Document:

bicx_ex103.htm

EXHIBIT 10.3
 
SECURITY AGREEMENT
 
THIS SECURITY AGREEMENT (this "Agreement") is made as of June 10, 2016 (the "Funding Date") by and among BIOCORRX INC., a Nevada corporation (the "Company" or "Debtor"); and BICX HOLDING COMPANY LLC (the "Secured Party") TO THAT CERTAIN NOTE PURCHASE AGREEMENT DATED AS OF JUNE 10, 2016 BETWEEN THE COMPANYAND THE SECURED PARTY (the "Purchase Agreement"). 
 
RECITALS
 
A. The Secured Party and Debtor have entered into the Purchase Agreement.
 
B. The Company is entering into this Agreement in order to further induce the Secured Party to enter into the Purchase Agreement.
 
C. On the Funding Date, the Secured Party has purchased Senior Secured Convertible Promissory Note (the "Note") in an amount equal to $2,500,000 from the Company (the "Loan").
 
D. As collateral to secure payment and performance of the obligations set forth in the Purchase Agreement and the Note, the Company and Secured Party have entered into this Agreement and Debtor has granted to the Secured Party a lien and security interest in and to all of the Collateral owned by it (as defined below).
 
E. Unless otherwise expressly defined in this Agreement, all capitalized terms when used herein, shall have the same meanings defined in the Purchase Agreement.
 
F. The Recitals shall be deemed to be an integral part of this Agreement as though more fully set forth at length in the body of this Agreement.
 
AGREEMENT
 
NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 
1. Grant of Security Interest. To secure the full and timely performance of all of Debtor's obligations and liabilities to the Secured Party pursuant to the Purchase Agreement and the Note, the Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Secured Party a continuing lien and security interest (the "Security Interest") in and to all of the property owned by the Debtor, including all property described on Exhibit "A" to this Agreement, which is incorporated into this Agreement, and all products and proceeds thereof (the "Collateral").
 
	 
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2. Priority of Security Interest. The Secured Party and Debtor each acknowledge and agree that: 
 
(a) the Security Interest granted by the Debtor in the Collateral owned by the Debtor pursuant to this Agreement represents a priority lien and Security Interest in such Collateral; and, 
 
(b) upon the occurrence and continuation of an Event of Default under the Note, the Note or any of the Transaction Documents or hereunder, the Secured Party may exercise any of its rights and remedies with respect to the Collateral owned by the Company or the Security Interest granted by the Company hereunder, all as provided in this Agreement. 
 
3. Representations and Covenants. 
 
(a) Other Liens. The Company owns all rights, title and interest in the Collateral (or has appropriate rights to use in the case of property subject to leases, licenses or similar arrangements in which the Company is the licensee or lessee) and, except for the liens to be paid off at the Closing with the approval of the Secured Party, such approval not to be unreasonably withheld ("Prior Liens") in favor of the Secured Party or other Permitted Liens as defined in the Purchase Agreement, the Company will not permit its Collateral to be subject to any adverse lien, security interest or encumbrance (other than Permitted Liens), and the Company will defend its Collateral against the claims and demands of all persons at any time claiming the same or any interest therein. Except as disclosed to the Secured Party and with respect to the Prior Liens, no financing statements covering any Collateral or any proceeds thereof are on file in any public office. 
 
This Agreement creates in favor of the Secured Party a valid security interest in the Collateral, subject only to and the Prior Liens and Permitted Liens (as defined in the Purchase Agreement) securing the payment and performance of the obligations. Upon making the filings described in the immediately following paragraph, all security interests created hereunder in any Collateral, which may be perfected by filing Uniform Commercial Code ("UCC") financing statements and other filings, if any, as may be required under the laws of the United States (together with the UCC, the "Required Filings") in order to perfect a Security Interest, shall have been duly perfected. Contemporaneously or prior to the execution of this Agreement, the Debtor shall deliver or cause to be delivered to the Secured Party any and all mortgages, certificates and other instruments or documents representing any of the other Collateral, in each case. 
 
The Debtor is the record owner of the real property where such Collateral is located and the personal property located thereon, and there exist no mortgages or other liens on any such real property except for Permitted Liens (as defined in the Note). None of such Collateral is in the possession of any consignee, bailee, warehouseman, or processor.
 
(b) Without limiting the generality of the foregoing, except for the Required Filings, no consent of any third parties and no authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for: (i) the execution, delivery and performance of this Agreement; (ii) the creation or perfection of the Security Interests in the United States created hereunder in the Collateral; or (iii) the enforcement of the rights of the Secured Party hereunder.
 
	 
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(c) Filing Authorization. The Company and hereby authorizes the Secured Party, as the agent and attorney-in-fact for the Company to file one or more mortgages and such financing statements under the UCC and all other Required Filings, as well as any filings required to be made in any other jurisdiction, with respect to the Security Interests, with the proper filing and recording agencies in any jurisdiction deemed proper by it. 
 
(d) Further Documentation. At any time and from time to time, at the sole expense of the Company, the Company will promptly and duly execute and deliver such further instruments and documents and take such further action as the Secured Party may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted. The undersigned Company hereby authorizes Secured Party to file with the appropriate filing office, now or hereafter from time to time, financing statements, continuation statements and amendments thereto, naming the undersigned as Company covering all of the Collateral of the Company, including but not limited to any specific listing, identification or type of all or any portion of the assets of the undersigned. The Secured Party shall provide the Company, as appropriate, with a copy of any such filing. The undersigned acknowledges and agrees, by evidence of its signature below, that this authorization is sufficient to satisfy the requirements of Revised Article 9 of the Uniform Commercial Code and the laws of all other jurisdictions in which Required Filings are to be made. 
 
(e) Indemnification. The Company agrees to defend, indemnify and hold harmless Secured Party against any and all liabilities, costs and expenses (including, without limitation, all reasonable legal fees and expenses): (i) with respect to, or resulting from, any delay in paying any and all excise, sales or other taxes which may be payable or are determined to be payable with respect to any of the Collateral; (ii) with respect to, or resulting from, any breach of any law, rule, regulation or order of any governmental authority applicable to any of the Collateral; or (iii) in connection with a breach of any of the transactions contemplated by this Agreement; provided, however, that this indemnification shall not extend to any damages caused by the gross negligence or willful misconduct of the Secured Party. 
 
