Document:

SETTLEMENT AGREEMENT
AND STIPULATION

 

THIS SETTLEMENT
AGREEMENT and STIPULATION dated as of November 10, 2014 by and between Alkame Holdings, Inc. ("ALKM" or the “Company”),
a corporation formed under the laws of the State of Nevada, and EROP Capital LLC ("EROP"), a Florida Limited Liability
Corporation. 

 

BACKGROUND:

 

WHEREAS, there
are bona fide outstanding liabilities of the Company in the principal amount of not Less than $796,451.55 (U.S.); and

 

WHEREAS, these
liabilities are past due; and

 

WHEREAS,
EROP acquired such liabilities on the terms and conditions set forth in the annexed Claim Purchase Agreement(s), subject however
to the agreement of the Company and compliance with the provisions hereof; and

 

WHEREAS,
EROP and ALKM desire to resolve, settle, and compromise among other things the liabilities as more particularly set forth on Schedule
A annexed hereto (hereinafter collectively referred to as the "Claims").

 

NOW, THEREFORE,
the parties hereto agree as follows:

 

1.                  
Defined Terms. As used in this Agreement, the following terms shall
have the following meanings specified or indicated (such meanings to be equally applicable to both the singular and plural forms
of the terms defined):

 

"AGREEMENT"
shall have the meaning specified in the preamble hereof. "CLAIM AMOUNT" shall mean $796,451.55 (U.S.).

 

"COMMON
STOCK" shall mean the Company's common stock, $.001 par value per share, and any shares of any other class of common stock
whether now or hereafter authorized, having the right to participate in the distribution of dividends (as and when declared) and
assets (upon liquidation of the Company).

 

"COURT'
shall mean Circuit Court within Miami Dade County, Florida "DISCOUNT" shall mean forty (40%) percent.

 

"DTC"
shall have the meaning specified in Section 3b. "DWAC" shall have the meaning specified in Section 3b. "FAST"
shall have the meaning specified in Section 3b.

 

"MARKET
PRICE" on any given date shall mean the lowest closing bid Price during the Valuation Period.

 

"PRINCIPAL
MARKET" shall mean the Nasdaq National Market, the Nasdaq SmallCap Market, the Over the Counter Bulletin Board, QB marketplace,
the American Stock Exchange or the New York Stock Exchange, whichever is at the time the principal trading exchange or market for
the Common Stock.

 

"PURCHASE
PRICE" shall mean the Market Price during the Valuation Period (or such other date on which the Purchase Price is calculated
in accordance with the terms and conditions of this Agreement) less the product of the Discount and the Market Price.

 

"SELLER"
shall mean any individual or entity listed on Schedule A, who originally owned the Claims.

 

"TRADING
DAY" shall mean any day during which the Principal Market shall be open for business.

 

"TRANSFER
AGENT" shall mean the transfer agent for the Common Stock (and to any substitute or replacement transfer agent for the Common
Stock upon the Company's appointment of any such substitute or replacement transfer agent).

 

"VALUATION
PERIOD" shall mean the lowest closing bid price during the previous five (5) day trading period preceding the share request
inclusive of the day of any Share Request pursuant to this agreement (the "trading period"); provided that the Valuation
Period shall be extended as necessary in the event that (1) the Initial Issuance is delivered in more than one tranches pursuant
to Sections 3(a) and 3(e), and/or (2) one or more Additional Issuances is required to be made pursuant to Section 3(d) below, in
which case the Valuation Period for each issuance shall be extended to include additional trading days pursuant to such issuance.
The Valuation Period shall begin on the date of any Share Request pursuant to this Agreement, but shall be suspended to the extent
that any subsequent Initial Issuance tranche and/or Additional Issuance is due to be made until such date as such Initial Issuance
tranche and/or Additional Issuance is delivered to EROP pursuant to Section 3(b)(iii ). Any period of suspension of the Valuation
Period shall be established by means of a written notice from EROP to the Company.

    	 

    	 

    

2.                  
Fairness Hearing.Upon the execution hereof, Company and EROP agree, pursuant to Section
3(a)(l 0) of the Securities Act of 1933 (the "Act"), to immediately submit the terms and conditions of this Agreement
to the Court for a hearing on the fairness of such terms and conditions, and the issuance exempt from registration of the Settlement
Shares. This Agreement shall become binding upon the parties only upon entry of an order by the Court substantially in the form
annexed hereto as Exhibit A (the "Order").

 

3.                  
Settlement Shares.Following entry of an Order by the Court in accordance with Paragraph 2
herein and the delivery by EROP and Company of the Stipulation of Dismissal (as defined below), Company shall issue and deliver
to EROP shares of its Common Stock (the "Settlement Shares") as follows:

 

a.                                          
In settlement of the Claims, Company shall initially issue and deliver to EROP, in one or
more tranches as necessary subject to paragraph 3(f) herein, shares of Common Stock (the "Initial Issuance"), subject
to adjustment and ownership limitations as set forth below, sufficient to satisfy the compromised amount at a forty percent (40%)
discount to market (the total amount of the claims multiplied by 60%) based on the market price during the valuation period as
defined herein through the issuance of freely trading securities issued pursuant to Section 3(a)( 10) of the Securities Act (the
"settlement shares"). 

