Document:

Exhibit 10.1

 

PLURISTEM
THERAPEUTICS INC.

 

This Agreement is made as of the ___ day
of ________, by and between Pluristem Therapeutics Inc., a Nevada corporation (the “Corporation”), and ___________
(“Indemnitee”), a director and/or officer of the Corporation.

 

WHEREAS, it is essential to the Corporation
to retain and attract as directors and officers the most capable persons available;

 

WHEREAS, it is the express policy of the
Corporation to indemnify its directors and officers so as to provide them with the maximum possible protection permitted by law;
and

 

WHEREAS, Indemnitee is a director or officer
of the Corporation;

 

WHEREAS, both the Corporation and Indemnitee
recognize the increased risk of litigation and other claims being asserted against directors and officers of corporations;

 

WHEREAS, in recognition of Indemnitee’s
need for substantial protection against personal liability and in order to induce Indemnitee to serve or continue to serve the
Corporation, the Corporation wishes to provide Indemnitee with the benefits contemplated by this Agreement to the fullest extent
permitted by law;

 

NOW THEREFORE, in consideration of the above
premises and intending to be legally bound hereby, the parties agree as follows:

 

1.
Agreement to Serve. Indemnitee agrees to serve or continue to serve as director and/or officer of the Corporation
for so long as he is duly elected or appointed or until such time as he tenders his resignation in writing.

 

2.
Definitions. As used in this Agreement:

 

		(a)	“Change in Control” shall be deemed to
have occurred if (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)), other than a trustee or other fiduciary holding securities under an employee
benefit plan of the Corporation or a corporation owned directly or indirectly by the shareholders of the Corporation in substantially
the same proportions as their ownership of stock of the Corporation, becomes the “Beneficial Owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing 20% or more of the total
voting power represented by the Corporation’s then outstanding Voting Securities, or (ii) during any period of two consecutive
years, individuals who at the beginning of such period constitute the Board and any new director whose election by the Board or
nomination for election by the Corporation’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors
then still in office who either were directors at the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority thereof, or (iii) the shareholders of the Corporation approve
a merger or consolidation of the Corporation with any other corporation, other than a merger or consolidation that would result
in the Voting Securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into Voting Securities of the surviving entity) at least 80% of the total voting power represented
by the Voting Securities of the Corporation or such surviving entity outstanding immediately after such merger or consolidation,
or the shareholders of the Corporation approve a plan of complete liquidation of the Corporation or an agreement for the sale
or disposition by the Corporation (in one transaction or a series of transactions) of all or substantially all of the Corporation’s
assets.

 

     

     

    

 

		(b)	The term “Corporate Status” shall mean the
status of a person who is or was a director and/or officer of the Corporation, or is or was serving, or has agreed to serve, at
the request of the Corporation, as a director, officer, partner, trustee, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise.

 

		(c)	The term “Expenses” shall include, without
limitation, attorneys’ fees, retainers, court costs, transcript costs, fees of experts, reasonable travel expenses approved
in advance by the Corporation, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees
and other disbursements or expenses of the types customarily incurred in connection with investigations, judicial or administrative
proceedings or appeals, but shall not include the amount of judgments, fines or penalties against Indemnitee or amounts paid in
settlement in connection with such matters.

 

		(d)	The term “Independent Counsel” shall mean an
attorney admitted to practice in the State of Nevada, selected by Indemnitee and approved and appointed by a majority vote of
a quorum consisting of Disinterested Directors, as defined in Paragraph 9.

 

		(e)	References to “other enterprise” shall include
employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit
plan; references to “serving at the request of the Corporation” shall include any service as a director, officer,
employee or agent of the Corporation which imposes duties on, or involves services by, such director, officer, employee or agent
with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner
he reasonably believed to be in the interests of the participants and beneficiaries of an employee benefit plan shall be deemed
to have acted in a manner “not opposed to the best interests of the Corporation” as referred to in this Agreement.

 

		(f)	The term “Proceeding” shall include any threatened,
pending or completed action, suit or proceeding, whether brought by or in the right of the Corporation or otherwise and whether
of a civil, criminal, administrative or investigative nature, and any appeal therefrom.

 

		(g)	The term “Voting Securities” shall mean securities
of the Corporation that vote generally in the election of directors.

 

3.
Indemnification in Third-Party Proceedings. The Corporation shall indemnify Indemnitee in accordance with the provisions
of this Paragraph 3 if Indemnitee was or is a party to or threatened to be made a party to or otherwise involved in any Proceeding
(other than a Proceeding by or in the right of the Corporation to procure a judgment in its favor) by reason of Indemnitee’s
Corporate Status or by reason of any action alleged to have been taken or omitted in connection therewith, against all Expenses,
judgments, fines, penalties and amounts paid in settlement actually and reasonably incurred by Indemnitee or on Indemnitee’s
behalf in connection with such Proceeding, if Indemnitee acted in good faith and in a manner which Indemnitee reasonably believed
to be in, or not opposed to, the best interests of the Corporation and, with respect to any criminal Proceeding, had no reasonable
cause to believe that Indemnitee’s conduct was unlawful. The termination of any Proceeding by judgment, order, settlement,
conviction or upon a plea of nolo contendere, or its equivalent, shall not, of itself, create a presumption that Indemnitee did
not act in good faith and in a manner which Indemnitee reasonably believed to be in, or not opposed to, the best interests of the
Corporation and, with respect to any criminal Proceeding, had reasonable cause to believe that Indemnitee’s conduct was unlawful.