(f) Change of Jurisdiction of Organization; Relocation of Business or Collateral. The Secured Party understands that the Company will be moving its principal place of business to Anaheim, CA. Other than disclosed herein the Company shall not change its jurisdiction of organization, relocate its chief executive office, principal place of business or its records or allow the relocation of any Collateral (unless such relocation is in the ordinary course of business) without thirty (30) days prior written notice to the Secured Party. 
 
(g) Limitations on Modifications of Accounts, Etc. Upon the occurrence and during the continuation of any Event of Default (as defined in the Note), the Company shall not, without the Secured Party's prior written consent, grant any extension of the time of payment of any of the accounts, chattel paper, instruments or amounts due under any contract or document, compromise, compound or settle the same for less than the full amount thereof, release, wholly or partly, any person liable for the payment thereof, or allow any credit or discount whatsoever thereon other than trade discounts and rebates or payment extensions granted in the ordinary course of Company's business.
 
(h) Insurance. The Company shall maintain insurance policies insuring the Collateral against loss or damage from such risks and in such amounts and forms and with such companies as are customarily maintained by businesses of similar type and size to the Company.
 
	 
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(i) Authority. The Company has all requisite corporate or other powers and authority to execute this Agreement and to perform all of its obligations hereunder, and this Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable in accordance with its terms. The execution, delivery and performance by the Company of this Agreement have been duly authorized by all necessary corporate action and do not (i) require any authorization, consent or approval by any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign; (ii) violate any provision of any law, rule or regulation or of any order, writ, injunction or decree presently in effect, having applicability to the Company or the articles of incorporation or by-laws of the Company; or (iii) result in a breach of or constitute a default under any material indenture, Loan or credit agreement or any other agreement, lease or instrument to which the Company is a party or by which it or its properties may be bound or affected. 
 
(j) Defense of Intellectual Property. The Company shall (i) use commercially reasonable efforts to protect, defend and maintain the validity and enforceability of its material copyrights, patents, trademarks and trade secrets; (ii) use commercially reasonable efforts to detect infringements of its copyrights, patents, trademarks and trade secrets and promptly advise Secured Party in writing of material infringements detected; and (iii) not allow any copyrights, patents, trademarks or trade secrets material to the Company's businesses to be abandoned, forfeited or dedicated to the public domain without the written consent of Secured Party. 
 
(k) Maintenance of Records. The Company will keep and maintain at its own cost and expense satisfactory and complete records of the Collateral and may not relocate such books of account and records or tangible Collateral unless it delivers to the Secured Party at least thirty (30) days prior to such relocation (i) written notice of such relocation and the new location thereof; and (ii) evidence that appropriate financing statements under the UCC and other Required Filings have been filed and recorded and other steps have been taken to create in favor of the Secured Party, a valid, perfected and continuing perfected first priority lien in the Collateral. 
 
(l) Inspection Rights. Secured Party will have full access during normal business hours, and upon reasonable prior notice, to all of the books, correspondence and other records of the Company relating to the Collateral, and Secured Party or their representatives may examine such records and make photocopies or otherwise take extracts from such records, subject to the Company's reasonable confidentiality requirements. The Company agrees to render to Secured Party, at the expense of the Company, such clerical and other assistance as may be reasonably requested with regard to the exercise of its rights pursuant to this paragraph. 
 
(m) Compliance with Laws, Etc. The Company shall comply in all material respects with all laws, rules, regulations and orders of any governmental authority applicable to any part of the Collateral or to the operation of the Company's; provided, however, that the Company may contest any such law, rule, regulation or order in any reasonable manner which does not, in the reasonable opinion of the Company, adversely affect Secured Party's rights or the priority of its liens on the Collateral. 
 
	 
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(n) Payment of Obligations. The Company shall pay before delinquency all obligations associated with the Collateral, including license fees, taxes, assessments and governmental charges or levies imposed upon the Collateral or with respect to any of its income or profits derived from the Collateral; as well as all claims of any kind (including, without limitation, claims for labor, materials and supplies) against or with respect to the Collateral, except that no such charge need be paid if (i) the validity or amount of such charge is being contested in good faith by appropriate proceedings; (ii) such proceedings do not involve any material danger of the sale, forfeiture or loss of any of the Collateral or any interest in the Collateral; and (iii) such charge is adequately reserved against on the books of the Company in accordance with generally accepted accounting principles. The obligation of the Company to repay the Loan evidenced by the Note, together with all interest accrued thereon, is absolute and unconditional, and there exists no right of set off or recoupment, counterclaim or defense of any nature whatsoever to payment of the Loan. 
 
(o) Limitations on Liens on Collateral. Except for the Prior Liens and Permitted Liens, the Company shall not create, incur or permit to exist, any liens on the Collateral outside the scope of this Agreement other than purchase money liens, liens incurred in the ordinary course of business, liens for taxes not yet delinquent or which are being contested in good faith, any lien on any real or personal property at the time it is acquired, any lien renewing any of the foregoing or any lien created from a refinancing, and shall defend the Collateral against, and shall take such other action as is necessary to remove, any lien or claim on or to the Collateral, and shall defend the rights, title and interest of Secured Party in and to any of the Collateral against the claims and demands of all other persons. 
 
(p) Limitations on Dispositions of Collateral. The Company shall not sell, transfer, lease or otherwise dispose of a material portion of the Collateral, or offer or contract to do so without the written consent of Secured Party; provided, however, that the Company will be allowed to: (i) sell its inventories in the ordinary course of business; (ii) re-invest the proceeds of any sale of inventory relating to the Collateral; (iii) sell and grant non-exclusive licenses to its products, intellectual property and related documentation in the ordinary course of business; and (iv) dispose of obsolete or worn out inventory. 
 
(q) Good Standing. Commencing on a date which shall be not more than thirty (30) days from the date of this Agreement, the Company shall be and at all times preserve and keep in full force and effect its valid existence and good standing and any rights and franchises material to its business. 
 
