Document:

SETTLEMENT
AGREEMENT

This
Settlement Agreement (this “Agreement”) is made and entered into as of the 5th day of December, 2015 (the
“Effective Date”), by and between HH-Poca Fiesta, LLC, an Arizona limited liability company
(“Plaintiff”), on the one hand, and Epic Stores, L.L.C., an Arizona limited liability company dba Epic Thrift
(“Epic AZ”), Epic Stores, LLC, a Nevada limited liability company (“Epic NV”), and Epic Stores Corp.,
a publicly traded Nevada corporation (“Epic Corp”) (collectively referred to herein as “Defendants”),
on the other hand.

RECITALS

A.               
WHEREAS, Plaintiff has filed a lawsuit against Defendants in the Maricopa County Superior Court, Case Number CV2015-011494 (the
“Lawsuit”). In the Lawsuit, Plaintiff asserts claims against Defendants arising out of a lease dated October 7, 2013
(the “Lease”) for certain non-residential premises located at and commonly known as 1110 West Southern Avenue, Suite
20, in Mesa, Arizona (the “Leased Premises”).

 

B.                
WHEREAS, Plaintiff and Defendants (collectively, the “Parties”) now desire to resolve the Lawsuit on the terms set
forth herein.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the Parties
agree as follows:

 

1.                 
Stipulation to Judgment. Immediately upon mutual execution and delivery of this Agreement, the Parties, through their respective
counsel, shall execute a “Stipulation to Judgment” in the form attached hereto as Exhibit A (the “Stipulation”).
The Stipulation shall provide for the entry of a “Judgment” in the Lawsuit in favor of Plaintiff and against Defendants
Epic AZ and Epic NV in the principal sum of Three Hundred Thirty Five Thousand and No/100 Dollars ($335,000.00) in the form attached
hereto as Exhibit B (the “Judgment”). The Stipulation and Judgment shall provide for all claims against Epic Corp
to remain pending notwithstanding entry of the Judgment. The Stipulation shall be executed by counsel for Defendants and the original
thereof shall be immediately forwarded to counsel for Plaintiff. It is expressly agreed that the original, fully-executed Stipulation
shall be maintained in the files of counsel for Plaintiff and shall not be filed with the Court unless and until an “Event
of Default” occurs as specified in Section 3 of this Agreement.

    	 	1	 

    	 	 	 

    

 

2.                 
Settlement Payment. In order to prevent the filing of the Stipulation, Epic AZ and/or Epic NV shall pay Plaintiff the total
amount of Two Hundred Thousand and No/100 Dollars ($200,000.00) (the “Settlement Amount”). The Settlement Amount shall
be paid according to the following schedule: 

		a.	Seventeen
                                         Thousand Dollars ($17,000.00) on or before January 4, 2015;

		b.	Two
                                         Thousand Dollars ($2,000.00) on or before January 11, 2016;

		c.	Two
                                         Thousand Dollars ($2,000.00) on or before January 18, 2016;

		d.	Two
                                         Thousand Dollars ($2,000.00) on or before January 25, 2016;

		e.	Two
                                         Thousand Dollars ($2,000.00) on or before February 1, 2016;

		f.	Two
                                         Thousand Dollars ($2,000.00) on or before February 8, 2016;

		g.	Two
                                         Thousand Dollars ($2,000.00) on or before February 15, 2016;

		h.	Two
                                         Thousand Dollars ($2,000.00) on or before February 22, 2016;

		i.	Two
                                         Thousand Dollars ($2,000.00) on or before February 29, 2016;

		j.	Two
                                         Thousand Dollars ($2,000.00) on or before March 7, 2016; and

		k.	One
                                         Hundred Sixty-Five Thousand Dollars ($165,000.00) on or before March 11, 2016.

