SEC Contract Filing

Filing Date: 2024-07-19

Document Content:
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>9
<FILENAME>hfactor_ex1007.htm
<DESCRIPTION>SETTLEMENT AGREEMENT (RICHARD PROPPER)
<TEXT>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Exhibit 10.7</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF
ALL CLAIMS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.8pt 0pt 0; text-align: justify; text-indent: 0.5in">THIS SETTLEMENT
AGREEMENT WITH MUTUAL RELEASES (&ldquo;Settlement Agreement&rdquo;) is entered into on September 26, 2023, by and between HFactor, Inc.
(&ldquo;Company&quot;) and Richard Propper (&ldquo;Propper&rdquo;). Company and Propper are sometimes collectively referred to in this
Settlement Agreement as the &ldquo;Parties&rdquo; or, individually, as a &ldquo;Party.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.8pt 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RECITALS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.55pt 0pt 5pt; text-align: justify; text-indent: 0.5in">WHEREAS, the
Company has an outstanding promissory note with a current principal balance due and owing in the amount of $405,918 plus accrued interest
(the &ldquo;Note&rdquo;) payable to Propper; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.55pt 0pt 39pt; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.55pt 0pt 5pt; text-align: justify; text-indent: 0.5in">WHEREAS, the
Company is carrying accrued salary in the amount of $375,000 (the &ldquo;Salary&rdquo;) on its balance sheet for services rendered by
Propper; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.55pt 0pt 5pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.55pt 0pt 5pt; text-align: justify; text-indent: 0.5in">WHEREAS, the
Parties have negotiated a proposed settlement with respect to the Note and Salary and wish to formalize said proposal through this Settlement
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.55pt 0pt 5pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in consideration
of the covenants and agreements expressed herein, and the recitals set forth above, which form a part of, and are incorporated into this
Settlement Agreement, all of which constitutes good and valuable consideration, the Parties agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>AGREEMENT</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><FONT STYLE="display: inline-block; width: 0.5in; float: left; white-space:nowrap">1.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">
</FONT></FONT><B><U>Settlement Shares</U>.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in"><FONT STYLE="display: inline-block; width: 0.5in; float: left; white-space:nowrap">a)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">
</FONT><U>Series D Preferred Shares</U>. Company shall issue to Propper 100 restricted shares of Series D Preferred Stock (the &ldquo;Shares&rdquo;),
which equate to 1% of the Company&rsquo;s common stock on a fully diluted basis, within five (5) business days of the execution of this
Settlement Agreement in full payment and satisfaction of the Note and Salary. Upon issuance of the Shares, the Note, any interest accruing
thereon, and the Salary shall be deemed paid in full and the Company shall have the legal right and authority to remove the Note and Salary
from its books and records for the current fiscal reporting period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in"><FONT STYLE="display: inline-block; width: 0.5in; float: left; white-space:nowrap">b)</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">
</FONT><U>Legends</U>. Propper understands that until such time as the Shares have been registered under the 1933 Act or may be sold
pursuant to any applicable exemption without any restriction as to the number of securities as of a particular date that can then be
immediately sold, the Shares shall bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed
against transfer of the certificates for such Shares):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, T