(r) Inventory. Except in the ordinary course of business and pursuant to the Prior Liens, the Company may not consign any of its inventory or sell any of its inventory on bill and hold, sale or return, sale on approval, or other conditional terms of sale without the consent of the Secured Party which shall not be unreasonably withheld or delayed. 
 
(s) Offices. Except as disclosed in Section 3(f), the Company may not relocate its chief executive office to a new location without providing thirty (30) days prior written notification thereof to the Secured Party and so long as, at the time of such written notification, the Company provides any financing statements or fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement. 
 
(t) Certificates. At any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require or permit possession by the secured party to perfect the security interest created hereby, the Company shall deliver such Collateral to the Agent. 
 
(u) Tangible Chattel. The Company shall cause all tangible chattel paper constituting Collateral to be delivered to the Secured Party, or, if such delivery is not possible, then to cause such tangible chattel paper to contain a legend noting that it is subject to the security interest created by this Agreement. To the extent that any Collateral consists of electronic chattel paper, the Company shall cause the underlying chattel paper to be "marked" within the meaning of Section 9-105 of the UCC (or successor section thereto). 
 
	 
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(v) Letter-of-Credit. To the extent that any Collateral consists of letter-of-credit rights other than the Prior Liens or Permitted Liens, the Company shall cause the issuer of each underlying letter of credit to consent to an assignment of the proceeds thereof to the Secured Party. 
 
(w) Third Party. To the extent that any Collateral is in the possession of any third party, the Company shall join with the Secured Party in notifying such third party of the Secured Party' security interest in such Collateral and shall use its best efforts to obtain an acknowledgement and agreement from such third party with respect to the Collateral, in form and substance reasonably satisfactory to the Secured Party. 
 
(x) Tort Claims. If the Company shall at any time hold or acquire a commercial tort claim, the Company shall promptly notify the Secured Party in a writing signed by the Company of the particulars thereof and grant to the Secured Party in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to the Agent. 
 
(y) Further Identification of Collateral. The Company has full rights, title and interest in and to all the Company's Collateral, including the items listed on Exhibit "A". The Company shall furnish to Secured Party from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as Secured Party may reasonably request, all in reasonable detail. 
 
4. Secured Party's Appointment as Attorney-in-Fact. 
 
(a) Powers. The Company and Secured Party hereby appoint the officers or agents of Secured Party (each an "Agent") to act on behalf of Secured Party, with full power of substitution, as its attorney-in-fact with full irrevocable power and authority in the place of the Company and in the name of the Company or in its own name, so long as an Event of Default has occurred and is continuing, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any instrument which may be necessary or desirable to accomplish the purposes of this Agreement. Without limiting the foregoing, so long as an Event of Default has occurred and is continuing, Secured Party, in its discretion, will have the right, without notice to, or the consent of the Company, to do any of the following on behalf of the Company: 
 
(i) to pay or discharge any obligations in connection with the Collateral, including license fees and taxes or liens levied or placed on or threatened against the Collateral; 
 
(ii) to direct any party liable for any payment under any of the Collateral to make payment of any and all amounts due or to become due thereunder directly to Secured Party or as Secured Party directs; 
 
(iii) to ask for or demand, collect and receive payment of and receipt for any payments due or to become due at any time in respect of or arising out of any Collateral; 
 
	 
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(iv) to commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to enforce any right in respect of any Collateral; 
 
(v) to defend any suit, action or proceeding brought against the Company with respect to any Collateral; 
 
(vi) to settle, compromise or adjust any suit, action or proceeding described in subsection (v) above and, to give such discharges or releases in connection therewith as Secured Party may deem appropriate; 
 
(vii) to assign any license or patent right included in the Collateral of the Company (along with the goodwill of the business to which any such license or patent right pertains), throughout the world for such term or terms, on such conditions and in such manner as Secured Party in their sole discretion determine; 
 
(viii) to sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral and to take, at Secured Party's option and the Company's expense, any actions which Secured Party deem necessary to protect, preserve or realize upon the Collateral and Secured Party's liens on the Collateral and to carry out the intent of this Agreement, in each case to the same extent as if Secured Party were the absolute owners of the Collateral for all purposes; 
 
(ix) to exercise the voting and other consensual rights which it would otherwise be entitled to exercise and all rights of the Company to receive the dividends and interests which it would otherwise be authorized to receive and retain, shall cease. Upon such notice, Agent shall have the right to receive, for the benefit of the Secured Party, any interest, cash dividends or other payments on the Collateral and, at the option of Agent, to exercise in such Agent's discretion all voting rights pertaining thereto. Without limiting the generality of the foregoing, Agent shall have the right (but not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute owner thereof, including, without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral in connection with a merger, reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral of the Company or any of its direct or indirect subsidiaries; 
 
(x) to operate the business of Debtor using the Collateral, and shall have the right to assign, sell, lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either with or without special conditions or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times and at such place or places, and upon such terms and conditions as the Agent may deem commercially reasonable, all without (except as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to any Debtor or right of redemption of the Company, which are hereby expressly waived. Upon each such sale, lease, assignment or other transfer of Collateral, the Secured Party, may, unless prohibited by applicable law which cannot be waived, purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption and equities of the Company, which are hereby waived and released; 
 
	 
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(xi) to sign and endorse any drafts, assignments, proxies, stock powers, verifications, notices and other documents relating to the Collateral; and 
 
(xii) to notify the Company any obligors under instruments or accounts to make payments directly to the Agent, on behalf of the Secured Party, and to enforce the Company's rights against such account pledgor and obligors. 
 
The Company hereby ratifies whatever actions Secured Party lawfully does or causes to be done in accordance with this Section 4. This power of attorney will be a power coupled with an interest and will be irrevocable.
 
(b) No Duty on Secured Party's Part. The powers conferred on Secured Party by this Section 4 are solely to protect Secured Party's interest in the Collateral and do not impose any duty upon it to exercise any such powers. Secured Party will be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither Secured Party nor any of their officers, directors, employees or agents will, in the absence of willful misconduct or gross negligence, be responsible to the Company for any act or failure to act pursuant to this Section 4.
 
