Document:

LEAK-OUT
AGREEMENT

 

This
LEAK-OUT
AGREEMENT
(hereinafter
the “Agreement”)
is made and entered
into as of this 23rd day
of June, 2017 (hereinafter
the “Effective Date”),
by and between
Auctus
Fund, LLC
(hereinafter
“Auctus”
or the “Fund”)
and Textmunication
Holdings,
Inc. (hereinafter
“TXHD” or the “Company”).
The Fund includes
any affiliate
or controlling
person of Auctus,
and any
other agent,
representative
or other person
with whom the Fund
is acting in concert.

 

RECITALS

 

A.
The Fund
and the Company
have entered
into a Securities
Purchase
Agreement,
dated July
22, 2016 by and between
the Fund and the Company
(hereinafter
the “SPA”
or the “Purchase
Agreement”),
pursuant to which
the Fund purchased
a certain
Convertible Promissory
Note issued on July
22, 2016, in the principal
amount of $237,750.00 (hereinafter
the “Note”);

 

B.
Pursuant
to that certain
Settlement
and Mutual
General Release
Agreement
(hereinafter
the “Settlement
Agreement”),
by and between
the Fund and the
Company,
dated as
of even date
herewith, Fund
has agreed
to enter into this Agreement,
which shall
restrict
the public sale, assignment,
transfer,
conveyance,
hypothecation
or alienation
of all shares
of the Company’s
common stock issuable
upon conversion
of the Note (hereinafter
the foregoing
shares, collectively,
the “Shares”).

 

AGREEMENT

 

NOW,
THEREFORE,
in consideration of the foregoing
premises
and of the mutual covenants
contained
herein,
the receipt
and sufficiency
of which
are hereby
acknowledged,
the parties hereby
agree
as follows:

 

1.
Except
as otherwise expressly
provided
herein, and provided
that the Company
has not breached
any of
the provisions of the Settlement
Agreement,
commencing
on the execution
and delivery
of this Agreement
and ending on November
23, 2017 (the “Leak-Out
Period”), Fund may
only publicly
sell its Shares acquired
through the conversion
of the Note, subject
to the following conditions:

 

1.1
At any
time during the Leak-Out
Period, Fund may
publicly sell
daily the greater
of 4,910,714 shares or 20% of the average
daily trading
volume over the prior 10-day
trading period.

 

1.2
All Shares subject
to this Agreement
will be subject to irrevocable
instructions delivered
to the Transfer
Agent,
as defined
in the Settlement
Agreement,
concurrently
herewith
in form and
substance
satisfactory to the Fund
to ensure prompt
compliance
with the terms
of this Agreement,
including providing for
releases
of the Shares
or removal
of legends as
set forth
in such instructions.
Such instructions
will include a direction
requiring
the transfer
agent to deliver
to each party
to this Agreement
upon request a report
setting forth
the shareholdings
of each
party hereto
and any transfers
of such shares that
may have occurred.

 

    	 	1	 

    	 

    

 

1.3
The Fund agrees
that it will not, directly
or indirectly,
engage
in any short
selling, hypothecation
of Shares or by any
other manner
or method sell
or lend Shares that
would be averse
to the publicly
traded
shares
of Company during
the Leak-Out
Period.

 

1.4
Any transferee
of any of the
Shares
covered
by this Agreement,
other than purchaser
transactions
permitted under
a waiver
by the Company
pursuant
to Section 2 or purchaser
transactions in the open
market, shall
be subject to all of the terms
and conditions of this Agreement,
including, without limitation,
all restrictions
on the resale of such
Shares, and for
all such purposes,
any such
transferee
shall be a “Fund”
as defined
herein.

 

1.5
Any purported
transfer of Shares
in violation of this Agreement
shall be void and
of no force
or effect, and
no such transfer
shall be made or
recorded
on the books of the Company.

 

2.
Notwithstanding
anything
to the contrary
set forth
herein, the Company
may, in its sole discretion
and in good
faith, at any
time and from
time to time, waive
any of
the conditions or restrictions
contained
herein.

 

3.
In the event
of: (a)
a completed
tender offer
to purchase
all or substantially
all of the Company’s
issued and outstanding
securities;
or (b) a merger,
consolidation or other
reorganization
of the Company with
or into an unaffiliated
entity,
then this Agreement
shall terminate
as of the closing of such
transaction
and the Shares restricted
pursuant hereby
shall be released
from such restrictions.

 

4.
Except
as otherwise provided
in this Agreement
or any other
agreements
between the parties
hereto, the
Fund shall
be entitled to its respective
beneficial
rights
of ownership
of the Shares, including the
right to vote the Shares
for any
and all purposes.

