Document:

Exhibit 10.1

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (the “Agreement”)
is made and entered into effective the 10th day of June, 2016, by and between Waterford Group LLC (the “Consultant”),
whose principal place of business is 18865 State Road 54, Suite 110, Lutz, FL 33558, and Gopher Protocol Inc (the “Client”),
whose principal place of business is 23129 Cajalco Road, Perris, CA 92570.

 

WHEREAS, Consultant is an independent
sales representative and is in the business of providing sales and marketing services; and

 

WHEREAS, the Client deems it to
be in its best interest to retain Consultant to render to the Client such services as may be needed; and

 

WHEREAS, Consultant is ready, willing
and able to render such consulting and advisory services to Client.

 

NOW THEREFORE, in consideration
of the mutual promises and covenants set forth in this Agreement, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.          
Consulting Services.  The Client desires to engage Consultant in connection with the Services (as defined below).
In consultation with management of the Client, Consultant shall serve as an independent Sales and Marketing Representative for
Client to provide sales and marketing services on behalf of Client in such capacity and/or perform such other duties as shall be
directed by the Client (collectively, the "Services"). In performing the Services, Consultant shall report to such person
as may, from time to time, be designated by the Client’s chief executive officer. Consultant shall not have any authority
to execute contracts or make any commitments on behalf of the Client. Consultant accepts the engagement provided in this Agreement
and agrees to perform the Services in a professional manner, diligently, in good faith, in a manner consistent with the best interests
of the Client.

 

It is acknowledged and agreed by the Client
that Consultant carries no professional licenses, and is not rendering legal advice or performing accounting services, nor acting
as an investment advisor or brokerage/dealer within the meaning of the applicable state and federal securities laws.  The
services of Consultant shall not be exclusive to Client nor shall Consultant be required to render any specific number of hours
or assign specific personnel to the Client or its projects.

 

2.          Independent
Contractor.  Consultant agrees to perform the Services hereto as an independent contractor.  Nothing contained
herein shall be considered to as creating an employer-employee relationship between the parties to this Agreement.  The
Client shall not make social security, worker’s compensation or unemployment insurance payments on behalf of Consultant.  The
parties hereto acknowledge and agree that Consultant cannot guarantee the results or effectiveness of any of the services rendered
or to be rendered by Consultant.  Rather, Consultant shall conduct its operations and provide its services in a professional
manner and in accordance with good industry practice.  Consultant will use its best efforts and does not promise results.

 

     

     

    

 

3.          Time,
Place and Manner of Performance.  The Consultant shall be available for advice and counsel to the officers and directors
of the Client as such reasonable and convenient times and places as may be mutually agreed upon.  Except as aforesaid,
the time, place and manner of performance of the services hereunder, including the amount of time to be allocated by the Consultant
to any specific service, shall be determined at the sole discretion of the Consultant.

 

4.          Term;
Termination of this Agreement.  The Term of this Agreement shall be for a period of two (2) years (the “Term”).
Client may terminate this Agreement at any time and all responsibilities of Client shall be immediately terminated as of such date.

 

5.          Compensation.
In consideration of providing the Services, Consultant shall receive the following consideration:

 

(a) A common stock
purchase warrant to acquire 750,000 shares of common stock of the Client at an exercise price of $2.25 per share for a period of
five (5) years (the "Warrant"). The Warrant shall vest on a quarterly basis in eight (8) equal quarterly installments
each in the amount of 93,750 shares during the Term. The first quarterly installment shall vest upon the execution of this Agreement,
shall cover the second quarter of 2016 and shall be issued upon the execution of this Agreement. Each subsequent quarterly installment
shall vest each quarter thereafter, on the first day of each quarter during the Term. In the event the Agreement is terminated
by the Client prior to the end of the Term, any unvested shares underlying the Warrant shall not vest to Consultant and shall be
terminated; and

 

(c) 100,000 shares
of restricted common stock of the Client (the "Shares") to be issued to Consultant, in aggregate, pursuant to the following
schedule: Consultant shall receive 50,000 of the Shares for the second quarter of 2016 upon the execution of this Agreement and
12,500 of the Shares shall be issued to Consultant each quarter thereafter, on the first day of each calendar quarter during the
Term.

 

6.          Accredited
Investor Status. Consultant represents that it is an accredited investor as that term is defined by Regulation D as promulgated
under the Securities Act of 1933, as amended (the “Act”), and all compensation in the form of securities of the Client
issued to Consultant under Section 5 of this Agreement shall be issued under Section 4(2) of the Act.