(c) Application of Proceeds. The proceeds of any sale, lease or other disposition of the Collateral hereunder or from payments made on account of any insurance policy insuring any portion of the Collateral shall be applied to the satisfaction of the obligations pro rata among the Secured Party (based on then-outstanding principal amounts of the Note at the time of any such determination), and to the payment of any other amounts required by applicable law, after which the Secured Party shall pay to the Company any surplus proceeds. 
 
(d) Liability for Deficiency. Upon the sale, license or other disposition of the Collateral, the proceeds thereof are insufficient to pay all amounts to which the Secured Party are legally entitled, Debtor will be liable for the deficiency, together with interest thereon, at the Default Rate set forth in the Note or the lesser amount permitted by applicable law (the "Default Rate"), and the reasonable fees of any attorneys employed by the Secured Party to collect such deficiency. To the extent permitted by applicable law, Debtor waives all claims, damages and demands against the Secured Party arising out of the repossession, removal, retention or sale of the Collateral, unless due solely to the gross negligence or willful misconduct of the Secured Party as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction. 5. Duty to Hold In Trust. Upon the occurrence of any Event of Default and at any time thereafter, the Company shall, upon receipt of any revenue, income, dividend, interest or other sums subject to the Security Interests, whether payable pursuant to the Note or otherwise, or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in trust for the Secured Party and shall forthwith endorse and transfer any such sums or instruments, or both, in accordance with the provisions of Section 4(c) above and if any amounts are remaining to the Secured Party, pro rata in proportion to their respective then-currently outstanding principal amount of Note for application to the satisfaction of the obligations. 
 
6. Expenses Incurred by Secured Party. If the Company fails to perform or comply with any of its agreements or covenants contained in this Agreement, and Secured Party performs or complies, or otherwise causes performance or compliance, with such agreement or covenant in accordance with the terms of this Agreement, then the reasonable expenses of Secured Party incurred in connection with such performance or compliance will be payable by the Company to the Secured Party on demand and will constitute obligations secured by this Agreement. 
 
	 
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7. Remedies. Subject to the UCC, if an Event of Default has occurred and is continuing, Secured Party may exercise, in addition to all other rights and remedies granted to it in this Agreement and in any other instrument or agreement relating to the obligations, all rights and remedies of a Secured Party under the Nevada Uniform Commercial Code, as amended from time to time (the "Code"). Without limiting the foregoing, in such circumstances, with notice of at least ten (10) days to or upon the Company or any other person, Secured Party may collect, receive, appropriate and realize upon any or all of the Collateral and/or may sell, lease, assign, give an option or options to purchase or otherwise dispose of and deliver any or all of the Collateral (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker's board or office of Secured Party or elsewhere upon such terms and conditions as Secured Party may deem advisable, for cash or on credit or for future delivery without assumption of any credit risk. Secured Party will have the right upon any such public sale or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase all or any part of the Collateral so sold, free of any right or equity of redemption in the Company, which right or equity is hereby waived or released. Subject to the provisions of Section 4(c), Secured Party will apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all reasonable expenses incurred therein or in connection with the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of Secured Party under this Agreement (including, without limitation, reasonable attorneys' fees and expenses) to the payment in whole or in part of the obligations, in such order as Secured Party may elect, and only after such application and after the payment by Secured Party of any other amount required by any provision of law, need Secured Party account for the surplus, if any, to the Company, as applicable. To the extent permitted by applicable law, the Company waives all claims, damage and demands it may acquire against Secured Party arising out of the exercise by Secured Party of any of its rights hereunder. If any notice of a proposed sale or other disposition of Collateral is required by law, such notice will be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition. The Company will remain liable for any deficiency of the Company if the proceeds of any sale or other disposition of the Collateral are insufficient to pay the obligations and the reasonable fees and disbursements of any attorneys employed by Secured Party to collect such deficiency. 
 
8. Limitation on Duties Regarding Preservation of Collateral. The sole duty of Secured Party with respect to the custody, safekeeping and preservation of the Collateral, under the appropriate Code section or otherwise, will be to deal with it in the same manner as Secured Party deals with similar property for its own account. Neither Secured Party nor any of its employees, affiliates or agents will be liable for failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or will be under any obligation to sell or otherwise dispose of any Collateral upon the request of the Company or otherwise. 9. Powers Coupled with an Interest. All authorizations and agencies contained in this Agreement with respect the Collateral are irrevocable and powers coupled with an interest. 
 
10. No Waiver; Cumulative Remedies. Secured Party will not by any act (except by a written instrument pursuant to Section 11(a) hereof) of delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Event of Default under the Note or in any breach of any of the terms and conditions of this Agreement. No failure to exercise, nor any delay in exercising, on the part of Secured Party, any right, power or privilege hereunder will operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder will preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by Secured Party of any right or remedy under this Agreement on any one occasion will not be construed as a bar to any right or remedy that Secured Party would otherwise have on any subsequent occasion. The rights and remedies provided in this Agreement are cumulative, may be exercised singly or concurrently and are not exclusive of any rights or remedies provided by law. 
   	 
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11. Miscellaneous.
 
(a) Amendments and Waivers. Any term of this Agreement may only be amended by prior written consent of the Company and the Holder of the Note. Any amendment or waiver effected in accordance with this Section 11(a) will be binding upon all of the parties hereto and their respective successors and assigns. 
 
(b) Transfer; Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the Company and Secured Party, and their respective successors or assigns. The Company may not assign any of its/his rights or delegate any of its/his duties under this Agreement. 
 
(c) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Nevada without regard to the laws that might be applicable under conflicts of laws principles. 
 
(d) Counterparts. This Agreement may be executed in any number of counterparts (including by facsimile), each of which will be an original, but all of which together will constitute one instrument. 
 
(e) Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
 
(f) Notices. All notices, requests and demands to or upon the Secured Party, the Company hereunder shall be effected in the manner provided for in the Purchase Agreement. 
 
(g) Term. This Agreement shall terminate on the date on which all payments under the Note have been indefeasibly satisfied in full and all other obligations have been satisfied in full or discharged (through cash payment or conversion); provided, however, that all indemnities of the Note contained in this Agreement shall survive and remain operative and in full force and effect regardless of the termination of this Agreement. 
 
