Document:

ADDENDUM
1 TO SETTLEMENT AGREEMENT DATED JUNE 30, 2017

 

This
Addendum to Settlement Agreement (“Agreement”) is entered in effect as of this 30th day of June,
2017 (“Effective Date”) by and between HELPFUL ALLIANCE COMPANY, a Florida Corporation having a principal address
at 700 W Hillsboro Blvd., Suite 1-100, Deerfield Beach, FL 33441 (“Borrower”) and ZIMAS LLC, a Florida Limited
Liability Company having an address at 18911 Collins Avenue, Unit 2701, Sunny Isles Beach, FL 33160 (together with its successors
and assigns, the “Lender”), collectively herein referred to as the “Parties”.

 

WHEREAS,
prior to execution of the Settlement Agreement, the parties have executed the Warrant Issuance Agreement on April 29, 2016, under
which the Borrower issued to the Lender, a warrant (the “Warrant”) exercisable in full or in part at any time
vesting from January 1, 2018 and expiring on December 31, 2028 (“Exercise Period”) to purchase up to an aggregate
of 625,000 shares of Common stock of the Company (“Shares” or “Securities”), par value $.001
per share, at an exercise price of $1.60 per Share (“Exercise Price”);

 

WHEREAS,
as of the Effective Date of this Agreement, in addition to the Settlement Agreement dated June 30, 2017 (“Settlement”),
the Lender abandons its rights to the Warrant.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties agree and acknowledge that the Warrant shall be cancelled immediately
upon execution of this Addendum 1 to the Settlement (“Addendum 1”) and that all rights and entitlements of
the Lender for the Shares under the Warrant shall be irrevocably nulled and void. The execution and delivery of this Agreement
by the Lender and Borrower shall be binding upon each party hereto and their respective successors and assigns. This Addendum
1 is final. The Lender acknowledges that it had an ample opportunity to review this Addendum 1, to obtain independent legal counsel
to review this Addendum 1, and an election by the Lender not to obtain such legal counsel shall release the Borrower from any
prerequisite to require such counsel. This Amendment shall be treated as part of the Settlement, and hence governed by, and construed
under the laws of the State of Florida with further choice of courts located in Broward County, Florida.

 

IN
WITNESS WHEREOF, the Parties hereto have duly executed this Agreement by their respective duly authorized officers.

 

	THE LENDER:

                                              ZIMAS, LLC
	 	THE BORROWER:

                                              HELPFUL ALLIANCE COMPANY

	 	 	 	 	 
	By:	/s/ Zena Katz	 	By:	/s/ Sergey Gurin
	 	Zena Katz, 	 	 	Sergey Gurin, 
	 	Sole Member & Manager	 	 	Vice President & CFOTERMINATION
AGREEMENT

 

THIS
TERMINATION AGREEMENT (this “Agreement”) is made effective as of August 9, 2017 (the “Effective
Date”) by and between Seasons Creek Development LLC, a Virginia Limited Liability Company (the “Company”)
and Helpful Alliance Company, a Florida Corporation acting singly or together with its subsidiaries and affiliates (“Alliance”),
hereafter collectively referred to as Parties.

 

RECITALS

 

WHEREAS,
from its inception to June 30, 2017, the Company was a subsidiary of the Alliance;

 

WHEREAS,
on August 1, 2016, the Company and the Alliance have entered into Exclusive Construction Management Agreement (“Construction
Management Agreement”);

 

WHEREAS,
prior to June 30, 2017, the Alliance was the Managing Member of the Company entitled to operate the Company under the Limited
Liability Company Operating Agreement, as amended;

 

WHEREAS,
on June 30, 2017, Alliance had transferred majority of its equity ownership in the Company to certain parties; and

 

NOW
THEREFORE, in consideration of the mutual covenants hereinafter exchanged, the Parties agree as follows:

 

	 	1.	The
    Construction Management Agreement shall be terminated as of the Effective Date of this Agreement (“Construction
    Management Termination”). Such Construction Management Termination shall be final and irrevocable.
	 	 	 
	 	2.	The
    appointment of Alliance as the Company’s Managing Member shall be terminated as of the Effective Date of this Agreement
    (“Managing Member Termination”). Such Managing Member Termination shall be final and irrevocable.
	 	 	 
	 	3.	In
    order to complete all steps undertaken under the Construction Management Agreement from commencement to the Effective Date
    of this Agreement (“Services”), Alliance shall represent the Company solely as non-exclusive
    agent-representative under the authority of the Company’s Managing Member (“Agent”).
    The Services shall be considered completed on the date when all individual building lots underlying the presently approved
    plan of development of the Land, as amended and adjusted, are recorded under individual physical addresses by Chesterfield
    County, Virginia and the Company receives a legal opinion from an independent attorney licensed to practice law in the Commonwealth
    of Virginia that a sale of such individual lots is fully permitted under the effective Virginia laws (“Completion
    Date”.)
	 	 	 
	 	4.	In
    consideration for the Services, the Company shall pay to Alliance the amount of Nine Hundred Sixteen Thousand One Hundred
    Forty ($916,140) U.S. Dollars (“Compensation”) as specified in Article IV Section 4.1(b)
    of the Company’s Operating Agreement. The Compensation shall be subject to risk of forfeiture and the Parties specifically
    agree that nothing in this Agreement shall guarantee the payment of the Compensation on time or at all. Such payment of the
    Compensation shall be contingent on the Company receiving cash proceeds from the sale of individual lots underlying the Land
    in the amounts sufficient to make cash distribution as specified in Article IV Section 4.1(b) of the Company’s Operating
    Agreement.

