Document:

Exhibit 10.25

 

STOCK OPTION AGREEMENT

 

LOTON, CORP.

 

THIS STOCK OPTION AGREEMENT (this “Agreement”)
is entered into as of the ___ day of ______________, 201__ (the “Date of Grant”)

 

		BETWEEN:	LOTON, CORP., a company incorporated pursuant to
the laws of the State of Nevada (the “Company”),

 

		AND:	[_______________], of ________________________________
(the “Optionee”).

 

WHEREAS:

 

A.          The
Board of Directors of the Company (the “Board”) has approved and adopted the Loton, Corp. 2016 Equity Incentive Plan
(the “2016 Plan”), pursuant to which the Board is authorized to grant to employees and other selected service providers
and persons, including members of the Board, stock options to purchase common shares of the Company (the “Common Stock”);

 

B.          The
2016 Plan provides for the granting of stock options that either (i) are intended to qualify as “Incentive Stock Options”
within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or (ii) do not satisfy
the requirements for qualification under Section 422 of the Code (“Nonstatutory Stock Options”); and

 

C.           The
Board has authorized the grant to Optionee of options to purchase a total of [_______________] ([____]) shares of Common
Stock (the “Options”), which Options are intended to be (select one):

 

		 ̈	Incentive Stock Options;

 

		 ̈	Nonstatutory Stock Options

 

NOW THEREFORE, the Company agrees to offer
to the Optionee the option to purchase, upon the terms and conditions set forth herein and in the Plan, [__________] ([____])
shares of Common Stock. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the 2016 Plan.

 

1.            Exercise
Price. The exercise price of the options shall be US$[_____] per share.

 

2.            Limitation
on the Number of Shares. If the Options granted hereby are Incentive Stock Options, the number of shares which may be acquired
upon exercise thereof is subject to the limitations set forth in Section 6(a) of the 2016 Plan.

 

3.            Vesting Schedule.
The Options shall vest in accordance with Exhibit A attached hereto, provided however that, in the event that an Optionee
is party to a written employment agreement with the Company pursuant to which service-based vesting requirements applicable to
Options are excused, in whole or in part, upon the occurrence of a Change in Control (a “Change in Control Vesting Accelerator”),
then Exhibit A shall be deemed to incorporate by reference such provisions.

 

4.            Options not Transferable.
Subject to Section 13 of the 2016 Plan, the Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed
of in any manner (whether by operation of law or otherwise) other than by will or by the laws of descent or distribution or, in
the case of a Nonstatutory Stock Option, pursuant to a qualified domestic relations order, and shall not be subject to execution,
attachment or similar process; provided, however , that if the Options represent a Nonstatutory Stock Option, such Option
is transferable without payment of consideration to immediate family members of the Optionee or to trusts or partnerships established
exclusively for the benefit of the Optionee and Optionee’s immediate family members. Upon any attempt to transfer, pledge,
hypothecate or otherwise dispose of any Option or of any right or privilege conferred by the 2016 Plan contrary to the provisions
thereof, or upon the sale, levy or attachment or similar process upon the rights and privileges conferred by the 2016 Plan, such
Option shall thereupon terminate and become null and void.

 

5.            Investment Intent.
By accepting the Options, the Optionee represents and agrees that none of the shares of Common Stock purchased upon exercise of
the Options will be distributed in violation of applicable federal and state laws and regulations. In addition, the Company may
require, as a condition of exercising the Options, that the Optionee execute an undertaking, in such a form as the Company shall
reasonably specify, that the Stock is being purchased only for investment and without any then-present intention to sell or distribute
such shares.

 

     

     

    

 

6.           Termination of
Employment and Options. Vested Options shall terminate, to the extent not previously exercised, upon the occurrence of the
first of the following events:

 

		(a)	Expiration. [__________] ([____]) years from the Date of Grant.

 

		(b)	Termination for Cause. The date of the first discovery by the Company of any reason for
the termination of an Optionee’s employment or contractual relationship with the Company or any related company for cause
(as determined in the sole discretion of the Administrator (as defined in the 2016 Plan)), and, if an Optionee’s employment
is suspended pending any investigation by the Company as to whether the Optionee’s employment should be terminated for cause,
the Optionee’s rights under this Agreement and the 2016 Plan shall likewise be suspended during the period of any such investigation.

 

		(c)	Termination Due to Death or Disability. Subject to Section 6(d)(iii) of the 2016 Plan, the
expiration of six (6) months from the date of the death of the Optionee or cessation of an Optionee’s employment or contractual
relationship by reason of Disability (within the meaning of Section 22(e) of the Code) (but in no event later than the expiration
of the term of such Option as set forth in this Agreement). Subject to Section 6(d)(iv) of the 2016 Plan, if an Optionee’s
employment or contractual relationship is terminated by death, any Option held by the Optionee shall be exercisable only by the
person or persons to whom such Optionee’s rights under such Option shall pass by the Optionee’s will or by the laws
of descent and distribution.

