Document:

Exhibit
10.2

 

NEITHER THESE SECURITIES NOR THE SECURITIES
INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON
CONVERSION OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

Date of Issuance: 8/15/14

 

$150,000

 

10% CONVERTIBLE DEBENTURE

DUE 8/15/15

 

THIS DEBENTURE is a duly authorized and
issued 10% Convertible Debenture of 3DIcon Corporation having a principal place of business at 6804 South Canton Avenue Suite 150
Tulsa, OK 74136 ("Company"), due 8/15/15 (the "Debenture").

 

FOR VALUE RECEIVED,
the Company promises to pay to Redwood Management, LLC or its registered assigns
(the "Holder"), the principal sum of $150,000 plus interest on 8/15/15 or such earlier date as the Debenture is required
or permitted to be repaid as provided hereunder (the "Maturity Date"), and to pay interest to the Holder on the aggregate
unconverted and then outstanding principal amount of this Debenture at the rate of (10%) Ten percent guaranteed interest payable
regardless of how long the Debenture remains outstanding, unless the Debenture is converted to shares of common stock in accordance
with the terms and conditions herein. The Debenture shall also have an original issue discount of three percent (3%) from the stated
Principal Amount.

 

The Holder will pay $150,000 upon execution.

 

THE COMPANY MAY PREPAY ANY PORTION OF THE
PRINCIPAL AMOUNT AT 130% OF SUCH AMOUNT ALONG WITH ANY ACCRUED INTEREST OF THIS DEBENTURE AT ANY TIME UPON SEVEN DAYS WRITTEN NOTICE
TO THE HOLDER

 

This Debenture is subject
to the following additional provisions:

 

    	1

    	 

    

 

Section 1. DENOMINATIONS.
This Debenture is exchangeable for an equal aggregate principal amount of Debentures of different authorized denominations, as
requested by the Holder surrendering the same. No service charge will be made for such registration of transfer or exchange.

 

Section 2.TRANSFER.
This Debenture may be transferred or exchanged only in compliance with applicable federal and state securities laws and regulations.
Prior to due presentment to the Company for transfer of this Debenture, the Company and any agent of the Company may treat the
Person in whose name this Debenture is duly registered as the owner hereof for the purpose of receiving payment as herein provided
and for all other purposes, whether or not this Debenture is overdue, and neither the Company nor any such agent shall be affected
by notice to the contrary.

 

Section 3. EVENTS OF
DEFAULT.

 

(a)           "Event
of Default", wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary
or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or
regulation of any administrative or governmental body):

 

(i)            any default in
the payment of the principal of, interest (including Late Fees) on, or liquidated damages in respect to this Debenture, free of
any claim of subordination, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date
or by acceleration or otherwise) which default is not cured, if possible to cure, within 5 days of notice of such default sent
by the Holder;

 

(ii)           the Company
or any of its subsidiaries shall commence, or there shall be commenced against the Company or any such subsidiary a case under
any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company commences any
other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
or similar law of any jurisdiction whether now or hereafter in effect relating to the Company or any subsidiary thereof or there
is commenced against the Company or any subsidiary thereof any such bankruptcy, insolvency or other proceeding which remains undismissed
for a period of 60 days; or the Company or any subsidiary thereof is adjudicated insolvent or bankrupt; or any order of relief
or other order approving any such case or proceeding is entered; or the Company or any subsidiary thereof suffers any appointment
of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period
of 60 days; or the Company or any subsidiary thereof makes a general assignment for the benefit of creditors; or the Company shall
fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the
Company or any subsidiary thereof shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring
of its debts; or the Company or any subsidiary thereof shall by any act or failure to act expressly indicate its consent to, approval
of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any subsidiary thereof
for the purpose of effecting any of the foregoing; or

 

    	2

    	 

    

 

(iii)          the
Company shall fail to timely file all reports required to be filed by it with the SEC pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise required by the Exchange Act.

 

(iv)          the
material breach of any promise or representation in this Debenture and or related representation or agreement made by the Company
and or any of its officers, which shall include, without limitation, the failure to deliver shares of common stock due Holder on
a conversion within three Business Days from the date of conversion or sooner, which delivery must be otherwise made per reasonable
specifications of the Holder (e.g. to brokerage firm account).

 

(b)           If any Event
of Default occurs and is continuing, the full principal amount of this Debenture, together with interest and other amounts owing
in respect thereof, to the date of acceleration shall become at the Holder's election, immediately due and payable in cash. The
Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of any kind, and the Holder
may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other
remedies available to it under applicable law. Such declaration may be rescinded and annulled by Holder at any time prior to payment
hereunder and the Holder shall have all rights as a Debenture holder until such time, if any, as the full payment under this Section
shall have been received by it. No such rescission or annulment shall affect any subsequent Event of Default or impair any right
consequent thereon.

 

(c)           If
the Company fails to perform hereunder by delivering shares or paying principal and or interest within 3 Business Days of said
being due, then for the first up to 30 calendar days from the due date of said performance, the Company shall also owe payable
immediately an amount equal to $1,000 per day as a reasonable "Late Fee" in addition to any other damages and reasonable
attorney fees and costs payable, to cover, on a non accountable basis, the time, expense, efforts and or distress of the Holder
having to focus its management, advisors, and counselors on the matter of the Company failing to honor its written obligations,
and said figure is deemed a reasonable liquidated damages provision and is not an election of remedy and is non exclusive so the
Holder can add and pursue all rights otherwise.

 

Section 4. Conversion.

