Document:

exmo_ex101.htm

EXHIBIT 10.1

 

THIS TECHNOLOGY LICENCE AGREEMENT (the "Agreement") is made the 8th day of June 2008.

 

Between:

 

(1)   David Bychkov, founder and inventor of the BT2 technology, on individual whose address is at 7432 Emerald Drive, Manassas, Virginia (hereinafter called "the Licensor") of the first part;

 

And

(2)   BT2 International, Inc., a company incorporated in Nevada whose registered office is at Suite 2067, 1117 Desert Lane, Las Vegas, NV 89102-0000 (hereinafter called "the Licensee") of the second part.

 

WHEREAS:

A.    The Licensor has developed and is the sole and exclusive owner of the Intellectual Property Rights in the Technology (as these terms are defined herein).

 

A.    The Licensee wishes to obtain a licence to use the Technology for the purpose of fabricating and manufacturing products from the Patents pending and marketing and distributing products from the Patents pending in the Territories.

A.    The Licensor is prepared to grant to the Licensee, an exclusive, transferable and non-revocable right and licence to the Technology within the Territory, subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, the receipt and sufficiency arc acknowledged, the parties hereby agree as follows:

1.     DEFINITIONS

 

	
 
"Confidential Information" 

	
Means all information (whether in print, oral, magnetic, optical or electronic form) which is expressly marked as confidential or which is manifestly of a confidential nature or which is confirmed in writing to be confidential within thirty (30) day of its disclosure. It shall include, but shall not be limited to, all information of the Licensor which relates to:

(a)    the subject matter of this Agreement;

(b)    the  content of the Technology, including all directions, instructions, manuals, drawings and/or processes (whether in tangible form or otherwise) provided to the  Licensee arising out of connection with the use of the Technology or any part thereof;

 

	
 

	
 

 

 

              

 

 

 

 

  

 

  

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(a)     the personnel, policies, product plans, designs, costs, finances, marketing plans, research development or business strategies of the Licensor; and

 

(a)     the terms upon which the Technology is being supplied pursuant to this Agreement.

          

Information shall not be considered confidential to the extent that it is publicly disclosed through no fault of the receiving party hereto, either before or after it becomes known to the receiving party.

	 	 
	
"Documentation"  

	
Means the operating manuals, guides and other support materials provided by the Licensor to the Licensee in either print, magnetic, optical or electronic form, including any materials which are designed to assist or supplement the understanding or application of the Technology.

	  	  
	
"Effectivc Date"  

	
Means the 8th day of June 2008.

	  	  
	
"End-User"

	
Means an end-user of the Licensed Product that has, before securing access to the Licensed Product, entered into an EULA, with the Licensee.

	  	  
	
"EULA"

	
Means the end-user licence agreement between the Licensee and each end user in the Territory which permits the use of the Technology by such end-user and which incorporates the provisions set out in Clause 5.1.7.

	  	  
	
"Field of Use"

	
Means the field of monitoring devices to be used in the health care industry.

	  	  
	
"Implementation Date" 

	
Means the date upon which the Licensee commences the actual fabrication, manufacture and marketing of the products. Such date is expected to commence once the second round of financing is completed, some 120 days after the Effective Date of this agreement.

	  	  
	
"Improvements"  

	
Means any and all changes, modifications, additions, alterations, enhancements, upgrades and development to the Technology, but shall not include any part of the Technology or Documentation, which remains proprietary to the Licensor.

 

  

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"Intellectual Property Rights"

	
Mean any and all vested, contingent or future inventions, innovations, discoveries, design rights, model rights, patents, patent applications, trade secrets, copyrights, codes, technical information and know-how, including but not limited to any methods, techniques, processes, discoveries, inventions, innovations, unpatentable processes, technical information, specifications, recipes, formulae, designs, plans documentation, drawings, data and other technical information, relating to the Technology, Documentation and the Licensed Product, registrations of and applications to register any of the aforesaid rights, rights in the nature of any the aforesaid rights in any country, rights in the nature of unfair competition rights and rights to sue for passing off relating to the Technology and Documentation and any other proprietary information belonging to the Licensor, whether solely, jointly or otherwise.

	  	  
	
"License" 

	
Means the licence granted to the Licensee under Clause 2.

	  	  
	
"License Fee"  

	
Means the fees payable by the Licensee to the Licensor as set out in Clause 3.1.1.

	  	  
	
"Licensed Product"  

	
Means any monitoring device, in the form prescribed in the Patent pending documents, and fabricated using any part of the Technology, and as described in Schedule 2.

	  	  
	
"Parties"

	
Means the Licensor and the Licensee collectively and "Party" means either the Licensee or the Licensor, as the context dictates.

	  	  
	
"Revenue"

	
Means any and all revenues received and receivable by the Licensee, including but not limited to transaction fees, subscription fees, and all other revenue sources attributable to the use of the Technology under this Agreement. For the purposes of this definition, the Revenue shall be computed prior to any taxes, refund, discount, credit or other offset that the Licensee may deduct from the Revenue.

	  	  

 

  

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"Royalty"     

	
Means the percentage of annual Revenue payable by the Licensee to the Licensor as calculated in Schedule 3.

	  	  
	
"Sale Price"

	
Means the price quoted and charged by the Licensee in direct sales to any party of any part of the Licensed Product

	  	  
	
"Technology" 

	
Means the products manufactured from the Patents pending as described in Schedule I, as the same exists on the Effective Date and to be licensed to the Licensee under this Agreement for the Field of Use.

	  	  
	
"Term"  

	
Means the licence duration as stipulated in Clause 11.1 below.

	  	  
	
"Territory"  

	
Means the territories of the world that this License applies.

                                 

1.2            In this Agreement, unless contrary intention appears:

 

(a)      the clause headings are for case of reference only and shall not be relevant to interpretation;

 

(a)      a reference to a clause number is a reference to its subclauses;

 

(a)     words in the singular number include the plural and vice versa;

 

(a)     words importing a gender include any other gender;

 

(a)     a reference to a person includes bodies corporate and unincorporated associations and partnerships;

 

(a)      a reference to a schedule or clause is a reference to a schedule or clause of this Agreement;

 

(a)      the recitals to this Agreement do not form part of the Agreement; and

 

(a)      monetary references are references to the United States currency.

 

2.      LICENCE

 

	
2.1  

	
Subject to the Licensee's compliance with the terms and conditions of this Agreement, the Licensor hereby grants to the Licensee an exclusive, transferable, non-revocable (except for cause) right and licence, to use the Technology solely for the purposes of:

 

	
2.1.1     

	
to fabricate and manufacture products from the Patents;

 

  

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2.1.2     

	
to use, have used, make, have made, sell, have sold, and lease, sell and/or otherwise transfer copies of the Licensed Product on such terms and conditions as described herein and in the Schedules annexed hereto, in the Field of Use, within the Territory and for the Term only.

 

	
2.2  

	
The Parties agree and acknowledge that this licence transfers to the Licensee the exclusive, transferable, non-revocable interests in the property or Intellectual Property Rights to the Technology, Licensed Product and Documentation. Titles to the Technology, Licensed Product and Documentation and the Intellectual Property Rights of whatever nature therein (including any copies, alterations, modifications or amendments made hereto) are and shall remain the sole property of the Licensor.

 

	
2.3  

	
Notwithstanding anything in this agreement, and in particular Item 2.2 (above), providing all obligations of the Licensee have been met, ownership and title to the Technology, Licensed Product and Documentation and the Intellectual Properly Rights of whatever nature therein (including any copies, alterations, modifications or amendments made hereto) shall transfer to the Licensee upon meeting the following milestone:

 

●   Meeting the $1,000,000 revenue mark from evaluation kit sales and/or BT2 watch sales to prospective distributors.

 

	
2.4  

	
The parties acknowledge that the technology is patented pending in U.S.A., however the applications for the technology's uses are worldwide. Therefore this license applies to all of the countries and territories of the world. In the event any patent or patent pending process is or becomes in default. Licensee may intervene and correct such default.

 

	
2.5  

	
Should the Licensee feel justified in patenting the technology in other countries of the world, permission is granted to pursue such action, in whomever name is more desirable. Whatever action is taken in this regard, the terms and conditions of this license shall apply.

 

	
2.6  

	
All rights not expressly granted herein to the Licensee are reserved by the Licensor.

  

3.      FEES AND GRANT OF EQUITY

 

	
3.1

	
In consideration of the grant of the licence herein, the Licensee agrees to pay the Licensor the following amounts:

 

	
3.1.1     

	
A non-refundable up-front licence fee of $5,000 being due and payable 120 days from the date of execution of this Agreement, i.e., on the 8th day of June 2008. Such fee shall be payable from the first $100,000 raised by the Licensor from investors identified by the Parties.

 

  

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3.1.2     

	
A non-refundable royalty advance of $25,000 being due and payable 210 days from the date of execution of this Agreement, i.e., on the 8th day of June 2008. Such fee shall be payable from the next $500,000 raised by the Licensor from investors identified by the Parties.

 

	
3.13

	
The fees payable in items 3.1.1 and 3.1.2 shall be considered as advance royalty payments due in accordance with the royalty scheme set out in Schedule 2 of this Agreement on a quarterly basis and concurrent with the Licensee's submission of sales reports pursuant to Clause 5.8, and on the last day the Term.

 

	
3.2

	
All payments made to the Licensor shall be in U.S.A. Dollars, without any deduction set off or withholding whatsoever.

 

	
3.3

	
All payments made to the Licensor hereunder shall be exclusive of any sale and use tax or any similar tariff, import, duty, fees or assessments (including the amount of interest and penalties in connection therewith) or governmental charge (collectively know as "Liabilities"). In the event such Liabilities are levied upon or chargeable for whatever reason, the Licensee shall be responsible for the payment of or reimbursement to the Licensor for the payment of such Liabilities (as the case may be)

 

	
3.4

	
Time of payment shall be of the essence.

 

	
3.5

	
In the event of any failure to make any payment due to the Licensor in accordance with the foregoing clauses, without prejudice to anything else in this Agreement and/or any other rights which the Licensor may have at law, the Licensor shall have the right to:

 

	
3.5.1    

	
forthwith suspend or terminate the Licence hereby granted to the Licensee; and/or

 

	
3.5.2    

	
provide the Licensee an extension of time to complete such payments, at the sole discretion of the Licensor

 

	
3.5.3    

	
charge the Licensee, in respect of any and all overdue payments, interest at a rate of 1% (one per cent) above the base lending rate of the designated bank of BT2 International, Inc. per month or part thereof, compounded monthly, on the outstanding balance.

