Document:

fs1a1ex10v_kraig.htm

     

    Exhibit
10.5

     

    
    

     

    
      	      
              THE
      CONFIDENTIAL PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED
      SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR
      CONFIDENTIALITY.

            

    

     

    
      EXCLUSIVE LICENSE
AGREEMENT

      

      THIS
LICENSE AGREEMENT (the "Agreement") is made and is effective as of May 8th 2006,
(the “Effective Date”) by and between The University of Wyoming, having its
licensing office at Department 3672 1000 E. University Ave., Department 3672,
Laramie, WY 82071 (hereinafter referred to as "University"), and Kraig Biocraft
Laboratories, Inc. a Wyoming corporation having a principal place of business at
1400 Dennison Road, East Lansing, Michigan 48823 (hereinafter referred to as
"Licensee").

       

      RECITALS

      

      WHEREAS,
Certain inventions disclosed under University Case No. 02-004, generally
characterized as, synthetic spider silk proteins, and genetic sequences coding
for such proteins, hereinafter collectively referred to as "Invention 1," were
made in the course of research at University, by Dr. Randy Lewis and Dr. Don
Roth (hereinafter, "Inventors"); and

      

      WHEREAS,
Certain inventions disclosed under University Case Nos. ***, ***, ***, ***, generally characterized
as, natural spider silk proteins, and genetic sequences coding for such
proteins, hereinafter collectively referred to as "Invention 2," were made in
the course of research at University, by Dr. Randy Lewis and others
(hereinafter, "Inventors").  Invention 1 and Invention 2 are
collectively referred to herein as “The Inventions”, and are further described
in section 1.7 below; and

      

      

      WHEREAS,
Licensee is a "small business firm" as defined in 15 U.S.C. 632;
and

      

      WHEREAS,
Licensee wishes to obtain certain exclusive rights from University for the
commercial development, manufacture, use, and sale of the Inventions, and
University is willing to grant such rights on the terms and conditions set forth
in this Agreement; and

      

      WHEREAS,
University is desirous that the Invention be developed and utilized to the
fullest extent so that the benefits can be enjoyed by the general
public.

      

      NOW
THEREFORE, the parties agree as follows:

       

      1.  DEFINITIONS

       

      1.1  "Affiliate"
means any corporation or business entity that directly or indirectly controls,
is controlled by, or is under common control with Licensee to the extent of at
least 50 percent of the outstanding stock or other voting rights entitled to
elect directors.

       

      
        	[***]  THE CONFIDENTIAL
      PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR
    CONFIDENTIALITY.

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      
 

      1.2           "Data"
means all information owned or controlled by University and acquired by
Licensee, its Affiliates or its sublicenses directly or indirectly from or
through University, its units, its employees, the Inventors, or its consultants
relating to the Invention, Licensed Products, or this Agreement, including but
not limited to, all patent prosecution documents and all information received
from Inventors.

      

      1.3  "Licensed
Field" means the using and selling of Licensed Products made only by the
Licensed Method in all fields and markets.  “Licensed Field” expressly
excludes the using and selling of Licensed Products made by any other method
except the Licensed Method.  “Licensed Field” also expressly excludes
the using and selling of Licensed Products described in Invention 2 in the
fields and markets of medical disposables, medical equipment, cosmetics and
sports equipment.

      

      1.4  "Licensed
Method" means the making of Licensed Products by silkworms only.

      

      1.5  "Licensed
Product(s)" means any material or product or kit, or any service, process, or
procedure that (i) either is covered by University Patent Rights or whose
discovery, development, registration, manufacture, use, or sale would
constitute, but for the license granted to Licensee pursuant to this Agreement,
an infringement of any claim within University Patent Rights or (ii) is
discovered, developed, made, sold, registered, or practiced using Licensed
Method or which may be used to practice the Licensed Method, in whole or in
part

      

      1.6
"University Patent Rights" means U.S. Patent Application Numbers 10/479,638 and
10/488,056 and U.S. Patent(s) issuing thereon, and Patent Numbers 5,728810,
5,733,771, 5,756,677, 5,989,894, 5,994,099 and patent application(s)
corresponding to all of the foregoing, owned by University, including any
reissues, extensions (including governmental equivalents thereto),
substitutions, continuations, (but limited to continuations-in-part which do no
contain new subject matter not entitled to the priority date of the parent
application) and divisions thereof.

      

      1.7  "Territory"
means the United States of America.

       

      2.  GRANT

      
      

       

      
        	      
                [***]  THE CONFIDENTIAL
      PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR
      CONFIDENTIALITY.

              

      

       

      2.1  Subject
to the limitations set forth in this Agreement, University hereby grants to
Licensee a license under University Patent Rights in the Licensed Field and in
the Territory.  This license shall be co-exclusive with one other
licensee for University Patent Rights under Invention 2 and exclusive for
University Patent Rights under Invention 1.

      
 

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      2.2  If
the Invention was funded by the U.S. Government, the license granted hereunder
shall be subject to the overriding obligations to the U.S. Government set forth
in 35 U.S.C. 200-212 and applicable governmental implementing regulations and to
the royalty free non-exclusive licenses thereunder to which the U.S. Government
is entitled.

      

      2.3  University
expressly reserves the right to have the Invention and associated intellectual
property rights licensed hereunder used for educational, research and other
non-business purposes and to publish the results thereof.

      

      3.  SUBLICENSES

      3.1  University
grants to Licensee the right to grant sublicenses to third parties under any or
all of the licenses granted in Article 2, provided Licensee has current
exclusive rights thereto under this Agreement at the time it exercises a right
of sublicense.  To the extent applicable, such sublicense shall
include all of the rights of and obligations due to University (and to the
United States Government) that are contained in this Agreement.

      

      3.2  Within
thirty (30) days after execution thereof, Licensee shall provide University with
a copy of each sublicense issued hereunder, and shall thereafter collect and
guarantee payment of all royalties and other obligations due University relating
to the  sublicensees and summarize and deliver all reports due
University  relating to the sublicensees.

      

      3.3  Upon
termination of this Agreement for any reason, University, shall determine
whether any or all sublicenses shall be canceled or assigned to
University.  The university will notify any such sublicense of its
intention to terminate such sublicense and shall provide the sublicense 30 days
in which to cure any breach or defect.

       

      4.  LICENSE ISSUE
FEE, LICENSE MAINTENANCE FEES

      AND MILESTONE
PAYMENTS

      

      4.1  Licensee
agrees to pay to University a License Issue Fee of Ten Thousand Dollars
($10,000) within ***
after the execution of this Agreement.  This fee is *** and is not ***.

      
        

           

          
            	      
                    [***]  THE CONFIDENTIAL
      PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR
      CONFIDENTIALITY.

                  

          

           

        

         

      

       

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
 

      4.2  Licensee
agrees to pay to University a License Maintenance Fee of Ten Thousand Dollars
($10,000) beginning on the first year anniversary of this Agreement, and
continuing annually on the anniversary of each subsequent year.  The
License Maintenance Fee is *** and is not ***.