 

(a) (i) Holder's Conversion Right.
At any time after the Date of Issuance until this Debenture is no longer outstanding, this Debenture, including interest and principal,
shall be convertible into shares of Common Stock at a price of Sixty Five Percent (65%) of the lowest traded VWAP, determined on
the then current trading market for the Company’s common stock, for 15 trading days prior to conversion (the “Set Price”)
at the option of the Holder, in whole at any time and from time to time. The Holder shall effect conversions by delivering to the
Company the form of Notice of Conversion attached hereto as Exhibit B ("Notice of Conversion"), specifying the date on
which such conversion is to be effected (a "Conversion Date"). If no Conversion Date is specified in a Notice of Conversion,
the Conversion Date shall be the date that such Notice of Conversion is provided hereunder. To effect conversions hereunder, the
Holder shall not be required to physically surrender Debentures to the Company. The Company shall deliver any objection to any
Notice of Conversion within TWO (2) Business Days of receipt of such notice. In the event of any dispute or discrepancy, the records
of the Holder shall be controlling and determinative in the absence of manifest error. If the Company does not request the issuance
of the shares underlying this Debenture after receipt of a Notice of Conversion within TWO (2) Business Days following the period
allowed for any objection, the Company shall be responsible for any differential in the value of the converted shares underlying
this Debenture between the value of the closing price on the date the shares should have been delivered and the date the shares
are delivered. In addition, if the Company fails to timely (within 72 hours, 3 business days), deliver the shares per the instructions
of the Holder, free and clear of all legends in legal free trading form, the Company shall allow Holder to add two (2) days to
the lookback (the mechanism used to obtain the conversion price along with discount) for each day the Company fails to timely (within
72 hours, 3 business days)) deliver shares, on the next conversion.

 

    	3

    	 

    

 

The Holder and any
assignee, by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of this paragraph, following
conversion of a portion of this Debenture, the unpaid and unconverted principal amount of this Debenture may be less than the amount
stated on the face hereof. Any legal opinion letter required to effectuate the issuance of the shares pursuant to this Paragraph
4(a) and the Notice of Conversion shall be provided and issued by Company. The Holder may use another attorney in its sole discretion
for the opinion. The parties hereby agree that the Company will cover all legal costs associated with the issuance of the legal
opinion letter to the Company’s transfer agent.

 

(ii)           If the Company,
at any time while this Debenture is outstanding: (A) shall pay a stock dividend or otherwise make a distribution or distributions
on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for
avoidance of doubt, shall not include any shares of Common Stock issued by the Company pursuant to this Debenture, including as
interest thereon), (B) subdivide outstanding shares of Common Stock into a larger number of shares, (C) combine (including by way
of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (D) issue by reclassification of
shares of the Common Stock any shares of capital stock of the Company, then the Set Price shall be multiplied by a fraction of
which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such event
and of which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant
to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination
or re-classification.

 

(iii)          Whenever the
Set Price is adjusted pursuant to any of Section 4, the Company shall promptly mail to each Holder a notice setting forth the Set
Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

 

    	4

    	 

    

 

(iv)          If (A) the Company
shall declare a dividend (or any other distribution) on the Common Stock; (B) the Company shall declare a special nonrecurring
cash dividend on or a redemption of the Common Stock; (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; (D) the approval
of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation
or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other securities, cash or property; (E) the Company shall
authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company; then, in each case,
the Company shall cause to be filed at each office or agency maintained for the purpose of conversion of the Debentures, and shall
cause to be mailed to the Holders at their last addresses as they shall appear upon the stock books of the Company, at least 20
calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a
record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to
be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or
share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock
of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer or share exchange; provided, that the failure to mail such notice
or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified
in such notice. Holders are entitled to convert Debentures during the 20-day period commencing the date of such notice to the effective
date of the event triggering such notice.

 

(v)          If, at any time
while this Debenture is outstanding, (A) the Company effects any merger or consolidation of the Company with or into another Person,
(B) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any
tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock
are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company effects any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash or property (in any such case, a "Fundamental Transaction"), then upon any subsequent conversion
of this Debenture, the Holder shall have the right to receive, for each share of common stock that would have been issuable upon
such conversion absent such Fundamental Transaction, the same kind and amount of securities, cash or property as it would have
been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental
Transaction, the holder of one share of Common Stock (the "Alternate Consideration"). For purposes of any such conversion,
the determination of the Set Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount
of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall
apportion the Set Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different
components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property
to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate consideration it
receives upon any conversion of this Debenture following such Fundamental Transaction. To the extent necessary to effectuate the
foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder
a new debenture consistent with the foregoing provisions and evidencing the Holder's right to convert such debenture into Alternate
Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring
any such successor or surviving entity to comply with the provisions of this paragraph and insuring that this Debenture (or any
such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction. If
any Fundamental Transaction constitutes or results in a change of control of the Company, then at the request of the Holder delivered
before the 90th day after such Fundamental Transaction, the Company (or any such successor or surviving entity) will
purchase the Debenture from the Holder for a purchase price, payable in cash within 10 Trading Days after such request (or, if
later, on the effective date of the Fundamental Transaction), equal to the 130% of the remaining unconverted principal amount of
this Debenture on the date of such request, plus all accrued and unpaid interest thereon, plus all other accrued and unpaid amounts
due hereunder.

 

    	5

    	 

    

 

(b)           The Company
covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock, sufficient
shares of Common Stock solely for the purpose of issuance upon conversion of this Debenture, in accordance with the Irrevocable
Transfer Agent Letter attached as Exhibit A hereto. A

 

(c)           Any and all
notices or other communications or deliveries to be provided by the Holders hereunder, including, without limitation, any Notice
of Conversion, shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service,
addressed to the Company, at the address set forth above or such other address or facsimile number as the Company may specify for
such purposes by notice to the Holders delivered in accordance with this Section. Any and all notices or other communications or
deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, sent by a nationally
recognized overnight courier service addressed to each Holder at the facsimile telephone number or address of such Holder appearing
on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of
the Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i)
the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified
in this Section prior to 5:30 p.m. (New York City time), (ii) the date after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile telephone number specified in this Section later than 5:30 p.m. (New York City time)
on any date and earlier than 11:59 p.m. (New York City time) on such date, (iii) the second Business Day following the date of
mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice
is required to be given.

