Document:

abqq_ex101.htm

EXHIBIT 10.1

 

PATENT LICENSE AGREEMENT

 

THIS AGREEMENT (the “Agreement”) is entered into this June 1, 2017 (the “Effective Date”)

 

BETWEEN

 

GUANGZHOU SHENGSHITUHUA FILM AND TELEVISON COMPANY LIMITED, a company incorporated in China and having and address at 2nd Floor, 45 Hollywood Road, Hong Kong (the “Licensor”) 

 

AND

 

AB INTERNATIONAL GROUP CORP., a Nevada company having a registered office at 2360 Corporate Circle, STE. 400 Henderson, Nevada 89074 (the “Licensee”).

 

WHEREAS:

 

	(1)	Licensor is the owner of PRC utility model patent Registration No. ZL201520460119.7 for a Video Synthesis and Release System of Mobile Communication Equipment (hereinafter referred to as the “Patent”), as well as confidential information in the form of know-how pertaining to commercialization of the technology of the Patent.
	
 
	
 

	(2)	Licensee is desirous of obtaining, and Licensor is desirous of licensing to Licensee, the exclusive right to use the Patent, on the terms and conditions set forth herein.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

Grant of Rights

 

	1.	License of the Patent. Subject to the terms and conditions of this Agreement, Licensor hereby grants to Licensee an exclusive license under the Patent, for the term of the Patent, to make, have made, use, sell, offer for sale, import, export and distribute in China and elsewhere, worldwide, any products, including software (including, without limitation, software as a downloadable application), comprehending the invention of the Patent (collectively, such products, including software, are referred to herein as “Licensed Products”).

 

	 
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	2.	Sublicense of the Patent. Licensee may grant written, non-exclusive sublicenses under the Patent, without the right to further sublicense, to one or more third parties. Any agreement granting such a sublicense shall be in writing and shall contain terms and conditions no less restrictive than those set forth in this Agreement and shall state that the sublicense is subject to the termination of this Agreement. Licensee shall have the same responsibility for the activities of any sublicensee(s) as if the activities were directly those of Licensee. Licensee shall provide Licensor with the name, contact information and address of each sublicensee. Upon Licensor’s written request, Licensee shall provide to Licensor copies of each sublicense agreement and any amendments thereto.

 

Term

 

	3.	Subject to the provisions for termination hereinafter provided, this Agreement shall be for a term of five (5) years commencing on the Effective Date (the “Term”) and, unless earlier terminated, may be renewed, at Licensee’s written election conveyed to Licensor before the end of the Term, for a further term of five (5) years.

 

License Fee

 

	4	In consideration of the license granted herein, Licensee shall pay to Licensor the following sums:

 

	
 
	(a)	A non-refundable, up-front payment of $500,000 (USD), due and payable to Licensor by no later than thirty (30) days following the Effective Date.
	
 
	
 
	
 

	
 
	(b)	A royalty of twenty percent (20%) of the gross revenue realized by Licensee from its sale of Licensed Products worldwide, which royalty shall be payable to Licensor within thirty (30) days following the end of each calendar quarter during the Term of this Agreement.
	
 
	
 
	
 

	
 
	(c)	A royalty of twenty percent (20%) of the gross revenue realized by Licensee from its sub-licensing of others under this Agreement, which royalty shall be payable to Licensor within thirty (30) days following the end of each calendar quarter during the Term of this Agreement.

 

	 
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		Licensee shall keep true accounts of all revenues realized by it from activities authorized by this Agreement (hereafter the “Records”), and shall deliver to Licensor, within thirty (30) days after the end of each calendar quarter during the Term, a written account of its gross revenues for the calendar quarter then ended (the “Quarterly Report”), which Quarterly Reports shall specify the total gross revenues, the numbers of Licensed Products sold by Licensee and any sublicensees, and the identity of such sublicensees. Licensee shall retain the Records for five (5) years after the submission of the corresponding Quarterly Report. Upon at least thirty (30) days prior written notice to Licensee, Licensor or its designated agent may have access to the Records during Licensee’s normal business hours to conduct a review or audit, solely to the extent necessary for the purpose of verifying the accuracy of Licensee’s royalty payments and compliance with the terms of this Agreement. Any such inspection or audit shall be at Licensor’s expense, however, in the event an inspection reveals underpayments of royalties to Licensor of an aggregate of five percent (5%) or more, in any audit period, Licensee shall be required to pay the cost of the inspection and promptly pay to Licensor any underpayments so determined. Any overpayment that has been made by Licensee to Licensor during such audit period shall be promptly refunded to Licensee, or credited against its payment of future royalties to Licensor hereunder, as Licensee shall elect in writing in its sole discretion.