      

      4.3  Licensee
agrees to pay to University a Laboratory Research Fee of Thirteen Thousand Seven
Hundred Dollars ($13,700) beginning on eight (8) months from the Effective Date
of this Agreement, and continuing annually on the anniversary of the Effective
Date for each subsequent year.  The Laboratory Research Fee is ***.

      

      

      4.4           Licensee
shall pay to University full patent costs for Invention 1.  Such costs
relating to Invention 1 shall not exceed five thousand dollars per year
($5000).  Licensee shall pay to University one quarter of the patent
costs for Invention 2.  Such costs relating to Invention 2 shall not
exceed five thousand dollars per year ($5,000).

       

      5.  EQUITY

      

      5.1   Licensee
agrees that pursuant this licensing agreement, Licensee will transfer to the
University of Wyoming Foundation, within sixty days (60 days) from the effective
date of this agreement, One million fifty thousand shares (1,050,000 shares)of
common stock in Licensee, which is equal to not less than three percent (3%) of
Licensee’s outstanding issued stock.  Licensee represents and warrants
that when the stock is delivered to University (i) it shall constitute no less
than three percent (3%) of the total issued shares of all classes of stock of
Licensee, fully diluted, (ii) that it shall be free from any claims, security
interests or liens and (iii) that Licensee shall have the full right and
authority to deliver the stock to University.  University shall have
no less rights in and with respect to such stock than the founders of Licensee
have or obtain with respect to their stock, including, but without limitation,
any anti-dilution, events of disposition, registration, notice, or
indemnification rights.

      

      5.2
Licensee will further transfer to the University of Wyoming Foundation, within
sixty days (60 days) from the effective date of this agreement, Seven Hundred
Thousand shares (700,000 shares)of common stock in Licensee, which is equal to
not less than two percent (2%) of Licensee’s outstanding issued stock, subject
to Licensee’s right to repurchase or call such stock at any time within five
years from the effective date of this agreement at an exercise price of One
Hundred and Fifty Thousand Dollars 

       

      
      

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

        
           

          
            	[***]  THE CONFIDENTIAL
      PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR
    CONFIDENTIALITY.

          

           

        

         

        ($150,000).  Licensee
represents and warrants that when the stock is delivered to University (i) it
shall constitute no less than two percent (2%) of the total issued shares of all
classes of stock of Licensee, fully diluted, (ii) that it shall be free from any
claims, security interests or liens except as stated directly above and (iii)
that Licensee shall have the full right and authority to deliver the stock to
University.  University shall have no less rights in and with respect
to such stock than the founders of Licensee have or obtain with respect to their
stock, including, but without limitation, any anti-dilution, events of
disposition, registration, notice, or indemnification rights.

      

      
 

      5.3  With the stock, Licensee
shall deliver to University its bylaws and shareholder rights
documents.

       

      6.  DILIGENCE

      

      6.1  Licensee,
upon execution of this Agreement, shall *** to develop, test, obtain
any required governmental  approvals, manufacture, market and sell
Licensed Products in all countries of the Territory and shall earnestly and
diligently endeavor to market the same within a reasonable time after execution
of this Agreement and in quantities sufficient to meet the market demands
therefor.

      

      6.2  Licensee
shall be entitled to exercise prudent and reasonable business judgment in
meeting its diligence obligations in this Article 6.

      

      6.3  Licensee
shall perform the following:

      
        	
                 
      

              	
                ·

              	
                commence
      commercial marketing and sales of a Licensed Product in the Territory
      within *** of
      receiving approval of such Licensed Product in such country;
      or

              

      

      
        	
                 
      

              	
                ·

              	
                reasonably
      fill the market demand for Licensed Products in the Territory following
      commencement of marketing in such country at all times during the
      exclusive period of this Agreement;
or

              

      

      

      If
Licensee fails to perform any of the preceding items described in this section
6.3 in a timely manner, then University shall have the right and option upon 90
day prior written notice, either to terminate this Agreement with respect to any
or all countries where Licensee has failed to perform or to which the failure
relates.  Should the Licensee fail to fulfill the diligence
requirements within said 90 day period, the notice shall be effective at the end
of said period.  This right, if exercised by University, supersedes
the rights granted in Article 2 (GRANT).

       

      
        
          
            	[***]  THE CONFIDENTIAL
      PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR
    CONFIDENTIALITY.

          

           

        

      

      7.  PROGRESS AND
ROYALTY REPORTS

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      
 

      7.1  Beginning
***, and *** thereafter, Licensee shall
submit to University a progress report covering Licensee's activities related to
the development and testing of all Licensed Products and commercial activities
like sales and marketing.  These progress reports shall be made for
each Licensed Product in each country of the Territory.

      

      7.2  The
progress reports submitted under section 7.1 shall include sufficient
information to enable University to determine Licensee's progress in fulfilling
its obligations under Article 6, including, but not limited to, the following
topics:

       

      
        
          	
                  -

                	
                  summary
      of work completed

                
	
                  -

                	
                  key
      scientific discoveries

                
	
                  -

                	
                  summary
      of work in progress, including product development and testing and
      progress in obtaining government approvals

                
	
                  -

                	
                  current
      schedule of anticipated events or milestones

                
	
                  -

                	
                  market
      plans for introduction of Licensed Products

                
	
                  -

                	
                  summary
      of resources (dollar value) spent in the reporting period for research,
      development, and marketing of Licensed Products

                
	
                  -

                	
                  activities
      in obtaining sublicenses and activities of sublicenses

                
	
                  -

                	
                  certified
      financial statements as of the end of the previous calendar quarter if
      available

                

        

      7.3  Licensee
shall have a continuing responsibility to keep University informed of the
large/small entity status (as defined by the United States Patent and Trademark
Office) of itself and its sublicenses.

       

      7.4  Licensee
shall report to University in its immediately subsequent progress the date of
first commercial sale of each Licensed Product in each country.

      

      
      

      7.6  If
no sales of Licensed Products have been made during any reporting period, a
statement to this effect shall be made by Licensee.

       

      8.  BOOKS AND
RECORDS

      

      8.1  Licensee
shall keep  and cause its Affiliates  and sublicenses to
keep books and records in accordance with generally acceptable accounting
principles accurately showing all transactions and information relating to this
Agreement.  Such books and records shall be preserved for at least
*** from the date of the
entry to which they pertain and shall be open to inspection by representatives
or agents of University at reasonable times upon reasonable notice.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      
        
           

          
            	[***]  THE CONFIDENTIAL
      PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR
    CONFIDENTIALITY.

          

           

        

         

      

      8.2  The
fees and expenses of University’s representatives performing such an examination
shall be borne by University.  However, if an error in royalties of
more than *** percent
(***%) of the total
royalties due for any year is discovered,  or if as a result of the
examination it is determined that ***, then the fees and
expenses of these representatives shall be borne by Licensee.