 

(d)           Notwithstanding
anything to the contrary herein contained, the Holder may not convert this Debenture to the extent such conversion would result
in the Holder, together with any affiliate thereof, beneficially owning (as determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") and the rules promulgated thereunder) in excess of 4.99%
of the then issued and outstanding shares of Common Stock, including shares issuable upon such conversion and held by the Holder
after application of this section. The provisions of this section may be waived by the Holder (but only as to itself and not to
any other Holder) upon not less than 61 days prior notice to the Company. Other Holders shall be unaffected by any such waiver.

 

    	6

    	 

    

 

Section 5. Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Debenture:, the following terms shall have the following
meanings:

 

"Business Day"
means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which
banking institutions in the State of New York are authorized or required by law or other government action to close.

 

"Common Stock"
means the common stock of the Company and stock of any other class into which such shares may hereafter have been reclassified
or changed.

 

"Person"
means a corporation, an association, a partnership, organization, a business, an individual, a government or political subdivision
thereof or a governmental agency.

 

"Securities Act"
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

"Set Price"
shall have the meaning set forth in Section 4.

 

Section 6. Except as
expressly provided herein, no provision of this Debenture shall alter or impair the obligation of the Company, which is absolute
and unconditional, to pay the principal of, interest and liquidated damages (if any) on, this Debenture at the time, place, and
rate, and in the coin or currency, herein prescribed. This Debenture is a direct debt obligation of the Company. This Debenture
ranks pari passu with all other Debentures now or hereafter issued under the terms set forth herein. As long as this Debenture
is outstanding, the Company shall not and shall cause it subsidiaries not to, without the consent of the Holder, (a) amend its
certificate of incorporation, bylaws or other charter documents so as to adversely affect any rights of the Holder; (b) repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock or other
equity securities other than as to the shares of Common Stock underlying this Debenture or as otherwise permitted by this Debenture;
or (c) enter into any agreement with respect to any of the foregoing.

 

Section 7. If this
Debenture shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for
and upon cancellation of a mutilated Debenture, or in lieu of or in substitution for a lost, stolen or destroyed Debenture, a new
Debenture for the principal amount of this Debenture so mutilated, lost, stolen or destroyed but only upon receipt of evidence
of such loss, theft or destruction of such Debenture, and of the ownership hereof, and indemnity, if requested, all reasonably
satisfactory to the Company.

 

Section 8. So long
as any portion of this Debenture is outstanding, the Company will not and will not permit any of its subsidiaries to, directly
or indirectly, enter into, create, incur, assume or suffer to exist any indebtedness of any kind, on or with respect to any of
its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom that is senior
in any respect to the Company's obligations under the Debentures without the prior consent of the Holder, which consent shall not
be unreasonably withheld.

 

    	7

    	 

    

 

Section 9. All questions
concerning the construction, validity, enforcement and interpretation of this Debenture shall be governed by and construed and
enforced in accordance with the internal laws of the State of Florida, 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 Debenture (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees
or agents) shall be commenced in the state and federal courts sitting in Broward County (the "Florida Courts"). Each
party hereto hereby irrevocably submits to the exclusive jurisdiction of the Florida Courts for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to
the enforcement of this Debenture), 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, or such Florida Courts are improper or 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 Debenture 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 manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Debenture or the
transactions contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions of this Debenture,
then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys fees and other
costs and expenses incurred

with the investigation, preparation and
prosecution of such action or proceeding.

 

Section 10. Any waiver
by the Company or the Holder of a breach of any provision of this Debenture shall not operate as or be construed to be a waiver
of any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Company or
the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver
or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture.
Any waiver must be in writing.

 

Section 11. If any
provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect, and if
any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
If it shall be found that any interest or other amount deemed interest due hereunder violates applicable laws governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The
Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive
the Company from paying all or any portion of the principal of or interest on the Debentures as contemplated herein, wherever enacted,
now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture, and the Company
(to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it
will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted to the Holder, but will
suffer and permit the execution of every such as though no such law has been enacted.

 

    	8

    	 

    

 

Section 12. Whenever
any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day.

 

 

 

IN WITNESS
WHEREOF, the Company has caused this Convertible Debenture to be duly executed by a duly authorized officer as of the date
first above indicated.

 

	 	3DIcon Corporation
	 	 
	 	By: 	 	 
	 	Victor F. Keen
	 	CEO

 

    	9Converted by EDGARwiz

EMPLOYMENT SEPARATION AGREEMENT AND GENERAL RELEASE

THIS EMPLOYMENT SEPARATION AGREEMENT AND GENERAL RELEASE (this "Agreement") is made and entered into effective as of the 30th day of September, 2014 (the "Effective Date"), by and between Andrew Birnbaum ("Executive") and Vapor Hub International Inc., a Nevada corporation ("Company").

RECITALS

A.

Executive formerly served as Chief Executive Officer and as a director of the Company and resigned from said positions effective as of July 8, 2014 (the "Resignation Date"). 

B.

Company and Executive desire to enter into this Agreement to set forth the terms of Executive’s separation from the Company.

AGREEMENT

NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.

Resignation and Termination of Employment.  Executive acknowledges and agrees that his employment with Company ended and terminated effective as of the Resignation Date. Executive further acknowledges and agrees that (a) Company has fully paid and satisfied all amounts properly due and owing to Executive and/or his affiliates as a result of his employment with the Company through and including the Resignation Date and (b) that in the absence of this Agreement, Executive and/or his affiliates would not be entitled to any other payments whatsoever as a result thereof, including for expense reimbursement. The parties will characterize Executive's departure from Company as a voluntary resignation on amicable terms.  

