Document:

Exhibit 10.1

January 7, 2019

 

KB Medical Systems, LLC

1990 K St NW

Suite 5R

Washington, DC 20006

 

 

Gentleman:

 

We are pleased to
deliver this letter of intent (“LOI”) which sets forth the preliminary terms and conditions of the proposed
acquisition of the assets of KB Medical Systems, LLC (“KB”) by Solei Systems, Inc. (“SOLI” or the “Company”)
, free and clear of all debts, liabilities and claims of any creditor of or claimant against KB Medical Systems, LLC, except as
expressly listed on Schedule “1” or as otherwise agreed by the parties at Closing. The proposed acquisition will be
undertaken through the issuance of common shares of SOLI to KB Medical Systems, LLC in a transaction that qualifies for non-recognition
treatment under Section 351 of the Internal Revenue Code of 1986, as amended (the “Code”), having an average market
value at closing of $ 15 million (the “Stock”), based on the average market closing price for SOLI common stock for
the five (5) trading days ending the day prior to the day of the closing (the “Acquisition”), plus an additional
$5 million in capital contributions to the business of KB known as CareClix after the Acquisition.

 

The terms of the Acquisition
and other transactions contemplated in connection therewith which are set forth herein are based upon the Company’s preliminary
and limited review of certain information concerning the business, assets, operations, condition and prospects of KB Medical Systems
and CareClix. Therefore, the Company reserves the right to modify the tax, legal and/or accounting structure of the Acquisition
and any another relevant terms contained herein based upon the results of its due diligence investigation. It is understood that,
as part of the Acquisition, SOLI will form a new subsidiary corporation (the “Subsidiary”) to acquire, own and operate
the Assets, subject to the Liabilities and the business known as CareClix.

 

1.       Definitive
Agreement. It is currently contemplated that the Acquisition will consist of the acquisition of all of the business, assets
and subsidiaries of KB Medical Systems, LLC, including CareClix, except for any assets expressly to be excluded from the Acquisition
as listed on Schedule “2”, free and clear of any claims, debts, security interests, pledges or other liabilities of
any kind of KB other than those listed on Schedule “1” (the Liabilities”) and shall be approved by KB and the
members of KB, in exchange for the Stock. The terms and provisions of the Acquisition shall be described in a definitive acquisition
agreement (the “Agreement”) by and between the Company, KB and the members of KB which shall contain the terms and
conditions set forth in this LOI, as modified and amended by subsequent negotiations of the parties, and such representations and
warranties, covenants, indemnities and conditions that are usual and customary in an Acquisition of this kind. If the Agreement
has not been approved and executed by the Board of Directors of the Company, by KB and by the members of KB, on or before January
31, 2019, this LOI shall expire and the transactions as anticipated hereunder shall be deemed to have expired without execution,
unless otherwise agreed to in writing by the parties.

 

2.       Consideration.
The consideration for the Acquisition shall be shares of common stock of SOLI with an aggregate value of $15 million at Closing
(the “Stock”) (which will qualify under Section 351 of the Code) with commitment by SOLI to provide an additional $5
in working capital, to be used as operating capital for the new subsidiary of SOLI and for such other purposes as is agreed in
the Definitive Agreement. In exchange for the Consideration, at Closing (as defined below), KB shall transfer and convey the Assets
as directed in the Agreement and shall indemnify and hold harmless the Company from any liability, loss or cost relating to the
Company’s liabilities, other than the liabilities to be assumed by the new Subsidiary of SOLI. All shares of common stock
to be issued by SOLI pursuant to the transactions contemplated hereby shall be deemed to be unregistered “restricted securities”
as defined by Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”) unless otherwise agreed.

 

3.       Closing.
Closing (“Closing”) shall take place within ten (10) days after the completion of due diligence as specified in the
Agreement, and the satisfaction of all conditions to Closing in the Agreement, including all regulatory compliance requirements,
but in no case later than March 31, 2019, unless otherwise agreed by the parties.

