UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported): March 6, 2020
GBT TECHNOLOGIES INC.
(Exact name of small business issuer as specified in its charter)
Nevada | 000-54530 | 27-0603137 |
(State or other jurisdiction of incorporation or organization) | Commission File Number | (I.R.S. Employer Identification No.) |
2500 Broadway, Suite F-125, Santa Monica, CA 90404
(Address of principal executive offices) (Zip code)
Registrant’s telephone number including area code: 424-238-4589
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
/_/ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
/_/ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
/_/ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
/_/ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act: Not applicable.
Title of each class | Trading Symbol | Name of each exchange on which registered |
Not applicable. |
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Item 1.01 | Entry Into a Material Definitive Agreement |
Item 3.02 | Unregistered Sales of Equity Securities |
On March 6, 2020, GBT Technologies, Inc. (the “Company”) through its newly acquired wholly owned subsidiary, Greenwich International Holdings, a Costa Rica corporation (“Greenwich”), entered into a Joint Venture and Territorial License Agreement (the “Tokenize Agreement”) with Tokenize-It, S.A. (“Tokenize”), which is owned by a Costa Rica Trust represented by Pablo Gonzalez (“Gonzalez”). Gonzalez also represents Gonzalez Costa Rica Trust, which holds a note in the principal amount of $10,000,000 and is also a shareholder of the Company. Under the Tokenize Agreement, the parties formed GBT Tokenize Corp., a Nevada corporation (“GBT Tokenize”). The purpose of GBT Tokenize is to develop, maintain and support source codes for its proprietary technologies including advanced mobile chip technologies, tracking, radio technologies, AI core engine, electronic design automation, mesh, games, data storage, networking, IT services, business process outsourcing development services, customer service, technical support and quality assurance for business, customizable and dedicated inbound and outbound calls solutions, as well as digital communications processing for enterprises and startups (“Technology Portfolio”), throughout the State of California. Upon generating any revenue from the Technology Portfolio , the Joint Venture will earn the first right of refusal for other territories.
Tokenize shall contribute the services and resources for the development of the Technology Portfolio to GBT Tokenize. The Company shall contribute 100,000,000 shares of common stock of the Company (“GBT Shares”) to GBT Tokenize. Tokenize and the Company will each own 50% of GBT Tokenize. The Company pledged its 50% ownership in GBT Tokenize and its 100% ownership of Greenwich to Tokenize to secure its Technology Portfolio investment. The Company shall appoint two directors and Tokenize shall appoint one director of GBT Tokenize.
In addition, GBT Tokenize and Gonzalez entered into a Consulting Agreement in which Gonzalez is engaged to provide services in consideration of $33,333.33 per month payable quarterly which may be paid in shares of common stock calculated by the amount owed divided by the Company’s 10-day VWAP. Gonzalez will provide services in connection with the development of the business as well as GBT Tokenize’s capital raising efforts. The term of the Consulting Agreement is two years. The closing of the Tokenize Agreement occurred on March 9, 2020.
The offer, sale and issuance of the above securities was made to an accredited investor and the Company relied upon the exemptions contained in Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Rule 506 of Regulation D promulgated there under with regard to the sale. No advertising or general solicitation was employed in offering the securities. The offer and sales were made to an accredited investor and transfer of the common stock will be restricted by the Company in accordance with the requirements of the Securities Act of 1933, as amended.
The foregoing description of the terms of the above transactions do not purport to be complete and are qualified in their entirety by reference to the provisions of such agreements, the forms of which are filed as exhibits to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
GBT TECHNOLOGIES INC.
By:/s/ Douglas Davis
-----------------------------------------
Name: Douglas Davis
Title: Chief Executive Officer
Date: March 11, 2020
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Exhibit 10.1
JOINT VENTURE AND TERRITORIAL LICENSE AGREEMENT
by and between
TOKENIZE-IT S. A. AN AFFILIATE OF GBT TECHNOLOGIES S.A.