 

Intellectual Property Rights

 

	5.	Prior to any public disclosure thereof, Licensee shall promptly and comprehensively disclose to Licensor any and all modifications to the Patent, whether developed by Licensee or its sublicensees, which could not be practiced commercially in the absence of this Agreement (the “Improvements”) and, at Licensor’s election, shall assign to Licensor, without further consideration of any kind or amount, all intellectual property rights in such Improvements and shall, moreover, agree to execute any other documents necessary to secure such intellectual property rights and any protection therefor. Licensee shall secure from its sublicensees under this Agreement obligations comparable to those of this paragraph in order to effectuate any transfer of intellectual property rights in Improvements from Licensee to Licensor.
	
 
	
 

	6.	To the fullest extent required by the laws of any countries where Licensed Products are sold or offered for sale, Licensee will mark Licensed Products with the applicable patent number of the Patent.
	
 
	
 

	7.	The parties hereto agree to keep any information identified as confidential by the disclosing party confidential using methods at least as stringent as each party uses to protect its own confidential information. Licensee shall require its sublicensee(s) and all employees thereof to be bound by terms of confidentiality no less restrictive than those set forth in this paragraph. Licensee and its sublicensee(s) shall not use any Confidential Information to Licensor’s detriment. The confidentiality and use obligations set forth above apply to all or any part of the Confidential Information disclosed hereunder except to the extent that: (i) the receiving party can show by written record that it possessed the information prior to its receipt from the disclosing party; (ii) the information was already available to the public or became so through no fault of the receiving party; (iii) the information is subsequently disclosed to the receiving party by a third party that has the right to disclose it free of any obligations of confidentiality; or (iv) the information is required by law, rule, regulation or judicial process to be disclosed (if such requirement arises, the party requested to disclose the Confidential Information of the other party shall, prior to any such disclosure, promptly notify said party and provide assistance in any reasonable effort to obtain confidential treatment with respect to such disclosure).

 

	 
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	8.	Licensee shall, at all times during the term of this Agreement and thereafter, indemnify, defend and hold Licensor harmless against all claims, proceedings, demands, expenses and liabilities of any kind whatsoever resulting from the production, manufacture, sale, use, lease, consumption or advertisement of Licensed Products arising from any right or obligation of Licensee or its sublicensee(s) hereunder.
	
 
	
 

	9.	Licensor shall be responsible for all the costs and expenses relating to the renewal and continued maintenance of the Patent (which may be amended from time to time) and shall do all such acts and things as may be necessary to maintain the Patent during the term of this Agreement.
	
 
	
 

	10.	In the event that Licensee learns of any infringement of the Patent or any other rights of Licensor, it shall immediately notify Licensor giving such details as are available and shall, and/or procure its sub-licensees to, render all necessary assistance to Licensor in respect of any steps which Licensor may take or proceedings which the Licensor may institute in respect of such infringement. All costs of such action or proceedings shall be borne by Licensor the Licensor shall have the absolute discretion as to whether or not to take action against such infringements, as well as with respect to the handling/settlement of such infringements and any actions arising therefrom.

 

Termination and Post-Termination Issues

 

	11.	Licensor shall have the right to terminate this Agreement, effective upon the date of tendering notice in writing to Licensee, in any of the following events:

 

	
 
	(a)	If Licensee commits a breach of any of the terms or conditions of this Agreement and such default is not cured within thirty (30) days after the Licensor shall have given Licensee written notice specifying such default; or
	
 
	
 
	
 

	
 
	(b)	if Licensee becomes insolvent or enters into liquidation, either compulsorily or voluntarily (otherwise than for the purposes of amalgamation or reconstruction), or has a receiver appointed over all or any part of its assets, or in any other way takes or suffers similar action in consequence of debt or insolvency.
	
 
	
 
	
 

	
 
		This Agreement shall automatically terminate, effective immediately upon Licensee’s initiating, or threatening to initiate, any challenge to the validity and/or enforceability of the Patent.
	