 

    2

     

    

 

4.
Indemnification in Proceedings by or in the Right of the Corporation. The Corporation shall indemnify Indemnitee
in accordance with the provisions of this Paragraph 4 if Indemnitee is a party to or threatened to be made a party to or otherwise
involved in any Proceeding by or in the right of the Corporation to procure a judgment in its favor by reason of Indemnitee’s
Corporate Status or by reason of any action alleged to have been taken or omitted in connection therewith, against all Expenses
and, to the extent permitted by law, judgment, fines, penalties and amounts paid in settlement actually and reasonably incurred
by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding, if Indemnitee acted in good faith and in a manner
which Indemnitee reasonably believed to be in, or not opposed to, the best interests or the Corporation, except that no indemnification
shall be made under this Paragraph 4 in respect to any claim, issue or matter as to which Indemnitee shall have been adjudged to
be liable to the Corporation, unless and only to the extent that a court of proper jurisdiction shall determine upon application
that, despite the adjudication of such liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnity for such Expenses as such court shall deem proper.

 

5.
Exceptions to Right of Indemnification. Notwithstanding anything to the contrary in this Agreement, except as set
forth in Paragraph 10, the Corporation shall not indemnify Indemnitee in connection with a Proceeding (or part thereof) initiated
by Indemnitee unless (i) the initiation thereof was approved by the Board of Directors of the Corporation; or (ii) the Proceeding
is instituted after a Change in Control. Notwithstanding anything to the contrary in this Agreement, the Corporation shall not
indemnify Indemnitee to the extent Indemnitee is reimbursed from the proceeds of insurance, and in the event the Corporation makes
any indemnification payments to Indemnitee and Indemnitee is subsequently reimbursed from the proceeds of insurance, Indemnitee
shall promptly refund such indemnification payments to the Corporation to the extent of such insurance reimbursement.

 

6.
Indemnification of Expenses. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee
has been successful, on the merits or otherwise, in defense of any Proceeding or in defense of any claim, issue or matter therein,
Indemnitee shall be indemnified against all Expenses incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.
Without limiting the foregoing, if any Proceeding or any claim, issue or matter therein is disposed of, on the merits or otherwise
(including a disposition without prejudice), without (i) the disposition being adverse to the Indemnitee, (ii) an adjudication
that the Indemnitee was liable to the Corporation, (iii) a plea of guilty or nolo contendere by the Indemnitee, (iv) an
adjudication that the Indemnitee did not act in good faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the Corporation, and (v) with respect to any criminal proceeding, an adjudication that the Indemnitee had
reasonable cause to believe his conduct was unlawful, Indemnitee shall be considered for the purposes hereof to have been wholly
successful with respect thereto. In addition, notwithstanding any other provision contained in this Agreement, to the extent that
Indemnitee is, by reason of his Corporate Status, a witness to any Proceeding to which Indemnitee is not a party, Indemnitee shall
be indemnified and held harmless from all Expenses actually and reasonable incurred by Indemnitee in connection therewith.

  

    3

     

    

 

7.
Notification and Defense of Claim. As a condition precedent to Indemnitee’s right to be indemnified, Indemnitee
agrees to notify the Corporation in writing as soon as reasonably practicable of any Proceeding for which indemnity will or could
be sought by Indemnitee and provide the Corporation with a copy of any summons, citation, subpoena, complaint, indictment, information
or other document relating to such Proceeding with which Indemnitee is served; provided, however, that the failure to give such
notice shall not relieve the Corporation of its obligations to Indemnitee under this Agreement, except to the extent, if any, that
the Corporation is actually prejudiced by the failure to give such notice. With respect to any Proceeding of which the Corporation
is so notified, the Corporation will be entitled to participate therein at its own expense and/or to assume the defense thereof
at its own expense, with legal counsel reasonably acceptable to Indemnitee. After notice from the Corporation to Indemnitee of
its election so to assume such defense, the Corporation shall not be liable to the Indemnitee for any legal or other expenses subsequently
incurred by the Indemnitee in connection with such Proceeding, other than as provided below in this Paragraph 7. Indemnitee shall
have the right to employ Indemnitee’s own counsel in connection with such Proceeding, but the fees and expenses of such counsel
incurred after notice from the Corporation of its assumption of the defense thereof shall be at the expense of Indemnitee unless
(i) the employment of counsel by Indemnitee has been authorized by the Corporation, (ii) counsel to Indemnitee shall
have reasonably concluded that there may be a conflict of interest or position on any significant issue between the Corporation
and Indemnitee in the conduct of the defense of such Proceeding, (iii) after a Change in Control, Indemnitee's employment of its
own counsel has been approved by the Independent Counsel, or (iv) the Corporation shall not in fact have employed counsel
to assume the defense of such Proceeding, in each of which cases the fees and expenses of counsel for Indemnitee shall be at the
expense of the Corporation, except as otherwise expressly provided by this Agreement. The Corporation shall not be entitled, without
the consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Corporation or as to which counsel
for Indemnitee shall have reasonably made the conclusion provided for in clause (ii) above. The Corporation shall not be required
to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without its written
consent, provided, however, that if a Change in Control has occurred, the Corporation shall be liable for indemnification
of Indemnitee for amounts paid in settlement if the Independent Counsel has approved the settlement. The Corporation shall not
settle any Proceeding in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee’s written
consent. Neither the Corporation nor the Indemnitee will unreasonably withhold its consent to any proposed settlement.