2.

Termination of Employment Letter and Forfeiture of Rights.  Each of the Parties hereby acknowledges and agrees that effective as of the Resignation Date, without any further action by Company or Executive, any remaining obligations under that certain Interim Agreement for the Appointment of the Chief Executive Officer dated March 24, 2014 by and between Executive, his affiliates and the Company (the “Letter Agreement”) are terminated and of no further force or effect and neither Company nor Executive and/or his affiliates shall have any further rights, obligations, duties or powers thereunder.  For the sake of clarity, effective as of the Resignation Date, without any further action by Company or Executive, neither Executive nor his affiliates shall have any current or future right to any ownership or equity interest in Company, and any right and/or interest Executive has to the 6,600,000 shares referred to in the Letter Agreement is hereby waived and forfeited.

3.

Severance Payment. Following the Effective Date, provided Executive does not rescind the releases set forth herein, Company shall pay Executive an amount equal to $15,000 (the "Severance Payment"). Subject to the conditions set forth in the previous sentence, Company shall pay the Severance Payment in the form of one lump sum payment of $15,000 within ten (10) days following the execution of this Agreement. 

1

4.

Non-Admission of Discrimination or Wrongdoing.

4.1

This Agreement shall not in any way be construed as an admission by Company or Executive that they acted wrongfully with respect to the other, or any other person or entity. Each of Company and Executive specifically disclaims any liability to or wrongful acts against the other or any other person or entity, on the part of itself or himself and their respective parents, subsidiaries, partners, affiliates, shareholders, directors, officers, employees, agents, representatives, predecessors, successors, assigns, heirs, executors or administrators.

4.2

Executive acknowledges and agrees that he has not suffered any discrimination and/or harassment in terms, conditions or privileges of his employment based on age, race, gender, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sexual orientation, or on any other basis. Executive acknowledges and agrees that he has no claim for employment discrimination and/or harassment under any legal or factual theory.

4.3

Neither party may at any time make any statement, written or oral, that could reasonably be expected to disparage the other party (including, in the case of the Company, any of its officers, directors, employees and agents) or that could reasonably be expected to be detrimental to the reputation or stature of the other party (including, in the case of the Company, any of its officers, directors, employees and agents). 

5.

Agreements of Executive. 

(a)

Executive agrees that, on or before the Effective Date, he will turn over to Company any Company Materials (as defined below) that he has in his possession, custody or control (whether directly or indirectly) as of such date.

 

(b)

Executive shall provide Company with information relating to Executive’s tenure with Company, as may be reasonably requested by Company from time to time.

6.

Trade Secrets and Agreements Not to Solicit and Not to Interfere; Company's Right to Seek Injunctive Relief.

6.1

Definitions.

(a)

“Company Materials” means any and all of the Company’s equipment, devices and other property and documents and other media that contain or embody information relating to the Company and all manifestations of Proprietary Information (as defined below).  

(b)

“Inventions” means any and all inventions and improvements (whether or not patentable), works of authorship, derivative works, trade secrets, technology, computer programs or software, algorithms, formulas, compositions, ideas, designs, processes, techniques, know-how and data made, conceived, reduced to practice or developed by Executive (in whole or in part, either alone or jointly with others).

2

(c)

“Proprietary Information” means any and all information, knowledge and data obtained from the Company (whether conveyed visually, orally or in writing) concerning the Company’s actual or anticipated business, research, developments, products, services or finances including, without limitation, algorithms, trade secrets, computer programs and software, source code, data structures, databases, scripts, application programming interfaces, protocols, drawings, designs, mask works, formulas, technology, ideas, know-how, products, features and modes of operation, services, customer and supplier lists and compilations containing customer or supplier information, contacts at or knowledge of clients or prospective clients, finances, processes, schematics, specifications, techniques, compositions, inventions and improvements (whether or not patentable), patent applications, discoveries, works of authorship, derivative works, technical, business, financial, customer and product related plans, analyses, compilations, studies, forecasts and strategies, the salaries, terms of compensation, skill levels, duties and other terms of employment of other employees, the terms and existence of third party agreements, negotiations with third parties, and information which is received in confidence by or for the Company from any third party subject to a duty on the Company’s part to maintain the confidentiality of such information.  

(d)

“Rights” means any and all patent rights, copyright rights, trademark rights, trade secret rights, mask work rights, sui generis database rights, industrial design rights and all other intellectual property, industrial property and proprietary rights recognized anywhere in the world, now or in the future.

6.2

Proprietary Information.  All Proprietary Information and all Rights in connection therewith are the sole property of the Company and its successors and assigns.  Executive hereby irrevocably assigns to the Company, and its successors and assigns, any and all Rights Executive may have in Proprietary Information.  Executive understands, acknowledges and agrees that it would be extremely damaging to Company if such Proprietary Information were disclosed to a competitor or made available to any other person or entity. Executive understands and agrees that such Proprietary Information has been disclosed to Executive in confidence, that he will keep such Proprietary Information secret and confidential and that he will not in any way use, distribute or disclose such Proprietary Information.  The foregoing restrictions shall not apply to any information that (i) is or becomes publicly known through lawful means; (ii) was rightfully in Executive’s possession or part of Executive’s general knowledge prior to his employment by the Company as specifically identified in Attachment A hereto; or (iii) is disclosed to Executive without confidentiality obligations or restrictions on use or disclosure by a third party who rightfully possesses the information (without confidentiality obligations or restrictions on use or disclosure) and who did not receive such information, directly or indirectly, from the Company.  By signing this Agreement, Executive acknowledges and agrees that the identities, goals, needs and strategic plans of individuals and entities currently or prospectively served by the Company (“Clients”), and the terms on which such Clients do business or seek to do business with the Company, (all of the foregoing, “Client Information”) has independent economic value to the Company and is not readily ascertainable from public sources.  Executive further understands that the Company has expended considerable time and effort to develop, compile and protect the secrecy of Client Information, and has expressly identified Client Information to Executive as a valuable trade secret of the Company.  Executive further acknowledges and agrees that all Company Materials are the sole property of the Company.  