 

		(d)	Termination On or After a Change in Control. If the Optionee’s employment or contractual
relationship terminates for reasons other than those described in the preceding Sections 6(b) or 6(c) on or after the occurrence
of a Change of Control due to an involuntary termination within the meaning of Treasury Regulation Section 1.409A-1(n) (including,
without limitation, termination by the Optionee for “good reason” within the meaning of Section 1.409a-1(n)(2)), then
the Option shall terminate, to the extent not previously exercised, in accordance with Section 6(a).

 

		(e)	Termination for Any Other Reason. Subject to Section 6(d) of the 2016 Plan, the expiration
of three (3) months from the date of an Optionee’s termination of employment or contractual relationship with the Company
or any affiliated company or subsidiary of the Company (a “Related Corporation”) for any reason whatsoever other than
termination of service for cause, death, Disability, or on or after a Change in Control.

 

Each unvested Option granted pursuant hereto
shall terminate immediately upon termination of the Optionee’s employment or contractual relationship with the Company for
any reason whatsoever, including Disability unless vesting is accelerated in accordance with the 2016 Plan.

 

7.             Stock.
In the case of any stock split, stock dividend or like change in the nature of shares of Stock covered by this Agreement, the number
of shares and exercise price shall be proportionately adjusted as set forth in Section 14(a) of the 2016 Plan.

 

8.             Exercise
of Option. Options shall be exercisable, in full or in part, at any time after vesting, until termination; provided, however,
that any Optionee who is subject to the reporting and liability provisions of Section 16 of the Securities Exchange Act of 1934,
as amended, with respect to the Common Stock shall be precluded from selling or transferring any Common Stock or other security
underlying an Option during the six (6) months immediately following the grant of that Option. If less than all of the shares included
in the vested portion of any Option are purchased, the remainder may be purchased at any subsequent time prior to the expiration
of the Option term. Only whole shares may be issued pursuant to an Option, and to the extent that an Option covers less than one
(1) share, it is unexercisable.

 

Each exercise of the Option shall be by
means of delivery of a notice of election to exercise (which may be in the form attached hereto as Exhibit B) to the Chief
Financial Officer of the Company at its principal executive office, specifying the number of shares of Common Stock to be purchased
and accompanied by payment in cash by certified check or cashier’s check in the amount of the full exercise price for the
Common Stock to be purchased. In addition to payment in cash by certified check or cashier’s check, an Optionee or transferee
of an Option may pay for all or any portion of the aggregate exercise price by complying with one or more of the following alternatives:

 

		(a)	by delivering to the Company shares of Common Stock previously held by such person, duly endorsed
for transfer to the Company, or by the Company withholding shares of Common Stock otherwise deliverable pursuant to exercise of
the Option, which shares of Common Stock received or withheld shall have a fair market value at the date of exercise (as determined
by the Administrator) equal to the aggregate purchase price to be paid by the Optionee upon such exercise; or

 

		(b)	by complying with any other payment mechanism approved by the Administrator at the time of exercise.

 

It is a condition precedent to the issuance
of shares of Common Stock that the Optionee execute and/or deliver to the Company all documents and withholding taxes required
in accordance with Section 15 of the 2016 Plan.

 

9.             Holding
period for Incentive Stock Options. In order to obtain the tax treatment provided for Incentive Stock Options by Section 422
of the Code, the shares of Common Stock received upon exercising any Incentive Stock Options received pursuant to this Agreement
must be sold, if at all, after a date which is later of two (2) years from the date of this Agreement is entered into or one (1)
year from the date upon which the Options are exercised. The Optionee agrees to report sales of shares prior to the above determined
date to the Company within one (1) business day after such sale is concluded. The Optionee also agrees to pay to the Company, within
five (5) business days after such sale is concluded, the amount necessary for the Company to satisfy its withholding requirement
required by the Code. Nothing in this Section 9 is intended as a representation that Common Stock may be sold without registration
under state and federal securities laws or an exemption therefrom or that such registration or exemption will be available at any
specified time.

 

     

     

    

 

10.         Resale
restrictions may apply. Any resale of the shares of Common Stock received upon exercising any Options will be subject to resale
restrictions contained in the securities legislation applicable to the Optionee. The Optionee acknowledges and agrees that the
Optionee is solely responsible (and the Company is not in any way responsible) for compliance with applicable resale restrictions.

 

11.         Subject
to 2016 Plan. The terms of the Options are subject to the provisions of the 2016 Plan, as the same may from time to time be
amended, and any inconsistencies between this Agreement and the 2016 Plan, as the same may be from time to time amended, shall
be governed by the provisions of the 2016 Plan, a copy of which has been delivered to the Optionee, and which is available for
inspection at the principal offices of the Company.

