Document:

Exhibit: 10.1

 

SETTLEMENT AGREEMENT AND GENERAL RELEASE
OF ALL CLAIMS

 

This settlement agreement
containing a release of all claims (the "Agreement") is entered into as of August 7, 2014 by and between Truli Media
Group, Inc., an Oklahoma Corporation and its subsidiaries (“Truli”), Michael Jay Solomon, an individual and Chief Executive
Officer of Truli (“Solomon”) (collectively, Truli and Solomon are known as the “Released Parties”), on
the one hand, and the holders of Truli’s 12% convertible debentures (“Debentures”) who are signatories to this
agreement and who are listed on Schedule A hereto, (the “Holders”) (the “Holders” shall also
be known as the “Releasing Parties”), on the other hand. Collectively, the Released Parties and Releasing Parties are
sometimes referred to collectively as the “Parties”.

 

RECITALS

 

A.Whereas, on September
10, 2013, the Holders purchased Debentures in the aggregate amount of $501,337 (“Principal Value”) and in such individual
amounts as set forth opposite each respective Holder’s name listed in Schedule A attached hereto.

 

B.Whereas, Truli has
defaulted on the Debentures (“Default”).

 

C.Whereas, as a result
of the Default, the Holders become entitled to certain penalties and interest on the Debentures (“Penalties and Interest”).

 

D.Whereas, Truli has
previously paid the Holders an aggregate of $80,000 as a reduction in the Principal Value of the Debentures.

 

E.Whereas, the Holders
have previously agreed to waive $6,000 of Penalties and Interest pursuant to a forbearance agreement entered into between the Parties.

 

E.Whereas, as a result
of the Penalties and Interest, and taking into account the $80,000 payment made to reduce the Principal Value as well as the $6,000
waiver, the current outstanding balance of the Debentures is $780,513 (“Outstanding Amount”)

 

Whereas, in connection
with Debentures, the Holders were issued an aggregate of 25,066,850 common stock purchase warrants of Truli in such amounts as
set forth opposite their respective names on Schedule A, and subject to any adjustments having occurred prior to
the date of this Agreement (the “Warrants”).

 

F.Whereas, the Parties
desire to settle all claims between them as provided for herein.

 

NOW, THEREFORE, based on
each of the above factual Recitals, which are incorporated herein, and in consideration of the promises and covenants herein, the
Parties agree as follows:

 

1.Nature of Agreement.
This Agreement shall constitute a full settlement between the Released Parties and the Releasing Parties of all claims that are
alleged or could have been alleged against the Released Parties as a result of the transactions involving the Debentures, Warrants,
including but not limited to the Principal Value as well as all Penalties and Interest owed thereon, and any relationship or business
dealings between the Parties prior to the date of this Agreement.

 

    	 

    	 

    

 

2.Consideration
to be paid. As consideration and satisfaction of all claims arising with regard to the Parties, and in exchange for the Releasing
Parties’ exchange of the Warrants as provided for herein and cancelation of the Debentures, and any amounts due thereunder,
Truli shall pay the Holders an aggregate of $481,337, as payment in full of the Outstanding Amount, subject to the condition contained
herein, as follows:

 

(a)Truli shall make
a one-time payment of three hundred one thousand three hundred thirty seven dollars ($301,337) (“Initial Payment”)
to the Holders as provided for on Schedule A, within three days of the execution of this Agreement. This payment
shall be applied as a reduction in the Outstanding Amount. Additionally, upon making the Initial Payment, the Holders agree to
waive $174,474 in Interest and Penalties so the Outstanding Amount immediately after such payment will be $304,702.

 

(b)Truli shall further
pay an aggregate of one hundred eighty thousand dollars ($180,000) to the Holders on a pro-rata basis, as described in Schedule
A in equal monthly payments of seven thousand five hundred dollars ($7,500) over a twenty-four (24) month period (“Recurring
Payments”). The first of the Recurring Payments shall be due on October 10, 2014, and subsequently due on the 10th
day of each month thereafter until fully paid. Each of the Recurring Payments shall be applied to pay down the Outstanding Amount.
Upon payment of all the Recurring Payments, without an Event of Default, the Holders agree to waive any remaining Outstanding Amount,
including any accrued Interest as provided for in Section 2(d).