       

      9.  TERM OF THE
AGREEMENT

      

      9.1  Unless
otherwise terminated by operation of law or by acts of the parties in accordance
with the provisions of this Agreement, this Agreement shall be in force from the
effective  date recited on page one and shall remain in effect in each
country of the Territory until the longer of (i) expiration of the
last-to-expire patent licensed under this Agreement in such country or (ii) ten
years from the date of first commercial sale of a Licensed Product in such
country.

      

      9.2  Any
expiration or termination of this Agreement shall not affect the rights and
obligations set forth in the following Articles:

       

      
        
          	
                  Article
      8

                	
                  Books
      and Records

                
	
                  Article
      12

                	
                  Disposition
      of Licensed Products

                
	 
      	
                  on
      Hand Upon Termination

                
	
                  Article
      13

                	
                  Use
      of Names, Trademarks and Confidential Data

                
	
                  Article
      18

                	
                  Indemnification

                
	
                  Article
      23

                	
                  Failure
      to Perform

                

        

      10.  TERMINATION
BY UNIVERSITY

      

      10.1  If
Licensee should breach or fail to perform any provision of this Agreement, then
University may give written notice of such default (Notice of Default) to
Licensee.  If Licensee should fail to cure such default within ninety
(90) days of the effective date of such notice, University shall have the right
to terminate this Agreement and the licenses herein by a second written notice
(Notice of Termination) to Licensee.  If a Notice of Termination is
sent to Licensee, this Agreement shall automatically terminate on the effective
date of such notice.  Termination shall not relieve Licensee of its
obligation to pay all amounts due to University as of the effective date of
termination and shall not impair any accrued right of University.

       

      
        
           

          
            	[***]  THE CONFIDENTIAL
      PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR
    CONFIDENTIALITY.

          

           

        

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      11.  TERMINATION
BY LICENSEE

      

      11.1  Licensee
shall have the right at any time to terminate this Agreement in whole or as to
any portion of University Patent Rights by giving *** notice thereof in writing
to University.

      

      11.2  Any
termination pursuant to the above paragraph shall not relieve Licensee of any
obligation or liability accrued hereunder prior to such termination or rescind
anything done by Licensee or any payments made to University hereunder prior to
the time such termination becomes effective, and such termination shall not
affect in any manner any rights of University arising under this Agreement prior
to such termination.

       

      12.  DISPOSITION
OF LICENSED PRODUCTS AND INFORMATION 

      ON HAND UPON
TERMINATION

      

      12.1  Upon
termination of this Agreement by either party (i) Licensee shall have the
privilege of disposing of all previously made or partially made Licensed
Products, but no more, within a period of *** after the effective date
of termination, provided, however, that the disposition of such Licensed
Products shall be subject to the terms of this Agreement including, but not
limited to, the payment of royalties at the rate and at the time provided herein
and the rendering of reports thereon; (ii) Licensee shall promptly return, and
shall cause its sublicenses to return, to University all property belonging to
University, if any, that has been provided to Licensee or its Affiliates or
sublicenses hereunder, and all copies and facsimiles thereof and derivatives
therefrom (except that Licensee may retain one copy of written material for
record purposes only, provided such material is not used by Licensee for any
other purpose and is not disclosed to others.

      

      13.  USE OF NAMES,
TRADEMARKS, AND CONFIDENTIAL INFORMATION

      

      13.1  Nothing
contained in this Agreement shall be construed as granting any right to Licensee
or its Affiliates to use in advertising, publicity, or other promotional
activities any name, trade name, trademark, or other designation of University
or any of its units (including contraction, abbreviation or simulation of any of
the foregoing).  Unless required by law, the use by Licensee of the
name, "The University of Wyoming" or any campus or unit of University is
expressly prohibited, and Licensee shall not use such names in any manner
without University’s prior written consent.

       

      14.  LIMITED
WARRANTY

      

      14.1  University
warrants to Licensee that it has the lawful right to grant this
license.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      
 

      14.2  This
license and the associated Invention are provided WITHOUT WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY,
EXPRESS OR IMPLIED.  UNIVERSITY MAKES NO REPRESENTATION OR WARRANTY
THAT THE LICENSED PRODUCTS OR LICENSED METHODS WILL NOT INFRINGE ANY PATENT OR
OTHER PROPRIETARY RIGHT.

      

      14.3  IN
NO EVENT WILL UNIVERSITY BE LIABLE FOR ANY INCIDENTAL, SPECIAL OR CONSEQUENTIAL
DAMAGES RESULTING FROM EXERCISE OF THIS LICENSE OR MANUFACTURE, SALE, OR USE OF
THE INVENTION OR LICENSED PRODUCTS OR LICENSED METHODS.

      

      14.4  Nothing
in this Agreement shall be construed as:

      
        	
                 
      

              	
                (14.4a)

              	
                a
      warranty or representation by University as to the validity or scope of
      any University Patent Rights; or

              

      

      
        	
                 
      

              	
                (14.4b)

              	
                a
      warranty or representation that anything made, used, sold or otherwise
      disposed of under any license granted in this Agreement is or will be free
      from infringement of patents or other intellectual property or biological
      materials of third parties; or

              

      

      
        	
                 
      

              	
                (14.4c)

              	
                an
      obligation to bring or prosecute actions or suits against third parties
      except as provided in Article 17;
or

              

      

      
        	
                 
      

              	
                (14.4d)

              	
                conferring
      by implication, estoppel or otherwise any license or rights under any
      patents or other intellectual property of University other than University
      Patent Rights as defined herein, regardless of whether such patents are
      dominant or subordinate to University Patent Rights;
  or

              

      

      
        	
                 
      

              	
                (14.4e)

              	
                an
      obligation to furnish any know-how not provided in University Patent
      Rights.

              

      

       

      15.  PATENT
PROSECUTION 

      AND
MAINTENANCE

      

      15.1  University
shall diligently prosecute and maintain the United States patents comprising
University Patent Rights using counsel of its choice.  University
counsel shall take instructions only from University.  University
shall provide Licensee with copies of all relevant documentation so that
Licensee may be informed and apprised of the continuing
prosecution.  Licensee agrees to keep this documentation
confidential.

       

      
        
          
             

            
              	[***]  THE CONFIDENTIAL
      PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR
    CONFIDENTIALITY.

            

             

          

        

      

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      
 

      15.2  University
shall give due consideration to amending any patent application to include
claims reasonably requested by Licensee to protect the Licensed Products
contemplated to be sold under this Agreement.

      

      15.4  All
present and future costs of preparing, filing, prosecuting, defending, and
maintaining all patent applications and/or patents, including interferences and
oppositions, and all corresponding foreign patent applications and patents
covered by University Patent Rights shall be borne by Licensee as described and
limited in paragraph 4.4..  Costs shall be payable by Licensee within
*** of the billing
date.  ***.

