Document:

vvus_EX 10-3

		

			Exhibit 10.3

		

		

			EXECUTION COPY

		

		

			 

		

		

			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			 

		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			TERMINATION, RIGHTS REVERSION 
		

		
			AND TRANSITION SERVICES AGREEMENT
		

		
			 
		

		
			between
		

		
			SANOFI
		

		
			and
		

		
			VIVUS, INC.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

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			TERMINATION, RIGHTS REVERSION AND 
		

		
			TRANSITION SERVICES AGREEMENT
		

		
			 
		

		
			This TERMINATION, RIGHTS REVERSION AND TRANSITION SERVICES AGREEMENT (this “Agreement”) is made as of February 28, 2017 (the “Execution Date”), by and between Sanofi, a French corporation having its registered office at 54 rue la Boétie, 75008, Paris, France (“Sanofi”) and VIVUS, Inc., a Delaware corporation with its principal office at 900 E. Hamilton Avenue, Suite 550, Campbell, California, 95008, United States of America (“Vivus”). Sanofi and Vivus are each referred to individually as a “Party” and together as the “Parties.”
		

		
			RECITALS
		

		
			WHEREAS, Sanofi and Vivus entered into a License and Commercialization Agreement dated December 11, 2013 (the “License Agreement”), pursuant to which Vivus granted Sanofi an exclusive license for the development, manufacture and commercialization of the Product and the API in the Field in the Sanofi Territory;
		

		
			WHEREAS, Sanofi desires to abandon and relinquish all rights to the Product and the API under the License Agreement and to terminate the License Agreement, on the terms and subject to the conditions set forth in this Agreement;
		

		
			WHEREAS, Vivus desires to accept the rights to the Product and the API being terminated by Sanofi and to the termination of the License Agreement, on the terms and subject to the conditions set forth in this Agreement; and
		

		
			WHEREAS, Sanofi and Vivus have also agreed, on the terms and subject to the conditions of this Agreement, that Sanofi will provide to Vivus certain transition services related to the termination of the rights to the Product and the API and the termination of the License Agreement.
		

		
			NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises, covenants and conditions contained in this Agreement, the Parties agree as follows:
		

			
	
			
				 1.
			Definitions.  Capitalized terms used in this Agreement shall have the meanings given to those terms in the License Agreement, except for those capitalized terms specifically defined in this Agreement, or as set forth in this Section 1.

		
			“Category A Countries” means the following countries where Sanofi has reasonably determined (in consultation with Vivus) that the transfer of Regulatory Materials for the Product to Vivus does not create an adverse impact on the Regulatory Approval of the Product: ***; and ***.  
		

		
			“Category B Countries” means the following counties where Sanofi has reasonably determined (in consultation with Vivus) that the transfer of Regulatory Materials for the Product to Vivus is reasonably likely to create an adverse impact on the Regulatory Approval of the Product: ***;  ***;  ***;  ***; ***;  ***;  ***;  ***;  ***;  ***; and ***.
		

		
			

		 

		

			         *** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			 

		

		

			 

		

 

		

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			“Other Countries” means the following countries where Sanofi (in consultation with Vivus) has not made a determination as to whether the country is a Category A Country or a Category B Country: ***;  ***;  ***; and ***.
		

		
			“Transition Date” means the earlier of (a) on a Category B Country-by-Category B Country basis, the date on which Vivus and Sanofi agree in writing that the transfer of Regulatory Materials for the Product to Vivus in such country is no longer likely to create an adverse impact on the Regulatory Approval of the Product in such Category B Country, or (b) *** from the Effective Date. 
		

			
	
			
				 2.
			Term; Termination of License Agreement; Effect of Termination.  

			
	
			
				 a.
			This Agreement shall be effective from and after the Execution Date and shall terminate upon the satisfaction of all the Parties’ obligations under Section 4 (the “Termination Date”).  On the thirtieth (30th) day following the Execution Date (the “Effective Date”), the License Agreement shall terminate for all of the countries in the Sanofi Territory, as if such termination was made by Sanofi, pursuant to Section 13.5 of the License Agreement (a “Sanofi Termination for Convenience”), notwithstanding any notice period set forth therein.

			
	
			
				 b.
			In accordance with, and without limiting the provisions of, Section 13.8 of the License Agreement (Effect of Early Termination of the Agreement), Section 13.8 of the License Agreement shall apply from and after the Effective Date, solely to the extent applicable as a result of a Sanofi Termination for Convenience and unless otherwise modified by this Agreement.

			
	
			
				 c.
			Except as specifically set forth in this Agreement or as the context of this Agreement may require, the License Agreement shall be unaffected by this Agreement. Without limiting the foregoing, Section 13.13 of the License Agreement (Survival) shall apply in accordance with its terms on and after the Effective Date.

			
	
			
				 3.
			Regulatory Milestone Payments.  Notwithstanding any provision of the License Agreement to the contrary, Sanofi shall not owe to Vivus and Vivus hereby waives any right that Vivus may have under Section 7.2 of the License Agreement (Regulatory Milestone Payments) to any payments that would otherwise be owed to Vivus thereunder, regardless of whether the milestone event referred to therein occurred on or before the Effective Date.

			
	
			
				 4.
			Transition Services.  The Parties acknowledge that in order to assist in the orderly transfer of the rights and licenses being terminated by Sanofi under the License Agreement and the reversion of those rights and licenses to Vivus (collectively, the “Transfer”), Sanofi shall provide to Vivus certain transition services, in particular so that the Transfer does not, to the greatest extent practicable, adversely impact Regulatory Approval of the Product in any country in the Sanofi Territory.

