Document:

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (" Agreement"), dated as of July 1, 2015 (the "Effective Date"), by and between Capstone Industries, Inc., a Florida Corporation (the "Company"), and George Wolf, (the "Consultant"), located at 7687 NW 127111 Manor, Parkland, FL 33076.

WHEREAS, the Company desires to have the Consultant perform certain functions for the Company, and the Consultant desires to perform such functions for the Company, all as more fully set forth herein.

NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Consultant does hereby agree with the Company as follows:

	
1.

	
Scope of Work. During the term of this Agreement, the Consultant shall perform the consulting and advisory services as the Consultant and the Company may mutually agree (the "Services"). The Service shall be performed in a professional manner reasonably satisfactory to the Company; provided, however, that the time, location and manner of performance of the Services shall be within the discretion of the Consultant.

	
(a)

	
Provide Support to Sales/Marketing

	
1.

	
As requested the Consultant will assist with developing and formulating sales strategies and participate in key account presentations.

		11.	
As requested the Consultant will assist with developing and formulating strategies for new product development.

	
(b)

	
Establish Protocol for a Global Sales Operation Function

The Consultant shall be responsible for defining and organizing a Global Sales Operation Protocol for review and approval by the Company

	
(c)

	
Manage Sales Operation Function

The Consultant shall be responsible for managing Sales Operation and assist in hiring and training of an individual to manage Sales Operation for the Company in the future.

	
2.

	
Compensation.

	
(a)

	
Rate and Expenses. The Company shall pay the Consultant the rate for the Services provided hereunder (the "Compensation").

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1. July 1, 2015 - December 31, 2015 - $10,500.00 per month

11. January 1, 2016-December 21, 2017 - $12,500.00 per month

111. Company expenses incurred reimbursed subject to approval

	
(b)

	
Taxes. The Consultant shall be responsible for the filing and payment of all federal, state, provincial, and local taxes and contributions imposed or required under unemployment insurance, social security, income, capital gains and other tax laws relating to the Compensation (the "Taxes and Contributions"). If the Consultant fails to file and pay all Taxes and Contributions that it is required to file and pay, and the Company is required to pay the Consultant' s Taxes and Contributions on its behalf, the Consultant shall reimburse the Company for the amount of such Taxes and Contributions.

	
3.

	
Covenant Not to Solicit. During the term of this Agreement and for a period of two (2) years immediately following the termination of this Agreement, the Consultant (i) shall neither directly nor indirectly induce, advise or encourage any employee, agent, consultant or independent contractor of the Company or any of the Company's subsidiary or affiliated companies to terminate his, her or its relationship with such person or entity; attempt to hire or retain or cause the hiring or retaining of, any such employee, agent, consultant or independent contractor, with another or third party, person or entity, except with the specific written consent of the Company in advance

	
4.

	
Confidential Information.

	
(a)

	
Covenant of Nondisclosure. Except as required by law, the Consultant shall not, at any time, directly or indirectly, use, publish, disseminate or otherwise disclose any Confidential Information (defined below) relating to or arising from the Services, any services provided to the Company prior to the date hereof, the financial terms of this Agreement, or the present, past or prospective business of the Company to any third party without the prior written consent of the Company.

	
(b)

	
Definition. "Confidential Information" means secret or proprietary information which is disclosed to or learned by the Consultant or developed by the Consultant in performing the Services at any time during the term of this Agreement or during the Consultant's performance of services to the Company prior to the date hereof, including without limitation inventions, discoveries, trade secrets, and know-how; computer software code, designs, routines, algorithms, and structures; product information; research and development information; lists of clients and other information relating thereto; financial data and information; business plans and processes; and any other information of the Company that the Company informs or informed the Consultant, or that the Consultant should know by virtue of its position, is non-public or is otherwise to be kept confidential; provided, however that "Confidential Information" shall not include information which (i) was generally available at the time of disclosure to the Consultant or becomes generally available to the public thereafter, other than as a result of disclosure by the Consultant, (ii) the Consultant can demonstrate was in the Consultant's possession or was available to the Consultant on a non-confidential basis, prior to its engagement by the Company,

or (iii) becomes available to the Consultant from a third party who is under no obligation t

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maintain the confidentiality of such information. It is understood that many snippets of code within the product are by their nature generic and not considered proprietary under the terms of this agreement.

	
(c)

	
Additional Requirements. The Consultant agrees that, before disclosing any Confidential Information to any employee, agent, independent contractor or subcontractor (collectively, the "Consultant Agents"), the Consultant shall ensure that such Consultant Agent has agreed in writing to be bound by similar obligations of confidentiality as this Section 4 with respect to the Confidential Information.

	
(d)

	
Return of Property. The Consultant agrees that all such Confidential Information, in whatever form, (including all copies thereof) that came or come into the Consultant's possession or control, whether prepared by the Consultant or others: (a) is the property of the Company, (b) will not be used by the Consultant in any way except in the performance of the Services, and (c) upon the request of the Company at the termination of this Agreement, will be left with, or forthwith returned by the Consultant to, the Company.

	
(e)

	
Nondisparagement. Each party hereto agrees that it will not (and, in the case of the Company, will cause its will cause management and employees not to) directly or indirectly make or ratify any statement , public or private, oral or written, to any person that disparages, either professionally or personally, the other party or its management , employees or its affiliated or subsidiary companies or that is derogatory or untruthful in any material respect about the other party or its management, employees or its affiliated or subsidiary companies.

	
5.