      

      15.5  Licensee's
obligation to underwrite and to pay patent prosecution costs shall continue for
so long as this Agreement remains in effect, provided, however, that Licensee
may terminate its obligations with respect to any given patent application or
patent upon three (3) months' written notice to
University.  University shall use reasonable efforts to curtail patent
costs when such a notice is received from Licensee.  ***  Commencing on
the effective date of such notice, University may continue prosecution and/or
maintenance of such application(s) or patent(s) at its sole discretion and
expense, and Licensee shall have no further right or licenses
thereunder.

      

      15.6  University
shall have the right to file patent applications at its own expense in any
country or countries in which Licensee has not elected to secure patent rights
or in which Licensee's patent rights hereunder have terminated, and such
applications and resultant patents shall not be subject to this Agreement and
may be freely licensed by University to others.

       

      16.  PATENT
MARKING

      

      16.1  Licensee
shall mark all Licensed Products made, used,  sold or otherwise
disposed of under the terms of this Agreement, or their containers, in
accordance with the applicable patent marking laws.

       

      
        
          
            
              
                	[***]  THE CONFIDENTIAL
      PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR
    CONFIDENTIALITY.

              

               

            

          

        

      

                                              

      17.  PATENT
INFRINGEMENT

      

      17.1  In
the event that Licensee shall learn of the substantial infringement of any
patent licensed under this Agreement, Licensee shall call University’s attention
thereto in writing and shall provide University with reasonable evidence of such
infringement.  Both parties to this Agreement agree that during the
period and in a jurisdiction where Licensee has exclusive rights under this
Agreement, neither will notify a third party of the infringement of any of
University Patent Rights without first obtaining consent of the other Party,
which consent shall not be unreasonably denied.  Both parties shall
use their best efforts in cooperation with each other to terminate such
infringement without litigation.

       

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      
 

      17.2  Licensee
may request that University take legal action against the infringement of
University Patent Rights.  Such request shall be made in writing and
shall include reasonable evidence of such infringement and damages to
Licensee.  If the infringing activity has not been abated within *** following the effective
date of such request, University shall have the right to

      

      (17.2a)  commence
suit on its own account.  In the event University elects to bring suit
in accordance with this paragraph, Licensee may thereafter join such suit at its
own expense; or

      

      (17.2b)  refuse
to participate in such suit and University shall give notice of its election in
writing to Licensee by the end of the *** after receiving notice of
such request from Licensee.  Licensee may thereafter bring suit for
patent infringement if and only if University elects not to commence suit and if
the infringement occurred during the period and in a jurisdiction where Licensee
had exclusive rights under this Agreement.  However, in the event
Licensee elects to bring suit in accordance with this paragraph, University may
thereafter join such suit at its own expense.

      

      17.3  Such
legal action as is decided upon shall be at the expense of the party on account
of whom suit is brought and all recoveries recovered thereby shall belong to
such party, provided, however, that recoveries from legal actions brought
jointly by University and Licensee shall be shared equally by them, after paying
the reasonable legal expenses of both parties.

      

      17.4  Each
party agrees to cooperate with the other in litigation proceedings instituted
hereunder but at the expense of the party on account of whom suit is
brought.  Such litigation shall be controlled by the party bringing
the suit.  Each party may be represented by counsel of its
choice.

       

      18.  INDEMNIFICATION
AND INSURANCE

      

      18.1  Licensee
shall indemnify, hold harmless and defend University, its trustees, officers,
employees, students, agents, the State of Wyoming and the Inventors against any
and all claims, suits, losses, liabilities, damages, costs, fees and expenses
(including reasonable attorneys' fees) resulting from or arising out of the
exercise of this license or any sublicense.  This indemnification
shall include, but is not limited to, any and all claims alleging products
liability.

       

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      
 

      18.2           University
shall promptly notify Licensee in writing of any claim or suit brought against
University in respect of which University intends to invoke the provisions of
Article 18.  Licensee shall keep University informed on a current
basis of its defense of any claims pursuant to Article 18.  Licensee
shall, throughout the term of this Agreement, at its sole cost and expense
(through insurance companies or through self-insurance), insure its activities
in connection with this Agreement.

       

      19.  NOTICES

      

      19.1  Any
notice or payment required to be given to either party shall be deemed to have
been properly given and to be effective (a) on the date of delivery if delivered
in person or (b) five (5) days after mailing if mailed by first-class certified
mail, postage paid and deposited in the United States mail, to the respective
addresses given below, or to such other address as it shall designate by written
notice given to the other party.

      

      In the case of
Licensee:                                                       Kraig
Biocraft Laboratories, Inc.

      Attention Legal
Department

      1400 Dennison Road

      East Lansing, Michigan
48823

      

      With an
electronic copy, in PDF or MS Word compatible format to:

       

      Legal@kraigbiocraftlabs.com,
and ***

      

      

      In the
case of University:

      University
of Wyoming

      Research
Products Center

      1000 E.
University Ave.

      Department
3672

      Laramie,
WY 82071

      Attention:
Director

      
         

      

      
        
          
            
              
                
                  	[***]  THE CONFIDENTIAL
      PORTION OF THIS AGREEMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR
    CONFIDENTIALITY.

                

                 

              

            

          

        

      20.  ASSIGNABILITY

      

      20.1  This
Agreement is binding upon and shall inure to the benefit of University,
Licensee, and their respective successors and assigns.  Licensee must
notify University within thirty (30) days of any assignment of this
Agreement.

       

      21.  LATE
PAYMENTS

      

      21.1  In
the event any amounts due University hereunder, including but not limited to
royalty payments, fees and patent cost reimbursements, are not received when
due, Licensee shall pay to University ***.

      

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

       

      22.  WAIVER

      

      22.1  It
is agreed that no waiver by either party hereto of any breach or default of any
of the covenants or agreements herein set forth shall be deemed a waiver as to
any subsequent and/or similar breach or default.

       

      23.  FAILURE TO
PERFORM

      

      23.1  In
the event of a failure of performance due under the terms of this Agreement and
if it becomes necessary for either party to undertake legal action against the
other on account thereof, then the prevailing party shall be entitled to
reasonable attorney's fees in addition to costs and necessary
disbursements.

       

      24.  GOVERNING
LAWS

      

      24.1  The
University of Wyoming does not waive its sovereign immunity or its governmental
immunity by entering into this Agreement and fully retains all immunities and
defenses provided by law with regard to any action based on this
Agreement.  Any actions or claims against the University of Wyoming
under this Agreement must be in accordance with and are controlled by the
Wyoming Governmental Claims Act, W.S. 1-39-101 et seq. (1977) as
amended.

      

      The
parties hereto agree that (i) the laws of Wyoming shall govern this Agreement,
(ii) any questions arising hereunder shall be construed according to such laws,
and (iii) this Agreement has been negotiated and executed in the State of
Wyoming.