 

	
3.6

	
Upon termination of the Licence, the Licensor may repossess any copies of the Technology, Documentation and Licensed Product delivered to the Licensee or made by the Licensee including such copies of the Licensed Product in the control or possession of the Licensee. For such purpose, the Licensee or anyone or more of its agents or authorized representatives shall be entitled at anytime and without notice to enter upon any premises in which the same are or are reasonable believed by the Licensor to be kept, stored or used.

 

	
3.7

	
The Parties agree that the Licensor's acceptance of any purported payment of Royalty from the Licenses shall not be deemed the Licensor's acceptance of the validity and accuracy of any record and document in support thereof. For avoidance of doubt, the Licensor reverses the right to reject any such record or document as valid or accurate subsequent to its acceptance of any purported payment of Royalty and in such event, the Licensor shall have the right to recover the balance of any sums thereby found due and unpaid.

 

  

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3.8

	
The parties agree that there will be certain milestones to be achieved during the development of the final product and the marketing of this BT2 product. As each of these milestones is achieved, the Licensee shall grant the Licensor common shares in BT2 International, Inc. in accordance with Schedule 3.

 

4.      LICENSOR'S OBLIGATIONS

 

	
4.1

	
The Licensor shall use reasonable endeavours to procure the services of all the personnel who made up to development team for the Technology. Such services will be available to the Licensee (1) month from the date of execution of this Agreement, at such time and place to designated by the Licensor, for the sole purpose of assisting in the orientation of such staff of the Licensor in the use and operation of the Technology, and for assisting the Licensee in raising the capital monies necessary to fabricate, manufacture and market the products from the Technology. The scope of such orientation shall be determined solely by the Licensee.

 

	
4.2  

	
The Licensee agrees and acknowledges that it shall be solely responsible for any and all the transportation and other ancillary costs incurred by its selected staff undergoing the orientation in Clause 4.1.

 

	
4.3  

	
The Licensor shall use reasonable endeavours to procure the services of all the personnel who made up the development team for the Technology. Such services will be for the purposes of assisting the Licensee with the fabrication and manufacturing of the products and to provide other technical advice and assistance in any other aspects of the Licensee. Such services will be available to the Licensee for a period of 3 years from the Implementation Date of this Agreement.

 

	
4.4

	
Upon the execution of this Agreement, the Licensee hereby confirms that the Licensor has effected full delivery of the Technology and Documentation and nothing in this Agreement shall be construed as requiring the Licensor to prepare or deliver to the Licensee the Technology, Documentation or any further information, documents or data relating thereto or engage in any technical studies or research or development or any other obligation with regards to the use and operation of any part of the Technology including but not limited to the installation thereof for and on behalf of the Licensee.

 

5.        LICENSEE'S OBLIGATIONS

 

	
5.1

	
The Licensee warrants and undertakes that during the Term or the continuance of the licence granted under this Agreement:

 

  

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5.1.1 

	
the Technology and Documentation shall be used solely by the Licensee and/or any other corporations related or controlled by the Licensee and only for the purposes contemplated by Clause 2 of this Agreement;

 

	
5.1.2  

	
it shall not take any action which may impair the Licensor's ownership and exclusive rights to the Intellectual Property Rights;

 

	
5.1.3  

	
it shall use its best efforts to raise sufficient financing for the Licensee to hire skilled and experienced staff to fabricate, manufacture and then market the products from the Technology in order to meet and exceed to the target minimums that will pay the Licensor the royalties as prescribed;

 

	
5.1.4  

	
as to each employee that is provided access to the Technology and/or the Licensed Product, the Licensee shall secure the employee's execution of a confidentiality agreement which provides that the employee may access and/or use the Technology or the Licensed Product only under terms and conditions of the confidentiality agreement which terms shall be determined by the Licensee with the approval of the Licensor, and which shall include, without limitation, express the acknowledgment by the employee of the Licensor's property and rights in the Technology and the Licensed Product and express provisions prohibiting the employee to:

 

	
5.1.4.1  

	
sub-license, sell, lease, transfer, and distribute the Technology or the Licensed Product in any manner whatsoever;

 

	
5.1.4.2  

	
make, manufacture, reproduce or replicate the Technology of the Licensed Product in any manner whatsoever;

 

	
5.1.4.3  

	
make modifications, additions, alterations, enhancements, improvements, upgrades or new versions of the Technology or Licensed Product in any manner whatsoever;

 

	
5.1..5  

	
it shall effect and maintain adequate security measures to the Licensor to safeguard the Technology from access and misuse by any unauthorized persons (including the copies thereof).

 

	
5.2

	
The Licensee shall be responsible for obtaining all necessary governmental approvals for the development, production, distribution, sale and use of any Licensed Product, at the Licensee's expense, including, where applicable and without limitation, any safety or feasibility studies. The Licensee shall have the sole responsibility of any warning labels, packaging and instructions as to the use of the Licensed Product and for the quality control for any Licensed Product.

 

	
5.3

	
To the extent required by applicable laws, it at all, the Licensee agrees that the Licensed Product will be manufactured and/or provided in such countries, subject to such consents as may be required or obtained, if at all, from the relevant regulatory and/or administration and/or governmental authorities.

 

  

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5.4

	
The Licensee shall be responsible for obtaining all third party consents and approvals required, including obtaining the right and authority to use, distribute, copy, reproduce, broadcast or otherwise disseminate works protected by copyright.

 

	
5.5

	
The Licensee shall not use the name, logo or trademarks of the Licensor or any variation thereof without the Licensor's prior written consent.

 

	
5.6

	
The Licensee agrees to register this Agreement with any foreign governmental agency which requires such registrations, and the Licensee shall pay all costs and legal fees in connection therewith. In addition, the Licensee shall assure that all foreign laws affecting thus Agreement for the sale of the Licensed Product arc satisfied.

 

	
5.7

	
The Licensee shall maintain complete and accurate records of:

 

	
5.7.1  

	
all transactions relating to the Technology and the Licensed Product;

 

	
5.7.2  

	
all copies made of the Technology and the Licensed Product;

 

	
5.7.3  

	
the number of sub-licences issued to end-users in respect of the Licensed Product; and

 

	
5.7.4  

	
the Revenue received by the Licensee.

 

	  	
which the Licensee shall produce to the licensor on request from time to time.

 

	
5.8

	
At the end of twelve (12) months from the Effective Date and thereafter on a quarterly basis, the Licensee shall submit or caused to be submitted to the Licensor accurate and complete sales reports indicating the actual sales volume for the relevant quarter and individual sale prices. All sales reports shall be accompanied by copies of sale transaction documents, including all invoices to the End-Users.

 

	
5.9

	
The Licensee agrees that the Licensor shall, at reasonable intervals, have the right to appoint an independent auditor to examine the Licensee's relevant books and records to verify the Licensee's fulfillment of its obligations under this Agreement. The cost of such audit conducted shall be borne by the Licensee.

 

	
5.10

	
The Licensee shall at all reasonable times permit the Licensor to check the use of the Technology, Licensed Product and Documentation by the Licensee and/or verify the accuracy of any and all sales reports furnished by the Licensee to the Licensor and for that purpose, the Licensor shall be entitled to enter into any of the Licensee's premises upon prior notice being given (and the Licensee hereby irrevocably licenses the Licensor, its employees and agents to enter such premises for such purpose).

 

6.      WARRANTY AND LIABILITY

 

	
6.1

	
The Licensor represents and warrants that is has full corporate right and power to enter into this Agreement.

 

  

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6.2

	
The Technology are provided on an "As-Is" basis without any warranty of any kind, express or implied. The Licensor does not make or give any representation, warranty or undertakings to the following effect:

 

	
6.2.1      

	
that the functions contained in the Technology will meet the Licensee's specific requirements or that the functions contained in the Technology or the operation of the Technology will be uninterrupted or error free or that any defects will be corrected;

 

	
6.2.2    

	
that the Technology will be effective or fit for any purpose or that it is supplied by the Licensor free from any defect or error, or

 

	
6.2.3    

	
that the use or sale of the Licensed Product or the use of the Technology and/or Documentation will not infringe any of the copyright or the Intellectual Property Rights or any other rights belonging to or alleged to belong to any third party.

 

	
6.3

	
The express terms of this Agreement are in lieu of all warranties, conditions, terms, undertakings and obligations implied by statute, common law, custom, trade usage, course of dealing or otherwise, all of which are hereby excluded to the fullest extent permitted by law.

 

	
6.4

	
The Licensor shall not be liable to the Licensee, End-User or any third party for any special, indirect, incidental, punitive, consequential, exemplary or any other damages whatsoever (including, without limitation, damages for loss of profits or revenues, business interruption, loss of data, loss of business information, other pecuniary loss and cost of legal expense) in connection with this Agreement and, without limitation, the use or performance of the Technology.

 

	
6.5

	
The total and cumulative liability of the Licensor to the Licensee for any claims or damages under this Agreement whether arising out of contract, tort or any other cause of action, shall be limited to direct damages and shall in no event exceed the sums paid by the Licensee to the Licensor under this Agreement in the last twelve (12) months prior to the event giving rise to the claim.

 

7.      INTELLECTUAL PROPERTY RIGHTS

 

	
7.1

	
The Licensee shall have the right to apply for registration of any of the Intellectual Property Rights anywhere in the world that the Licensor has not applied for a Patent, however the Licensee shall at no time challenge the validity and the Licensor's ownership of the same.

 

	
7.2

	
Interest and title to all Improvements carried out by the Licensee (the "Licensee's Improvements"), if any, shall be the subject matter of intellectual property and shall vest solely and exclusively in the Licensor.

 

  

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7.3

	
Licensee shall report in writing to the Licensor the details of any and all Improvements carried out by the Licensee and shall produce to the Licensor such written reports one (1) month after the Effective Date and thereafter on a monthly basis without demand. The Licensor shall be entitled at any time to be availed of further details of any such report furnished, including any record or document in support thereof

 

OR

 

	
7.4

	
Notwithstanding anything to the contrary, nothing in this Agreement shall be construed as according to the Licensee any right whatsoever to customized, adapt, alter or make any changes to the Technology.