 

5.
All notices and
other communications
hereunder
shall be in writing
and shall be
acceptable
if (a) delivered
personally
or by telecopy,
or (b) if sent by
registered
or certified
mail (return
receipt
requested)
and postage
prepaid,
or (c)
if sent by reputable
overnight
courier,
so long as the parties
to this Agreement
receive
such notices at
the addresses
set forth
in the Agreement
or at such other
address for
a party
as shall be specified
by like notice.
All notices shall
be deemed to be
given
on the same day if delivered
by hand
or telecopy
or on the following
business day if sent
by overnight
delivery
or the second business
day following the date
of mailing.

 

6.
The resale
restrictions
on the Shares set forth
in this Agreement
shall be in addition
to all other restrictions
on transfer imposed
by applicable
United States
and state securities
laws, rules
and regulations.

 

7.
If the Company
or Fund fails to fully
adhere
to the terms and conditions
of this Agreement,
such party
shall be liable to the other
party hereto
for any
damages
suffered
by any
party hereto
by reason
of any such
breach of the
terms and
conditions hereof.
Fund agrees
that in the event
of a breach
of any of
the terms and conditions
of this Agreement
by Fund, that
in addition to all other
remedies
that may be available
in law or in equity
to the non-defaulting
parties, the non-defaulting
party
may seek a preliminary
and permanent
injunction, without
bond or surety, and
an order
of a court
requiring
such defaulting
Fund to cease
and desist
from violating the terms
and conditions of this Agreement
and specifically
requiring
such Fund to perform
his/her/its obligations
hereunder is fair
and reasonable
by reason
of the inability of the parties
to this Agreement
to presently
determine
the type,
extent
or amount of damages
that the Company
or its other shareholders
may suffer
as a result of any
breach or
continuation thereof.

 

    	 	2	 

    	 

    

 

8.
This Agreement
sets forth
the entire understanding
of the parties
hereto with respect
to the subject matter
hereof,
and may not
be amended
except
by a written
instrument executed
by the parties
hereto.

 

9.
This Agreement
shall be governed
by and construed
in accordance
with the laws
of the State of Nevada.
Any action
brought
by either
party hereto
against
the other concerning
this Agreement
shall be brought
only in the federal
or state courts
of the Commonwealth of Massachusetts,
sitting in Boston, Suffolk County,
the Commonwealth of Massachusetts.
In the event of default
hereunder,
the non-defaulting
party shall
be entitled
to recover
reasonable
attorney’s
fees and
costs incurred
in the enforcement
of this Agreement.

 

10.
The Parties
each represent
that before
executing
this Agreement
each Party
has had
the opportunity to consult
with competent
legal
counsel of its own
choosing, carefully
read the Agreement,
and has been
fully and
fairly
advised as
to its terms. The Parties
hereto agree
that any
rule of law
or decision
that would require
interpretation
of any claimed
ambiguities
in this Agreement
against
the Party that
drafted
it has no application
and is expressly
waived.

 

11.
This Agreement
may be executed
in multiple counterparts,
each
of which shall
be deemed an
original
for all purposes
and all of which
shall be deemed,
collectively,
one agreement.
The parties
hereto, and
their respective
successors and
assigns,
are hereby
authorized
to rely upon the signature
of each
person on this Agreement,
which are
delivered
by facsimile,
electronic
signature
or scanned
electronic
e-mail attachment,
as constituting a duly
authorized,
irrevocable,
actual,
current
delivery of this Agreement
with original
ink signatures
of each
such person. Signatures
of the parties transmitted
by facsimile
or scanned e-mail
attachment
shall be deemed
to be their original
signatures
for all purposes.
This Agreement
shall become effective
when executed
and delivered
by the parties
hereto.

 

12.
In case
any one or more
of the provision contained
in this Agreement
is for any
reason held to be invalid,
illegal
or unenforceable
in any respect,
such invalidity,
illegality
or unenforceability
shall not affect
any other
provision of this Agreement,
and such
invalid, illegal
or unenforceable
provision shall
be reformed
and construed
so that it will be valid,
legal
and enforceable
to the maximum extent
permitted by
law.

 

    	 	3	 

    	 

    

 

IN
WITNESS
WHEREOF,
the undersigned
have duly executed
and delivered
this Leak- Out
Agreement
as of the day and
year
first above
written.