 

12.         Professional
Advice. The acceptance of the Options and the sale of Common Stock issued pursuant to the exercise of Options may have consequences
under federal and state tax and securities laws which may vary depending upon the individual circumstances of the Optionee. Accordingly,
the Optionee acknowledges that he or she has been advised to consult his or her personal legal and tax advisor in connection with
this Agreement and his or her dealings with respect to Options. Without limiting other matters to be considered with the assistance
of the Optionee’s professional advisors, the Optionee should consider: (a) whether upon the exercise of Options, the Optionee
will file an election with the Internal Revenue Service pursuant to Section 83(b) of the Code and the implications of alternative
minimum tax pursuant to the Code; (b) the merits and risks of an investment in the underlying shares of Common Stock; and (c) any
resale restrictions that might apply under applicable securities laws.

 

13.         No
Employment Commitment. The grant of the Options shall in no way constitute any form of agreement or understanding binding on
the Company or any Related Company, express or implied, that the Company or any Related Company will employ or contract with the
Optionee, for any length of time, nor shall it interfere in any way with the Company’s or, where applicable, a Related Company’s
right to terminate Optionee’s employment at any time, which right is hereby reserved.

 

14.         Entire
Agreement. This Agreement is the only agreement between the Optionee and the Company with respect to the Options, and this
Agreement and the 2016 Plan supersede all prior and contemporaneous oral and written statements and representations and contain
the entire agreement between the parties with respect to the Options.

 

15.         Notices.
Any notice required or permitted to be made or given hereunder shall be mailed or delivered personally to the addresses set forth
below, or as changed from time to time by written notice to the other:

 

	The Company:	Loton, Corp.
	 	269 South Beverly Drive
	 	Beverly Hills, California 90212
	 	Attention: Chief Executive Officer

 

	With a copy to:	Foley Shechter, LLP
	 	129 W. 29th Street, 5th Floor
	 	New York, New York 10001
	 	Attention: Jonathan Shechter, Esq.

 

	The Optionee:	[name]
	 	[address]

 

LOTON, CORP.

 

	Per:	 	 
	 	Authorized Signatory	 

 

	(Name of Optionee - Please type or print)	 

 

	(Signature and, if applicable, Office)	 

 

     

     

    

 

EXHIBIT A

 

TERMS OF THE OPTION

 

	Name of the Optionee:	[__________]
	 	 
	Date of Grant:	[__________]
	 	 
	Designation:	Nonstatutory Stock Options
	 	 
	1.        Number of Options granted:	[__________] shares
	 	 
	2.        Purchase Price:	$[___] per share
	 	 
	3.        Vesting Dates:	[__________]
	 	 
	4.        Expiration Date:	[__________]

 

     

     

    

 

EXHIBIT B

 

		To:	Loton, Corp.

269 South Beverly Drive

Beverly Hills, California 90212

Attention: Chief Executive Officer

 

Notice of Election to Exercise

 

This Notice of Election to Exercise shall
constitute proper notice under the Loton, Corp.’s (the “Company”) 2016 Equity Incentive Plan (the “2016
Plan”) pursuant to Section 8 of that certain Stock Option Agreement (the “Agreement”) dated as of
the [___] day of [______], 201__, between the Company and the undersigned.

 

The undersigned hereby elects to exercise
Optionee’s option to purchase __________________ shares of the common stock of the Company at a price of US$[__] per share,
for aggregate consideration of US$__________, on the terms and conditions set forth in the Agreement and the 2016 Plan. Such aggregate
consideration, in the form specified in Section 8 of the Agreement, accompanies this notice.

 

The Optionee hereby directs the Company
to issue, register and deliver the certificates representing the shares as follows:

 

	Optionee Information:	 	Delivery Instructions:
	 	 	 
	Name to appear on certificates	 	Name
	 	 	 
	Address	 	Address
	 	 	 
	 	 	 
	 	 	 
	 	 	Telephone Number

 

DATED at ____________________________________, the _______ day
of ________________________, 201__.

 

	 	 
	 	(Name of Optionee - Please type or print)
	 	 
	 	 
	 	(Signature and, if applicable, Office)
	 	 
	 	 
	 	(Address of Optionee)
	 	 
	 	 
	 	(City, State, and Zip Code of Optionee)Exhibit 10.26

 

DATED 22 SEPTEMBER 2016

 

 

 

MR ROBERT ELLIN

 

MR OLIVER BENGOUGH

 

KOKO (CAMDEN) LIMITED

 

OBAR CAMDEN LIMITED

 

OBAR CAMDEN HOLDINGS LIMITED

 

GLOBAL LOAN AGENCY SERVICES LIMITED

 

-and-

 

LOTON CORP.

