Document:

Exhibit 10.1

 

AGREEMENT FOR SHARE EXCHANGE

This AGREEMENT FOR SHARE EXCHANGE (this “Agreement”) is entered into on June 27, 2017, with an effective date of the Effective Time (as defined below), by and among Titan Computer Services, Inc., Inc., a New York corporation (“Acquiring Company”), Altitude International, Inc., a Wisconsin corporation (“Target Company”), and each of the shareholders of Target Company identified on the signature pages hereto.  Such shareholders own 100% of the Shares and ownership interests in Target Company and are sometimes referred to herein as the “Shareholders.”

RECITALS

WHEREAS, Acquiring Company desires to acquire all of the Shares and ownership interests in Target Company in exchange for the consideration and upon the terms set forth below; and

WHEREAS, the Board of Directors of Acquiring Company and each of the shareholders and managers of Target Company have each approved the proposed transaction, contingent upon satisfaction prior to closing of all of the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, and the covenants, conditions, representations and warranties hereinafter set forth, the parties hereby agree as follows:

ARTICLE I

THE EXCHANGE

1.1 The Exchange.  At the Closing (as hereinafter defined), Acquiring Company shall acquire 100% ownership of Target Company.  Consideration to be paid by Acquiring Company shall be 6,102,000 shares of Acquiring Company’s common stock (the “Shares”), in exchange for 100% ownership of Target Company (such exchange of shares shall be referred to herein as the “Exchange”).  The Exchange shall take place upon the terms and conditions provided for in this Agreement and in accordance with applicable law.  Immediately following completion of the share exchange transaction through the issuance of the Shares, Acquiring Company shall have a total of 21,711,993 shares of its common stock issued and outstanding.  For federal income tax purposes, it is intended that the Exchange shall constitute a tax-free reorganization within the meaning of Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the “Code”).

1.2 Closing and Effective Time. Subject to the provisions of this Agreement, the parties shall hold a closing (the “Closing”) on (i) the first business day on which the last of the conditions set forth in Article V to be fulfilled prior to the Closing is fulfilled or waived, or (ii) at such time and place as the parties hereto may agree. Notwithstanding the foregoing, June 27, 2017, shall be considered the effective date of the Exchange for tax and accounting purposes (the “Effective Time”), but in no event shall the Closing occur later than June 27, 2017, unless both parties agree, in writing, to extend the Closing beyond that date.

1.3 Actions at Closing.  At Closing:

(a) The Shareholders shall execute and deliver to Acquiring Company 100% of the ownership of Target Company, and each of the Shareholders shall deliver the Assignments to Acquiring Company attached hereto as Exhibit A.

(b) The Acquiring Company shall deliver the Acceptance of Assignments attached hereto as Exhibit A.

(c) The Acquiring Company shall issue the Shareholders and other parties the Shares pursuant to the issuance instruction schedule attached hereto as Exhibit B.

(d) The parties to this Agreement further agree to execute, acknowledge and deliver such additional documents, take such additional actions and furnish such additional information as may be reasonably necessary to carry out fully the transactions contemplated by this Agreement.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

2.1 Representations and Warranties of Acquiring Company.  Acquiring Company represents and warrants to Target Company as follows:

(a) Organization, Standing and Power. Acquiring Company is or will be after the effective date a corporation duly organized, validly existing and in good standing under the laws of New York and has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted, and is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary except for any such failure, which when taken together with all other failures, is not likely to have a Material Adverse Effect.  “Material Adverse Effect” means any material adverse effect on the business, operations, assets, financial condition or prospects of Target Company or Acquiring Company, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith.

(b) Capitalization. As of the date of this Agreement, the authorized capital stock of the Acquiring Company consists of 75,000,000 shares, comprised of 5,000,000 shares of no par value preferred stock, none of which are issued or outstanding; and 70,000,000 shares of no par value common stock, of which 15,109,993 shares are issued and outstanding.

(c) Articles of Incorporation and Bylaws. Copies of the Acquiring Company’s Articles of Incorporation, as amended and restated, and Bylaws, which have been delivered to Target Company, are true, correct and complete copies thereof.

(d) Authority. Acquiring Company has all requisite power to enter into this Agreement and, subject to approval of the proposed transaction by its shareholders, has the requisite power and authority to consummate the transactions contemplated hereby. Except as specified herein, no 

other corporate or shareholder proceedings on the part of Acquiring Company are necessary to authorize the Exchange and the other transactions contemplated hereby.

 

(e) Conflict with Agreements; Approvals. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, conflict with, or result in any violation of any provision of the Articles of Incorporation or Bylaws of Acquiring Company or of any loan or credit agreement, note, mortgage, indenture, lease, benefit plan or other agreement, obligation, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Target Company or its properties or assets except for any such conflict or violation, which when taken together with all other conflict or violation, is not likely to have a Material Adverse Effect.  No consent, approval, order or authorization of, or registration, declaration or filing with, any governmental entity is required by or with respect to Acquiring Company in connection with the execution and delivery of this Agreement by Acquiring Company, or the consummation by Acquiring Company of the transactions contemplated hereby.

(f) Books and Records. Acquiring Company has made and will make available for inspection by Target Company upon reasonable request all the books of account, relating to the business of Acquiring Company. Such books of account have been maintained in the ordinary course of business. All documents furnished or caused to be furnished to Target Company by Acquiring Company are true and correct copies, and there are no amendments or modifications thereto except as set forth in such documents.

(g) Compliance with Laws.  Acquiring Company is and has been in compliance in all material respects with all laws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any governmental entity applicable to it, its properties or the operation of its businesses.