 

8.
Advancement of Expenses. Any Expenses incurred by Indemnitee in connection with any such Proceeding to which Indemnitee
was or is a witness or a party or is threatened to be a party by reason of his Corporate Status or by reason of any action alleged
to have been taken or omitted in connection therewith shall be paid by the Corporation in advance of the final disposition of such
matter; provided, however, that the payment of such Expenses incurred by the Indemnitee in advance of the final disposition of
such matter shall be made only upon receipt of an undertaking by or on behalf of the Indemnitee to repay all amounts so advanced
in the event that it shall ultimately be determined that the Indemnitee is not entitled to be indemnified by the Corporation as
authorized in this Agreement; and further provided that no such advancement of Expenses shall be made if it is determined that
(i) Indemnitee did not act in good faith and in a manner Indemnitee reasonably believes to be in, or not opposed to, the best
interests of the Corporation, or (ii) with respect to any criminal action or proceeding, the Indemnitee had reasonable cause
to believe Indemnitee’s conduct was unlawful. Such undertaking shall be accepted without reference to the financial ability
of Indemnitee to make such repayment. If, pursuant to the terms of this Agreement, Indemnitee is not entitled to be indemnified
with respect to such Proceeding, then such Expenses shall be paid within 60 days after the receipt by Indemnitee of the written
request by the Corporation for the Indemnitee to make payments to the Corporation.

 

    4

     

    

 

9.
Procedure for Indemnification. In order to obtain indemnification pursuant to Paragraphs 3, 4 or 6 of this Agreement,
Indemnitee shall submit to the Corporation a written request, including in such request such documentation and information as is
reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to
indemnification or advancement of Expenses. Any such indemnification or advancement of Expenses shall be made promptly, and in
any event within 60 days after receipt by the Corporation of the written request of the Indemnitee, unless with respect to requests
under Paragraphs 3 or 4 the Corporation determines within such 60-day period that such Indemnitee did not meet the applicable standard
of conduct set forth in Paragraphs 3 or 4, as the case may be. Such determination, and any determination pursuant to Paragraph 8
that advanced Expenses must be repaid to the Corporation, shall be made in each instance (a) by a majority vote of the directors
of the Corporation consisting of persons who are not at that time parties to the Proceeding (“Disinterested Directors”),
whether or not a quorum, (b) by a committee of Disinterested Directors designated by majority vote of Disinterested Directors,
whether or not a quorum, (c) if there are no Disinterested Directors, or if Disinterested Directors so direct, by independent
legal counsel (who may, to the extent permitted by applicable law, be regular legal counsel to the Corporation ) in a written opinion
or (d) by the stockholders.

 

10.
Remedies. The right to indemnification and immediate advancement of Expenses as provided by this Agreement shall
be enforceable by the Indemnitee in any court of competent jurisdiction. Unless otherwise required by law, the burden of proving
that indemnification is not appropriate shall be on the Corporation. Neither the failure of the Corporation to have made a determination
prior to the commencement of such action that indemnification is proper in the circumstances because Indemnitee has met the applicable
standard of conduct, nor an actual determination by the Corporation pursuant to Paragraph 9 that Indemnitee has not met such applicable
standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard
of conduct. Indemnitee’s expenses (of the type described in the definition of “Expenses” in Paragraph 2 (c))
reasonably incurred in connection with successfully establishing Indemnitee’s right to indemnification, in whole or in part,
in any such Proceeding also shall be indemnified by the Corporation.

 

11.
Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the
Corporation for some or a portion of the Expenses, judgments, fines penalties or amounts paid in settlement actually and reasonably
incurred by Indemnitee or on Indemnitee’s behalf in connection with any Proceeding but not, however, for the total amount
thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion of such Expenses, judgments, fines, penalties
or amounts paid in settlement to which Indemnitee is entitled.

 

12.
Establishment of Trust. In the event of a Change in Control, the Corporation shall, upon written request by Indemnitee,
create a trust for the benefit of Indemnitee and from time to time upon written request of Indemnitee shall fund the trust in an
amount sufficient to satisfy any and all claims hereunder, including Expenses, reasonably anticipated at the time of each such
request to be incurred in connection with investigating, preparing for, participating in, or defending any Proceeding as described
in Paragraphs 3 and 4. The amount or amounts to be deposited in the trust pursuant to the foregoing funding obligation shall be
determined by the Independent Counsel. The terms of the trust shall provide that upon a Change in Control, (i) the trust shall
not be revoked or the principal thereof invaded, without the written consent of Indemnitee, (ii) the trustee shall advance, within
ten (10) business days of a request by Indemnitee, any and all Expenses to Indemnitee, (iii) the trust shall continue to be funded
by the Corporation in accordance with the funding obligation set forth above, (iv) the trustee shall promptly pay to Indemnitee
all amounts for which Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise, and (v) all unexpended
funds in the trust shall revert to the Corporation upon a final determination by the Independent Counsel or a court of competent
jurisdiction, as the case may be, that Indemnitee has been fully indemnified under the terms of this Agreement. The trustee shall
be chosen by Indemnitee. Nothing in this Paragraph 12 shall relieve the Corporation of any of its obligations under this Agreement.
All income earned on the assets held in the trust shall be reported as income by the Corporation for federal, state, local, and
foreign tax purposes. The Corporation shall pay all costs of establishing and maintaining the trust and shall indemnify the trustee
against any and all expenses (including attorneys’ fees), claims, liabilities, loss, and damages arising out of or relating
to this Agreement or the establishment and maintenance of the trust.

 

    5

     

    

 

13.
Subrogation. In the event of any payment under this Agreement, the Corporation shall be subrogated to the extent
of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary
to secure such rights, including execution of such documents as are necessary to enable the Corporation to bring suit to enforce
such rights.