 

b.                                         
No later than the first business day following the date that the Court enters the Order, time
being of the essence, Company shall: (i) cause its legal counsel to issue an opinion to Company's transfer agent, in form and substance
reasonably acceptable to EROP and such transfer agent, that the shares of Common Stock to be issued as the Initial Issuance, Additional
Issuance (as defined below) and shares issued as a settlement fee are legally issued, fully paid and non-assessable, are exempt
from registration under the Securities Act may be issued without restrictive legend, and may be resold by EROP without restriction;
(ii) transmit via email, facsimile and overnight delivery an irrevocable and unconditional instruction to Company's stock transfer
agent; and (iii) issue the Initial Issuance, as Direct Registration Systems (DRS) shares to ER’s account with The Depository
Trust Company (OTC) or through the Fast Automated Securities Transfer (FAST) Program of DTC's Deposit/Withdrawal Agent Commission
(DWAC) system, without any legends or restriction on transfer. The date upon which the first tranche of the Initial Issuance shares
along with any shares issued as a settlement fee have been received into EROP’s account and are available for sale by EROP
shall be referred to as the "Issuance Date". In the event that Company is delinquent on issuance of shares of stock to
EROP pursuant to the terms and conditions of this Section 3 within three (3) business days of a request for issuance of shares
pursuant to Court Order Granting Approval of this Settlement Agreement, then upon demand of EROP, Company shall be responsible
for payment of a penalty of $1,000.00 per day, payable to EROP, until said delinquency is cured.

 

c.                                         
During the Valuation Period, the Company shall deliver to EROP, through the Initial Issuance
and any required Additional Issuance subject to paragraph 3(f) herein along with any shares issued as a settlement fee, that number
of shares (the "Final Amount") with an aggregate value equal to (A) the sum of the Claim Amount, divided by (B) the Purchase
Price. The parties acknowledge that the number of Settlement Shares along with any shares issued as a settlement fee to be issued
pursuant to this Agreement is indeterminable as of the date of its execution, and could well exceed the current existing number
of shares outstanding as of the date of its execution.

 

If at any
time during the Valuation Period the Market Price is below 90% of the closing bid price on the day before the Issuance Date, Company
will immediately cause to be issued and delivered to EROP in accordance with the provisions of Section 3(b) herein, such additional
shares as may be required to effect the purposes of this Settlement Agreement (each, an "Additional Issuance"), subject
to the limitation in the paragraph below. At the end of the Valuation Period, if the sum of the Initial Issuance and any Additional
Issuance is greater than the Final Amount, EROP shall promptly deliver any remaining shares to Company or its transfer agent for
cancellation.

 

e.                 
Notwithstanding anything to the contrary contained herein, it is the intention of the parties that the Settlement Shares
along with any shares issued as a settlement fee beneficially owned by EROP at any given time shall not exceed the number of
such shares that, when aggregated with all other shares of Company then beneficially owned by EROP, or deemed beneficially
owned by EROP, would result in EROP owning more than 9.99% of all of such Common Stock as would be outstanding on such date,
as determined in accordance with Section 16 of the Exchange Act and the regulations promulgated thereunder. In compliance
therewith, the Company agrees to deliver the Initial Issuance and any Additional Issuances in one or more
traunches.

 

f.                                           
For the avoidance of doubt, the price used to determine the number
of shares of Common Stock to be delivered pursuant to any Share Request shall be rounded up to the nearest decimal place of .001.

 

4.                  
Necessary Action. At all times after the execution of this Agreement
and entry of the Order by the Court, each party hereto agrees to take or cause to be taken all such necessary action including,
without limitation, the execution and delivery of such further instruments and documents, as may be reasonably requested by any
party for such purposes or otherwise necessary to effect and complete the transactions contemplated hereby.

 

5.                  
Releases. Upon receipt of all of the Settlement Shares and settlement
fee shares for and in consideration of the terms and conditions of this Agreement, and except for the obligations, representations
and covenants arising or made hereunder or a breach hereof, parties hereby release, acquit and forever discharge the other and
each, every and all of their current and past officers, directors, shareholders, affiliated corporations, subsidiaries, agents,
employees, representatives, attorneys, predecessors. successors and assigns (the "Released Parties"), of and from any
and all claims, damages, cause of action, suits and costs, of whatever nature, character or description, whether known or unknown,
anticipated or unanticipated, which the parties may now have or may hereafter have or claim to have against each other with respect
to the Claims. Nothing contained herein shall be deemed to negate or affect EROP’s right and title to any securities heretofore
issued to it by Company or any subsidiary of Company.

    	2

    	 

    

6.                  
Representations.Company hereby represents, warrants and covenants
to EROP as follows:

 

a.                                         
There are Nine Hundred Million (900,000,000) shares of Common Stock
of the Company authorized, of which approximately Sixty-Nine Million Eight Hundred Seventy Eight Thousand Nine Hundred Thirty Nine
(69,878,939) Shares of Common Stock are issued and outstanding; and approximately Eight Hundred Thirty Million One Hundred Twenty
One Thousand Sixty One (830,121,061) Shares of Common Stock are available for issuance pursuant hereto;

 

b.                                        
The shares of Common Stock to be issued pursuant to the Order are duly
authorized, and when issued will be duly and validly issued, fully paid and non-assessable, free and clear of all liens, encumbrances
and preemptive and similar rights to subscribe for or purchase securities;

 

c.                                         
The shares will be exempt from registration under the Securities Act
and issuable without any restrictive Legend;