 

	
7.5

	
For the avoidance of doubt, the Licensee shall not be entitled to, and the Licensor shall not be obliged to provide, any improvements, or any upgrade, development or improvement to the Technology and/or Licensed Product.

 

	
7.6

	
The Parties shall negotiate in good faith and set out in a separate written agreement their respective rights and obligations vis-a-vis commercialization and protection of the Intellectual Property Rights in the Licensee's Improvements.

 

8.      CONFIDENTIALITY

 

	
8.1

	
The parties agree that during the Term of this Agreement and after this Agreement expires or is terminated (as the case maybe), a party receiving Confidential Information of the other party will continue:

 

	
8.1.1  

	
to maintain in confidence such Confidential Information to the same, extent such party maintains its own proprietary aud confidential information;

 

	
8.1.2  

	
not to disclose such Confidential Information to any third party without prior written consent of the other party; and

 

	
8.1.3  

	
not to use such Confidential Information for any purpose except those permitted by this Agreement.

 

	
8.2

	
Provided that where the Licensor is the party receiving Confidential Information, the Licensor may disclose all or part of that Confidential Information to its associates on the basis that such associates shall also observe and be bound by the provisions of this Agreement. For the purpose of this Agreement, the associates of the Licensor shall include the Licensor's related corporations (as defined in the Companies Act).

	
8.3

	
Notwithstanding any other provisions in this Agreement and for the avoidance of doubt, the Licensor shall be entitled to disclose to any third parties the fact of this Agreement and its ownership of the Intellectual Property Rights and such disclosure may be for any purpose whatsoever.

 

  

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9.     INDEMNITY

 

	
9.1   

	
The Licensee shall indemnify and hold the Licensor harmless from and against any and all costs, losses, liabilities and expenses (including legal costs on a full indemnity basis) in connection with or arising out of:

 

	
9.1.1  

	
any breach of the Licensee's obligations in this Agreement, including without limitation, any breach of warranties herein, or any third party claim, action or allegation brought about against the Licensor related to the Licensee's use or misuse of the Technology, or the Licensed Product or Documentation or any Intellectual Property Rights, or any dispute between the Licensee and any third party; or

 

	
9.1.2  

	
any act or omission or default by the Licensee or its agents, employees and contractors pursuant to this Agreement.

 

	
9.2   

	
In addition to any other remedies available to the Licensor under this Agreement orotherwise, the Parties agree that any unauthorized use, alteration, modification, amendment, reproduction, publication, disclosure or transfer of the Technology, or the Licensed Product or Documentation or any Intellectual Property Rights, will entitle the Licensor to any and all available equitable remedies against the Licensee.

 

10.   INFRINGEMENT ACTIONS

 

	
10.1  

	
If any claim is made or threatened against the Licensee by any third party that the exercise by the Licensee of any rights granted under this Agreement by the Licensor infringes any Intellectual Property Rights of any other person, the Licensee shall fully notify the Licensor as soon as it becomes aware of the claim or threatened claim.

 

	
10.2  

	
'THe Licensor shall be given full control of any proceedings or negotiations in connection with the claim and shall be exclusively entitled to appoint and instruct legal advisors and counsel in connection with any such proceedings or negotiations and to determine the forum for any such proceedings.

 

	
10.3  

	
The Licensee shall, at its own costs, give the Licensor all reasonable assistance for the purpose of any such proceedings or negotiations.

 

	
10.4  

	
The Licensee shall not pay or accept any such claim, or compromise any such proceedings without the consent of the Licensor.

 

	
10.5  

	
The Licensor shall be entitled to require the Licensee to take such steps as the Licensor may reasonable require to mitigate or reduce any loss or damage.

 

	
10.6

	
The Licensee shall permit any action to be brought in its name if required by law.

 

  

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10.7

	
The Licensor shall have no liability to the Licensee in respect of any claim for infringement of any Intellectual Property Rights which is based on the use of or any other dealing in any of the Intellectual Property Rights otherwise than in accordance with this Agreement.

 

11.   TERM AND TERMINATION

 

	
11.1

	
This Agreement shall last for a period of sixteen (20) years from the Effective Date.

 

	
11.2  

	
[The Parties agree to review the commercial viability of the Licence granted under this Agreement at the end of two (2) years from the Effective Date and may (but shall not be obliged to) vary, by mutual agreement in writing, the terms and conditions herein. Unless varied as aforesaid, this Agreement and its terms and conditions shall continue to apply for the balance of the Term. ]

 

	
11.3

	
This Agreement may be terminated:

 

	
11.3.1  

	
without cause, by the Licensee giving not less than sixty (60) days written notice to the Licensor;

 

	
11.3.2  

	
forthwith by either party if the other commits any breach of any term of this Agreement and which (in the case of a breach capable of being remedied) is not remedied within fourteen (14) days of a written request to remedy the same. Save that a breach for non-payment or under-paymcnt of Royalty shall be remedied within seven (30) days.

 

	
11.3.3  

	
forthwith by either party if the other shall convene a meeting of its creditors or if a proposal shall be made for a scheme of arrangement or a proposal for any other composition scheme or arrangement with (or assignment for the benefit of) its creditors or if the other shall be unable to pay its debts as they fall due or if a receiver and/or manager or similar officer is appointed in respect of all or any part of the business or assets of the other party or if a petition is presented or a meeting is convened for the purpose of considering a resolution or other steps are taken for the winding up of the other party or for the placing of the other party under judicial management (otherwise than for the purpose of a solvent scheme of amalgamation or reconstruction).

 

	
11.4

	
Any termination of this Agreement howsoever occasioned shall be without prejudice to any other rights or remedies a party may be entitled to hereunder or at law and shall not affect any accrued rights or liabilities of either party nor the coming into or continuance in force of any provision hereof which is expressly or by implication intended to come into or continue in force on or after such termination.

 

	
11.5  

	
Upon termination of this Agreement by the Licensor (howsoever occasioned):

 

	
11.5.1  

	
the Licensee's rights to use the Technology, Licensed Product and Documentation and all other rights as set forth in this Agreement shall cease with immediate effect; and

 

  

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11.5.2  

	
the Licensee shall within fourteen (14) days deliver up, at its own cost and expense, to the Licensor all and any copies of the Technology, the Licensed Product and Documentation, and procure the erasure or obliteration of all storage devices or media used to store, contain, carry or record the same, and shall certify in writing to the Licensor that no copies thereof have been retained; and

 

	
11.5.3  

	
the Licensee shall not use, have used, make, have made, sell, have sold and lease, sell or otherwise apply any technology (including software, whether as source codes or otherwise) which are similar to the Technology except through a licence of the Technology to be granted by the Licensor on terms and conditions to be agreed in writing between the Licensor and the Licensee.

 

	
11.6 

	
Upon expiration of this agreement, the Licensor's rights to the Technology, Licensed Product and Documentation shall revert to the Licensee, (provided the minimum annual royalties have been paid) and no further royalties shall be payable.

 

	
11.7

	
In addition to such provisions which survive the expiration or termination of this Agreement by operation of law, the provisions of Clauses 3.6, 3.7, 5.7, 5.9, 5.10, 6, 7, 8, 9, 10, 11 and 12 shall continue in force in accordance with their terms, notwithstanding the expiration or termination of this Agreement for any reason.

 

12.   GENERAL PROVISIONS

 

	
12.1 

	
The relationship between the Licensor and Licensee is that of independent contractors. The Licensor and Licensee are not joint venturers, partners, principal and agent, master and servant, employer or employee, and have no other relationship other than independent contracting parties. The Licensor and Licensee shall have no power to bind or obligate each other in any manner, other than as is expressly set forth in this Agreement.

 

	
12.2

	
Neither this Agreement nor any rights granted hereunder may be assigned or transferred by Licensee without the prior written consent of the Licensor.

 

	
12.3

	
This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof. There shall be no amendments or modifications to this Agreement, except by a written document which is signed by both parties.

 

	
12.4

	
The headings for each article and section in this Agreement have been inserted for 12.1 convenience of reference only and are not intended to limit or expand on the meaning of (the language contained in the particular article or section.

 

  

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12.5  

	
Should anyone or more of the provisions of this Agreement be held invalid or unenforceable by a court of competent jurisdiction, it shall be considered severed from this Agreement and shall not serve to invalidate the remaining provisions thereof. The parties shall make a good faith effort to replace any invalid or unenforceable provision with a valid and enforceable one such that the objectives contemplated by them when entering this Agreement may be realized.

 

	
12.6

	
This Agreement shall be construed and enforced in accordance with the laws of Nevada.

 

	
12.7  

	
Any and all disputes arising out of or in connection with this Agreement including any question regarding its existence, validity or termination, shall be referred to arbitration in Nevada in accordance with the Rules for the time being in force which rules are deemed to be incorporated by reference into this clause. The tribunal shall consist of one (1) arbitrator to be appointed pursuant to the arbitration Rules. The arbitrator's decision shall be final and binding upon the parties and shall provide the sole and exclusive remedies of the parties. All judgement upon the award so rendered may be entered in any court having jurisdiction or application may be made to such court for a judicial acceptance of the award or orders of enforcement. The commencement of any arbitration proceedings under this Clause shall in no way affect the continual performance of the obligations related to the subject matter of such proceedings. All arbitration proceedings shall be in the English Language.

 

	
12.8  

	
Any delay in enforcing a party's rights under this Agreement or any waiver as to a particular default or other matter shall not constitute a waiver of such party's rights to the future enforcement of its rights under this Agreement, excepting only as to an express written and signed waiver as to a particular matter for a particular period of time.

 

	
12.9  

	
Any notices required by this Agreement shall be in writing, shall specifically refer to this Agreement and shall be sent by registered or certified airmail, postage prepaid, or by telefax, telex or cable, charges prepaid or by overnight courier, postage prepaid and shall be forwarded to the respective addresses set forth below unless subsequently changed by written notice to the other party:

 

For the Licensor:       David Bychkov

                                     7432 Emerald Drive

                                     Manassas, Virginia

 

 

For the Licensee:      BT2 International, Inc.

