Document:

OPTION
      AGREEMENT

     

    

    THIS
      OPTION AGREEMENT (this “Agreement”)
      is
      made as of January 17, 2005, by and between Fred Tannous (“Seller”)
      and
      Bill Glaser (“Holder”).

    

    A.
      Seller
      owns 4,000,000 shares of common stock of UKARMA CORPORATION, a Nevada
      corporation (the “Company”).

    

    B.
      Seller
      desires to grant Holder an exclusive option to purchase up to 3,000,000 of
      such
      shares of Company common stock (the “Shares”)
      from
      Seller as described herein.

     

    NOW,
      THEREFORE, the undersigned, with the intention to be legally bound hereby,
      in
      consideration of the concurrent payment by Holder of Ten Dollars (the receipt
      of
      which is hereby acknowledged by Seller), and for other good and valuable
      consideration, and the mutual promises herein, agree as follows: 

     

    1.
      Grant
      of
      Option. Seller
      hereby grants to Holder the exclusive right and option (the “Option”) to
      purchase the Shares at a price of $0.20 per Share (subject to change as
      described herein) (the “Exercise Price”)

     

    2.
      Option
      Period.
      The
      Option shall be exercisable in whole or in part at anytime and from time to
      time
      from the date hereof (the “Effective Date”) up to and until 11:59 p.m. Pacific
      Time on the January 17, 2011 (the “Expiration Date”). After the Expiration Date,
      the Option shall (to the extent not exercised prior thereto) expire and be
      of no
      further force or effect. 

     

    3.
      Manner
      of Exercise. To exercise the Option, Holder shall notify Seller in writing
      substantially in the form attached as Exhibit A (the “Option Notice”), and (1)
      specify the number of Shares being purchased pursuant to such exercise and
      (2)
      include the Exercise Price for each of the Shares being purchased pursuant
      to
      such exercise (by check in good funds or by wire transfer to an account recently
      designated by Seller). Within ten (10) days following delivery of the Option
      Notice, Seller shall deliver to Holder (the “Stock Delivery”) (1) a Stock Power
      separate from certificate executed by Seller evidencing the transfer of the
      purchased Shares to Holder (in form and substance reasonably acceptable to
      Holder) and (2) the stock certificate(s) representing the Shares. In the event
      that Holder is buying less than all of the Shares owned by Seller pursuant
      to
      such exercise, then and in such event within ten (10) days following the Stock
      Delivery, Holder shall deliver the Stock Power and stock certificates to the
      Company, and cause the Company to immediately issue to Seller a new stock
      certificate evidencing Seller’s remaining Shares in the Company. 

     

    4.
      Adjustments
      of Exercise Price and Number and Kind of Shares 

     

    (a)
      Dividends,
      Combinations etc.
      In the
      event that the Company shall at any time hereafter (a) pay a dividend in Common
      Stock or securities convertible into Common Stock; (b) subdivide or split its
      outstanding Common Stock; (c) combine its outstanding Common Stock into a
      smaller number of shares; (d) spin-off to its shareholders a subsidiary or
      operating-business unit; then (i) the number of shares covered by the Option
      shall be adjusted so that the Holder thereafter may receive the number of shares
      of Common Stock or the equivalent value it would have owned if it had exercised
      the Option in full immediately prior to such action; and, the Exercise Price
      shall be adjusted to reflect such proportionate increases or decreases in the
      number of shares and (ii) any other reference in this Agreement to a specific
      number of Shares and any reference to a price per Share, shall also be adjusted
      in the same manner. The provisions of this Section 4(a) shall similarly apply
      to
      any successive dividends, splits, combinations and spinoffs. 