(h) Litigation. There is no suit, action or proceeding pending, or, to the knowledge of Acquiring Company threatened against or affecting Acquiring Company, which is reasonably likely to have a Material Adverse Effect on Acquiring Company, nor is there any judgment, decree, injunction, rule or order of any governmental entity or arbitrator outstanding against Acquiring Company having, or which, insofar as reasonably can be foreseen, in the future could have, any such effect.

(i) Taxes.  Acquiring Company has filed all tax returns and reports required to be filed as of the Closing with all other jurisdictions where such filing is required by law; and Acquiring Company has paid, or made adequate provision for the payment of all taxes, interest, penalties, assessments or deficiencies due and payable on, and with respect to such periods or accruing prior to Closing.  As of the Closing, Acquiring Company knows of (i) no other tax returns or reports which were required to be filed which have not been so filed and (ii) no unpaid assessment for additional taxes for any fiscal period ending before the Closing.

2.2 Representations and Warranties of Target Company.  Target Company represents and warrants to Acquiring Company as follows:

(a) Organization, Standing and Power. Target Company is a corporation duly organized, validly existing and in good standing under the laws of Wisconsin and has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted, and is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary except for any such failure, which when taken together with all other failures, is not likely to have a Material Adverse Effect.

(b) Capitalization. As of the date of this Agreement and as of Closing, the Shareholders are the only shareholders of Target Company, and there are no other persons or entities having any Shares, equity or other ownership interests in Target Company.

(c) Articles of Organization. Copies of the Target Company’s Articles of Organization, which have been delivered to Acquiring Company, are true, correct and complete copies thereof.

(d) Authority. Target Company has all requisite power to enter into this Agreement and, subject to approval of the proposed transaction by its shareholders, has the requisite power and authority to consummate the transactions contemplated hereby. Except as specified herein, no other corporate proceedings on the part of Target Company are necessary to authorize the Exchange and the other transactions contemplated hereby.

 

(e) Conflict with Agreements; Approvals. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, conflict with, or result in any violation of any provision of the Articles of Organization or Operating Agreement of Target Company or of any loan or credit agreement, note, mortgage, indenture, lease, benefit plan or other agreement, obligation, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Target Company or its properties or assets except for any such conflict or violation, which when taken together with all other conflict or violation, is not likely to have a Material Adverse Effect.  No consent, approval, order or authorization of, or registration, declaration or filing with, any governmental entity is required by or with respect to Target Company in connection with the execution and delivery of this Agreement by Target Company, or the consummation by Target Company of the transactions contemplated hereby.

(f) Books and Records. Target Company has made and will make available for inspection by Acquiring Company upon reasonable request all the books of account, relating to the business of Target Company. Such books of account have been maintained in the ordinary course of business. All documents furnished or caused to be furnished to Acquiring Company by Target Company are true and correct copies, and there are no amendments or modifications thereto except as set forth in such documents.

(g) Compliance with Laws.  Target Company is and has been in compliance in all material respects with all laws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any governmental entity applicable to it, its properties or the operation of its businesses.

(h) Litigation. There is no suit, action or proceeding pending, or, to the knowledge of Target Company threatened against or affecting Target Company, which is reasonably likely to have a Material Adverse Effect on Target Company, nor is there any judgment, decree, injunction, rule or order of any governmental entity or arbitrator outstanding against Target Company having, or which, insofar as reasonably can be foreseen, in the future could have, any such effect.

(i) Taxes.  Target Company has filed all tax returns and reports required to be filed as of the Closing with all other jurisdictions where such filing is required by law; and Target Company has paid, or made adequate provision for the payment of all taxes, interest, penalties, assessments or deficiencies due and payable on, and with respect to such periods or accruing prior to Closing.  As of the Closing, Target Company knows of (i) no other tax returns or reports which were required to be filed which have not been so filed and (ii) no unpaid assessment for additional taxes for any fiscal period ending before the Closing.

(j) Licenses, Permits; Intellectual Property. Target Company owns or possesses in the operation of its business all material authorizations which are necessary for it to conduct its business as now conducted. Neither the execution nor delivery of this Agreement nor the consummation of the transactions contemplated hereby will require any notice or consent under or have any material adverse effect upon any such authorizations.

(k) Title to Property. Target Company has good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them which is material to the business of Target Company, in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 2(s) or such as would not have a Material Adverse Effect. Any real property and facilities held under lease by Target Company are held by it under valid, subsisting and enforceable leases with such exceptions as would not have a Material Adverse Effect.

2.3 Representations and Warranties of Shareholders. Each of the Shareholders represents and warrants to Acquiring Company as follows:

(a) Shares Free and Clear. The Shares of Target Company that Member owns are free and clear of any liens, claims, options, charges or encumbrances of any nature.

(b) Unqualified Right to Transfer Shares. Member has the unqualified right to sell, assign, and deliver its Shares of Target Company, and, upon consummation of the transactions contemplated by this Agreement, Acquiring Company will acquire good and valid title to such Shares, free and clear of all liens, claims, options, charges, and encumbrances of whatsoever nature.

(c) Agreement and Transaction Duly Authorized. Member is authorized to execute and deliver this Agreement and to consummate the share exchange transaction described herein. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will constitute a violation or default under any term or provision of any 

contract, commitment, indenture, other agreement or restriction of any kind or character to which such Member is a party or by which such Member is bound.