		
			

		 

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			 

		

		

			         

		

		

			 

		

 

		

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				 a.
			Transfer of Regulatory Materials and Approvals for Category A Countries.  As soon as practicable after the Effective Date, but in no event before *** (the “Materials Transfer Commencement Date”), Sanofi shall transfer to Vivus, at a location specified by Vivus (either a physical or electronic location), all Regulatory Materials and, as applicable, Regulatory Approvals, for the Category A Countries.  Sanofi shall use all reasonable efforts to complete the transfer of the Regulatory Materials and Regulatory Approvals (if applicable) for the Category A Countries within *** following the Materials Transfer Commencement Date.  In any event, Sanofi shall transfer the Regulatory Materials for the Category A Countries within *** following the Material Transfer Commencement Date or, if sooner, within *** of Regulatory Approval in any Category A Country, with respect to that Category A Country, as applicable.

			
	
			
				 b.
			Transition of Regulatory Responsibilities for Category B Countries.  The Parties acknowledge that as of the Execution Date and through the Effective Date, Sanofi is performing its obligations under the License Agreement to obtain Sanofi Territory Approvals.  From and after the Effective Date until the Transition Date, with respect to each Category B Country, Sanofi shall continue to pursue Regulatory Approvals for the Product in the Category B Countries in the same manner and with the same care and diligence that Sanofi is pursuing Regulatory Approval for the Category B Countries as of and prior to the Execution Date and, subject to obtaining such Regulatory Approvals and to the timely provision of all required information from Vivus, maintaining those Regulatory Approvals, in accordance with applicable law.  Without limiting the foregoing, the Parties shall, within *** of the Execution Date prepare a mutually acceptable written work plan setting forth the responsibilities of Sanofi with respect to its obligations to continue to pursue Regulatory Approval for the Product in each Category B Country, as well as the eventual transfer of all Regulatory Materials and Regulatory Approvals, in each case, for such Category B Country to Vivus.  Upon the Transition Date, Sanofi shall promptly transfer to Vivus, at a location specified by Vivus (either a physical or electronic location), all Regulatory Materials and, as applicable, Regulatory Approvals, for the Category B Countries not previously transferred. 

			
	
			
				 c.
			Transition Service Fees.    In full consideration for the services to be provided by Sanofi to Vivus under Sections 4(a) and 4(b) above (the “Transition Services”), Vivus shall pay to Sanofi the sum of *** Dollars ($*** US) for *** period during which these services are being performed (the “Service Fee”).  The Service Fee shall be paid in arrears, in equal, *** installments of *** ($*** US) by wire transfer of immediately available funds, *** following the receipt by Vivus of a written invoice for the portion of the Service Fee then due.  For clarity, the first written invoice for the first installment of the Service Fee shall be issued *** from the Effective Date.  Vivus shall be responsible for all filing fees and similar fees accruing after the Effective Date payable to Third Parties in connection with the performance by Sanofi of the Transition Services (“Third Party Fees”).  Any Third Party Fees shall be approved in writing by Vivus in advance, prior to being paid.  At the election of the Parties, Sanofi may pay any Third 

		 

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			 

		

		

			         

		

		

			 

		

 

		

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	Party Fees on Vivus’s behalf.  Sanofi may include on its Service Fee invoice the amount of any unreimbursed Third Party Fees. 

			
	
			
				 d.
			Other Countries.  As promptly as possible following the Execution Date, the Parties shall determine whether an Other Country is a Category A Country or a Category B Country.  Once such determination is made with respect to an Other Country, then such Other Country shall be deemed to be a Category A Country or Category B Country, as applicable.  

			
	
			
				 e.
			Other Regulatory Responsibilities.  Except as set forth in this Agreement, Vivus shall be responsible for obtaining and maintaining all Regulatory Approvals for the Product both within and outside the Sanofi Territory.

			
	
			
				 5.
			Manufacturing and Supply Agreements; Pharmacovigilance Agreement.  

		
			Nothing in this Agreement shall affect either
		

			
	
			
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			the Manufacturing and Supply Agreement dated September 1, 2013 by and between Sanofi Winthrop Industrie (an Affiliate of Sanofi) and Vivus, or the Commercial Supply Agreement dated January 1, 2014 by and between Sanofi Chimie (an Affiliate of Sanofi) and Vivus (collectively, the “Manufacturing and Supply Agreements”); or

			
	
			
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			the Global Safety Data Exchange Agreement dated August 1, 2016 by and between Sanofi-Aventis Recherche et Developpement (an Affiliate of Sanofi) and Vivus (the “Pharmacovigilance Agreement”). 

		
			The Manufacturing and Supply Agreements and the Pharmacovigilance Agreement are, and shall continue to be, in full force and effect, in accordance with their terms.
		

		
			The Pharmacovigilance Agreement shall terminate, unless earlier terminated, on the Termination Date.
		

			
	
			
				 6.
			Miscellaneous.

			
	
			
				 a.
			Governing Law.  Resolution of all disputes arising out of or related to this Agreement or the validity, construction, interpretation, enforcement, breach, performance, application or termination of this Agreement and any remedies related thereto, shall be governed by and construed in accordance with the substantive laws of the State of New York, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive laws of another jurisdiction. 

		
			

		 

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			 

		

		

			         

		

		

			 

		

 

		

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				 b.
			Assignment. Neither Party shall assign this Agreement, by operation of law or otherwise, without the prior written consent of the other Party, which consent shall not be unreasonably withheld, delayed or conditioned. Any such attempted assignment without such consent shall be void. Unless otherwise agreed in writing, no assignment by any Party shall be effective until the assignee shall have unconditionally assumed in writing all of assignor’s obligations hereunder and a written notice of such assignment is given to all other Parties. Notwithstanding the foregoing, either Party may assign this Agreement and its rights and obligations hereunder without notice or the prior written consent of the other Party to an Affiliate or to an acquirer of all or substantially all of its assets or business to which this Agreement relates; provided, that such Affiliate or acquirer also unconditionally assumes in writing all of assignor’s obligations hereunder. This Agreement shall be binding upon and inure to the benefit of the Parties’ respective successors and permitted assigns, and any assigning Party remains jointly and severally liable for the failure of any successor’s or permitted assign’s failure to perform its obligations hereunder. 