and
GBT TECHNOLOGIES INC. GREENWICH INTERNTATIONAL HOLDINGS (a new wholly owned Costa Rica subsidiary)
JOINT VENTURE AGREEMENT AND TERRITORIAL LICENSE AGREEMENT
This JOINT VENTURE AGREEMENT (“Agreement”) is made as of March 6, 2020, by and between TOKENIZE-IT S.A.., a Costa Rica company (“TOKENIZE”) and GBT TECHNOLOGIES INC., a Nevada corporation via its designated wholly owned subsidiary Greenwich International Holdings, a Costa Rica corporation (“GBT”). TOKENIZE and GBT are hereinafter also referred to collectively as the “Parties” and individually as a “Party.” This Agreement includes three parts and incorporates the following agreements:
1. Joint Venture and Territorial License Agreement.
2. Consulting Agreement.
3. | Certificate of good legal standing and affidavit of incumbency - Greenwich International Holdings, a Wholly owned subsidiary of GBT Technologies, Inc. AND Article of Incorporation of the Designated Joint Venture. |
RECITALS
A. TOKENIZE’s principals and affiliates are highly experienced in the fields of technology, business, sales and product management. TOKENIZE has development expertise and source codes for its proprietary Technologies: Advanced mobile chip technologies, Tracking, Radio technologies, AI Core Engine, EDA, Mesh, Games, Data Storage, Networking, IT services, BPO development services, customer service, technical support and quality assurance for business, customizable and dedicated inbound and outbound calls solutions, as well as digital communications processing for enterprises and startups (“Technology Portfolio or TP”).
B. GBT’s principals and affiliates are highly experienced in the fields of technology, specifically Wireless Mesh Networks (WMNs), Internet of Things (IoT) and Artificial Intelligence (AI), as well as public markets and financial management.
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C. The Parties desire to form a joint venture along with TERRITORIAL LICENSE AGREEMENT being granted by TOKENIZE to pursue the Business, as hereafter defined.
NOW THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:
AGREEMENT
1. Definitions
1.1. “Affiliate” means any Person, other than the Company, that: (a) is controlled by, controls, or is under common control with a Party (collectively, a “Controlled Person”); or (b) is controlled by, controls, or is under common control with any such Controlled Person, in each case for so long as such control continues.
1.2. “Annual Plan” means a business operations plan detailing the Company’s goals and procedures for technical, financial, and administrative activities for the Company’s next succeeding fiscal year, as approved each year and revised from time to time by the Board.
1.3. “Applicable Law” means, as to any Person, any statute, law, rule, regulation, directive, treaty, judgment, order, decree or injunction of any Governmental Authority that is applicable to or binding upon such Person or any of its properties.
1.4. “Articles” means the articles of incorporation of the Company substantially in the form attached hereto, as amended from time to time.
1.5. “Board” means the board of directors of the Company.
1.6. “Business” means the business of the Company as described in Section 2, as amended from time to time.
1.7. “Business Day” means a day on which commercial banks in New York, United States are generally open to conduct their regular banking business.
1.8. “Closing Date” is defined in Section 3.2(a).
1.9. “Corporations Code” means the Nevada Revised Statutes, Chapter 78 et seq. as amended and in effect from time to time.
1.10. “Company” is defined in Section 3.1.
1.11. “Company Interest” means, as to any Person, the percentage interest of the total capital stock of the Company represented by the Securities then held by such Person divided by all then outstanding Securities (on an as-converted to Common Stock basis and, to the extent warrants or options to purchase stock have vested, as exercised for Common Stock basis).
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1.12. “Confidential Information” is defined in Section 5. 1 (a).
1.13. “Common Stock” means Common Stock of the Company as authorized by the Memorandum.
1.14. “Director” means a director of the Company with the powers and duties as specified in the Corporations Code and the Articles.
1.15. “Disclosing Party” is defined in Section 5.1 (a).
1.16. “Effective Date” means the date of this Agreement.
1.17. “Establishment Date” is defined in Section 3.1.
1.18. “Governmental Authority” means any domestic or foreign government, governmental authority, court, tribunal, agency or other regulatory, administrative or judicial agency, commission or organization, and any subdivision, branch or department of any of the foregoing.
1.19. “Memorandum” means the memorandum of association of the Company substantially in the form of the attached Exhibit 1.19, as amended from time to time.
1.20. “Party” and “Parties” are defined in the opening paragraph of this Agreement.
1.21. “Person” means a natural individual, Governmental Authority, partnership, firm, corporation, or other business association.
1.22. “Receiving Party” is defined in Section 5.1(a).
1.23. “Securities” means all outstanding Common Stock, and any other equity securities of the Company or instruments exercisable for or convertible into Common Stock.
1.24. “Territory” means the world.
1.25. “Term” is defined in Section 7.1.
1.26. “Transaction Documents” means this Agreement, the Articles and the Memorandum, and their related documents.