	
Covenant Not to Compete Through Disclosure of Trade Secrets to Competitors. Except as required by law, the Consultant shall not, directly or indirectly, disclose any trade secrets to any person or entity connected with or interested in any business which performs services that are the same as or that are substantially similar to the services of the Company offered during the term hereof, or which designs , develops , manufactures, prepares, markets, sells, installs , services or distributes products or performs services in direct competition with the Company' s products. Nothing in this Section limits the Consultant's obligation to protect the Company' s Confidential Information set forth in Section 4.

	
6.

	
Work Product and Intellectual Property.

	
(a)

	
Developments. The Consultant agrees, for itself, and its Consultant Agents, that it and they will make prompt written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and will and hereby do assign to the Company all its and their right, title and interest in and to any ideas, inventions , original works of authorship, developments, improvements or trade secrets ("Developments") which (i) it or they have solely or jointly conceived or reduced to practice in the performance of services to the Company during the period prior to the date hereof, or (ii) it or they may solely or jointly conceive or reduce to practice or cause to be conceived or reduced to practice in the performance of the Services and which in any way relate to the Services or result from or are suggested by the Services or the objective for which the Services are being performed. All Developments devised, made, developed or perfected after termination of this Agreement with the Company are within the provisions of the preceding sentence if conceived in whole or material part during the period of

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this Agreement, during the period in which the Consultant or its Consultant Agents performed services to the Company prior to the date hereof, or with the use of Company resources or facilities. The Consultant acknowledges that all original works of authorship which are or were made by it or any employee, agent, independent contractor or subcontractor (solely or jointly with others) within the scope of this Agreement and which are protectable by copyright are "works made for hire," as that term is defined in the United States Copyright Act (17 U.S.C., Section 101). If required by any applicable law in order to give effect to the intent of this paragraph, the Consultant shall be deemed to have sold all right, title and interest in, to and under the Developments to the Company for the Compensation, and the Consultant shall deliver to the Company a bill of sale for the Developments in form reasonably acceptable to the Company.

	
(b)

	
Obtaining Letters Patent, Copyright Registrations and Other Protections. The Consultant and its Consultant Agents will assist the Company in every proper way (at the Company' s sole expense) to obtain and from time to time enforce United States and foreign proprietary rights relating to any and all inventions , mask-works, original works or authorship, developments, improvements or trade secrets of the Company, or which it or they have assigned to the Company, in any and all countries. To that end, the Consultant will execute, verify and deliver such documents and perform such other acts (including appearing as a witness), and shall cause any Consultant Agent to do the same, as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such proprietary rights and its and their assignment thereof to the Company. In addition, the Consultant will execute, verify and deliver, and will cause to be executed, verified and delivered, all assignments of such proprietary rights to the Company or its designee. The Consultant' s obligation to assist the Company with respect to proprietary rights in any and all countries shall continue beyond the termination of this Agreement. The Consultant hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as the Consultant's agent and attorney-in- fact for the Consultant and/or such Consultant Agent, to act for and on behalf of the Consultant and/or such Consultant Agent to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purpose of this paragraph with the same legal force and effect as if executed by an authorized officer of the Consultant and/or by such Consultant Agent. The Consultant hereby waives and quitclaims to the Company any and all claims, of any nature whatsoever, which the Consultant now or may hereafter have for infringement of any proprietary rights assigned by the Consultant to the Company.

	
(c)

	
Shop Rights. The Consultant agrees that the Company shall be entitled to a shop right providing the Company a non-exclusive, royalty-free and irrevocable (although non- transferable and non-assignable) license to make, use and sell any invention or other protectable development (whether patentable or not) conceived or made or authorized by or on behalf of the Consultant which is not within the scope of the above meaning of the term Developments, or within the scope of the term inventions, mask works, original works of authorship, developments, improvements or trade secrets of the Company, but which was conceived or made or authored on the time of the Company or with the use of the facilities or materials of the Company or with the use of Confidential Information of the Company.

4

	
(d)

	
Before assigning any Consultant Agent to work on the Services or sharing any Confidential Information with such Consultant Agent, the Consultant shall ensure that such Consultant Agent has agreed in writing to the provisions of this Section.

	
7.

	
Term and Termination.

	
(a)

	
Except as set forth in Paragraph (b) of this Section 7, this Agreement shall commence on the date hereof and shall remain in full force and effect until December 31, 2017, unless sooner terminated (i) upon 30-days' prior written notice by one party to the other party at any time, or (ii) if either party fails to cure a breach of this Agreement within ten (10) days after receiving written notice thereof, then the non-breaching party may immediately terminate this Agreement upon written notice to the other party. This Agreement may be renewed for successive additional one (1) year terms by mutual consent of the parties.

	
(b)

	
Notwithstanding the foregoing, in the event of a termination of this Agreement, (i) the Company shall remain obligated to pay the Consultant for all work performed through the date of termination, and (ii) the provisions of Sections 3, 4, 5 and 6 shall not terminate, but instead shall survive termination of the Agreement to the extent provided therein.

	
8.

	
Good Faith and Fair Dealing. Each party hereto agrees and covenants that such party shall at all times operate in good faith with a sense of fair dealing vis-a-vis the other party to this Agreement.

	
9.

	
Independent Contractor. The parties agree that no employment relationship is created by this Agreement. The parties hereby agree that the Consultant is an independent contractor, and that this Agreement does not constitute the Consultant an agent, employee, legal representative, joint venture or partner of the Company for any reason whatsoever and neither party is authorized to act on behalf of the other party. The Consultant shall not be subject to the direction and control of the Company as to the means and methods employed by it in performing the Services within the parameters established by the Company.

	
10.

	
Waiver. Any waiver by the Company or by the Consultant of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of the same or any other provision hereof.

	
11.