			
	
			
				 c.
			Notices.  Notwithstanding anything to the contrary, all notices, requests, demands, communications and deliveries required or made hereunder or thereunder must be made in writing signed by or on behalf of the Party making the same, and shall be (a) personally delivered, or (b) sent by overnight courier service with a contemporaneous notice sent by electronic mail confirming the notice sent by overnight courier service, in each case as follows: 

			
					
						 

					
					
						 

				
	
					
						If to Vivus:

					
					
						VIVUS, Inc.

				
	
					
						 

					
					
						900 E. Hamilton Ave, Suite 550

				
	
					
						 

					
					
						Campbell, CA 95008

				
	
					
						 

					
					
						Attention: John Slebir, General Counsel

				
	
					
						 

					
					
						Email: Slebir@vivus.com

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						With a copy to:

					
					
						Hogan Lovells US LLP

				
	
					
						 

					
					
						3 Embarcadero Center, Suite 1500

				
	
					
						 

					
					
						Attention: Jon Layman

				
	
					
						 

					
					
						Email: jon.layman@hoganlovells.com

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						If to Sanofi:

					
					
						Sanofi

				
	
					
						 

					
					
						54 rue la Boétie

				
	
					
						 

					
					
						75008 Paris, France

				
	
					
						 

					
					
						Attention: Vice-President Corporate Licensing

				
	
					
						 

					
					
						Email: BD@sanofi.com

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						With a copy to:

					
					
						Sanofi

				
	
					
						 

					
					
						54 rue la Boétie

				
	
					
						 

					
					
						75008 Paris, France

				

		 

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			 

		

		

			         

		

		

			 

		

 

		

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						Attention: Counsel, International Operations

				

		
			 
		

		
			or to such other representative or at such other address of a Party as such Party may furnish to the other Parties in writing in accordance with this Section 6(c). Any such notice, communication or delivery shall be deemed given or made (a) on the date of delivery, if delivered in person, or (b) on the first Business Day following delivery to the overnight courier service.
		

			
	
			
				 d.
			Waiver; Amendment. No amendment, modification or supplement of any provision of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized officer of each Party. No provision of this Agreement shall be waived by any act, omission or knowledge of a Party or its agents or employees except by an instrument in writing expressly waiving such provision and signed by a duly authorized officer of the waiving Party.

			
	
			
				 e.
			Severability.  If any provision hereof should be held invalid, illegal or unenforceable in any respect in any jurisdiction, the Parties shall substitute, by mutual consent, valid provisions for such invalid, illegal or unenforceable provisions which valid provisions in their economic effect are sufficiently similar to the invalid, illegal or unenforceable provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such valid provisions. In case such valid provisions cannot be agreed upon, the invalidity, illegality or unenforceability of one or several provisions of this Agreement shall not affect the validity of this Agreement as a whole, unless the invalid, illegal or unenforceable provisions are of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the invalid, illegal or unenforceable provisions. 

			
	
			
				 f.
			Entire Agreement.  This Agreement, together with all ancillary agreements referred to herein, including the provisions of the License Agreement that survive termination, constitutes and contains the complete, final and exclusive understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings and agreements, whether oral or written, between the Parties respecting the subject matter hereof and thereof. 

			
	
			
				 g.
			Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. A signed copy of this Agreement delivered by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. 

			
	
			
				 h.
			Confidentiality.  Article 12 of the License Agreement (Confidentiality), shall be incorporated into this Agreement as if the terms of such Article 12 were fully set forth in this Agreement.  

		
			

		 

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			 

		

		

			         

		

		

			 

		

 

		

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				 i.
			Dispute Resolution.  Any dispute arising out of or related to this Agreement shall be determined in accordance with Sections 14.1 through 14.4 of the License Agreement (Dispute Resolution).

		
			Signature page follows
		

		
			

		 

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			 

		

		

			         

		

		

			 

		

 

		

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			IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.
		

		
			SANOFI
		

		
			 
		

		
			By: /s/ Karen Linehan
		

		
			Name: Karen Linehan
		

		
			Title: General Counsel
		

		
			 
		

		
			 
		

		
			VIVUS, INC.

		

		
			 
		

		
			By: /s/ John L. Slebir
		

		
			Name: John L. Slebir
		

		
			Title: SVP, General Counsel
		

		
			Dated: 23 March 2017
		

		 

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.Exhibit
10.1

 

SETTLEMENT
AGREEMENT AND RELEASE 

 

This
Settlement Agreement and Release (“Agreement”) is made and entered into by and between Vape Holdings, Inc. (“Vape”),
on the one hand, and HIVE Ceramics, LLC (“HIVE”), and Kyle Tracey (“Tracey”), on the other hand (together,
the “Parties” and individually, a “Party”), effective on the date last signed below.