2. Purpose of Joint Venture
2.1. The Parties hereby associate themselves in a joint venture relationship which shall have as its principal purpose: (1) developing, maintaining and supporting Technology Portfolio TP; (2) integrating Technology Portfolio TP into GTCH’s platforms and/or products to be developed; and (3) sales and licensing and other activities incidental thereto.
3. Establishment and Capitalization of the Company
3.1. Establishment. The Parties agree that the joint venture contemplated by this Agreement shall be carried out exclusively through a newly-formed corporation (the “Company”). The Company’s corporate name shall be “GBT TOKENIZE” The Parties shall use commercially reasonable efforts to cause the Establishment Date to occur on or before March 10, 2020. For the purposes of this Agreement, “Establishment Date” means the date on which the Company is established in accordance with the Corporations Code.
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3.2. Services and Duties.
TOKENIZE shall provide Company with licensed technology and expertise, as requested and mutually agreed to by Company and TOKENIZE. The License to TOKENIZE TP, been provided as an exclusive license to the TP, throughout the State of California for the invented product/service and the related platforms relating to the Technology (the "Licensed Item") and to use the know how to develop, manufacture, sell, market and distribute the Licensed Item throughout the State of California. Upon generating any revenue from this Agreement, the Joint Venture will earn the first right of refusal for other territories.
GBT shall provide Company with financing as described below in Section 3.3 (a)(ii).
3.3. Capitalization.
(a) Initial Capitalization. The Company shall, as of the Establishment Date, have authorized capital stock consisting of one class of shares designated as Common Stock with the rights set forth in the Memorandum and the Articles. The Memorandum and the Articles shall initially provide for 100,000 authorized shares of Common Stock with par value of US$0.001 per share. The Company’s initial equity shall be funded as follows:
(i) TOKENIZE Initial Subscription. Following the Establishment Date (the “Closing Date”), TOKENIZE shall subscribe for 10,000 shares of Common Stock, representing one half (50%) Company Interest. TOKENIZE’s consideration for the Company’s shares (50% of Company) shall be the services and resources to be provided by TOKENIZE as described in Section 3.2 of this Agreement entitled “Services and Duties” and otherwise required by this Agreement and by the Transaction Documents and by law.
(ii) GBT Initial Subscription. On the Closing Date, GBT shall subscribe for 10,000 shares of Common Stock, representing a one-half (50%) Company Interest GBT’s consideration for the Company’s shares (50% of Company) shall be issuance to the benefit of the JV Establishment 100,000,000 common shares of GBT and additional consideration for the Company’s shares shall be the financing provided by GBT to Company as follows:
GBT will fund Company with all funds reasonably needed for implementation of the Business purposes as described in Section 2 of this Agreement entitled “Purpose of Joint Venture.”.
(b) Certain Deliveries. On or before the Closing Date, and as a condition to the purchase and sale of the Common Stock:
(i) the Establishment Date shall have occurred; and
(ii) each Party shall have received one original of each of the fully executed Transaction Documents.
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(c) Acknowledgment of Agreement, Delivery of Share Certificates. Promptly after the Closing Date, the Parties shall cause the Company (i) to deliver to each Party its written acknowledgment of, and
(d) agreement to abide by, the terms of this Agreement, and (ii) at the request of either TOKENIZE or GBT, to promptly issue and deliver to TOKENIZE, or GBT, share certificates representing the shares of Common Stock purchased pursuant to this Section 3.2.
(d) Additional Investors. The Parties acknowledge that including additional strategic investors with expertise or strategic positions relevant to the Company’s Business may be beneficial to the Company and, accordingly, agree that TOKENIZE or GBT may, in its discretion, introduce additional parties to acquire Common Stock, in the form of newly issued shares. The selection of the strategic investors, and the terms and conditions of any such investors’ purchase of Company shares shall be documented as determined by the Company at such time.
3.4. Financial Assistance.
(a) Each Party shall at all times have the preemptive right to purchase Common Stock or other equity interests as set forth in the Articles. The preemptive rights granted pursuant to this Section 3.4(a) shall cease to be of any further force or effect upon the closing of an initial public offering of Securities.
(b) At the request of the Company, GBT shall invest additional funds in the Company. GBT shall make such additional investment in the Company; provided that the Parties shall have no obligation to invest such funds in excess of $10,000.00 for the Parties in the aggregate.
