Document:

exhibit_10-1.htm

EXHIBIT 10.1

 

 

 COMMERCIAL LICENSE AGREEMENT

 

This Commercial License Agreement (this "Agreement"), dated as of January 3, 2011 (the "Effective Date"), is made by and between Visualant, Inc., a Nevada corporation ("Visualant") and Javelin, LLC, a Washington limited liability company ("Javelin").  Visualant and Javelin (sometimes referred to herein individually as a "Party" and collectively as the "Parties") therefore agree as follows:

 

Section 1.               Definitions

 

"Affiliate" means any corporation, limited liability company, joint venture, individual or other entity of which Javelin or its members has ownership and control of at least fifty percent (50%) of all outstanding shares or securities or other ownership interests that represent the power to direct the management and policies of such entity.

 

"Fields of Use" means the worldwide market for products and services relating to environmental testing (including but not limited to air, soil, industrial emissions, oil and water testing).

 

"Gross Revenue" means any revenue actually received by Javelin, or a Javelin Affiliate, as a result of the sale to any of Javelin’s or Javelin Affiliate’s customers or end users of Licensed Products that incorporate one or more of the unexpired Visualant IP; provided, however, that "Gross Revenue" does not include any (a) reimbursed expenses or costs that are passed through to a customer or end user (e.g., travel), (b) taxes collected by Javelin for remittance to governmental authorities, or (c) refunds or credits.

 

"Improvement" means any advancement, development, improvement, enhancement, correction, modification, adaptation, translation, transformation, annotation, extension, compilation, collective work or derivative work to or based upon the Visualant IP.

 

"Intellectual Property Rights" means any patent, copyright, trademark, trade secret, mask work, or other intellectual or propriety right under the laws of the State of Washington.

 

"License" means the license granted by Visualant to Javelin pursuant to Section 2.1 of this Agreement.

 

"Licensed Product" means any product or service of Javelin or its sublicensees intended for use in the Fields of Use and that incorporates or uses any of the Visualant IP.

 

"Third Party" means any individual, corporation, limited liability Company, partnership, trust, association, governmental authority or other entity that is not a Party.

 

"Third Party Infringement" means any infringement, misappropriation, unauthorized use or other violation of any of the Visualant IP within the Field of Use by any Third Party.

 

"Visualant IP" means the Visualant Patents, any other intellectual property assets listed in the attached Exhibit A, and any other intellectual property or proprietary rights owned or controlled by Visualant (see “Intellectual Property” above) that are necessary or useful for exploitation of the Licensed Products.

 

 

 

  

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"Visualant Patent" means:  (a) any patent or patent application owned, controlled by, or licensed to Visualant now or in the future listed, including any patents or patent applications listed under the heading of "Visualant Patents" in the attached Exhibit A, and any patents that may issue from the pending patent applications listed in the attached Exhibit A; (b) any patent that may issue from any continuation or divisional that has priority based upon any of the patent applications described in (a) above; (c) any reissues, renewals, substitutions, re-examinations and extensions of any of the patents described in (a) or (b) above; and (d) any foreign patents corresponding to any of the patents described in (a), (b) or (c) above.

 

Section 2.               License Grant; Covenants

 

2.1           License Grant.  Subject to the provisions of Section 2.2 below, Visualant hereby grants to Javelin an exclusive (within the Fields of Use), worldwide, transferable (except as described in Section 6.2), sublicensable royalty-bearing, right and license to use and exploit the Visualant IP within the Fields of Use.  Without limiting the generality of the foregoing, the license and rights granted herein include, without limitation, the rights to do the following: (a) make, have made, offer for sale, sell, use, distribute, have distributed, and import any products or services within the Fields of Use under the Visualant IP; (b) make Improvements of and to the Visualant IP; (c) exercise any other rights under the Visualant IP, including the right to take any action against any past, present or future infringement of the Visualant IP in the Fields of Use; and (d) sublicense any of the licenses or rights granted hereunder, subject, however, to the prior notice and  consent of Visualant which consent shall not be unreasonably withheld. Should Javelin and Visualant disagree and become deadlocked on regarding license transfer both parties agree to seek resolution through JAMS in Seattle, Washington with both parties agreeing that resolution shall be obtained within 90 days of its submission to JAMS.

 

2.2           Performance Criteria and Termination.  During the Term, and so long as Javelin satisfies the milestones set forth in this Section 2.2 (the "Milestones") the License described in section 2.1 shall remain in effect, and Visualant will not produce or sell any licensed products or technologies by itself or through subsidiaries and will not grant to any Third Party any license under any of the Visualant IP to incorporate or utilize the Visualant IP in products or services intended for use in the Fields of Use.  The following Milestones will apply to Javelin's efforts to commercialize the Visualant IP:

 

 (a)           Within twenty-four (24) months after the Effective Date, develop a demonstration unit of a Licensed Product; and

 

 (b)           Within thirty-six (36) months after the Effective Date, generate first sales of a Licensed Product and deliver the first License Fee to Visualant, or within thirty-six (36) months after the Effective Date, Consummate a license or transfer of the VISUALANT IP to a third party, resulting in upfront cash, equity, or assets of value (minimum total value of $500,000) being paid to JAVELIN, and deliver the 25% profit sharing check and/or transferred equity or assets (minimum value of $150,000).

 

 

  

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If Javelin fails to satisfy any of the Milestones, the License will terminate and the restrictions on Visualant imposed by this Section 2 will terminate. Visualant must provide 30 days written notice of intent to terminate to Javelin. Javelin will have 60 days from initial date of the Visualant termination to either satisfy the milestone or begin arbitration through JAMS in Seattle, Washington, to determine if the milestone has been met. If arbitration is commences both Visualant and Javelin agree to standard arbitration procedural rules as outlined by the state of Washington. However, arbitration will be completed and the final ruling must occur prior to 120 days from the date of the initial Visualant written notice.

 

Section 3.               Intellectual Property Rights

 

3.1           Administration of Visualant IP.  Visualant will control the prosecution, maintenance, registration and other management of the Visualant IP.  Visualant will keep Javelin informed of the status of all prosecution, maintenance, registration and other management activities related to the Visualant IP and will provide Javelin with a reasonable opportunity to advise Visualant on such activities.  Without limiting the generality of the foregoing, if Visualant chooses to abandon any portion of the Visualant IP, Visualant will provide Javelin written notice at least sixty (60) days prior to the last allowable date for filing or taking any other action required with respect to the prosecution, maintenance or registration of such portion of the Visualant IP and Javelin may, at any time thereafter, take actions necessary to preserve the Visualant IP.

 

3.2           Third Party Infringement.

 

(a)           If any Third Party Infringement comes to the attention of either Party, then such Party will give the other Party prompt written notice thereof (including, without limitation, a statement of the facts which are known by the Party giving the notice and which such Party believes might reasonably serve as a basis for a claim of Third Party Infringement, together with a copy of any documentation evidencing the same).