 

ARTICLE III

ADDITIONAL AGREEMENTS AND RELATED TRANSACTIONS

3.1 Restricted Shares. The Shares will not be registered under the Securities Act, but will be issued pursuant to applicable exemptions from such registration requirements for transactions not involving a public offering and/or for transactions which constitute “offshore transactions” as defined in Regulation S under the Securities Act of 1933, as amended (“Securities Act”). Accordingly, the Shares shall be considered “restricted securities” for purposes of the Securities Act, and the holders of Shares will not be able to transfer such shares except upon compliance with the registration requirements of the Securities Act or in reliance upon an available exemption therefrom. The certificates evidencing the Shares shall contain a legend to the foregoing effect.

3.2 Access to Information. Upon reasonable notice, Acquiring Company and Target Company shall each afford to the officers, employees, accountants, counsel and other representatives of the other company, access to all their respective properties, books, contracts, commitments and records and all other information concerning its business, properties and personnel as such other party may reasonably request. Unless otherwise required by law, the parties will hold any such information which is nonpublic in confidence until such time as such information otherwise becomes publicly available through no wrongful act of either party, and in the event of termination of this Agreement for any reason each party shall promptly return all nonpublic documents obtained from any other party, and any copies made of such documents, to such other party.

ARTICLE IV

CONDITIONS PRECEDENT TO CLOSING

4.1 Conditions to Each Party’s Obligation to Effect the Exchange. The respective obligations of each party to effect the Exchange shall be conditional upon the filing, occurring or obtainment by the other party of all authorizations, consents, orders or approvals of, or declarations or filings with, or expirations of waiting periods imposed by any governmental entity or by any applicable law, rule, or regulation governing the transactions contemplated hereby, as well as the satisfaction of the following conditions on or before the Closing:

(a) [reserved].

4.2 Conditions to Obligations of Acquiring Company. The obligation of Acquiring Company to effect the Exchange is subject to the satisfaction of the following conditions on or before the Closing unless waived by Acquiring Company:

(a) Representations and Warranties. The representations and warranties of Target Company set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date) as of the Closing as though made on and as of the Closing, except as otherwise stated in this Agreement, and Target Company shall complete all government and legal process to transfer 100% of the ownerships from the Shareholders to Acquiring Company.

4.3 Conditions to Obligations of Target Company. The obligation of Target Company to effect the Exchange is subject to the satisfaction of the following conditions on or before the Closing unless waived by Target Company:

(a) Representations and Warranties. The representations and warranties of Acquiring Company as set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date) as of the Closing as though made on and as of the Closing, except as otherwise stated in this Agreement.

ARTICLE V

TERMINATION AND AMENDMENT

5.1 Termination. This Agreement may be terminated at any time prior to the Closing:

(a) by mutual consent of Acquiring Company, Target Company, and all of the Shareholders;

 

(b) by either Acquiring Company, Target Company, and/or all of the Shareholders, if there has been a material breach of any representation, warranty, covenant or agreement on the part of the other party or parties, as set forth in this Agreement, which breach has not been cured within five (5) business days following receipt by the breaching party of notice of such breach, or if any permanent injunction or other order of a court or other competent authority preventing the consummation of the Exchange shall have become final and non-appealable.

5.2 Effect of Termination. In the event of termination of this Agreement by any party as provided in Section 5.1, this Agreement shall forthwith become void and, subject to the following, there shall be no liability or obligation on the part of any party hereto.  In the event of termination under Section 5.1(a), all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses.  In the event of termination under Section 5.1(b), all costs and expenses incurred in connection with this Agreement by the non-breaching parties shall be paid by the breaching party.

5.3 Amendment. This Agreement may be amended by mutual agreement of Acquiring Company, Target Company, and all of the Shareholders.  Any such amendment must be by an instrument in writing signed on behalf of each of the parties hereto.

5.4 Extension; Waiver. At any time prior to the Closing, any party hereto, by action taken individually or authorized by their respective Board of Directors, may, to the extent legally 

allowed, (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in a written instrument signed on behalf of such party.

ARTICLE VI

GENERAL PROVISIONS

6.1 Survival of Representations, Warranties and Agreements. All of the representations, warranties and agreements in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Effective Time for as long as the applicable statute of limitation shall remain open.

6.2 Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, emailed (which is confirmed) or mailed by registered or certified mail (return receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

	
(a)

	
If to Acquiring Company:

720 Monroe Street

Suite E210

Spring Valley, NY 10977

	
(b)

	
If to Target Company:

515 E. Las Olas Blvd. Suite 120

Fort Lauderdale, FL  33301

	
(c)

	
If to the Shareholders:

To the addresses identified on Exhibit B hereto.

6.3 Interpretation. When a reference is made in this Agreement to Sections, such reference shall be to a Section of this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes,” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The phrase “made available” in this Agreement shall mean that the information referred to has been made available if requested by the party to whom such information is to be made available.

6.4 Counterparts. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

6.5 Entire Agreement; No Third Party Beneficiaries; Rights of Ownership. This Agreement (including the documents and the instruments referred to herein) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, and is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.

6.6 Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of New York without regard to principles of conflicts of law. Each party hereby irrevocably submits to the jurisdiction of any New York state court or any federal court in the State of New York in respect of any suit, action or proceeding arising out of or relating to this Agreement, and irrevocably accept for themselves and in respect of their property, generally and unconditionally, the jurisdiction of the aforesaid courts.

6.7 No Remedy in Certain Circumstances. Each party agrees that, should any court or other competent authority hold any provision of this Agreement or part hereof or thereof to be null, void or unenforceable, or order any party to take any action inconsistent herewith or not to take any action required herein, the other party shall not be entitled to specific performance of such provision or part hereof or thereof or to any other remedy, including but not limited to money damages, for breach hereof or thereof or of any other provision of this Agreement or part hereof or thereof as a result of such holding or order.