(c) From time to time, GBT may mutually agree to provide additional financial assistance to the Company, including in the form of promissory notes, and, in such event, GBT shall make such financial assistance available to the Company.
3.5. Incentive Stock Option Plan. The Parties agree that an incentive stock option plan, or other agreed to method, providing for reasonable incentive to management of Company that are directly involved in the Business would be beneficial to the Company, and agree to cooperate in good faith with a view towards establishing such a plan within ninety (90) days after the Closing Date on terms mutually agreed by the Parties.
4. Operation and Management of the Company
4.1. Operation of the Company. Each Party agrees to take all actions necessary to ensure that the Company shall be operated in accordance with the terms of this Agreement and the other Transaction Documents, including, without limitation, to vote all Securities held by it (and to cause all Securities held by its permitted transferees under Section 8 to be voted) and to cause the Directors nominated by it to vote to effect the terms hereof.
4.2. Board of Directors. The Company will be managed by the Board in accordance with the terms of this Agreement and Applicable Law. The Board shall initially consist of three (3) Directors, one of whom shall be appointed by TOKENIZE and two shall be appointed by GBT. The Chairman of the Board and President of the Company shall be appointed by the Directors appointed by GBT. Initially, Mr. Michael Murray shall serve as the Initial Director, Chairman of the Board and as the President. The Directors appointed by GBT shall have the authority to remove the Chairman of the Board and President and appoint a successor at any time.
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4.3. Removal; Reappointment of Directors. Any Director may be removed for cause in accordance with Applicable Law. In addition, each Party having the right to appoint a Director pursuant to this Section 4 shall also have the right, in its sole discretion, to remove such Director at any time, effective upon delivery of written notice to the Company, the Director to be removed and to the other Party. In the case of a vacancy in the office of a Director for any reason (including removal pursuant to the preceding sentence), the vacancy shall be filled by the Party that appointed the Director in question.
4.4. Board Meetings. The Chairman of the Board shall have the authority to convene Board meetings, including the authority to specify the time and place of such meetings. Directors may attend Board meetings in person or by any other means of attendance permitted under the Corporations Code, provided, however, that (a) the Board shall meet at least two (2) times during each semi-annual fiscal period and (b) written notice of all Board meetings shall be given not less than 15 days in advance of each meeting (which 15 day period may be shortened by written waiver of Directors or actual attendance by Directors, without objection, at a Board meeting). Board meetings shall be conducted in the English language and minutes of such meetings shall be prepared by the Company in English and distributed to each Director promptly following each meeting. Proposals or reports brought before any Board meeting for information or action (including without limitation the Company’s annual and quarterly financial statements) shall be prepared in English.
4.5. Board Quorum, Resolutions. The quorum necessary for the transaction of business at a meeting of the Board shall be two (2) Directors. Any action, determination or resolution of the Board shall require the affirmative vote of a majority of Directors present at a meeting at which a valid quorum pursuant to this Section 4.5 is present.
4.6. Other Offices. In addition to the President, senior management of the Company will consist of such other officers as are deemed to be necessary or appropriate by the Board.
4.7. Shareholders’ Meetings. Shareholders of the Company shall receive notice of each shareholders’ meeting at least fifteen (15) days before the scheduled date of such meeting. The Company shall have at least one shareholders’ meeting each calendar year. Such meeting will take place at such time and place as is determined by the Board. Meetings shall be conducted in the English language, and minutes of such meetings shall be prepared by the Company in English.
4.8. Annual Plan. The President shall prepare, and the Board shall approve, an Annual Plan with respect to each fiscal year of the Company no later than 45 days prior to the commencement of the fiscal year.
4.9. Financial Statements and Accounting Records. Financial statements for the Company, including, without limitation, a balance sheet, income statement, statement of cash flows and statement of shareholders’ equity, shall be submitted by the Company to each of the Parties (a) within 60 days after the end of the quarter of each fiscal year for such quarterly period, and (b) within 45 days after the end of each fiscal year for such year. Each of the annual financial statements shall be audited and certified by a reputable accounting firm retained by the Company, selected by GBT. All financial statements shall be prepared in accordance with generally accepted accounting principles in the United States and in reasonable detail, and shall contain such financial data as GBT may deem necessary in order to keep the Parties advised of the Company’s financial status (although such statements need not include footnotes and may be subject to year-end adjustments). The Company shall, at GBT’s request, provide GBT with such financial information as GBT may reasonably deem necessary for purposes of complying with its periodic reporting obligations under U.S. securities law and shall cooperate with GBT in connection therewith, including in the preparation of quarterly financial statements if required by GBT; provided, that Company shall bear any costs incurred in preparing or providing such information, including, without limitation, in preparing additional financial statements and reconciling the Company’s financial statements with U.S. generally accepted accounting principles for such purposes.