 

 

 

SETTLEMENT
AGREEMENT

 

 

 

Akin Gump LLP

Eighth Floor

Ten Bishops Square

London, E1 6EG

020 7012 9600

 

     

     

    

 

THIS AGREEMENT (“Agreement”) is made on
22 September 2016

 

BETWEEN:

 

		(1)	MR ROBERT ELLIN of c/o 269 South Beverly Drive, Suite #1450, Beverly Hills, CA 90212, USA
(“RE”)

 

		(2)	MR OLIVER BENGOUGH of Flat 3, Hans Place, Kensington, London SW1X 0LA (“OB”)

 

		(3)	KOKO (CAMDEN) LIMITED of 5th Floor, 89 New Bond Street, London W1S 1DA (“KCL”)

 

		(4)	OBAR CAMDEN LIMITED of 191 Stonhouse Street, London SW4 6BB (“OCL”)

 

		(5)	OBAR CAMDEN HOLDINGS LIMITED of 191 Stonhouse Street, London SW4 6BB (“OCHL”)

 

		(6)	LOTON CORP. of 269 South Beverly Drive, Suite #1450, Beverly Hills, CA 90212, USA (“Loton”)

 

(each a “Party”
and together the “Parties”)

 

and

 

		(7)	GLOBAL LOAN AGENCY SERVICES LIMITED of 45 Ludgate Hill, London EC4M 7JU (the “Escrow
Agent”),

 

WHEREAS

 

		(A)	On 20 May 2016, OB issued a petition for relief before the English court under, inter alia, section
994 of the Companies Act 2006 (Claim Number - CR-2016-002756) raising a number of allegations and issues concerning the Parties
to this Agreement and pursuant to which OB sought an interim injunction (the “Petition”).

 

		(B)	Pursuant to a promissory note dated 28 April 2014, OCHL and OCL are jointly liable to Loton for
the principal amount of US$494,749 and interest at 8%. This liability is disputed by OB.

 

		(C)	The Parties to this Agreement have agreed to the following terms of settlement in relation to all
facts, matters and allegations raised by the Petition as set out below and in relation to certain ancillary matters arising from
the past business dealings between RE and OB.

 

    	 	2	 

     

    

 

These
recitals are intended to be binding.

 

In consideration
of the mutual agreements and promises set out below it is agreed as follows:

 

		1.	DEFINITIONS AND INTERPRETATION

 

		1.1	In this Agreement, unless the context otherwise requires, the following words and expressions have
the following meanings:

 

“Business Day”
means a day (other than a Saturday or a Sunday) on which banks are open for general business in London.

 

“Claims”
means any action, litigation, claim, potential claim, counterclaim, potential counterclaim, right of set-off or potential right
of set-off, right of contribution, potential right of contribution, right to indemnity, cause of action, potential cause of action
or right or interest of any kind or nature whatsoever, whether civil or criminal or regulatory or any other form of dispute, whether
in existence now or coming into existence at some time in the future, whether known or unknown, suspected or unsuspected, however
and whenever arising, brought or initiated in any Court or other tribunal of competent jurisdiction, whether or not within the
contemplation of the Parties at the time of this Agreement, including claims which as a matter of law did not at the date of this
Agreement exist and whose existence cannot currently be foreseen and any claims or rights of action arising from a subsequent change
or clarification of the law, which the Parties have or could have against each other arising out of or in connection with the Petition,
the Shareholders’ Agreement, the operation and management of OCHL or OCL, the Loton Note, OB’s directorship of Loton,
or any other transaction document entered into in connection with the Shareholders Agreement, the Loton Note or the transactions
contemplated thereby;

 

"Completion Payment
Cut-Off Date" means the date falling 7 Business Days after the date on which BTG Financial Consulting LLP sends by email
its final valuation report in respect of the value of the ordinary shares of OCHL (which report will specify the Completion Payment)
to OB, RE and the Escrow Agent;

 

“Deed of Charge”
means the deed of charge over the shares in OCHL entered into between KCL and OB on the date of this Agreement;

 

“Director’s
Resignation Letter” has the meaning given to it in the Escrow Agreement;

 

“Encumbrance”
means any mortgage, claim, charge, pledge, lien, lease, hypothecation, guarantee, right of set-off, trust, assignment, right
of first refusal, right of pre-emption, option, restriction, order, judgment, defect in title, or other encumbrance or any legal
or equitable third party right or interest, including security of any kind or any type of preferential payment (or any like agreement
or arrangement creating any of the same or having similar effect).

 

“Escrow Account”
has the meaning given to it in the Escrow Agreement;

 

“Escrow Agreement”
means the escrow agreement entered into between the Parties and the Escrow Agent on the date of this Agreement;

 

“Intellectual Property”
means: (i) the name KOKO, (ii) KOKO’s logo, and (iii) any related branding.

 

    	 	3	 

     

    

 

“Intellectual Property
Rights” means all intellectual property rights belonging to OCHL and OCL (individually and collectively) including but
not limited to any of the following: patents, copyright and related rights, moral rights, trademarks (and service marks), business
names and domain names, rights in get-up (and trade dress), goodwill and right to sue for passing off (or unfair competition),
rights in designs, rights in computer software database rights, rights to use and protect the confidentiality of, confidential
information (including know-how and trade secrets), and all other intellectual property rights, in each case whether registered
or unregistered and including all applications for any of the intellectual property rights mentioned above and rights to apply
for and be granted, renewals or extensions of, and rights to claim priority from, such rights and all similar or equivalent rights
or forms of protection which subsist or will subsist now or in the future in any part of the world.