 

6.8 Publicity. Except as otherwise required by law or the rules of the SEC, so long as this Agreement is in effect, no party shall issue or cause the publication of any press release or other public announcement with respect to the transactions contemplated by this Agreement without the written consent of the other party, which consent shall not be unreasonably withheld.

6.9 Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns.

ARTICLE VII

OTHER PROVISIONS

7.1 Bankruptcy, Insolvency, Etc.  In the case of Acquiring Company instituting (a) any bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors or (b) the dissolution, liquidation, or winding up of Acquiring Company or any substantial portion of its business prior to the date which is eighteen (18) months following the Effective Time, this Agreement shall be deemed null and void and Acquiring Company shall immediately return to the Shareholder the Target Company Shares.

IN WITNESS WHEROF, this Agreement has been signed by the parties set forth below as of the date set forth above.

[Signatures on the following page]

	 	
ACQUIRING COMPANY:

 

Titan Computer Services, Inc., Inc., a New York corporation

 

 

By: /s/ David Vincent                                      

	
 

	
      David Vincent

      Chief Executive Officer & Chairman

	 	
 

TARGET COMPANY:

 

Altitude International, Inc., a Wisconsin corporation

 

 

By: /s/ David Vincent                                      

	 	
      David Vincent

      President

	 	
 

SHAREHOLDERS OF TARGET COMPANY:

 

Jeff DeForrest

 

/s/ Jeff DeForrest                                             

Individually

 

Leslie Visser

 

/s/ Leslie Visser                                                

Individually

 

Doug Bayerlein

 

/s/ Doug Bayerlein                                           

Individually

 

Landon E. Adler

 

/s/ Landon E. Adler                                         

Individually

 

Ron Turner

 

/s/ Ron Turner                                                  

Individually

 

Brad Wing

 

/s/ Brad Wing                                                   

Individually

 

Kevin Gillespie

 

/s/ Kevin Gillespie                                           

Individually

 

James Smith

 

/s/ James Smith                                                

Individually

 

Lisa Slater

 

/s/ Lisa Slater                                                    

Individually

 

Harvey Galvin

 

/s/ Harvey Galvin                                             

Individually

 

Ryan Price

 

/s/ Ryan Price                                                   

Individually

 

Dave Vincent

 

/s/ Dave Vincent                                              

Individually

 

Bob Kanuth

 

/s/ Bob Kanuth                                                 

Individually

 

Greg Whyte

 

/s/ Greg Whyte                                                 

Individually

 

Brunson Chandler & Jones, PLLC

 

/s/ Callie Jones                                                  

Callie Jones, Partner

Exhibit A

 

 

EXAMPLE ASSIGNMENT AND

TRANSFER POWERS (SIGNED BY ALL ALTITUDE INTERNATIONAL SHAREHOLDERS)

FOR VALUE RECEIVED, _____________________, hereby sells, assigns and transfers to Titan Computer Services, Inc., Inc., a New York corporation, all of his or her ownership interest in Altitude International, Inc., a Wisconsin corporation, standing in his or her name on the books of said corporation.

DATED this ____ day of June, 2017.

___________________________________

Print Name:  ______________

ACCEPTANCE OF ASSIGNMENT

Titan Computer Services, Inc., Inc. hereby accepts the assignment of the aforesaid ownership interests and agrees to be bound by the terms and conditions of the Operating Agreement of Altitude International, Inc. and the rights and obligations thereunder.

DATED this ____ day of June, 2017.

Titan Computer Services, Inc., Inc.

_________________________________

David Vincent

CEOExhibit 10.2

LICENSE AGREEMENT

Between

ALTITUDE INTERNATIONAL INC.

and

SPORTING EDGE UK LTD., INC.

This License Agreement (“Agreement”), effective as of June 27, 2017 (the “Effective Date”), is by and between Sporting Edge UK Ltd., Inc., a UK company located at Unit J, Loddon Business Centre, Roentgen Road, Basingstoke, RG24 8NG, UK (“Licensor”), and Altitude International, Inc., a Wisconsin corporation located at 515 E. Las Olas Blvd. #120, Ft. Lauderdale, FL  33301 (“Licensee”).

WHEREAS, Licensor is the sole and exclusive owner of and has the right to license to Licensee the ability to manufacture and sell rights to the full range of membrane based systems for the production of reduced oxygen environments and associated services as well as the use of patents and trademarks held by Sporting Edge UK Ltd or David Vincent as defined below) in the Territory (as defined below); and

WHEREAS, Licensee wishes to license the Manufacturing and Sales Rights from Licensor, and Licensor is willing to grant to Licensee a license to the Manufacturing and Sales Rights on the terms and conditions set out in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Definitions. For purposes of this Agreement, the following terms shall have the following meanings:

“Action” has the meaning set forth in Section 11.1.

“Affiliate” of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. The term “control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 “Bankruptcy Code” has the meaning set forth in Section 13.1.

 “Business Day” shall mean any day of the year that is not a Saturday, Sunday or a day on which commercial banks in California are authorized or required by law to close.

“Confidential Information” means any information that is treated as confidential by either party, including trade secrets, technology, information pertaining to business operations and strategies, and information pertaining to customers, pricing and marketing, in each case to the extent it is: (a) if in tangible form, marked as confidential; or (b) otherwise, identified at the time of disclosure as confidential and confirmed in writing as such within two (2) days after disclosure. Without limiting the foregoing, Confidential Information of Licensee includes the terms and existence of this Agreement. Confidential Information does not include information that the Receiving Party can demonstrate by documentation: (w) was already known to the Receiving Party without restriction on use or disclosure prior to receipt of such information directly or indirectly from or on behalf of the Disclosing Party; (x) was or is independently developed by the Receiving Party without reference to or use of any of the Disclosing Party’s Confidential Information; (y) was or becomes generally known by the public other than by breach of this Agreement by, or other wrongful act of, the Receiving Party or any of its Representatives; or (z) was received by the Receiving Party from a Third Party who was not, at the time, under any obligation to the Disclosing Party or any other Person to maintain the confidentiality of such information.