 

WHEREAS,
HIVE has asserted that Vape is in default on two Convertible Promissory Notes (the “HIVE Notes”) held in the name
of HIVE, one for $250,000 and one for $50,000 for a total of $300,000 in principal (the “HIVE Obligations”). The term
“HIVE Obligations” for purposes of this Agreement shall include all obligations, financial or otherwise, to HIVE or
any of HIVE’s affiliates, subsidiaries, and agents, other than Kyle Tracey;

 

WHEREAS,
on or about February 28, 2014, Vape entered into an agreement with HIVE in which Vape acquired certain assets from HIVE, which
assets are described in Exhibit “A” hereto (the “HIVE Assets”);

 

WHEREAS,
the HIVE Obligations are secured by the HIVE assets currently held by Vape;

 

WHEREAS,
Tracey has asserted that Vape owes him, personally, approximately $200,000.00 which is represented by lines of credit obtained
by various affiliates of HIVE, monies owed to IP licensees, as well as monies owed in royalties pursuant to a consulting agreement
between Vape and Tracey (the “Tracey Obligations”). The term “Tracey Obligations” for purposes of this
Agreement shall include all obligations, financial or otherwise, to Tracey or any of Tracey’s affiliates, subsidiaries,
and agents, other than HIVE;

 

WHEREAS,
it is now the intention of the Parties to fully and finally resolve and settle any and all past, existing, and potential claims,
demands, grievances, penalties, causes of action, and rights of appeal, both known and unknown, between Vape and HIVE with respect
to the HIVE Obligations and Vape and Tracey with respect to the Tracey Obligations;

 

WHEREAS,
the Parties wish to enter into this Agreement without any admission of liability of any kind by either Party, and with the understanding
that a bona fide dispute exists regarding the HIVE Obligations and the Tracey Obligations;

 

NOW,
THEREFORE, in consideration of the mutual promises, representations, and covenants set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by all Parties, the Parties stipulate and agree as
follows:

 

1.            Consideration
to HIVE. As consideration for this Agreement, HIVE shall receive the following:

 

1.1        Vape
will use its best efforts to arrange for the purchase and/or assignment of One Hundred Thousand Dollars ($100,000.000) of the
HIVE Notes in exchange for One Hundred Twenty Thousand Dollars ($120,000.00).

 

     

     

    

 

1.2        The
balance of the HIVE Notes (i.e., Two Hundred Thousand Dollars ($200,000.00)) shall be restated in a Convertible Promissory Note
(the “Restated HIVE Note”) in the principal amount of Two Hundred Thousand Dollars ($200,000.00) with the same general
terms and conditions as the HIVE Notes but with a term of one (1) year and the principal amount of the Restated HIVE Note shall
be convertible, at the option of Tracey, into common stock of Vape at $.001 per share. Vape will also use its best efforts to
establish, within one hundred twenty (120) days of the Effective Date, a share reserve with Vape’s Transfer Agent in an
amount equal to or greater than the number of shares issuable upon conversion of the Convertible Promissory Note referenced herein
(the “Share Reserve”). The Parties hereto acknowledge that Vape does not currently have the authorized shares necessary
to establish the Share Reserve.

 

1.3        Vape
will indemnify and hold HIVE harmless from any liabilities and claims related to HIVE Assets, HIVE products and this Settlement
Agreement.

 

2.            Consideration
to Tracey. As consideration for this Agreement, Tracey shall receive the following:

 

2.1.       Vape
shall enter into the Convertible Promissory Note attached hereto as Exhibit B (the “Tracey Note”) in the principal
amount of One Hundred Fifty Thousand Dollars ($150,000.00) with a term of one (1) year from the date of execution by Vape. There
shall be no interest on the Tracey Note and the principal amount of the Tracey Note shall be convertible, at the option of Tracey,
into common stock of Vape at $.001 per share. Vape will also use its best efforts to establish, within one hundred twenty (120)
days of the Effective Date, a share reserve with Vape’s Transfer Agent in an amount equal to or greater than the number
of shares issuable upon conversion of the Convertible Promissory Note referenced herein (the “Share Reserve”). The
Parties hereto acknowledge that Vape does not currently have the authorized shares necessary to establish the Share Reserve.

 

2.2.       As
to Tracey Obligations that are reflected on the Vape books and records as Vape debts that Tracey personally guaranteed during
the time he was a Vape officer and/or director, Vape agrees that until paid in full, Vape will pay a minimum of Seven Thousand
Dollars ($7,000.00) per month toward the Tracey Obligations.

 

2.3.       Vape
will indemnify and hold Tracey harmless from any liabilities and claims related to the HIVE Assets, HIVE products and this Settlement
Agreement.

 

3.            Default

 

3.1.       Events
of Default. The occurrence of any of the following will be an “Event of Default”:

 

3.1.1.     
Failure to pay or perform. Vape’s failure to perform any of its obligations hereunder within fifteen (15) calendar days
of receiving written notice from HIVE and/or Tracey of the failure to perform; or

 

3.1.2.     
Damage or encumbrance of HIVE Assets. Without limiting HIVE’s remedies under this Agreement, the attachment, execution,
levy, loss, theft, damage, destruction, or encumbrance respecting any of the HIVE Assets without HIVE’s prior express written
consent (unless such event is fully insured and the loss payable actually satisfies the obligations in favor of HIVE as required
by this Agreement).

 

    	 	1	 

     

    

 

3.2.       HIVE’s
Remedies Upon Default. Without limiting all other rights and remedies of HIVE under this Agreement, HIVE may pursue any legal
or equitable remedy available to it to collect or enforce Vape’s obligations hereunder, including the following:

 

3.2.1.     
Acceleration. HIVE may at its option declare all or any part of the unpaid amounts owed hereunder immediately due and payable
without presentment, demand or notice, which are hereby waived by Vape, and to enforce this Agreement and obtain a monetary judgment.

 

3.2.2.     
Litigation. Notwithstanding the other provisions of this Agreement, HIVE may file suit in state or federal court for injunctive
relief or other provisional remedy in connection with a default, including for specific performance by Vape of its obligations
hereunder. HIVE agrees to post a bond if required by the Court.

 

3.2.3.     
Repossession of the HIVE Assets. HIVE may take possession of any HIVE Assets not already in its possession without demand
and without legal process. Upon HIVE’s demand, Vape will assemble and/or make the HIVE Assets available to HIVE as HIVE
may direct. For this purpose, Vape grants to HIVE the right, for this purpose, to enter into or on any premises where HIVE Assets
may be located.