 

“KCL NM01”
has the meaning given to it in the Escrow Agreement.

 

“KCL Written Resolution”
has the meaning given to it in the Escrow Agreement.

 

“Loton Note”
means the promissory note dated 28 April 2014 pursuant which OCHL and OCL became jointly liable to Loton for the principal amount
of US$494,749 and interest at 8%;

 

“NED Authority Letter”
has the meaning given to it in the Escrow Agreement;

 

“NED Director’s
Resignation Letter” has the meaning given to it in the Escrow Agreement;

 

“OB Related Parties”
means any companies or entities connected, owned or controlled directly or indirectly, legally or beneficially by OB (including
Mint Group Holdings Ltd, its subsidiaries, directors, affiliates, employees and shareholders) and any employees, representatives,
agents, officers or directors of any companies or entities owned or controlled directly or indirectly, legally or beneficially
by OB;

 

“OB Shareholding”
means the 48,878 ordinary shares and the 2,750 deferred ordinary shares in OCHL held by OB;

 

“OB Share Certificates”
means the share certificates issued by OCHL in connection with the OB Shareholding;

 

“OB Stock Transfer
Forms” means the duly executed and irrevocable instrument of transfer in relation to the OB Shareholding, but with the
name of the transferee and the date left blank;

 

“RE Related Parties”
means any companies or entities connected, owned or controlled directly or indirectly, legally or beneficially by RE and any representatives,
agents, officers or directors of any companies or entities owned or controlled directly or indirectly, legally or beneficially
by RE;

 

“RE Shareholding”
means the 48,878 ordinary shares and the 2,750 deferred ordinary shares in OCHL held by KCL;

 

“RE Share Certificates”
means the share certificates issued by OCHL in connection with the RE Shareholding;

 

    	 	4	 

     

    

 

“RE Stock Transfer
Forms” means the duly executed and irrevocable instrument of transfer in relation to the RE Shareholding, but with the
name of the transferee and the date left blank;

 

“Related Parties”
means a Party’s parent company, subsidiary company, assignee, transferee, representative, legal representative, principal
agent, family member or any officer, director, employee, worker of a Party of any Party’s parent company or subsidiary;

 

“Respondents”
means OCHL, OCL, RE and Loton;

 

“Shareholders Agreement”
means the agreement dated 12 February 2014 between OB, RE, Loton and JJAT Corporation as later varied by the Variation Agreement
dated 24 April 2014; and

 

“Tax” means
any tax, levy, impost, duty or other charge, fee, deduction or withholding of a similar nature in any jurisdiction, including national
insurance contributions, (including any penalty, surcharge or interest payable in connection with the failure to pay, or delay
in paying of these).

 

		1.2	A reference to shares or ordinary shares in this Agreement shall mean all ordinary shares including
any deferred ordinary shares.

 

		2.	AUTHORITY

 

		2.1	Each Party warrants and represents to the other that it has the right, power and authority to enter
into and perform this Settlement Agreement.

 

		2.2	The signatories warrant that they have full authority to enter into this Settlement Agreement and
bind the Party they represent.

 

		3.	EFFECT OF THIS AGREEMENT

 

The
Parties hereby agree that upon the execution of this Agreement by all of them, the terms of this Agreement shall be immediately,
effectively and irrevocably binding upon them. 

 

		4.	SETTLEMENT OF THE PETITION AND RELEASES

 

		4.1	In consideration of the mutual obligations set out in this Agreement, the Parties hereby agree
the following. Forthwith upon execution of this Agreement, OB shall withdraw the Petition with no order as to costs. OB and the
Respondents waive any rights they may have to costs or legal fees in connection with the Petition and respectively agree not to
seek or enforce any order for costs against each other.

 

		4.2	RE and all RE Related Parties:

 

		(a)	agree that no sums are due and owing from OB or any of the OB Related Parties to RE and RE Related
Parties;

 

		(b)	fully release and forever discharge OB and all of the OB Related Parties from all or any Claims;
and

 

    	 	5	 

     

    

 

		(c)	waive any future Claims.

 

		4.3	OB and all OB Related Parties:

 

		(a)	fully release and forever discharge RE and each of the RE Related Parties from all or any Claims;
and

 

		(b)	waive any future Claims.

 

(Collectively the “Released Claims”)

 

		5.	TERMS OF SETTLEMENT

 

		5.1	The provisions of clauses 4.2 and 4.3 above and clause 8 below are conditional upon the provisions
of this clause 5 being effectively implemented and complied with.

