Document:

Unassociated Document

    Exhibit 10.21

     

    
      SETTLEMENT
AND RELEASE AGREEMENT

      

      

      This
Settlement and Release Agreement (the "Agreement") is made by and between
NewCardio, Inc., a Delaware corporation (the "Company") and Samuel E. George,
M.D. (“SG”) as of October 1, 2006 (the “Effective Date”).

      

      WHEREAS,
SG served as a consultant to the Company from approximately September 24, 2004
to approximately August 22, 2005, and as Vice President and Chief Medical
Officer of the Company from approximately August 22, 2005 to approximately
August 22, 2006 and as a member of the Board of Directors of the Company from
approximately August 15, 2005 to approximately June 15, 2006;

      

      WHEREAS,
the Company has been trying to raise additional capital to fund its operations
so that it is able to hire full time employees, which may include
SG;

      

      WHEREAS,
the Company has not yet been able to secure such funding;

      

      WHEREAS,
SG and the Company are mutually desirous of working together notwithstanding the
Company’s current financial condition; and

      

      WHEREAS,
the parties hereto desire to set out the terms for SG’s ongoing involvement with
the Company and settle all existing matters.

      

      NOW
THEREFORE, in consideration for the promises made herein, the parties hereto
agree as follows:

      

      1. Consideration.

      

      (a) Accelerated Vesting of
Options.

      

       (i)
SG was previously granted options to purchase 100,000 and 150,000 shares of the
Company’s Common Stock at exercise prices of $0.001 and $0.01 per share,
respectively.  On the Effective Date, each of the aforementioned
options shall be fully vested.

      

       (ii)
SG was granted an option to purchase 350,000 shares of the Company’s Common
Stock, vesting monthly over 48 months, on August 22, 2005 (the “2005
Option”).  As of a meeting between the Parties on August 25, 2006,
87,500 shares subject to the 2005 Option have vested, and 262,500 shares subject
to the 2005 Option are unvested.  Upon the Effective Date, the 2005
Option shall be amended such that SG shall be permitted to purchase 137,500
shares of the Company’s Common Stock, such 137,500 shall be considered fully
vested, and no additional shares shall be subject to purchase under the 2005
Option.

      

      (b) Cash
Compensation.  Subject to the Company having sufficient capital
resources if and when it obtains financing from one or more individuals or
entities, the Company shall pay to SG a sum of $95,000, which represents amounts
the Company originally intended to pay to SG but is not able to at this
time.

       

      
        
           

        

        
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      (c) Reimbursement of
Expenses.  Subject to the availability of sufficient capital
resources, the Company shall reimburse SG for all reasonable out-of-pocket
expenses incurred and approved by the Company provided that such reimbursement
amount will be reduced by $5,000, which represents an existing obligation of SG
owing to the Company.

      

      (d) The
parties hereto agree to enter into the consulting agreement in the form attached
hereto as Exhibit
A.

      

      2. Release of Claims.
For and in consideration of the consideration herein and execution of this
Agreement, each party on behalf of himself, itself or assigns, hereby fully and
forever releases the other party and its officers, directors, employees, agents,
shareholders, administrators, affiliates, divisions, subsidiaries, successor
corporations, and assigns, if any, from any and all claims, duties, obligations,
or causes of action relating to SG’s prior services provided to the Company, as
an officer and director of the Company, whether presently known or unknown,
suspected or unsuspected, that either party may possess arising from any
omissions, acts, or facts that have occurred up to and including the date of
this release, including without limitation the following:

      

      

      (a) any and all
claims relating to amounts owed, or promised to be paid, to SG for bonuses,
reimbursement of expenses, or otherwise;

       

      (b) any
and all claims relating to, or arising from, SG’s right or option to purchase,
or actual purchase of, shares of Company stock, including, but not limited to,
any claims for fraud, misrepresentation, breach of fiduciary duty, breach of
duty under applicable state corporate law, and securities fraud under any state
or federal law;

       

      (c) any
and all claims under the law of any jurisdiction, including, but not limited to,
wrongful discharge of employment; constructive discharge from employment;
termination in violation of public policy; discrimination; breach of contract,
both express and implied; breach of a covenant of good faith and fair dealing,
both express and implied; promissory estoppel; negligent or intentional
infliction of emotional distress; negligent or intentional misrepresentation;
negligent or intentional interference with contract or prospective economic
advantage; unfair business practices; defamation; libel; slander; negligence;
personal injury; assault; battery; invasion of privacy; false imprisonment; and
conversion;