3

6.3

Intellectual Property.

(a)

Executive agrees that all Inventions developed during his employment and all Rights therein are the sole property of the Company and its successors and assigns.  Subject to Section 6.3(b) below, Executive hereby irrevocably assigns to the Company, and its successors and assigns, without further consideration, all of Executive’s right, title and interest in and to any and all Inventions and Rights developed during the period of Executive’s employment with the Company to the maximum extent permitted by Section 2870 of the California Labor Code, a copy of which is provided in Attachment B hereto.  No assignment in this Agreement shall extend to Inventions, the assignment of which is prohibited by California Labor Code Section 2870.

(b)

Executive acknowledges and agrees that each original work of authorship which is made by Executive (in whole or in part, either alone or jointly with others) within the scope of Executive’s employment and which is protectable by copyright (collectively, “Work”) is a “work made for hire” as defined in the United States Copyright Act (17 U.S.C., Section 101).

(c)

If any Invention assigned hereunder or any Work is based on, or incorporated in, or is an improvement or derivative of, or cannot be reasonably made, used, modified, maintained, supported, reproduced and sold or distributed without using or violating technology or rights owned or licensed by Executive and not assigned hereunder, Executive hereby grants the Company and its successors and assigns a perpetual, irrevocable, worldwide, fully paid-up, royalty-free, non-exclusive and sublicensable right and license to make, use, sell, offer for sale, copy, adapt, distribute, display, publicly perform, exploit and exercise all such technology and rights in support of the Company’s exercise or exploitation of any Work or assigned Invention (including modifications, improvements and derivatives thereof) or any Rights.

(d)

Executive agrees to perform all acts deemed necessary or desirable by the Company to permit and assist Company, at the Company’s expense, in evidencing, perfecting, applying for, prosecuting, obtaining, maintaining, defending and enforcing in any and all countries all Rights relating to any Work or in any Invention assigned to the Company hereunder and the assignment thereof. Such acts may include, without limitation, execution and delivery of documents and assistance or cooperation in legal proceedings.  Executive also agrees to assign all rights, title and interest in and to any particular Invention to a third party including, without limitation, the United States Government, as directed by the Company.  Should the Company be unable to secure Executive’s signature on any document necessary to evidence, perfect, apply for, prosecute, obtain, maintain, defend or enforce any Rights relating to any Work or assigned Invention, whether due to Executive’s mental or physical incapacity or any other cause, Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents, as Executive’s agents and attorneys-in-fact, with full power of substitution, to act for and on Executive’s behalf and instead of Executive, to execute, verify and file any documents and to do all other lawfully permitted acts to further the above purposes with the same legal force and effect as if executed by Executive and Executive acknowledges that the foregoing power is coupled with an interest.  Executive hereby waives and quitclaims to the Company any and all claims, of any nature whatsoever, which Executive now or may hereafter have for infringement of any Rights assigned hereunder.

4

(e)

Any assignment of copyright hereunder (and any ownership of a copyright as a work made for hire) includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral rights” (collectively “Moral Rights”).  To the extent such Moral Rights cannot be assigned under applicable law and to the extent the following is allowed by the laws in the various countries where Moral Rights exist, Executive hereby waives such Moral Rights and consents to any action of the Company that would violate such Moral Rights in the absence of such waiver and consent.  Executive agrees to confirm any such waivers and consents from time to time as requested by the Company.

(f)

Attachment A contains a complete list of all Inventions developed by Executive prior to the commencement of Executive’s employment with the Company to which Executive claims ownership as of the date of this Agreement.  Executive acknowledges and agrees that such list is complete.  If no such list of Inventions is attached to this Agreement, Executive represents that Executive has no such Inventions at the time of signing this Agreement.  With respect to all Inventions set forth on Attachment A hereto, Executive hereby grants the Company and its successors and assigns a perpetual, irrevocable, worldwide, fully paid-up, royalty-free, non-exclusive and sublicensable right and license to make, use, sell, offer for sale, copy, adapt, distribute, display, publicly perform, exploit and exercise all such Inventions in any and all media in connection with its business, as now conducted or as may be conducted in the future. 

6.5

Executive further agrees that for a period of twelve (12) months from the Resignation Date (the "Restricted Period"), Executive shall not, directly or indirectly, solicit or encourage any employee, officer or consultant of Company to (i) terminate his or her employment relationship or business relationship with Company or (ii) work for any Competitive Business (as defined below), it being understood and agreed that nothing in this Agreement is intended to prevent Executive from working for a Competitive Business during the Restricted Period. Executive acknowledges and agrees that Company depends on the services and contributions of its employees and personnel, including certain key employees and personnel of Company who have pre-existing business and personal relationships with Executive and who were initially introduced to Company by Executive. Executive acknowledges and understands that the loss of the services of any such key employees or personnel by Company could materially and adversely affect Company's business, operations and prospects, and the covenants, agreements and obligations set forth in this Section 6 are a material inducement to Company's execution of this Agreement and its agreement to enter into the obligations (including payment obligations) set forth herein.