 

3.2.4.     
Default Interest. Following the occurrence and during the continuation of an Event of Default arising out of Vape’s
failure to pay any of payments due under this Agreement, interest at a default rate equal to the greater of (a) ten percent
(10.00%) per annum or (b) the maximum rate of interest permitted by applicable law, shall accrue on all past-due amounts.

 

3.3.       Vape’s
Remedies Upon Default. Vape may pursue any legal or equitable remedy available to it to enforce HIVE’s obligations
hereunder, including filing suit for injunctive relief or other provisional remedy in connection with a default.

 

4.            Releases

 

4.1.       Release
of Vape by Tracey. In consideration for the mutual promises, representations, and covenants herein, the sufficiency of which
is hereby acknowledged, Tracey, on behalf of himself and his heirs, estate, executors, administrators, agents, beneficiaries,
trustees, legal and other representatives, successors and assigns, hereby fully and completely releases and forever discharges
Vape, its past and present officers, directors, shareholders, board members, representatives, divisions, parents, subsidiaries,
predecessors, affiliates, successors, assigns, representatives, employees, assigns and agents, and any and all of them (collectively,
the “Vape Released Parties”), from any and all claims, complaints, charges, causes of action, demands, sums of money,
covenants, contracts, agreements, promises, liabilities, controversies, grievances, damages, debts and expenses, or judgments
of any nature whatsoever, in law or in equity, whether known or unknown, which Tracey ever had or now may have against the Vape
Released Parties or any of them, related to, in connection with, or arising out of the HIVE Obligations and the Tracey Obligations
(the “Tracey Released Claims”).

 

    	 	2	 

     

    

 

4.2.       Release
of Tracey by Vape Released Parties. In consideration for the mutual promises, representations, and covenants herein, the sufficiency
of which is hereby acknowledged, the Vape Released Parties, on behalf of themselves, fully and completely release and forever
discharge Tracey and his estate, executors, administrators, agents, beneficiaries, trustees, legal and other representatives,
successors and assigns (the “Tracey Released Parties”), from any and all claims, charges, complaints, causes of action,
demands, sums of money, covenants, contracts, agreements, promises, liabilities, controversies, grievances, damages, debts and
expenses, or judgments of any nature whatsoever, in law or in equity, whether known or unknown, which Vape ever had or now may
have against Tracey related to or arising out of the Tracey Obligations and the HIVE Obligations (the “Vape Released Claims”).

 

4.3.       Release
of Vape Released Parties by HIVE Release Parties. In consideration for the mutual promises, representations, and covenants
herein, the sufficiency of which is hereby acknowledged, the HIVE Released Parties (as defined below), on behalf of themselves,
fully and completely release and forever discharge Vape and its past and present officers, directors, shareholders, board members,
representatives, divisions, parents, subsidiaries, predecessors, affiliates, successors, assigns, representatives, employees,
assigns and agents, and any and all of them (collectively, the “Vape Released Parties”), from any and all claims,
charges, complaints, causes of action, demands, sums of money, covenants, contracts, agreements, promises, liabilities, controversies,
grievances, damages, debts and expenses, or judgments of any nature whatsoever, in law or in equity, whether known or unknown,
which the HIVE Released Parties ever had or now may have against the Vape Released Parties related to or arising out of the Tracey
Obligations and the HIVE Obligations (the “HIVE Released Claims”).

  

4.4.       Release
of HIVE by Vape Released Parties. In consideration for the mutual promises, representations, and covenants herein, the sufficiency
of which is hereby acknowledged, the Vape Released Parties, on behalf of themselves, fully and completely release and forever
discharge HIVE and its past and present officers, directors, shareholders, board members, representatives, divisions, parents,
subsidiaries, predecessors, affiliates, successors, assigns, representatives, employees, assigns and agents, and any and all of
them (collectively, the “HIVE Released Parties”), from any and all claims, charges, complaints, causes of action,
demands, sums of money, covenants, contracts, agreements, promises, liabilities, controversies, grievances, damages, debts and
expenses, or judgments of any nature whatsoever, in law or in equity, whether known or unknown, which Vape ever had or now may
have against HIVE related to or arising out of the Tracey Obligations and the HIVE Obligations (the “Vape Released Claims”).

 

    	 	3	 

     

    

 

4.5.       Release
of Unknown Claims. Each of the Parties acknowledges that it has been advised by his/its attorneys concerning, and is familiar
with, California Civil Code Section 1542 and hereby expressly waives any and all provisions, rights, and benefits conferred by
that section and by any law of any state or territory of the United States, or principle of common law, that is similar, comparable
or equivalent to the provisions of Section 1542, which reads as follows:

 

“A
general release does not extend to claims which the creditor does not know of or suspect to exist in ITS favor at the time of
executing the release which, if known by him/her, may have materially affected ITS settlement with the debtor.”

 

Notwithstanding
the provisions of Section 1542, and for the purposes of implementing a full and complete release, discharge and hold harmless
of the claims herein described, each of the Parties expressly acknowledges that this release, discharge and hold harmless is intended
to include all claims, including those which the Parties do not know or suspect to exist in his/its favor at the time of his/its
signature, and that this release, discharge and hold harmless will extinguish any such claims.

 

4.6.       No Pending Actions. Each of the Parties represents that, as of the date of this Agreement, it has not initiated, filed, prosecuted
or pursued any claim, complaint or charge against the Vape Released Parties/Tracey with any federal, state or local court, agency
or association, or any arbitral body.

 

5.            Agreement
to Arbitrate.

 

5.1.       Vape,
HIVE and Tracey hereby mutually agree that any and all disputes arising out of or relating to this Agreement will be subject to
resolution only through final and binding arbitration in accordance with the then applicable Arbitration Rules and Procedures
of Judicial Arbitration and Mediation Services (“JAMS”), as modified by applicable law and the terms of this Agreement.
The Parties acknowledge that, at the time they signed this Agreement, the then-applicable JAMS rules were posted on the JAMS website
at www.jamsadr.com, and that all Parties had an opportunity to review them. The claims covered by this Paragraph 4 include
any and all of the Released Claims.