(h) Severability. In the event that any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such provision(s) shall be ineffective only to the extent of such invalidity, illegality or unenforceability without invalidating the remainder of such provision or the remaining provisions of this Agreement and such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, which shall remain in full force and effect. 
 
(i) Entire Agreement. This Agreement and the other documents evidencing, securing, or relating to the Note constitute the entire understanding and agreement between the parties with regard to the subjects hereof and thereof and supersede all prior agreements, representations and undertakings of the parties, whether oral or written, with respect to such subject matter. 
 
[Signature pages follows]
 
	 
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IN WITNESS WHEREOF, Debtor and the Secured Party have caused this Agreement to be duly executed and delivered as of the date first above written.
 
 
	 	BICX HOLDING COMPANY LLC:	
				
		 
	
	 	  	 	 
		By:		
	 
	Name:
		 
	 	Title:		 

   
The Secured Party has executed a Purchase Agreement with the Company which provides, among other things, that by executing the Purchase Agreement, the Purchaser is deemed to have executed this Agreement in all respects and is bound to purchase the Note set forth in the Purchase Agreement.
 
 
	 	DEBTOR:
BIOCORRX INC. 	
		 		
		By:		
	 
	Name:
	Brady Granier	 
	 	Title:	Interim Chief Executive Officer	 

   
	 
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EXHIBIT "A"
 
DESCRIPTION OF COLLATERAL
 
"Collateral" means the collateral in which the Secured Party is granted a security interest by this Agreement and which shall include the following personal property of the Company, as applicable, whether presently owned or existing or hereafter acquired or coming into existence, wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds, products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of insurance covering the same and of any tort claims in connection therewith, described herein:
 
(i) The Company's rights and interest to Fresh Start Private, Inc., a wholly owned subsidiary of the Company;
 
(ii) all non-encumbered assets of the Company and assets related to the Company's operations; 
 
(iii) all contract rights (including license rights and option rights) and general intangibles (including payment intangibles); 
 
(iv) all intellectual property rights, accounts, contract rights, royalties, license rights and all other forms of obligations owing to the Company and arising out of the sale or lease of goods, the licensing of technology or other intellectual property rights or the rendering of services by the Company, whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by the Company; 
 
(v) all of the Company's books, records and data relating to any of the foregoing in any form whatsoever and any and all claims, rights and interests in any of the above and all substitutions therefore, additions and accessions thereto and proceeds thereof; 
 
(vi) all rights, remedies, powers and/or privileges of the Company with respect to any of the foregoing; and 
 
(vii) any and all proceeds and products of the foregoing, including, all money, accounts, general intangibles, deposit accounts, documents, instruments, letter-of-credit rights, investment property, chattel paper, goods, insurance proceeds and any other tangible or intangible property received upon the sale or disposition of any of the foregoing; provided that, to the extent that the provisions of any contract, license or agreement expressly prohibit (which prohibition is enforceable under applicable law) the assignment thereof and the grant of a security interest therein, the Company's rights in such contract, license or agreement shall be excluded from the foregoing assignment and grant for so long as such prohibition continues, it being understood that upon request of Secured Party, the Company shall in good faith use commercially reasonable efforts to obtain consent for the creation of a security interest in favor of Secured Party in the Company's rights under such contract, license or agreement. 
 
 
12bicx_ex104.htm

EXHIBIT 10.4
 
EXECUTIVE SERVICE AGREEMENT
 
THIS EXECUTIVE SERVICE AGREEMENT dated as of June 17, 2016 (the "Agreement") is by and between BioCorRx Inc., a Nevada corporation (the "Company"), and Brady Granier (the "Executive").
 
WHEREAS, the Company is an addiction rehabilitation service company and developer of the BioCorRx Recovery Program;
 
WHEREAS, since October 16, 2013, Executive has been retained by the Company [pursuant to that certain Executive Services Agreement entered into by and between the Executive and the Company1, dated October 16, 2013 (the "Prior Services Agreement")], and the Company desires to continue to retain the services of Executive and provide Executive with certain compensation and benefits in return for Executive's services, and Executive agrees to be retained by the Company and to receive the compensation and benefits on the terms and conditions set forth herein; and
 
WHEREAS, the Company and Executive desire to enter into this Agreement to become effective and replace and supersede the Prior Services Agreement, subject to Executive's signature below, upon the date of the agreement (the "Effective Date"), in order to memorialize the terms and conditions of Executive's service agreement by the Company upon and following the Effective Date.
 
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein:
 
I. SERVICES; RESPONSIBILITIES; COMPENSATION
 
A. Position; Responsibility; Loyalty.
 
1. Subject to the terms of this Agreement, Executive is retained in the position of President and Chief Executive Officer of the Company, and shall perform the functions and responsibilities of that position. Executive hereby agrees to be subject to the direction and supervision of, and to have such authority as is delegated to the Executive by, the Board of Directors of the Company (the "Board"), consistent with such position. Additional or different duties may be assigned by the Company from time to time. Executive's position, job descriptions, duties and responsibilities may be modified from time to time in the sole discretion of the Company. Executive acknowledges and agrees that, by virtue of such office, Executive may also be required to serve as member of the Board.
 
	 
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2. Executive shall devote the whole of Executive's professional time, attention and energies to the performance of Executive's work responsibilities and shall not, either directly or indirectly, alone or in partnership, consult with, advise, work for or have any interest in any other similar or competitive business or pursuit during the term of Executive's service agreement with the Company. During Executive's term with the Company, it shall not be a violation of this Agreement for Executive to (i) serve on corporate board or committees; (ii) serve on civic or charitable boards or committees; (ii) deliver lectures or fulfill speaking engagements; and (iii) manage personal investments, in each case, so long as such activities do not materially interfere with the performance of Executive's responsibilities as an Executive of the Company in accordance with this Agreement. Notwithstanding the foregoing, in the case of the foregoing (i), board or committee membership relating to Executive's role with the Company or the business of the Company shall be approved by the Board, which approval shall not be unreasonably withheld and, in the case of the foregoing (ii) and (iii) Executive shall provide notice of such activities to the Board, except for activities which do not relate to Executive's role with the Company or the business of the Company. Executive further agrees to comply with all policies of the Company in effect from time to time, and to comply with all laws, rules and regulations, including those applicable to the Company.
 