 

	 	TEXTMUNICATION
    HOLDINGS,
    INC., (the Company)
	 	a
    Nevada corporation
	 	 	 
	 	By:	
	 	 	 
	 	Its:	CEO
	 	 	Wais
    Asefi, CEO
	 	 	 
	 	AUCTUS
    FUND, LLC (the Fund)
	 	a
    Delaware
    limited
    liability company
	 	 	 
	 	By	
	 	Its:	Alfred
    J Sollami Manager
	 	 	[Name
    and Title]

 

    	 	4Exhibit 10.1

 

 

 

VIA EMAIL ONLY

 

June 29, 2017

 

Michael Abecassis, M.D.

1975 Keats Court

Highland Park, IL 60035

 

Re:Director Offer Letter

 

Dear Mike:

 

This letter
constitutes an agreement (“Agreement”) between you and PharmaCyte Biotech (“Company”) and
contains all the terms and conditions relating to your service to the Company as a member of our Board of Directors (“Board”).

 

1.       Term.
This Agreement will become effective July 3, 2017 (“Effective Date”) and continue until your resignation
or removal from the Board, or until your successor is duly elected and qualified. Your position will be subject to re-election
each year at the annual shareholders’ meeting and, upon re-election, the terms and provisions of this Agreement will remain
in full force and effect.

 

2.        Services.

 

2.1.     Duties. You shall render services as a member of the Board in accordance
with high professional and ethical standards and in accordance with all applicable laws, rules and regulations pertaining to your
performance under this Agreement. You shall use your best efforts to attend all meetings of the Board called from time to time,
either in-person or by telephone. You shall serve as member of the Audit Committee of the Board and shall use your best efforts
to attend meetings of the Audit Committee as required by its members pursuant to its Charter as may be called from time to time.
As an independent director, you may also be required to attend meetings with the other independent directors without the presence
of the Company’s officers and non-independent directors. The services described in this Section 2.1 are hereinafter referred
to as your “Duties.”

 

2.2.     Reporting. While this Agreement is in effect, you shall immediately advise
the Company if: (i) you know, have reason to know or believe that you are no longer independent; and (ii) you serve on an audit
committee of any other public company.

 

3.        Services
for Others. You are free to represent or perform services for other persons during the term of this Agreement. You represent,
however, that you do not presently perform and do not intend to perform, during the term of this Agreement, similar duties or other
services for companies whose businesses are or would be in any way competitive with the Company (except for companies previously
disclosed by you to the Company in writing). Should you propose to perform similar duties or other services for any such company,
you agree to notify the Company in writing in advance (specifying the name of the organization for whom you propose to perform
such services) and to provide information to the Company sufficient to allow it to determine if performing such similar duties
or other services would conflict with your Duties.

 

4.        Compensation.

 

4.1.    Cash.
The Company will pay you cash compensation of $12,500 per quarter, payable in advance and pro-rated for periods of less than a
quarter. You will be reimbursed for reasonable expenses documented and incurred by you in performing your Duties, including travel
expenses for meetings you attend in-person.

 

 

 

 

    	 	1	 

     

    

 

4.2.    Equity
Grants. Commencing on the Effective Date and on each anniversary date of the Effective Date, you will be issued annually:
(i) 500,000 fully-paid, non-assessable shares of the Company’s restricted common stock (“Shares”); and
(ii) a five-year option to purchase 500,000 Shares at an exercise price equal to the fair market value of the Company’s common
stock on the date of the grant (“Option”). The Shares and the Option will be fully vested as of the date of
the grant. The Company will issue you a Stock Option Agreement to evidence the Option in the form typically used by the Company.

 

4.3.    Service
on Additional Board Committee. Should you be named to any additional committee of the Board, the Compensation Committee
of the Board will determine any additional compensation, if any, that you will receive for serving on such committee.

 

4.4.    Taxes. You are solely responsible
for taxes arising out of any compensation paid by the Company to you under this Agreement, and you understand that you will be
issued a U.S. Treasury Form 1099 for any compensation paid to you by the Company. The Company will comply with any tax or withholding
obligations as required by applicable law related to this Agreement.

 

5.        D&O
Insurance Policy. During the term of this Agreement, the Company will include you as
an insured under its existing director’s and officer’s insurance policy, with coverage determined annually by the Company
and the Board. 

 

6.        No Assignment.
Because of the personal nature of the services to be rendered by you, this Agreement may not be assigned by you.

 

7.        Confidential
Information; Non-Disclosure. In consideration of your access to the premises of the Company and/or you access to certain
confidential information of the Company, you hereby represent and agree as follows:

 

7.1.     Definition.
For purposes of this Agreement, the term “Confidential Information” means:

 

a.        Any
information the Company possesses that has been created, discovered, or developed by or for the Company and that has or could have
commercial value or utility in the business in which the Company is engaged;

 

b.        Any
information provided to the Board at or for meetings of the Board and any information relating to proceedings of the Board; or

 

c.        Any
information that is related to the business of the Company and is generally not known by non-Company personnel.

