SEC Contract Filing

Filing Date: 2021-12-06

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>e14762ex10-1.htm
<DESCRIPTION>SETTLEMENT AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
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<BODY>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: right"><B>Exhibit 10.1</B></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 2.05pt 157.15pt 0 158.7pt; text-align: center"><U>SETTLEMENT AGREEMENT</U></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 3.05pt 7.8pt 0 7.95pt; text-indent: 0.5in">This Settlement Agreement (&#8220;Agreement&#8221;)
is entered into as of the date of the last signature to this Agreement (&#8220;Effective Date&#8221;), by and between <B>VPR BRANDS, LP
</B>(&#8220;VPR&#8221;), a Delaware limited partnership authorized to do business in Florida with a principal place of business located
at 3001 Griffin Road, Fort Lauderdale, FL 33312 on the one hand; and <B>NEPA 2 WHOLESALE, LLC </B>(&#8220;NEPA&#8221;), a Florida limited
liability company with a principal place of business at 3346 45th Street, West Palm Beach, FL 33407, on the other hand. Each of the foregoing
may be referred to hereafter as a &#8220;Party&#8221;, and together as the &#8220;Parties.&#8221;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.05pt 0 0 43.95pt">WHEREAS, VPR and NEPA are parties to a lawsuit captioned
<I>VPR Brands, LP. v.</I></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 22.85pt 0 7.95pt"><I>HQDTECH USA, LLC and NEPA 2 Wholesale, LLC</I>, Civil
Action No. 21-cv-21678, which is currently pending in the United States District Court for the Southern District of Florida</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 7.95pt">(the &#8220;Action&#8221;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 7.95pt; text-indent: 0.5in">WHEREAS, VPR alleges patent infringement
of United States Patent No. 8,205,622 (the &#8220;&#8216;622 Patent&#8221;), which allegations NEPA denies and to which NEPA raises affirmative
defenses and counterclaims of non-infringement, invalidity and unenforceability of the &#8216;622 Patent, among others;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.5pt 0 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 14.8pt 0 7.95pt; text-indent: 0.5in">WHEREAS, VPR desires to license the
&#8216;622 Patent and related patents and applications to NEPA, and NEPA desires to acquire a license to such intellectual property as
hereinafter provided;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 7.8pt 0 7.95pt; text-indent: 0.5in">WHEREAS, the Parties hereto both desire
a mutually beneficial, dispute-avoiding arrangement;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 26.75pt 0 7.95pt; text-indent: 0.5in">WHEREAS, VPR and NEPA wish to settle
and compromise the Action, and all other claims, demands, and controversies between them relating to the Action;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 30.9pt 0 7.95pt; text-align: justify; text-indent: 0.5in">NOW THEREFORE
and in consideration of the terms and conditions hereinafter set forth and for other good and valuable consideration, the receipt and
sufficiency of which are hereby mutually acknowledged, the Parties<SUP>1</SUP> agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 7.9pt"></TD><TD STYLE="width: 36.05pt"><FONT STYLE="font-size: 12pt">1.</FONT></TD><TD><FONT STYLE="font-size: 12pt"><U>Recitals</U>.</FONT></TD></TR></TABLE>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 3.05pt 22.85pt 0 8pt; text-indent: 0.5in">The foregoing recitals are true
and correct, incorporated herein and made a part of this Agreement.</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 8pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-size: 12pt">2.</FONT></TD><TD><FONT STYLE="font-size: 12pt"><U>Settlement Payment by NEPA</U></FONT></TD></TR></TABLE>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 3pt 7.8pt 0 8pt; text-indent: 0.5in">Each Party shall bear its own attorneys&#8217;
fees and costs relating to the Action, and each party waives any and all claims for monetary relief related to the Action. Notwithstanding
the foregoing, NEPA shall pay VPR the sum of Two Hundred and Seventy-Five Thousand ($275,000.00) (the &#8220;Settlement Sum&#8221;) within
14 days after the Effective Date. Payment shall be</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="margin: 0"><IMG SRC="image_001.gif" ALT="" STYLE="width: 192px; height: 1px"></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 5.55pt 0 0 7.95pt; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><SUP>1</SUP>
Although NEPA WHOLESALE INC. and ESHOP NEPA INC. are not named