 

(b)           Javelin will have the first right to respond to, address, and/or prosecute any alleged Third Party Infringement by securing cessation of the infringement or initiating an action or suit against the infringer or otherwise responding to, addressing and/or prosecuting such alleged Third Party Infringement.  To exercise this first right, Javelin must initiate bona fide action to respond to, address, and/or prosecute any alleged Third Party Infringement within ninety (90) days of learning of such infringement.  If Javelin chooses to institute suit or action against an alleged infringer, Javelin may bring such suit in its own name (or, if required by law, in its and Visualant’s name) and at its own expense.  Further, if Javelin institutes an action or suit against an alleged infringer as provided in this Agreement, then (i) Visualant will fully and promptly cooperate and assist Javelin in connection with any such suit or action, and Javelin will pay Visualant’s reasonable attorney’s fees and other out-of-pocket directly associated expenses.  Javelin will not settle any suits or actions in any manner relating to the Visualant IP without obtaining the prior written consent of Javelin, which will not be unreasonable withheld, delayed or conditioned. After Javelin has recovered its reasonable attorney's fees and other out-of-pocket expenses directly related to any action, suit, or settlement for infringement of Visualant IP, the remaining damages, awards, or settlement proceeds will be divided as follows: fifty percent (50%) to Javelin and fifty percent (50%) to Visualant.

 

 

  

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(c)           If Javelin fails, within ninety (90) days of learning of an alleged Third Party Infringement, to secure cessation of the alleged Third Party Infringement, institute suit against the alleged infringer, or to otherwise respond to, address and/or prosecute the alleged Third Party Infringement, then Visualant may, upon written notice to Javelin, assume full right and responsibility to institute suit or action against the alleged infringer.  If Visualant elects to commence an action as described above, then Visualant may do so in its own name (or if required by law, in its own and Javelin’s name) and at its own expense.  Further, if Visualant institutes an action or suit against an alleged infringer as provided in this Agreement, then Javelin will fully and promptly cooperate and assist Visualant in connection with the action or suit, and Visualant will pay all of Javelin’s reasonable attorney fees and other out-of-pocket directly associated expenses.   Visualant will not settle any suits or actions in any manner relating to the Visualant IP without obtaining the prior written consent of Javelin, which will not be unreasonably withheld, delayed or conditioned. After Visualant has recovered its reasonable attorney’s fees and other out-of-pocket expenses directly related to any action, suit, or settlement for infringement of Visualant IP, the remaining damages, awards, or settlement proceeds will be divided as follows:  fifty percent (50%) to Visualant and fifty percent (50%) to Javelin.

 

(d)           Neither Javelin nor Visualant is obligated under this Agreement to institute or prosecute a suit against any alleged infringer of the Visualant IP.

 

3.3           Ownership of Improvements.

 

(a)           By Javelin.

 

(i)           Javelin or its sublicensees will be the owner of any Intellectual Property Rights in any Improvement to the Visualant IP developed, created or invented by Javelin or its sublicensees at Javelin's expense and neither Javelin nor its sublicensees will be obligated to deliver to Visualant any such Improvement pursuant to this Agreement; provided, however, Javelin will promptly notify Visualant of any such Improvements and license such Improvements to Visualant for use in certain fields of use pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the Visualant IP licensed to Javelin pursuant to this Agreement.  Should Visualant license the Javelin owned improvements, Javelins obligations to pay pre-paid royalties to Visualant will terminate. All other terms of this agreement will remain in force.

 

(ii)           Visualant will be the owner of any Intellectual Property Rights in any Improvement to the Visualant IP developed, created or invented by Javelin at Visualant's expense (e.g., pursuant to a separate research and development agreement or otherwise) and Visualant will not be obligated to deliver to Javelin any such Improvement pursuant to this Agreement; provided, however, Javelin will promptly notify Visualant of any such Improvements and Visualant will license such Improvements to Javelin for use in the Fields of Use pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the Visualant IP licensed to Javelin pursuant to this Agreement. Additional prepaid royalties from Javelin will not be charged by Visualant for this license. All other terms and conditions will remain in force.

 

 

  

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(b)           By Visualant.

 

(i)           Visualant will be the owner of any Intellectual Property Right in any Improvement of the Visualant IP developed, created or invented by Visualant and Visualant will not be obligated to deliver to Javelin any such Improvement pursuant this Agreement; provided, however, Visualant will promptly notify Javelin of any such Improvements and Visualant will license such Improvements to Javelin for use in the Fields of Use pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the Visualant IP licensed to Javelin pursuant to this Agreement.   Additional scheduled prepaid royalties from Javelin will not be required by Visualant for this license. All other terms and conditions will remain in force.

 

(ii)           Javelin will be the owner of any Intellectual Property Rights in any Improvement to the Visualant IP developed, created or invented by Visualant at Javelin’s expense (e.g., pursuant to a separate research and development agreement or otherwise) and Javelin will not be obligated to deliver to Visualant any such Improvement pursuant to this Agreement; provided, however, Visualant will promptly notify Javelin of any such Improvements and license such Improvements to Visualant for use in certain fields of use pursuant to a separate agreement between the Parties containing substantially the same terms as are applicable to the Visualant IP licensed to Javelin pursuant to this Agreement.  Should Visualant license the Javelin owned improvements, Javelins obligation to pay the prepaid royalties to Visualant will cease. All other terms and conditions will remain in force.

 

3.4            Reservation of Rights; Ownership of IP.  Except as expressly provided in this Agreement, no title to or ownership of any Visualant IP is transferred to Javelin or any other person under this Agreement.  Javelin acknowledges and agrees that Visualant is the sole owner of all right, title and interest in and to the Visualant IP listed on Schedule A hereto, and Javelin agrees that at the request of Visualant, Javelin will execute all instruments and documents and will take all other action necessary to insure that Visualant has vested title to the Visualant IP.  Javelin represents and warrants that it will not undertake any act or thing which in any way impairs or is intended to impair any part of the right, title, interest or goodwill of Visualant in the Visualant IP.

 

3.5            Visualant expressly warrants that it is the owner of the I.P licensed to Javelin under this agreement and has the explicit right to license the I.P. to Javelin.

 

 

  

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Section 4.               Compensation

 

4.1           License Fee.  Javelin will pay Visualant five percent (5%) of the Gross Revenues received with respect to any Licensed Product incorporating one or more of the valid and unexpired Visualant IP (the "License Fee").

 

4.2           Prepaid Royalty. Javelin will pay Visualant a pre-paid royalty of $15,000 upon signature of the definitive agreement. A pre-paid royalty will be paid annually for each year of the term of the definitive agreement, and will increase 33% per year for 4 years then remain fixed at the 4th year rate for the duration of the term. This prepaid royalty  obligation will cease upon expiration of or non-issuance of the subject patent(s). If at the end of each quarter from the date of the definitive agreement 5% of gross revenues from JAVELIN products that utilize VISUALANT IP exceeds the accumulated  prepaid royalty(s), JAVELIN will pay to VISUALANT the difference between 5% of gross revenues and the prepaid annual royalty made for that quarter within 30 days of the end of that quarter (e.g., if JAVELIN gross revenues total $250,000 during 2011, JAVELIN will pay to VISUALANT at the end of that year an additional $5,000 in royalties above the minimum licensing fee of $15,000 for that year. This royalty obligation will cease upon expiration, or non-issuance of the subject patent(s).