Each
of the foregoing payments is referred to herein as a “Settlement Installment.” All Settlement Installments shall be
made payable to “HH-Poca Fiesta, LLC” and shall be sent to the attention of counsel for Plaintiff (George U. Winney,
Esq., Two N. Central Ave., Suite 1500, Phoenix, AZ 85004) so as to be received on or before its due date. Alternatively,
Epic AZ and/or Epic NV may elect (or, on at least seven (7) days’ written email notice to counsel for Defendants, Plaintiff
may require) that one or more Settlement Installments by made by wire transfer to Plaintiff so as to be received on or
before its due date. Plaintiff’s wiring instructions are as follows:

Alliance
Bank of Arizona

Account
#: 8010699679

Routing
#: 122105980

3.                 
Grace Periods/Default Notices/Filing of Stipulation. In the event any Settlement Installment is not received by the due
date set forth in Section 2 of this Agreement, Plaintiff shall cause a written notice of such fact (a “Default Notice”)
to be provided by e-mail to counsel for Defendants (Chase E. Halsey, Esq. at Chase@MKCFirm.com). If the delinquent Settlement
Installment is not received by Plaintiff’s counsel (or by Plaintiff, if sent by wire) within three (3) business days
of the date of a Default Notice, an “Event of Default” shall have occurred. The Parties agree, however, that Plaintiff
shall not be required to issue more than two (2) Default Notices under this paragraph. Once two (2) Default Notices have been
issued, an “Event of Default” shall occur, without the issuance of any further Default Notice and without any grace
period whatsoever, if Epic AZ and/ or Epic NV thereafter fail to pay any Settlement Installment so that it is received
on or before its due date. Upon the occurrence of any Event of Default, Plaintiff shall be entitled to immediately file the Stipulation
with the Court, and lodge the Judgment for immediate entry by the Court. In the event the Judgment is entered after one or more
Settlement Installments have been paid by Epic AZ and/or Epic NV pursuant to this Agreement, the Judgment shall be entered in
the full amount of Three Hundred Thirty-Five Thousand Dollars ($335,000.00) as set forth in Section 1 of this Agreement, but any
Settlement Installments theretofore paid by Epic AZ and/or Epic NV to Plaintiff pursuant to Section 2 of this Agreement shall
be deemed payments against the Judgment. Any Settlement Installment that is returned to Plaintiff for insufficient funds, stop
payment, or other cause shall be deemed the equivalent of a failure by Epic AZ and Epic NV to pay such Settlement Installment.

    	 	2	 

    	 	 	 

    

4.                 
Disposition of Lawsuit. In the event all Settlement Installments are paid without an Event of Default, Plaintiff shall
destroy the original Stipulation and the Parties, through their respective counsel, shall promptly stipulate to a dismissal of
the Lawsuit with prejudice (with the Parties to bear their own costs and attorney’s fees incurred therein.) The Parties
agree to stipulate, as necessary, to extend case deadlines in connection with the Lawsuit in order to minimize legal expenses
pending payment in full of the Settlement Amount. 

5.                 
Possession of Leased Premises; Disclaimer of Property. Defendants hereby acknowledge and agree that they have no further
right to possess, use, occupy, or enter the Leased Premises for any purpose whatsoever, or to recover or remove any property from
the Leased Premises. All property of Defendants that is located in the Leased Premises as of the Effective Date, if any, is hereby
disclaimed by Defendants in favor of Plaintiff. Defendants hereby represent and warrant to Plaintiff that no third party has any
right, interest, or claim, through Defendants, in or to any property located in the Leased Premises as of the Effective Date.
Defendants agree that Plaintiff may dispose of any property that is located in the Leased Premises as of the Effective Date, in
any manner and in Plaintiff’s sole and absolute discretion, and Plaintiff shall have no obligation whatsoever to account
to Defendants therefore.

 

6.                 
Security Deposit. Defendants hereby forfeit any and all rights and interests in and to any deposits held by Plaintiff in
connection with the Lease, if any, and any such deposits shall not be applied in reduction of the Settlement Amount or any Settlement
Installments.

 

7.                 
Release of Defendants. If and only if all Settlement Installments as set forth in Section 2 above are paid by Epic AZ and/or
Epic NV without the occurrence of an “Event of Default” as specified in Section 3 of this Agreement, Plaintiff hereby
releases Defendants, together with Defendants’ members, managers, employees, representatives, agents, parent companies,
subsidiaries, affiliates, insurers, successors, or assigns, from any and all actions, causes of action, demands, liabilities,
or any other claims of any nature whatsoever, known or unknown, liquidated or unliquidated, including but not limited to those
which in any way arise out of or relate to the Lawsuit, Lease or the Leased Premises.