 
	
 
	
 

	
 
		Any delay or omission on the part of Licensor in giving notice of any act of default or termination of this Agreement shall not be deemed to be a waiver thereof.

 

	 
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	12.	Upon termination of this Agreement, Licensee and its sublicensees shall:

 

	
 
	(a)	Immediately cease to have any right to use the Patent or to represent any connection with Licensor;
	
 
	
 
	
 

	
 
	(b)	where appropriate and upon request by Licensor, sign all documents and do all acts necessary to cancel or otherwise vacate recordals of this Agreement and all sublicenses entered into pursuant to this Agreement;
	
 
	
 
	
 

	
 
	(c)	immediately stop manufacturing, accepting orders for, selling and/or otherwise dealing in or with the Licensed Products unless otherwise directed by Licensor. Licensor shall have the option to take up all unfulfilled orders and purchase all remaining inventory and work-in-progress of the Licensed Products at cost; provided, however, that such list/information be provided to Licensor in writing within fourteen (14) days after termination. If Licensor does not exercise its option under this sub-paragraph within ten (10) days following receipt of such information, all unfulfilled orders have to be cancelled and all remaining inventory and work-in-progress of the Licensed Products be destroyed or rendered, to the satisfaction of Licensor upon visual inspection, non-infringing of the Patent.

 

Miscellaneous

 

	13.	Except as expressly provided herein, neither this Agreement nor any right or obligation hereunder may not be assigned or sublicensed by Licensee without the prior written consent of Licensor, and any purported assignment or sublicense without such consent shall be void.
	
 
	
 

	14.	Nothing in this Agreement shall constitute, or be deemed to constitute, a partnership or any agency relationship between the parties hereto, or any sublicensees, for any purpose whatsoever.
	
 
	
 

	15.	This Agreement represents the entire agreement and understanding of the parties with respect to the subject matter hereof and incorporates all prior written or oral understandings and agreements. This Agreement may be amended only upon the mutual agreement of both parties in writing.
	
 
	
 

	16.	No waiver by Licensor of any of Licensee's obligations under this Agreement shall be deemed effective unless made by Licensor in writing nor shall any waiver by Licensor in respect of any breach be deemed to constitute a waiver of or consent to any subsequent breach by Licensee of its obligations.
	
 
	
 

	17.	In the event that any provision of this Agreement should be or become void or illegal, the validity of the other contents of the agreement shall not be affected hereby. The parties agree that in such an event, they shall replace the void provision by such a valid provision which achieves the purpose aimed at by the void provision completely or as far as possible.
	
 
	
 

	18	This Agreement is binding on the parties hereto and their successors and assigns, and inures to the benefit of the parties hereto and their permitted successors and assigns.
	
 
	
 

	19.	This Agreement shall be governed by the laws of the State of Nevada.

 

	 
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IN WITNESS WHEREOF the parties have hereunto set their hands the day and year first above written.

 

	
GUANGZHOU SHENGSHITUHUA FILM 
	
	
AND TELEVISION COMPANY LIMITED
	
 

	
 
	
 
	
 

	By:	/s/ Leon Zhang 	
	
Name: 
	Leon Zhang	 
	Title: 	Chief Operating Officer	 
	 	 	 
	
AB INTERNATIONAL GROUP CORP. 
	
 

	
 
	
 
	
 

	
By: 
	
/s/ Jianli Deng 
	
 

	
Name:
	
Jianli Deng
	
 

	
Title: 
	
Chief Executive Officer
	
 

 

 

	
6Exhibit 10.7

 

Forbearance
Agreement

 

Forbearance
Agreement, dated as of May 23, 2017, by and among the Cavalry Fund I LP, Lincoln Park Capital Fund, LLC, Puritan Partners
LLC (individually, a “Holder” and collectively the “Holders”) and OncBioMune Pharmacueticals, Inc. (the
“Company”). Capitalized terms used herein shall have the meanings assigned to such terms in the 10% Senior Convertible
Notes in original principal amounts of $116,667 due July 23, 2017 (individually, the “Note” and collectively the “Notes”);

 

WHEREAS,
the Company and each of the Holders is party to a Note;

 

WHEREAS,
Section 2(b) of the Note provides that the Company is required to make a payment of one-third of the original principal amount
of the of the Note plus all accrued interest thereon as of the Payment Date on the sixth month anniversary of the Original Issue
Date, i.e., May 23, 2017.