“Manufacturing & Sales Rights” means the Manufacturing and Sales of products using the technology developed by the Licensor rights as licensed pursuant to Section 2.

“Intellectual Property (IP) Rights” means the Intellectual Property used in conjunction with the Manufacturing Distribution Rights, including any Improvements thereto and such intellectual property set forth on Schedule 1.

“Effective Date” has the meaning set forth in the preamble.

“Improvement” means (a) any new or modified distribution rights that have the same function as any of the Distribution Rights but (i) is better or more economical; (ii) is more marketable than the Distribution Rights for any reason; or (b) any enhancement or modification to the Distribution Rights and the underlying.

“Improvement Notice” has the meaning set forth in Section 3.1.

“Indemnitee” has the meaning set forth in Section 11.1.

“Intellectual Property” means shall mean all patents, trademarks, trade names, service marks, service names, trade dress, logos, copyrights and domain names, and any registrations, applications and renewals for any of the foregoing, and all other intellectual property rights in inventions, trade secrets, manufacturing processes, technology, know-how, confidential and proprietary information, ideas, developments, drawings, specifications, bills of material, supplier lists, marketing information, sales and promotional information, business plans, computer software (whether in object code (i.e., machine-readable) or source code (i.e., readable and understandable by a programmer of ordinary skill) form) and all programmer notes and other documentation and tools that would allow a programmer of ordinary skill to maintain, enhance, 

and create derivative works of such software, test reports, component lists, manuals, instructions, catalogs, processes, designs, and registrations and applications for registration therefor, model numbers, telephone numbers, web addresses, web sites, electronic records of drawings and tooling and other electronic engineering tools, and all other proprietary rights, in each case owned or licensed by such person or used in such person’s business.

“Law” means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, award, decree, other requirement or rule of law of any federal, state, local or foreign government or political subdivision thereof, or any arbitrator, court or tribunal of competent jurisdiction.

“Licensee” has the meaning set forth in the preamble.

“Licensor” has the meaning set forth in the preamble.

“Losses” means all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs or expenses of whatever kind, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification hereunder and the cost of pursuing any insurance providers.

“Person” means an individual, corporation, partnership, joint venture, limited liability company, governmental authority, unincorporated organization, trust, association or other entity.

“Representatives” means a Party’s and its Affiliates’ employees, officers, directors, consultants and legal advisors.

“Term” has the meaning set forth in Section 12.1.

“Territory” means the Continent of North America, Central America and the Continent of South America.

2. Grant.

2.1 Scope of Grant. Subject to the terms and conditions of this Agreement, Licensor hereby irrevocably grants to Licensee during the Term a perpetual, exclusive right and license to the Manufacturing and Sales Rights in the Territory.

2.2 Restrictions on Licensor. Licensor shall not grant others the Manufacturing & Sales Rights in the Territory.

2.3 Sublicensing. Licensor hereby grants to Licensee the right to grant sublicenses of any of its rights under this agreement in accordance with the terms of this Agreement. The granting of sublicenses shall be at the direction of the Licensor as to how many may be granted in the Territory, but Licensee shall have the power to determine the identity of any sub-licensee subject to the written approval of the Licensor, which approval shall not be unreasonably withheld by Licensor.  All of the applicable licensee fees or royalty rates, if any, and other terms and conditions of the sublicense shall be determined by solely by the Licensor.

2.4 Publicity. Licensee shall develop all of its publicity and publications of advertising and marketing materials within the Territory related to the licenses granted hereunder, which publicity and publications must be approved by Licensor, and which approval shall not be unreasonably withheld by Licensor.

2.5 Trademarks.  Licensee shall have the right to select and use Licensors’ trademarks to identify the products relating to the Distribution Rights.  Licensee acknowledges the ownership of such trademarks in Licensor and agrees that except for as expressly set forth herein, nothing in this Agreement shall be construed to grant Licensee any right, title or interest in or to any trademark used by Licensee or registered in the name of Licensor.

3. Payments.

3.1 Upfront Payment. On the Effective Date and for a period of 5 years thereafter, Licensee shall pay to Licensor Ten Thousand Dollars ($10,000) annually

3.2 Royalty.  Commencing on the 6th anniversary of the Effective Date the Licensee shall pay continuing royalty fees pursuant to the terms listed in Schedule 3, attached hereto and incorporated by reference herein.

4. Prosecution and Maintenance.

4.1 Infringement; Patent Protection and Maintenance. Licensor shall from time to time take all steps which it reasonably considers necessary to protect its rights to the Distribution Rights of Licensee, and the Licensee agrees forthwith to communicate to the Licensor any infringements or threatened infringements of the Licensor’s Distribution Rights which may come to its notice. Licensor shall have no obligation to maintain or enforce any patents that may issue and become part of the Distribution Rights and nothing in this Section 5.1 shall impose upon a Licensor any obligation to incur any expense in enforcing the Distribution Rights.