 

4.       Reserved.

 

5.       Representations;
Covenants. The parties hereby represent and warrant that the execution and delivery of this LOI does not, and the consummation
of the transactions contemplated hereby will not, breach, cause a default under or require the receipt of one or more consents
or approvals of any party to, any existing or proposed contracts, arrangements or understandings to

which he, she or it is a
party except as otherwise provided in this LOI.

 

6.Conditions to Close.In
addition to the other conditions to Closing specified herein and others which are included in the Agreement, the following will
be conditions to proceeding with the Acquisition: (i) execution by each Party of the Agreement; (ii) approval of the Agreement
and the Acquisition by the Members of KB Medical Systems in compliance with applicable state corporate law and federal and state
securities laws; (iii) delivery of the Consideration to KB Medical Systems free of Liabilities; (iv) completion of the Acquisition
and transfer of the Assets to the newly formed subsidiary of SOLI, including all required regulatory compliance; and (v) completion
of due

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diligence to the satisfaction of the
Company. In addition, the Definitive Agreement will include provisions for the following conditions, as hereafter agreed by the
parties:

 

		(a)	Securing of the agreed working capital of $5 million by SOLI to be
contributed to the business of CareClix held by the Subsidiary as working capital within 120 days after Closing;

		(b)	A provision for reversal of the Acquisition at the option of the
Members of KB, by unanimous vote, in the event the full amount provided for in Section 6(a) has not been completed as provided
therein, in which event all of the Shares of SOLI issued to KB at Closing shall be returned to SOLI and cancelled and the Subsidiary
shall convey to KB all of the Assets, subject to any then existing liabilities incurred in due course of the CareClix business;

		(c)	A “make-up” provision under which the total number of
Shares of SOLI issued as the Consideration at Closing shall be adjusted (upward but not downward) such that the aggregate value
of the Shares issued at Closing plus any such make-up shares, shall be equal to not less than $15 million, based on the trailing
ten (10) day average closing price of SOLI common stock on the open market for the period commencing 18 months after SOLI common
stock is admitted to trading on the OTC Markets or such other public market on which the shares are then traded.

		(d)	An undertaking that certain designated officers or principals of
the CareClix business will be employed by the Subsidiary as officers or principals, on such terms and conditions as are agreed
to among the parties at Closing;

		(e)	A provision that the existing operating managers of the CareClix
business shall continue to operate the CareClix business in the Subsidiary, under the guidance of the SOLI Board of Directors after
Closing, as set forth in appropriate agreements between the Subsidiary and each such party.

		(f)	Such other provisions as SOLI, KB and the Members of KB shall agree
upon.

 

7.       Access
to KB Medical Systems; Operation in Ordinary Course. Following the execution of this LOI and prior to Closing, KB Medical Systems
will cause or permit representatives of the Company to have reasonable access, during normal business hours, to KB Medical Systems’
management, records, facilities, accountants, auditors, attorneys and other advisors. During such period and except as otherwise
provided in this LOI, KB will (a) operate only in the ordinary course of business, (b) take commercially reasonable efforts to
maintain the value of its business as a going concern and preserve its goodwill and its relationships with customers, suppliers,
creditors, contractors and employees, and (c) notify the Company of any material adverse change with respect to KB Medical Systems’
condition, business, assets, operations or prospects.

 

8.       Public
Announcements. The Parties hereto will not make public announcements or other disclosures concerning the transaction set forth
in this LOI until and unless the Agreement is prepared and executed by all parties as provided herein, and then only as required
by regulatory or contractual disclosure requirements, but not without the prior written consent of the other parties hereto, which
consent will not be unreasonably withheld. Notwithstanding the foregoing, any of the Parties may at any time make any announcements
which are required by applicable law so long as such Party promptly upon learning of such requirement notifies the other parties
of such requirement and discusses with the other party in good faith the exact wording of any such announcement.

 

9.       Confidentiality.

(a)       The
Parties recognize that in the course of undertaking the efforts contemplated by this letter, each of them may have access to confidential
or proprietary information belonging to the other Party and the further agree that they remain bound by that certain [Nondisclosure
Agreement] dated July 17, 2018, by and between the parties hereto.