 

14.
Term of Agreement. This Agreement shall continue until and terminate upon the later of (a) six years after the
date that Indemnitee shall have ceased to serve as a director or officer of the Corporation or, at the request of the Corporation,
as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise; (b) the
expiration of all applicable statute of limitations periods for any claim which may be brought against Indemnitee in a Proceeding
as a result of his Corporate Status; or (c) the final termination of all Proceedings pending on the date set forth in clauses
(a) or (b) in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and
of any proceeding commenced by Indemnitee pursuant to Paragraph 10 of this Agreement relating thereto.

 

15.
Indemnification Hereunder Not Exclusive. The indemnification and advancement of Expenses provided by this Agreement
shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under the Articles of Incorporation, the
By-Laws, any agreement, any vote of stockholders or disinterested directors, the applicable law of the State of Nevada, and any
other law (common or statutory) or otherwise, both as to action in Indemnitee’s official corporate capacity and as to action
in another capacity while holding office for the Corporation. Nothing contained in this Agreement shall be deemed to prohibit the
Corporation from purchasing and maintaining insurance, at its expense, to protect itself or the Indemnitee against any expense,
liability or loss incurred by it or Indemnitee in any such capacity, or arising out of Indemnitee’s status as such, whether
or not Indemnitee would be indemnified against such expense, liability or loss under this Agreement; provided that the Corporation
shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent
that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise, including
as provided in Paragraph 5 hereof.

 

16.
No Special Rights. Nothing herein shall confer upon Indemnitee any right to continue to serve as a director or officer
of the Corporation for any period of time or, except as expressly provided herein, at any particular rate of compensation.

 

    6

     

    

 

17.
Savings Clause. If this Agreement or any portion thereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Corporation shall nevertheless indemnify Indemnitee as to Expenses, judgments, fines, penalties and amounts
paid in settlement with respect to any Proceeding to the full extent permitted by any applicable portion of this Agreement that
shall not have been invalidated and to the fullest extent permitted by applicable law.

 

18.
Counterparts; Facsimile Signatures. This Agreement may be executed in two counterparts, both of which together shall
constitute the original instrument. This Agreement may be executed by facsimile signatures.

 

19.
Successors and Assigns. This Agreement shall be binding upon the Corporation and its successors and assigns and shall
inure to the benefit of the estate, heirs, executors, administrators and personal representatives of Indemnitee.

 

20.
Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed
to constitute part of this Agreement or to affect the construction thereof.

 

21.
Modification and Waiver. This Agreement may be amended from time to time to reflect changes in applicable law or
for other reasons. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provision hereof nor shall any such waiver constitute a continuing waiver.

 

22.
Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed
to have been given (i) when delivered by hand or (ii) if mailed by certified or registered mail with postage prepaid,
on the third day after the date on which it is so mailed:

 

	(a)	if to the Indemnitee, to:	 
	 	 	 
	(b)	if to the Corporation, to:	 
	 	 	 

 

Pluristem Therapeutics Inc.

MATAM Advanced Technology Park,

Building No. 5,

Haifa, Israel 3508409

Attention: Yaky Yanay

Chief Executive Officer and President

 

or to such other address as may have been furnished to Indemnitee
by the Corporation or to the Corporation by Indemnitee, as the case may be.

 

23.
Applicable Law. This Agreement is governed by and is to be construed in accordance with the laws of the State of
Nevada without giving effect to any provisions thereof relating to conflict of laws.

 

24.
Enforcement. The Corporation expressly confirms and agrees that it has entered into this Agreement in order to induce
Indemnitee to continue to serve as director and/or officer of the Corporation and acknowledges that Indemnitee is relying upon
this Agreement in continuing in such capacity.

 

[remainder of page intentionally
left blank]

 

    7

     

    

  

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

 

	 	
        PLURISTEM THERAPEUTICS INC.

         

	 	By:	                                
	 	Name:	 
	 	Title:	 

 

	 	INDEMNITEE
	 	 	 
	 	By:	                                               
	 	Name:	 
	 	Title:	 

 

 

8ex-10.1

  SETTLEMENT AND MUTUAL RELEASE AGREEMENT
  
 This Settlement and Mutual Release Agreement (this “Agreement”) dated February 9, 2021, is by and between Rapid Therapeutic Science Laboratories, Inc., a Nevada corporation (“Rapid”), Texas MDI, Inc. (formerly Texas MDI, LLC), a Texas corporation (“Texas MDI”), Diamond Head Ventures, LLC, a Texas limited liability company (“Diamond Head”, and together with Rapid, and Texas MDI, the “Licensing Parties”) and EM3 Methodologies, LLC, an Arizona limited liability company (“EM3”), and Richard Adams, an individual (“Adams”), and Holly Brothers Pictures, LLC, a Montana limited liability company which is 50% owned by Adams and Donal R. Schmidt, Jr., the Chief Executive Officer of Rapid (“Holly”, and together with EM3 and Adams, collectively, the “EM3 Parties”), each a “Party” and collectively the “Parties.”
  