4.2 Patent Applications and Maintenance. Licensor will have sole authority and discretion to make decisions relating to whether and how to apply for, prosecute, obtain, maintain and renew the patents and applications included in the Licensor’s Distribution Rights.  Licensor shall promptly notify Licensee if Licensor declines to (i) apply for a patent, copyright, or trademark with respect to the Distribution Rights for any jurisdiction that Licensee requests that an application be submitted, (ii) pursue prosecution of such application that is included in such 

Distribution Rights, or (iii) maintain or renew any patents included in the Distribution Rights. Following such notice, Licensee may, with notice to Licensor, elect to apply for a patent in such jurisdiction, or continue the prosecution of such patent application (or maintenance of such patent) at Licensee’s expense, provided, however, that Licensor shall retain all ownership rights to any patents that may issue with respect to such Distribution Rights.

5. Third-Party Infringement.

5.1 A party receiving notice of alleged infringement of any Distribution Rights in the Territory, or having a declaratory judgment action alleging invalidity or non-infringement of any Distribution Rights in the Territory brought against it, shall promptly provide written notice to the other party of the alleged infringement or declaratory judgment action, as applicable.

5.2 Licensor shall bring suit or defend a declaratory judgment action and control the conduct thereof, including settlement, to stop infringement of any Distribution Rights, as determined solely by Licensor.

6. Compliance with Laws.

6.1 Marking. Licensee shall comply with the patent, copyright and trademark marking provisions of 35 U.S.C. § 287(a) by marking all commercial products and advertising  relating to the Distribution Rights with the appropriate symbols or word markings. Licensee shall comply with the intellectual property marking laws of each country in the Territory Licensee uses, markets or sells the Distribution Rights.

6.2 Regulatory Clearance. Licensor shall reasonably cooperate with Licensee in obtaining any clearances from governmental agencies to use, market or sell the Distribution Rights.

6.3 Recordation of License. Licensor shall record this Agreement as required by the laws of United States and any other countries as Licensee may request as a prerequisite to enforceability of this Agreement in the courts of such countries or for other reasons and any recordation fees, and related costs and expenses shall be at Licensee’s expense.

7. Confidentiality.

7.1 Confidentiality Obligations. Each party (the “Receiving Party”) acknowledges that in connection with this Agreement it will gain access to Confidential Information of the other party (the “Disclosing Party”). As a condition to being furnished with Confidential Information, the Receiving Party agrees, during the Term and all times thereafter, to:

(a) not use the Disclosing Party’s Confidential Information other than as strictly necessary to exercise its rights and perform its obligations under this Agreement; and

(b) maintain the Disclosing Party’s Confidential Information in strict confidence and, subject to Section 8.2, not disclose the Disclosing Party’s Confidential Information without the 

Disclosing Party’s prior written consent, provided, however, the Receiving Party may disclose the Confidential Information to its Representatives who:

	
(i)

	
have a “need to know” for purposes of the Receiving Party’s performance, or exercise of its rights with respect to such Confidential Information, under this Agreement;

	
(ii)

	
have been apprised of this restriction; and

	
(iii)

	
are themselves bound by written nondisclosure agreements at least as restrictive as those set forth in this Section 8, provided further that the Receiving Party shall be responsible for ensuring its Representatives’ compliance with, and shall be liable for any breach by its Representatives of, this Section 8.

The Receiving Party shall use reasonable care, at least as protective as the efforts it uses with respect to its own confidential information, to safeguard the Disclosing Party’s Confidential Information from use or disclosure other than as permitted hereby.

7.2 Exceptions. Notwithstanding anything to the contrary herein, Licensee shall be expressly permitted to reference this Agreement and the terms hereof in disclosure documents required by securities laws, and in other regulatory, administrative filings and public relations materials in the ordinary course of Licensee’s business, and in marketing materials relating to the Distribution Rights, without consent of the Licensor. Additionally, if the Receiving Party becomes legally compelled to disclose any Confidential Information, the Receiving Party shall:

(a) provide prompt written notice to the Disclosing Party so that the Disclosing Party may seek a protective order or other appropriate remedy or waive its rights under this Section 8; and

(b) disclose only the portion of Confidential Information that it is legally required to furnish.

If a protective order or other remedy is not obtained, or the Disclosing Party waives compliance, the Receiving Party shall, at the Disclosing Party’s expense, use reasonable efforts to obtain assurance that confidential treatment will be afforded the Confidential Information.

8. Representations; Warranties; Covenants.

8.1 Mutual Representations and Warranties. Each party represents and warrants to the other party that:

(a) it is duly organized, validly existing and in good standing as a corporation or other entity as represented herein under the laws and regulations of its jurisdiction of incorporation, organization or chartering;

(b) it has, and throughout the Term shall retain, the full right, power and authority to enter into this Agreement and to perform its obligations hereunder;

(c) the execution of this Agreement by its representative whose signature is set forth at the end hereof has been duly authorized by all necessary corporate action of the party; and

(d) when executed and delivered by such party, this Agreement shall constitute the legal, valid and binding obligation of that party, enforceable against that party in accordance with its terms.

8.2 Licensor’s Representations, Warranties, and Covenants. Licensor represents, warrants and covenants that:

(a) Licensor is the sole and exclusive owner of the Distribution Rights and has the right to grant Licensee the license granted under the Agreement, without any conflict or breach of any other material agreement or understanding between Licensor and any other entity;

(b) it has, and throughout the Term, will retain the unconditional and irrevocable right, power and authority to grant the license hereunder;

(c) neither its grant of the license, nor its performance of any of its obligations, under this Agreement does or will at any time during the Term:

	
(i)

	
conflict with or violate any applicable Law;

	
(ii)

	
require the consent, approval or authorization of any governmental or regulatory authority or other third party; or

	
(iii)

	
require the provision of any payment or other consideration to any third party.