 

7.          Work
Product.  It is agreed that all information and materials produced for the Client shall be the property of the Client,
free and clear of all claims thereto by the Consultant.

 

8.          Confidentiality.  The
Consultant recognizes and acknowledges that it has and will have access to certain confidential information of the Client and its
affiliates that are valuable, special and unique assets and property of the Client and such affiliates.  The Consultant
will not, during the term of this Agreement, disclose, without the prior written consent or authorization of the Client, any of
such information to any person, for any reason or purpose whatsoever.  In this regard, the Client agrees that such authorization
or consent to disclose may be conditioned upon the disclosure being made pursuant to a secrecy agreement, protective order, provision
of statute, rule, regulation or procedure under which the confidentiality of the information is maintained in the hands of the
person to whom the information is to be disclosed or in compliance with the terms of a judicial order or administrative process.

 

9.          Conflict
of Interest; Non-Competition.  The Consultant shall be free to perform services for other persons who are not
in competition with the principal business activities of the Client.  The Consultant will notify the Client of its
performance of consultant services for any other person, which could potentially conflict with its obligations under the
Agreement.  Upon receiving such notice, the Client may give 15-day written notice of its intent to terminate this
Agreement pursuant to Section 7 of this Agreement, or consent to the Consultant’s outside consulting activities;
failure to provide notice of intent to terminate this Agreement within 30 business days of receipt of written notice of
potential conflict shall constitute the Client’s ongoing consent to the Consultant’s outside consulting
services.

 

     

     

    

 

10.         Disclaimer
of Responsibility for Act of the Client.  In no event shall Consultant be required by this Agreement to represent
or make management decisions for the Client.  Consultant shall under no circumstances be liable for any expense incurred
or loss suffered by the Client as a consequence of such decisions, made by the Client or any affiliates or subsidiaries of the
Client.

 

11.         
Indemnification.

 

	 	A.	The Client shall protect, defend, indemnify and hold Consultant and its assigns and attorneys, accountants, employees, officers and director harmless from and against all losses, liabilities, damages, judgments, claims, counterclaims, demands, actions, proceedings, costs and expenses (including reasonable attorneys’ fees) of every kind and character resulting from, relating to or arising out of (i) the inaccuracy, non-fulfillment or breach of any representation, warranty, covenant or agreement made by the Client herein, (ii) negligent or willful misconduct, occurring during the term thereof with respect to any of the decisions made by the Client.
	 	 	 
	
         

         
	B.	The Consultant shall protect, defend, indemnify and hold Client and its assigns and attorneys, accountants, employees, officers and director harmless from and against all losses, liabilities, damages, judgments, claims, counterclaims, demands, actions, proceedings, costs and expenses (including reasonable attorneys’ fees) of every kind and character resulting from, relating to or arising out of (i) the inaccuracy, non-fulfillment or breach of any representation, warranty, covenant or agreement made by the Consultant herein, or (ii) negligent or willful misconduct, occurring during the term thereof with respect to any of the decisions made by the Consultant.

 

12.         Notices.  Any
notices required or permitted to be given under this Agreement shall be sufficient if in writing and delivered or sent by registered
or certified mail, or by Federal Express or other recognized overnight courier to the principal office of each party.

 

13.         Waiver
of Breach.  Any waiver by either party or a breach of any provision of this Agreement by the other party shall not
operate or be construed as a waiver of any subsequent breach by any party.

 

14.         Assignment.  This
Agreement and the right and obligations of the Consultant hereunder shall not be assignable without the written consent of the
Client.

 

15.         Applicable
Law.  It is the intention of the parties hereto that this Agreement and the performance hereunder and all suits and
special proceedings hereunder be construed in accordance with and under and pursuant to the laws of the State of California and
that in any action, special proceeding or other proceedings that may be brought arising out of, in connection with or by reason
of this Agreement, the law of the State of California shall be applicable and shall govern to the exclusion of the law of any other
forum, without regard to the jurisdiction on which any action or special proceeding may be instituted.

 

     

     

    

 

16.         Severability.  All
agreements and covenants contained herein are severable, and in the event any of them shall be held to be invalid by any competent
court, the Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein.

 

17.         Entire
Agreement.  This Agreement constitutes and embodies the entire understanding and agreement of the parties and supersedes
and replaces all other or prior understandings, agreements and negotiation between the Parties.