 

10.       Cooperation;
Expenses. The Parties will reasonably cooperate with each other in order to effect the transactions contemplated by this LOI
as promptly as practicable. Each Party will be responsible for its own costs and expenses, including, without limitation, fees
and expenses of attorneys, accountants, auditors, appraisers, bankers and other third parties, incurred by such Party in connection
with the Acquisition, including without limitation costs and expenses related to the structuring of the Acquisition, the preparation
and negotiation of this LOI and the Agreement, and the conduct of a meeting of the shareholders or members of any Party required
to approve the Acquisition and such costs shall not be included in the Liabilities.

 

11.       Binding
Nature. This LOI is a statement of the present intent and understanding of the Parties with respect to the Acquisition
contemplated hereby. This LOI is subject to the fulfillment of all conditions set forth herein and the satisfaction of all legal
prerequisites to the closing of the transaction contemplated herein. It is expressly understood by the Parties that, except as
set forth in the following sentence, this LOI is not a binding agreement or commitment of any of the Parties, and that it does
not, and will not, give rise to any legally binding obligation on the part of any of the Parties. Notwithstanding the foregoing,
this LOI constitutes a binding agreement of the parties as to all of Sections 4, 9, 10, 11, and 13 hereof. This LOI supersedes
any prior proposals, letters or other discussions between the Parties concerning the subject matter hereof, and all such proposals,
letters or other discussions are likewise of no binding effect and the further agree that they remain bound by that certain [Nondisclosure
Agreement] dated July 17, 2018, by and between the parties hereto. Except as otherwise provided herein, the binding agreements
set forth in this LOI may be amended or modified only by a writing executed by the Parties. In the event of any subsequent disagreement
or inconsistencies, the provisions of the Agreement, when executed, shall supersede any provision of this letter.

 

12.       Counterparts.
This LOI may be executed in counterparts, each of which will be deemed an original, but all of which taken together will constitute
one and the same instrument.

 

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13.       Governing
Law. All disputes under this LOI and the other agreements and documents desirable to effect the transactions contemplated by
this LOI (“Disputes”) shall be settled by final and binding arbitration in Alexandria, Virginia under the then effective
Commercial Arbitration Rules (the “Rules”) of the American Arbitration Association (“AAA”), as modified
hereby. Judgment on any award rendered by the arbitrator may be entered in any court having jurisdiction. The award rendered by
the arbitrator shall be final and binding on the parties. There shall be one (1) arbitrator who shall be appointed by AAA in accordance
with the listing, striking and ranking procedure in the Rules and such appointment shall be binding on the parties. The arbitrator
shall have the authority to award any remedy or relief that a court in the Commonwealth of Virginia could order or grant, including
specific performance of any obligation created hereunder, the issuance of an injunction or other provisional relief, or the imposition
of sanctions for abuse or frustration of the arbitration process. The arbitrator shall apply the law of the Commonwealth of Virginia
in deciding the merits of any Dispute. The arbitration award will be in writing. By agreeing to arbitration, the parties do not
intend to deprive any court of its jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment, or other order in
aid of arbitration proceedings and the enforcement of any award. Without prejudice to such provisional remedies as may be available
under the jurisdiction of a court, the arbitral tribunal shall have full authority to grant provisional remedies and to direct
the parties to request that any court modify or vacate any temporary or preliminary relief issued by such court, and to award damages
for the failure of any party to respect the arbitrator’s orders to that effect. In addition to damages, the arbitrator may
award any remedy provided for under applicable law and the terms hereof, including, without limitation, specific performance or
other forms of injunctive relief. It is the intent of the Parties that any arbitration shall be concluded as quickly as reasonably
practicable. The parties shall share equally the fees and expenses of the arbitration, unless the arbitrator shall determine that
a different allocation of such fees and expenses is appropriate in the circumstances, in which event the arbitrator’s determination
shall be final and binding upon the parties. Under no circumstances shall there be an awards or, or the entitlement to, any damages
for lost profits, loss of bargain, contractual damages, tort damages, or other damages based on failure or inability to complete
the Acquisition Agreement or to close the transactions contemplated for any reason whatsoever.