 

8.                 
Release of Plaintiff. Defendants hereby release Plaintiff, together with Plaintiff’s members, managers, employees,
representatives, agents, parent companies, subsidiaries, affiliates, insurers, successors, or assigns, from any and all actions,
causes of action, demands, liabilities, or any other claims of any nature whatsoever, known or unknown, liquidated or unliquidated,
including but not limited to those which in any way arise out of or relate to the Lawsuit, Lease or the Leased Premises.

    	 	3	 

    	 	 	 

    

 

9.                 
Construction. This Agreement has been jointly and freely negotiated by the Parties and their respective counsel. Accordingly,
neither this Agreement nor any provision hereof shall be construed against any of the Parties as drafter.

 

10.             
Counterparts/Facsimiles. This Agreement may be executed in one or more counterparts, which taken together shall have the
force and effect of one original document. Facsimile copies of the signature pages to this Agreement shall be deemed originals.

 

11.             
Costs and Attorneys’ Fees. The Parties shall bear their own costs and attorneys’ fees incurred in connection
with the Lawsuit, and in connection with the negotiation, preparation, and review of this Agreement. However, in the event any
action is brought to enforce the terms of this Agreement, the prevailing party in such action shall receive an award of its costs
and reasonable attorneys’ fees incurred in that action.

 

12.             
Jurisdiction and Venue: Jury Waiver. In the event any lawsuit is filed to enforce the terms
of this Agreement, the Parties hereby agree that such lawsuit shall be filed in the Superior Court of Arizona, in the County of
Maricopa, and that jurisdiction and venue shall be proper in such court. The Parties hereby waive the right to trial by jury in
any such lawsuit.

 

13.             
Integration. This Agreement constitutes the final, entire, and integrated agreement between the Parties with respect to
the subject matter hereof, and supersedes any and all other agreements or communications, whether prior or contemporaneous, and
whether written or oral, regarding the terms of the settlement set forth herein.

 

14.             
Restriction on Amendments. This Agreement may not be amended or modified except by a writing executed by all of the Parties.

 

15.             
Time of the Essence. Time is of the utmost essence with respect to the obligations and deadlines set forth in this Agreement.

[SIGNATURE
PAGE FOLLOWS]

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

    	 	4	 

    	 	 	 

    

  

IN
WITNESS HEREOF, the Parties have executed this Settlement Agreement as of the Effective Date.

 

		HH-Poca
                                         fiesta, llc,

        an
        Arizona limited liability company

         

         

        By:
        /s/ Chris Hinkson

        Name:
        Chris Hinkson

        Title: Manager

         

         

		EPIC
                                         STORES, L.L.C.,

        an
        Arizona limited liability company

         

         

        By:
        /s/ Brian Davidson

        Name:
        Brian Davidson

        Title:
        Managing Member

         

         

		EPIC
                                         STORES, LLC,

        a
        Nevada limited liability company

         

         

        By:
        /s/ Brian Davidson

        Name:
        Brian Davidson

        Title:
        Managing Member

         

         

		EPIC
                                         STORES CORP.,

        a
        Nevada corporation

         

        By:
        /s/ Brian Davidson

        Name: Brian Davidson

        Title: CEO

        

    	 	5	 

    	 	 	 

    

 

EXHIBIT
A

 

(STIPULATION
TO JUDGMENT)

    	 	6	 

    	 	 	 

    

George
U. Winney #019370

GAMMAGE
& BURNHAM, P.L.C.

A
Professional Limited Liability Company

Attorneys
at Law

Two
North Central Avenue, 15th floor

Phoenix,
AZ 85004

telephone
(602) 256-0566 | fax (602) 256-4475

email:
gwinney@gblaw.com

Attorneys for Plaintiff 

 

	SUPERIOR
                                         COURT OF ARIZONA

        Maricopa
        COUNTY 

	HH-POCA
                                         FIESTA, LLC, an Arizona limited liability company,

        Plaintiff,

        vs.

        EPIC
        STORES, L.L.C., an Arizona limited liability company dba EPIC THRIFT; EPIC STORES, LLC, a Nevada limited liability company;
        EPIC STORES CORP., a Nevada corporation; and DOE DEFENDANTS 1-10,

        Defendants.
	 