 

d.                                          
The Company has reserved from its duly authorized capital stock a number of shares of Common
Stock at least equal to the greater of the number of shares that could be issued pursuant to the terms of the Order and that it
shall reserve at its transfer agent, at a minimum 30,000,000 shares during the Valuation Period in order to ensure that it can
properly carry out the terms of this agreement, which may only be released to Company once all of the settlement shares have been
delivered and conve1ted pursuant to this agreement and Company's obligations are otherwise fully satisfied or there has otherwise
been a default pursuant to the terms of this agreement;

 

e.                                          
If at any time it appears reasonably likely that there may be insufficient authorized shares
to fully comply with the Order, Company shall promptly increase its authorized shares to ensure i ts ability to timely comply with
the Order;

 

f.                                          
The execution of this Agreement and performance of the Order by Company and me will not (1)
conflict with, violate or cause a breach or default under any agreements between Company and any creditor (or any affiliate thereof)
related to the account receivables comprising the Claims, or (2) require any waiver, consent, or other action of the Company or
any creditor, or their respective affiliates, that has not already been obtained;

 

g.                                         
Without limitation, the Company hereby waives any provision in any agreement related to the
account receivables comprising the Claims requiring payments to be applied in a certain order, manner, or fashion, or providing
for exclusive jurisdiction in any court other than this Court;

 

h.                                         
The Company has all necessary power and authority to execute, deliver and perform all of its
obligations under this Agreement;

 

i.                                           
The execution, delivery and performance of this Agreement by the Company
has been duly authorized by all requisite action on the part of Company and its Board of Directors (including a majority of its
independent directors), and this Agreement has been duly executed and delivered by Company;

 

j.                                           
Company did not enter into the transaction giving rise to the Claims
in contemplation of any sale or distribution of Company's common stock or other securities

 

k.                                          
There has been no modification, compromise, forbearance, or waiver
entered into or given with respect to the Claims. There is no action based on the Claims that is currently pending i n any court
or other legal venue, and no judgments based upon the Claims have been previously entered in any legal proceeding;

 

l.                                           
There are no taxes due, payable or withholdable as an incident of Seller’s
provision of goods and services, and no taxes will be due, payable or withholdable as a result of settlement of the Claims

 

m.                                        
Seller was not and within the past ninety (90) days has not been directly
or indirectly through one or more intermediaries in control, controlled by, or under common control with, the Company and is not
an affiliate of the Company as defined in Rule 144 promulgated under the Act

 

n.                                          
To the best of the Company's knowledge, Seller is not, directly or
indirectly, utilizing any of the proceeds received from EROP for selling the Claims to provide any consideration to or invest in
any manner in the Company or any affiliate of the Company

    	3

    	 

    

o.                                          
Company has not received any notice (oral or written) from the SEC
or Principal Market regarding a halt, limitation or suspension of trading in the Common Stock;

 

p.                                          
Seller will not, directly or indirectly, receive any consideration
from or be compensated in any manner by, the Company, or any affiliate of the Company, in exchange for or in consideration of selling
the Claims;

 

q.                                          
Company represents that none of the investor claims arise out of prepaid
promoter or investor relations service.

 

r.                                           
 Company represents that each Claim being purchased pursuant hereto
is a bona-fide Claim against the Company and that the invoices or written contract(s)/promissory notes underlying each Claim are
accurate representations of the nature of the debt and the amounts owed by the Company to Seller;

 

s.                                           
Company acknowledges that EROP or its affiliates may from time to time,
hold outstanding securities of the Company which may be convertible in shares of the Company's common stock at a floating conversion
rate tied to the current market price for the stock. The number of shares of Common Stock issuable pursuant to this Agreement may
increase substantially in certain circumstances, including, but not necessarily limited to the circumstance wherein the trading
price of the Common Stock declines during the Valuation Period. The Company's executive officers and directors have studied and
fully understand the nature of the transaction contemplated by this Agreement and recognize that they have a potential dilutive
effect. The board of directors of the Company has concluded in its good faith business judgment that such transaction is in the
best interests of the Company. The Company specifically acknowledges that its obligation to issue the Settlement Shares is binding
upon the Company and enforceable regardless of the dilution such issuance may have on the ownership interests of other shareholders
of the Company. The Board of Directors of the Company has further given its consent for each conversion of shares of stock pursuant
to this agreement and agrees and consents that same may occur below the par value of the Company's Common Stock.

t.                                           
None of the transactions agreements or proceedings described above
is part of a plan or scheme to evade the registration requirements of the Securities Act and ALKM and EROP are acting and has acted
in an arm’s length capacity.

 

7.                  
Continuing Jurisdiction. Simultaneously with the execution of this
Agreement, the attorneys representing the parties hereto will execute a stipulation of dismissal substantially in the form annexed
hereto as Exhibit B (the "Stipulation of Dismissal"). In order to enable the Court to grant specific enforcement or other
equitable relief in connection with this Agreement, (a) the parties consent to the jurisdiction of the Court for purposes of enforcing
this Agreement, and (b) each party to this Agreement expressly waives any contention that there is an adequate remedy at law or
any like doctrine that might otherwise preclude injunctive relief to enforce this Agreement.