       

      (d) any
and all claims for violation of any federal, state or municipal statute,
including, but not limited to, Title VII of the Civil Rights Act of 1964; the
Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967; the
Americans with Disabilities Act of 1990; the Fair Labor Standards Act; the
Executive Retirement Income Security Act of 1974; the Worker Adjustment and
Retraining Notification Act; the Older Workers Benefit Protection Act; the
Family and Medical Leave Act; the Fair Credit Reporting Act; the California
Family Rights Act; the California Fair Employment and Housing Act; and the
California Labor Code;

       

      
        
           

        

        
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      (e) any
and all claims for violation of the federal, or any state,
constitution;

       

      (f) any
and all claims arising out of any other laws and regulations relating to
employment or employment discrimination;

       

      (g) any
claim for any loss, cost, damage, or expense arising out of any dispute over the
non-withholding or other tax treatment of any of the proceeds received by SG as
a result of this Agreement; and

       

      (h) any
and all claims for attorney fees and costs.

       

      The
Company and SG agree that the release set forth in this section shall be and
remain in effect in all respects as a complete general release as to the matters
released.  This release does not extend to any obligations incurred
under this Agreement.

      

      3. Civil Code Section
1542. Each party represents that he or it is not aware of any claim by
him or it other than the claims that are released by this
Agreement.  Each party acknowledges that he or it has been advised by
legal counsel and is familiar with the provisions of California Civil Code
Section 1542, which provides as follows:

       

      A GENERAL
RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN ITS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY IT
MUST HAVE MATERIALLY AFFECTED ITS SETTLEMENT WITH THE DEBTOR.

      

      Each
party, being aware of said code section, agrees to expressly waive any rights he
or it may have thereunder, as well as under any other statute or common law
principles of similar force or effect.

      

      4. No Pending or Future
Lawsuits. Each party represents and warrants that there are no lawsuits,
claims, or actions pending in any collective or class action, or on behalf of
any other person or entity, against the other party.  Each party also
represents and warrants that there is no intent to bring any claims on behalf of
any other person or entity against the other party relating to any acts, events,
or transactions occurring before the Effective Date.

      

      5. No Admission of
Liability. Each party understands and acknowledges that this Agreement
constitutes a compromise and settlement of disputed claims.  No action
taken by either party, either previously or in connection with this Agreement,
shall be deemed or construed as (a) an admission of the truth or falsity of any
claims heretofore made or (b) an acknowledgment or admission by the other party
of any fault or liability whatsoever to said party or to any third
party.

      

      6. Costs.  The
Company and SG shall each bear their own costs, attorneys' fees and other fees
incurred in connection with their dispute, in entering into this Agreement and
in connection with the matters contained herein.

       

      
        
           

        

        
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      7. Arbitration.

      

       (a) Any
controversy between the parties hereto involving any claim arising out of or
relating to this Agreement shall be finally settled by arbitration in Santa
Clara County, California, in accordance with the then current Commercial
Arbitration Rules of the American Arbitration Association, and judgment upon the
award rendered by the arbitrators may be entered in any court having
jurisdiction thereof.

      

       (b) THE PARTIES
HERETO HAVE READ AND UNDERSTAND THIS SECTION 7, WHICH DISCUSSES ARBITRATION. SG
UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EACH PARTY AGREES TO SUBMIT, UNLESS
OTHERWISE REQUIRED BY LAW, ANY CLAIMS ARISING OUT OF, RELATING TO, OR IN
CONNECTION WITH THIS AGREEMENT, THE INTERPRETATION, VALIDITY, CONSTRUCTION,
PERFORMANCE, BREACH OR TERMINATION HEREOF, OR ANY OF THE MATTERS HEREIN TO
BINDING ARBITRATION, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF
EACH PARTY’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES
RELATING TO ALL ASPECTS OF THIS AGREEMENT AND RELEASE OF ALL
CLAIMS.

      

      8. Authority.  The
Company and SG represent and warrant that (a) the persons signing this Agreement
have the authority to bind the person or entity entering into this Agreement and
all who may claim through he, she or it to the terms and conditions of this
Agreement; and (b) there are no liens or claims of lien or assignments in law or
equity or otherwise of or against any of the claims or causes of action released
herein.