 

18.         Waiver and Modification.  Any waiver, alteration, or modification of any of the provisions of this Agreement shall
be valid only if made in writing and signed by the parties hereto.  Each party hereto, may waive any of its rights hereunder
without affecting a waiver with respect to any subsequent occurrences or transactions hereof.

 

19.         Binding Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be
settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment
on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.  The arbitration
shall be conducted in Riverside County, California.

 

20.         Counterparts
and Facsimile Signature.  This Agreement may be executed simultaneously in two or more counterparts, each of which
shall be deemed an original, but all of which taken together shall constitute one and the same instrument.  Execution
and delivery of this Agreement by exchange of facsimile copies bearing the facsimile signature of a party hereto shall constitute
a valid and binding execution and delivery of this Agreement by such party.  Such facsimile copies shall constitute enforceable
original documents.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

 

IN WITNESS WHEREOF,
the parties hereto have duly executed and delivered this Agreement, effective as of the date set forth above.

 

CONSULTANT:

WATERFORD GROUP LLC

 

	By:	/s/Peter Berkman	 
	Name: Peter Berkman	 
	Title:  Managing Member	 
	 	 
	CLIENT:	 
	GOPHER PROTOCOL, INC.	 
	 	 	 
	By:	/s/Michael Murray	 
	Name: Michael Murray	 
	Title: CEO	 
	 	 
	PAYMENT INSTRUCTIONS:	 
	 	 
	Waterford Group, LLC	 
	c/o Peter Berkman, Esq.	 
	18865 SR 54 # 110	 
	Lutz, FL  33558Exhibit

EXHIBIT 4
INFORMATION FOR INVESTORS
New Securitization Facility Borrowings
On November 7, 2012, certain members of the RGHL Group entered into a receivables loan and security agreement pursuant to which the RGHL Group can borrow up to $600 million (the “Securitization Facility”).  After the date of this report on Form 6-K, and on or about the date of the closing of the offering of the notes, we and certain subsidiaries intend to seek to incur additional borrowings in an amount of $140 million under the Securitization Facility (the “New Securitization Facility Borrowings”). We intend to use the New Securitization Facility Borrowings, along with the proceeds of the offering of the notes announced on the date of this report on Form 6-K and available cash, to (i) repay, redeem or discharge all of the October 2010 Senior Secured Notes, the August 2011 Senior Secured Notes, the May 2010 Senior Notes, the October 2010 Senior Notes and the 2013 Subordinated Notes, (ii) repay, redeem or discharge up to $691 million aggregate principal amount of the August 2011 Senior Notes and the February 2012 Senior Notes, (iii) pay related transaction costs and (iv) use the remaining proceeds, if any, for general corporate purposes. There can be no assurance that we will be able to incur the New Securitization Facility Borrowings. The offering of the notes announced on the date of this report on Form 6-K is not conditioned on the incurrence of the New Securitization Facility Borrowings.
Amendments to Senior Secured Credit Facilities
We may from time to time, including in the near future depending on market conditions and other factors, seek to amend our Senior Secured Credit Facilities to refinance the indebtedness that is currently outstanding thereunder and to amend certain terms of the Credit Agreement. We make no assurance, however, that we will be able to refinance this indebtedness on satisfactory terms or at all.
Release of Certain Existing Guarantors and Certain Grantors of Security Interests
After the date of this report on Form 6-K but likely prior to or shortly after the date of delivery of the notes offered in the transaction announced on the date of this report on Form 6-K, we plan to release subsidiaries in Brazil, Germany and Mexico from their obligations to guarantee and grant security interests in collateral to secure the payment of obligations under the Senior Secured Credit Facilities (the “Anticipated Release”).  If these guarantors and grantors of security interests in collateral are released from their obligations under the Senior Secured Credit Facilities, they will also be released from their guarantees of our Existing Notes and from their obligations to grant security interests in collateral under our Existing Senior Secured Notes.  These subsidiaries will not guarantee the notes or grant security interests in collateral to secure the senior secured notes offered in the transaction announced on the date of this report on Form 6-K if the Anticipated Release occurs prior to the time by which we anticipate certain of our foreign subsidiaries in Brazil, Germany and Mexico become guarantors.  If the Anticipated Release occurs after such subsidiaries have become guarantors, these subsidiaries in Brazil, Germany and Mexico will be released from their obligations to guarantee the notes and grant security interests in collateral to secure the senior secured notes at the time the Anticipated Release occurs.  If the Anticipated Release were to occur, all entities not guaranteeing the notes and not granting security interests to secure the senior secured notes would have represented 13% of the RGHL Group’s total assets as of March 31, 2016 and 10% of the RGHL Group’s Adjusted EBITDA for the twelve months ended March 31, 2016 and the subsidiaries released would have represented 2% of the RGHL Group’s total assets as of March 31, 2016 and 2% of the RGHL Group’s Adjusted EBITDA for the twelve months ended March 31, 2016.
RISK FACTOR

We face risks associated with certain pension obligations.