 

4.3           Profit Sharing. JAVELIN will also provide profit sharing of 25% to VISUALANT of any license or transfer of technology to a third party that results in upfront cash, equity, or assets of value being paid to JAVELIN. Any and all such arrangements will be approved by the CEO of VISUALANT and JAVELIN prior to finalizing any technology transfer or Joint Venture/partnering agreement that results in a license or rights being transferred to the third party. Such approval shall not be unreasonably withheld. Any such transfer would remain subject to the royalties set forth in 4.2 above.  Should Visualant and Javelin disagree on the transfer of patent rights by Javelin to a sublicensee, both parties agree to arbitrate using JAMS in Seattle, Washington. The arbitrator’s final decision must be completed within 60days of Javelin’s notification to Visualant of its intention to sublicense. If after 60 days the arbitration has failed to produce a decision, Javelin would have the right to go forward with the initial proposed license agreement to the sublicensee.

 

4.4           Sale of Javelin Javelin reserves the right to sell all or the majority of its assets to a third party without Visualant approval. However the third party must accept the ongoing nature of the terms of this agreement.  Javelin will provide Visualant 30 day notification of any proposed offer that it receives.

 

4.5           Reporting and Payment.  Once Javelin satisfies the Milestone set forth in Section 2.2(d), within thirty (30) calendar days of the end of each subsequent calendar quarter (or portion thereof) during the Term of this Agreement, Javelin will remit payment to Visualant for all License Fees earned during such calendar quarter (or portion thereof).  Each payment will be accompanied by a statement setting forth in reasonable detail the basis for such payment.  All amounts payable under this Agreement are payable in the lawful money of the United States.

 

  

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4.6           Taxes.  Javelin will collect and pay any sales, use, excise, import or export value added or similar tax or duty not based on Visualant's or any of its affiliates' net income associated with sales of the Licensed Products by Javelin.

 

Section 5.               Term and Termination

 

5.1           General.  Unless otherwise terminated pursuant to Section 5.2, the term of the License (the "Term") will commence as of the Effective Date and will continue until the last to expire of the Visualant IP.

 

5.2           Early Termination.  Javelin may terminate this Agreement for its convenience upon thirty (30) days’ written notice to Visualant.  In addition, either Party may terminate the Agreement by giving the other Party written notice of termination if:  (a) the other Party commits a material breach of this Agreement and fails to cure such breach within thirty (90) days after the non-breaching Party gives the breaching Party written notice of such breach; or (b) the bankruptcy, receivership or similar proceeding against the other Party which is not dismissed within thirty (180) days after it is commenced.  Any disagreement between the parties associated with a notice of early termination will be decided by arbitration, using JAMS in Seattle, Washington.

 

5.3           Effect of Expiration or Termination.  Upon any expiration or termination of the Term:  (a) the License will terminate immediately and automatically; provided, however, all sublicense granted by Javelin  prior to the effective date of any termination of the Term will survive such termination; and (b) the Parties’ respective rights and obligations under Sections 3.3, 3.4, 5 and 6 of this Agreement will survive.

 

Section 6.               Miscellaneous

 

6.1           Waiver; Amendments.  The failure of any Party to insist, in any one or more instances, upon performance of any of the terms, covenants or conditions of this Agreement will not be construed as a waiver or a relinquishment of any right or claim granted or arising hereunder or of the future performance of any such term, covenant, or condition, and such failure will in no way affect the validity of this Agreement or the rights and obligations of the parties hereto.  This Agreement may not be modified, amended or supplemented except by an agreement in writing signed by Visualant and Javelin.

 

6.2           Assignment and Binding Effect.  Neither Party may transfer or assign its rights or obligations under this Agreement without the express written consent of the other Party; provided, however, Javelin may assign any of its rights or obligations under this Agreement to an Affiliate without the prior written consent of Visualant but subject to giving Visualant notice of such assignment and the terms and conditions thereof.  Subject to the foregoing, this Agreement will inure to the benefit of and will be binding upon the Parties and their respective successors and permitted assigns.

 

6.3           Governing Law.  This Agreement will be governed by and construed under the laws of the state of Washington, without giving effect to any contrary conflict of law’s provisions.

 

  

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6.4           Notices.  All notices and other communications hereunder will be in writing and will be deemed given (a) upon receipt if delivered personally (or if mailed by registered or certified mail), (b) the day after dispatch if sent by overnight courier, (c) upon receipt if transmitted by telecopier or other means of facsimile transmission (and confirmed by a copy delivered in accordance with clause (a) or (b)), properly addressed to the parties at the following addresses:

	
Javelin:

	
Javelin llc

1005 NE Boat St. #3

Seattle WA 98105

	  	  
	
Visualant:

	
Visualant, Inc.

	  	
500 Union Street

Suite 406

Seattle, WA 98101

 

Any Party may change its address for such communications by giving notice thereof to the other parties in conformity with this Section.

 

6.5           Protection of the License in Bankruptcy.  The Parties expressly agree that the Visualant IP and Javelin Softwares "intellectual property" as defined in Section 101(35A) of the United States Bankruptcy Code, 11 U.S.C. Section 101 et seq. (the "Bankruptcy Code").  In the event of any proceeding under the Bankruptcy Code for the bankruptcy, reorganization or protection of either Party, this Agreement shall be subject to Section 365(n) of the Bankruptcy Code.

 

6.6           Severability.  If any provision of this Agreement, or the application thereof, will for any reason and to any extent be held to be invalid or unenforceable, the remainder of this Agreement and the application of such provision to other persons or circumstances will be interpreted so as best to reasonably effect the intent of the parties hereto.  The parties further agree to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the invalid or unenforceable provision.

 

6.7           Counterparts.  This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all of which together will constitute one and the same instrument notwithstanding that all Parties are not signatories to each counterpart.

 

6.8           Entire Agreement.  This Agreement, together with any exhibit or attachments, constitutes the entire agreement between the Parties hereto with respect to the subject matter of this Agreement and supersedes all prior negotiations, understandings and agreements between the Parties with respect to the subject matter of this Agreement.

 

[Remainder of Page Left Intentionally Blank]

 

 

 

  

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be made and executed by duly authorized officers.

	
Visualant, Inc.

 

By:  /s/ Ron Erickson                                                  

Name: Ron Erickson                                                    

Title:  Chairman and CEO                                            

Date Signed:  January 3, 2011                                    

	
Javelin, LLC

 

By:   /s/ Peter Purdy                                              

Name:  Peter Purdy                                               

Title:  Partner                                                          

Date Signed:  January 3, 2011                              

By:   /s/ Mathew Creedican                                  

Name:  Mathew Creedican                                   

Title:  Partner                                                          

Date Signed:  January 3, 2011                              

 

[Signature Page to Commercial License Agreement]

 

EXHIBIT A

VISUALANT IP

 

1.           Schowengerdt, B.T., Furness, T.A., Melville, R.D., Schroder, K.E., Burstein, R.A., and Chinthammit, W. SYSTEM AND METHOD OF EVALUATING AN OBJECT USING ELECTROMAGNETIC ENERGY. International Patent Application No. PCT/US2007/017082.