 

8.                  
Conditions Precedent / Default.

 

a.                                         
If Company shall default in promptly delivering the Settlement Shares
along with settlement fees shares to EROP in the form and mode of delivery as required by Paragraphs 2, 3, 4 and 6 herein or otherwise
fail in any way to fully comply with the provisions thereof;

 

b.                                        
If the Order shall not have been entered by the Court on or prior to
ninety (90) days after execution of this agreement;

 

c.                                         
If the Company shall fail to comply with the Covenants set forth m
Paragraph 14 hereof;

 

d.                                        
If Bankruptcy, dissolution, receivership, reorganization, insolvency
or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors or other
legal proceedings for any reason shall be instituted by or against the Company; or if the trading of the Common Stock shall have
been halted, limited, or suspended by the SEC or on the Principal Market; or trading in securities generally on the Principal Market
shall have been suspended or limited; or, minimum prices shall been established for securities traded on the Principal Market or
eligible for delivery via OTC or DWAC; or the Common Stock is not eligible or unable to be deposited for trade on the Principal
Market; or the Common Stock is no longer eligible for book transfer delivery via OWAC; or the Company is delinquent or has not
made its required Securities and Exchange Commission filings; or there shall have been any material adverse change (i) in the Company's
finances or operations, or (ii) in the financial markets such that, in the reasonable judgment of the EROP, makes it impracticable
or inadvisable to trade the Settlement Shares; and such suspension, limitation or other action is not cured within ten (l0) trading
days; then the Company shall be deemed in default of the Agreement and Order and this Agreement shall be voidable in the sole discretion
of EROP, unless otherwise agreed by written agreement of the parties

 

e.                                         
In the event that the Company fails to fully comply with the conditions
precedent as specified in paragraph 8 a. through d. herein, then the Company shall be deemed in default of the agreement and EROP,
at its option and in its sole discretion, may declare Company to be in default of the Agreement and Order, and this Agreement
shall be voidable in the sole discretion of EROP, unless otherwise agreed by written agreement of the parties. In said event,
EROP shall have no further obligation to comply with the terms of this agreement and can thus opt out of making any remaining
payments, if applicable, not previously made to creditors as contemplated by the Claims Purchase Agreements as referenced in schedule
A, I through 2. 

    	4

    	 

    

9.                  
Information. Company and EROP each represent that prior to the execution of this Agreement,
they have fully informed themselves of its terms, contents, conditions and effects, and that no promise or representation of any
kind has been made to them except as expressly stated in this Agreement.

 

10.              
Ownership and Authority. Company and EROP represent and warrant that they have not sold, assigned,
transferred, conveyed or otherwise disposed of any or all of any claim, demand, right, or cause of action, relating to any matter
which is covered by this Agreement, that each is the sole owner of such claim, demand, right or cause of action, and each has the
power and authority and has been duly authorized to enter into and perform this Agreement and that this Agreement is the binding
obligation of each, enforceable in accordance with its terms.

 

11.              
No Admission. This Agreement is contractual and it has been entered into in order to compromise
disputed claims and to avoid the uncertainty and expense of the litigation. This Agreement and each of its provisions in any orders
of the Court relating to it shall not be offered or received in evidence in any action, proceeding or otherwise used as an admission
or concession as to the merits of the Action or the liability of any nature on the part of any of the parties hereto except to
enforce its terms.

 

12.              
Binding Nature. This Agreement shall be binding on all parties executing this Agreement and
their respective successors, assigns and heirs.

 

13.              
Authority to Bind. Each party to this Agreement represents and warrants that the execution,
delivery and performance of this Agreement and the consummation of the transactions provided in this Agreement have been duly authorized
by all necessary action of the respective entity and that the person executing this Agreement on its behalf has the full capacity
to bind that entity. Each party further represents and warrants that it has been represented by independent counsel of its choice
in connection with the negotiation and execution of this Agreement, and that counsel has reviewed this Agreement

 

14.              
Covenants.

 

a.                                          
For so long as EROP or any of its affiliates holds any shares
of Common Stock, neither Company nor any of its affiliates shall vote any shares of Common Stock owned or controlled by it (unless
voting in favor of a proposal approved by a majority of Company's Board of Directors), or solicit any proxies or seek to advise
or influence any person with respect to any voting securities of Company; in favor of (1) an extraordinary corporate transaction,
such as a reorganization or liquidation, involving Company or any of its subsidiaries, (2) a sale or transfer of a material amount
of assets of Company or any of its subsidiaries. (3) any material change in the present capitalization or dividend policy of Company,
(4) any other material change in Company's business or corporate structure, (5) a change in Company's charter, bylaws or instruments
corresponding thereto (6) causing a class of securities of Defendant to be delisted from a national securities exchange or to cease
to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association, (7) causing
a class of equity securities of Company to become eligible for termination of registration pursuant to Section 12(g)(4) of the
Securities Exchange Act of 1934, as amended, (8) terminating its Transfer Agent, (9) taking any action which would impede the purposes
and objects of this Settlement Agreement or (10) taking any action, intention, plan or arrangement similar to any of those enumerated
above. Nothing in this section shall be deemed to exclude strategic decisions by Company made in an effort to expand the Company
except as expressly stated herein. The provisions of this paragraph may not be modified or waived without further order of the
Court.