 W I T N E S S E T H:
  
  
 WHEREAS, EM3 and Diamond Head are party to that certain Sales and Licensing Agreement dated November 21, 2018, pursuant to which EM3 agreed to sell certain consumables to Diamond Head and provide a license to use certain intellectual property in connection therewith, which was amended on June 25, 2020, pursuant to an Exclusive License and Sales and Licensing Agreements First Amendment, dated June 25, 2020, by and between Rapid, Texas MDI, EM3 and Adams (the “First Amendment” and such Sales and Licensing Agreement, as amended to date, the “Sales and Licensing Agreement”);
  
 WHEREAS, EM3, Adams and Texas MDI are party to that certain Exclusive License Agreement dated October 2019, pursuant to which Texas MDI licensed certain intellectual property from EM3 (as amended by the First Amendment, the “TMDI License Agreement”);
  
 WHEREAS, Texas MDI and Rapid are party to that certain Sublicense Agreement effective as of November 15, 2019, pursuant to which Texas MDI sublicensed its rights under the TMDI License Agreement to Rapid (such agreement, as amended to date, the “Sublicense”);
  
 WHEREAS, in or around August 2020, Diamond Head, Texas MDI and EM3 entered into an Assignment and Assumption of Sales and Licensing Agreement and Novation Agreement, whereby Diamond Head assigned its rights under the Sales and Licensing Agreement to Texas MDI (the “Assignment Agreement”, and collectively with the Sales and Licensing Agreement, TMDI License Agreement and Sublicense, the “Agreements”);
  
 WHEREAS, as consideration for EM3 agreeing to the terms of the First Amendment, Rapid agreed to issue Adams an aggregate of 100,000 shares of restricted common stock of Rapid for the benefit of EM3 (the “Shares”);
  
 WHEREAS, a dispute has arisen between Rapid, Texas MDI and Diamond Head and EM3 and Adams regarding the terms of the Agreements and EM3’s compliance with the terms thereof (the “Dispute”); and
  
 WHEREAS, the Parties desire to terminate the Agreements, provide each other mutual releases in order to settle the Disputes, and Rapid desires for Adams to release the obligation to issue the Shares, and Rapid desires for EM3 to enter into a new license agreement with EM3, which license agreement EM3 desires to enter into, and the parties desire to enter into this 
 
 Rapid and EM3
 Settlement and Mutual Release Agreement
 Page 1 of 10
 
  
Agreement and agree to the other terms hereof, each pursuant to the terms of this Agreement set forth below.
  
 NOW THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the Parties to be derived herefrom, the receipt, adequacy, and sufficiency of which is hereby acknowledged and confessed, it is hereby agreed as set forth below. 
  
 CERTAIN CAPITALIZED TERMS USED BELOW ARE DEFINED IN SECTION 5 BELOW.
  
 1.  Termination of Agreements and Termination of Requirement to Issue Shares.
  
 1.1  The Parties confirm and acknowledge that the Agreements shall be deemed terminated and no force and effect effective on the Effective Date (the “Termination”). As a result of the Termination, no Party shall owe any other Party any further amounts under such Agreements, or owe any Party any further obligations thereunder.
  
 1.2  EM3 and Adams agree that the Shares have not been issued to date. As a result of the Termination, EM3 and Adams agree that the Shares shall not be issued, shall not be due, and the requirement and obligation for Rapid to issue the Shares shall be terminated. Adams and EM3 further agree that they will, whenever and as reasonably requested by Rapid or its transfer agent, do, execute, acknowledge and deliver any and all such other and further acts, deeds, assignments, transfers, conveyances, confirmations, powers of attorney and any instruments of further assurance, approvals, and consents as Rapid or its transfer agent may reasonably request or require in order to complete, insure and perfect the termination of the obligation to issue the Shares and/or the cancellation of the Shares (if and as applicable).
  
 1.3  Adams agrees and confirms that he has not sold, transferred, hypothecated, granted any party any interest or right in, assigned, or granted any person an option to purchase the Shares or any right therein as of the date of this Agreement.
  
 2.  New Exclusive License Agreement.
  
 2.1  As additional consideration for Rapid agreeing to enter into this Agreement and provide the Release to EM3 discussed in Section 3, below, and for other good and valuable consideration, the receipt, and sufficiency of which is acknowledged by EM3, EM3 agrees to enter into the Exclusive License Agreement with Rapid in the form of Exhibit A hereto (the “New Exclusive License”).
  
 3.  Assignment of Improvements.
  
 3.1  Each Party (other than Rapid), hereby assigns all right and ownership in any and all Improvements to Rapid, confirms and acknowledges that Rapid shall have the right to patent, copyright, and/or trademark any Improvements in its own name, and shall own all rights to any such granted patents, copyrights, and/or trademarks, and that each such Party shall, whenever and as reasonably requested by Rapid and at their sole cost and expense, do, execute, acknowledge and deliver any and all such other and further acts, deeds, assignments, transfers, conveyances, confirmations, powers of attorney and any instruments of further assurance, approvals, and consents as Rapid may reasonably require in order to complete, insure and perfect the obligations set forth in this Section 3.1.
 
 Rapid and EM3
 Settlement and Mutual Release Agreement
 Page 2 of 10
 
  
 
 4.  Transfer of Title to Passenger Coach.
  
 4.1  Holly agrees to transfer all rights to the Prevost H3-45, 2000 passenger coach with VIN#:2PCV33499X1013271, owned by Holly to Adams.
  