	
Severability; Reformation. In case any one or more of the provisions or parts of a provision contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement; and this Agreement shall, to the fullest extent lawful, be reformed and construed as if such invalid or illegal or unenforceable provision, or part of a provision, had never been contained herein, and such provision or part reformed so that it would be valid, legal and enforceable to the maximum extent possible. Without limiting the foregoing, if any provision (or part of provision) contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the fullest extent compatible with then existing applicable law.

5

	
12.

	
Survival of Obligations. The Consultant' s obligations under this Agreement shall survive the termination of this Agreement, regardless of the manner of such termination.

	
13.

	
Amendments; Assignments. This Agreement may be amended, modified or assigned in whole or in part, only by an instrument in writing signed by all parties hereto. This Agreement may not be assigned by either party without the prior written consent of the other party, except by the Company to a direct or indirect wholly-owned subsidiary or to any entity that acquires the Company and/or substantially all the assets of the Company.

	
14.

	
Notices. Any notices or other communications required hereunder shall be in writing and shall be deemed given when delivered in person, or upon sending facsimile or e-mail transmission, or when mailed, by certified or registered first-class mail, postage prepaid, return receipt requested , addressed , (a) if to the Company, to the Company' s principal place of business at 350 Jim Moran Boulevard, Suite 120, Deerfield Beach, FL 33442, Attention: CFO, James G. McClinton or, (b) if to the Consultant, to the Consultant' s address set forth on the signature page of this Agreement, or to such other addresses as either party shall have notified the others in accordance with the provisions of this Section 14.

	
15.

	
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original and all of which shall be deemed a single agreement.

	
16.

	
No Violation of Third Party Agreements. The Consultant hereby represents and warrants that the Consultant is not currently employed or retained on an independent contractor basis by any other person, which would conflict with the Services or the other terms of this Agreement, and the Consultant' s execution and delivery of this Agreement and performance of its obligations hereunder do not, and will not, violate the terms of any other contract, agreement or arrangement , whether written or oral, to which the Consultant is a party or otherwise subject, including without limitation any agreement between the Consultant and a former employer or client.

	
17.

	
Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

6

IN WITNESS WHEREOF, each of the parties hereto has caused this Consulting Agreement to be executed as of the date first above written.

Company:

Capstone Companies, Inc.

 

 

By: /s/ Stewart Wallach

Title: CEO

 

Consultant:

 

 

By: /s/ Geroge Wolf

Title: Consultant

 

Address:

7687 NW 127th Manor

Parkland, FL 33076

Signature Page to Consulting Agreement

7

Exhibit A

General Release of All Claims

As a material inducement to the Company to enter into this Agreement, and in consideration of the benefits and other good and valuable consideration, the receipt and sufficiency is hereby acknowledged, you, on behalf of yourself, your heirs, administrators, representatives, executors, successors, and assigns, hereby irrevocably and unconditionally release, acquit, and forever discharge Capstone Industries, Inc. and each of  its  predecessors,  parents,  subsidiaries affiliates, divisions , related entities, successors and assigns, and all of their respective current and former agents, officers, directors , shareholders, employees, members, trustees, fiduciaries, representatives, attorneys and all persons acting by, through, under or in concert with  any of them (the "Released Parties") from any and all charges, complaints,  claims,  liabilities, obligations, promises, agreements, damages, causes of action, suits, demands, losses, debts, and expenses of any nature whatsoever, known or unknown ("Claims") which you have, had or claim to have against any Released Party up to and including the date you sign this Agreement. This General Release of Claims shall include, without limitation, Claims relating to your employment with the Company, Claims of discrimination under the common law or any federal  or state statute (including, without limitation , the Civil Rights Act of 1964, the Americans with Disabilities Act and the Age Discrimination in Employment Act, all as amended), Claims for wrongful discharge , Claims for the payment of any salary, wages, bonuses, commissions, vacation pay, severance pay or benefits, Claims of detrimental reliance, and all other statutory, common law or other Claims of any nature whatsoever, to the extent permitted by law. This General Release of Claims does not apply to any Claims concerning a breach of this Agreement or any claims arising after the date you sign this Agreement. With respect to the Claims you are waiving herein, you acknowledge that you are waiving your right to receive money or any other relief in any action instituted by you or on your behalf by any other person, entity or government agency.

8

ADDENDUM TO CONSULTING AGREEMENT

If Capstone Industries feels it is in their best interest to have George Wolf convert to full-time Executive status, anytime following the initial term (07/01/2015 - 12/31/2015), the annual salary will be equal to the Consultant fee rate applicable at that time and the employment term would continue through December 31, 2017 before any further review would take place.

9

capstone ·

Addendum to Consulting Agreement

This Addendum to Consulting Agreement (the "Agreement" ) is made and entered into on January 1, 2017 by and between Capstone Industries , Inc ., a Florida Corporation (the "Company " ), and George Wolf, (the "Consultant" ), located at 7687 NW 127th Manor, Parkland, FL 33076 .

WHEREAS, on July 1, 2015, the Company and George Wolf entered into a Consulting Agreement (the "Consulting Agreement") whereby George Wolf would provide Support to Sales & Marketing, Establish Protocol for a Global Sales Operation Function and Manage the Sales Operation Function for the Company, and the Consultant desires to perform such functions for the Company.

This Agreement amends and modifies the Consulting Agreement as follows:

	
1.

	
Scope of Work .

Rate and Expenses. The Company shall pay the Consultant the rate for the Services provided hereunder (the "Compensation").

	
(a)

	
Provide Support to Sales/Marketing

iii. Will deal directly with specific retail accounts when requested by CEO

	
2.

	
Compensation n.

	
(a)

	
Rate and Expenses. The Company shall pay the Consultant the rate for the Services provided hereunder (the "Compensation" ).

	
ii.