 

2.           Schowengerdt, B.T., Furness, T.A., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE DISTRIBUTED EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Patent Application No. 11/831,662.

 

3.           Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E., and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Patent Application No. 11/831,717.

 

4.           Schowengerdt, B.T., Furness, T.A., Melville, R.D., Schroder, K.E., Burstein, R.A., and Chinthammit, W. SYSTEM AND METHOD OF EVALUATING AN OBJECT USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/820,938.

 

5.           Schowengerdt, B.T., Furness, T.A., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE DISTRIBUTED EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/834,662.

 

6.           Furness, T.A., Schowengerdt, B.T., Melville, R., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/834,589.

 

7.           Furness, T.A., Schowengerdt, B.T., Melville, R., and Walker, N.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/871,639.

 

8.           Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E., and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/883,312.

 

9.           Furness, T.A., Schowengerdt, B.T., Melville, R., Walker, N.E. , and Sparks, B.E. (2006) METHOD, APPARATUS, AND ARTICLE TO FACILITATE EVALUATION OF OBJECTS USING ELECTROMAGNETIC ENERGY. U.S. Provisional Patent Application No. 60/890,446.

  

A-1

  

EXHIBIT B

SCHEDULE OF ANNUAL FEE

	
Annual Fee by Year

	
 

Year

	
 

Annual Fee

	
 

2011

	
 

$15,000

	
 

2012

	
 

$20,000

	
 

2013

	
 

$26,666

	
 

2014

	
 

$35,555

	
 

2015

	
 

$47,407

	
 

2016

	
 

$47,407

	
 

...

	
 

...

	
 

End of term

	
 

$47,407

 

 

B-1Mount Knowledge Holdings, Inc.: Exhibit 10.1 - Filed by
   newsfilecorp.com

Exhibit 10.1

DEFINITIVE AGREEMENT 

(Mount Knowledge Holdings, Inc. and Birch First Advisors, LLC) 

THIS DEFINITIVE AGREEMENT (the “Agreement”) is made and entered into as of this 31st day December 2010, by and among BIRCH FIRST ADVISORS, LLC, a Delaware Limited Liability Company (the
“Seller”), MOUNT KNOWLEDGE USA, INC. (“MTKUSA”), a privately held Nevada corporation (the “MTKUSA”) and MOUNT KNOWLEDGE HOLDINGS, INC., a Nevada Corporation (the “Company”) (collectively referred to as
the “Parties”). 

RECITALS 

WHEREAS, the Seller is the owner of 11,166,690 shares of the common stock, par value $0.0001 per share and 8,888,888 shares of Series A Convertible Preferred Stock, par value $0.0001 per share of MOUNT KNOWLEDGE
USA, INC., a Nevada corporation (the “MTKUSA”), (collectively referred to as the “Shares”);

WHEREAS, the Company is a publicly listed company on the US Over-the-Counter Bulletin Board (OTCBB: MKHD) in the business of educational software development, sales and training offering innovative and proprietary
learning software products and teaching services; and

WHEREAS, the Seller have agreed to sell to the Company and the Company has agreed to purchase from the Seller the Shares of MTKUSA owned and held by the Seller in accordance with the terms and conditions set forth
hereinbelow. 

NOW, THEREFORE, in consideration of the promises and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, agree as follows: 

AGREEMENT 

1. DEFINITIVE AGREEMENT. This Agreement shall confirm the mutually understandings by and between the Company and Seller with respect to the transactions being completed hereinbelow. None of the Parties shall be
bound by any oral or written statements nor any correspondence during the course of negotiations between the Parties not stipulated in this Agreement. This Agreement, when executed, shall supersede any and all prior oral and/or written agreements
between the parties pertaining to the transaction being contemplated. This Agreement shall be in full force and effect from the date of execution with respect to all represented terms and conditions, subject to certain corporate actions and/or
documents which may require additional time to complete and/or execute, all of which shall be completed by a mutually agreed upon closing date as defined herein. 

2. STOCK PURCHASE AND SHARE EXCHANGE. Seller has agreed to sell to Company and Company has agreed to purchase from the Seller 11,166,690 shares of the common stock, par value $0.0001 per share and 8,888,888
shares of Series A Convertible Preferred Stock, par value $0.0001 per share of MOUNT KNOWLEDGE USA, INC., a Nevada corporation (the “MTKUSA”), (collectively referred to as the “Shares”) owned and held by Seller in the
form of a share exchange with Company for the same equivalent number of Shares (one-to-one (1:1) basis) in the Company in the same series and/or class of shares of the original Shares, each series and/or class having such voting powers, full or
limited, and such designations, preferences, and relative, participating, optional, or other special rights and qualifications, limitations, or restrictions thereof as are stated and expressed in the original purchase agreements of said Shares with
Seller and MTKUSA and/or from subsequently assignments. 

1 

3. EVENTS PRIOR TO CLOSING. 

3.1 Conduct of MTKUSA’s
Business. MTKUSA covenants and agrees with Company that as of the
date of this Agreement, MTKUSA has maintained its operations intact, used its
best efforts to preserve the goodwill and advantageous relationships that MTKUSA
has with consultants, customers and employees, and operated only in the ordinary
course of business. Without limiting the generality of the foregoing statement,
the MTKUSA has not, without obtaining the Company’s prior written consent, done
any of the following: 

	 	 	(a) 	
      sold or disposed of any assets of MKTUSA outside of the
      ordinary course of business;

	 	 	 	 
	 	 	(b) 	
      done any act or omitted to do any act which could cause a
      breach of or default under any contract to which the MTKUSA are a party or
      by which the MTKUSA are bound;

	 	 	 	 
	 	 	(c) 	
      modified, amended or changed any of the terms of any
      contract to which the MTKUSA are a party;

	 	 	 	 
	 	 	(d) 	
      increased the salaries, wages, bonuses or other
      compensation of any of the employees of the MTKUSA; or

	 	 	 	 
	 	 	(e) 	
      changed the terms of any existing employee benefit plan
      or adopted any new employee benefit plans.

4. Closing and Closing Date. 

4.1 Closing and Closing
Date. Subject to the satisfaction or waiver of each of the conditions
precedent to closing set forth herein, the closing of the transactions
contemplated by this Agreement (the "Closing") shall occur on or before December
31, 2010 or at such later date as shall be mutually agreed upon by the Parties
hereto (the "Closing Date").

4.2 Obligations of the Seller
at Closing. On the Closing Date, the Seller shall deliver to the Company all
of the following amounts, documents, instruments and/or agreements: 

	 	 	(a) 	
      a copy of a resolution of MTKUSA, executed by the
      directors of MTKUSA providing consent to the transactions contemplated
      hereby;

	 	 	 	 
	 	 	(b) 	
      all other documents, instruments and agreements referred
      to herein and attached hereto as Exhibits to this
  Agreement.

4.3 Obligations of
Company. On the Closing Date, the Company shall deliver to the Seller all of
the following amounts, documents, instruments and/or agreements: 

	 	 	(a) 	
      a copy of the corporate resolutions of Company executed
      by duly authorized directors of the same, providing consent to the
      transactions contemplated hereby;

	 	 	 	 
	 	 	(b) 	
      any and all other documents, instruments and agreements
      referred to herein and attached hereto as Exhibits to this
    Agreement.