                                    Suite 2067, 1117 Desert Lane,

                                    Las Vegas NV 89102-0000

 

Notice shall be deemed delivered upon the earlier of (i) when received, (ii) three (3) days after deposit into the mail, or (iii) the date notice is sent via telefax, telex or cable, (iv) the day immediately following delivery to overnight courier (except Sunday and holidays).

 

  

15

  

 

	
12.10  

	
Save as provided in Clause 12.11 below, a person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 2001 to enforce any terms and conditions of this Agreement.

 

	
12.11  

	
If, at any time after the date of this Agreement the functions and operations of the Licensor are assigned, merged, transferred into or otherwise forms part of another organization (the "New Entity"), such that the New Entity takes over the whole or substantially the whole of the Licensor's operations, then it is agreed that this Agreement may, at the option of the Licensor, be novated to the New Entity which will than assume all of the Licensor's rights and obligations hereunder. It is further agreed that the Licensor may assign all or any part of its rights hereunder to the New Entity or to any Licensor's Affiliate at nominal consideration.

IN WITNESS WHEREOF this Agreement has been executed as of the day and year set out below.

 

For and on behalf of:

 

BT2 International, Inc.

 

	  	  	  
	
Signature:

	
/s/Joseph Batty

	  
	
Name:

	
Joseph Batty

	  
	
Designation:

	
Chief Executive Officer

	  
	
Date:

	  	  

 

In the presence of:

 

Signature:___________________________

 

Name:______________________________

 

Date:_______________________________

 

  

16

  

 

For and on behalf of:

 

David Bychkov_________________________

 

	  	  	  
	
Signature:

	
/s/David Bychkov

	  
	
Name:

	
David Bychkov

	  
	
Designation:

	
Owner, Exmocare LLC

	  
	
Date:

	
June 8, 2008

	  

 

 

	
In presence of:

	
/s/Nadia Madjid

	  
	
Name:

	
Nadia Madjid

	  
	
Date:

	
June 8, 2008

	  

 

  

17

  

 

SCHEDULE 1

Description of Technology

All products that are fabricated and manufactured using the designs from the following patents pending as described below:

Bluetooth-transmitting biosensor wristwatch to simultaneously detect and continuously monitor heart rate, heart rate variability, skin conductance, skin temperature, relative moment and other vital signs.

System to detect human emotions from the above mentioned wristwatch.

System to process physiological, emotional and hardware-related alerts through the internet and GPRS networks from the above mentioned wristwatch.

 

  

18

  

 

SCHEDULE 2

Royalty Obligations arc in accordance with the following Royalty Policy:

 

BT2 INTERNATIONAL, INC.

 

DIRECTORS' RESOLUTION

 

Business Model/Royalty Policy

Business Model

BT2 International, Inc. has developed the BT2 watch (hereinafter know as BT2) that is intended for mass production and sale to mature adults who need assistance with their daily living and could benefit from the BT2 ability to monitor their vital signs on a regular basis.

 

The Company intends to market the BT2 similar to a cellular phone. The BT2 unit will be provided to a customer at a "nominal" price, plus a monthly fee to monitor the results from the unit. Current planning provides for the BT2 to be sold at approximately $100 per unit and the monthly monitoring fee to be approximately $30 per month.

 

The BT2 will be sold by a network of distributors around the world and will be monitored by security companies, phone companies, etc. The vital sign results from the BT2 will be assessed by the computers that receive the signals and the monitor/computer will determine what type of corrective action may be needed on a patient by patient basis.

Royalty Policy

BT2 International, Inc. will split its revenue into 2 categories:

 

1. BT2 unit sales

2. Monthly monitoring revenue

 

Since the units are sold at a "nominal" price, there will be little or no profit derived from these sales. It is the monthly monitoring revenues that will produce a healthy revenue stream and significant profits. The margins on this revenue stream will be substantial.

 

The $30 per month revenue stream will be divided amongst the distributor, the monitoring company and BT2 International, Inc. Our current expectations are that BT2 International, Inc. will receive between $10 and $20 per month for each of these units sold. Final determination of how this monthly fee will be allocated will depend on the country and the company that is engaged to monitor the units.

 

  

19

  

 

BT2 International, Inc. intends to place 30% of its revenue (between $10 and S20 per month for each of these units) from this monthly monitoring fee into a royalty pool.

Payments will be made from this royalty pool to the following 3 parties:

 

1. Royalty Unit Holders

 

a.  Royalty Unit Holders are those people/corporations who have purchased a unit as an investment in BT2 International, Inc.

 

b. The Royalty Units will be considered "Non-mature" until they have been repaid for 2 times the amount of the purchase price

 

c. The Royalty Units will be considered "Mature" once they have been repaid for 2 times the amount of the purchase price

 

d. Once the Royalty Units have been repaid for 2 times the amount of the purchase price and have "Matured" the formula for determining the amount of the royalty due to these Units will change.

 

2. Exmocare LLC, et al

 

a. Exmocare LLC and David Bychkov are the inventors of BT2

 

b. As part of the creation of BT2 International, the inventors are due to be paid a  royalty.

 

3.      Shareholders of BT2 International, Inc.

 

The formula for determining the amounts of these payments are as follows:

 

●      During the period that the Royalty Units have not matured:

 

	
          1.      

	
60% of the amount placed into the royalty pool shall be paid to the Royalty Unit holders

 

	
          2.      

	
15% of the amount placed into the royalty pool shall be paid to Exmocare LLC, et al

 

	
          3.      

	
25% of the amount placed into the royalty pool shall be paid to the shareholders of BT2 International, Inc.

 

●      After the Royalty Units have matured:

 

	
          1.      

	
10% of the amount placed into the royalty pool shall be paid to the Royalty Unit holders

 

	
          2.      

	
25% of the amount placed into the royalty pool shall be paid to Exmocare LLC, et al

 

	
          3.      

	
65% of the amount placed into the royalty pool shall be paid to the shareholders of BT2 International, Inc.

 

The amount of royalties to be placed into the royalty pool shall be calculated quarterly and shall be paid within 15 days after the end of each quarter.

 

  

20

  

 

SCHEDULE 3

 

Milestones and Grant of Equity

The parlies agree that there will be certain milestones to be achieved during the development of the final product and the marketing of this BT2 product. As each of these milestones is achieved, the Licensee shall grant the Licensor common shares in BT2 International, Inc. as follows:

 

	
●      

	
Raising the first $100,000 of equity/royalty units in BT2 International, Inc. - grant of 500,000 common shares

 

	
●      

	
Raising the next $500,000 of equity/royalty units in BT2 International, Inc. - grant of 500,000 common shares

 

	
●      

	
Raising the next $1,000,000 of equity/royalty units in BT2 International, Inc. - grant of 500,000 common shares

 

	
●      

	
Raising the more than $5,000,000 of equity/royalty units in BT2 International, Inc. - grant of 2,500,000 common shares

 

	
●      

	
Meeting the $200,000 revenue mark from evaluation kit sales to prospective distributors - grant of 500,000 common shares

 

	
●      

	
Meeting the $1,000,000 revenue mark from evaluation kit sales and/or BT2 watch sales to prospective distributors - grant of 1,000,000 common shares

 

	
●      

	
BT2 International, Inc. going public or merging with a public company - grant of 5,000,000 common shares

 

	
●      

	
 
Transfer of title of ownership as per Clause 2.3 - grant of 500,000 common shares

 

 

 

 

21exmo_ex102.htm

 

Exhibit 10.2

 

COMMON STOCK PURCHASE AGREEMENT

 

Private and Confidential

 

THIS COMMON STOCK PURCHASE AGREEMENT, (the "Agreement") made as of the last executed date below (the Effective Date"), by and among BT2 International, Inc. an entity with a principle address of 1117 Desert Lane, Suite 2067, Las Vegas, NV 89102 (the "Buyer") and Belmont Partners, LLC a Virginia limited liability company with a principal address of 360 Main Street, Washington Virginia 22747 ("Seller"), and Clopton House Corporation a FormlO vehicle organized in the state of Delaware (the "Company") and Escrow, LLC ("Escrow Agent") (Buyer, Seller and Company each a "Party" and collectively the "Parties").

 

W I T N E S S E T H:

 

WHEREAS, the Seller owns a majority of the issued and outstanding capital stock of the Company; and

 

WHEREAS, the Buyer wishes to purchase a control block of stock consisting of one hundred thousand (100,000) shares representing one hundred percent of the issued and outstanding capital stock of the Company (the "Stock");

 

NOW, THEREFORE, in consideration of the mutual promises, covenants, and representations contained herein, and subject to the terms and conditions hereof, the Parties agree as follows:

 

1.             Agreement to Purchase and Sell. Seller will sell to Buyer and Buyer agrees to purchase the Stock in exchange for:

 

a)   fifty thousand U.S. dollars ($50,000.00) together with two hundred U.S. dollars representing Buyer's half of the Escrow Fees (the "Purchase Price"), to be paid to Seller according to the terms and conditions set forth in Section 3 herein; and,

 

b)   three percent (3%) of the issued and outstanding common stock of the Company according to the terms and conditions set forth in Section 3(e) herein (the "Position").