	
January 1, 2016 - December 31, 2016 - $12,500.00, per month January 1, 2017 - December 31, 2017 - $13,750.00, per month

	
iii.

	
Bonus Compensation -Ten Thousand Dollars ($10,000 .00) to be paid in the month of January 2017.

IN WITNESS WHERE OF, the parties have executed this Agreementt on the date first written above.

Company:

Capstone Companies, Inc.

 

 

By: /s/ Stewart Wallach

Title: CEO

 

Consultant:

 

 

By: /s/ Geroge Wolf

Title: Consultant

 

 

Witness:

Name: /s/ Aimee Gaudet

  

Capstone Industries, Inc.

350 Jim Moran Blvd. Suite 120 Deerfield Beach, FL 33442

Ph: (954)570-8889 I Fax: (954)252 -3442

www.capstoneindustries.com

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capstone

Addendum #2 to Consulting Agreement

This Addendum to Consulting Agreement (the " Agreement") is made and entered into on January 1, 2018 by and between Capstone Industries, Inc., a Florida Corporation (the "Company" ), and George Wolf , (the "Consultant" ), located at 7687 NW 127t h Manor, Parkland, FL 33076 .

WHEREAS, on July 1, 2015, the Company and George Wolf entered into a Consulting Agreement (the

" Consulting Agreement") whereby George Wolf would provide Support to Sales & Marketing, Establish Protocol for a Global Sales Operation Function and Manage the Sales Operation Function for the Company, and the Consultant desires to perform such functions for the Company.

This Agreement amends and modifies the Consulting Agreement as follows:

	
1.

	
Scope of Work.

Rate and Expenses. The Company shall pay the Consultant the rate for the Services provided hereunder (the "Compensation").

	
(a)

	
Provide Support to Sales/Marketing

iii. Will deal directly with specific retail accounts when requested by CEO

	
2.

	
Compensation.

	
(a)

	
Rate and Expenses. The Company shall pay the Consultant the rate for the Services provided hereunder (the "Compensation").

January 1, 2018 - December 31, 2018 - $13,750.00, per month

IN WITNESS WHEREOF, the parties have executed this Agreement on date first written above.

Company:

Capstone Companies, Inc.

 

 

By: /s/ Stewart Wallach

Title: CEO

 

Consultant:

 

 

By: /s/ Geroge Wolf

Title: Consultant

 

 

Witness:

Name: /s/ Aimee Gaudet

Capstone Industries, Inc.

350 Jim Moran Blvd. Suite 120 Deerfield Beach, FL 33442

Ph: (954)570-8889 I Fax: (954)252 -3442

www.capstoneindustries.com

11Capstone Companies,

March 2017

Strictly Confidential

Mr. Stewart Wallach

Capstone Companies, Inc,

350 Jim Moran Blvd, Suite 120

 Deerfield Beach, FL 33442

Via email:

INVESTMENT BANKING AGREEMENT

Dear Mr. Wallach,

This letter agreement (this *'Agreement") confirms our mutual understanding regarding the retention Of Wilmington Capital Securities, LLC ("Wilmington") by Capstone Companies, Inc. together with its subsidiaries. successors and assigns (collectively€ the "Company"), subject to the terms and conditions of this Agreement.

	
1.

	
Purpose of Engagement. Wilmington will. assist the Company as its exclusive financial advisor to assist in Identifying and evaluating various strategic Transactions intended to maximize shareholder value. For purposes of this Agreement, a "Transaction" shall include, but not be limited to: (i) any transaction (or series of transactions) involving the issuance, offer, or private sale of, or investment or transaction in, the Company's capital stock (whether newly authorized shares or authorized but unissued shares), convertible securities, options, warrants, any other securities exchangeable or exercisable for or convertible into the Company's capital stocks any other rights to acquire the Company's capital stock or assets. or any other capital raise of any nature; (ii) any transaction (or series transactions) involving the sale, transfer, divestiture, or Other disposition of all or substantially all of the Company's assets •or business; (iii) any individual, entity, or '"group" of persons or entities within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934 'becoming the beneficial owner, directly or indirectly, of 50% or more of the outstanding equity interests of the Company in any transaction or series of transactions; or (iv) any merger, consolidation, reorganization, recapitalization, restructuring, business combination, tender offer, exchange or other transaction involving the Company; regardless of whether the Company is the surviving entity. For the avoidance of doubts the following events shall not constitute a Transaction for the purposes of this Agreement: (i) the exercise by the Company's officers or employees of options to purchase common stock of the Company granted prior to February 1, 2017; and (ii) the Company's exercise of its options to repurchase up to 25,000,000 shares of the Company's common stock from involve, LLC, a Delaware limited liability company, pursuant to that certain Option Agreement, dated June 27, 2016, between the Company and Involve, LLC, Wilmington and the Company agree and acknowledge that this Agreement should not be construed as a firm commitment or guarantee of any Transactions It is acknowledged and agreed that the decision to consummate a Transaction shall be in the Company's sole and absolute discretion.

	
2.

	
Term. The initial Term of this Agreement shall be for a period commencing on the date hereof and expiring on the earlier of six (6) months from the date hereof or the final closing of a Transaction. Unless terminated by either party by giving written notice to the other party, the Term of this this Agreement shall automatically renew for successive six (6) month periods. Notwithstanding any termination or expiration of this Agreement, the provisions of Paragraphs 5, 6, and Exhibit A, which is attached hereto and incorporated herein, shall survive such termination or expiration. The initial Six (6) month term of this Agreement and all successive six (6) month renewal periods are collectively referred to in Agreement as the "Term."

	
3.

