README example is broken

[Holt59]

When trying to run the README example, I get the following error:

TypeError: ('Keyword argument not understood:', 'k_coef_lip')

Model should probably replaced by Sequential.

[Holt59]

Actually, I think there are other things broken in the example, might be a good idea to fix everything and maybe add a .fit call using MNIST from Keras so one can copy/paste the whole block and just run it.