 5.  Release.
  
 5.1  Effective on the Effective Date, in consideration for the Parties agreeing to enter into and to be bound by the terms and conditions of this Agreement, the terms hereof, and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by the Parties, the (i) Licensing Parties; and (ii) the EM3 Parties (each for the purposes of this Section 2.1, a “Releasing Party” and collectively the “Releasing Parties”), on behalf of each of such Releasing Party’s and their Affiliates, officers, directors, employees, investors, shareholders, members, managers, administrators, predecessor and successor corporations, attorneys, affiliates, agents, and assigns, hereby release, acquit and forever discharge each other, and their current, past and future Affiliates, officers, directors, employees, investors, shareholders, members, managers, administrators, predecessor and successor corporations, attorneys, affiliates, agents, and assigns (each as applicable, the “Released Parties”) from all actions, causes of action, suits, debts, dues, sums of money, accounts, reckonings, covenants, controversies, agreements, promises, variances, trespasses, damages, judgments, claims and demands, whether asserted or unasserted, whether known or unknown, suspected or unsuspected, which they ever had or now have, upon or by reason of any manner, cause, causes or thing whatsoever, arising from the beginning of time to the date of this Agreement, in law or equity and all rights, obligations, claims, demands, whether in contract, tort, or state and/or federal law (each a “Claim”) arising from or relating to, or associated with (A) the Disputes; (B) the Agreements; (C) any amounts owed to any of the EM3 Parties by any of the Licensing Parties under the Agreements or otherwise; and (D) any other Claims whatsoever that any Releasing Party has against any other Releasing Party as of the date of this Agreement, except for Claims relating to the failure of any non-Releasing Party to comply with the terms of this Agreement, the New License Agreement, claims relating to the violation of federal or state securities laws and/or fraud, and except for the Confidentiality Requirements (the “Release”). 
  
 5.2  The Releasing Parties acknowledge that there is a risk that, after the execution of this Agreement, they may discover, incur or suffer claims that were unknown or unanticipated at the time of this Agreement, including, but not limited to, unknown or unanticipated claims that arise from, are based upon, or are related to, any facts underlying the releases set forth above in Section 2.1 (collectively the “Released Claims”), which had they been known or more fully understood, may have affected the Releasing Parties’ decisions to execute the Agreement as it currently is written. Each Releasing Party knowingly and expressly assumes the risk of these unknown and unanticipated claims and agrees that this Agreement and the general releases set forth within it apply to all such unknown, unanticipated, or potential claims. Furthermore, it is the intention of the Releasing Parties, by entering into this Agreement, to settle and release fully, finally, and forever all Released Claims and any and all claims that now exist, or may have at any time existed or shall come to exist in connection with the Released Claims. In furtherance of the Releasing Parties’ intention, the releases given within this Agreement shall be and remain in effect as full and complete releases and discharges of the Released Claims and of any related matters notwithstanding the discovery by any Releasing Party of the existence of any additional or different claims or the facts relative to any such claims. In furtherance of the Release, each Releasing Party waives any right such may have under any statutes and regulations, which state, in substance:
 
 Rapid and EM3
 Settlement and Mutual Release Agreement
 Page 3 of 10
 
  
 
 ‘‘A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him may have materially affected his settlement with the debtor.’’
  
 5.3  The Releasing Parties are not aware of any claims not being released herein against them.
  
 6.  Covenant Not to Sue.
  
 6.1  Subject to the excepted matters set forth herein (including, but not limited to the Confidentiality Requirements), the Releasing Parties agree that they will forever refrain and forbear from commencing, instituting or prosecuting any lawsuit, action or other proceeding, in law, equity, or otherwise, against the Released Parties, in any way arising out of or relating to the Released Claims.
  
 6.2  The Releasing Parties each acknowledge and agree that monetary damages alone are inadequate to compensate the other Party (or their assigns) for injury caused or threatened by a breach of this “Covenant Not to Sue” and that preliminary and permanent injunctive relief restraining and prohibiting the prosecution of any action or proceeding brought or instituted in violation of this Covenant Not to Sue is a necessary and appropriate remedy in the event of such a breach. Nothing contained in this Section, however, shall be interpreted or construed to prohibit or in any way to limit the right of a non-breaching Released Party or of any of its assigns to obtain, in addition to injunctive relief, an award of monetary damages against any person or entity breaching this Covenant Not to Sue and Agreement.
  
 6.3  Notwithstanding the foregoing, any action or proceeding brought for breach of or to interpret or enforce the terms of this Agreement is excepted from each of the Covenants Not to Sue set forth above.
  
 6.4  The Releasing Parties understand, acknowledge, and agree that the releases set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, claim, suit, or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such releases. Similarly, the Releasing Parties agree that no fact, event, circumstance, evidence, or transaction which could now be asserted or which may hereafter be discovered relating to the subject matter discussed above, shall affect in any manner the final, absolute, and unconditional nature of the release set forth above. 
  
 7.  Mutual Representations, Covenants and Warranties. 
  
 7.1  Each of the Parties, for themselves and for the benefit of each of the other Parties hereto, represents, covenants and warranties that:
  
 7.1.1  Such Party has all requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and thereby. This Agreement constitutes the legal, valid, and binding obligation of such Party enforceable against such Party in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting creditors’ rights generally and general equitable principles; 
 
 Rapid and EM3
 Settlement and Mutual Release Agreement
 Page 4 of 10
 
  
7.1.2  The execution and delivery by such Party and the consummation of the transactions contemplated hereby and thereby do not and shall not, by the lapse of time, the giving of notice or otherwise: (i) constitute a violation of any law; or (ii) constitute a breach of any provision contained in, or a default under, any of such Party’s Governing Documents (as applicable), or any governmental approval, any writ, injunction, order, judgment or decree of any governmental authority or any contract to which such Party is bound or affected; and
  
 7.1.3  Any individual executing this Agreement on behalf of an entity has authority to act on behalf of such entity and has been duly and properly authorized to sign this Agreement on behalf of such entity.
  
 8.  Definitions. In addition to other terms defined throughout this Agreement, the following terms have the following meanings when used herein:
  
 8.1  “Affiliate” means (x) any Person directly or indirectly controlling, controlled by or under common control with another Person, (y) any manager, director, officer, partner or employee of a Person, or (z) any spouse, spousal equivalent or other cohabitant occupying a relationship generally equivalent to that of a spouse, father, mother, brother, sister or descendant of a Person; a Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such other Person, whether through ownership of voting securities, by contract, or otherwise. 
  