	
Nature of Engagement. In order to facilitate Wilmington's efforts to effect a Transactions during the Term the Company shall not authorize any other party to act on the Company*s behalf with respect to any Transaction.

1

Capstone Companies,

March 2017

	
4.

	
Role of Wilmington. Wilmington will act as the Company's exclusive financial advisor with respect to:

	
a)

	
Assisting in the preparation of a memorandum describing the Company's industry, business strategy, business and management. and incorporating current financial and other appropriate information furnished by the Company (as amended and supplemented from time to time, the

"Information Memorandum");

	
b)

	
Assisting in the preparation of a presentation. based upon the Information Memorandum;

	
c)

	
Assisting in the preparation of a financial model;

	
d)

	
Using its reasonable efforts to identify and introduce the Company to prospective financial investors, strategic corporate investors, acquirers of assets: merger partners and/or other sources of capital ("Investors") and market the Transaction to such potential Investors.

	
e)

	
Evaluating Transaction proposals on behalf of the Company and providing guidance with respect to the Transaction structure and valuation;

	
f)

	
Assisting in. any discussions or negotiations of any Transaction, as requested by the Company;

	
g)

	
Coordinating due diligence, documentation and Transaction closing;

	
h)

	
Providing any services related to a •Transaction that may be appropriately requested by the Company.

	
5.

	
Compensation. In consideration for the services. Described above, Wilmington shall be entitled    to receive, and the Company agrees to pay Wilmington, the following compensation:

	
a)

	
Retainer. During the first six (6) months of the Term of this Agreement* the Company shall pay a non-refundable retainer fee of $80,000 (the "Initial Retainer") to Wilmington in accordance with the schedule below. The Initial Retainer shall be deemed to be fully earned by Wilmington and payable by the Company upon commencement of the Term. The Company shall pay the full amount of the Initial Retainer to Wilmington in accordance -with the schedule below of whether the Company terminates this Agreement during the initial six (6) months of the Term pursuant to Paragraph 2 of this Agreement.

	
Initial Retainer Payment Schedule

	
Payment Amount

	 	
Payment Due

	
$

	
20,000

	 	
Upon Execution of this Agreement

	
$

	
20,000

	 	
March 1, 2017

	
$

	
10,000

	 	
April 1, 2017

	
$

	
10,000

	 	
May 1, 2017

	
$

	
10,000

	 	
June 1, 2017

	
$

	
10,000

	 	
July 1, 2017

If the Term of this Agreement is extended for an additional six months as contemplated by Paragraph 2, then the Company shall pay an additional non-refundable retainer fee of $45,000 (the "Additional Retainer" and collectively with the Initial Retainer, the "Retainer") to Wilmington in accordance with the schedule below. Upon the renewal of this Agreement for an additional six (6) month period as contemplated by Paragraph 2, (i) the Additional Retainer shall be deemed to be fully earned by Wilmington and payable by the Company, and (ii) Company shall pay the full amount of the Additional Retainer to Wilmington regardless of Whether the Company terminates this Agreement during the additional six (6) month period pursuant to Paragraph 2 of this Agreement.

2

Capstone Companies,

March 2017

	
Additional Retainer Payment Schedule

	
Payment Amount

	 	
Payment Due

	
$

	
10,000

	 	
August 1, 2017

	
$

	
10,000

	 	
September 1, 2017

	
$

	
10,000

	 	
October 1, 2017

	
$

	
5,000

	 	
November 1, 2017

	
$

	
5,000

	 	
December 1, 2017

	
$

	
5,000

	 	
January 1, 2018

	
b)

	
Transaction Fee. It the Company consummates a Transaction, the Company shall pay to Wilmington a cash transaction fee (the "Transaction Fee") in accordance with the schedule below, payable by wire transfer at the closing of the Transaction:

	
Transaction Consideration

	 	 	
Wilmington Fee %

	 
	
$

	
0 - $5,000,000

	 	 	 	
8

	
%

	
$

	
5,000,001 - $10,000,000

	 	 	 	
7

	
%

	
$

	
10,000,001 - $15,000,000

	 	 	 	
6

	
%

	
$

	
15,000,001 - $20,000,000

	 	 	 	
5

	
%

	
> $20,000,000

	 	 	 	
4

	
%

The Transaction Fee payable to Wilmington shall be reduced by the total Retainer amount paid by the Company to Wilmington as of the date on which the Transaction Fee is paid by the Company to Wilmington,

	
c)

	
Fee Obligation. Within  ten(10) days after the expiration of the Term, Wilmington shall provide -to the Company a final list (the 'Final List") of Investors that Wilmington has identified and introduced to the Company for the purposes defined in Paragraph I of this Agreement and, if any Transaction closes with any Investor(s) (or any of their respective affiliates) that are listed on the Final List within eighteen (18) months after the date of termination or expiration of this Agreement then Company shall pay to Wilmington the Transaction Fee set forth in Paragraph 5(b) payable within the time periods specified therein, If after 'the date of termination or expiration of this Agreement, the Company closes any transaction with an Investor that is. not on the Final List, then Company shall not be obligated to pay to Wilmington any fee or other compensation with respect to any such Transaction.

	
d)

	
Multiple Closings. In the event there are multiple partial closings prior to the final closing of the

Transaction, the Company shall pay -to or its designees, in cash the percentage of Consideration set forth in Section 5(b) payable with respect to the amount of each closing by wire transfer at the closing,

	
e)

	
Other. In the event that any portion of the Transaction(s) includes instruments or arrangements not contemplated by this Agreement, then the Company agrees to negotiate with Wilmington in good faith the amount of Transaction Fees that will be due to Wilmington under such circumstances, No fee payable to any other advisor by the Company or any other company in connection with the subject matter of this engagement shall reduce or otherwise affect any fee payable hereunder to Wilmington. All fees due "to Wilmington hereunder shall have no offsets (except as set forth in Paragraph 5(b)) and are non-refundable and non-cancelable,

3

Capstone Companies,

March 2017

	
6.