       

      25.  PREFERENCE
FOR UNITED STATES INDUSTRY

      

      25.1  If
the U.S. Government sponsored the Invention in whole or in part, Licensee agrees
that any products sold in the United States embodying this Invention or produced
through the use thereof will be manufactured substantially in the United States
to the greatest extent practical and as required by law.

       

      26.  FOREIGN
GOVERNMENT APPROVAL

      OR
REGISTRATION

      

      26.1  If
this Agreement or any associated transaction is required by the law of any
nation to be either approved or registered with any governmental agency,
Licensee shall assume all legal obligations to do so and the costs in connection
therewith.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      27.  EXPORT
CONTROL LAWS

      

      27.1  Licensee
shall observe all applicable United States and foreign laws with respect to the
transfer of Licensed Products and related technical data to foreign countries,
including, without limitation, the International Traffic in Arms Regulations
(ITAR) and the Export Administration Regulations.

       

      28.  MISCELLANEOUS

      

      28.1  The
headings of the several articles are inserted for convenience of reference only
and are not intended to be a part of or to affect the meaning or interpretation
of this Agreement.

      

      28.2  This
Agreement will not be binding upon the parties until it has been signed below on
behalf of each party, in which event, it shall be effective as of the date
recited on  page one.

      

      28.3  No
amendment or modification hereof shall be valid or binding upon the parties
unless made in writing and signed on behalf of each party.

      

      28.4   This
Agreement embodies the entire understanding of the parties and shall supersede
all previous communications, representations or understandings, either oral or
written, between the parties relating to the subject matter hereof.

      

      28.5  In
case any of the provisions contained in this Agreement shall be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions hereof, but this
Agreement shall be construed as if such invalid or illegal or unenforceable
provisions had never been contained herein.

       

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      
 

      IN
WITNESS WHEREOF, both University and Licensee have executed this Agreement, in
duplicate originals, by their duly authorized representatives on the day and
year hereinafter written.

      

      A
signature to this agreement transmitted to the other party by facsimile
transmission or other electronic means, shall be recognized as a valid
acceptance of this agreement

      

       

      
        
          	
                  Kraig
      Biocraft Laboratories, Inc.

                	 
      	
                  University
      of Wyoming

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                  By__________________________

                	 
      	
                  By___________________________

                
	
                   On behalf of
      Kraig Biocraft

                	 
      	 
      
	
                   Laboratories,
      Inc.

                	 
      	
                  (Signature)

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                  Name
      Kim Thompson

                	 
      	
                  Name_________________________

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                  Title
      C.E.O

                	 
      	
                  Title__________________________

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                  Date
      May _________, 2006

                	 
      	
                  Date__________________________

                

        

      

    

     

     

     

    15f8k121209ex10i_bellmore.htm

     

     

    
      Exhibit
10.1

      

      

      Stock
Purchase Agreement

      

      

      Dated as
of December 12, 2009

      

      

      By and
Among

      

      

      Walter
Kostiuk

      

      and

      

      Mark
and Bernard Gruberg

      

      and

      

      Bellmore
Corporation

      

      

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

       

      

      table
of Contents

       

      
        
          	 
      	 
      
	
                  Section 1. Construction and
      Interpretation

                	
                  3

                
	
                      1.1. Principles
      of Construction.

                	
                  3

                
	 
      	 
      
	
                  Section 2.  The
      Transaction

                	
                  4

                
	
                      2.1. Purchase
      Price:

                	
                  4

                
	
                      2.2. Transfer
      of Shares and Terms of Payment:

                	
                  4

                
	
                      2.3.
      Closing.

                	
                  4

                
	
                      2.4.
      Escrow Shares

                	
                  4

                
	
                      2.5
      Additional Consideration

                	
                  5

                
	 
      	 
      
	
                  Section
      3.  Representations and Warranties

                	
                  5

                
	
                      3.1.
      Representations and Warranties of the Sellers and the
      Company.

                	
                  5

                
	
                      3.2. Covenants
      of the Sellers and the Company.

                	
                  7

                
	
                      3.3.
      Representations and Warranties of the Purchaser

                	
                  8

                
	 
      	 
      
	
                  Section
      4.  Miscellaneous

                	
                  9

                
	
                      4.1.
      Expenses.

                	
                  9

                
	
                      4.2. Governing
      Law.

                	
                  9

                
	
                      4.3.
      Resignation of Old and Appointment of New Board of
      Directors.

                	
                  9

                
	
                      4.4.
      Indemnification.

                	
                  9

                
	
                      4.5.
      Disclosure.

                	
                  10

                
	
                      4.6.
      Notices.

                	
                  10

                
	
                      4.7. Parties in
      Interest.

                	
                  11

                
	
                      4.8. Entire
      Agreement.

                	
                  11

                
	
                      4.9.
      Amendments.

                	
                  11

                
	
                      4.10.
      Severability.

                	
                  11

                
	
                      4.11.
      Counterparts

                	
                  12

                
	 
      	 
      

        

       

      

      

      
        
          
          

        

        
          PAGE 2 OF
13

          
            

          

        

        
          
          

        

      

      

      

       

      

      Stock
Purchase Agreement

      

      This
stock purchase agreement (the “Agreement”), dated as
of December 12, 2009, is entered into by and among Bellmore Corporation, a
Nevada corporation (“Bellmore” or the
“Company”),
Mark Gruberg and Bernard Gruberg (the “Sellers”), and Walter
Kostiuk (the “Purchaser”) and
together with the Company and the Sellers, the “Parties”, and each
individually, a “Party”).

      

      W i t n e s s e t
h:

      

      Whereas,
the Sellers are shareholders of Bellmore and own and/or control the shares
listed on Schedule
A, attached hereto, which represents approximately 84.39% of the issued
and outstanding common stock of the Company, (the “Stock”);
and

      

      Whereas,
the Purchaser desires to acquire the Stock from Sellers.

      

      Now,
Therefore, in consideration of the foregoing recitals and the mutual
promises, representations and covenants hereinafter set forth and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

      

      Section
1. Construction and Interpretation

      

      1.1. Principles of
Construction.

      

      (a) All references to Articles,
Sections, subsections and Appendixes are to Articles, Sections, subsections and
Appendixes in or to this Agreement unless otherwise specified.  The
words “hereof,” “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement.  The term “including” is not
limiting and means “including without limitations.”

      

      (b) In the computation of periods of
time from a specified date to a later specified date, the word “from” means
“from and including”; the words “to” and “until” each mean “to but excluding”;
and the word “through” means “to and including.”

      

      (c) The Table of Contents hereto and
the Section headings herein are for convenience only and shall not affect the
construction hereof.

      

      (d) Both the Sellers and the Purchaser
acknowledge and understand that Anslow & Jaclin LLP (the “Counsel”)
represents the Company, and does not represent or act as legal counsel for the
Purchaser or the Sellers in their individual capacities.