3. The parties desire this Agreement will not be an employment agreement but, rather, the executive will provide the general services hereunder as an independent contractor.
 
B. Compensation. As consideration for the services and covenants described in this Agreement, the Company agrees to compensate Executive in the following manner:
 
1. The Company shall pay Executive base salary at the annual rate of $175,000 payable bi-monthly (the "Base Salary"), as may be adjusted from time to time by action of the Board. The Company shall also provide Executive with an expense allowance in such amounts as may from time to time be agreed to by Executive and the Board, including an amount to cover Executive's monthly cell phone bill. In addition to the foregoing, the Company shall provide Executive with a car allowance in the amount of $500.00 per month, payable on the first regularly scheduled pay date of each month.
 
2. Prior to the Effective Date, the Company established a new stock option plan (the "2016 Stock Option Plan"), in which 65,625,000 shares of the Company's common stock has been reserved for stock option award grants to directors, officers, employees and consultants of the Company. (the "StockOption Pool"). Subject to Board approval, the Company will grant Executive a stock option to purchase an aggregate of 10,600,000 shares of Company common stock (the "2016 Stock Option") in accordance with the terms and conditions of the Company's 2016 Stock Option Plan and the applicable stock option plan agreement.
 
3. Prior to the Effective Date, Executive was granted a stock option to purchase 5,000,000 shares of Company common stock under the BioCorRx Inc. 2014 Stock Option Plan (the "2014 Stock Option Plan") pursuant to that certain Stock Option Plan Agreement, dated November 17, 2014 (the "2014 Stock Option"). The Company and the Executive will enter into an Amendment to the 2014 Stock Option pursuant to which, among other things, the term of the 2014 Stock Option is extended for an additional 5 years such that the 2014 Stock Option expires on the tenth anniversary of the date of original grant.
 
4. Executive shall also be eligible to participate in the Executive Management Bonus Plan adopted by the Board, effective June 15, 2016 (the "Bonus Plan"), pursuant to the terms and conditions of the Bonus Plan (which is attached hereto as Exhibit A).
 
	 
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5. Executive shall be reimbursed for health and medical insurance, dental and vision insurance.
 
6. The Executive shall be entitled to a yearly vacation as may be determined by the board.
 
7. The Company shall reimburse Executive for all business expenses that are reasonable and necessary and incurred by Executive while performing his duties under this Agreement, upon presentation of expense statements, receipts and/or vouchers or such other information and documentation as the Company may reasonably require. Executive will be subject to the same business expense policy applicable to other Company employees generally, if any.
 
8. As a condition of continued services, Executive agrees to execute and abide by the Company's form of Proprietary Information and Inventions Assignment Agreement, which contains provisions that are intended by the parties to survive and do survive termination of this Agreement.
 
II. TERMINATION
 
A. Termination of the agreement.
 
1. The parties acknowledge that Executive's relationship with the Company is at-will, meaning either the Company or Executive may terminate Executive's agreement at any time, with or without cause or advance notice. The provisions in the below subsection B govern the amount of compensation, if any, that Executive may be eligible for upon a qualifying termination of this agreement and do not alter this at-will status.
 
2. Executive's agreement with the Company shall be terminated (i) immediately upon the death of Executive, (ii) upon Executive's Permanent Disability, (iii) by the Company for Cause, (iv) by Executive for Good Reason, or (v) by the Company without Cause or by Executive without Good Reason. For purposes of this Article II, "date of termination" means the date of Executive's death, the date of Executive's Permanent Disability, or the date of Executive's "separation from service," as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the "Code") and the regulations promulgated thereunder (the "Code Section 409A").
 
3. For purposes hereof:
 
a) "Permanent Disability" shall mean either (A) Executive's inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (B) by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, Executive's receiving income replacement benefits for a period of not less than three months under an accident and health plan covering the Company's employees. Executive will be deemed permanently disabled if determined to be totally disabled by the Social Security Administration or if determined to be disabled in accordance with a disability insurance program that applies a definition of disability that complies with the requirements of this paragraph.
 
	 
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b) "Good Reason" shall mean the occurrence of one or more of the following conditions without Executive's consent: (A) a material breach by the Company of any material provision of this Agreement; (B) the relocation of Executive's principal place of business, without Executive's consent, in a manner that lengthens Executive's one-way commute distance by fifty (50) or more miles from Executive's then-current principal place of business immediately prior to such relocation (which, for avoidance of doubt, does not include required travel on Company business to an extent substantially consistent with Executive's obligations under this Agreement); (C) in the first year of service, a material reduction in Executive's Base Salary in effect at the relevant time of at least five percent (5%), and in subsequent years thereafter, a material reduction in Executive's Base Salary in effect at the relevant time of at least fifteen percent (15%); or (D) termination of the Company's active bonus plan, as described in Paragraph I.B.5. above or the exclusion of the Executive from eligibility for, or a material reduction in, Executive's award levels under such plan. Notwithstanding anything herein to the contrary, Good Reason will exist only if Executive provides notice to the Company of the existence of the condition otherwise constituting Good Reason within 30 days of the initial existence of the condition, the Company fails to reasonably remedy the condition on or before the 30th day following its receipt of such notice, and Executive resigns within 30 days following the end of such cure period.
 
c) "Cause" for termination shall mean that the Company has determined in its sole discretion that Executive has engaged in any of the following: (A) a material breach of any material covenant or condition under this Agreement or any other agreement between the parties relating to Executive's agreement with the Company; (B) any act constituting dishonesty, fraud, immoral or disreputable conduct; (C) the indictment of executive with a crime constituting a felony under applicable law; (D) material violation of any Company policy or any act of misconduct, which causes a material adverse impact on the business of the Company; (E) refusal to follow or implement a clear and reasonable directive of Company where such refusal has a material adverse impact on the business of the Company; (F) negligence or incompetence in the performance of Executive's duties or failure to perform such duties in a manner satisfactory to the Company where such negligence or incompetence has a material adverse impact on the business of the Company; or (G) breach of fiduciary duty, and in the case of foregoing (A), (D), (E) and (F), such occurrence shall constitute Cause only after the expiration of ten (10) days without cure after the Company provides written notice of such failure to Executive .
 