	
Reimbursement of Expenses. In addition to the fees described in Paragraph 5 above, the Company agrees to reimburse Wilmington, promptly, upon submission of an, invoice from time to time, for all reasonable, out of-pocket expenses incurred by Wilmington (including travel* databases, fees and disbursements of counsel, and of other consultants and advisors retained by Wilmington or its affiliates. fees and disbursements of accounting professional* priming and marketing expenses, etc.) in connection with a Transaction*

We look forward to formalizing our business relationship. If the foregoing and the attached Exhibit A correctly set forth our agreement, please execute the enclosed copy of this letter in the space provided and return it to use

Very truly yours,

             WILMINGTON CAPITAL SECURITIES, LLC

  Name: /s/ Ronald Dorushkin

Title: Chief Executive Officer

Confirmed and agreed to this _____ day of ___________, 2017

Capstone Companies, Inc.

By: ________________________

Name: Stewart Wallach

Title: CEO

4

Capstone Companies,

March 2017

EXHIBIT A

(A) Consideration. For purposes of this Agreement, "Consideration" shall mean the aggregate value of the Transaction shall include the aggregate amount paid or payable to the Company (including any subsidiary or *affiliate thereof), its shareholders, and any other third party in connection with the Transaction (including amounts paid or payable to holders of options, warranties, convertible securities, and all other securities issued by the Company) consisting of: (i) cash; (ii) equity and debt securities; (iii) the unpaid principal amount of any indebtedness of the Company or its affiliates for money borrowed that is assumed, repaid, forgiven, or satisfied in connection with the Transaction; (iv) the amount of any indemnity holdbacks or escrows in connection with the Transaction; (v) any extraordinary dividends. or distributions in connection with the Transaction; (vi) payments made pursuant to or in consideration of a non-compete agreement, non-solicitation agreement, or other restrictive covenants; (vii) rights to receive periodic payments, including seller financing; (Viii) the amount Of any deferred performance based payments, earnouts, or other contingent payments based on the future performance of the Company, its business, or its assets; (ix) any other forms of payment made, received, or to be received, directly or indirectly, by the Company (any subsidiary or affiliate thereof), its shareholders, or a third party; and (x) all other rights that may be at any time (A) transferred or contributed to the Company (or any of its subsidiaries or affiliates) or shareholders in connection with an acquisition Of equity Or assets Of the Company, (B) transferred or contributed by the Company (or any of its subsidiaries or affiliates) or shareholders in any transaction involving an investment in or acquisition of any third party, or acquisition of the equity or assets thereof, by Company (or any of its subsidiaries or affiliates), or (C) transferred or contributed to. the Company (or any of its subsidiaries or affiliates) or shareholders and any other parties entering into any joint venture or similar joint enterprise or undertaking with the Company (or any of its subsidiaries or affiliates). Any of the foregoing amounts held back or held pursuant to an escrow agreement established before or in connection with consummating the Transaction for indemnification or other purposes shall be deemed paid on the closing date and not contingent and the portion of the Consideration related such amounts shall be due and payable to Wilmington upon the closing of the Transaction. If any portion of the Consideration consists of securities, the. value of such securities shall be determined as follows: (i) if the securities are traded on a stock exchange, then the securities shall be valued at the average of the last sales price over the last ten trading days immediately preceding the consummation of the Transaction; (ii) if the securities are traded over-the-counter, then the securities shall be valued at the average: closing bid and asked quotes over the last ten trading days immediately preceding the consummation of the Transaction; and (iii )if the securities, interests, or rights are not publicly traded, then the value shall be the fair market value on the day immediately prior to the consummation of the Transaction as agreed to in good faith by the Company and Wilmington. Any assets other than cash and the other assets in this Section(A) will be valued as mutually agreed upon in good faith by the Company and Wilmington.

	
(B)

	
 Representation of the Company. The Company hereby represents and warrants that any and all information supplied hereunder to Wilmington in connection with any and all services to be performed hereunder by Wilmington for and on behalf of the Company shall be, to the best of the Company's knowledge, true, complete and correct as of the date of such dissemination and shall not fail to state a material fact necessary to make any of such information not misleading: The Company hereby acknowledges that the ability of Wilmington to adequately provide services as described herein is dependent upon the prompt dissemination of accurate correct and complete information to Wilmington. The Company further represents and warrants hereunder that this Agreement has been duly and validly authorized by all requisite corporate action; that the Company has the full right, power md capacity to executes deliver and perform its obligations hereunder; and that this Agreement, upon execution and delivery of the same by the Company and Wilmington will represent the valid and binding obligation of the Company enforceable in accordance with its terms. The representations and warranties set forth herein shall: survive termination or expiration of this Agreement.

5

Capstone Companies,

March 2017

	
(C)

	
Indemnification. The Company hereby agrees to indemnify and hold Wilmington, its affiliates their respective officers, director, shareholders, principals, employees, contractors, consultants, partners, managers, members: and their respective successors and assigns harmless from and against any and all loss, claim. damage, liability, deficiencies, actions, suits, proceedings, costs and legal expenses or expense whatsoever (including but not limited to, reasonable legal fees and other expenses and. Reasonable disbursements incurred in connection with investigating, preparing to defend or defending action, suit or proceeding, including any inquiry or investigation, commenced or threatened, or any claim whatsoever, or in appearing or preparing for appearance as witness in any proceeding, including any pretrial proceeding such as a deposition) (collectively, "Losses") arising out of, based upon, or in any way related or attributed to (i) any breach of a representation, warranty or covenant by the Company contained in this Agreement or (ii) any activities or services performed hereunder by 'Wilmington, unless it is finally judicially determined in a court of competent jurisdiction that such Losses were the primary and direct result of the intentional misconduct or gross negligence of Wilmington in performing the services hereunder.