 

(c)In the event a payment
in excess of the Recurring Payment is made during any month, the remaining Outstanding Amount shall be re-amortized over the number
of remaining Recurring Payments and the amount of future Recurring Payments shall be adjusted.

 

(d)Interest shall accrue
on the balance of the Outstanding Amount at an annual rate equal to ten percent (10%) (“Interest”)

 

3.Event
of Default. An Event of Default shall be defined as a failure to make any payment on a timely basis, provided that a payment
shall be deemed timely if made within 5 business days after their respective due dates (“Cure Period”) as provided
for in Section 2. For purposes of clarity, an Event of Default with respect to any Debenture shall be deemed an Event of Default
with regard to all Debentures. Upon the occurrence of an Event of Default, the then balance of the Outstanding Amount plus any
Interest accrued will be immediately due and payable.

 

4.Cancellation
of Debentures; Warrants; Issuance of Common Shares. 

 

(a)               
Upon execution of this Agreement, the Holders shall surrender the Debentures for cancellation.

 

(b)              
Upon execution of this Agreement, the Holders agree to exchange all Warrants into Truli common stock (“Common Stock”)
in such respective amounts as set forth opposite each Holder’s name on Schedule A.

 

    	 

    	 

    

 

5.Release
of Claims Against Truli. Upon execution of this Agreement, the Releasing Parties hereby agree, severally and not jointly, on
behalf of themselves, their successors, affiliates, representatives, directors, officers, employees, agents, attorneys, shareholders
and assigns, hereby fully releases and discharges Truli, and its successors, affiliates, representatives,
outside director, employees, agents, attorneys, consultants and assigns, from any and all rights, claims (asserted or unasserted),
actions and causes of action, suits, debts, demands, reimbursements, contracts, covenants, liens, liabilities, losses, costs, expenses
(including, without limitation, attorneys’ fees), and damages of any nature, kind and description, known or unknown, anticipated
or unanticipated, suspected or unsuspected, in law or in equity, arising out of, based on and/or in any way related to the transactions
involving the Debentures, Warrants, prior payments on the Debentures pursuant to forbearance and standstill agreements, or the
Default of the Debentures in any manner whatsoever arising on our before the date of this Agreement. 

 

6.Release
of Claims Against Solomon. Upon execution of this Agreement, the Releasing Parties hereby agree, severally and not jointly,
on behalf of themselves, their successors, affiliates, representatives, directors, officers, employees, agents, attorneys, shareholders
and assigns, hereby fully releases and discharges Solomon, and his successors, affiliates,
representatives, employees, agents, attorneys, consultants and assigns, from any and all rights, claims (asserted or unasserted),
actions and causes of actions and causes of action, suits, debts, demands, reimbursements, contracts, covenants, liens, liabilities,
losses, costs, expenses (including, without limitation, attorneys’ fees), and damages of any nature, kind and description,
known or unknown, anticipated or unanticipated, suspected or unsuspected, in law or in equity, arising out of, based on and/or
in any way related to the transactions involving the Debentures, Warrants, prior payments on the Debentures pursuant to forbearance
and standstill agreements, or the Default of the Debentures in any manner whatsoever as well as any payments or obligations owed
under this Agreement except for those contained in Section 9 hereof. For purposes of clarity, Solomon is released from any payments
or obligations owed under this Agreement, except as personally guaranteed by him pursuant to Section 9 hereof.

 

7.Advisement of
Parties. All the Parties hereto acknowledge that they have been advised by counsel and are familiar with 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 his favor at the time of executing the release, which if known
by him must have materially affected his settlement with the debtor. All the Parties, being aware of the foregoing code section,
expressly waive to the extent applicable any rights they may have thereunder, as well as under any other statutes or common law
principles of similar effect. The Parties acknowledge that they may hereafter discover facts different than, or in addition to,
those that it now knows or believes to be true with respect to the claims related herein, and each of them agrees that this general
release shall be and remain effective in all respects, notwithstanding later discovery of different or additional facts or evidence.