 

7.2.    Exclusions.
Notwithstanding the foregoing, the term Confidential Information does not include:

 

a.        Any information that becomes generally available to the public other than because of a breach of this Agreement, or any other
agreement requiring confidentiality between the Company and you;

 

b.         Information
received from a third party in rightful possession of such information who is not restricted from disclosing such information;
and

 

c.        Information
known by you prior to receipt of such information from the Company, which prior knowledge can be documented.

 

7.3     Documents.
You agree that, without the prior written consent of the Company, you will not remove from the Company's premises any notes, formulas,
programs, data, records, machines, or any other documents or items that in any manner contain or constitute Confidential Information,
nor will you make reproductions or copies of the same. If you receive any such documents or items by personal delivery from any
authorized personnel of the Company, you will be deemed to have received the express written consent of the Company. If you receive
any such documents or items, other than through personal delivery as described in the preceding sentence, you agree to inform the
Company promptly of your possession of such documents or items. You shall promptly return such documents or items, along with any
reproductions or copies, to the Company upon the Company's demand, upon termination of this Agreement or upon your termination
or Resignation (as defined in Section 8 below).

 

 

 

 

    	 	2	 

     

    

 

7.4.    No
Disclosure. You agree that you will hold in trust and confidence all Confidential Information and will not disclose to
others, directly or indirectly, any Confidential Information or anything relating to such information without the prior written
consent of the Company, except as maybe necessary in the course of your relationship with the Company. You further agree that you
will not use any Confidential Information other than in connection with your service as a member of the Board without the prior
written consent of the Company. The provisions of this Section 7.4 shall survive termination of this Agreement.

 

8.        Termination
and Resignation. Your membership on the Board may be terminated for any or no reason, except as provided in the Company’s
organizational documents or pursuant to applicable law. You may also terminate your membership on the Board for any or no reason
by delivering written notice of your resignation to the Company (“Resignation”). Such Resignation shall be effective
on the later of the date of its delivery or the date specified in the Resignation. Upon the effective date of the termination or
Resignation, your right to compensation under this Agreement will terminate, subject to the Company's obligations to pay you any
compensation that you have already earned and to reimburse you for approved expenses already incurred in connection with you performing
your Duties as of the effective date of such termination or Resignation.

 

9.        Not
an Employee. Nothing in this Agreement shall be construed as a contract of employment between you and the Company or as
a commitment on the part of the Company to retain you in any capacity, for any period of time or under any specific terms or conditions,
or to continue your service to the Company beyond any period.

 

10.     Governing
Law; Consent to Jurisdiction.  All questions with respect to the construction and/or enforcement of this Agreement, and
the rights and obligations of the parties hereunder, shall be determined in accordance with the laws of the State of California
applicable to agreements made and to be performed entirely in the State of California. The parties to this Agreement hereby consent
to the jurisdiction of the courts having jurisdiction over matters arising in California for any proceeding arising out of or relating
to this Agreement.

 

11.     Entire
Agreement; Amendment; Waiver; Counterparts. This Agreement expresses the entire understanding with respect to the subject
matter hereof and supersedes and terminates any prior oral or written agreements with respect to the subject matter hereof. Any
term of this Agreement may be amended and observance of any term of this Agreement may be waived only with the written consent
of the parties hereto. Waiver of any term or condition of this Agreement by any party shall not be construed as a waiver of any
subsequent breach or failure of the same term or condition or waiver of any other term or condition of this Agreement. The failure
of any party at any time to require performance by any other party of any provision of this Agreement shall not affect the right
of any such party to require future performance of such provision or any other provision of this Agreement. This Agreement may
be executed in separate counterparts each of which will be an original and all of which taken together will constitute one and
the same agreement, and may be executed using facsimiles of signatures, and a facsimile of a signature shall be deemed to be the
same, and equally enforceable, as an original of such signature.

 

 

[Signature
page follows]

 

 

 

 

    	 	3	 

     

    

 

This Agreement
has been executed and delivered by the undersigned and is made effective as of the Effective Date.

 

	 	Sincerely,
	 	 
	 	PharmaCyte Biotech, Inc.
	 	 
	 	 
	 	By:
    /s/ Kenneth L. Waggoner                         
	 	Name: Kenneth L. Waggoner
	 	
        Title: Chief Executive Officer

        President and General Counsel

Agreed and Accepted:

 

 

/s/ Michael Abecassis                            

Name: Michael Abecassis, M.D.

 

 

 

 

 

 

 

 

 

 

    	 	4

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