If Wilmington receives written notice of the commencement of any legal action, suit or proceeding with respect to which the Company is or may be obligated to provide indemnification pursuant to this Section Wilmington shall, within thirty (30) days of the receipt of such written notice* give the Company written notice thereof(a "Claim Failure to give such Claim Notice within such thirty (30) day period shall not constitute a waiver by Wilmington of its right to indemnity hereunder with respect to such action, suit or proceeding as long as no default has been entered. Upon receipt by the Company of a Claim Notice with respect to any claim for indemnification which is based upon a claim made by a third party (0Third Party Claim"), the Company may assume the defense of the Third Party Claim with counsel of its own choosing, as described below" Wilmington shall cooperate in the defense of the Third Pany Claim and shall furnish such records, information. and testimony and attend all such conferences, discovery proceedings, hearings trial and appeals as may be reasonably required in connection therewith& Wilmington shall have the right to employ its own counsel in any such action. The Company shall not satisfy or settle any Third-Party Claim for which indemnification has been sought and is available hereunder without the prior written consent of Wilmington, which consent shall not be delayed which shall not be requited if Wilmington is granted a release in connection therewith. The indemnification provisions hereunder shall survive the termination or expiration of this Agreement.

The Company further agrees. upon demand by Wilmington, to promptly reimburse Wilmington for, or pay, any Loss as to which Wilmington has been indemnified herein with such reimbursement to be made currently as any Loss is incurred by Wilmington. Notwithstanding the provisions of the aforementioned indemnification, any such reimbursement or payment by the Company of fees, expenses, or disbursements incurred by Wilmington shall be repaid by Wilmington in the event of any proceeding 'in which a final judgment (after all appeals. or the expiration of time to appeal) is entered in a court of competent jurisdiction against Wilmington based solely upon its gross negligence intentional misconduct in the performance of its duties hereunder, and provided further, that the Company shall not be required to make. reimbursement or payment for any settlement effected without the Company's prior written consent (which consent shall not be unreasonably withheld or delayed.)

If for any reason the foregoing indemnification is unavailable or is insufficient to hold Wilmington harmless the Company agrees to contribute the amount paid or payable by Wilmington in such proportion as to reflect not only the relative benefits received by the Company, as the ease may be, on the one hand, and Wilmington on the other hand. but also, the relative fault of the Company and Wilmington as well as any relevant equitable considerations. In no event shall Wilmington contribute in excess of the fees actually received by it pursuant to the terms of this Agreement, IN NO EVENT SHALL EITHER PARTY OR ANY PARTY'S OFFICER, DIRECTORS, EMPLOYEES, SHAREHOLDERS, MEMBERS, MANAGERS, PARTNERS, AGENTS OR REPRESENTATIVES BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL. INDIRECT, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, INCLUDING 'WITHOUT LIMITATION LOSSOF GOODWILL, LOST PROFITS, LOST DATA OR LOST OPPORTUNITIES, IN ANY WAY RELATING TO THIS AGREEMENT* EVEN IF A PARTY HAS BEEN NOTIFIED OF THE POSSIBILITY OR LIKELIHOOD OF SUCH DAMAGES OCCURRING, AND WHETHER SUCH LIABILITY IS BASED ON CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY* PRODUCTS LIABILITY OR OTHERWISE* IN NO EVENT WILL EITHER PARTY'S LIABILITY IN THE AGGREGATE FOR ANY LOSSES FOR ANY MAITER ARISING BETWEEN THE PARTIES HEREIN, EXCEPT FOR THIRD PARTY CLAIMS ARISING UNDER THIS INDEMNIFICATION PROVISION UNDER THIS AGREEMENT, EVER EXCEED THE TOTAL FEES RECEIVED BY WILMINGTON, REGARDLESS OF THE FORM OF ACTION, WHETHER BASED ON CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHERWISE.

6

Capstone Companies,

March 2017

For purposes of this Agreement, each officer, director, shareholder, member, and employee or affiliate of Wilmington and each person, if any, who controls Wilmington (or any affiliate) within the meaning of either Section 15 of the Securities Act of 1933s as amended, or Section 20 of the Securities Exchange Act of 1934, as amended, shall have the same rights as Wilmington with respect to matters of indemnification by the Company hereunder.

	(D)	
Confidentiality. Wilmington agrees that all nonpublic information pertaining to the prior, current or contemplated business of the Company is a valuable and confidential asset of the Company. Such information shall include, without limitation. information relating to customer •lists, bidding procedures, intellectual property, patents, •trademarks trade secrets, financing techniques and sources and such financial statements of the Company as are not available to the public. Wilmington and its officers, directors, employees, agents and members, shall hold all such information in trust and confidence for the Company and shall not use or disclose any such information for other than the Company's business. Such confidentiality does not apply (i) where such information is publicly available or later becomes publicly available other than through a breach of this Agreement, (ii) where such information is subsequently lawfully obtained by Wilmington from a third party or parties, (iii) if such information is known to Wilmington prior to the execution of this Agreement or (iv) as may be required by law.