 

WHEREAS,
the Company failed to make such payment to any of the Holders on such date.

 

WHEREAS,
Section 7(a)(i) of each of the Note provides that “any default in the payment of the principal amount of the Note”
is an Event of Default. Pursuant to Section 7(b) of each of the Notes, upon an Event of Default, the outstanding principal amount
of such Note plus accrued interest and other amounts due in respect of such Note are immediately due and payable at the Holder’s
election at the Mandatory Default Amount (i.e., 140% of the original principal amount of such Note plus accrued interest and other
amounts due and owing under such Note).

 

WHEREAS,
pursuant to Sections 7(c) and 7(d), respectively, of each of the Notes, commencing on May 23, 2017, each such Note shall accrue
interest at the Default Interest Rate (i.e., the lesser of 24% per annum and the maximum amount permitted by law) and be convertible
pursuant to the Default Conversion Price (i.e., 60% of the lowest price during the prior twenty (20) trading days of the common
stock).

 

WHEREAS,
the Company desires to have each of the Holders forbear from accelerating on each of their Notes and demanding immediate payment
in full therefore in cash.

 

NOW
THEREFORE in consideration of the execution and delivery of this Agreement and other good and valuable consideration the receipt
and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

	 	1.	The
    Company’s failure to make a payment on May 23, 2017 to each of the Holders as required by Section 2(b) of each of the
    Notes resulted in an Event of Default under each of the Notes. As of result of such Event of Default, the amount owing under
    each of the Notes as of such date is $171,952.72. 
	 	 	 
	 	2.	The
    holders hereby agree, subject to the terms hereof, not to demand an immediate cash payment of such amount solely as the result
    of the Company’s failure to satisfy its payment obligations to such Holder on Mary 23, 2017 so long as the Company complies
    with its other obligations under the Notes and the other Transaction Documents. In consideration therefore, and as currently
    set forth in the Note, the Holders shall be entitled to convert such Notes from time to time at their discretion in accordance
    with the terms of the Notes and the Notes shall not be subject to repayment unless agreed to by the Holder of such Note. 
	 	 	 
	 	3.	All
    references in the Transaction Documents shall be to the Notes as so modified hereby. 
	 	 	 
	 	4.	In
    connection with and as a condition to this Agreement, the Company shall deliver to each of the Holders (i) an amended affidavit
    of confession reflecting the increased amounts owing under such Holder’s Note, an (ii) an irrevocable transfer agent
    instructions increasing the reserve to five (5) times the number of shares of commons stock of the Company issuable on conversion
    of the Notes and exercise of the Warrants and (iii) documents the terms of which are the same as those evidencing the Notes
    satisfactory to the Holders providing that the Holders can provide at their discretion in the aggregate up to $200,000 of
    proceeds to the Company .

 

    	 

    	 

    

 

	 	5.	Except
as specifically set forth in this Amendment, there are no other amendments, modifications or waivers to the Notes or other Transaction
Documents and all of the other terms and provisions of the Notes and other Transaction Documents remain in full force and effect.
	 	 	 
	 	6.	From
    and after the date hereof, all references to the Notes in the Notes and the Transaction Documents shall be deemed to be references
    to the Notes as modified hereby.

 

THIS
AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

This
Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute
one instrument.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

	 	CAVALRY
    FUND I
	 	 	 
	 	By:	/s/
    Thomas P. Walsh
	 	Name:	Thomas
    P. Walsh
	 	Title:	General
    Partner

 

	 	LINCOLN
    PARK CAPITLA FUND LLC
	 	 	 
	 	By:
    	/s/
    Josh Scheinfeld
	 	Name:	Josh
    Scheinfeld
	 	Title:	President

 

	 	PARTNERS LLC
	 	 	 
	 	By:	/s/
    Richard Smithline
	 	Name:	Richard
    Smithline
	 	Title:
    	Managing
    Member

 

	 	ONCBIOMUNE
    PHARMACEUTICALS INC.
	 	 	                                     
	 	By:	/s/
    Andrew Kucharchuk
	 	Name:	Andrew
    Kucharchuk
	 	Title:	President

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