2 

4.4 Post-Closing Acts. At
any time, and from time to time after the Closing Date, without the payment of
any further consideration, the Parties hereto shall duly execute, acknowledge
and deliver such assignments, conveyances, instruments of transfer, and other
documents, and will take such other action consistent with the terms of this
Agreement, as may be necessary for the purpose of giving effect to this
Agreement. 

5. Conditions Precedent to Closing. 

5.1 General Conditions. 

	 	 	5.1.1 	
      Audit of MTKUSA Financials: The Parties agree
      that, prior to Closing, MTKUSA’s financial statements for Calendar Year
      2009, completed and certified by a PCAOB registered accounting firm as
      required by the Securities and Exchange Commission (SEC) and as set forth
      by the Sarbanes–Oxley Act.

5.2 Conditions Precedent to
Company's Obligations. The obligation of the Company to consummate the
transactions contemplated by this Agreement is expressly subject to the
satisfaction, on or prior to the Closing Date, of all of the following
conditions (compliance with which or the occurrence of which may be waived in
whole or in part by Company in writing):

	 	 	5.2.1 	
      Each representation and warranty of the Seller contained
      in this Agreement shall be true in all material respects on the Closing
      Date.

	 	 	 	 
	 	 	5.2.2 	
      The Seller shall have performed and complied in all
      material respects with all covenants and conditions required by this
      Agreement to be performed prior to the Closing Date.

	 	 	 	 
	 	 	5.2.3 	
      There shall have been no material adverse change in the
      MTKUSA or the financial condition of the MTKUSA.

	 	 	 	 
	 	 	5.2.4 	
      No action or proceeding shall have been instituted before
      any court or governmental agency to restrain or prohibit, or to obtain
      damages in respect of, this Agreement, or the consummation of the
      transactions contemplated herein.

	 	 	 	 
	 	 	5.2.5 	
      All licenses, leases, permits, authorizations, approvals,
      and assignments that may, in the reasonable opinion of Company or its
      counsel, be necessary or desirable to enable Company to own, use and
      operate the MTKUSA after the Closing Date shall have been assigned to
      Company and shall be in full force and effect immediately upon Closing, if
      required by Company or otherwise.

	 	 	 	 
	 	 	5.2.6 	
      The Company shall have satisfied itself that the patents,
      patent applications, patent rights, trade name, trademarks, technology and
      know-how relating to MTKUSA can be effectively transferred on the Closing
      Date, if required by Company or otherwise.

3 

	
 	
 	
5.2.7 		
All contracts and/or agreements of the Seller related to MTKUSA shall be transferable to and assumable by Company on the Closing Date, if required by Company or otherwise.

	
	 	 	 	 
	
 	
 	
5.2.8 		
All documents and instruments executed and delivered and all actions taken in connection with this Agreement and the transactions contemplated hereby shall be satisfactory to Company and its counsel.

	
	 	 	 	 
	
 	
 	
5.2.9 		
On the Closing Date, the Seller shall provide Company with evidence of marketable title to any assets of MTKUSA free and clear of any and all liens, claims, and encumbrances, except for the liens, claims and encumbrances as
disclosed to Company prior to the date of execution of this Agreement.

	
	 	 	 	 
	
 	
 	
5.2.10 		
All persons and/or entities that have filed or claim any liens, claims, or encumbrances on any of the assets of MTKUSA shall have been executed and delivered to the Company as of the Closing Date, if required by Company or
otherwise.

	

5.3 Conditions Precedent to Seller’s Obligations. The obligation of Seller to consummate the transactions contemplated by this Agreement is expressly subject to the satisfaction, on or prior to the
Closing Date, of all of the following conditions (compliance with which, or the occurrence of which, may be waived in whole or in part by Seller in writing): 

	
 	
 	
5.3.1 		
Each and every representation and warranty of Company contained in this Agreement shall be true in all material respects at the Closing.

	
	 	 	 	 
	
 	
 	
5.3.2 		
No action, suit or proceeding shall have been instituted before any court or governmental agency to restrain or prohibit, or to obtain damages in respect of, this Agreement, or the consummation of the transactions contemplated
herein.

	
	 	 	 	 
	
 	
 	
5.3.3 		
The Company shall have performed and complied in all material respects with all obligations, covenants and conditions required by this Agreement to be performed prior to the Closing Date.

	

6. Representation and Warranties. 

6.1 Representations and Warranties of the Seller. The Seller hereby represents and warrants to the Company that the following will be true and correct as of the Closing Date, knowing and intending that the
Company will rely thereon: 

	
 	
 	
6.1.1 		
Organization and Standing. The Seller is limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, United States of America and has the corporate power and
authority to carry on its business as it is now being conducted.

	

4 

	
 	
 	
6.1.2 		
Authority. Seller warrants that it has full power and authority to enter into and perform: (i) this Agreement and (ii) all documents and instruments to be executed by Seller pursuant to this Agreement (collectively,
“Seller’s Ancillary Documents”). This Agreement and Seller’s Ancillary documents, if any, will be duly executed and delivered by duly authorized officer of Seller at Closing. This Agreement constitutes a valid and legally
binding obligation of Seller, enforceable against Seller in accordance with its terms (except to the extent that enforcement may be affected by laws relating to bankruptcy, reorganization, insolvency and creditors’ rights and by the
availability of injunctive relief, specific performance and other equitable remedies.)

	
	 	 	 	 
	
 	
 	
6.1.3 		
No Violation. The execution or delivery of this Agreement by Seller and the sale of the Shares to Company shall not violate conflict with or result in any breach of the Certificates or Articles of Organization or By-laws of
Seller or MTKUSA. There is no approval, authorization or action required by the Seller or MTKUSA for the transfer of the Shares to be made to Company.

	
	 	 	 	 
	
 	
 	
6.1.4 		
Ownership of Shares. Seller is the lawful owner of the Shares, free and clear of all security interests, liens, encumbrances, and other charges. Seller is not a party to any agreement, written or oral, creating rights in
respect to the Shares in any third person or relating to the voting of the Shares. There are no existing warrants, options, stock purchase agreements, redemption agreements, restrictions of any nature, calls or rights to subscribe of any character
relating to the stock, nor are there any securities convertible into such stock.

	

6.2 Representations and Warranties of MTKUSA.  The MTKUSA hereby represents and warrants to the Company that the following will be true and correct as of the Closing Date, knowing and intending that the Company
will rely thereon: 

	
 	
 	
6.2.1 		
Organization Authority. MTKUSA warrants that it is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada, United States of America and that MTKUSA have full power and
authority to enter into and perform: (i) this Agreement and (ii) all documents and instruments to be executed by MTKUSA pursuant to this Agreement (collectively, “MTKUSA’s Ancillary Documents”). This Agreement and MTKUSA’s
Ancillary documents, if any, will be duly executed and delivered by duly authorized officers of MTKUSA at Closing. This Agreement constitutes a valid and legally binding obligation of MTKUSA, enforceable against MTKUSA in accordance with its terms
(except to the extent that enforcement may be affected by laws relating to bankruptcy, reorganization, insolvency and creditors’ rights and by the availability of injunctive relief, specific performance and other equitable remedies.)