2.   Closing. On or about five (5) business days from the Effective Date (the "Closing") the

 

Parties shall perform, in order:

 

a)   Buyer shall deliver to Seller a copy of this Agreement executed by Buyer;

 

b)    Seller shall deliver a fully executed copy of this Agreement to Buyer;

 

c)    The Escrowed Funds (defined in Section 3(a) herein) shall be released to Seller;

 

 

1

 

 

d)    Seller shall cause the board of directors of the Company to execute a resolution approving the terms of this Agreement through which all current Director's of the Company resign and Buyer, or Buyer's designee, is appointed as a Director of the Company (the "Appointment");

 

e)   Buyer shall deliver to Seller a resolution of the board of directors of the Company and Irrevocable Transfer Agent Instructions to effectuate performance of Sections 1(b) and 3(e) of this Agreement (the "Board Resolution");

 

f)   Buyer shall deliver to Seller a resolution of the majority shareholders of the Company to effectuate performance of Section 1(b) and 3(e) of this Agreement (the "Shareholder Resolution");

 

g)   Seller shall deliver to Buyer the Appointment;

 

 

h)    Seller shall deliver to Buyer, to the extent reasonably available to Seller, and after the full performance of Section 3(a), true and correct copies of the Company's business, financial and corporate records including but not limited to: correspondence files, bank statements, checkbooks, minutes of shareholder and directors meetings, financial statements, shareholder listings, stock transfer records, agreements and contracts; and,

 

i)    Seller shall deliver to Buyer, as soon as practicable after the full performance of Sections 2(a) through 2(g) herein, the stock certificates) evidencing the Stock

 

3.   Payment Terms.

 

 

a)    Buyer shall place a deposit of ten thousand U.S. Dollars ($10,000.00) into an escrow account with Escrow, LLC (the "Escrow Agent") on behalf of the Seller (the 'Deposit") on the Closing date. The balance of the Purchase Price (the "Balance") shall be due and payable on the following dates (each a "Maturity Date", collectively the "Maturity Dates"):

 

(i)          Payment in the amount of five thousand U.S. dollars ($5,000.00) on or before forty five (45) days from the Effective Date;

 

(ii)         Payment in the amount of five thousand U.S. dollars ($5,000.00) on or before seventy five (75) days from the Effective Date;

 

(iii)        Payment in the amount of five thousand U.S. dollars ($5,000.00) on or before one hundred five (105) days from the Effective Date;

 

(iv)        Payment in the amount of five thousand U.S. dollars ($5,000.00) on or before one hundred thirty five (135) days from the Effective Date;

 

 

2

 

        

(v)         Payment in the amount of five thousand U.S. dollars ($5,000.00) on or before one hundred sixty five (165) days from the Effective Date;

 

(vi)        Payment in the amount of fifteen thousand U.S. dollars ($15,000.00) on or before two hundred fifty five (255) days from the Effective Date.

 

b)    Wire transfer of all payments hereunder shall be made on or before each payment's respective Maturity Date by wire transfer of immediately available funds to Seller's account as follows:

        

	Bank Name:	 	
Rappahannock National Bank

	 	 	7 Bank Road
	 	 	Washington, Virginia 22747 
	Account Name:	 	Belmont Partners, LLC
	Account Number:	 	1089129
	Routing Number:	 	
051402974

 

c)   The Purchase Price may be prepaid in whole or in part at any time, at the option of Buyer without premium or penalty.

 

d)   If at anytime during the term of this Agreement Buyer shall fail to pay a payment on or before the payment's respective Maturity Date, all outstanding principal, any accrued and unpaid interest and any other amounts due hereunder shall bear an interest rate of eighteen percent (18%) per annum from the day such interest is due hereunder through and including the final day of payment of all outstanding principal, accrued interest and other amounts due hereunder. The payments of interest hereunder shall not be required to the extent that receipt of any such interest by the Seller would be contrary to provisions of law applicable to the Seller limiting the maximum rate of interest that may be charged or collected by the Seller.

 

e)    Stock Position.

 

(i)            In consideration of the benefits provided to the Company hereby, Company shall issue and deliver to Seller, such fully paid, non-assessable restricted shares of the Company's common stock equal to a three percent (3%) post Vend-in of I.P. ownership interest in the Company (the Position"). The Position shall be based on the capital structure of the Company post Vend-in of I.P. (taking into account any and all shares issued relating to the Vend-in of I.P., initial contracts, and initial acquisition of any assets), post reverse stock split (if any), post initial financing, and after any other initial issuance of stock (including issuance to the Company's directors and/or officers). Buyer shall take all steps necessary to fully effectuate the provisions of this Section 3.

 

(ii)           Certificate evidencing the Position shall be issued and delivered to the Seller immediately following the actions anticipated by Section 3(e)(i) herein (the "Actions"), but in no case later than eleven (11) months following the Effective Date hereof. In the event that all Actions have not been completed by the eleventh month anniversary of this Agreement, Seller shall transfer to Buyer shares comprising the Position on that date and shall issue additional shares as necessary following completion of the Actions.

 

 

 

3

 

 

(iii)           The Shareholder Resolution whereby the majority of the shareholders of the Company agree to the issuance of the Position.

 

(iv)           The effective date of all Shares transferred pursuant to this Section 3 shall be the Effective Date of this Agreement and shall be memorialized on the face of the certificates evidencing such shares.

 

f)   The Parties acknowledge and agree that the Position shall be newly issued, restricted common shares of the Company. Buyer agrees for himself and on behalf of the Company to accept as valid any legal opinion of Seller's counsel regarding the removal of restrictions from the Position. In the event that, in one year from the date of the execution of this Agreement, the Position can not be sold in accordance with Rule 144 of the Securities Act of 1933, the Seller shall have demand registration rights on such Position at such time. In the event that Buyer does not provide the removal of restrictions from the shares comprising the Position in accordance with Rule 144, does not recognize any opinion of Seller's counsel regarding the removal of such restrictions, or does not register such shares, the Company and the Buyer, jointly and severally, shall pay to Seller liquidated damages in the amount of the bid price per share as of the one year anniversary of this Agreement (as reported by the national market on which the shares trade) multiplied by the number of shares in the Position. The Parties agree that the liquidated damages hereunder are not a penalty.

 

g)    In consideration of the benefits provided to the Company hereby, Company and Buyer agree to be jointly and severally liable for all amounts due hereunder and all other obligations of this Stock Purchase Agreement.

 

4.   Post Closing Items. Seller agrees to assist Buyer with filing an amendment to the Company's Articles of Incorporation to change the Company's name and decrease the authorized shares with the state of Delaware and possibly re-domiciling the Company to the State of Nevada.

 

5.   Default. The following conditions or events shall constitute events of default ( Event(s) of "Default"):

 

a)   if the Buyer shall default in the performance of or compliance with any term contained in this Agreement;

 

b)   if the Buyer shall be in breach or otherwise default in the performance of, or compliance with, any other term contained herein and such breach or default is not remedied within three (3) days of either:

 

(i)           an officer of the Buyer obtaining knowledge of such default;

 

(ii)           Buyer's Notification of such default; such notification shall be effective upon the mailing of such Notification to Buyer's last address;

 

c)   if any representation or warranty made in writing by or on behalf of the Buyer herein or in any instrument furnished in compliance with or in reference hereto or otherwise in connection with the transactions contemplated hereby shall prove to have been false or incorrect in any material respect on the date as of which made;

 

d)   if the Buyer or any Subsidiary shall be in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or interest on any indebtedness with a principal amount in excess of fifty thousand dollars ($50,000.00) (other than this Agreement) or in the performance of or compliance with my term of any evidence of any such indebtedness or of any mortgage, indenture or other agreement relating thereto the effect of which is to cause such indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment, and such default, event or condition shall continue for more than the period of grace, if any, specified therein and shall not have been waived pursuant thereto;

 

e)    if the Buyer or any Subsidiary shall:

 

(i)    be generally not paying its debts as they become due;

 

(ii)   file, or consent by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction;

 

(iii)          make an assignment for the benefit of its creditors;

 

(iv)         consent to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property;

 

(v)   be adjudicated an insolvent or be liquidated; or

 

(vi)          take corporate action for the purpose of any of the foregoing;

 

f)    if a court or governmental authority of competent jurisdiction shall enter an order appointing, without consent by the Buyer or any Subsidiary, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Buyer or any Subsidiary, or if any such petition shall be filed against the Buyer of any Subsidiary and such petition shall not be dismissed within thirty (30) days; or,

 

 

4

 

 

g)    if a final judgment which, with other outstanding final judgments against the Buyer and the Subsidiaries, exceeds fifty thousand dollars ($50,000.00) shall be entered against the Buyer or any Subsidiary and if, within sixty (60) days after entry thereof, such judgment shall not have been discharged or execution thereof stayed pending appeal, or if, within sixty (60) days after the expiration of any such stay, such judgment shall not have been discharged.

6.   Remedies on Default.

 

a)   Upon the occurrence of any Event of Default, the Seller may proceed to protect and enforce its rights by suit in equity, action at law and/or other appropriate proceeding either for specific performance of any covenant, provision or condition contained in this Agreement, or in aid of the exercise of any power granted in this Agreement, and (unless there shall have occurred an Event of Default under Section 6(d) or 6(e), in which case the unpaid balance due hereunder shall automatically become due andnasjahla) may at its sole option and with no further notice to the Buyer declare all or any part of the unpaid principal amount of the Agreement then outstanding to be forthwith due and payable, and thereupon such unpaid principal amount or part thereof, together with interest accrued thereon and all other sums, if any, payable under this Agreement shall become so due and payable without presentation, presentment, protest or further demand or notice of any kind, all of which are hereby expressly waived, and the Seller may proceed to enforce payment of such amount or part thereof in such manner as Seller may elect.

 

b) Annulment of Defaults. An Event of Default shall not be deemed to be in existence or to have occurred for any purpose of this Agreement until the expiration of any and all grace periods under this Agreement or if the Seller shall have waived such event in writing or stated in writing that such event has been cured to its reasonable satisfaction. No waiver or statement of satisfactory cure pursuant to this Section 7(b) shall extend to or affect any subsequent or other Event of Default not specifically identified in such waiver or statement of satisfactory cure or impair any other rights of the Seller herein

7.   Transfer Agent,

 

a)    Until such time as the Purchase Price secured by this Agreement is fully satisfied, and the terms and conditions of Section 3(e) herein are fully performed, Buyer agrees that Pacific Stock Transfer, LLC (the "Transfer Agent") shall act as the Company's sole transfer agency, and Transfer Agent shall have full power and authority to act on behalf of the Company in connection with the issuance, transfer, exchange and replacement of all of the Company's stock certificates.

 

 

5

 

 

8.   Collections. Should the indebtedness represented by this Agreement or any part thereof be collected at law or in equity, or in bankruptcy, receivership or any other court proceedings (whether at the trial or appellate level), or should any amount due under this Agreement be placed in the hands of attorneys for collection upon default, Buyer agrees to pay, in addition to the principal, premium and interest due and payable hereon, all costs of collection, including reasonable attorney's fees and expenses.