 

		5.2	Upon the date of this Agreement, the following will occur:

 

		(a)	OB and RE will forthwith procure that BTG Financial Consulting LLP (“Begbies Traynor”)
is instructed to carry out an independent expert valuation of the ordinary shares in OCHL on the terms set out in the draft engagement
letter appearing at Annex 1 to this Agreement. Begbies Traynor shall be instructed to conduct the independent valuation as speedily
as possible consistent with a fair valuation on the following bases and assumptions:

 

		(i)	the business of OCHL shall continue as a going concern;

 

		(ii)	any sale of the RE Shareholding is to be on arm’s length terms between a willing seller and
a willing buyer; and

 

		(iii)	the RE Shareholding is to be sold free of any Encumbrance.

 

The costs
of the valuation shall be borne by OCL (provided that such cost is not be taken into account in the valuation itself);

 

		(b)	OB and RE shall act in good faith in the provision of any information and documentation to, and
in any dealings with, Begbies Traynor to enable the valuation to be carried out. Any information and/or documentation that is provided
by OB and RE to Begbies Traynor shall be to the best of each Party’s knowledge accurate and complete.

 

		(c)	OB shall within 5 Business Days credit the sum of £1,272,265 in cleared funds (the “Escrow
Amount”) to the Escrow Account on the terms set out in the Escrow Agreement;

 

		(d)	OB shall provide security to and for the benefit of KCL over the OB Shareholding to secure OB’s
payment obligations to KCL on the terms set out in the Deed of Charge;

 

		(e)	OB shall within 5 Business Days deliver the OB Share Certificates, the OB Stock Transfer Forms,
the NED Director’s Resignation Letter, the NED Authority Letter and the Director’s Resignation Letter to the Escrow
Agent on the terms set out in the Escrow Agreement; and

 

    	 	6	 

     

    

 

		(f)	RE shall (or RE shall procure that KCL will) within 5 Business Days deliver the RE Share Certificates,
the RE Stock Transfer Forms, the KCL Written Resolution and the KCL NM01 to the Escrow Agent on the terms set out in the Escrow
Agreement.

 

		5.3	Although headed 'Without prejudice save as to costs', 'Subject to contract' and 'Confidential',
on signature of this Settlement Agreement by all the parties it shall (subject only to the provisions of this Settlement Agreement)
become a binding agreement between them in settlement of the Claims.

 

		6.	ESCROW ARRANGEMENTS

 

		6.1	The arrangements relating to the escrowing of the Escrow Amount, resignation and authority letters,
share certificates and/or stock transfer forms described in paragraph 5.2(c)-(f) will be set out in the Escrow Agreement.

 

		6.2	The Escrow Agent is a party to this Agreement for information purposes only and shall have no obligations
under this Agreement.

 

		6.3	The Escrow Amount, resignation and authority letters, share certificates, stock transfer forms
which have been credited to the Escrow Account or delivered to the Escrow Agent will be released from escrow in accordance with
the terms of the Escrow Agreement.

 

		7.	COMPLETION ARRANGEMENTS

 

		7.1	In accordance with the terms of its engagement, Begbies Traynor will be required to send, forthwith
upon completion of the independent valuation, its final independent valuation report to OB, RE and the Escrow Agent and in that
report notify them of the “Completion Payment” which will be an amount equal to (i) 50% of the value of the
ordinary shares in OCHL less (ii) £37,000.

 

		7.2	By no later than the Completion Payment Cut-Off Date, OB shall ensure that KCL is in receipt of
cleared funds to the value of the Completion Payment, subject to the following:

 

		(a)	if the Completion Payment is less than the Escrow Amount (namely £1,272,265), an amount equal
to the Completion Payment will be paid to KCL subject to and in accordance with the terms of the Escrow Agreement to an account
specified by RE out of the funds standing to the credit of the Escrow Account; or

 

		(b)	if the Completion Payment is equal to or more than the Escrow Amount, the full amount then standing
to the credit of the Escrow Account will be paid to KCL subject to and in accordance with the terms of the Escrow Agreement, and
OB shall (also within the same 7 Business Days' period) pay an amount equal to the difference between the Completion Payment and
the Escrow Amount to the Escrow Account with such sum then to be paid by the Escrow Agent to an account specified by RE,

 

    	 	7	 

     

    

 

such that
in either case KCL has received the Completion Payment in full by the Completion Payment Cut-Off Date.

 

		8.	DISCHARGE OF THE LOTON NOTE

 

		8.1	Loton confirms and acknowledges that in consideration for the abandonment by OB of any claim to
costs in relation to the Petition as provided in clause 8.2 below, Loton shall treat any rights to payment by OB, OCL and OCHL
under the Loton Note as having been fully discharged and satisfied.

 

		8.2	OB confirms and acknowledges that in consideration for (a) the discharge of the Loton Note provided
for in clause 8.1 above; and (b) the deduction of £37,000 as described in clause 7.1 above, he will abandon all and any claim
for costs incurred in relation to the Petition.