 

5.2.       A
demand for arbitration giving notice of any claim sought to be arbitrated must be filed with JAMS within the limitations period
established by applicable state law, or if the dispute raises issues that would support federal jurisdiction, by applicable federal
law. The arbitration will take place in Los Angeles County, California. The arbitrator must render a written arbitration decision
that reveals the essential findings and conclusions on which the decision is based. Judgment on the Award may be entered in any
court having jurisdiction.

 

5.3.       The
Parties acknowledge and agree that, by agreeing to arbitration, they are waiving their right to a jury trial and any right they
may have to bring claims hereunder as a class or representative action (either in court or in arbitration) or to participate in
such an action.

 

    	 	4	 

     

    

 

6.            Representations
and Warranties: Other Agreements

 

6.1.       Non-Waiver

 

6.1.1.     
Any forbearance of a Party in exercising any right or remedy hereunder or otherwise afforded by applicable law shall not be
a waiver of or preclude the existence of any right or remedy. The acceptance by HIVE of payments of any sum payable hereunder
after the due date of such payment shall not be a waiver of HIVE’s rights to remedies.

 

6.1.2.     
No waiver, express or implied, by any Party of any breach or default in performance by the other Party of its obligations
under this Agreement shall be deemed or construed to be a waiver of any other breach, whether prior, subsequent, or contemporaneous,
under this Agreement.

 

7.            General
Provisions.

 

7.1.       Authorization.
By signing this Agreement, each Party represents and warrants that he/it has full authority to enter into this Agreement and
to bind himself/itself to this Agreement.

 

7.2.       Assignment.
The Parties represent and warrant that they have not assigned or transferred to any person or entity, any claim or right released,
granted or conveyed pursuant to this Agreement, and the Parties covenant and agree that neither party may assign any rights or
benefits under this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld.

 

7.3.       Voluntary
Agreement. The Parties acknowledge that they have read and understand this Agreement, and have had a full opportunity to review
and reflect upon the terms of this Agreement and to consult with legal counsel prior to executing this Agreement, and that their
signatures are freely, voluntarily and knowingly given.

 

7.4.       Entire
Agreement. The Parties agree that this Agreement as well as an Exhibits hereto, supersedes any prior arrangements, agreements
or contracts, whether written, oral or implied (in law or fact), between them, that it contains the entire understanding and agreement
between the Parties regarding the subject matter hereof, and that it cannot be amended, modified or supplemented in any respect,
except by a subsequent written agreement executed by all Parties.

 

7.5.       Choice
of Law and Venue. This Agreement shall be governed by the laws of the State of California without regard to choice of law
or conflicts of law principles. Any dispute, arbitration or otherwise, shall be brought in the appropriate forum located in Los
Angeles County, California except as may otherwise agreed to by the Parties.

 

7.6.       Costs.
Except as otherwise expressly set forth herein, each Party shall bear its own costs and expenses, including any and all legal
fees, incurred in connection with this Agreement.

 

7.7.       Severability.
If one or more terms or provisions of this Agreement is held to be unenforceable under applicable law, such provision shall be
excluded from this Agreement, and the balance of the Agreement shall be interpreted as if such provision was so excluded and shall
be fully enforceable in accordance with its terms.

 

    	 	5	 

     

    

 

7.8.       Construction
of this Agreement. The Parties acknowledge and agree that this Agreement is the result of arm’s-length negotiations
between the Parties with equal bargaining power. In addition, each Party has been represented by experienced and knowledgeable
legal counsel, and have each had a full opportunity to review this Agreement and to make or negotiate any changes they deem necessary.
Accordingly, no provision of this Agreement shall be interpreted or construed against any Party based on the claim that that Party
or its legal representative drafted that particular provision, and each party hereby waives any rule of law or legal decision
relating to interpretation against the drafter.

 

7.9.      Notices.
Notices required by this Agreement shall be communicated by email and by any form of overnight mail or in person to:

 

(a)
      If to Kyle Tracey:

 

Kyle
Tracey

9570
SW Ventura Ct.

Portland,
OR 97223

 

(b)        If
to HIVE:

 

HIVE
Ceramics, LLC

Attention:
Kyle Tracey, Managing Member

9570
SW Ventura Ct.

Portland,
OR 97223

  

(c)        If
to Vape:

 

Vape
Holdings, Inc.

Attention:
Ben Beaulieu, President/CEO

5304
Derry Ave., Suite C

Agoura
Hills, CA 91301

  

With
a copy to:

 

Horwitz
+ Armstrong, LP

Attention:
Larry Horwitz, Esq.

14
Orchard, Suite 200

Lake
Forest, CA 92630

  

7.10.     Headings.
The titles and subtitles of the various sections and paragraphs of this Agreement are inserted for convenience and shall not
be deemed to affect the meaning or construction of any of the terms, provisions, covenants and conditions of this Agreement.

 

    	 	6	 

     

    

 

7.11.     Counterparts.
This Agreement may be executed in multiple counterparts, all of which together shall constitute one and the same instrument.
Signatures exchanged by facsimile or.pdf shall be valid and effective as original signatures.

 

IN
WITNESS WHEREOF, on the dates specified below, the last date of which shall be deemed the “Effective Date”, the
Parties execute this Agreement with the intent to be bound by its terms and conditions.