(d) it has not granted and will not grant any licenses or other contingent or non-contingent right, title or interest under or relating to the Distribution Rights, or is or will be under any obligation, that does or will conflict with or otherwise affect this Agreement, including any of Licensor’s representations, warranties or obligations or Licensee’s rights or licenses hereunder;

(e) there neither are nor at any time during the Term will be any encumbrances, liens or security interests involving any Distribution Rights;

(f) no prior art or other information exists that would adversely affect the validity, enforceability, term or scope of any Distribution Rights;

(g) it has no knowledge after reasonable investigation of any settled, pending or threatened litigation or re-examination, post-grant or inter partes review, interference, derivation, 

opposition, claim of invalidity or other claim or proceeding (including in the form of any offer to obtain a license):

	
(i)

	
alleging the invalidity, misuse, un-registrability, unenforceability or non-infringement of any Distribution Rights;

	
(ii)

	
challenging Licensor’s ownership of, or right to practice or license, any Distribution Rights, or alleging any adverse right, title or interest with respect thereto; or

	
(iii)

	
alleging that the practice of any Distribution Rights or the making, using, offering to sell, sale or importation of any Distribution Rights in the Territory does or would infringe, misappropriate or otherwise violate any patent, trade secret or other intellectual property of any third party.

(h) it has no knowledge after reasonable investigation of any factual, legal or other reasonable basis for any litigation, claim or proceeding described in Section 9.2(g);

(i) it has not received any written, oral or other notice of any litigation, claim or proceeding described in Section 9.2(g); and

(j) it has not brought or threatened any claim against any third party alleging infringement of any Distribution Rights, nor is any third party infringing or preparing or threatening to infringe any patent, or practicing any claim of any patent application, included as a Distribution Rights.

9. Omitted

10. Indemnification.

10.1 Each party shall indemnify, defend and hold harmless the other party and its officers, directors, employees, agents, successors and assigns (each, an “Indemnitee”) against all Losses arising out of or resulting from any third party claim, suit, action or proceeding related to or arising out of or resulting from the party’s breach of any representation, warranty, covenant or obligation under this Agreement (each an “Action”).

10.2 Omitted.

10.3 Indemnification Procedure. The indemnified party shall promptly notify the indemnifying party in writing of any Action and cooperate with the indemnified party at the indemnifying party’s sole cost and expense. The indemnifying party shall immediately take control of the defense and investigation of the Action and shall employ counsel reasonably acceptable to indemnified party to handle and defend the same, at the indemnifying party’s sole cost and expense. The indemnifying party shall not settle any Action in a manner that adversely affects the rights of any indemnified party without the indemnified party’s prior written consent, 

which shall not be unreasonably withheld or delayed. The indemnified party’s failure to perform any obligations under this Section 11.3 shall not relieve the indemnifying party of its obligation under this Section 11.3 except to the extent that the indemnifying party can demonstrate that it has been prejudiced as a result of the failure. The indemnified party may participate in and observe the proceedings at its own cost and expense with counsel of its own choosing.

11. Term and Termination.

11.1 Term. This Agreement shall commence as of the Effective Date and, unless terminated earlier in accordance with Section 12.2, the licenses granted hereunder shall be perpetual (the “Term”).

11.2 Termination.  

(a) Licensor may terminate this Agreement on written notice to Licensee if Licensee materially breaches Section 4.1 of this Agreement and such breach remains uncured for twenty (20) days after Licensee receives written notice thereof.

(b) Licensee may terminate this Agreement at any time without cause, and without incurring any additional obligation, liability or penalty, by providing at least twenty (20) days’ prior written notice to Licensor.

(c) Either party may terminate this Agreement by written notice to the other party if the other party:

	
(i)

	
becomes insolvent or admits inability to pay its debts generally as they become due;

	
(ii)

	
becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency law, which is not fully stayed within One Hundred Eighty (180) days or is not dismissed or vacated within One Hundred Eighty (180) days after filing;

	
(iii)

	
makes a general assignment for the benefit of creditors; or

	
(iv)

	
has a receiver, trustee, custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business.

11.3 Effect of Termination. On termination of this Agreement, the Receiving Party shall (a) return to the Disclosing Party all documents and tangible materials (and any copies) containing, reflecting, incorporating or based on the Disclosing Party’s Confidential Information; (b) permanently erase the Disclosing Party’s Confidential Information from its computer systems and (c) certify in writing to the Disclosing Party that it has complied with the requirements of this Section 12.3.

11.4 Survival. The rights and obligations of the parties set forth in this Section 12.4 and Section 1 (Definitions), Section 8 (Confidentiality), Section 9 (Representations and Warranties), Section 11 (Indemnification), Section 12.3 (Effect of Termination), and Section 13 (Miscellaneous), and any right, obligation or required performance of the parties in this Agreement which, by its express terms or nature and context is intended to survive termination or expiration of this Agreement, will survive any such termination or expiration.

12. Miscellaneous.

12.1 Bankruptcy. The Parties acknowledge and agree that all rights and licenses granted pursuant to this Agreement are, for purposes of Section 365(n) of Title 11 of the United States Code (or any successor provision) (the “Bankruptcy Regulations”) “intellectual property” as defined in Section 101(35A) of the United States Bankruptcy Code (the “Code”), which has been licensed hereunder in a contemporaneous exchange for value.  The Parties further acknowledge and agree that if a Licensor becomes insolvent, applies for or consents to the appointment of a trustee, makes a general assignment for the benefit of its creditors, commences, or has commenced against it, any bankruptcy, reorganization, debt arrangement, or other proceeding under bankruptcy law or elects to reject this Agreement, or if this Agreement is deemed to be rejected, pursuant to Section 365 of the Code for any reason, this Agreement shall be governed 

by Section 365(n) of the Code and each Party as a Licensee hereunder will retain and may elect to fully exercise its rights under this Agreement in accordance with such Section 365(n).

