale  or
          exchange of all or substantially  all of the assets of either party or
          otherwise, each enforceable in accordance with its respective terms.

                                        9
<PAGE>
     8.   Except as specifically  amended herein, all other terms and conditions
          of the  above-referenced  documents  shall  remain  in full  force and
          effect.

IN WITNESS  WHEREOF,  Company and LJCI have caused this Addendum to be signed by
its duly authorized officers on the date first set forth above.

The X-Change Corporation                  La Jolla Cove Investors, Inc.

By:                                       By:
    -------------------------------           ----------------------------------
Name:                                     Name:
     ------------------------------            ---------------------------------
Title:                                    Title:
      -----------------------------             --------------------------------

                                       10

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