      

      9. No
Representations.  Each party to this Agreement represents that
he or it has had the opportunity to consult with an attorney, and has carefully
read and understands the scope and effect of the provisions of this
Agreement.  No party has relied upon any representations or statements
made by any other party hereto which are not specifically set forth in this
Agreement.

      

      10. Tax
Consequences.  The Company makes no representations or
warranties with respect to the tax consequences of the payment of any
consideration to SG under the terms of this Agreement. SG understands that he is
responsible for payment, if any, of local, state and/or federal taxes on any
consideration paid hereunder by the Company and any penalties or assessments
thereon.

      

      11. Severability.  In
the event that any provision of this Agreement becomes or is declared by a court
of competent jurisdiction to be illegal, unenforceable, or void, this Agreement
shall continue in full force and effect without said provision.

      

      12. Successors.  This
Agreement shall be binding upon and inure to the benefit of, and shall be
enforceable by SG and the Company, their respective heirs, executors,
administrators, successors and assigns.  In the event the Company is
merged, consolidated, liquidated by a parent corporation, or otherwise combined
into one or more corporations, the provisions of this Agreement shall be binding
upon and inure to the benefit of the parent corporation or the corporation
resulting from such merger or to which the assets shall be sold or transferred,
which corporation from and after the date of such merger, consolidation, sale or
transfer shall be deemed to be the Company for purposes of this
Agreement.

       

       

      
        
           

        

        
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      13. Entire
Agreement.  This Agreement represents the entire agreement
between SG and the Company and supersedes and replaces any and all
understandings or agreements, whether written or oral, concerning the subject
matter herein.

      

      14. No Oral
Modification.  This Agreement may only be modified by a writing
signed by the Company and SG.

      

      15. Governing
Law.  This Agreement shall be governed by the laws of the State
of California, without reference to conflict of law provisions.

      

      16. Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, and when taken together, shall constitute one and the same
instrument.

      

      17. Voluntary Execution of
Agreement.  This Agreement is executed voluntarily and without
duress or undue influence on the part or behalf of the Company or SG, with the
full intent of releasing all claims.  The Company and SG acknowledge
that:

      

      (a) They have
read this Agreement;

      

      (b) They have
been represented in the preparation, negotiation and execution of this Agreement
by legal counsel of their own choice or have knowingly declined to have such
representation;

      

      (c) They
understand the terms and consequences of the Agreement and the release set forth
herein; and

      

      (d) They are
fully aware of the legal and binding effect of this Agreement.

       

       

      
        
           

        

        
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       IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on October
____, 2006.

      

       

      
        
          	 	NEWCARDIO,
      INC.    	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Branislav
      Vajdic, Ph.D.	 
	 	 	Branislav
      Vajdic, Ph.D, Chief Executive Officer and Director	 
	 	 	    	 
	 	 	 	 
	 	 	/s/
      Samuel E. George, M.D.	 
	 	 	SAMUEL
      E. GEORGE, M.D.	 

        

      

      
 

      
        
           

        

        
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      EXHIBIT
A

      

      Consulting
Agreement

      

       

      [see attached]

       

       

       

       

       

       

      7Unassociated Document

    Exhibit 10.22

     

    
      
        TECHNOLOGY
ASSIGNMENT AGREEMENT

         

        THIS
ASSIGNMENT (this "Assignment") is made and entered into as of September 28, 2004
(the "Effective Date"), by and between Basko Bojovie, an individual ("Assignor")
and NEWCARDIO, INC., a Delaware corporation (the "Company").

         

        WITNESSETH

         

        WHEREAS,
Assignor has certain technology, assets and property rights;

         

        WHEREAS,
in consideration for the issuance of shares of the Company's Common Stock to
Assignor, Assignor desires to assign to the Company the entire and exclusive
tight, title and interest in, to such technology, assets and property
rights;

         

        Now,
THEREFORE, it is agreed as follows:

         

        1. 
ASSIGNMENT

         

        1.1 Assignment of Rights. Assignor hereby
irrevocably assigns, conveys and transfers to the Company its entire right,
title and interest in and to the technology, assets and property rights
described on Annex A, attached hereto (collectively, the
"Property").

         

        1.2  Assignor's Warranty. Assignor hereby represents
and warrants that, to the best of Assignor's knowledge, Assignor is the sole
lawful owner of and has good and marketable title to the Property free and clear
of all liens and encumbrances, that no other party has any rights or interest in
the Property, and that Assignor has full legal right, power and authority to
sell, assign and transfer the Property as provided herein, provided, however,
that the foregoing shall not be interpreted as a representation of
non-infringement of unknown third party rights. Assignor will not execute any
agreement in conflict with this Assignment and, at the request of the Company,
Assignor will execute and deliver all papers and take such other action as may
be necessary or desirable to protect and perfect title to the Property in the
Company, its successors and assigns.