 

		9.	AGREEMENT NOT TO SUE

 

		9.1	Each Party agrees, on behalf of itself and on behalf of its Related Parties not to sue, commence,
voluntarily aid in any way, prosecute or cause to be commenced or prosecuted against the other Party or its Related Parties in
any action, suit or other proceedings concerning the Released Claims, in this jurisdiction or any other.

 

		9.2	Clauses 3 and 9.1 shall not apply to, and the Released
Claims shall not include, any claims in respect of any breach of this Agreement.

 

		10.	COSTS

 

Each Party
shall bear its own costs incurred in connection with this Agreement.

 

		11.	WARRANTIES AND AUTHORITY

 

		11.1	Each Party warrants and represents that it has not sold, transferred, assigned or otherwise disposed
of its interests in the Released Claims.

 

		11.2	Each Party warrants and represents to the other that it or he has full authority to execute, deliver
and perform this Agreement and that each respective signatory has taken all necessary steps to obtain authorization to sign this
Agreement on behalf of that Party.

 

		11.3	KCL and RE each warrants and represents that the shares comprising the RE Shareholding are sold
with full title guarantee free from all Encumbrances together with all rights attached thereto.

 

		12.	INDEMNITIES

 

Each
Party hereby indemnifies, and shall keep indemnified, the other Party against all costs and damages (including the entire legal
expenses of the Parties) incurred in any and all future actions, claims and proceedings in respect of any of the Released Claims
which it or its Related Parties or any of them may bring against the other Party or its Related Parties or any of them or arising
from any breach of this agreement.

 

    	 	8	 

     

    

 

		13.	NO ADMISSION

 

This Agreement
is entered into as a commercial compromise amongst the Parties and nothing in this Agreement or negotiations leading up to it shall
in any way be construed as an admission of liability or wrongdoing by any Party.

 

		14.	INTELLECTUAL PROPERTY RIGHTS

 

		14.1	RE or any RE Related Parties will not use for his or their own purpose or benefit or for the benefit
of any third party, or disclose or make available in whole or in part to any third party (and shall use all reasonable endeavors
to prevent any disclosure of) any Intellectual Property and Intellectual Property Rights.

 

		14.2	RE or any RE Related Parties will take no action whatsoever which could adversely impact upon the
protection of the Intellectual Property and/or which could create any Encumbrance in respect of the Intellectual Property.

 

		14.3	OB or any OB Related Parties will not bring or issue any legal proceedings against RE or any RE
Related Parties in respect of RE or RE Related Parties’ alleged historic use of the Intellectual Property.

 

		14.4	Each of RE and KCL shall procure that no resolution of the shareholders of KCL is proposed or passed
to change the name of KCL (other than in accordance with the KCL Written Resolution) until the earlier to occur of:

 

		(a)	the Completion Payment Cut-Off Date has passed and the Completion Payment has not been made; and

 

		(b)	the date that the Registrar of Companies has issued a Certificate of Incorporation Upon Change
of Name changing the name of KCL to "LiveXLive International Limited" following the delivery by OB of the KCL NM01 and
the KCL Written Resolution to the Registrar of Companies.

 

		14.5	KCL authorises OB to date the KCL Written Resolution and the KCL NM01 and submit the same to the
Registrar of Companies on behalf of KCL.

 

		15.	CONFIDENTIALITY

 

		15.1	The terms of this Agreement, and the substance of all negotiations in connection with it, are confidential
to the Parties and their advisers, who shall not disclose them to, or otherwise communicate them to, any third party other than:

 

		(a)	to the Parties’ respective auditors, insurers and lawyers on terms which preserve confidentiality;

 

		(b)	pursuant to an order of a court of competent jurisdiction, or pursuant to any proper order or demand
made by any competent authority or body where they are under a legal obligation to make such a disclosure;

 

		(c)	where required by law or by a regulatory authority; and

 

		(d)	as far as necessary to implement and enforce any of the terms of this Agreement.

 

    	 	9	 

     

    

 

		15.2	The Parties undertake not to directly or indirectly make or publish any statement, release or announcement
of any kind or otherwise directly or indirectly release publicly to any third party any information concerning the Released Claims
and this Agreement save as required by law.

 

		15.3	The Parties shall not distribute, publicise, comment upon or otherwise convey or disseminate in
any way, directly or indirectly (whether orally or in writing, by social media, online or through others acting on their behalf)
any material or allegations which relate to or concern any of the Released Claims or any allegations set out in the Claims or the
matters referred to in the contents of this Agreement save as required by law.

 

The Parties are entitled to
confirm the fact of, but not the terms of, settlement of this dispute.

 

		16.	TAX

 

Each Party shall be responsible
for any Tax arising in connection with its performance of this Agreement.

 

		17.	ALTERNATIVE DISPUTE RESOLUTION

 

		17.1	If any claim or dispute arises under or in connection with this Settlement Agreement or
any other issue arises between the Parties (or any of them), the Parties agree to attempt to settle such claim, dispute
or issue by negotiation.