        Case
        No. CV2015-011494

         

         

         

         

        STIPULATION
        TO JUDGMENT

         

         

	 	 	 

HH-Poca
Fiesta, LLC, an Arizona limited liability company (“Plaintiff”), on the one hand, and Epic Stores, L.L.C., an Arizona
limited liability company dba Epic Thrift, and Epic Stores, LLC, a Nevada limited liability company (collectively referred to
herein as the “Epic LLC Defendants”), on the other hand, hereby stipulate that judgment be entered in favor of Plaintiff
and against the Epic LLC Defendants in the amount of Three Hundred Thirty-Five Thousand and 00/100 Dollars ($335,000.00), together
with post-judgment interest thereon at the contractual rate of eighteen percent (18%) per annum from the date of judgment until
paid. The parties agree to bear their own costs and attorney’s fees incurred herein.

    	 	7	 

    	 	 	 

    

Plaintiff’s
claims against Epic Stores Corp., a Nevada corporation, shall remain pending.

A
proposed form of judgment is submitted herewith, and Plaintiff and the Epic LLC Defendants hereby stipulate and request that it
be entered forthwith.

Respectfully
submitted this ____ day of ________________, 20___.

 

GAMMAGE
& BURNHAM, PLC

By:
___________________

George
U. Winney

Two
North Central Avenue, 15th Floor

Phoenix,
Arizona 85004

Attorneys
for Plaintiff

 

 

MURPHY
KARBER CORDIER PLC

By:
___________________

Chase
E. Halsey

Murphy Karber Cordier PLC

2828 N. Central Ave., Ste. 1110

Phoenix, Arizona 85004

Attorneys for Defendants 

 

    	 	8	 

    	 	 	 

    

EXHIBIT
B

 

(FORM
OF JUDGMENT)

    	 	9	 

    	 	 	 

    

George
U. Winney #019370

GAMMAGE
& BURNHAM, P.L.C.

A
Professional Limited Liability Company

Attorneys
at Law

Two
North Central Avenue, 15th floor

Phoenix,
AZ 85004

telephone
(602) 256-0566 | fax (602) 256-4475

email:
gwinney@gblaw.com

Attorneys for Plaintiff 

 

	SUPERIOR
                                         COURT OF ARIZONA

        Maricopa
        COUNTY 

	HH-POCA
                                         FIESTA, LLC, an Arizona limited liability company,

        Plaintiff,

        vs.

        EPIC
        STORES, L.L.C., an Arizona limited liability company dba EPIC THRIFT; EPIC STORES, LLC, a Nevada limited liability company;
        EPIC STORES CORP., a Nevada corporation; and DOE DEFENDANTS 1-10,

        Defendants.
	Case
                                         No. CV2015-011494

         

         

         

         

         

        JUDGMENT

         

         

         

         

On
stipulation of the parties, and good cause appearing:

IT
IS HEREBY ORDERED, ADJUDGED, AND DECREED:

That
judgment is hereby entered in favor of plaintiff HH-Poca Fiesta, LLC, an Arizona limited liability company, and against (i) Epic
Stores, L.L.C., an Arizona limited liability company dba Epic Thrift, and (ii) Epic Stores, LLC, a Nevada limited liability, company
jointly and severally, in the amount of Three Hundred Thirty-Five Thousand and 00/100 Dollars ($335,000.00), together with post-judgment
interest thereon at the contractual rate of eighteen percent (18%) per annum from the date of this judgment until paid in full.

    	 	10	 

    	 	 	 

    

IT
IS FURTHER ORDERED that the parties shall bear their own costs and attorney’s fees incurred herein.

IT
IS FURTHER ORDERED the plaintiff’s claims against defendant Epic Stores Corp, a Neva da corporation, remain pending.

The
Court, expressly determining that there is no just reason for delay in entering final judgment, hereby expressly directs, pursuant
to Rule 54(b), Rules of Civil Procedure, that this final judgment be entered forthwith. 

DONE
IN OPEN COURT on this _____ of _________________, 20____.