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    (b)
      Other
      Reclassification.
      After
      the Exercise Conditions have been satisfied, in case of any reclassification
      of
      the outstanding shares of Common Stock (other than a change covered by Section
      4(a) hereof or a change which solely affects the par value of such shares)
      or in
      the case of any merger or consolidation or merger in which the Company is not
      the continuing corporation and which results in any reclassification or capital
      reorganization of the outstanding shares), the holder shall have the right
      thereafter (until the Expiration Date) to receive upon the exercise hereof,
      for
      the same aggregate Exercise Price payable hereunder immediately prior to such
      event, the kind and amount of shares of stock or other securities or property
      receivable upon such reclassification, capital reorganization, merger or
      consolidation, by a holder of the number of shares of Common Stock obtainable
      upon the exercise of the Option in full immediately prior to such event; and
      if
      any reclassification also results in a change in shares covered by Section
      4(a),
      then such adjustment shall be made pursuant to both this Section 4(b) and
      Section 4(a). The provisions of this Section 4(b) shall similarly apply to
      any
      successive reclassifications, capital reorganizations and mergers or
      consolidations, sales or other transfers. 

     

    5. Transfer
      of Option.
      This
      Option may be transferred by Holder at any time without Seller’s consent,
      subject to compliance with applicable securities jaws. Upon any transfer, the
      transferring Holder and the new Holder will jointly notify Seller and the
      Company of such transfer. 

    

    6. Transfer
      of Shares.
      Seller
      represents and warrants that he will not sell,
      transfer, assign, gift, create a lien on or security interest in, or otherwise
      dispose of, with or without consideration (collectively, “Transfer”)
      any of
      the Shares unless: (1) Holder gives his express prior written consent thereto
      (which
      consent may be withheld in Holder’s sole and absolute discretion); and (ii) if
      Holder does consent to such Transfer, then the transferee must agree in writing
      (in form and satisfactory to Holder) that the Shares are subject to this Option.
      The Shares shall bear a restrictive legend acknowledging such foregoing
      restrictions, substantially in the following form:

    

    ‘“THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE
      SHARES MAY NOT BE SOLD, OFFERED FOR SALE. PLEDGED OR HYPOTHECATED
      IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
      UNDER SUCH SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION
      OF COUNSEL REASONABLY SATISFACTORY
      TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
      

    

    THESE
      SHARES ARE SUBJECT TO A PURCHASE OPTION DATED JANUARY 17, 2001. FROM SUCH DATE
      TO JANUARY 17, 2011, THE SHARES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, GIFTED,
      PLEDGED OR HYPOTHECATED (COLLECTIVELY, “TRANSFERRED”) EXCEPT WITH THE PRIOR
      WRITTEN CONSENT OF BILL GLASER (OR HIS SUCCESSOR OPTION HOLDER); AND IF CONSENT
      IS GRANTED THE TRANSFEREE MUST ACKNOWLEDGE IN WRITING THAT THE SHARES ARE
      SUBJECT TO THE PURCHASE OPTION. THE COMPANY WILL NOT RECOGNIZE OR EFFECT ANY
      TRANSFER OF ANY OF THE SHARES ON ITS BOOKS AND RECORDS EXCEPT IN COMPLIANCE
      WITH
      THE FOREGOING. A COPY
      OF
      THE OPTION AGREEMENT IS AVAILABLE FOR INSPECTION AT THE COMPANY’S
      HEADQUARTERS.”

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    7.
      Company
      Acknowledgement.
      The
      Company acknowledges Section 6 hereof, and agrees that it will not recognize
      or
      give effect on its book and records to any attempted Transfer of any the Shares
      unless: (1) Holder (or his successor) has consented in writing to the Transfer
      and (2) the transferee acknowledges in writing (in form and substance
      satisfactory to Holder) that the Shares are subject to the terms of this Option
      Agreement. Any such share certificate issued to a transferee shall bear the
      restrictive legend set forth in Section 6 above. 

    

    8.
      Notices.
      All
      notices, requests, consents arid other communications required hereunder shall
      be in writing and by first class mail or by registered or certified mail,
      postage prepaid, return receipt requested, and (other than in connection with
      the exercise of the Option) shall be deemed to have been duly made when received
      or, if sent registered or certified mail, postage prepaid, return receipt
      requested, on the third day following deposit in the mails: if addressed to
      Holder, to 770 Broadway, 2nd
      Floor,
      New York, NY 10003 (or such other address as he may designate in writing from
      time to time); and if addressed to Seller, to 6080 Center Drive, 6 Floor, Los
      Angeles, CA 90045 (or such other address as he may designate in writing from
      time to time).