 

 

8.No Prior Assignment
of Debentures or Rights. The Holders each represent and warrant that they are the sole owner of the Debentures and Warrants
as listed on Schedule A, and any claims being released by each hereby, and that such Holders have not assigned or
otherwise transferred, voluntarily or involuntarily, the Debentures, Warrants, or any such claims. The Holders further represent
and warrant that each individually has good, valid and marketable title to all of the Debentures and Warrants held by it, free
and clear of all Encumbrances (as hereinafter defined). Each Holder has the legal right and power to enter into this Agreement
and to cancel both the Debentures and Warrants in the manner provided in this Agreement. Upon execution of this Agreement, each
Holder shall transfer for cancellation to Truli, all rights, title and interest in and to the Debentures and Warrants free and
clear of all Encumbrances. As used in this Agreement, “Encumbrances” shall mean any security interest, pledge,
lien, charge, adverse claim of ownership or use, or any restriction on ownership, use, voting, transfer or receipt of dividends,
or any other encumbrance of any kind of the Debentures and Warrants.

 

    	 

    	 

    

 

The Holders further represent and warrant that
each owns their Debentures and Warrants beneficially and of record, free and clear of any liens, claims or encumbrances. Each Holder
has not entered into any agreement, arrangement or other understanding (i) granting any rights with respect to the Debentures or
Warrants, (ii) restricting their right to transfer the Debentures or Warrants, or (iii) restricting any other of its rights with
respect to the Debentures or Warrants. Subject to the execution and performance of this Agreement, the Holders each have the absolute
and unrestricted right, power and capacity to sell, assign, or transfer the Debentures and Warrants free and clear of any Encumbrances.

 

9.Solomon
Personal Guaranty. Solomon hereby unconditionally personally guarantees the Outstanding Amount subject to reduction as provided
for herein (“Guaranty Amount”). For purposes of clarity, Solomon is not guaranteeing the Default Penalty.

 

10.Stipulated Judgment.
Truli agrees to provide the Holders, jointly but not severally, a stipulated judgment for the Outstanding Amount.

 

11.Securities Offering.
In the event that Truli is able to secure funding through the sale of their securities for cash or a loan other than from an affiliate
of Truli (“Offering”), twenty five percent (25%) of the gross proceeds received from the Offering (after deduction
of placement agent or underwriter costs) shall be applied to pay down the Outstanding Amount.

 

12.Authority.
Each Holder and the Released Parties signing this Agreement represents and warrants that he/she/it has full legal authority and
capacity to enter into this Agreement as a legally binding agreement. The Agreement shall inure to the benefit of, and be binding
upon, the Parties and their respective successors, assigns, heirs, and legal representatives.

 

13.Counterparts.
This Agreement may be executed in one or more counterparts and, when executed and exchanged by all Parties, will be binding on
all Parties, even though each may

have executed separate counterparts hereof.
Photocopied or facsimile images of signatures shall be deemed to be originals, and shall have the same force and effect as if they
were originals.

 

14.Notices. Any and
all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via
facsimile or e-mail at the facsimile number or e-mail address set forth on the signature pages attached hereto at or prior to 5:30
p.m. (New York City time) on a business day, (b) the next business day after the date of transmission, if such notice or communication
is delivered via facsimile or e-mail at the facsimile number or e-mail address set forth on the signature pages attached hereto
on a day that is not a business day or later than 5:30 p.m. (New York City time) on any business day, (c) the second (2nd) business
day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by
the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on
the signature pages attached hereto.

 

    	 

    	 

    

 

15.Governing Law.
All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of California, without regard to the principles of conflicts
of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of
New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper
or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence an action,
suit or proceeding to enforce any provisions of this Agreement, the prevailing party in such action, suit or proceeding shall be
reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

 

16.Construction.
The terms of this Agreement are the result of negotiation among all of the Parties. All of the Parties agree and acknowledge that
they participated in the drafting of this Agreement. For purposes of California Civil Code Section 1654 and comparable purposes,
this Agreement shall be deemed to have been drafted by each of the parties and any ambiguity that is deemed to exist shall not
be interpreted more strongly against any particular party on the basis that such party caused the uncertainty to exist. Headings
in this Agreement are for convenience only and do not limit or define any provisions hereof.