 

14.       Assignment.
Neither Party may assign any rights hereunder without the prior written consent of the other Parties. 

 

15.       Severability.
The invalidity, illegality or unenforceability of any provision or provisions of this Agreement will not affect any other provision
of this Agreement, which will remain in full force and effect, nor will the invalidity, illegality or unenforceability of a portion
of any provision of this Agreement affect the balance of such provision. In the event that any one or more of the provisions contained
in this Agreement or any portion thereof shall for any reason be held to be invalid, illegal or unenforceable in any respect, this
Agreement shall be reformed, construed and enforced as if such invalid, illegal or unenforceable provision had never been contained
herein. 

 

16.       Notices.
All notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly given when
delivered in person or transmitted by facsimile transmission and on the third (3rd) calendar day after being mailed by United States
registered or certified mail, return receipt requested, postage prepaid, to the addresses herein above first mentioned or to such
other address as any Party hereto shall designate to the other for such purpose in the manner hereinafter set forth.

 

If
you agree to the foregoing, please return a signed copy of this LOI to the undersigned no later than January 10, 2019 after which
time this LOI will expire if not so accepted.

 

 

 

Signature Page to Follow

 

 

 

 

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Solei Systems, Inc

 

__Joshua Flood,________ President______

Print Name / Title

 

 

_/s/______________________________________

Signature

 

 

January 7, 2019

Date

 

 

 

For KB Medical Systems, LLC

 

_Dr. John Korangy__________________________

Print Name / Title

 

 

_/s/_______________________________________

Signature

 

 

January 7, 2019

Date

    	4Converted by EDGARwiz

THIS SECURITY  HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

BIOTRICITY INC.

PROMISSORY NOTE

Principal Amount: US$_______________

Issue Date: __________, 2019

BIOTRICITY INC., a Nevada corporation (the “Company”), for value received, hereby promises to pay to XXXXXXX or his/its permitted assigns or successors (the “Holder”), the principal amount of XX Hundred Thousand Dollars (US$XX,000) (the “Principal Amount”), without demand, on the one-year anniversary of the issue date (the “Maturity Date”). This Promissory Note (as amended, modified or restated, this “Note”) shall bear interest at a fixed rate per annum equal of 10%, beginning on the Issue Date. Interest shall be computed based on a 365-day year and shall be payable, quarterly. Payment of all principal due shall be in such coin or currency of the United States of America as shall be legal tender for the payment of public and private debts at the time of payment. 

ARTICLE 1

GENERAL PROVISIONS

SECTION 1.1.  Loss, Theft. Destruction of Note.  Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this Note and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Note, the Company will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Note, a new note of like tenor and unpaid principal amount dated as of the date hereof. This Note shall be held and owned upon the express condition that the provisions of this Section 1.1 are exclusive with respect to the replacement of a mutilated, destroyed, lost or stolen Note and shall preclude any and all other rights and remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement of negotiable instruments or other securities without their surrender. 

SECTION 1.2.  Prepayment.  This Note may be prepaid by the Company in whole or in part.

SECTION 1.3.  Status of Note.  This Note is a direct, general and unconditional obligation of the Company, and constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, reorganization and other 

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similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity.