4. If Executive's agreement is terminated under any of the foregoing circumstances, all future compensation to which Executive is otherwise entitled and all future benefits for which Executive is eligible, other than that already earned but which is unpaid, shall cease and terminate as of the date of termination, except as specifically provided in this Paragraph II. Any other payments or benefits by or on behalf of Company are limited to those which may be payable pursuant to the terms of Company's Executive benefit plans or required by any applicable federal, state or local law.
 
	 
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B. Severance Eligibility.
 
1. Termination by Company Without Cause or by Executive For Good Reason.
 
a) If Executive's agreement is terminated by the Company without Cause (and not due to death or Permanent Disability) or by Executive for Good Reason Executive complies with his continuing obligations to the Company, and provided that Executive satisfies the Release Requirement in Paragraph II(B)(4) below, Executive shall be eligible to receive the following (collectively, the "Severance Benefits"):
 
(1) The Company will pay Executive, on the Company's first payment date after Executive's date of termination of agreement, (i) Executive's accrued but unpaid salary through the date of termination, (ii) any unreimbursed business expenses incurred by Executive payable in accordance with the Company's standard expense reimbursement policies, and (iii) benefits owed to Executive under any qualified retirement plan or health and welfare benefit plan in which Executive was a participant in accordance with applicable law and the provisions of such plan (collectively, the "Accrued Obligations").
 
(2) Severance pay in the form of continuation of Executive's final Base Salary for a period of nine (9) months following termination (the "Severance Payments"). Subject to Paragraph II(B)(5) below, the Severance Payments shall be made on the Company's regular payment schedule in effect following Executive's termination date; provided, however that any such payments that are otherwise scheduled to be made prior to the Release Effective Date (as defined below) shall instead accrue and be made on the first regular payroll date following the Release Effective Date. For such purposes, Executive's final Base Salary will be calculated prior to giving effect to any reduction in Base Salary that would give rise to Executive's right to resign for Good Reason.
 
(3) Notwithstanding the terms of any equity plan or award agreement to the contrary, the time-based vesting conditions applicable to Executive's stock options and/or other equity awards subject to time-based vesting requirements that are outstanding and not vested as of Executive's termination date shall accelerate and deemed to be satisfied as of the date of Executive's termination. For the avoidance of doubt, the accelerated vesting provided under this section shall not apply to any liquidity event or performance-based vesting conditions applicable to any of Executive's outstanding stock options or other equity awards as of the date of termination. In all other respects, such time-based stock options and/or other equity awards shall continue to be governed by the terms of the applicable equity plan and award agreements.   
 
(4) Executive will be eligible for a prorated bonus payment for the year in which the date of termination occurs, based on attainment of the applicable performance goals for that year, pursuant to the terms and conditions of the Bonus Plan (the "Prorated Bonus"). The Prorated Bonus, if earned, will be an amount in cash equal to the Executive's bonus target for the year in which the date of termination occurs, multiplied by a fraction, the numerator of which is the number of days that Executive was employed by the Company during the year of termination and the denominator of which is three hundred and sixty five (365). Payment of the Prorated Bonus will be made in a lump sum at the same time that other employees of the Company are paid their bonuses for the calendar year under the Bonus Plan or, if later, the Release Effective Date. 
 
	 
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 (5) If Executive timely elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act ("COBRA"), the Company will reimburse Executive for the monthly COBRA cost of continued health coverage paid by Executive under the applicable health plan of the Company pursuant to Section 4980B of the Code until the earliest of (i) nine (9) months following the termination date; (ii) the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment; or (iii) the date Executive ceases to be eligible for COBRA continuation coverage for any reason (the "COBRA Premium Period"). In the event Executive becomes covered under another group health plan or otherwise ceases to be eligible for COBRA during the COBRA Premium Period, Executive must immediately notify the Company of such event. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot reimburse the COBRA premiums without potentially incurring financial costs or penalties under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), regardless of whether Executive elects or is eligible for COBRA coverage, the Company instead shall pay to Executive, on the first day of each calendar month following the termination date, a fully taxable cash payment equal to the applicable COBRA premiums for that month. Executive may, but is not obligated to, use such Special Cash Payments toward the cost of COBRA premiums.
 
2. Termination Due to Death or Permanent Disability. If Executive's agreement is terminated because of death or Permanent Disability, Executive shall not be entitled to the Severance Pay provided for in this Agreement (or any other severance benefits), except that the Company shall pay Executive (or his estate or other representative, as applicable) the Accrued Obligations.
 
3. Termination by Executive without Good Reason or by the Company for Cause. If Executive terminates his agreement without Good Reason or is terminated by the Company for Cause, Executive shall not be entitled to the Severance Pay provided for in this Agreement (or any other severance benefits), except that the Company shall pay Executive the Accrued Obligations.
 
4. Release Requirement. To be eligible for any of the Severance Benefits, Executive must satisfy the following release requirement (the "Release Requirement"): return to the Company a signed and dated general release of all known and unknown claims in a termination agreement acceptable to the Company (the "Release") within the applicable deadline set forth therein, but in no event later than forty-five (45) days following Executive's termination date, and permit the Release to become effective and irrevocable in accordance with its terms (such effective date of the Release, the "Release Effective Date"). No Severance Benefits will be provided hereunder prior to the Release Effective Date. Accordingly, if Executive breaches the preceding sentence and/or refuses to sign and deliver to the Company an executed Release or signs and delivers to the Company the Release but exercises Executive's right, if any, under applicable law to revoke the Release (or any portion thereof), then Executive will not be entitled to any severance, payment or benefit under this Agreement.
 
5. Cooperation with Company after Termination of Agreement. Following termination of Executive's agreement for any reason, Executive agrees to cooperate fully with the Company in connection with its actual or contemplated defense, prosecution, or investigation of any claims or demands by or against third parties, or other matters arising from events, acts, or failures to act that occurred during the period of Executive's agreement with the Company. Such cooperation includes, without limitation, making Executive available to the Company upon reasonable notice, without subpoena, to provide complete, truthful and accurate information in witness interviews, depositions and trial testimony. In addition, for six months after Executive's agreement with the Company ends for any reason, the Company will reimburse Executive for reasonable out-of-pocket expenses Executive incurs in connection with any such cooperation (excluding forgone wages, salary, or other compensation) and will make reasonable efforts to accommodate Executive's scheduling needs.
 