 

17.The Parties’
Advice of Attorneys. The Parties confirm and acknowledge that they have each sought and obtained the advice of an attorney
regarding this Agreement.

 

18.Severability.
If any provisions of this Agreement shall be adjudged void or unenforceable, the same shall not affect the validity of the Agreement
as a whole.

 

19.Further Assurance.
Each party covenants and agrees to execute such further documents and perform such further acts as may be reasonable and necessary
to effectuate the purposes of this Agreement.

 

20. Counterparts.
This Agreement shall become effective only upon its execution by or on behalf of ALL of the Parties. It may be executed
in two or more counterparts, each of which shall be deemed to be an original, and all counterparts shall together constitute the
Agreement.

 

21.Amendment and
Modifications. This Agreement may not be orally superseded, modified, or amended. No waiver, modification, or amendment shall
be valid unless signed by the Parties who are adversely effected thereby.

 

 

[Remainder of Page Intentionally Left Blank]

    	 

    	 

    

[RELEASED PARTIES SIGNATURE PAGE]

 

IN WITNESS WHEREOF, the Released Parties hereto
have executed this Agreement as of the day and year set forth on page one above.

 

  

Truli Media Group, Inc.

 

_______________________________

By:

Its:

Address:

 

 

Email:

Facsimile:

 

 

			Michael Jay Solomon, an Individual.

 

_______________________________

Address:

 

Email:

Facsimile:

 

    	 

    	 

    

 

[RELEASING PARTIES SIGNATURE PAGE]

 

IN WITNESS WHEREOF, the Releasing Party hereto
has executed this Agreement as of the day and year set forth on page one above.

 

 

 

 

[____________________________]

 

_______________________________

By:

Its:

Address:

 

Email:

Facsimile:

 

 

 

 

 

Initial Payment to be received (one-time Payment): ______________

 

Monthly Recurring Payments X24 (subject to adjustment): ______________amendment2.htm

AMENDMENT NO.  2 AND WAIVER TO

CREDIT AGREEMENT

AMENDMENT NO.  2 AND WAIVER, dated as of August 5, 2014 (this "Amendment and Waiver") to the CREDIT AGREEMENT dated as of August 5, 2011, by and between CVD EQUIPMENT CORPORATION, a New York corporation (the “Company”) and HSBC BANK USA, NATIONAL ASSOCIATION, a national banking association (the “Bank”) (as amended, restated, supplemented or otherwise modified, from time to time, the "Credit Agreement").

RECITALS

The Company has requested that the Bank, and the Bank has agreed to amend, and waive compliance with, certain provisions of the Credit Agreement, subject to the terms and conditions of this Amendment and Waiver.

Accordingly, in consideration of the premises and of the mutual covenants and agreements hereinafter set forth, the parties hereto agree as follows:

1.    Amendments.

                      (a)           The definition of the term “Revolving Credit Commitment Termination Date” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to provide as follows:

      “Revolving Credit Commitment Termination Date” shall mean August 5, 2015.

                      (b)           The second sentence of Section 2.7 of the Credit Agreement is hereby amended and restated in it is entirety to provide as follows:

Notwithstanding the foregoing, no Letter of Credit shall be issued if, after giving effect to the same, (a) the Aggregate Outstandings would exceed the Revolving Credit Commitment or (b) Aggregate Letters of Credit Outstanding would exceed $1,000,000.

 

2.    Waiver.  The Bank hereby waives compliance with Section 7.13(b) of the Credit Agreement, Fixed Charge Coverage Ratio, for the fiscal quarter ended June 30, 2014.

	 	
3.  

	
Conditions of Effectiveness

                      This Amendment and Waiver shall become effective as of the date hereof, upon receipt by the Bank of this Amendment and Waiver, duly executed by the Company.

4.    Conforming Amendments and Waiver.  The Credit Agreement, the Loan Documents and all agreements, instruments and documents executed and delivered in connection with any of the foregoing, shall each be deemed to be amended, waived and supplemented hereby to the extent necessary, if any, to give effect to the provisions of this Amendment and Waiver.  The Credit Agreement and the other Loan Documents shall remain in full force and effect in accordance with their respective terms.

	 	
5.  

	
Representations and Warranties.