 

 

___________________

Maricopa
County Superior Court Judge

    	 	11EX-4.1

 Exhibit 4.1 

SECOND AMENDMENT dated as of January 8, 2016 (this “Amendment”), to the SECTION 382 RIGHTS AGREEMENT
dated as of October 31, 2013, as amended as of June 24, 2014 (as so amended and in effect from the date hereof, the “Rights Agreement”), between ARIAD PHARMACEUTICALS, INC., a Delaware corporation (the
“Company”), and COMPUTERSHARE TRUST COMPANY, N.A., as Rights Agent (the “Rights Agent”). 
 WHEREAS, the
Company may from time to time supplement or amend the Rights Agreement in accordance with the provisions of Section 26 thereof; 

WHEREAS, the Company desires to amend the Rights Agreement to accelerate the Final Expiration Date as provided herein and subject to the terms
and conditions hereof. 
 NOW, THEREFORE, in consideration of the foregoing and the mutual agreements set forth in the Rights Agreement and
this Amendment, the parties hereto hereby agree as follows: 
 SECTION 1. Capitalized Terms. Capitalized terms used but not otherwise
defined herein shall have the meanings specified in the Rights Agreement. 
 SECTION 2. Amendment. The definition of the term
“Final Expiration Date” in the Rights Agreement and the Form of Right Certificate attached thereto is hereby amended to be the Close of Business on January [8], 2016. All references in the Rights Agreement and in the Form of Right
Certificate attached thereto to the Final Expiration Date, or to October 30, 2016 as the expiration date of the Rights Agreement and the rights plan established thereunder, shall be deemed to refer to the Close of Business on January [8], 2016.

 SECTION 3. Full Force and Effect. Except as expressly amended hereby, the Rights Agreement shall continue in full force and effect
in accordance with the provisions thereof. 
 SECTION 4. Governing Law. This Amendment shall be deemed to be a contract made under
the law of the State of Delaware and for all purposes shall be governed by and construed in accordance with the law of such State applicable to contracts to be made and performed entirely within such State. 

SECTION 5. Counterparts; Effectiveness. This Amendment may be executed in any number of counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Amendment executed and/or transmitted electronically shall have the same authority, effect
and enforceability as an original signature. This Amendment and the amendments set forth in Section 2 hereof shall become effective on the date first referenced above. 

 SECTION 6. Descriptive Headings. Descriptive headings of the several Sections of this
Amendment are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

SECTION 7. Rights Agreement as Amended. From and after the date hereof, any reference to the Rights Agreement and the Form of Right
Certificate attached thereto shall mean such agreement or certificate, as applicable, as amended hereby. 
 SECTION 8. Severability.
If any term, provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this
Amendment shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 
 [Remainder of page
intentionally left blank] 

  
 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the
day and year first above written. 
  

			
	ARIAD PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Thomas J. DesRosier

		 	Thomas J. DesRosier
		 	Executive Vice President, Chief Legal and
		 	Administrative Officer and Secretary

  

			
	 COMPUTERSHARE TRUST COMPANY, N.A.,

as Rights Agent

		
	By:	 	 /s/ Tyler Haynes

		 	Tyler Haynes
		 	Vice President

  
 [SIGNATURE
PAGE TO SECOND AMENDMENT TO RIGHTS AGREEMENT] 

 ARIAD PHARMACEUTICALS, INC. 

Officer’s Certificate 

The undersigned, Thomas J. DesRosier, Executive Vice President, Chief Legal and Administrative Officer and Secretary of ARIAD Pharmaceuticals,
Inc., a Delaware corporation (the “Company”), does hereby certify, pursuant to Section 26 of the Section 382 Rights Agreement dated as of October 31, 2013, as amended as of June 24, 2014 (as so amended and in
effect from the date hereof, the “Rights Agreement”), between the Company and Computershare Trust Company, N.A., as Rights Agent, that the Second Amendment to the Rights Agreement attached hereto as Exhibit A complies with
Section 26 of the Rights Agreement. 
 Dated: January 8, 2016 

 

			
	Name:	 	Thomas J. DesRosier
	Title:	 	Executive Vice President, Chief Legal and Administrative Officer and Secretary

 EXHIBIT A 

[SECOND AMENDMENT]

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