 

15.               
Indemnification. Company shall indemnify, defend and hold EROP and
its affiliates harmless with respect to all obligations of Company arising from or incident or related to this Agreement, including,
without limitation, any claim or action brought derivatively or by the Seller or shareholders of Company

 

16.               
Legal Effect. The parties to this Agreement represent that each of
them has been advised as to the terms and legal effect of this Agreement and the Order provided for herein, and that the settlement
and com promise stated herein is final and conclusive forthwith, subject to the conditions stated herein, and each attorney represents
that his or her client has freely consented to and authorized this Agreement after have been so advised.

 

17.               
Waiver of Defense. Each party hereto waives a statement of decision,
and the right to appeal from the Order after its entry. Company further waives any defense based on the rule against splitting
causes of action. The prevailing party in any motion to enforce the Order shall be awarded its reasonably attorney fees and expenses
in connection with such motion. Except as expressly set forth herein, each party shall bear its own attorneys' fees, expenses and
costs.

 

18.               
Signatures. This Agreement may be signed in counterparts and the Agreement,
together with its counterpart signature pages, shall be deemed valid and binding on each party when duly executed by all parties.
Facsimile and electronically scanned signatures shall be deemed valid and binding for all purposes. This Agreement may be amended
only by an instrument in writing signed by the party to be charged with enforcement thereof. This Agreement supersedes all prior
agreements and understandings among the parties hereto with respect to the subject matter hereof

 

19.               
 Choice of Law, Etc. Notwithstanding the place
where this Agreement may be executed by either of the parties, or any other factor, all terms and provisions hereof shall be governed
by and construed in accordance with the laws of the State of Florida, applicable to agreements made and to be fully performed in
that State and without regard to the principles of conflicts of laws thereof. Any action brought to enforce, or otherwise arising
out of this Agreement shall be brought only in State Court sitting in Miami Dade County, Florida

    	5

    	 

    

20.               
Exclusivity. For a period of the later of one hundred eighty (180)
days from the date of the execution of this Agreement or upon EROP's final sale of all shares of stock issued pursuant hereto subsequent
to final adjustment; (a) Company and its representatives shall not enter into any exchange transaction under Section 3(a)(l0) of
the Securities Act nor directly or indirectly discuss, negotiate or consider any proposal, plan or offer from any other party relating
to any liabilities, or any financial transaction having an effect or result similar to the transactions contemplated hereby, and
(b) EROP shall have the exclusive right to negotiate and execute definitive documentation embodying the terms set forth herein
and other mutually acceptable terms.

 

21.               
Inconsistency. In the event of any inconsistency between the terms
of this Agreement and any other document executed in connection herewith, the terms of this Agreement shall control to the extent
necessary to resolve such inconsistency

 

22.               
NOTICES. Any notice required or permitted hereunder shall be given
in writing (unless otherwise specified herein) and shall be deemed effectively given on the earliest of

 

(a)                             
the date delivered, if delivered by personal delivery as against written
receipt therefore or by confirmed facsimile transmission,

 

(b)                               
the seventh business day after deposit, postage prepaid, in the United
States Postal Service by registered or certified mail, or

 

(c)                               
the second business day after mailing by domestic or international
express courier, with delivery costs and fees prepaid,in each case, addressed to each of the other parties thereunto entitled at
the following addresses (or at such other addresses as such party may designate by ten (10) days' advance written notice similarly
given to each of the other parties hereto):

 

Company:

 

Alkame
Holdings, Inc.

Robert
Eakle CEO

3651 Lindell
Road

Suite D
#356

Las Vegas,
NV 89103

Tel: 

Fax: 

Email:

 

with a
copy to:

 

Stuart
Reed, Esq.

Law &
Mediation, LLC

3001 W.
Hallandale Beach Blvd.

Suite 304

Hallandale
Beach, Florida 33009

Tel:(954)
874-2935

Fax:(877)
937-9475

Email:StuartReedEsq@aol.com

Florida
Bar No.:0966312

    	6

    	 

    

EROP Capital
LLC 

Attn: 

327 Dahlonega
Road

Suite 1701b

Cumming,
Georgia 30040 

Tel:

Fax:

Email:

 

 

and

 

Laura Anthony,
Esq.

Legal &
Compliance, LLC

330 Clematis
Street

Suite 217

West Palm
Beach, Florida 33401

Tel:(561)
514-0936

Fax:(561)
514-0832

Email:LAnthony@LegalandCompliance.com

Florida
Bar No. 994049

 

IN WITNESS
WHEREOF, the parties have duly executed this Settlement Agreement and Stipulation as of the date first indicated above.

 

 

EROP Capital
LLC 

 

 

By: /s/
Authorized Signatory

Name :

Title:

 

Alkame
Holdings, Inc.

 

By: /s/
Authorized Signatory

Name :

Title:

    	7

    	 

    

SCHEDULE
A

 

	
        Seller
	
        Nature of Claim
	
        Amount 

	
         Clark Corporate Law Group
	
        Invoice
	
         $42,059.06 (U.S.)

	Connected Beverage Group	
        Invoice 
	$3986.00 (U.S.)
	Live Call	
        Invoice 
	$33,020.00 (U.S.)
	
        NextLevel Technologies 
	
        Invoice 
	$6,000.00 (U.S.)
	Soy Sauce Media	
        Invoice 
	
        $18,100.00 (U.S.)

	Sycamore Capital	Invoice	$25,000.00 (U.S.)
	Unishippers	Invoice	$5,857.14 (U.S.)
	XBRL	
        Invoice 
	$42,995.00 (U.S.)
	Xtreme Technologies, Inc.	Contract	$525,000.00 (U.S.)
	Xtreme Technologies, Inc.	Invoice	$22,029.66 (U.S.)
	StreetCapital	Invoice	$72,404.69 (U.S.)