      

      (e) This Agreement is the result of
negotiations among the Parties and has been reviewed by the
Counsel.  Accordingly, this Agreement shall not be construed against
any Party merely because of such Party’s involvement in its
preparation.

      

      (f) Wherever in this Agreement the
intent so requires, reference to the neuter, masculine or feminine shall be
deemed to include each of the other, and reference to either the singular or the
plural shall be deemed to include the other.

       

       

      
        
          
          

        

        
          PAGE 3 OF
13

          
            

          

        

        
          
          

        

      

       

      
 

      Section
2.  The Transaction

      

      2.1.
Purchase Price:

      

      Sellers
hereby agree to sell to the Purchaser, and the Purchaser, in reliance on the
representations and warranties contained herein, and subject to the terms and
conditions of this Agreement, agrees to purchase from Sellers the Stock for a
total purchase price of two hundred and seventy five thousand dollars ($275,000)
(the “Purchase
Price”).  The Purchase Price is payable in the following
manner:

      

      
        	
                1.  

              	
                The
      Purchaser shall pay a thirty thousand dollar ($30,000) non-refundable
      deposit (the “Deposit”),
      payable to the Sellers by wire transfer to the Escrow Account (as defined
      herein), to be released to the Sellers immediately upon the execution of
      this Agreement; and

              

      

      

      
        	
                2.  

              	
                The
      balance of the Purchase Price of two hundred and forty five thousand
      dollars ($245,000) (the “Balance”) shall
      be due and payable on or before January 14, 2010 (the “Termination
      Date”).  If the Balance is not delivered to the Escrow
      Account by the Purchaser by 5:00pm ET on the Termination Date, any portion
      of the Balance previously paid to the Escrow Account shall be returned to
      the Purchaser.

              

      

      

      
        	
                3.  

              	
                If,
      after the Termination Date, the Purchaser still desires to purchase the
      Stock from the Sellers, he retains the right to do so by paying to the
      Sellers (i) the Balance and (ii) an additional two thousand dollar
      ($2,000) penalty for every seven (7) day period that the Balance is not
      paid in full (the “Penalty
      Payment”), not to exceed twelve thousand dollars ($12,000) or forty
      two (42) days (the “Option
      Period”).  If, at the end of the Option Period the
      Balance and any applicable Penalty payment are not paid in full (a “Non-Payment”),
      the Escrow Agent shall return any portion of the Balance held in the
      Escrow Account to the Purchaser and Purchaser shall have no further
      obligation under this Agreement, including, but not limited to any
      obligation to purchase the Stock.  Failure by Purchaser to
      purchase the Stock under this Agreement shall not constitute a breach or a
      default under this Agreement.

              

      

      

      2.2. Transfer of Shares and Terms of
Payment:

      

      In
consideration for the transfer of the Stock by the Sellers to the Purchaser, the
Purchaser shall pay the Purchase Price in accordance with the terms of this
Agreement.  The transfer of the shares and payment thereof shall be in
the following manner:

      

      
        	
                i)  

              	
                The
      Purchaser will place the Deposit into an escrow account (the “Escrow
      Account”) with Anslow & Jaclin LLP (the “Escrow Agent”)
      on behalf of the Sellers to be released to the Sellers immediately upon
      the execution of this Agreement.

              

      

      

      
        	
                ii)  

              	
                Simultaneously
      with the delivery of the Deposit, the Sellers shall deliver to the Escrow
      Agent, the certificates for the Stock duly endorsed for transfer to be
      held in escrow in accordance with the terms of this
    Agreement.

              

      

       

       

      
        
          
          

        

        
          PAGE 4 OF
13

          
            

          

        

        
          
          

        

      

      
 

      2.3.
Closing Date.

      

      Subject to the terms and conditions of
this Agreement, the closing shall take place by wire transfer and overnight mail
on or before 5:00 P.M. EST on January 14, 2010, or at such later date as
provided for in Section 2.1(3) of this Agreement, provided that the terms of
such section have been met in full (the “Closing
Date”).

      

      2.4. Escrow of Shares.

      

      The Purchaser acknowledges that the
Stock with a medallion guaranteed stock power shall be held in the Escrow
Account (the “Escrow
Shares”) by the Escrow Agent until such time as the Purchase Price has
been paid in full.  In the event of Non-Payment by the Purchaser, the
Escrow Shares shall be immediately returned to the Sellers.  At such
time as the Purchase Price and applicable Penalty Payment, if any, is paid in
full, the Escrow Shares shall be released to the Purchaser.

       

      Section
3.  Representations and Warranties

      

      3.1.
Representations and Warranties of the Sellers and the Company.

      

      3.1.1 The
Company is a corporation duly organized and validly existing under the laws of
the State of Nevada and has all corporate power necessary to engage in all
transactions in which it has been involved in as well as any general business
transactions in the future that may be desired by its directors.

       

      3.1.2  The
Company is in good standing with the Secretary of State of Nevada.

      

      3.1.3           The
Company has, and will have on the Closing Date, no outstanding debt or
obligations whatsoever.  Should the Purchaser discover any obligation
of the Company that was not paid prior to the Closing Date, the Sellers
undertake to indemnify the Purchaser for a period of two (2) years from the
Closing Date, for any and all such liabilities, whether outstanding or
contingent or otherwise.

      

      3.1.4           The
Company will have no assets or liabilities on the Closing Date.

      

      3.1.5           The
Company is not subject to any pending or threatened litigation, claims or
lawsuits from any party, and there are no pending or threatened proceedings
against the Company by any federal, state or local government, or any
department, board, agency or other body thereof.

      

      3.1.6           The
Company is not a party to any contract, lease or agreement which would subject
it to any performance or business obligations in the future after the Closing
Date.

      

      3.1.7           The
Company does not own any real estate or any interests in real
estate.

      

      3.1.8           The
Company is not liable for any income, real or personal property taxes to any
governmental or state agencies whatsoever.

       
 

      3.1.9           The
Company is not in violation of any provision of laws or regulations of federal,
state or local government authorities and agencies.

       

      
        
          
          

        

        
          PAGE 5 OF
13

          
            

          

        

        
          
          

        

      

       

      
 

      3.1.10           The
Sellers, either directly or by representation, are the lawful owners of record
of the Stock, and the Sellers presently have, and will have at the Closing Date,
the power to transfer and deliver the Stock to the Purchaser in accordance with
the terms of this Agreement.  The delivery to the Purchaser of
certificates evidencing the transfer of the Stock pursuant to the provisions of
this Agreement will transfer to the Purchaser good and marketable title thereto,
free and clear of all liens, encumbrances, restrictions and claims of any
kind.

      

      3.1.11           All
issuances of the Company of the shares in their common stock in past
transactions have been legally and validly effected, and all of such shares in
the common stock are fully paid and non-assessable.