 8.2  “Effective Date” means the date that EM3 has delivered Rapid an executed copy of the New Exclusive License and each of the Parties has delivered a signed copy of this Agreement to each other Party.
  
 8.3  “Governing Documents” of an entity shall mean the (i) articles or certificate of incorporation or association, certificate of formation, articles of organization or certificate of limited partnership or similar instrument under which an entity is formed; and (ii) the other documents or agreements, including bylaws, partnership agreements of partnerships, operating agreements of limited liability companies, or similar documents, adopted by the entity to govern the formation and internal affairs of the entity.
  
 8.4  “Improvement” means any and all technical information, patentable or non-patentable, controlled by any Party which cover any improvement, invention or discovery concerning the Desirick Procedure or any derivation thereof and its application and use, including, but not limited to, related consumables (cans, valves, and actuators), filling equipment for pressurized metered-dose inhalers, and/or proprietary lab equipment and training, support or maintenance thereon of any combination thereof,  including, without limitation, new or improved methods of manufacture, formulas, uses, and indications, methods of delivery and dosage forms thereof, and mechanical or chemical changes or manipulations, as well as the addition of other active ingredients, each made by or on behalf of any of the Licensing Parties or their representatives or affiliates. “Improvements” shall include all Improvements made after the Effective Date, and all Improvements made prior to the Effective Date, whatsoever, by the Licensing Parties, their predecessors, Affiliates, or representatives.
  
 8.5  “Person” means any natural person, corporation, general partnership, limited partnership, limited liability company, limited liability partnership, proprietorship, business or statutory trust, trust, union, association, instrumentality, governmental authority or other entity, enterprise, authority, or unincorporated entity. 
 
 Rapid and EM3
 Settlement and Mutual Release Agreement
 Page 5 of 10
 
  
 
 9.  No Prior Assignments. The Parties hereto represent that each has not assigned, in whole or in part, any claim, demand, and/or causes of action against any other Party, or their Affiliates, agents, officers, directors, servants, representatives, successors, employees, attorneys, or assigns to any person or entity prior to such Party’s execution of this Agreement. 
  
 10.  No Presumption from Drafting. This Agreement has been negotiated at arms-length between persons knowledgeable in the matters set forth within this Agreement. Accordingly, given that all Parties have had the opportunity to draft, review and/or edit the language of this Agreement, no presumption for or against any Party arising out of drafting all or any part of this Agreement will be applied in any action relating to, connected with or involving this Agreement. In particular, any rule of law, legal decisions, or common law principles of similar effect that would require interpretation of any ambiguities in this Agreement against the Party that has drafted it, is of no application and is hereby expressly waived. 
  
 11.  No Admission of Liability. Each Party acknowledges and agrees that this Agreement is a compromise and neither this Agreement, nor any consideration provided pursuant to this Agreement, shall be taken or construed to be an admission or concession by any Party of any kind with respect to any fact, liability, or fault except as may be expressly set forth herein. 
  
 12.  Fees and Expenses. Each of the Parties shall pay the fees and expenses of its advisers, counsel, accountants, and other experts, if any, and all other expenses incurred by such Party incident to the negotiation, preparation, execution, delivery, and performance of this Agreement. 
  
 13.  Choice of Law. This Agreement shall be governed by and construed according to the laws of the State of Texas, without giving effect to its choice of law principles. Any actions and proceedings arising out of or relating directly or indirectly to this Agreement or any ancillary agreement or any other related obligations shall be litigated solely and exclusively in the state or federal courts located in Dallas County, Texas, and those such courts are convenient forums. Each Party hereby submits to the personal jurisdiction of such courts for purposes of any such actions or proceedings.
  
 14.  Further Assurances. The Parties agree that, from time to time, each of them will take such other action and to execute, acknowledge and deliver such contracts, deeds, or other documents as may be reasonably requested and necessary or appropriate to carry out the purposes and intent of this Agreement and the transactions contemplated herein.
  
 15.  Binding Effect. This Agreement shall not be binding on any Party unless and until it is executed by all Parties, and upon such execution shall be binding on and inure to the benefit of each of the Parties and their respective heirs, successors, assigns, directors, officers, agents, employees, and personal representatives.
  
 16.  Modification. This Agreement may be modified only by a writing signed by the Parties.
  
 17.  Entire Agreement. This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written, of the Parties in connection with the subject matter hereof. 
 
 Rapid and EM3
 Settlement and Mutual Release Agreement
 Page 6 of 10
 
  
18.  Severability. Every provision of this Agreement is intended to be severable. If, in any jurisdiction, any term or provision hereof is determined to be invalid or unenforceable, (a) the remaining terms and provisions hereof shall be unimpaired, (b) any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such term or provision in any other jurisdiction, and (c) the invalid or unenforceable term or provision shall, for purposes of such jurisdiction, be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. 
  