	

5 

	
 	
 	
6.2.2 		
Absence of Undisclosed Liabilities. Except as disclosed to Company by MTKUSA prior to the Closing Date, MTKUSA are subject to no liabilities or obligations of any nature, whether absolute or contingent, which if asserted
against Company, would have a materially adverse effect on the assets of MTKUSA.

	
	 	 	 	 
	
 	
 	
6.2.3 		
Litigation. There are no legal, administrative, arbitration or other proceedings or governmental investigations pending or, to the best of the MTKUSA’s knowledge, threatened against or otherwise affecting the MTKUSA
or its assets.

	
	 	 	 	 
	
 	
 	
6.2.4 		
Compliance With Applicable Law. The MTKUSA have complied in all material respects with all applicable laws, rules and regulations of any governmental agency or entity, and no consent, approval or authorization of any
governmental authority is required of the MTKUSA in connection with the execution or delivery of this Agreement, or the consummation of the transactions contemplated hereby.

	
	 	 	 	 
	
 	
 	
6.2.5 		
Taxes. The MTKUSA have paid, and up to the Closing Date will have either paid or have fully accrued for, all personal property, sales, employment, franchise, state, federal, and local taxes of whatsoever kind or
nature to the appropriate state, local and/or federal agencies and governmental entities, which have arisen or accrued in connection with the assets of MTKUSA. In addition, MTKUSA have filed all tax returns on the MTKUSA that it was required to file
up to and including the Closing Date. To the best knowledge of MTKUSA, all of these tax returns are correct and complete, and all taxes owed by the MTKUSA (whether or not shown on any such tax return) have been paid. The MTKUSA have withheld and
paid all taxes required to have been withheld and paid in respect of compensation and other amounts paid to any employee or independent contractor.

	
	 	 	 	 
	
 	
 	
6.2.6 		
Title to MTKUSA Assets. The MTKUSA have good and unencumbered title to the assets of MTKUSA, free and clear of any and all liens, claims, and encumbrances, as of the Closing Date other than encumbrances disclosed to
the Company in writing prior to Closing Date.

	
	 	 	 	 
	
 	
 	
6.2.7 		
Absence of Material Adverse Changes. From inception to the date of this Agreement, there has been no material adverse change with respect to the rights, properties, assets, liabilities, operations or prospects of the MTKUSA
or its assets, and MTKUSA has been conducted by the MTKUSA only in the ordinary course of business.

	
	 	 	 	 
	
 	
 	
6.2.8 		
Employee Benefits. MTKUSA acknowledges that MTKUSA does not have any full-time employees or any benefit plans as of the date of this Agreement.

	
	 	 	 	 
	
 	
 	
6.2.9 		
Employee Health and Safety. MTKUSA has, in all material respects, complied with and do not have any liability under any applicable Occupational Health and Safety Act. MTKUSA has also complied with all applicable laws and
orders concerning employee health and safety arising in connection with the services, ownership and operation of the MTKUSA and/or its assets.

	

6 

	
 	
 	
6.2.10 		
Insurance. MTKUSA has heretofore delivered to the Company a listing and description of all insurance policies carried and maintained by MTKUSA relating to MTKUSA, including, without limitation, general and product liability
insurance, property damage insurance, and statutory workers’ compensation insurance or on- the-job medical insurance.

	
	 	 	 	 
	
 	
 	
6.2.11 		
Intellectual Property. To the best of MTKUSA’s knowledge, (a) the MTKUSA has full right to own and/or use without the payment of any royalties all intellectual property that the MTKUSA currently owns, licenses and/or
uses in connection with MTKUSA (collectively, the “MTKUSA Intellectual Property”), and (b) MTKUSA Intellectual Property does not infringe the rights of any third party.

	
	 	 	 	 
	
 	
 	
6.2.12 		
Contracts. MTKUSA has heretofore delivered to the Company a list of all material contracts to which MTKUSA is a party or by which MTKUSA is bound.

	
	 	 	 	 
	
 	
 	
6.2.13 		
Accounts and Notes Receivable. All accounts receivables relating to MTKUSA’s assets arose out of bona fide transactions in the ordinary course of business and are collectible in full in accordance with their terms and
at their recorded amounts.

	
	 	 	 	 
	
 	
 	
6.2.14 		
Noncontravention. The execution, delivery and performance by MTKUSA of this Agreement and the MTKUSA’s Ancillary Documents, and the consummation of the transactions contemplated hereby and thereby, does not and will
not (i) violate any provision of the organizational documents of MTKUSA, (ii) conflict with, or result in a breach of, or constitute a default under, or result in the termination, cancellation or acceleration (whether after the filing of notice or
lapse of time or both) of any right or obligation of MTKUSA under any agreement, contract, license, permit, commitment or arrangement to which MTKUSA are a party or by which they are bound or to which any of their assets are subject, or (iii)
violate or result in a breach of or constitute a default under any judgment, order, injunction, decree, law, rule, regulation or other restriction of any court or governmental authority to which MTKUSA are subject other than in the case of clause
(ii), such conflicts, breaches, defaults, terminations, cancellations or accelerations as would not have a material adverse effect on MTKUSA.

	
	 	 	 	 
	
 	
 	
6.2.15 		
Related Party Interests. Other than those liabilities being retained as set forth hereinabove or which will be satisfied at Closing, there are no outstanding liabilities or obligations for amounts owing to or from, or
contracts or other commitments or arrangements between any shareholder or employee of MTKUSA relating to MTKUSA or its assets. No shareholder or employee of MTKUSA has any cause of action or other claim against the MTKUSA or its assets or directly
or indirectly beneficially own any debt, equity, other interest or investment in any corporation, firm or entity which is a competitor, customer or supplier of MTKUSA, except securities of any publicly-held corporation which do not exceed five (5%) percent of the outstanding voting securities of such
corporation.

	

7 

	
 	
 	
6.2.16 		
Full Disclosure. The Schedules, Exhibits and all other certificates, documents, and instruments that have been, or will be, furnished by MTKUSA pursuant to this Agreement (unless supplemented at Closing) will be, as of the
Closing, true, complete and accurate in all material respects. None of the representations and warranties made by MTKUSA in this Agreement or any Schedule, Exhibit, certificate or other document furnished by it, or on its behalf, under this
Agreement contains or will contain any misstatement or untrue statement of a material fact or omits any material fact, the omission of which would make the statements contained herein or therein materially misleading.

	

6.3 Representations and Warranties of Company. Company represents and warrants that the following will be true and correct as of the Closing Date, knowing and intending that MTKUSA will rely thereon: 

	
 	
 	
6.3.1 		
Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada, United States of America.

	
	 	 	 	 
	
 	
 	
6.3.2 		
Company has full power and authority to enter into and perform (i) this Agreement and (ii) all documents and instruments to be executed by Company pursuant to this Agreement (collectively, the “Company’s Ancillary
Documents”). This Agreement and Company’s Ancillary documents will be duly executed and delivered by duly authorized officers of Company at Closing. This Agreement constitutes a valid and legally binding obligation of Company,
enforceable against Company in accordance with its terms (except to the extent that enforcement may be affected by laws relating to bankruptcy, reorganization, insolvency and creditors’ rights and by the availability of injunctive relief,
specific performance and other equitable remedies).