      

      3.1.12           There
are no outstanding subscriptions, options, warrants, convertible securities or
rights or commitments of any nature in regard to the Company’s authorized but
unissued common stock.

      

      3.1.13           There
are no outstanding judgments, liens or any other security interests filed
against the Company or any of its properties.

      

      3.1.14           The
Company has no subsidiaries.

      

      3.1.15           The
Company has no employment contracts or agreements with any of its officers,
directors, or with any consultants, employees or other such
parties.

      

      3.1.16           The
Company has no insurance or employee benefit plans whatsoever.

      

      3.1.17           The
Company is not in default under any contract, or any other
document.

      

      3.1.18           The
Company has no outstanding powers of attorney and no obligations concerning the
performance of the Sellers concerning this Agreement.

      

      3.1.19          
The Company is not and has not ever been party to a non-compete agreement with
any person or entity.

      

      3.1.20           The
execution and delivery of this Agreement, and the subsequent closing thereof,
will not result in the breach by the Company or the Sellers of any agreement or
other instrument to which they are or have been a party.

      

      3.1.21           All
financial and other information which the Company and/or the Sellers furnished
or will furnish to the Purchaser, including information with regard to the
Company and/or the Sellers contained in the SEC filings filed by the Company
since its inception (i) is true, accurate and complete as of its date and in all
material respects except to the extent such information is superseded by
information marked as such, (ii) does not omit any material fact, not misleading
and (iii) presents fairly the financial condition of the organization as of the
date and for the period covered thereby.

      

      3.1.22         
The representations and warranties made herein by the Sellers and the Company
shall be true and correct in all material respects on and as of the Closing Date
hereof with the same force and effect as though said representations and
warranties had been made on and as of the Closing Date.

       

       

      
        
          
          

        

        
          PAGE 6 OF
13

          
            

          

        

        
          
          

        

      

      
 

      3.1.23         
The representations and warranties made above shall survive the Closing Date and
shall expire for all purposes in the date numerically corresponding to the
Closing Date in the twenty-fourth (24th) month after the Closing
Date.

      

      3.2.
Covenants of the Sellers and the Company.

      

      From the
date of this Agreement and until the Closing Date, the Sellers and the Company
covenant the following:

      

      3.2.1           The
Sellers will preserve intact the current status of the Company as an OTC
Bulletin Board quoted company.

      

      3.2.2           The
Sellers will furnish the Purchaser with all corporate records and documents,
such as the Articles of Incorporation and Bylaws, or any other corporate
document or record requested by the Purchaser.  The Company’s current
Articles of Incorporation and Bylaws are attached hereto and incorporated herein
as composite Schedule B.

      

      3.2.3           The
Company will not enter into any contract or business transaction, merger or
business combination, or incur any further debts or obligations without the
express written consent of the Purchaser.

      

      3.2.4           The
Company will not amend or change its Articles of Incorporation or Bylaws, or
issue any further shares or create any other class of shares in the Company
without the express written consent of the Purchaser.

      

      3.2.5           The
Company will not issue any stock options, warrants or other rights or interests
in or to its shares without the express written consent of the
Purchaser.

      

      3.2.6           The
Sellers will not encumber or mortgage any right or interest in their shares of
the common stock being sold to the Purchaser hereunder, and also they will not
transfer any rights to such shares of the common stock to any third party
whatsoever.

      

      3.2.7           The
Company will not declare any dividend in cash or stock, or any other
benefit.

      

      3.2.8           The
Company will not institute any bonus, benefit, profit sharing, stock option,
pension retirement plan or similar arrangement.

      

      3.2.9           On
the Closing Date, the Company and the Sellers will obtain and submit to the
Purchaser resignations of current officers and directors.

      

      3.3 Representations
and Warranties of the Purchaser.

      

      3.3.1           The Purchaser has the requisite power and authority to
enter into and perform this Agreement and to purchase the shares being sold to
it hereunder.  The execution, delivery and performance of this
Agreement by the Purchaser and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized, and no further
consent or authorization is required.  This Agreement has been duly
authorized, executed and delivered by the Purchaser and constitutes, or shall
constitute when executed and delivered, a valid and binding obligation of the
Purchaser enforceable against the Purchaser in accordance with the terms
thereof.

       

       

      
        
          
          

        

        
          PAGE 7 OF
13

          
            

          

        

        
          
          

        

      

      
 

      3.3.2           The
Purchaser is, and will be at the time of the execution of this Agreement, an
“accredited investor,”
as such term is defined in Regulation D promulgated by the Commission under the
1933 Act, is experienced in investments and business matters, has made
investments of a speculative nature and has purchased securities of United
States publicly-owned companies in the past and, with its representatives, has
such knowledge and experience in financial, tax and other business matters as to
enable such Purchaser to utilize the
information made available by the Company to evaluate the merits and risks of
and to make an informed investment decision with respect to the proposed
purchase, which represents a speculative investment.  The Purchaser
has the authority and is duly and legally qualified to purchase and own shares
of the Company.  The Purchaser is able to bear the risk of such
investment for an indefinite period and to afford a complete loss
thereof.  The information set forth on the signature page hereto
regarding the Purchaser is
accurate.

      

      3.3.3           If,
on the Closing Date, Purchaser purchases the Stock pursuant to the terms of this
Agreement, Purchaser will do so for its own account for investment only and not
with a view toward, or for resale in connection with, the public sale or any
distribution thereof.

      

      3.3.4           The
Purchaser understands and agrees that the Stock have not been registered under
the 1933 Act or any applicable state securities laws, by reason of their
issuance in a transaction that does not require registration under the 1933 Act
(based in part on the accuracy of the representations and warranties of the
Purchaser contained herein), and that such
Stock must be held indefinitely unless a subsequent disposition is registered
under the 1933 Act or any applicable state securities laws or is exempt from
such registration.  In any event, and subject to compliance with
applicable securities laws, the Purchaser may enter into lawful hedging
transactions in the course of hedging the position they assume and the Purchaser
may also enter into lawful short positions or other derivative transactions
relating to the Stock, or interests in the Stock, and deliver the Stock, or
interests in the Stock, to close out their short or other positions or otherwise
settle other transactions, or loan or pledge the Stock, or interests in the
Stock, to third parties who in turn may dispose of these Stock.

      

      3.3.5           The
Stock shall bear the following or similar legend:

      

      “THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, NOR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.”

       

       

       

      
        
          
          

        

        
          PAGE 8 OF
13

          
            

          

        

        
          
          

        

      

      
 

      3.3.6           The
offer to sell the Stock was directly communicated to the Purchaser by the
Company.  At no time was any Purchaser presented with or solicited by
any leaflet, newspaper or magazine article, radio or television advertisement,
or any other form of general advertising or solicited or invited to attend a
promotional meeting otherwise than in connection and concurrently with such
communicated offer.

      

      3.3.7           The
Purchaser represents that the foregoing representations and warranties are true
and correct as of the date hereof and, unless such Purchaser otherwise notifies
the Company prior to the Closing Date shall be true and correct as of the
Closing Date.