 19.  Construction. When used in this Agreement, unless a contrary intention appears: (i) a term has the meaning assigned to it; (ii) “or” is not exclusive; (iii) “including” means including without limitation; (iv) words in the singular include the plural and words in the plural include the singular, and words importing the masculine gender include the feminine and neuter genders; (v) any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; (vi) the words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision hereof; (vii) references contained herein to Article, Section, Schedule, Appendix and Exhibit, as applicable, are references to Articles, Sections, Schedules, Appendixes and Exhibits in this Agreement unless otherwise specified and any such Schedules, Appendixes and Exhibits referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein; (viii) references to “writing” include printing, typing, lithography and other means of reproducing words in a visible form, including, but not limited to email; (ix) references to “dollars”, “Dollars” or “$” in this Agreement shall mean United States dollars; (x) reference to a particular statute, regulation or law means such statute, regulation or law as amended or otherwise modified from time to time; (xi) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein); (xii) unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding”; (xiii) references to “days” shall mean calendar days; and (xiv) the paragraph headings contained in this Agreement are for convenience only, and shall in no manner be construed as part of this Agreement.
  
 20.  Review of Agreement; Voluntarily Entering Into Agreement. Each Party herein expressly represents and warrants to all other Parties hereto that (a) before executing this Agreement, said Party has fully informed itself of the terms, contents, conditions, and effects of this Agreement; (b) said Party has relied solely and completely upon its own judgment in executing this Agreement; (c) said Party has had the opportunity to seek and has obtained the advice of its own legal, tax and business advisors before executing this Agreement; (d) said Party has acted voluntarily and of its own free will in executing this Agreement; and (e) this Agreement is the result of arm’s length negotiations conducted by and among the Parties and their respective counsel. 
  
 21.  Confidentiality. The EM3 Parties acknowledge that the Licensing Parties have disclosed, and the Licensing Parties acknowledge that the EM3 Parties have disclosed, confidential and proprietary information to such parties (such disclosing party, the “Disclosing 
 
 Rapid and EM3
 Settlement and Mutual Release Agreement
 Page 7 of 10
 
  
Party” and such receiving party, the “Receiving Party”) relating to such Disclosing Party’s business and intellectual property, including, but not limited to ideas, prospects, business transactions, concepts, strategies, corporate and financing structures, data, spreadsheets, summaries, reports, drawings, charts, specifications, forms, materials, or agreements (collectively, “Confidential Information”). Each Receiving Party agrees not to divulge any such Confidential Information to any third party, except as may be required or requested to be disclosed by order of a court, administrative agency or governmental body or self-regulatory organization, or by any rule, law or regulation, or by subpoena or any other legal or administrative process, or as requested by any regulator or self-regulatory organization, provided in such case the Receiving Party provides the Disclosing Party notice of such disclosure, and/or except as otherwise allowed by the New License Agreement. Notwithstanding the foregoing, the Parties agree that Confidential Information shall not include information which (a) was known by a Receiving Party prior to its disclosure by the Disclosing Party and is not subject to other confidentiality obligation, (b) is or becomes publicly known through no breach of this Agreement, (c) is received from a third party without a breach of any confidentiality obligation known to the Receiving Party, (d) is independently developed by the Receiving Party or (e) is disclosed with the Disclosing Party’s prior written consent. The obligations set forth in this Section 18 shall be defined herein as the “Confidentiality Requirements”, and such Confidentiality Requirements shall survive the consummation of the transactions contemplated by this Agreement and continue to bind the Parties in perpetuity. 
  
 22.  Execution. This Agreement and any signed agreement or instrument entered into in connection with this Agreement, and any amendments hereto or thereto, may be executed in one or more counterparts, all of which shall constitute one and the same instrument. Any such counterpart, to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif, .jpeg or similar attachment to electronic mail (any such delivery, an “Electronic Delivery”) shall be treated in all manner and respects as an original executed counterpart and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any Party, each other Party shall re-execute the original form of this Agreement and deliver such form to all other Parties. No Party shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such Party forever waives any such defense, except to the extent such defense relates to lack of authenticity.
  
  
 [Remainder of page left intentionally blank. Signature page(s) follows.]
  
  
  
  
  
  
  
  
  
  
 
 Rapid and EM3
 Settlement and Mutual Release Agreement
 Page 8 of 10
 
  
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have executed this Agreement on the date set forth above, to be effective as of the Effective Date, except as otherwise provided above. 
  
 “The Licensing Parties”
  
 (“Rapid”)
  
 Rapid Therapeutic Science Laboratories, Inc.
  
  
 By: /s/ Donal R. Schmidt
  
 Its: Chief Executive Officer
  
 Printed Name: Donal R. Schmidt
  
 (“Texas MDI”)
  
 Texas MDI, Inc.
 (Formerly Texas MDI, LLC),
  
 By: /s/ Donal R. Schmidt
  
 Its: President
  
 Printed Name: Donal R. Schmidt
  
 (“Diamond Head”)
  
 Diamond Head Ventures, LLC
  
 By: /s/ Donal R. Schmidt
  
 Its: Managing Member
  
 Printed Name: Donal R. Schmidt
  
  
  
  
 [Remainder of page left intentionally blank. Signature page of EM3 Parties follows.]
  
  
  
 
 Rapid and EM3
 Settlement and Mutual Release Agreement
 Page 9 of 10
 
  
 
 “EM3 Parties”
  
 (“EM3”)
  
 EM3 Methodologies, LLC
  
 By: /s/ Richard W. Adams
  
 Its: Member
  
 Printed Name: Richard W. Adams 
  
 (“Adams”)
  
 /s/ Richard W. Adams
 Richard Adams
  
  
 (“Holly”)
  
 Holly Brothers Pictures, LLC
  
  
 /s/ Richard W. Adams
 Richard Adams
 Member
  
  
 /s/ Donal R. Schmidt
 Donal R. Schmidt
 Member
  
  
  
  
  
  
  
  
  
  
  
  
 
 Rapid and EM3
 Settlement and Mutual Release Agreement
 Page 10 of 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00320-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00320-of-00352.parquet"}]]