    	8EXHIBIT 10.1

 

 EXHIBIT 10.1
 

 

 ACCUREXA INC.
 

 CONSULTING AGREEMENT
 

 This Consulting Agreement (this “Agreement”) is dated and effective as of January 12, 2015 (the “Effective Date”), between ACCUREXA INC., a Delaware company (the “Company”) and LIM DEVELOPMENT GROUP, a California corporation (“Consultant”).
 

 RECITALS
 

 WHEREAS, the Company desires to retain Consultant to provide certain services as provided herein and Consultant is willing to provide such services to the Company pursuant to the terms and conditions set forth in this Agreement.
 

 NOW THEREFORE, in consideration of the following terms, conditions and agreements of the parties and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
 

 AGREEMENT
 

 1.
 Engagement.  The Company hereby engages Consultant to provide the Services set forth in Section 2 below and Consultant accepts such engagement pursuant to the terms of this Agreement.
 

 2.
 Services.
 

 (a)
 Consultant shall provide the following services (the “Services”) to the Company:
 (i)
 Scientific advisory in the development, partnering and commercialization of the Microinjection Brain Catheter [UC Case No. SF2012-063] that the Company has licensed from the Regents of the University of California.
 (ii)
 Serve as a member of the Company’s Scientific Advisory Board.
 (iii)
 Scientific and technical presentation of the Microinjection Brain Catheter to potential customers and investors.
 

 (b)
 Consultant shall perform the Services in accordance with all applicable laws, rules and regulations.
 

 (c)
 Consultant is retained by the Company only for the purpose and to the extent set forth in this Agreement and Consultant’s relationship to the Company shall, during the Term (as defined below), be that of an independent contractor.  Consultant may not enter into any agreement, understanding or other commitment that is binding on the Company, or represent to any third party or imply in any way that Consultant has such authority.
 

 (d)
 The parties agree and acknowledge that (i) Daniel Lim (“Lim”), Consultant’s principal and sole shareholder, is presently employed by the University of 
 

 

 CONSULTING AGREEMENT BETWEEN ACCUREXA INC. AND LIM DEVELOPMENT GROUP
 

 -1-
 

 
 California, San Francisco School of Medicine (“UCSF”), (ii) as of the Effective Date, Lim intends to remain employed by UCSF for the foreseeable future, (iii) Lim is bound by and subject to various rules and regulations governing activities to be performed outside of Lim’s employment with UCSF, including, without limitation, the confidential “University of California, San Francisco School of Medicine Implementing Guidelines for the Health Sciences Compensation Plan” (the “UCSF Plan”), (iv) it is the parties’ intent and understanding that the consideration to be provided to Consultant for the Services is consistent with and permitted by the terms of Lim’s employment with UCSF, including, without limitation, the provisions of the UCSF Plan and (v) the parties agree to take whatever actions are reasonably necessary to insure that the consideration to be provided hereunder for the Services complies with the terms of Lim’s employment with UCSF, including, without limitation, the UCSF Plan, such actions to include, but not be limited to, modifications to the consideration so as to effect the economic agreement of the parties in a manner that is consistent with Lim’s employment with UCSF, including, without limitation, the USCF Plan.
 

 3.
 Consideration; Expenses.  The consideration for the Services shall consist of the following, subject to Section 2(d) above:
 

 (a)
 Project Fee.  For each project regarding which Consultant will provide the Company with any advice, consultation or other service, Consultant shall receive a cash fee (the “Project Fee”) equal to no less than ten percent of the project value, such value shall be equal to no less than the amount of cash invested in such project by the Company and any other parties.  The precise amount of the Project Fee shall be negotiated on a project-by-project basis, with each such Project Fee to be agreed upon by the parties no less than ten business days prior to the commencement of any work on such project by Consultant.  The Project Fee for each project shall be paid in equal monthly installments from the commencement of Consultant’s work on each such project.
 

 (b)
 Other Fees.  In addition to the Project Fee, for specific research and development and regulatory projects, Consultant shall receive either an hourly rate of $[500-1,000] per hour or a Project Fee, either of which will be determined and agreed upon by Consultant and the Company prior to commencement of any such work on such projects.
 

 (c)
 Promissory Note.  Concurrently with the execution and delivery of this Agreement, the Company shall issue to Lim or another individual appointed by Consultant a promissory note in the form attached hereto as Exhibit A (the “Note”).  The parties agree and acknowledge that it is their mutual understanding and intent that the terms of the Note and its issuance are permitted by the UCSF Plan without the requirement of the payment of any sums or other obligations owed by Consultant or Lim to UCSF as a result of the issuance of the Note.  If it is ultimately determined that the issuance of the Note causes Consultant or Lim to incur liability to UCSF, the parties agree to negotiate in good faith to agree upon alternative consideration that is consistent with the economic terms of the Note and that is consistent with and permitted by the terms of the UCSF Plan without payment to UCSF of any fee, consideration or other obligations by Consultant or Lim.
 

 

 

 CONSULTING AGREEMENT BETWEEN ACCUREXA INC. AND LIM DEVELOPMENT GROUP
 

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 (d)
 The Company shall pay all expenses of Consultant incurred in connection with the performance of the Services.  The Company shall pay all such expenses promptly upon receipt of a written request for such payment from Consultant, and in any event within 15 days of receipt of such written request.
 