      

      3.3.8           The
foregoing representations and warranties shall survive the Closing Date and for
a period of one year thereafter.

      

      Section
4.  Miscellaneous

      

      4.1. Expenses.

      

      Each of the Parties shall bear its/his
own expenses in connection with the transactions contemplated by this
Agreement.

      

      4.2. Governing Law.

      

      The interpretation and construction of
this Agreement, and all matters relating hereto, shall be governed by the laws
of the State of Nevada applicable to agreements executed and to be wholly
performed solely within such state.

      

      4.3. Resignation of Old and Appointment
of New Board of Directors and Officers.

      

      The Company and the Sellers shall take
such corporate action(s) required by Bellmore's Articles of Incorporation and/or
Bylaws to (a) appoint the below named persons to their respective positions,
to be effective on the Closing
Date, and (b) obtain and submit to the Purchaser, together with all required
corporate action(s) the resignation of the current board of directors, and any
and all corporate officers as of the Closing Date.

      

      
        	
                Name

              	
                Position

              
	
                Walter
      Kostiuk

              	
                President,
      Chief Executive Officer, Director and Chairman of the Board of
      Directors

              

      

      

      4.4 Indemnification.

      

      The Purchaser shall indemnify and
hold harmless the Sellers from and against any and all losses, damages, expenses
and liabilities (collectively “Liabilities”) or actions, investigations,
inquiries, arbitrations, claims or other proceedings in respect thereof,
including enforcement of this Agreement (collectively “Actions”)
(Liabilities and Actions are herein collectively referred to as “Losses”).   Losses
include, but are not limited to all reasonable legal fees, court costs and other
expenses incurred in connection with investigating, preparing, defending,
paying, settling or compromising any suit in law or equity arising out of this
Agreement or for any breach of this Agreement notwithstanding the absence of a
final determination as to a Purchaser’s obligation to reimburse the Sellers for
such Losses and the possibility that such payments might later be held to have
been improper.

       

       

      
        
          
          

        

        
          PAGE 9 OF
13

          
            

          

        

        
          
          

        

      

       

      
 

      The
Sellers shall indemnify and hold harmless the Purchaser from and against any and
all losses, damages, expenses and liabilities (collectively “Liabilities”) or
actions, investigations, inquiries, arbitrations, claims or other proceedings in
respect thereof, including enforcement of this Agreement (collectively “Actions”)
(Liabilities and Actions are herein collectively referred to as “Losses”).   Losses
include, but are not limited to all reasonable legal fees, court costs and other
expenses incurred in connection with investigating, preparing, defending,
paying, settling or compromising any suit in law or equity arising out of this
Agreement or for any breach of this Agreement notwithstanding the absence of a
final determination as to Sellers’ obligation to reimburse the Purchaser for
such Losses and the possibility that such payments might later be held to have
been improper.

      

      4.5.
Disclosure.

      

      The Parties agree that they will not
make any public comments, statements, or communications with respect to, or
otherwise disclose the execution of this Agreement or the terms and conditions
of the transactions contemplated by this Agreement without the prior written
consent of the Parties, which consent shall not be unreasonably
withheld.

       

      4.6.
Notices.

      

      Any notice or other communication
required or permitted under this Agreement shall be sufficiently given if
delivered in person or sent by facsimile or by overnight registered mail,
postage prepaid, addressed as follows:

      

      If to the
Sellers, to:

      

      Bellmore Corporation

      Attn: Bernard Gruberg

      1806 Bellmore Street

      Oakhurst,
NJ 07755

      Telephone:
(732) 876-1559

      Facsimile:
(732) 663-1569

      

      If to the
Purchaser, to:

      

      Walter Kostiuk

      1990 Main St.

      Suite
750

      Sarasota,
FL 34236

      Telephone:
(941) 309-5356

      Facsimile: (941) 309-5257

      

      Or such other address or number as
shall be furnished in writing by any such Party, and such notice or
communication shall, if properly addressed, be deemed to have been given as of
the date so delivered or sent by facsimile.

       

       

      
        
          
          

        

        
          PAGE 10
OF 13

          
            

          

        

        
          
          

        

      

      
 

      4.7.
Parties in Interest.

      

      This Agreement may not be transferred,
assigned or pledged by any Party hereto, other than by operation of
law.  This Agreement shall be binding upon and shall inure to the
benefit of the Parties hereto and their respective heirs, executors,
administrators, successors and permitted assigns.

      

      4.8. Entire Agreement.

      

      This Agreement and the other documents
referred to herein contain the entire understanding of the Parties hereto with
respect to the subject matter contained herein. This Agreement shall supersede
all prior agreements and understandings between the Parties with respect to the
transactions contemplated herein.

      

      4.9. Amendments.

      

      This Agreement may not be amended or
modified orally, but only by an agreement in writing signed by the
Parties.

      

      4.10. Severability.

      

      In case any provision in this Agreement
shall be held invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions hereof will not in any way be
affected or impaired thereby.

      

      4.11. Counterparts.

      

      This Agreement may be executed in any
number of counterparts, including counterparts transmitted by telecopier, PDF or
facsimile transmission, any one of which shall constitute an original of this
Agreement.  When counterparts of copies have been executed by all
parties, they shall have the same effect as if the signatures to each
counterpart or copy were upon the same document and copies of such documents
shall be deemed valid as originals.  The Parties agree that all such
signatures may be transferred to a single document upon the request of any
Party.

      

      [-REMAINDER
OF PAGE LEFT BLANK-]

      

      

      

      

      

      
        
          
          

        

        
          PAGE 11
OF 13

          
            

          

        

         

      

      

      

      

      In Witness
Whereof, each of the Parties hereto has caused its/his name to be
hereunto subscribed as of the day and year first above written.

      

      

      Company:

      

      Bellmore
Corporation
 

      By: ____________________

      Name:  Bernard
Gruberg

      Title:   Chief Financial
Officer

      
 

      Sellers:

       

      ________________________

      Mark Gruberg,
Individually

       

      ________________________

      Bernard Gruberg,
Individually

      
 

      

      Purchaser:

       

      By:
____________________

      Name:
Walter Kostiuk, Individually

       

       

      Escrow
Agent:

      

      ANSLOW
& JACLIN, LLP

      

      

      By:____________________

      

      

      

      

      
        
          
          

        

        
          PAGE 12
OF 13

          
            

          

        

        
          
          

        

      

      

      

      

      

      

      

      

      

      

      SCHEDULE
A

      

      
        	
                Shareholder
      Name

              	
                No.
      of Shares

              
	
                Mark
      Gruberg

              	
                1,000,000

              
	
                Bernard
      Gruberg

              	
                1,000,000

              
	
                Total

              	
                2,000,000

              

      

      

      
 

       

       

       

       

       

       

       

       

       PAGE 13 OF
13

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