The Company hereby represents and warrants to the Bank as follows:

 

RESTRICTED

  

  

(a)           After giving effect to this Amendment and Waiver (i) each of the representations and warranties set forth in Article IV of the Credit Agreement is true and correct in all material respects on and as of the date hereof as if made on and as of the date of this Amendment and Waiver except to the extent such representations or warranties relate to an earlier date in which case they shall be true and correct in all material respects as of such earlier date, and (ii) no Default or Event of Default has occurred and is continuing as of the date hereof or shall result from after giving effect to this Amendment and Waiver.

(b)           The Company has the power to execute, deliver and perform this Amendment and Waiver and each of the other agreements, instruments and documents to be executed by it in connection with this Amendment and Waiver.  No registration with or consent or approval of, or other action by, any Governmental Authority is required in connection with the execution, delivery and performance of this Amendment and Waiver and the other agreements, instruments and documents executed in connection with this Amendment and Waiver by the Company, other than registration, consents and approvals received prior to the date hereof and disclosed to the Bank and which are in full force and effect.

(c)           The execution, delivery and performance by the Company of this Amendment and Waiver and each of the other agreements, instruments, and documents to be executed by it in connection with this Amendment and Waiver, (i) have been duly authorized by all requisite corporate action, and (ii) will not violate  (A) any provision of law applicable to the Company, any rule or regulation of any Governmental Authority applicable to the Company or (B) the certificate of incorporation, by-laws, or other organizational documents, as applicable, of the Company.

                               (d)           This Amendment and Waiver has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company enforceable in accordance with its terms, except to the extent that enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws, now or hereafter in effect, relating to or affecting the enforcement of creditors’ rights generally and by equitable principles of general application, regardless of whether considered in a proceeding in equity or at law.

                               (e)           There have been no changes to the Certificate of Incorporation or Bylaws of the Borrower, previously delivered to the Bank on August 5, 2011, and there is no plan or proceeding for the dissolution or liquidation of the Borrower.

6.           Miscellaneous.

           Capitalized terms used herein and not otherwise defined herein shall have the same meanings as defined in the Credit Agreement.

           The amendments and waiver herein contained are limited specifically to the matters set forth above and do not constitute directly or by implication an amendment or a waiver of any other provision of the Credit Agreement or a waiver of any Default or Event of Default which may occur or may have occurred under the Credit Agreement.

           This Amendment and Waiver may be executed in one or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one Amendment and Waiver.

 

 

RESTRICTED - 2

  

  

 

           THIS AMENDMENT AND WAIVER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.

           This Amendment and Waiver shall constitute a Loan Document.

7.           Reaffirmation.

The Company hereby: (a) acknowledges and confirms that, except as amended by this Amendment and Waiver, (i) all terms and provisions contained in the Credit Agreement and the other Loan Documents are, and shall remain, in full force and effect in accordance with their respective terms and (ii) the liens heretofore granted, pledged and/or assigned to the Bank as security for the Company’s Obligations under the Notes, the Credit Agreement and the other Loan Documents shall not be impaired, limited or affected in any manner whatsoever by reason of this Amendment and Waiver and the Company further acknowledges that such liens shall secure all of the Obligations of the Company; (b) reaffirms and ratifies all the representations and covenants contained in each Loan Document; and (c) represents, warrants and confirms the non-existence of any offsets, defenses, or counterclaims to its obligations under the Credit Agreement and the other Loan Documents.

[the next page is the signature page]

RESTRICTED - 3  

  

  

IN WITNESS WHEREOF, the Company and the Bank have caused this Amendment and Waiver to be duly executed by their duly authorized officers, all as of the day and year first above written.

 

 

	 	 CVD EQUIPMENT CORPORATION	 
	 	 	 
	 	  By:  /s/ Glen Charles	 
	 	             Name:  Glen Charles	 
	 	             Title:    CFO	 
	 	 	 
	 	 	 
	 	 HSBC BANK USA, NATIONAL ASSOCIATION	 
	 	 	 
	 	  By:  /s/ Jose L. Won	 
	 	             Name:   Jose L. Won	 
	 	             Title:     VP	 
	 	 	 
	 	 	 

 

 

              

RESTRICTED - 4

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