5

6.6

Executive further covenants and agrees that during the Restricted Period, Executive shall not, either directly or indirectly, for himself, (i) induce or attempt to induce any employee, officer or consultant of Company to supply confidential business information or trade secrets of Company to any third person, firm or corporation, including, without limitation, any Competitive Business, or (ii) induce or attempt to induce any Customer, supplier, vendor, licensee, licensor or other business relation of Company to cease doing business with Company or in any way interfere with the relationship between any such Customer, supplier, vender, licensee, licensor or other business relation and Company. For the purposes of this Section 6, (a) "Business" means the business in which Company is engaged, namely, the manufacturing, marketing, promotion and sale of vaping devices and related accessories; (b) "Customer" means any person or entity to whom or to which Company has sold products or services, or solicited to sell products or services, at any time during the twelve (12)-month period ending on the Effective Date; (c) "Competitive Business" means any business, venture or division of any entity engaged in the business of manufacturing, marketing, promoting and/or selling vaping devices and related accessories; and (d) "directly or indirectly" means (A) Executive acting as an agent, representative, consultant, officer, director, independent contractor, or employee of any third person, firm or corporation, including, without limitation, any Competitive Business, or (B) Executive participating as an owner, partner, limited partner, joint venturer, creditor (other than as a trade creditor in the ordinary course of business) or shareholder (except as a shareholder holding less than a one percent (1%) interest in a corporation whose shares are actively traded on a regional or national securities exchange or in the over the counter market, provided that Executive does not participate in the management or operation of such corporation) in any third person, firm or corporation, including, without limitation, any Competitive Business; or (iii) communicating proprietary or confidential information or trade secrets concerning any past, present or identified prospective client or Customer of the Business to any third person, firm or corporation, including, without limitation, any Competitive Business.

6.7

In view of the nature of Executive's employment and the Proprietary Information and trade secrets that Executive has received during the course of his employment, and without limiting the generality of any other provision of this Agreement, Executive also agrees that Company would be irreparably harmed by any violation or threatened violation of this Agreement and that, therefore, Company shall be entitled to an injunction prohibiting Executive from any violation or threatened violation of this Agreement, in addition to any other relief, including monetary damages, to which Company may be entitled. The obligations described in this paragraph shall continue in effect after the payment of the sums described herein.

6.8

Executive agrees that the terms and the time periods provided for, and encompassed by, the covenants contained in this Section 6 are necessary and reasonable in order to protect the good will and value of the Business and are a material inducement to Company's execution of this Agreement.  If any court having jurisdiction at any time hereafter shall hold any provision or clause of this Agreement to be unreasonable as to its scope, territory or term, and if such court in its judgment or decree shall declare or determine that scope, territory or term which such court deems to be reasonable, then such scope, territory or term, as the case may be, shall be deemed automatically to have been reduced or modified to conform to that declared or determined by such court to be reasonable.

6

7.

General Releases.

7.1

As a material inducement for Company to enter into this Agreement, and as partial consideration for the payments provided herein, Executive, for himself and on behalf of his heirs, families, executors and administrators and on behalf of SmartCloud Technologies, Inc. and its parents, subsidiaries, partners, affiliates, shareholders, directors, officers, employees, agents, representatives, predecessors, successors or assigns (collectively, the “Executive Releasing Parties”), knowingly and voluntarily waives and releases all rights and claims ("Claims"), known and unknown, which the Executive Releasing Parties may have against Company, and/or any of Company's related or affiliated entities or successors, or any of their current or former parents, subsidiaries, partners, affiliates, shareholders, directors, officers, employees, agents, representatives, predecessors, successors or assigns, including without limitation, any and all charges, complaints, claims, liabilities, obligations, promises, agreements, contracts, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses of any kind, except as set forth in Section 7.5. 

7.2

As a material inducement for Executive to enter into this Agreement, and as partial consideration for the covenants provided herein, Company for itself and on behalf of its parents, subsidiaries, partners, affiliates, shareholders, directors, officers, employees, agents, representatives, predecessors, successors or assigns (collectively, “Company Releasing Parties”) knowingly and voluntarily waives and releases all Claims, known and unknown, which the Company Releasing Parties may have against Executive, and/or any of Executive's affiliates (including SmartCloud Technologies, Inc. and its current or former parents, subsidiaries, partners, affiliates, shareholders, directors, officers, employees, agents, representatives, predecessors, successors or assigns), heirs, executors, administrators, successors or assigns, including without limitation, any and all charges, complaints, claims, liabilities, obligations, promises, agreements, contracts, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses of any kind, except as set forth in Section 7.5.

7.3

The Executive Releasing Parties’ general release under this Agreement includes, but is not limited to, claims for employment discrimination, harassment, wrongful termination, constructive termination, violation of public policy, breach of any express or implied contract, breach of any implied covenant, fraud, intentional or negligent misrepresentation, emotional distress, defamation, libel, professional liability or any other claims relating to Executive's relationship with Company.

7

7.4

Executive Releasing Parties’ general release also includes a release of any claims under any federal, state or local laws or regulations, including, but not limited to: (a) Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000(e) et. seq. (race, color, religion, sex, and national origin discrimination; (b) the Age Discrimination in Employment Act, 29 U.S.C. § 621 et. seq. (age discrimination); (c) Section 1981 of the Civil Rights Act of 1866, 42 U.S.C. 1981 (race discrimination); (d) the Equal Pay Act of 1963, 29 U.S.C. § 206 (equal pay); (e) the California Fair Employment and Housing Act, Cal. Gov't. Code §12900, et. seq. (discrimination, including race, color, national origin, ancestry, disability, medical condition, marital status, sex, sexual orientation; sexual or racial harassment and age); (f) the California Labor Code § 200, et. seq. (salary, commission, compensation, benefits and other matters); (g) the Fair Labor Standards Act, 29 U.S.C. § 201, et. seq. (wage and hour matters, including overtime pay); (h) the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), 42 U.S.C. S 1395(c) (insurance matters); (i) Executive Order 11141 (age discrimination); (j) Section 503 of the Rehabilitation Act of 1973, 29 U.S.C. § 701, et. seq. (disability discrimination); (k) the Wheeler Retirement Income Security Act of 1974, 29 U.S.C. § 1001, et. seq. (employee benefits); (l) Title I of the Americans with Disabilities Act (disability discrimination); California Labor Code Section 132a (discrimination based on filing a workers' compensation claim); and (m) any applicable California Industrial Welfare Commission Order (wage matters).