 

    	Page 1 of 3

    	 

    

 

	 	5.	The
    term of this agreement (“Term’) shall commence on the Effective Date and end on the Completion
    Date as stated in Section 3 above. Any of the Company’s obligations that have accrued prior to the termination of this
    Agreement shall survive the termination of this Agreement.
	 	 	 
	 	6.	This
    Agreement shall not be assignable by either party without the prior written consent of the other party, and such consent not
    to be unreasonably withheld. The parties specifically agree that if requested by Alliance in writing, the Company will consent
    to the assignment of this Agreement to another entity for as long as Alliance renders the Services as the Company’s
    Agent under this Agreement.
	 	 	 
	 	7.	The
    Company understands that Alliance does not purport to render any architectural, engineering or general contractor services,
    and that the scope and nature of the Services shall be limited to representing the Company in capacity of the Agent as specified
    in Section 3 above (“Scope of Services”). Alliance shall no longer contract third parties
    for on behalf of the Company and the Company shall not be responsible for any future reimbursements of expenses that Alliance
    may accrue under this Agreement during the Term in connection with the foregoing. However, it is specifically agreed by the
    parties that the Company shall pay to Alliance the amount of reimbursements accrued prior to the Effective Date of this Agreement
    in the amount of Sixty-Four Thousand One Hundred Fifty-Three ($64,153) U.S. Dollars (“Reimbursements-to-Date”).
    The payment of Reimbursements-to-Date shall be guaranteed by the corporate guarantee of the Company and shall be repaid at
    any time on or before December 31, 2019.
	 	 	 
	 	8.	The
    Company and Alliance shall indemnify, defend and keep each other harmless from and against all Claims that may arise from
    the Construction Management Agreement or this Agreement, except obvious negligence or intentional misconduct. As used herein,
    “Claims” shall mean all claims, suits, proceedings, actions, demands, causes of action, responsibility,
    liability, judgments, executions, damages, loss and expense (including attorney’s fees).
	 	 	 
	 	9.	All
    notices called for hereunder shall be deemed delivered one day after having been posted in the United States mail, postage
    prepaid, at the address shown on the signature page of this Agreement, which address may be changed by either party by giving
    notice as called for herein.
	 	 	 
	 	10.	The
    Parties agree that the terms and conditions of this Agreement shall constitute the final and all-inclusive agreement between
    the parties on the subject thereof, and that the integrated terms and conditions of this Agreement shall be legally binding.
    The Parties further agree that they do not intend to be bound by any other agreements, promises, conditions or representations,
    written or oral, of whatsoever kind or nature, including, without limitation, any trade usage or course of dealing which the
    Parties hereby intend to be negated.
	 	 	 
	 	11.	The
    Parties agree to use their respective reasonable commercial efforts in good faith to resolve any disputes arising out of or
    related to this Agreement. To the extent that the dispute in question cannot be resolved through such normal business practices,
    it shall first be submitted to mediation before a professional mediator, mutually agreeable to the Parties, for a period to
    last no more than ninety (90) days, and if such dispute is not settled within such time, it shall then be settled by binding
    arbitration before a single arbitrator in Broward County, Florida, in accordance with the rules of the American Arbitration
    Association. The decision of the arbitrator shall be in writing with written findings of fact and shall be final and binding
    on the Parties. The costs of arbitration, including the fees and expenses of the arbitrator, shall be shared equally by the
    Parties. Each party shall bear the cost of preparing and presenting its case. The arbitrator shall be empowered to award money
    damages, but shall not be empowered to award consequential damages, indirect damages, special damages, punitive or exemplary
    damages or specific performance. The award may be confirmed and enforced in any court of competent jurisdiction. This section
    provides the sole recourse for the settlement of any disputes arising out of, in connection with, or related to this Agreement,
    except that a party may seek a preliminary injunction or other injunctive relief in any court of competent jurisdiction if
    in its reasonable judgment such action is necessary to avoid irreparable harm.
	 	 	 
	 	12.	No
    waiver of any term or right in this Agreement shall be effective unless in writing, signed by an authorized representative
    of the waiving party. Any waiver of any provision of this Agreement shall not constitute a waiver of any other provision or
    of the same provision in the future.
	 	 	 
	 	13.	Any
    and all matters of dispute between the parties to this Agreement, whether arising from the Agreement itself or arising from
    alleged extra contractual facts prior to, during or subsequent to the Agreement, including, without limitation, fraud, misrepresentation,
    negligence or any other alleged tort or violation of the contract, shall be governed by, construed, and enforced in accordance
    with the laws of State of Florida, regardless of the legal theory upon which such matter is asserted, not including State
    of Florida choice of laws rules but including its statutes of limitations.

 

    	Page 2 of 3

    	 

    

 

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

 

	COMPANY:	 	ALLIANCE:
	 	 	 	 	 
	By:	/s/
    Jonathan Barker	 	By:	/s/
    Maxim Temnikov
	 	Jonathan
    Barker, Manager	 	 	Maxim
    Temnikov, President

 

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