 4.
 Term and Termination.  
 

 (a)
 This term of this Agreement shall commence on the Effective Date and shall continue in effect until the second anniversary of the Effective Date (the “Term”).  The Term may be extended by mutual agreement of the parties.
 

 (b)
 Either party may terminate this Agreement prior to the end of the Term immediately on written notice only if the other party commits a material breach.
 

 (c)
 The rights and obligations of the parties set forth in Section 5, Section 6 and Section 7 shall survive the termination of this Agreement.
 

 5.
 Confidentiality.  Consultant acknowledges that Company has previously or may subsequently disclose to Consultant, and Consultant may obtain access to, certain proprietary information of Company, including, without limitation, intellectual property, business plans, client lists, client information, business methods, technical information, financial information, promotional material, know-how and other procedures (hereinafter referred to as “Confidential Information”). Consultant further acknowledges that all such Confidential Information is and shall remain the exclusive property of Company. Consultant agrees to keep such Confidential Information in confidence and further agrees that it will not disclose to third parties any of the Confidential Information which the Company has disclosed or will disclose to it or to which it has been or will be given access, or use any such Confidential Information in any way either during the Term or at any time thereafter, except in the performance of its obligations hereunder. For the purpose of this Agreement, Confidential Information will not include (i) information which is in the public domain at the time of disclosure to Consultant or which, through no fault of Consultant, becomes part of the public domain after disclosure by Company to Consultant, (ii) information which Consultant can prove by reasonable written evidence was lawfully previously known by Consultant at the time of disclosure by Company without an obligation of confidentiality, and (iii) information obtained by Consultant in good faith from a third party who legally has a right to disclose such information to Consultant.  Furthermore, Consultant will not be considered to be in breach of this Agreement for disclosing information which Consultant is compelled to disclose pursuant to a subpoena or order of any court or government agency or other legal process. Consultant agrees to notify promptly the Company of such compelled disclosure and to cooperate with the Company, at the Company’s expense, in efforts by the Company to protect the confidentiality of the information that is the subject of such subpoena or order.  Upon termination of this Agreement, Consultant agrees to destroy or to return to the Company any and all information and data of the Company, whether in electronic or other form (including any copies), communicated or otherwise imparted to Consultant by the Company or to which Consultant gained access in connection with the performance of its duties hereunder, together with all of notes, work papers, memorandum, extracts and other materials, in written or electronic format, prepared by or for Consultant based upon the Confidential Information.
 

 

 CONSULTING AGREEMENT BETWEEN ACCUREXA INC. AND LIM DEVELOPMENT GROUP
 

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 6.
 Indemnification.
 

 (a)
 The Company agrees to indemnify, defend and hold harmless Consultant, and each of Consultant’s directors, officers, employees, shareholders, other constituents, attorneys and agents (collectively, the “Consultant Affiliates”) from and against any and all losses, liabilities, damages and expenses, including, without limitation, reasonable attorneys’ fees and litigation costs, arising from or related to any claim brought against Consultant or any of the Consultant Affiliates by a third party arising from or relating to the acts or omissions of the Company, unless primarily attributable to the willful misconduct or gross negligence of Consultant in the performance of the Services.
 

 (b)
 Consultant agrees to indemnify, defend and hold harmless the Company and each of the Company’s directors, officers, employees, stockholders, other constituents, attorneys and agents (collectively, the “Company Affiliates”) from and against any and all losses, liabilities, damages and expenses, including, without limitation, reasonable attorneys’ fees and litigation costs, arising from or related to any claim brought against the Company or any of the Company Affiliates by a third party relating to the material breach by Consultant of any of Consultant’s obligations or representations set forth in this Agreement, unless primarily attributable to the willful misconduct or gross negligence of the Company.
 

 (c)
 A party that is entitled to indemnification hereunder (“Indemnitee”) shall promptly notify the other party (“Indemnitor”) in writing of any and all claims brought against it for which it intends to seek indemnification hereunder and Indemnitor shall assume the defense of such claims through counsel of the Indemnitor’s choosing reasonably satisfactory to Indemnitee. Notwithstanding the foregoing, if Indemnitee reasonably believes that counsel selected by Indemnitor has a conflict of interest, Indemnitee may select its own counsel and Indemnitor will reimburse Indemnitee on demand for all costs and expenses of such counsel. Indemnitee shall provide such assistance in the defense of the claims as Indemnitor may reasonably request, at Indemnitor’s expense. Indemnitor may not agree to any settlement of a claim brought against Indemnitee without Indemnitee’s prior written consent unless such settlement involves both (i) solely the payment of money by Indemnitor with no admission of liability on the part of Indemnitee and (ii) a complete release of claims against the Indemnitee by the claimant(s).
 

 7.
 Miscellaneous.
 

 (a)
 Entire Agreement. This Agreement contains the entire agreement of the parties, and supersedes and cancels all prior agreements and understandings, written and oral, regarding the subject matter of this Agreement. This Agreement is binding upon and inures to the benefit of the parties hereto and their respective successors, permitted assigns, heirs and personal representatives.
 

 (b)
 Amendment. No amendment or supplement to this Agreement shall be effective unless in writing and signed by both of the parties.
 