 

	Vape
    Holdings, Inc.	 	HIVE
    Ceramics, LLC
	 	 	 	 	 
	By:	/s/
    Ben Beaulieu	 	By:	/s/
    Kyle Tracey
	 	Ben
    Beaulieu, President/CEO	 	 	Kyle
    Tracey, Managing Member
	 	 	 	 	 
	April
    28, 2017	 	April
    28, 2017
	Date	 	Date
	 	 	 	 	 
	 	 	 	Kyle
    Tracey
	 	 	 	 	 
	 	 	 	By:	/s/
    Kyle Tracey
	 	 	 	 	Kyle
    Tracey, personally
	 	 	 	 	 
	 	 	 	April
    28, 2017
	 	 	 	Date

 

    	 	7	 

     

    

 

EXHIBIT
A

SCHEDULE
OF ASSETS

 

1.
Any and all inventory, samples, purchase orders and related assets associated with the “HIVE Ceramics” vaporization
element product;

 

2.
Any and all intellectual property of “HIVE Ceramics”, including but not limited to trademarks, service marks, trade
names, logos, patents, patent applications, goodwill and related intellectual property associated with the Product;

 

3.
USPTO Patent Pending Application Number 61924220 and all right, title and interest thereto;

 

4.
The hiveceramics.com website and social media accounts owned by Seller and any hardware, software, source and object code
base, code and revisions, versioning system contents thereof, design, schemes, structures, database content and images, registered
names, domain names and intellectual property related to the hiveceramics.com website owned by Seller;

 

5.
Any and all client and distribution lists;

 

6.
Any and all contracts with clients and vendors; and

 

7.
Any and all equipment related to the Product.

 

Reproduced
from https://www.sec.gov/Archives/edgar/data/1455819/000121390014001221/f8k022814ex2i_vapeholdings.htm

 

    	 	8	 

     

    

 

EXHIBIT
B 

CONVERTIBLE
PROMISSORY NOTE

  

THIS
NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR REGISTERED OR QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND REGISTRATION OR QUALIFICATION
UNDER ANY APPLICABLE STATE SECURITIES LAWS OR (B) AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY THAT
SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED PURSUANT TO AN EXEMPTION UNDER SUCH ACT AND SECURITIES LAWS.

 

	 

        Up
        To: $150,000.00
	State
                                         of California

        April
         28, 2017

 

CONVERTIBLE
PROMISSORY NOTE

 

FOR
VALUE RECEIVED, Vape Holdings, Inc., a Delaware corporation
(“Maker”), hereby promises to pay to Kyle Tracey (the “Holder,” and together with Maker,
the “Parties”), the principal sum of One Hundred Fifty Thousand Dollars ($150,000.00) together with all accrued
and unpaid interest thereon, if any, fees incurred or other amounts owing hereunder, all as set forth below in this Convertible
Promissory Note (this “Note”).

 

1.          Principal
and Interest. There shall be no interest on the unpaid principal balance of this Note. The entire unpaid principal balance
and all accrued and unpaid interest, if any, under this Note, shall be due and payable on the date that is one (1) year from the
date hereof (the “Note Maturity Date”).

 

2.          Payment.
Unless prepaid, all principal and accrued interest under this Note is payable in one lump sum on the Note Maturity Date. All payments
of interest, in any, and principal shall be (i) in lawful money of the United States of America, and (ii) in the form of immediately
available funds. All payments shall be applied first to costs of collection, if any, then to accrued and unpaid interest, if any,
and thereafter to principal. Payment of principal and interest hereunder shall be delivered to Holder at the address furnished
to Maker for that purpose.

 

3.          
Prepayment. Maker, in its sole and absolute discretion, shall have the right, but not the obligation, to prepay all or
any portion of this Note at any time during its term. However, in the event Maker makes a partial or complete prepayment, Maker
shall pay Holder a thirty percent (30.0%) penalty on the then outstanding principal balance of the Note. For illustration purposes
only, if the principal balance at the time of prepayment is $150,000 and Maker is prepaying $100,000, then Maker shall pay $130,000
in order to retire the $100,000.. Such prepayments on this Note shall be applied first to accrued, unpaid interest, if any, and
thereafter to reduce the outstanding principal amount.

 

    	 	9	 

     

    

 

4.          Conversion.

 

(a)          Right
to Convert. The Holder shall have the right and at any time following the execution of this Note to convert all or any part
of the outstanding and unpaid principal and interest owing under this Note into fully paid non-assessable shares of Maker’s
common stock (“Common Stock”) at the conversion price of $0.001 per share of Common Stock (the “Conversion
Price”) (a “Conversion”). Upon Conversion, the Holder shall deliver the original Note (or a notice
to the effect that the original Note has been lost, stolen or destroyed and an agreement acceptable to the Maker whereby the Holder
agrees to indemnify the Maker from any loss incurred by it in connection with this Note) for cancellation at the closing; provided,
however, that upon satisfaction of the conditions set forth in this Section 4(a), this Note shall be deemed converted
and of no further force and effect, whether or not it is delivered for cancellation as set forth in this sentence. 

 

(b)         Mechanics
of Conversion. No fractional shares of Common Stock shall be issued upon Conversion of this Note. Before Holder shall be entitled
to convert the Note into shares of Common Stock pursuant to Paragraph 4(a), the following must occur: (a) Maker shall use its
best efforts, but in no event later than one hundred twenty (120) days from the date Maker executes this Note, to cause an increase
in its authorized shares of Common Stock in order to, at a minimum, meet Maker’s reserve obligations under this Note as
well as any other Maker convertible notes where a reserve is required; (b) Holder shall surrender the Note at the office of the
Maker or of any transfer agent for such Common Stock; and (c) Holder shall give written notice by mail, postage prepaid, to the
Maker at its principal corporate office, of the election to convert the same and the amount of principal and/or interest, if any,
being converted. Such Conversion shall be deemed to have been made immediately prior to the close of business on the date of such
surrender of the Note. 

 

(c)          Adjustments
for Reorganizations, Mergers, Reclassifications or Similar Events. If the Common Stock shall be changed into the same or a
different number of shares of any other class or classes of stock or other securities or property, whether by capital reorganization,
merger, reclassification or otherwise, then the Note shall thereafter be convertible into the number of shares of stock or other
securities or property to which a holder of the number of shares of common stock of the Maker deliverable upon Conversion of the
Note shall have been entitled upon such reorganization, merger, reclassification or other event.