ARTICLE 2

REMEDIES

SECTION 2.1.  Events of Default.  “Event of Default” wherever used herein means any one of the following events: 

(a)

Default in the due and punctual payment of the Principal Amount, or any other amount owing in respect of, this Note when and as the same shall become due and payable if such payment is not made within five days of the date that it is first due; 

(b)

Default in the performance or observance of any covenant or agreement of the Company in this Note (other than a covenant or agreement a default in the performance of which is specifically provided for elsewhere in this Section 2.1), and the continuance of such default for a period of ten (10) days after there has been given to the Company by the Holder a written notice specifying such default and requiring it to be remedied; 

(c)

The entry of a decree or order by a court having jurisdiction adjudging the Company as bankrupt or insolvent; or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under the Federal Bankruptcy Code or any other applicable federal or state law, or appointing a receiver, liquidator, assignee, trustee or sequestrator (or other similar official) of the Company or of any substantial part of its property, or ordering the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) calendar days; 

(d)

The institution by the Company of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under the Federal Bankruptcy Code or any other applicable federal or state law, or the consent by it to the filing of any such petition or to the appointment of a receiver, liquidator, assignee, trustee or sequestrator (or other similar official) of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors; or

(e)

The Company seeks the appointment of a statutory manager or proposes in writing or makes a general assignment or an arrangement or composition with or for the benefit of its creditors or any group or class thereof or files a petition for suspension of payments or other relief of debtors or a moratorium or statutory management is agreed or declared in respect of or affecting all or any material part of the indebtedness of the Company; or

(f)

It becomes unlawful for the Company to perform or comply with its obligations under this Note. 

SECTION 2.2.  Effects of Default.  If an Event of Default occurs and is continuing for 10 days, then and in every such case the Holder may declare this Note to be due and payable immediately, by a notice in writing to the Company, and upon any such declaration, the Company shall pay to the Holder the outstanding principal amount of this Note. 

SECTION 2.3.  Remedies Not Waived.  No course of dealing between the Company and the Holder or any delay in exercising any rights hereunder shall operate as a waiver by the Holder. No failure 

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or delay by the Holder in exercising any right, power or privilege under this Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by applicable law.

ARTICLE 3

MISCELLANEOUS

SECTION 3.1.  Severability.  If any provision of this Note shall be held to be invalid or unenforceable, in whole or in part, neither the validity nor the enforceability of the remainder hereof shall in any way be affected.

SECTION 3.2.  Notice.  Where this Note provides for notice of any event, such notice shall be given (unless otherwise herein expressly provided) in writing and either (i) delivered personally, (ii) sent by certified, registered or express mail, postage prepaid or (iii) sent by facsimile or other electronic transmission, and shall be deemed given when so delivered personally, sent by facsimile or other electronic transmission (confirmed in writing) or mailed. Notices shall be addressed, if to Holder, to its address as provided in the books and records of the Company and, if to the Company, to its principal office.

SECTION 3.3.  Governing Law.  This Note shall be governed by, and construed in accordance with, the laws of the State of New York (without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction). 

SECTION 3.4.  Forum.  The Holder and the Company hereby agree that any dispute which may arise out of or in connection with this Note shall be adjudicated before a court of competent jurisdiction in the State of New York and they hereby submit to the exclusive jurisdiction of the courts of the County and State of New York, as well as to the jurisdiction of all courts to which an appeal may be taken from such courts, with respect to any action or legal proceeding commenced by either of them and hereby irrevocably waive any objection they now or hereafter may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that such court is an inconvenient forum. SECTION 3.5.  Headings.  The headings of the Articles and Sections of this Note are inserted for convenience only and do not constitute a part of this Note. 

SECTION 3.6.  Amendments.  Any provision of this Note may be amended, modified or waived if and only if the Holder of this Note and the Company has consented in writing to such amendment, modification or waiver of any such provision of this Note. 

SECTION 3.7.  No Recourse Against Others.  The obligations of the Company under this Note are solely obligations of the Company and no officer, employee or stockholder shall be liable for any failure by the Company to pay amounts on this Note when due or perform any other obligation. 

SECTION 3.8.  Assignment; Binding Effect.  This Note may not be assigned by the Company without the prior written consent of the Holder. This Note shall be binding upon and inure to the benefit of both parties hereto and their respective permitted successors and assigns. This Note may not be assigned by the Holder without the written consent of the Company 

IN WITNESS WHEREOF, the Company has caused this Note to be signed by its duly authorized officer on the date hereinabove written. 

BIOTRICITY INC.

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By: ____________________________

       Name:

       Title:

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