 

 

 CONSULTING AGREEMENT BETWEEN ACCUREXA INC. AND LIM DEVELOPMENT GROUP
 

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 (c)
 Waiver. No waiver by either party of any of its rights under or arising from this Agreement shall be effective unless in writing and signed by the party granting such waiver. No failure by either party to exercise any of such party’s rights hereunder or to insist upon strict compliance with respect to any obligation hereunder, and no custom or practice of the parties at variance with the terms hereof, shall constitute a waiver by either party to demand exact compliance with the terms hereof. A waiver by either party of any particular default by the other party shall not affect or impair such party’s rights in respect to any subsequent default of the same or a different nature, nor shall any delay or omission of either party to exercise any rights arising from any default by the other party affect or impair such party’s rights as to such default or any subsequent default.
 

 (d)
 Assignment. The rights and duties of the parties hereunder shall not be assignable by either party, except that the Company may assign this Agreement and all rights and obligations hereunder to any party that succeeds to all or substantially all of the business of the Company through merger, consolidation or corporate reorganization or by acquisition of all or substantially all of the assets of the Company.
 

 (e)
 Severability. If any provision of this Agreement or any part of any provision, or the application of this Agreement or any part hereof to any party or circumstance, shall be finally determined by a court of competent jurisdiction to be invalid or unenforceable to any extent, the application of the remainder of such provision to parties or circumstances other that those as to which it has been held invalid or unenforceable shall not be affected thereby and each provision of this Agreement shall remain in full force and effect to the fullest extent permitted by law so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party. The parties also agree that, if any portion of this Agreement or any part thereof, or any application of this Agreement or any part hereof to any party or circumstance shall be finally determined by a court of competent jurisdiction to be invalid or unenforceable to any extent, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible, and in addition any court may so modify the objectionable provision as necessary to make it valid, reasonable and enforceable.
 

 (f)
 Notices. All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in writing and delivered to each party by facsimile, electronic mail, mail, overnight delivery courier or personal delivery at the respective addresses of the parties as set forth on the signature pages hereto, or at such other address or facsimile number as the Company shall have furnished to the Investor in writing or as the Investor shall have furnished to the Company in writing.  All such notices and communications will be deemed effectively given upon the earliest of (i) when received, (ii) when delivered personally, (iii) one business day after being delivered by facsimile or electronic mail (with receipt of appropriate confirmation), if such delivery is made during the normal business hours of the recipient, and if such delivery is made after normal business hours of the recipient, two business days after such delivery; (iv) when sent by overnight delivery, one business day after being deposited with an overnight courier service of recognized standing, if such deposit is made during the normal business hours of the sender, and if such deposit is made 
 

 

 CONSULTING AGREEMENT BETWEEN ACCUREXA INC. AND LIM DEVELOPMENT GROUP
 

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 after the normal business hours of the sender, then two business days after such deposit; and (v) when mailed by registered or certified mail, first class postage prepaid and addressed as aforesaid through the United States Postal Service, four business days after being so deposited in the U.S. mail.  Either party may change the address to which notices to such party may be given hereunder by serving proper notice of such change of address to the other party in accordance with the terms of this Section 7(f).
 

 (g)
 Governing Law. This Agreement shall be governed by and construed under the internal laws of the State of California in all respects as such laws are applied to agreements among California residents entered into and performed entirely within California, without giving effect to the conflicts of law principles of California or of any other jurisdiction.
 

 (h)
 Venue. Any and all suits for any and every breach of this Agreement may be instituted and maintained in any state or federal court of competent jurisdiction located in the City and County of San Francisco, and the parties hereto consent to the jurisdiction and venue in such courts and the service of process by certified or registered mail, or nationally recognized express courier, to the addresses for the parties provided for notices herein.
 

 (i)
 Headings. The Section headings used in this Agreement have been inserted for reference purposes only and shall have no significance in the interpretation of this Agreement.
 

 (j)
 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and which together shall constitute one and the same instrument.   Counterparts may be delivered by facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com ) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 
 

 (k)
 Joint Preparation. This Agreement has been subject to arm’s length negotiation by the parties. The parties irrevocably waive and agree that no presumption arising by operation of law attributable to the authorship of this Agreement shall be applicable.  
 

 

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 CONSULTING AGREEMENT BETWEEN ACCUREXA INC. AND LIM DEVELOPMENT GROUP
 

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 IN WITNESS WHEREOF, of the parties have executed this Agreement as of the Effective Date.
 

 COMPANY:
 

 ACCUREXA INC.
 

 

 By:
 /s/ George Yu
 George Yu
 President and Chief Executive Officer
 

 

 

 CONSULTING AGREEMENT BETWEEN ACCUREXA INC. AND LIM DEVELOPMENT GROUP
 

 
 IN WITNESS WHEREOF, of the parties have executed this Agreement as of the Effective Date.
 

 CONSULTANT:
 

 LIM DEVELOPMENT GROUP
 

 

 By:
 /s/ Daniel Lim
 Daniel Lim
 President and Chief Executive Officer
 

 

 

 

 

 CONSULTING AGREEMENT BETWEEN ACCUREXA INC. AND LIM DEVELOPMENT GROUP
 

 
 EXHIBIT A
 

 SECURED CONVERTIBLE PROMISSORY NOTE
 

 

 

 

 CONSULTING AGREEMENT BETWEEN ACCUREXA INC. AND LIM DEVELOPMENT GROUP
 

 A-1

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