	 
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III. MISCELLANEOUS
 
A. Notice.
 
1. All notices to be given with respect to this Agreement, unless otherwise provided for, shall be given to the Company and the Executive at the respective addresses, fax numbers and email addresses shown below or otherwise communicated by the Parties to each other for such notice and service matters during the currency of this Agreement.
 
2. All notices, requests, demands or other communications made by a Party will be deemed to have been duly delivered: (i) on the date of personal delivery utilizing a process server, courier or other means of physical delivery to the intended recipient ("Personal Service"); or (ii) on the date of facsimile transmission (the "Fax") on proof of receipt of the Fax; or (iii) on the date of electronic mail (the "email") with verifiable proof of receipt of such email; or (iv) on the seventh (7th) day after mailing by registered mail with postage prepaid ("Registered Mail"), to the Party's address, Fax number, email address set out in this Agreement or such other addresses Fax numbers or email address as the Parties or their Representatives may have from time to time during the currency of this Agreement or thereafter and communicated to the other Parties for the purposes of this Agreement.
 
	To: 
	BioCorRx Inc.

	 
	601 N. Parkcenter Drive, Suite 103

	 
	Santa Ana, California 92705

		
	To: 
	Brady Granier

		13024 Delano St.

		Valley Glen, CA 91401

  
B. Entire Agreement and Severance. This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof. This Agreement is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes and replaces any other agreements or promises made to Executive by anyone concerning Executive's agreement terms, compensation or benefits, whether oral or written (including but not limited the Prior Services Agreement). In the event that any provision of this Agreement will be held to be invalid, illegal or unenforceable in any circumstances, the remaining provisions will nevertheless remain in full force and effect and will be construed as if the unenforceable portion or portions were deleted.
 
C. Assignments. This Agreement shall be binding upon and inure to the benefit of the heirs and legal representatives of Executive and the permitted assigns and successors of the Company, but neither this Agreement nor any rights or obligations hereunder shall be assignable or otherwise subject to hypothecation by Executive (except by will or by operation of the laws of intestate succession) or by the Company, except that the Company may assign this Agreement to any successor (whether by merger, purchase or otherwise), if such successor expressly agrees to assume the obligations of the Company hereunder.
 
	 
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D. Amendment. This Agreement may be amended only by writing signed by Executive and by a duly authorized representative of the Company (other than Executive), with the exception of those changes expressly reserved to the Company's discretion in this Agreement. 
 
E. Beneficiaries; References. Executive shall be entitled to select (and change, to the extent permitted under any applicable law) a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following Executive's death, and may change such election, in either case by giving the Company written notice thereof. In the event of Executive's death or a judicial determination of his incompetence, reference in this Agreement to Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative. Any reference to the masculine gender in this Agreement shall include, where appropriate, the feminine.
 
F. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.
 
G. Jurisdiction. Unless otherwise mutually agreed to in writing by the Parties, any action, proceeding or arbitration in regard to a dispute or direction relating to the subject matter of this Agreement will be solely within the jurisdiction of the appropriate court, tribunal or arbitrator of competent jurisdiction within the State of California.
 
H. Dispute Resolution. To ensure the rapid and economical resolution of disputes that may arise in connection with Executive's agreement with the Company, Executive and the Company agree that any and all disputes, claims, or causes of action, in law or equity, including but not limited to statutory claims, arising from or relating to the enforcement, breach, performance, or interpretation of this Agreement, Executive's agreement with the Company, or the termination of Executive's agreement from the Company, will be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, and to the fullest extent permitted by law, by final, binding and confidential arbitration conducted in Orange County, California by JAMS, Inc. ("JAMS") or its successors, under JAMS' then applicable rules and procedures for agreement disputes (which can be found at http://www.jamsadr.com/rules-clauses/, and which will be provided to Executive on request); provided that the arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision including the arbitrator's essential findings and conclusions and a statement of the award. Executive and the Company shall be entitled to all rights and remedies that either would be entitled to pursue in a court of law. Both Executive and the Company acknowledge that by agreeing to this arbitration procedure, they waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding. The Company shall pay all filing fees in excess of those which would be required if the dispute were decided in a court of law, and shall pay the arbitrator's fee. Nothing in this Agreement is intended to prevent either the Company or Executive from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration
 
I. Currency. Unless otherwise expressly provided for herein or agreed upon in writing by the Parties, all references to money or money consideration are deemed to be in United States Currency ("US$").
 
J. Non-Waiver. The failure by either party to insist upon the performance of any one or more terms, covenants or conditions of this Agreement shall not be construed as a waiver or relinquishment of any right granted hereunder or of any future performance of any such term, covenant or condition, and the obligation of either party with respect hereto shall continue in full force and effect, unless such waiver shall be in writing signed by the Company (other than Executive) and Executive.
 
K. Counterparts and Execution Electronically. Where the Parties hereto or their authorized signatories have signed, sealed and duly executed this Agreement effective the date above shown whether as a whole document in original form or in several counterparts; each such counterpart shall be considered as an original and in combination comprises the formal execution hereof. The Parties acknowledge and consent to the execution of this Agreement and all related documents and notices pursuant hereto by electronically scanned signatures or facsimile transmission, either of which will constitute good and sufficient execution, service and notice for all intents and purposes hereunder and will be deemed to be as effective as if an originally "signed-in-hand" physical document was used instead.   
 
[Signature page to follow] 
 
	 
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    IN WITNESS WHEREOF this Agreement is hereby signed, sealed and duly executed by the Parties on the Effective Date first above written. 
 
		BioCorRx Inc. 
	
				
	Date: June 17, 2016 
	By:
		
			Lourdes Felix
	
		Title:
	CFO
	
				
	Date: June 17, 2016 
	By:
		
			Brady Granier
	
			Executive
	

 
 
 
9

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