 

9.   Representations and Warranties of Seller. Seller hereby represents and warrants, for a period of twelve (12) months from the Effective Date, to Buyer that the statements in the following paragraphs of this Section 11 are all true and complete as of the date hereof:

 

a)   Title to Stock. Seller is the record and beneficial owner and has sole managerial and dispositive authority with respect to the Stock and has not granted any person a proxy that has not expired or been validly withdrawn. The sale and delivery of the Stock to Buyer pursuant to this Agreement will vest in Buyer the legal and valid title to the Stock, free and clear of all liens, security interests, adverse claims or other encumbrances of any character whatsoever ("Encumbrances") (other than Encumbrances created by Buyer and restrictions on resales of the Stock under applicable securities laws).

 

b)   Liabilities of the Company. Seller makes no representation as to the existence or non-existence of liabilities of the Company except as explicitly stated in this Agreement. Buyer is solely responsible for conducting its own due diligence with respect to the Company and its liabilities and for gathering enough information upon which to base an investment decision in the Stock Buyer acknowledges that:

 

(i)           Seller has made no representations with respect to the Company or its status except as explicitly stated in this Agreement; and,

 

(ii)           the Company is being sold "as is".

 

c)    Full Power and Authority. Seller represents that it has full power and authority to enter into this Agreement.

 

10.           Representations and Warranties of Buyer. Buyer hereby represents and warrants to Seller that the statements in the following paragraphs of this Section 12 are all true and complete as of the date hereof:

 

a)    Affidavit of Source of Funds. Prior to each transfer to seller or each deposit into escrow, Buyer shall execute an Affidavit of Source of Funds, to the satisfaction of Seller, which attests that the funds to be transferred are not the proceeds of nor are intended for or being transferred in the furtherance of any illegal activity or activity prohibited by federal or state laws. Such activity may include, but is not limited to: tax evasion; financial misconduct; environmental crimes; activity involving drugs and other controlled substances; counterfeiting; espionage; kidnapping; smuggling; copyright infringement; entry of goods into the United States by means of false statements; terrorism; terrorist financing or other material support of terrorists or terrorism; arms dealing; bank fraud; wire fraud; mail fraud; concealment of assets or any effort by conspiracy or otherwise to defeat, defraud or otherwise evade, any party or the Court in a bankruptcy proceeding, a receiver, a custodian, a trustee, a marshal, or any other officer of the court or government or regulatory official; bribery or any violation of the Foreign Corrupt Practices Act; trading with enemies of the United States; forgery; or fraud of any kind. Buyer further warrants that all transfers of monies will be in accordance with the Money Laundering Control Act of 1986 as amended.

 

 

6

 

 

b)   Exempt Transaction. Buyer understands that the offering and sale of the Stock is intended to be exempt from registration under the Securities Act of 1933, as amended (the "Act") and exempt from registration or qualification under any state law.

 

c)   Full Power and Authority. Buyer represents that it has full power and authority to enter into this Agreement.

 

d)   Stock. The Stock to be purchased by Buyer hereunder will be acquired for investment for Buyer's own account, not as a nominee or agent, and not with a view to the public resale or distribution thereof and Buyer has no present intention of selling, granting any participation in, or otherwise distributing the same.

 

e)   Information Concerning the Company. Buyer has conducted its own due diligence with respect to the Company and its liabilities and believes it has enough information upon which to base an investment decision in the Stock. Buyer acknowledges that Seller has made no representations with respect to the Company, its status, or the existence or non-existence of liabilities in the Company except as explicitly stated in this Agreement Buyer is taking the Company "as is" and acknowledges and assumes all liabilities of the Company.

 

f)   Investment Experience. The Buyer understands that purchase of the Stock involves substantial risk. The Buyer;

 

(i)           has experience as a purchaser in securities of companies in the development stage and acknowledges that he can bear the economic risk of Buyer's investment in the Stock; and,

 

(ii)           has such knowledge and experience in financial, tax, and business matters so as to enable Buyer to evaluate the merits and risks of an investment in the Stock, to protect Buyer's own interests in connection with the investment and to make an informed investment decision with respect thereto.

 

g)   No Oral Representations. No oral or written representations have been made other than or in addition to those stated in this Agreement. Buyer is not relying on any oral statements made by Seller, Seller's representatives, employee's or affiliates in purchasing the Stock. 

 

 

7

 

 

h)   Restricted Securities. Buyer understands that the Stock is characterized as "restricted securities" under the Act inasmuch as they were acquired from the Company in a transaction not involving a public offering.

 

i)    Opinion Necessary. Buyer acknowledges that if any transfer of the Stock is proposed to be made in reliance upon an exemption under the Act, the Company may require an opinion of counsel satisfactory to the Company that such transfer may be made pursuant to an applicable exemption under the Act. Buyer acknowledges that a restrictive legend appears on the Stock and must remain on the Stock until such time as it may be removed under the Act.

 

j) Shareholder Value, Buyer represents that Buyer intends to implement a business plan designed to return value to the shareholders of the Company.

 

k)   Compliance. Buyer shall comply with all applicable securities laws, rules and regulations regarding this Agreement, the Vend-in of I.P. and all related transactions, including but not limited to filing any forms required by the U.S. Securities and Exchange Commission.

 

11.   Covenant Not to Sue; Indemnification.

 

a)   In consideration of this Agreement and the consideration to Buyer and Company granted herein, Buyer and Company covenant and agree, for themselves and for their agents, employees, legal representatives, heirs, executors or assigns (the "Buyer Covenantors"), to refrain from making, directly or indirectly, any claim or demand, or to commence, facilitate commencement or cause to be prosecuted any action in law or equity against Seller, its members, officers, directors, agents, employees, attorneys, accountants, consultants subsidiaries, successors, affiliates and assigns (selectively the "Seller Covenantees"), on account of any damages, real or imagined, known or unknown, which Buyer Covenantors ever had, has or which may hereafter arise with respect to any and all disputes, differences, controversies or claims arising out of or relating to this Agreement and the transactions contemplated hereby, including but not limited to any question regarding the existence, content, validity or termination of this Agreement. The terms and conditions of this Section 13(a) shall be a complete defense to any action or proceeding that may be brought or instituted by Buyer Covenantors against the Seller Covenantees, and shall forever be a complete bar to the commencement or prosecution of any action or proceeding with regard to this Agreement by Buyer Covenantors against the Seller Covenantees.

 

b)   Indemnification. Buyer Covenantors shall indemnify and hold harmless the Seller Covenantees 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 Buyer's obligation to reimburse any of Seller Covenantees for such Losses and the possibility that such payments might later be held to have been improper.

 

 

8

 

 

12.   Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia, U.S.A. without giving effect to any other choice or conflict of law provision that would cause the application of the laws of any other jurisdiction other than the Commonwealth of Virginia.

 

13.   Vend-in of I.P. and Exchange of Stock. Buyer shall as soon as practicable, and in no case later than one hundred & twenty (120) days from the Closing, effect a Vend-in of I.P. (the "Vend-in of I.P."). Upon Vend-in of I.P., the Company shall succeed to and shall possess all the assets, properties, rights, privileges, powers, franchises, immunities and purposes, and be subject to all the debts, liabilities, obligations, restrictions and duties of the Sub.

 

14.   Term / Survival. The terms of this Agreement shall be effective as of the Effective Date, and continue until such time as the payment of the Purchase Price and all other amounts due hereunder are fully satisfied, however; the terms, conditions, and obligations of Sections 9, 13, 14 and 27 hereof shall survive the termination of this Agreement.

 

15.   Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties, except that Buyer may not assign or transfer any of its rights or obligations under this Agreement.

 

16   Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. A telefaxed copy of this Agreement shall be deemed an original.

 

17.   Headings. The headings used in this Agreement are for convenience of reference only and shall not be deemed to limit, characterize or in any way affect the interpretation of any provision of this Agreement.

 

18.   Costs, Expenses. Each party hereto shall bear its own costs in connection with the preparation, execution and delivery of this Agreement.

 

19.   Modifications and Waivers. No change, modification or waiver of any provision of this Agreement shall be valid or binding unless it is in writing, dated subsequent to the Effective Date of this Agreement, and signed by both the Buyer and Seller. No waiver of any breach, term, condition or remedy of this Agreement by any party shall constitute a subsequent waiver of the same or any other breach, term, condition or remedy. All remedies, either under this agreement, by law, or otherwise afforded the Buyer shall be cumulative and not alternative.

 

20.   Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision(s) shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision(s) were so excluded and shall be enforceable in accordance with its terms.

 

21.   Termination. Buyer or Seller may, upon written notice to the other party, terminate this Agreement upon their own discretion prior to any funds being released from escrow. Upon the release of any funds from escrow, this termination clause is null and void.

 

22.   Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements, understandings duties or obligations between the parties with respect to the subject matter hereof.

 

23.   Further Assurances. From and after the date of this Agreement, upon the request of the Buyer or Seller, Buyer and Seller shall execute and deliver such instruments, documents or other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.

 

24.   Notices. All notices or other communications required or permitted by this Agreement shall be in writing and shall be deemed to have been duly received:

 

a)   if given by telecopier, when transmitted and the appropriate telephonic confirmation received if transmitted on a business day and during normal business hours of the recipient, and otherwise on the next business day following transmission,

 

b)   if given by certified or registered mail, return receipt requested, postage prepaid, three business days after being deposited in the U.S. mails and

 

c)   if given by courier or other means, when received or personally delivered, and, in any such case, addressed as indicated herein, or to such other addresses as may be specified by any such Person to the other Person pursuant to notice given by such Person in accordance with the provisions of this Section 26.

25.   Insider Trading. Seller and Buyer hereby certify that they have not themselves, nor through any third parties, purchased nor caused to be purchased in the public marketplace any publicly traded shares of the Company. Seller and Buyer further certify they have not communicated the nature of the transactions contemplated by the Agreement, are not aware of any disclosure of non public information concerning said transactions, and are not a party to any insider trading of Company shares.

 

 

9

 

 

26.   Binding Arbitration. In the event of any dispute, claim, question, or disagreement arising from or relating to this agreement or the breach thereof the Parties hereto shall use their best efforts to settle the dispute, claim question, or disagreement. To this effect, they shall consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties. If they do not reach such a solution within a period of sixty (60) days, then, upon notice by either party to the other, all disputes, claims, questions, or disagreements shall be settled by arbitration administered by the American Arbitration Association in accordance;, with its Commercial Arbitration Rules including the Optional Rules for Emergency Measures of Protection, and judgment on any award rendered by the arbitrators) may be entered in any court having jurisdiction thereof

 

 

[Balance of Page Intentionally Left Blank]

[Signature Page Follows]

 

 

 

10

 

 

In Witness Whereof, the Parties hereto have executed this Agreement as of the last date written below.