         

        1.3 Prosecution and Maintenance of Property.
Assignor hereby agrees that Assignor will communicate to the Company any facts
known to Assignor respecting the Property, whenever reasonably requested, and
will testify in any legal proceeding, sign all lawful papers, make all rightful
oaths, and generally do everything reasonably necessary to aid the Company, its
successors and assigns, to obtain and enforce proper protection of the Property
in the United States and all countries throughout the world.

         

         

        
          
             

          

          
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        In the
event the Company is unable for any reason, after reasonable effort, to secure
the signature of Assignor on any document needed in connection with the actions
specified in the preceding paragraph, Assignor hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as Assignor's
agent and attorney in fact, which appointment is coupled with an interest, to
act for and in Assignor's behalf to execute, verify and file any such documents
and to do all other lawfully permitted acts to further the purposes of the
preceding paragraph with the same legal force and effect as if executed by the
Assignor.

         

        2. CONSIDERATION

         

        2.1 Transfer of Common Stock. As consideration for
the assignment of the Property,
the Company will issue and deliver to Assignor 800,000 shares of the Company's
Common Stock in accordance with the terms of the Vesting Stock Purchase
Agreement dated on or about the date hereof.

         

        3. MISCELLANEOUS

         

        3.1 No Conditions to Effectiveness; Entire
Assignment. There are no conditions to the
effectiveness of this Assignment This Assignment contains the entire agreement
and understanding of the parties hereto, and supersedes any prior agreements or
understandings between or among the parties hereto, with respect to the subject
matter hereof.

         

        3.2 
Governing Law. This Assignment, and the
rights of the parties hereto, shall be governed
by and construed in accordance with the laws of the State of California as such
laws apply to agreements among California residents made and to be performed
entirely within the State of California.

         

        3.3 Amendment and Waivers. This Assignment may be
amended only by an instrument in writing signed by the parties hereto. No
waivers of or exceptions to any term, condition or provision of this Assignment,
in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such term, condition or provision.

         

        3.4 Severability. If any provision of this
Assignment is held to be invalid or unenforceable, the validity and
enforceability of the remaining provisions of this Assignment shall not be
affected thereby.

         

        3.5 Successors and Assigns. This Assignment shall
inure to the benefit of and be binding
upon the parties hereto and their respective heirs, successors, assigns,
administrators, executors and other legal representatives.

         

        3.6 Counterparts. This Assignment may be executed
in one or more counterparts, each of
which will be deemed an original but all of which together shall constitute one
and the same agreement.

         

         

        
          
             

          

          
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        3.7 Attorney's Fees. In the event that any suit or
action is instituted to enforce any provision
in this Assignment, the prevailing party shall be entitled to all costs and
expenses of maintaining such suit or action, including reasonable attorneys'
fees.

         

        IN WITNESS WHEREOF, the parties hereto have
executed this Assignment as of the date ftrst written above.

         

        
          	
                  NEWCARDIO,
      INC.

                	 	
                  ASSIGNOR

                
	 
      	 	 
      
	
                  By:
      /s/ Mark Cameron White
      
                    
      

                	 	
                  By:
      /s/ Bosko Bojovic
      
                    
       

                
	
                  Mark
      Cameron White

                	 	
                  Bosko
      Bojovic

                
	
                  President

                	 	 
      

        

         

         

        
          
             

          

          
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        ANNEX
A

         

        DESCRIPTION
OF PROPERTY

         

        The
Property described herein consists of all of Assignor's right, title and
interest in and to the proprietary technology developed for NewCardio, Inc.,
including the VisualECG (heart imaging software based on the 12 lead ECG input),
the CardioBip (a hand-held ECG device with integrated electrodes and associated
software to reconstruct a 12 lead ECG), and any and all other technology,
software (in source code and object code form), web site design and
architecture, business plans, marketing plans, designs, proprietary information,
documentation, research, notes, trade secrets or materials and designs, or other
information not readily available in the public domain, and all goodwill
associated therewith, including without limitation all work in progress, prior
and current versions of prototypes of and all user documentation for any
Property.

         

         

        4

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