 

(d)          No
Shareholder Rights. Nothing contained in this Note shall be construed as conferring upon the Holder or any other person: (a) the
right to vote or to consent or to receive notice as a shareholder with respect to meetings of shareholders of the Maker or for
any other matters on which shareholders are entitled to vote or receive notice, or (b) any other rights as a shareholder
of the Maker, and (c) no dividends shall be payable or accrued with respect to Class A Common Stock into which this Note
is convertible, in all cases until, and only to the extent that, this Note shall have been converted into Class A Common Stock
as provided in this Note.

 

5.          Unregistered
Securities; Accredited Investor. The Parties acknowledge and agree that the Securities
will not to be registered under the Securities Act of 1933, as amended (the “Securities Act”), or under any
applicable state securities laws (collectively, the “Laws”) and are being offered and sold in reliance upon
exemptions from registration under the Securities Act and the Laws. Holder hereby represents and warrants to Maker, that he is
an Accredited Investor as such term is defined in Rule 501 of Regulation D of the Securities Act. 

 

    	 	10	 

     

    

 

6.          Default.
If any of the events specified below shall occur (each, a “Note Default”) Holder may declare the unpaid principal
balance under this Note, together with all accrued and unpaid interest thereon, if any, fees incurred or other amounts owing hereunder
immediately due and payable, by notice in writing to Maker. Any default, if curable, may be cured (and no Note Default will have
occurred) if Maker, after receiving written notice from Holder demanding cure of such default, either (a) cures the default within
fifteen (15) days of the receipt of such notice, or (b) if the cure requires more than fifteen (15) days, immediately initiates
steps that Holder deems in Holder’s reasonable discretion to be sufficient to cure the default and thereafter diligently
continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. Each
of the following events shall constitute an Note Default:

 

6.1.         Failure
to Pay. Maker’s failure to make any payment when due and payable under this Note (a “Payment Default”);

 

6.2.         Breaches
of Covenants. Maker’s failure to observe or perform any other covenant, obligation, condition or agreement contained
in this Note;

 

6.3.         Representations
and Warranties. If any representation, warranty, certificate, or other statement (financial or otherwise) made or furnished
by or on behalf of Maker to Holder in writing in connection with this Note, shall be false or misleading in any material respect
when made or furnished; and

 

6.4.         Involuntary
Bankruptcy. If any involuntary petition is filed under any bankruptcy or similar law or rule against Maker, and such petition
is not dismissed within sixty (60) days, or a receiver, trustee, liquidator, assignee, custodian, sequestrator or other similar
official is appointed to take possession of any of the assets or properties of Maker.

 

7.           Binding
Effect; Assignment. This Note shall be binding on the Parties and their respective heirs, successors, and assigns; provided,
however, that neither party shall assign any of its rights hereunder without the prior written consent of the other party,
except that Maker may assign this Note to any of its Affiliates without the prior written consent of Holder and, furthermore,
Holder agrees that it shall not unreasonably withhold, condition or delay its consent to any other assignment of this Note by
Maker.

 

8.           Governing
Law and Venue. This Note shall be governed by and interpreted in accordance with the laws of the State of California for contracts
to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict of laws. Any dispute
regarding the terms or conditions of this Note shall be resolved in the County of Los Angeles, State of California.

 

9.           Pronouns.
Regardless of their form, all words used in this Note shall be deemed singular or plural and shall have the gender as required
by the text.

 

10.         Headings.
The various headings used in this Note as headings for sections or otherwise are for convenience and reference only and shall
not be used in interpreting the text of the section in which they appear and shall not limit or otherwise affect the meanings
thereof.

 

11.         Time
of Essence. Time is of the essence with this Note.

 

12.         Severability.
If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve the objective of the
Parties to the fullest extent permitted by law and the balance of this Note shall remain in full force and effect.

 

    	 	11	 

     

    

 

13.         Amendments
and Waivers; Remedies. No failure or delay on the part of either party hereto in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other
or further exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative
and are not exclusive of any remedies that may be available to either party hereto at law, in equity or otherwise. Any amendment,
supplement or modification of or to any provision of this Note, any waiver of any provision of this Note, and any consent to any
departure by either party from the terms of any provision of this Note, shall be effective (i) only if it is made or given in
writing and signed by Maker and Holder and (ii) only in the specific instance and for the specific purpose for which made or given.

 

14.         Notices.
Unless otherwise provided for herein, all notices, requests, demands, claims and other communications hereunder shall be given
in accordance with the addresses set forth on the signature page hereto. Either party may change the address to which notices,
requests, demands, claims or other communications hereunder are to be delivered by providing notice thereof to the other party.

 

15.         Counterparts.
This Note may be executed in any number of counterparts, each of which is an original and all of which taken together form one
single document.

 

16.         Final
Note. This Note contains the complete understanding and agreement of Maker and Holder and supersedes all prior representations,
warranties, agreements, arrangements, understandings, and negotiations of Maker and Holder with respect to the subject matter
hereof. THIS NOTE REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY ALLEGED PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[INTENTIONALLY
BLANK – SIGNATURE PAGE FOLLOWS]

 

    	 	12	 

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this Note as of the date set forth above.

 

	 	MAKER:
	 	VAPE
    HOLDINGS, INC.
	 	 	 
	 	By:	/s/
    Benjamin Beaulieu
	 	Name:	Benjamin
    Beaulieu
	 	Title:	President

 

ACKNOWLEDGED,
ACCEPTED, AND AGREED:

 

	HOLDER:	 
	 	 	 
	By:	/s/
Kyle Tracey	 
	 	Kyle
    Tracey	 

 

 

13

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