 

      SELLER                      BUYER

 

 

 

11

 

 

EXHIBIT 1

THIS AGREEMENT (the "Agreement") is made the 15th day of December 2008.

Between:

 

(1)   David Bvchkov, founder and inventor of the BT2 technology, an individual whose address is at 7432 Emerald Drive, Manassas Virginia (hereinafter called "the Licensor") of the first part;

 

And

 

(2)   BT2 International, Inc., a company incorporated in Nevada whose registered office is at Suite 2067, 1117 Desert Lane, Las Vegas NV 89102-0000 (hereinafter called "the Licensee") of the second part.

 

WHEREAS:

 

A.    The Licensor and Licensee have completed and signed a Technology License Agreement on the 8th day of June 2008.

B.    The License requires certain conditions and/or events to be met by various dates.

C.   After working together on the project, the Licensor and Licensee have mutually  found these conditions and/or events and dates need to be amended.

 

D.   The License granted to the Licensee, is an exclusive, transferable and non- revocable right and licence to the Technology within the Territory, subject to the terms and conditions set forth therein.

 

E.   The Licensee has now purchased a new Delaware corporation (Clopton House  Corp. to be renamed Exmovere, Inc,) that is prepared to become a public company, and both parties wish to transfer certain rights and obligations from the License Agreement to this new Delaware corporation.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, the receipt and sufficiency are acknowledged, the parties hereby agree as follows:

All terms and conditions of the original Technology License Agreement (copy attached) shall be transferred, with the following amendments/exceptions:

 

 

12

 

 

Article 1       Definitions

       "Field of Use" shall be amended by adding: 

       " - except for use in the field of diabetes. Rights for such use in the field of diabetes shall remain with BT2 International Inc."

Article 3        Fees and Grant of Equity

This section will be deleted and replaced with the following:

 

Exmovere Inc. shall adopt a Royalty Policy similar to that described in Schedule 2 of the Technology License Agreement. However, Exmovere's policy shall require the Company to allocate 5% of Category 1 revenues (BT2 sales or other product sales) and 10% of Category 2 revenues (Monthly monitoring revenue & revenue from the sale of services).

 

Such royalty shall be placed into a Royalty Pool. Payments from this royalty pool shall be made on a quarterly basis, within 15 days after the end of the quarter, as follows:

 

20 % of the pool shall be paid to BT2 International Inc. 80% of the pool shall be paid to Exmocare LLC, et al

 

In the event a financing is obtained that requires dilution of the payments from this royalty pool, the parties shall dilute on a pro rata basis.

 

Schedule 2    Directors' Resolution - Royalty Policy

 

Deleted and replaced with the above. 

 

Schedule 3    Milestones and Grant of Equity

 

Deleted and replaced with the following:

 

Exmovere Inc. shall issue 15,003,000 common shares for the transferred license rights.

 

Such common shares shall be issued as follows:

 

BT2 International Inc.                                               2,910,000 shares

Exmocare, et al                                                          11,640,000 shares

Belmont Partners Inc                                                    453,000 shares

  

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IN WITNESS WHEREOF this Agreement has been executed as of the day and year set out below.

 

For and on behalf of: 

 

BT2 International, Inc.

 

 

  

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EXHIBIT 2

UNANIMOUS WRITTEN CONSENT 

OF THE BOARD OF DIRECTORS 

IN LIEU OF A SPECIAL MEETING

 

In lieu of a Special Meeting of the Board of Directors of Clopton House Corporation a corporation organized in the State of Delaware (the "Company"), the undersigned, being all of the Directors of the Company, take the following actions by unanimous written consent; said actions to have the same force and effect as if adopted at a meeting of the Board of Directors duly called and held:

 

WHEREAS, the Company has determined that it is in the best interests of the Company to enter into an agreement with Belmont Partners, LLC ('Ttelmont") dated January 2009 (the "Agreement") requiring the Company to provide Belmont a three percent (3%) common stock shares position in the Company (the "Position"). The Position shall be based on the capital structure of the Company after Vend-in of I.P. (taking into account any and all shares issued relating to the Vend-in of I.P, initial contracts, and initial acquisition of any assets), post reverse stock split (if any), post initial financing, and after any other initial issuance of stock (including issuance to the Company's directors and/or officers (collectively the "Vend-in of I.P.");

 

WHEREAS, the Company has entered into the Agreement with Belmont;

 

WHEREAS, the Company has received fiill and adequate consideration from Belmont for the Position;

 

WHEREAS, it is in the best interests of the Company to issue such shares of the Company's common stock to Belmont as necessary to provide Belmont the Position according to the terms of the Agreement;

 

WHEREAS, all shares transferred to Belmont hereby shall be deemed to have a valuation of par value;

 

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

 

(a)   it is in the best interests of the Company to undertake the transactions contemplated hereby; and

 

(b)   the transactions are hereby approved, ratified and confirmed; and

 

(c)   in accordance with the Shareholder Consent dated January 28/09 the Company will issue shares of the Company's common stock to Belmont necessary to provide Belmont the Position according to the terms of the Agreement; and

 

15

 

 

(d)   any transfer agent acting for or on behalf of the Company or a Surviving Company (a "Transfer Agent") shall be entitled to rely upon these resolutions to execute the issuance of the Position as aforesaid; and

 

(e)   certificate(s) evidencing the Position shall be issued and delivered to Belmont Partners, LLC immediately following the actions anticipated by the Vend-in of I.P., but in no case later than the eleventh (11th) month anniversary of the Effective Date of the Stock Purchase Agreement, in the event that all actions contemplated by the Vend-in of I.P. have not been completed by the eleventh month anniversary of the Effective Date of the Stock Purchase Agreement, Belmont Partners, LLC shall be issued shares comprising the Position on that date and shall be issued additional shares as necessary following any reverse stock split, share issuances relating to the Vend-in of I.P. and initial contracts, initial acquisition of any assets, initial financing, and after any other initial issuance of stock; and

 

(f)            the effective date of all shares transferred pursuant to this Board Resolution shall be the Effective Date of the Stock Purchase Agreement and shall be memorialized on the face of the certificates evidencing such shares. Company shall accept as valid any legal opinion of Belmont Partners, LLC's counsel regarding the removal of restrictions from all shares hereby issued, and any transfer agent acting on behalf of the Company shall be entitled to rely upon these resolutions to remove such restrictions from such shares; and

 

(g)   the Company agrees to indemnify and hold harmless the Transfer Agent from and against any and all claims, liabilities, losses, damages and expenses, including fees and expenses of counsel, accountants and other advisors (collectively, "Losses"), related thereto or arising out of or in connection therewith the issuance of the Position; and

 

(h)   the Company gives the Transfer Agent authorization to deliver said shares as specified herein to Belmont Partners, LLC at 360 Main Street, Washington, Virginia 22747 via Federal Express or Hand Dehvery; and

 

(i)    the value of all shares hereby transferred shall be par value.

 

Each Director, by signing this Unanimous Written Consent of the Board of Directors in Lieu of a Special Meeting, waives notice of the time, place and purpose of a special Board of Directors' meeting and agrees to the transaction of the business set forth in this unanimous written consent in lieu of such meeting.

 

IN WITNESS WHEREOF, we have each signed this Unanimous Written Consent of the Board of Directors in Lieu of a Special Meeting, which may be signed in one or more counterparts, each of which, when taken together, shall constitute one and the same instrument, effective as of the date executed below.

 

	 	

	 	Date: January 28, 2009

 

 

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EXHIBIT 3

 

IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

TO:    Pacific Stock Transfer

          500 East Warm Springs Road, Suite 240, Las Vegas, NV 89119

 

Re:     Clopton House Corporation

 

 

Ladies and Gentlemen:

 

Reference is made to that certain Common Stock Purchase Agreement between Clopton House Corporation (the "Company"), Belmont Partners, LLC ("Belmont") and BT2 International, Inc. (the "Buyer"), dated January, 28 2009 pursuant to which the Company shall issue to Belmont a number of shares of the common stock of the Company equal to three percent (3%) of the Company capital stock (the "Position"). This letter shall serve as the Company's irrevocable authorization and direction to Pacific Stock Transfer, and to any subsequent Transfer Agent of the Company , (collectively the "Transfer Agent") to issue shares of the common stock of the Company to Belmont as set forth below, and no subsequent direction, order, resolution or other order or request of the Company shall be effective to rescind, modify, nullify, or otherwise cancel these instructions, the attached resolutions, or the shares issued hereby.

 

Specifically, the Transfer Agent is hereby instructed to issue three percent (3%) of the Company's capital to Belmont based on the capital structure of the Company after Vend-in of I.P. (taking into account any and all shares issued relating to the Vend-in of I.P., initial contracts, and initial acquisition of any assets), post reverse stock split (if any), post initial financing, and after any other initial issuance of stock (including issuance to the Company's directors and/or officers (collectively, the "Actions").

 

The Transfer Agent shall deliver certificate(s) evidencing the shares in the Position to Belmont Partners, LLC, at the address indicated below immediately following the Actions, but in no case later than the eleventh month anniversary of the Effective Date of the Stock Purchase Agreement, In the event that all Actions have not been completed by the Effective Date of the Stock Purchase Agreement, the Transfer Agent shall transfer to Belmont certificate(s) evidencing the shares comprising the Position on the eleventh month anniversary of the Effective Date of the Stock Purchase Agreement, and shall further issue additional shares to Belmont as necessary following completion of the Actions.

 

The shares comprising the Position shall be newly issued restricted common shares of the Company, and the Effective date of all shares in the Position shall be the Effective Date of the Stock Purchase Agreement regardless of the date on which the certificate(s) evidencing such shares are issued, and such effective date shall be evidenced on the face of such certificate(s).

 

 

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The Company hereby confirms to the Transfer Agent and Belmont that the shares comprising the Position shall not be subject to any stop-transfer restrictions and shall otherwise be freely transferable on the books and records of the Company, and that if the shares comprising the Position are not registered for sale under the Securities Act of 1933, as amended, then the certificates evidencing such shares shall bear the requisite restrictive legend. The Transfer Agent is hereby instructed to accept as valid any opinion of Belmont's counsel regarding removal of any restriction from the shares comprising the Position, and upon receipt of such opinion of counsel the Transfer Agent shall promptly remove such legend.