		(E)	
Independent Contractor. It is expressly understood and agreed that Wilmington shall, at all times, act as an independent contractor with respect to the Company and not as an employee or agent of the Company, and nothing contained in this Agreement shall be construed to create venture, partnership, association or other affiliation, or like relationship, between the parties. It is specifically agreed that the relationship is and shall remain that of independent parties to a Contractual relationship and that Wilmington shall have no right to bind the Company in any manner. In no event shall either party be liable for the debts or obligations of the other except as otherwise specifically provided in this Agreement.

	(F)	
Amendment.  No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is evidenced by a written instrument, executed by the Company and Wilmington

	(G)	
Notices. All notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly given when delivered in person or transmitted by-mail, facsimile transmission, or on the third calendar day after being mailed by United States registered or certified mails return .receipt requested, postage prepaid, to the addresses herein above first mentioned or to such other address as any party hereto shall designate to the other for such purpose

	(H)	
Entire Agreement. This Agreement (including Exhibit A) contains all the understandings and agreements of the parties with respect to the subject matter: discussed herein.  All prior agreements, whether written or oral, are merged herein and shall be of no force or effect.

		(l)	
Severability. The invalidity, illegality or unenforceability of any provision or provisions of this Agreement will not affect any other provision of this Agreement, which will remain in full force and effect, nor will the invalidity, illegality or unenforceability of a portion of any provision of this Agreement affect the balance of such provision. In the event that any one or more of the provisions contained in this Agreement or any portion thereof shall for any reason be held to be invalids illegal or unenforceable in any respect, this Agreement shall be reformed, construed and enforced as if such invalid, illegal or unenforceable provision had never been contained herein.

		(J)	
Construction: Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. The Company agrees that the sole and exclusive venue for any matters arising hereunder shall be the court of competent jurisdiction in Palm Beach County, Florida, and agrees to waive any objections to such venue. EACH OF WILMINGTON AND THE COMPANY HEREBY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING, SUIT OR CLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT.

7

		(k)	
Binding Nature. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the patties, and their respective successors and assigns.

	(L)	
Counterparts. This Agreement may be executed in any number of counterparts, including facsimile signatures, which shall be deemed as original signatures. All executed counterparts shall constitute one Agreement, notwithstanding that all signatories are not signatories to the original or the same counterpart.

	(M)	
Attorneys' Fees and Court Costs. If any party to this Agreement brings an action, directly or indirectly based upon this Agreement or the matters contemplated hereby against the other party, the. prevailing patty shall be entitled to recovers in addition to any other appropriate amounts, its reasonable costs and expenses in connection with such proceeding, including, but not Limited to, reasonable attorneys' fees and expenses and court costs"

		(N)	
Computer Virus. During the course of this engagement, Wilmington may exchange electronic versions of documents and emails with you using commercially available software. Unfortunately, the technology community is occasionally victimized by the creation and dissemination of so called Viruses or similar destructive electronic programs. Wilmington takes issues raised by these viruses seriously and has invested in document and email scanning software that identifies and rejects files containing known viruses. Wilmington also updates its system with the software vendor's most current releases at regular intervals.

By utilizing this virus scanning software, Wilmington's system may occasionally reject a communication you send. Wilmington in turn may send you something that is rejected by your system. This infrequent occurrence is to be expected as part of the ordinary course of 'business.

Because the virus protection industry is generally one or two steps behind new viruses Wilmington cannot guarantee that its communications and documents will always be virus free. Occasionally. A virus will escape and go undetected as it is passed from system to system. Although Wilmington believes its virus protection measures are excellent, it can make no warranty that its documents will be virus free at all times.

Please inform Wilmington immediately in the event. a virus enters your company's system via any electronic means originating from Wilmington. 'Through cooperative efforts, disruption to communications can be minimized.

		(0)	
Information Disclosure. Wilmington may disclose any information when it is believed necessary for the conduct of its business, or where disclosure is required by law. For example, information may be disclosed for audit or research purposes, or to law and regulatory agencies to do such things as prevent fraud. Information may also be disclosed to affiliates as well as to others that are outside Wilmington. Wilmington may make other disclosures of Information as permitted by law,

	
(P)

	
Legal Services. Wilmington is not, in any manner, providing legal services or legal advice to the Company. Furthermore, the Company agrees and acknowledges that Wilmington is not an advisor as to tax, accounting or regulatory matters in any jurisdiction.

	
(Q)

	
Securities Trading and Other Activities. Wilmington is a full-service securities firm engaged, directly or indirectly, in various activities, including securities trading, investment management, financing and brokerage activities. The Company agrees and acknowledges that in the ordinary course of these activities, Wilmington and its affiliates may actively trade the debt or equity securities (or related derivative securities) of the Company and Other companies which may be the subject of the engagement contemplated by this Agreement for its own account and for accounts of its customers and may at any time hold long and short positions in such securities. The Company further agrees and acknowledges that Wilmington and its affiliates also may from time to time perform various investment banking and financial advisory services for other clients and customers who may have conflicting interests with respect to the Company or the Transaction and nothing herein shall in any way limit Wilmington's, or its affiliates', ability to provide such services.

8

	
(R)

	
No Fiduciary Duties. The Company represents that it is a sophisticated business enterprise that has retained Wilmington for the limited purposes set forth in this Agreement, and the parties acknowledge and agree that their respective rights and obligations are contractual in nature. Each party disclaims any intention to impose fiduciary obligations on the other by virtue of the engagement contemplated by this Agreement.

	
(S)

	
USA Patriot Act. If necessary, the Company agrees to provide Wilmington with information and supporting documentation to enable Wilmington to comply with the requirements under Title Ill of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and. Obstruct Terrorism Act of2001 (Public Law 107-56).

	
(T)

	
Marketing. Wilmington shall have the ability to publicize (i.e., use of the Company logo in Wilmington's marketing materials) its role in providing the Company with the services noted herein.

9

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