 

		17.2	The Parties (and each of them) agree to give the other Party or Parties written notice (copied
to their respective solicitors) of any such claim, dispute or issue providing a reasonable explanation of the claim, dispute or
issue and the steps required to remedy it.

 

		17.3	If any such claim, dispute or issue cannot be settled by negotiation within 21
days after such written notice the Parties shall, before resorting to court or regulatory proceedings, attempt to resolve the claim,
dispute or issue by mediation in England in accordance with
the Centre for Dispute Resolution (CEDR) model mediation procedure or otherwise as agreed between the Parties.

 

		18.	INVALIDITY

 

If any or any
part of any provision of this Agreement shall be or become illegal, invalid or unenforceable then that provision shall be deemed
to be deleted from this Agreement and the remaining provisions of this Agreement shall continue in full force and effect and the
Parties shall use their respective reasonable endeavors to procure that any such provision is replaced by a provision which is
legal, valid and enforceable, and which gives effect to the spirit and intent of this Agreement.

 

		19.	AMENDMENTS

 

No amendments
or variations of the terms of this Agreement shall be effective unless it is made or confirmed in a written document signed by
the Parties.

 

    	 	10	 

     

    

 

		20.	ENTIRE AGREEMENT

 

		20.1	This Agreement constitutes the entire agreement between the Parties in relation to the settlement
of the matters set out herein and supersedes and extinguishes all previous agreements, promises, assurances, warranties, representations
and understandings between them, whether written or oral, relating to its subject matter.

 

		20.2	Each Party agrees that is shall have no remedies in respect of any statement, representation, assurance
or warranty (whether made innocently or negligently) that is not set out in this Agreement. Each Party agrees that is shall have
no claims (save for those arising in fraud) based on any statement signed in this Agreement.

 

		21.	THIRD PARTY RIGHTS

 

A
person or entity who is not a party to this Agreement shall not have any rights under the Contracts (Rights of Third Parties) Act
1999 to enforce any term of this Agreement.

 

		22.	COUNTERPARTS

 

		22.1	This Agreement may be executed in any number of counterparts, each of which when executed and delivered
shall constitute a duplicate original, but all the counterparts shall together constitute the one agreement.

 

		22.2	Transmission of an executed counterpart of this Agreement by e-mail shall take effect as delivery
of an executed counterpart of this Agreement. If delivery by email is adopted, without prejudice to the validity of the Agreement
thus made, each Party shall provide the other with the original of such counterpart as soon as reasonably practicable after execution.

 

		22.3	No counterpart shall be effective until each Party has executed and delivered at least one counterpart.

 

		23.	FURTHER ACTIONS

 

At any time
after the date of this Agreement the Parties shall execute such documents and do any such other acts and things as may be required
for the purposes of giving full effect to the provisions of this Agreement.

 

		24.	GOVERNING LAW AND JURISDICTION

 

This Agreement
and any non-contractual obligations arising out of or in connection with it or the subject matter of this Agreement shall be governed
by and construed in accordance with the law of England and Wales. Subject to clause 17 above, the Parties irrevocably submit to
the exclusive jurisdiction of the Courts of England and Wales as regards any claims, disputes or matters arising out or relating
to this Agreement including (without limitation) questions of validity, implementation or effect.

 

IN WITNESS WHEREOF this Agreement has been entered into
on the day and year first above written.

 

    	 	11	 

     

    

 

Signatories

 

	MR ROBERT ELLIN	 
	 	 
	/s/ Robert Ellin	 
	 	 
	KOKO (CAMDEN) LIMITED	 
	 	 	 
	By:	/s/ Robert Ellin	 
	 	 	 
	Name:	Robert Ellin	 
	 	 	 
	Title:	Director	 
	 	 	 
	LOTON, CORP.	 
	 	 	 
	By: 	/s/ Robert Ellin	 
	 	 	 
	Name:	Robert Ellin	 
	 	 	 
	Title:	Executive Chairman and President	 

 

Signature page to the Settlement Agreement

 

     

     

    

 

	MR OLIVER BENGOUGH	 
	 	 
	/s/ Oliver Bengough	 
	 	 
	OBAR CAMDEN LIMITED	 
	 	 	 
	By:	/s/ Oliver Bengough	 
	 	 	 
	Name:	Oliver Bengough	 
	 	 	 
	Title:	Director	 
	 	 	 
	OBAR CAMDEN HOLDINGS LIMITED	 
	 	 	 
	By:	/s/ Oliver Bengough	 
	 	 	 
	Name:	Oliver Bengough	 
	 	 	 
	Title:	Director	 
	 	 	 
	GLOBAL LOAN AGENCY SERVICES LIMITED	 
	 	 	 
	By:	/s/ Iva Bardhi	 
	 	 	 
	Name:	Iva Bardhi	 
	 	 	 
	Title:	Transaction Manager	 

 

Signature page to the Settlement Agreement

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