	
	 	 	 	 
	
 	
 	
6.3.3 		
No consent, authorization, order or approval of, or filing or registration with, any governmental authority or other person is required for the execution and delivery by Company of this Agreement and Company’s Ancillary
Agreements, and the consummation by Company of the transaction contemplated by this Agreement and Company’s Ancillary Documents.

	
	 	 	 	 
	
 	
 	
6.3.4 		
Neither the execution and delivery of this Agreement and Company’s Ancillary Documents by Company, nor the consummation by Company of the transactions contemplated hereby, will conflict with or result in a breach of any of
the terms, conditions or provisions of Company’s organizational documents, or of any statute or administrative regulation, or of any order, writ, injunction, judgment or decree of any court or governmental authority or of any arbitration
award.

	

8 

7. Survival of Representations; Indemnification Agreements and Certain Other Matters. 

7.1 Survival.  All representations, warranties, covenants and agreements contained in this Agreement and in any Exhibits, Schedules, certificates, documents or statements delivered pursuant hereto, shall survive
the Closing Date as follows:  (a) those that relate to the transfer of good title to MTKUSA and its assets shall survive the Closing Date indefinitely; (b) those with respect to which Company has a right to seek indemnification from Seller and
MTKUSA as a result of any third-party claim and those with respect to which Seller and/or MTKUSA have a right to seek indemnification from Company as a result of any third-party claim shall survive the Closing Date for the maximum period of time
allowed by law under which such third party may bring such claim; and (c) all other representations and warranties shall survive the Closing Date for a period of three (3) years, commencing on the Closing Date. 

7.2 Indemnification by the Seller. Seller shall indemnify, defend and hold harmless Company and each of its directors, officers, employees, representatives and agents, and their respective affiliates
(collectively, the “Company’s Indemnified Parties”) from and against any and all claims, demands, losses, costs, expenses, obligations, judgments, amounts paid in settlement, liabilities, damages, recoveries and deficiencies,
including, interest, fines, penalties and reasonable attorneys fees and expenses (collectively “Liabilities”), that any Company Indemnified Party shall incur or suffer, which arise, result from, or relate to: (a) any inaccuracy or any
breach of any representation or warranty of Seller or failure to perform any covenant made by or on behalf of Seller contained in this Agreement, or in any Exhibit, Schedule or other instrument furnished or to be furnished by Seller pursuant to this
Agreement; (b) any and all excluded Liabilities; or (c) the operation of Seller prior to the Closing except for any liabilities disclosed to the Company in writing prior to the Closing Date. 

7.3 Indemnification by the MTKUSA. MTKUSA shall indemnify, defend and hold harmless Company and each of its directors, officers, employees, representatives and agents, and their respective affiliates
(collectively, the “Company’s Indemnified Parties”) from and against any and all claims, demands, losses, costs, expenses, obligations, judgments, amounts paid in settlement, liabilities, damages, recoveries and deficiencies,
including, interest, fines, penalties and reasonable attorneys fees and expenses (collectively “Liabilities”), that any Company Indemnified Party shall incur or suffer, which arise, result from, or relate to: (a) any inaccuracy or any
breach of any representation or warranty of MTKUSA or failure to perform any covenant made by or on behalf of MTKUSA contained in this Agreement, or in any Exhibit, Schedule or other instrument furnished or to be furnished by MTKUSA pursuant to this
Agreement; (b) any and all excluded Liabilities; or (c) the operation of MTKUSA by MTKUSA prior to the Closing except for any liabilities disclosed to the Company in writing prior to the Closing Date. 

7.4 Indemnification by the Company.  Company shall indemnify, defend and hold harmless Seller and MTKUSA and each of its shareholders, directors, officers, employees, representatives and agents, and their
respective affiliates (collectively, “Seller and/or MTKUSA’s Indemnified Parties”) from and against all Liabilities that any Seller and/or MTKUSA’s Indemnified Party shall incur or suffer, which arise, result from, or relate
to: (a) any inaccuracy or breach of any representation or warranty of the
Company or failure to perform any covenant made by or on behalf of the Company contained in this Agreement, or in any Exhibit, Schedule or other instrument furnished or to be furnished by Company pursuant to this Agreement; (b) any and all failures
by Company to pay or otherwise fully perform each of the liabilities disclosed to the Company in writing prior to the Closing Date; or (c) the operation of the MTKUSA by Company after the Closing Date. 

9 

7.5 Notice of Claim. Promptly upon obtaining knowledge of any claim, event, facts or demand which has given rise to, or could reasonably give rise to, a claim for indemnification hereunder, any party seeking
indemnification under this Article (an “Indemnified Party’) shall give written notice of such claim (“Notice of Claim”), to the party from which indemnification is sought (an “Indemnifying Party"),” setting forth
the amount of the Claim. The Indemnified Party shall furnish to the Indemnifying Party in reasonable detail, such information as it may have with respect to such indemnification claim (including copies of any summons, complaint or other pleading
which may have been served on it and any written claim, demand, invoice, billing or other document evidencing or asserting the same). No failure or delay by the Indemnified Party in the performance of the foregoing shall reduce or otherwise affect
the obligation of any Indemnifying Party to indemnify and hold the Indemnified Party harmless, except to the extent that such failure or delay shall have adversely affected the Indemnifying Party’s ability to defend against, settle or satisfy
any liability, damage, loss, claim or demand for which the Indemnified Party is entitled to indemnification hereunder.

7.6 Election to Defend. If the claim or demand set forth in the Notice of Claim given by the Indemnified Party pursuant to Section 7.4 of this Agreement is a claim or demand asserted by a third party, the
Indemnifying Party shall have fifteen (15) days after the Date of the Notice of Claim (as that term is hereinafter defined) to notify the Indemnified Party in writing of its election to defend such third party claim or demand on behalf of the
Indemnified Party. If the Indemnifying Party elects to defend such third party claim or demand, the Indemnified Party shall make available to the Indemnifying Party and its agents and representatives all records and other materials which are
reasonably required in the defense of such third party claim or demand and shall otherwise cooperate with, and assist the Indemnifying Party in the defense of, such third party claim or demand, and so long as the Indemnifying Party is defending such
third party claim or demand in good faith, the Indemnified Party shall not pay, settle or compromise such third party claim or demand. If the Indemnifying Party elects to defend such third party claim or demand, the Indemnified Party shall have the
right to participate in the defense of such third party claim or demand, at its own expense. If the Indemnifying Party does not elect to defend such third party claim or demand, or does not defend such third party claim or demand in good faith the
Indemnified Party shall have the right, in addition to any other right or remedy it may have hereunder, at the Indemnifying Party’s expense, to defend such third party claim or demand; provided, however, that (a) the Indemnified Party shall
not have any obligation to participate in the defense of, or defend, any such third party claim or demand; and (b) the Indemnified Party’s defense of or its participation in the defense of any such third party claim or demand shall not in any
way diminish or lessen the obligations of the Indemnifying Party under the agreement of indemnification set forth in this Section 7.