     

    9.
      Entire
      Agreement; Amendment.
      This
      Agreement (including the Exhibits attached hereto) contains the entire agreement
      between Seller and Holder with respect to the Shares; there are no other terms,
      covenants, obligations or representations, oral or written, of any kind
      whatsoever related to the subject matter of this transaction (and without
      limiting the foregoing, this Agreement supercedes that certain Warrant dated
      as
      of even date herewith executed by Holder and Seller, which Warrant is void
      and
      of no effect). This Agreement may be amended only by a written instrument
      executed by the party against whom the amendment is being enforced.

     

    10.
      Governing Law.
      The
      substantive laws of the State of New York will govern the validity, construction
      and enforcement of this Agreement. The parties consent to the venue and
      jurisdiction of any federal court located in New York for any action brought
      to
      enforce the terms of this Agreement. The parties irrevocably and unconditionally
      submit to the jurisdiction (both subject matter and personal) of any such court
      and irrevocably and unconditionally waive: (a) any objection any party might
      now
      or hereafter have to the venue in any such court; and (b) any claim that any
      action or proceeding brought in any such court has been brought in an
      inconvenient forum.

     

    11.
      Construction.
      Any rule
      of law or judicial opinion to the effect that any ambiguities are to be resolved
      against the drafting party will not be employed in the interpretation of this
      Agreement or any exhibits or amendments hereto.

     

    

    [signature
      page follows]

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby,
      have
      caused this Agreement to be signed the day and year first above
      written.

     

    

    

    

    

    _______________________________

                                
      Fred Tannous

     

    

    

    

    _______________________________

                                    
      Bill
      Glaser

    

    

    Sections
      6 & 7 Agreed to:

    UKARMA
      CORPORATION

    

    

    

    By: ________________________________

                           
       
      Bill
      Glaser, CEO

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    EXHIBIT
      A 

     

    NOTICE
      OF
      EXERCISE 

     

    (To
      be signed only upon exercise of the Option Agreement)

     

    Dated: _________

    To:
      FRED
      TANNOUS:

    

    I
      hereby
      exercise that certain Option Agreement dated January 17, 2001 (the “Option”) and
      elect to purchase _____________ shares [FILL-IN
      NUMBER OF SHARES BEING PURCHASED]
      of
      Common Stock of uKarma Corporation (the “Company”) from you pursuant to the
      terms of the Option. The undersigned tenders herewith payment of the exercise
      price of $_____________ pursuant to the terms of the Option. 

    

    The
      undersigned hereby represents and warrants to, and agrees with you as follows:
      

    

    1.
      I am
      acquiring the shares for my own account, for investment purposes only.
 

    2.
      I
      understand that an investment in the shares involves a high degree of risk,
      and
      I have the financial ability to bear the economic risk of this investment in
      the
      shares, including a complete loss of such investment. I have adequate means
      for
      providing for my current financial needs and have no need for liquidity with
      respect to this investment. 

     

    3.
      I have
      such knowledge and experience in financial and business matters that I am
      capable of evaluating the merits and risks of an investment in the shares and
      in
      protecting my own interests in connection with this transaction.

    4.
      I
      understand that the shares have not been registered under the Securities Act
      of
      1933, as amended (the “Securities Act”) or under any state securities laws. I am
      familiar with the provisions of the Securities Act and Rule 144 thereunder
      and
      understand that the restrictions on transfer on the shares may result in my
      being required to hold the snares for an indefinite period of time.

     

    5.
      I
      agree not to sell, transfer, assign, gift, create a security interest in, or
      otherwise dispose of, with or without consideration (collectively, “Transfer”)
      any of the shares except pursuant to an effective registration statement under
      the Securities Act or an exemption
      from
      registration. 

     

    6.
      I am
      an “accredited” investor as defined under Rule 501 of Regulation D under
      the
      Securities Act.