12.2 Further Assurances. Each party shall, upon the request of the other party, promptly execute such documents and perform such acts as may be necessary to give full effect to the terms of this Agreement.

12.3 Independent Contractors. The relationship between the parties is that of independent contractors. Nothing contained in this Agreement shall be construed as creating any agency, partnership, joint venture or other form of joint enterprise, employment or fiduciary relationship between the parties, and neither party shall have authority to contract for or bind the other party in any manner whatsoever.

12.4 Omitted.

12.5 Notices. All notices and other communications hereunder shall be in writing and shall be deemed given when mailed, delivered personally, sent by facsimile (which is confirmed) or sent by an overnight courier service, such as Federal Express, to the parties at the following addresses (or at such other address for a party as shall be specified by such party by like notice):

If to Licensee, to:

The Chief Executive

Altitude International Inc

515 E Las Olas Boulevard Suite 120,

Ste 120,

Fort Lauderdale,

FL 33301,    USA

Tel: +1 954 256-5120

Email: TBA

If to Licensor, to:

The Managing Director

Sporting Edge UK Ltd

Unit J, Loddon Business Centre

Roentgen Road,

Basingstoke

RG24 8ng,   UK

Tel:    +44 1256 844484

email: dave.vincent@sportingedgeuk.com

12.6 Interpretation. For purposes of this Agreement, (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole.

Unless the context otherwise requires, references herein: (x) to Sections and Schedules refer to the Sections of and Schedules attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. Any Schedules referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

12.7 Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

12.8 Entire Agreement. This Agreement, together with all Schedules and any other documents incorporated herein by reference, constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

12.9 Assignment. Licensee may freely assign or otherwise transfer all or any of its rights, or delegate or otherwise transfer all or any of its obligations or performance, under this Agreement without Licensor’s consent. This Agreement is binding upon and inures to the benefit of the parties hereto and their respective permitted successors and assigns.

12.10 No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Agreement.

12.11 Amendment; Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the waiving party. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

12.12 Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon a determination that any term or other provision is invalid, illegal or unenforceable, 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 a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

12.13 Governing Law; Submission to Jurisdiction.  

(a) This Agreement and all related documents, and all matters arising out of or relating to this Agreement, are governed by, and construed in accordance with, the laws of the State of Nevada, United States of America, without regard to the conflict of laws provisions thereof to the extent such principles or rules would require or permit the application of the laws of any jurisdiction other than those of the State of Nevada.

(b) Any legal suit, action or proceeding arising out of or related to this Agreement or the licenses granted hereunder shall be instituted exclusively in the federal courts of the United States or the courts of the State of Nevada in each case located in the city of Las Vegas, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons, notice or other document by mail to such party’s address set forth herein shall be effective service of process for any suit, action or other proceeding brought in any such court.

12.14 Waiver of Jury Trial. Each party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement or the transactions contemplated hereby.

12.15 Equitable Relief. Each party acknowledges that a breach by the other party of this Agreement may cause the non-breaching party irreparable harm, for which an award of damages would not be adequate compensation and agrees that, in the event of such a breach or threatened breach, the non-breaching party will be entitled to equitable relief, including in the form of a restraining order, orders for preliminary or permanent injunction, specific performance and any other relief that may be available from any court, and the parties hereby waive any requirement for the securing or posting of any bond or the showing of actual monetary damages in connection with such relief. These remedies shall not be deemed to be exclusive but shall be in addition to all other remedies available under this Agreement at law or in equity, subject to any express exclusions or limitations in this Agreement to the contrary.

12.16 Attorney Fees. In the event that any action, suit, or other legal or administrative proceeding is instituted or commenced by either party hereto against the other party arising out of or related to this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and court costs from the non-prevailing party.

12.17 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission (to which a signed PDF copy is attached) shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 [SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, each of the parties hereto has executed this License Agreement as of the date first above written.

LICENSEE:

Altitude International, Inc.

         

		By:	
/s/ Dave Vincent                                                 

Name: Dave Vincent

 Title: CEO

LICENSOR:

Sporting Edge UK Ltd., Inc.

              

		By:	
/s/ Dave Vincent                                                 

 Name: Dave Vincent

Title:  CEO

SCHEDULE 1

IP RELATING TO MANUFACTURING & SALES RIGHTS

Licensee is authorized to utilize:

	
·

	
all Intellectual Property owned by Sporting Edge UK Ltd.  This includes Designs, Software, Techniques, Market Intelligence and Know-How.

	
·

	
all Patents filed and Trademarks registered by Sporting Edge UK Ltd or to David Vincent.

Licensee is authorized to subcontract the manufacture and sale of products incorporating said IP, subject to the prior approval of the Managing Director of Sporting Edge UK Ltd.  Such approval not to be unreasonably withheld.

During the course of this agreement, all IP developed by the Licensee or the Licensor shall be made available to the other party at no cost.  Such IP shall be considered to be jointly owned and available for perpetuity by both parties.

SCHEDULE 2

SCHEDULE OF PAYMENTS

Payment Terms:

The Licensee shall pay to the Licensor on the Effective Date, and for 5 anniversaries of this date, the sum of $10,000 in lieu of Royalties.

SCHEDULE 3

ROYALTY FEES

The Royalty Fees that Licensee will pay to the Licensor are:

From the sixth anniversary of the Effective Date a royalty on all sales of product manufactured using the IP.  The royalty payable shall be calculated as 0.5% of the Sale Price.

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