7.5

The releases set forth in this Section 7 shall not (i) release obligations incurred pursuant to this Agreement; (ii) release claims in connection with events occurring after the date hereof; (iii) preclude any party hereto from enforcing its rights and remedies hereunder, or (iv) release Claims for indemnification from the Company to which Executive may be entitled under the Company’s governing instruments or under applicable law.

7.6

The matters that are the subject of the releases referred to in this Agreement, as described above, shall be referred to collectively as the "Released Matters."

8.

Unknown Claims. Each party acknowledges that there is a risk that subsequent to the execution of this Agreement, such party will incur or suffer damage, loss or injury to persons or property that is unknown or unanticipated at the time of the execution of this Agreement. Each party hereby specifically assumes such risk and agrees that this Agreement and the releases contained herein shall and do apply to all unknown or unanticipated claims, as well as those currently known or anticipated. Accordingly, each party acknowledges that such party has read 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 HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR."

Notwithstanding the provisions of Section 1542 and any similar law of any other jurisdiction, and for the purpose of implementing a full and complete release and discharge, each party expressly acknowledges that this Agreement is intended to include and does include in its effect, without limitation, all claims not known or suspected to exist at the time of execution hereof, and that this Agreement contemplates the extinguishment of any such claim or claims.

8

9.

Assumption of Risk; Investigation of Facts; Representations.

9.1

Company and Executive represent that they have all necessary power and authority to enter into this Agreement and have taken all action necessary to consummate the transactions contemplated hereby and to perform their obligations hereunder.  Each of Executive and Company have duly executed and delivered this Agreement, and this Agreement is a legal, valid and binding obligation of each party, enforceable against each party in accordance with its terms.  

9.2

Each party hereby expressly assumes the risk of any mistake of fact or that the true facts might be other than or different from the facts now known or believed to exist, and it is each party's express intention to forever settle, adjust and compromise any and all disputes between and among them, finally and forever, and without regard to who may or may not have been correct in their respective understandings of the facts or the law relating thereto.

9.3

In making and executing this Agreement, each party represents and warrants to the other that such party has made such investigation of the facts and the law pertaining to the matters described in this Agreement as such party deems necessary, and such party has not relied upon any statement or representation, oral or written, made by the other party with regard to any of the facts involved in any dispute or possible dispute between the parties hereto, or with regard to any of such party's rights or asserted rights, or with regard to the advisability of making and executing this Agreement.

10.

Ownership of Claims. Each party represents and agrees that such party has not assigned or transferred, or attempted to assign or transfer, to any person or entity, any of the Released Matters.

11.

No Representations. Executive represents and agrees that no promises, statements or inducements have been made to him that caused him to sign this Agreement other than those expressly stated in this Agreement.

12.

Confidentiality of this Agreement. Executive understands and agrees that this Agreement shall be maintained in strict confidence, and that Executive shall not disclose any of its terms to another person, except legal counsel, accountants tax/financial advisors, or spouse, if any, unless required by law.  Company may disclose this Agreement in the event it deems such disclosure to be required by law, including, without limitation, pursuant to the Securities Exchange Act of 1934, and the rules and regulations promulgated thereunder.

13.

Successors. This Agreement shall be fully binding and enforceable with respect to the parties, and their respective parents, subsidiaries, partners, affiliates, shareholders, directors, officers, employees, agents, representatives, predecessors, successors, assigns, heirs, families, executors and administrators. 

9

14.

Arbitration. Except as provided in Section 6.7, any claim or controversy arising out of or relating to this Agreement, or any breach thereof between the parties, shall be submitted to arbitration in Los Angeles, California, before an experienced employment arbitrator selected in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association, as the exclusive remedy for such claim or controversy. Any party desiring to arbitrate shall give written notice to the other party within a reasonable period of time after the party becomes aware of the need for arbitration. The decision of the arbitrator shall be final and binding. Judgment on any award rendered by such arbitrator may be entered in any court having jurisdiction over the subject matter of the controversy. The fees and costs of the arbitrator shall be paid equally by the Company and Executive. The parties shall bear their own legal fees. 

15.

Release of Age Discrimination Claims.

15.1

Age Discrimination is Specifically Intended to be Included as a Released Action. Executive specifically intends that this Agreement shall include a complete release of claims under the Age Discrimination in Employment Act of 1967 (the "ADEA"; 29 U.S.C. §§ 621 et seq.), as amended by the Older Workers' Benefit Protection Act of 1990, except for any allegation that a breach of this Act occurred following the date of this Agreement.

15.2

Additional Consideration. Executive agrees and promises that this Agreement by Company represents obligations by Company to Executive that are in addition to anything of value to which Executive was otherwise entitled from Company. In addition, Executive acknowledges and agrees that additional consideration has been provided by Company (beyond that which would have otherwise been provided) in order to effect a valid waiver of Executive's claims under the Federal age discrimination laws.