We have pension plans that cover many of our employees, former employees and employees of formerly affiliated businesses. Many of these pension plans are defined benefit pension plans, pursuant to which the participants receive defined payment amounts regardless of the value or investment performance of the assets held by such plans. Deterioration in the value of plan assets, including equity and debt securities, resulting from a general financial downturn or otherwise, or a change in the interest rate used to discount the projected benefit obligations, could cause an increase in the underfunded status of our defined benefit pension plans, thereby increasing our obligation to make contributions to the plans, which in turn would reduce the cash available for our business.

Our largest pension plan is the Pactiv Retirement Plan, of which Pactiv became the sponsor at the time of the Pactiv spin-off from Tenneco Inc. in 1999. This plan covers most of Pactiv's employees as well as employees (or their beneficiaries) of certain 

companies previously owned by Tenneco Inc. but not currently owned by us. As a result, while persons who are not current Pactiv employees do not accrue benefits under the plan, the total number of individuals/beneficiaries covered by this plan is much larger than if only Pactiv personnel were participants. For this reason, the impact of the pension plan on our net income and cash from operations is greater than the impact typically found at similarly sized companies. Changes in the following factors can have a disproportionate effect on our results of operations compared with similarly sized companies: (i) interest rate used to discount projected benefit obligations, (ii) governmental regulations related to funding of retirement plans in the United States and foreign countries, (iii) financial market performance and (iv) revisions to mortality tables as a result of changes in life expectancy. As of December 31, 2015, Pactiv's U.S. pension plan was underfunded by approximately $865 million and subsequent adverse financial market performance and decreases in interest rates may significantly increase this deficit. Future contributions to our pension plans, including Pactiv's U.S. pension plan, could reduce the cash otherwise available to operate our business and could have an adverse effect on our results of operations.

In addition, Evergreen and Pactiv Foodservice participated in the PACE Industry Union-Management Pension Fund (“PIUMPF”), a multi-employer pension plan that covers certain of their employees. Graham Packaging had withdrawn from this plan prior to its acquisition by the RGHL Group. Evergreen and Pactiv Foodservice reached agreements with the relevant unions in November 2013 to allow Evergreen and Pactiv Foodservice to withdraw from PIUMPF as of December 31, 2013. Pursuant to these agreements, we are required to make withdrawal liability payments to PIUMPF in amounts to be determined through future negotiations with PIUMPF. We currently estimate the payments to be approximately $5 million per year for 20 years. As a result, we have accrued a liability of $78 million as of December 31, 2015 for the present value of such future payments. However, the amount may change depending on the negotiations with PIUMPF. If PIUMPF suffers a “mass withdrawal” (as defined in the Employee Retirement Income Security Act) prior to January 1, 2016, our annual payment will continue until the end of the year in which the assets (exclusive of the withdrawal liability claims) are sufficient to meet all obligations, as determined by the Pension Benefit Guaranty Corporation (“PBGC”). As of the date of this offering circular, we have not received any notification that PIUMPF has suffered a mass withdrawal. If one did occur, the aggregate amount of our required payments could increase and the increase could be material.
Under U.S. pension laws, a company can be jointly and severally liable for certain pension obligations of other members within its controlled group if the employer that sponsors the plan does not pay. In addition, controlled group members can be liable if such a plan is terminated at a time when it is underfunded. Our controlled group includes UCI Holdings Limited (“UCI”) and Autoparts Holdings Limited and their subsidiaries, which are not part of our business. On June 2, 2016, UCI and certain of its affiliates filed Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. According to the declaration of Brian Whittman, Chief Restructuring Officer of UCI’s principal U.S. subsidiary, UCI and certain of its debtor affiliates sponsor three defined benefit pension plans that were underfunded by an aggregate amount of approximately $66 million at December 31, 2015. The bankruptcy of UCI and its affiliates may have a materially adverse effect on the funding of those plans. If the UCI pension plans are terminated, our potential aggregate joint and several liabilities (including PBGC premiums, unpaid contributions and penalties) as a member of the controlled group that includes UCI could be higher than $66 million.

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