     

    
      
        7.
          I
          understand that shares will bear the following legend: 

      

    

     

    
      
        “THE
          SECURITIES REPRESENTED BY THIS CERTIFICATE
          HAVE
          NOT
          BEEN REGISTERED
          UNDER THE SECURITIES ACT
          OF
          1933
          (THE “ACT’) OR ANY APPLICABLE
          STATE SECURITIES LAWS AND MAY NOT BE EXERCISED, SOLD, PLEDGED OR TRANSFERRED
          IN
          THE ABSENCE OF AN EFFECTIVE REGISTRATION
          STATEMENT FOR SUCH SECURITIES UNDER THE ACT OR UNLESS
          AN
          EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.” 

      

    

    
 

    Name: _______________________________

    Print
      Name: ___________________________PROMISSORY
      NOTE

    

    
      	
              Los
                Angeles, CA

            	 
	
              $100,000

            	
              November
                10,
                2006

            

    

    

    

    FOR
      VALUE
      RECEIVED, the undersigned UKARMA CORPORATION (“Maker”) agrees to pay to BILL
      GLASER (“Holder”) the principal sum of One Hundred Thousand Dollars ($100,000),
      together with accrued interest thereon at the rate of seven percent (7%) per
      year, on the six (6) month anniversary of the date hereof.

    

    All
      payment obligations evidenced hereby are payable only in lawful money of the
      United States. Holder hereby waives presentment, demand for payment, notice
      of
      dishonor and any and all other notices or demands in connection with the
      delivery, acceptance, performance, default or enforcement of this Note. If
      this
      Note or any payment provided for hereunder is not paid when due, whether at
      maturity or by acceleration, the Maker promises to pay all costs and expenses,
      including without limitation, reasonable attorneys’ fees, incurred by Holder in
      connection with the collection and enforcement of this Note, whether or not
      suit
      is filed hereon. 

    

    Maker
      agrees that its liabilities hereunder are absolute and unconditional without
      regard to the liability of any party. Maker waives the right to interpose any
      setoff, counterclaim or defense of any nature or description whatsoever. Maker
      agrees that no delay on the part of Holder in exercising any power or right
      hereunder shall operate as a waiver thereof; nor shall any single or partial
      exercise of any power or right hereunder preclude other or further exercise
      thereof or the exercise of any other power or right.

    

    If
      at any
      time this transaction would be usurious under applicable law, then regardless
      of
      any provision contained in the Agreement, in this Note or in any other agreement
      made in connection with this transaction, it is agreed that the total of all
      consideration which constitutes interest under applicable law that is contracted
      for, charged or received upon the Agreement, this Note or any such other
      agreement shall under no circumstances exceed the maximum rate of interest
      authorized by applicable law and any excess shall be credited to
      Maker.

    

    If
      the
      Maker shall make an assignment for the benefit of creditors, or any petition
      or
      proceeding for any relief under any bankruptcy, reorganization, arrangement,
      insolvency, readjustment of debt, receivership, liquidation of dissolution
      law
      or statute now or hereinafter in effect (whether at law or in equity) is filed
      or commenced by or against the Maker or any property of the Maker, or if any
      trustee or receiver is appointed for the Maker or any such property, then and
      in
      any such event, in addition to all rights and remedies of Holder, all such
      rights and remedies being cumulative, not exclusive and enforceable
      alternatively, successively and concurrently, Holder may, at its option, declare
      all amounts owing to be due and payable, whereupon the maturity of the then
      unpaid balance thereof shall be accelerated and the same, together with all
      interest accrued thereon, shall forthwith become due and payable.

    

    The
      principal of the Note may be prepaid in whole or in part, provided that all
      accrued interest (if any) on the amount to be prepaid is also paid at such
      time.
      This Note may not be changed, modified or terminated orally, but only by an
      agreement in writing signed by Maker and Holder. This Note shall be governed
      by
      and construed in accordance with the laws of the State of
      California.

    

    

    UKARMA
      CORPORATION

    

    

    

    By: _____________________________

    Fred
      Tannous, Director

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