15.3

Advice to Consult an Attorney. Executive is hereby advised to consult with his attorney before signing this Agreement, because he is giving up significant legal rights. Executive acknowledges that he has been so advised and has, in fact, consulted fully with his attorney before signing this Agreement. The parties hereto, and each of them, further represent and declare that in executing this Agreement, they rely solely upon their own judgment, belief and knowledge, and on the advice and recommendations of their own independently selected legal counsel, concerning the nature, extent and duration of their rights and claims and that they have not been influenced to any extent whatsoever in executing the same by any representations or statements covering any matters made by any of the parties hereto or by any person representing them or any of them. The parties acknowledge that no party hereto nor any of their representatives has made any promise, representation or warranty whatsoever, written or oral, as any inducement to enter into this Agreement, except as expressly set forth in this Agreement.

15.4

Reasonable Time to Consider Settlement Agreement. Executive acknowledges that he has been given a reasonable period of time (a maximum of twenty-one (21) days, if he so chooses) to consider this Agreement before signing this Agreement. Executive understands that he has seven (7) days following signing of this Agreement to rescind it, but only insofar as it effects a release of a claim for violation of the ADEA, in which case it shall remain fully effective in all other respects. To rescind this Agreement as to the ADEA, Executive agrees to fax a letter signed by Executive to Company, by the end of the seven-day period. The remainder of this Agreement shall remain in full force and effect including, but not limited to, Section 7 above.

10

15.5

Non-Release of Future Claims. Executive is hereby advised that this Agreement does not waive or release any rights or claims that Executive may have under the ADEA, or otherwise, which arise after the date Executive signs this Agreement.

16.

Execution In Counterparts. This Agreement may be executed in one or more

counterparts, all of which taken together shall constitute one agreement.  

17.

Severability and Governing Law. The parties hereto agree that if any term, provision, covenant or condition of this Agreement is found to be invalid, illegal or unenforceable, then the parties hereto shall renegotiate such term, provision, covenant or condition in good faith to effectuate its/their purpose and to conform the provision(s) to applicable law to make such term valid, legal and enforceable, or if such term, provision, covenant or condition may not be amended or modified so as to become valid, legal and enforceable, then such term, provision, covenant or condition shall be deemed excised from this Agreement, and the remaining terms and conditions hereof shall remain in full force and effect and shall in no way be impaired or invalidated thereby.  This Agreement is made and entered into in the State of California and shall in all respects be interpreted, enforced and governed under the laws of California, without regard to its principles of conflict of laws.

18.

Proper Construction. The language of all parts of this Agreement shall in all

cases be construed as a whole according to its fair meaning, and not strictly for or against any of the parties.

19.

Entire Agreement. This Agreement is the entire agreement between Executive

and Company, and fully supersedes any and all prior agreements or understandings between the parties pertaining to its subject matter, including the Letter Agreement.

20.

Notice. Notice. Any notice or other communication required or permitted to be given under this Agreement must be in writing and may be personally delivered; mailed by certified mail, return receipt requested, postage prepaid, addressed to the parties at the following addresses; or be personally delivered to the parties at the following addresses:

Executive:

Andrew Birnbaum

2973 Harbor Blvd., Suite 670

Costa Mesa, CA 92626

Company:

Vapor Hub International, Inc.

67 W. Easy Street, Unit 115

Simi Valley, CA 93065

Attention: Lori Winther

All notices and other communications delivered in person will be deemed given at the time they are received by the party to whom the notice is being given. All notices and communications delivered by mail will be deemed to be given at the expiration of three days after the date of mailing. The address of a party to which notices or other communications must be mailed or sent may be changed from time to time by giving notice to the other party.

11

21.

Waiver & Amendment. No waiver of any provision of this Agreement may be deemed, or will constitute, a waiver of any other provision, whether or not similar, nor will any waiver constitute a continuing waiver. No waiver will be binding unless executed in writing by the party making the waiver. This Agreement shall not be modified, amended, or in any way altered except by an instrument in writing and signed by both of the parties subsequent to the date hereof.

22.

Further Acts. Each party to this Agreement shall perform any further acts and to execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Agreement. 

23.

Effective Date and Use of Executed Copies. This Agreement shall be effective following execution by each of the parties. A copy of the executed signature page may be used as an original for all purposes, and each executed copy of this Agreement shall be deemed to be an original.

12

PLEASE READ CAREFULLY. THIS SEPARATION AGREEMENT AND GENERAL RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. EACH PARTY TO THIS AGREEMENT HAS MADE SUCH INVESTIGATION OF THE FACTS PERTAINING TO THIS SETTLEMENT AND THIS AGREEMENT AND OF ALL MATTERS PERTAINING THERETO AS HE/IT DEEMS NECESSARY.

DATE:    9/30/2014       

/s/ Andrew Birnbaum

Andrew Birnbaum

DATE:    10/08/2014       

VAPOR HUB INTERNATIONAL INC.

/s/ Lori Winther

Name: Lori Winther

Title: Chief Financial Officer

13

ATTACHMENT A

1.

The following is a complete list of Inventions relevant to the subject matter of my employment with Vapor Hub International, Inc. (the “Company”) that have been made, conceived, reduced to practice or developed by me (in whole or in part, either alone or jointly with others) prior to my employment by the Company that I desire to clarify are not owned by the Company (but are subject to Section 6.4(f) of the Agreement).

[  ]

No Inventions

  (initials)

[X]

See below:

That certain internet “Portal” as in existence on the date of the commencement of Executive’s employment with the Company on March 24, 2014, as documented in Executive’s written records existing prior to such date.  The internet Portal is an idea for a website where distributors can purchase eliquid and other products at a volume discount and receive credit towards the purchase of other promotional materials.  

[  ]

Additional sheets attached

14

ATTACHMENT B

Section 2870. Application of provision providing that employee shall assign or offer to assign rights in invention to employer.

(a)

Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either:

(1)

Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or

(2)

Result from any work performed by the employee for the employer.

(b)

To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}]]