10 

7.7 Date of Notice of Claim. The term “Date of the Notice of Claim” as used in this Section 8 shall mean: 

	
 	
 	
7.7.1 		
the third business day after the date of the postmark on the registered or certified mail containing the Notice of Claim, or;

	
	 	 	 	 
	
 	
 	
7.7.2 		
the date of such personal delivery or delivery by courier or electronic facsimile, if the Notice of Claim is personally delivered or delivered via a reputable courier service (such as Federal Express), with receipt confirmed, or
sent by electronic facsimile (with receipt confirmed).

	

8. General Provisions. 

8.1 Legal and Accounting Fees. The Seller, MTKUSA and the Company shall each be responsible to pay their respective legal and accounting fees incurred by them in connection with the transactions contemplated by
this Agreement, unless otherwise mutually agreed to in writing. 

8.2 Waiver of Breach. All waivers under this Agreement shall be in writing. Any waiver by a party of the breach of any provision or of any condition precedent of this Agreement shall not operate as a waiver of
any subsequent breach of that provision or as a waiver of the breach of any other provision or of any other condition precedent. 

8.3 Severability. If any one or more provisions of this Agreement shall be adjudged or declared illegal or unenforceable, the same shall not in any way affect or impair the validity or enforceability of all or
any other provision of this Agreement. 

8.4 Governing Law.  This Agreement and the performance hereof shall be construed and interpreted in accordance with the laws of the State of Nevada, of The United States of America. Any dispute arising under or
out of this Agreement shall be submitted for resolution to an applicable state or federal court of competent jurisdiction that is located in the State of Nevada, of The United States of America. 

8.5 Venue; Waivers. The Company, Seller and MTKUSA irrevocably agree that all actions or proceedings in any way, manner or respect, arising out of or from or related to this Agreement shall be litigated in courts
having sites within the County of Clarke, State of Nevada, of The United States of America.  The Company, Seller and MTKUSA hereby waive any right they may have to transfer or change the venue of any litigation brought by another party hereto in
accordance with this paragraph. 

8.6 Assignment. No party may assign its rights, interest or obligations under this Agreement without the prior approval in writing of the other party. 

8.7 No Third Party Beneficiaries. This Agreement shall not confer any rights or remedies on any person other than the Parties and their respective successors and permitted assigns. 

11 

8.8 Entire Agreement. This Agreement constitutes the entire agreement between the Parties hereto in connection with the subject matter hereof.  This Agreement may not be modified, amended, altered or extended
orally, and no modification shall be effective unless in writing and signed by all the Parties hereto. 

8.9 Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the Parties hereto, their respective heirs, representatives, successors and assigns. 

8.10 Notices. All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing, and shall be deemed to have been given, when received, if delivered in person
or by a reputable courier service (such as Federal Express), or three (3) business days following mailing, if mailed by certified mail, return receipt requested, postage prepaid, as follows: 

	
IF TO SELLER:
		
BIRCH FIRST ADVISORS, LLC
	
	
 
		
 
	
	
 
		
350 County Rd, Ste. 102-140
	
	
 
		
Palm Beach, Florida 33480
	
	
 
		
Attn: Pier S. Bjorklund, Managing Director
	
	
 
		
 
	
	
 
		
Ph. (561) 228-4107
	
	
 
		
Fx. (561) 828-8326
	
	
 
		
Email: pbjorklund@birchfirst.com
	
	
 
		
 
	
	
 
		
 
	
	
IF TO MTKUSA:
		
MOUNT KNOWLEDGE USA, INC.
	
	
 
		
 
	
	
 
		
39555 Orchard Hill Place
	
	
 
		
Suite 600 PMB 6096
	
	
 
		
Novi, Michigan 48375
	
	
 
		
Attn: Daniel A. Carr, President and CEO
	
	
 
		
 
	
	
 
		
Ph. (248) 468-4688
	
	
 
		
Fx. (248) 671-5080
	
	
 
		
Email: dcarr@mtkus.com
	
	
 
		
 
	
	
 
		
 
	
	
IF TO COMPANY:
		
MOUNT KNOWLEDGE HOLDINGS, INC.
	
	
 
		
 
	
	
 
		
39555 Orchard Hill Place
	
	
 
		
Suite 600 PMB 6096
	
	
 
		
Novi, Michigan 48375
	
	
 
		
Attn: Daniel A. Carr, President and CEO
	
	
 
		
 
	
	
 
		
Ph. (248) 468-4688
	
	
 
		
Fx. (248) 671-5080
	
	
 
		
Email: dcarr@mkhd.net
	

12 

8.11 Exhibits and Schedules. The Exhibits and Schedules attached hereto constitute an integral part of this Agreement.  Terms defined in this Agreement that are used in any Exhibit or Schedule attached hereto and
are not otherwise defined therein shall have the meanings assigned to such terms in this Agreement. Terms defined in any Exhibit or Schedule attached hereto that are used in this Agreement or in any other Exhibit or Schedule which are not otherwise
defined herein shall have the meanings assigned to such terms in such Exhibit or Schedule. 

8.12 Headings. The headings contained in this Agreement are for convenience of reference only and shall not affect the meaning and interpretation of this Agreement. 

8.13 Counterparts.  This Agreement may be executed in multiple counterparts, each of which will be considered an original but all of which will constitute the same instrument, notwithstanding that fewer than all
of the Parties have signed the same counterpart. A counterpart signature page transmitted by facsimile machine will be given the same effect as an original signature page. Any party signing this Agreement by facsimile must provide the other Parties
with a manually signed signature page within ten (10) days after the date of this Agreement. 

[-REMAINDER OF PAGE INTENTIONALLY LEFT BLANK-] 

13 

IN WITNESS WHEREOF, the Parties hereto have caused this Definitive Agreement to be duly executed on the date and year first appearing above. 

	
WITNESSES:
		
 	
SELLER
	
	
 
		
 	
 
	
	
 
		
 	
BIRCH FIRST ADVISORS, LLC
	
	
 
		
 	
A Delaware Limited Liability Company
	
	
Print Name:
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
/s/ Pier S. Bjorklund
	
	
 
		
 	
BY: Pier S. Bjorklund
	
	
Print Name:
		
 	
ITS: Managing Director
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
WITNESSES:
		
 	
MTKUSA
	
	
 
		
 	
 
	
	
 
		
 	
MOUNT KNOWLEDGE USA, INC.
	
	
 
		
 	
A Nevada Corporation
	
	
Print Name:
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
/s/ Daniel A. Carr
	
	
 
		
 	
BY: Daniel A. Carr
	
	
Print Name:
		
 	
ITS: President and CEO
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
WITNESSES:
		
 	
COMPANY
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
MOUNT KNOWLEDGE HOLDINGS, INC.,
	
	
 
		
 	
A Nevada Corporation
	
	
Print Name:
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
 
	
	
 
		
 	
/s/ Daniel A. Carr
	
	
 
		
 	
BY: Daniel A. Carr
	
	
Print Name:
		
 	
ITS: President and CEO
	

14

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