 

The Company hereby represents, acknowledges and agrees that: (i) Belmont has relied upon the representations and covenants made by the Company hereunder as a material inducement to Belmont entering into the Common Stock Purchase Agreement; (ii) that without such representations and covenants Belmont would not enter into the Common Stock Purchase Agreement; (iii) in the event of any breach or threatened breach of any provision hereof, Belmont would be irreparably damaged and damages at law would be an inadequate remedy if these Irrevocable Transfer Agent Instructions were not specifically enforced. Therefore, in the event of a breach or threatened breach of the representations and covenants, hereunder, or a breach or threatened breach of the Transfer Agent's duties and obligations herein defined, Belmont shall be entitled in addition to all other rights and remedies, to an injunction restraining such breach, without being required to show any actual damages or to post any bond or other security, and/or to a decree of specific performance of the provisions of these Irrevocable Transfer Agent Instructions.

 

Delivery of the certificate(s) evidencing the Position shall be delivered to Belmont by Federal Express to Belmont Partners, LLC, 360 Main Street, Washington, Virginia 22747, or to such other address as specified in writing by Belmont.

 

IN WITNESS WHEREOF, the Parties have caused this agreement and letter of Irrevocable Transfer Agent Instructions to be duly executed and delivered as of the date first written above.

 

 

 

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EXHIBIT 4 

WRITTEN SHAREHOLDERS CONSENT 

IN LDZU OF A SPECIAL MEETING

In lieu of a Special Meeting of the Shareholders of Clopton House Corporation, a corporation organized in the State of Delaware (the "Company"), the undersigned, being the majority shareholder(s) of the Company, take the following actions by unanimous written consent; said actions to have the same force and effect as if adopted at a meeting of the majority shareholders duly called and held:

 

WHEREAS, the Shareholder(s) wish to approve the issuance of a three percent (3%) common stock share position issued to Belmont Partners, LLC based upon the capital structure of the Company after Vend-in of I.P. (taking into account any and all shares issued relating to the Vend-in of I.P, initial contracts, and initial acquisition of any assets), post reverse stock split (if any), post initial financing, and after any other initial issuance of stock (including issuance to the Company's directors and/or officers).

 

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

 

(a)   the transactions contemplated above are hereby approved, ratified and confirmed;

 

(b)   the Shareholder(s) approve the issuance of a three percent (3%) common stock share position to Belmont Partners, LLC based upon the capital structure of the Company after Vend-in of I.P. (taking into account any and all shares issued relating to the Vend-in of I.P., initial contracts, and initial acquisition of any assets), post reverse stock split (if any), post initial financing, and after any other initial issuance of stock (including issuance to the Company's directors and/or officers).

 

Each Shareholder, by signing this Written Consent of the Shareholders in Lieu of a Special Meeting, waives notice of the time, place and purpose of a special Majority Shareholders meeting and agrees to the transaction of the business set forth in this unanimous written consent in lieu of such meeting.

 

IN WITNESS WHEREOF, we have each signed this written consent Shareholders in Lieu of a Special Meeting, which may be signed in one or more counterparts, each of which, when taken together, shall constitute one and the same instrument, effective as of the date executed below. 

 

 

 

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EXHIBIT 5 

UNANIMOUS WRITTEN CONSENT 

OF THE BOARD OF DIRECTORS 

IN LIEU OF A SPECIAL MEETING

 

In lieu of a Special Meeting of the Board of Directors of Clopton House Corporation, a corporation organized in the State of Delaware (the "Company"), the undersigned, being all of the Directors of the Company, take the following actions by unanimous written consent; said actions to have the same force and effect as if adopted at a meeting of the Board of Directors duly called and held:

 

WHEREAS, the Company has determined that it is in the best interests of the Company to transfer one hundred percent (100%) of the Company's capital stock to BT2 International, Inc..

 

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

 

(a)   it is in the best interests of the Company to undertake the transaction contemplated hereby; and,

 

(b)   the transactions are hereby approved, ratified and cwrrfirmed; and,

 

(c)   any transfer agent acting for or on behalf of the Company or a Surviving Company (a "Transfer Agent") shall be entitled to rely upon these resolutions to execute the issuance of the shares as aforesaid; and,

 

(d)   the effective date of all Shares transferred pursuant to this Board Resolution shall be the Effective Date of the Stock Purchase Agreement and shall be memorialized on the face of the certificates evidencing such shares; and,

 

(e)   the Company agrees to indemnify and hold harmless the Transfer Agent from and against any and all claims, liabilities, losses, damages and expenses, including fees and expenses of counsel, accountants and other advisors (collectively, "Losses"), related thereto or arising out of or in connection therewith the issuance of shares; and,

 

(f)   the value of all shares hereby transferred shall be par value.

 

Each Director, by signing this Unanimous Written Consent of the Board of Directors in Lieu of a Special Meeting, waives notice of the time, place and purpose of a special Board of Directors' meeting and agrees to the transaction of the business set forth h\ this unanimous written consent in lieu of such meeting.

 

IN WITNESS WHEREOF, we have each signed this Unanimous Written Consent of the Board of Directors in Lieu of a Special Meeting, which may be signed in one or more counterparts, each of which, when taken together, shall constitute one and the same instrument, effective as of the date executed below.

 

 

 

20

 

 

EXHIBIT 6

WRITTEN SHAREHOLDERS CONSENT 

IN LIEU OF A SPECIAL MEETING

 

In lieu of a Special Meeting of the Shareholders of Clopton House Corporation, a corporation organized in the State of Delaware (the "Company"), the undersigned, being the majority shareholders) of the Company, take the following actions by unanimous written consent; said actions to have the same force and effect as if adopted at a meeting of the majority shareholders duly called and held:

 

WHEREAS, the Shareholder(s) wish to approve the transfer of one hundred percent (100%) of the Company's capital stock to BT2 International, Inc..

 

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

 

(a)   the transactions contemplated above are hereby approved, ratified and confirmed; and,

 

(b)   the Shareholder(s) approve the transfer of one hundred percent (100%) of the Company's capital stock to BT2 International, Inc..

 

Each Shareholder, by signing this Written Consent of the Shareholders in Lieu of a Special Meeting, waives notice of the time, place and purpose of a special Majority Shareholders meeting and agrees to the transaction of the business set forth in this unanimous written consent in lieu of such meeting. 

 

IN WITNESS WHEREOF, we have each signed this written Consent Shareholders in Lieu of a Special Meeting, which may be signed in one or more counterparts, each of which, when taken together, shall constitute one and the same instrument, effective as of the date executed below.

 

 

 

 

21

 

 

EXHIBIT 7

UNANIMOUS WRITTEN CONSENT

OF THE BOARD OF DHtECTORS

IN LIEU OF A SPECIAL MEETING

 

In lieu of a Special Meeting of the Board of Directors of Clopton House Corporation, a corporation organized in the State of Delaware (the "Company"), the undersigned, being all of the Directors of the Company, take the following actions by unanimous written consent; said actions to have the same force and effect as if adopted at a meeting of the Board of Directors duly called and held;

 

WHEREAS, the Board wishes to appoint David Bycbkov as the sole Director and President of the Company; and,

 

WHEREAS, the Board wishes to accept the resignation of Joseph Meuse as the sole Director and President of the Company.

 

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

 

(a)            it is in the best interests of the Company to undertake the transactions contemplated hereby; and,

 

(b)    the transactions are hereby approved, ratified and confirmed; and,

 

(c)    the Company appoints David Bychkov as a Director and the President; and,

 

(d)   the Company appoints Cheyenne Crow, Joseph Meuse and Robert Doornick as Directors of the Company; and

 

(e)   the Company appoints Delbert Blewitt as the Secretary of the Company and as a Director of the Company; and

 

(f)    the Company accepts the resignation of Joseph Meuse as President and Secretary of the Company.

 

Each Director, by signing this Unanimous Written Consent of the Board of Directors in Lieu of a Special Meeting, waives notice of the time, place and purpose of a special Board of Directors' meeting and agrees to the transaction of the business set forth in this unanimous written consent in lieu of such meeting.

 

IN WITNESS WHEREOF, we have each signed this UnanimousyWritten Consent of the Board of Directors in Lieu of a Special Meeting which may be signed in one or more counterparts, each of which, when taken together, shall constitute one and the same instrument, effective as of the date executed below.

 

 

 

22

 

 

EXHIBIT 8

WRITTEN SHAREHOLDERS CONSENT 

IN LIEU OF A SPECIAL MEETING

 

In lieu of a Special Meeting of the Shareholders of Clopton House Corporation, a corporation organized in the State of Delaware (the "Company"), the undersigned, being the majority shareholder(s) of the Company, take the following actions by unanimous written consent; said actions to have the same force and effect as if adopted at a meeting of the majority shareholders duly called and held:

 

WHEREAS, the Shareholder(s) wish to nominate of David Bychkov as the sole Director, President and Secretary of the Company; and,

 

WHEREAS, the Shareholder(s) wish to accept the resignation of Joseph Meuse as the sole Director, President and Secretary of the Company.

 

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

 

(a)   the transactions contemplated above are hereby approved, ratified and confirmed; and

 

(b)   the Shareholder(s) approve the nomination of David Bychkov as a Director and the President and,

 

(c)    the Shareholder(s) accept the resignation of Joseph Meuse as the President and Secretary of the Company; and

 

(d)   appoints Cheyenne Crow, Joseph Meuse and Robert Doornick as Directors of the Company; and

 

(e)    the Shareholder(s) approve the nomination of Delbert Blewett as a Director and as the Secretary of the Corporation.

 

Each Shareholder, by signing this Written Consent of the Shareholders in Lieu of a Special Meeting, waives notice of the time, place and purpose of a special Majority Shareholders meeting and agrees to the transaction of the business set forth in this unanimous written consent in lieu of such meeting.

 

IN WITNESS WHEREOF, we have each signed this written consent of the Shareholders in Lieu of a Special Meeting, which may be signed in one or more counterparts, each of which, when taken together, shall constitute one and the same instrument effective as of the date executed below.

 

 

 

 

 

 

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