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5. Additional Covenants
5.1. Confidentiality.
(a) The Parties recognize that, in connection with the performance of this Agreement, each Party (in such capacity, the “Disclosing Party”) may disclose “Confidential Information” (as defined below) to the other Party (the “Receiving Party”). For purposes of this Agreement, the term “Confidential Information” means (i) proprietary information (whether owned by the Disclosing Party or a third party to whom the Disclosing Party owes a non-disclosure obligation) regarding the Disclosing Party’s business or (ii) information which is marked as confidential at the time of disclosure to the Receiving Party, or if in oral form, is identified as confidential at the time of oral disclosure and reduced in writing or other tangible (including electronic) form including a prominent confidentiality notice and delivered to the Receiving Party within 10 days of disclosure or (iii) technical information including but not limited to source code, documents, and product plans. “Confidential Information” shall not include information which: (A) was known to the Receiving Party at the time of the disclosure by the Disclosing Party; (B) has become publicly known through no wrongful act of the Receiving Party; (C) has rightfully been received by the Receiving Party from a third party without breach of this provision; or (D) has been independently developed by the Receiving Party without using any Confidential Information of the other Party. The Receiving Party agrees (x) not to use any such Confidential Information for any purpose other than in the performance of its obligations under this Agreement or any Transaction Document and (y) not to disclose any such Confidential Information, except (1) to its employees who are reasonably required to have the Confidential Information in connection herewith or with any of the other Transaction Documents, (2) to its agents, representatives, lawyers and other advisers that have a need to know such Confidential Information and (3) pursuant to, and to the extent of, a request or order by a Governmental Authority. The Receiving Party agrees to take all reasonable measures to protect the secrecy and confidentiality of, and avoid disclosure or unauthorized use of, the Disclosing Party’s Confidential Information.
(b) Each Party acknowledges and agrees that (i) its obligations under this Section 5.1 are necessary and reasonable to protect the other Party and its business, (ii) any violation of these provisions could cause irreparable injury to the other Party for which money damages would be inadequate, and (iii) as a result, the other Party shall be entitled to obtain injunctive relief against the threatened breach of the provisions of this Section 5.1 without the necessity of proving actual damages. The Parties agree that the remedies set forth in this Section 5.1 are in addition to and in no way preclude any other remedies or actions that may be available at law or under this Agreement.
5.2. Confidentiality of Agreement, Publicity. Each Party agrees that the terms and conditions of this Agreement and the Transaction Documents shall be treated as confidential information and that no reference thereto shall be made thereto without the prior written consent of the other Party (which consent shall not be unreasonably withheld) except (a) as required by Applicable Law including, without limitation, by the U.S. Securities and Exchange Commission and other applicable countries’ Governmental Authorities, (b) to its accountants, banks, financing sources, lawyers and other professional advisors, provided that such parties undertake in writing (or are otherwise bound by rules of professional conduct) to keep such information strictly confidential, (c) in connection with the enforcement of this Agreement, (d) in connection with a merger, acquisition or proposed merger or acquisition, or (e) pursuant to joint press releases prepared in good faith. The Parties will consult with each other, in advance, with regard to the terms of all proposed press releases, public announcements and other public statements with respect to the transactions contemplated hereby.
6. Warranties of the Parties
6.1. Warranties of TOKENIZE. TOKENIZE hereby represents and warrants to GBT that, as of the Effective Date and as of the Closing Date, the following statements are and shall be true and correct:
(a) Organization. TOKENIZE is a corporation duly organized and validly existing under the laws of Costa Rica, and has the corporate power and authority to enter into and perform this Agreement.
(b) Authorization. All corporate action on the part of TOKENIZE necessary for the authorization, execution and delivery of this Agreement and for the performance of all of its obligations hereunder and thereunder has been taken, and this Agreement when fully executed and delivered, shall each constitute a valid, legally binding and enforceable obligation of TOKENIZE .
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(c) Government and Other Consents. Other than any licenses, permits, certifications or authorizations which may be required in connection with the Business, as to which TOKENIZE makes no representation, no consent, authorization, license, permit, registration or approval of, or exemption or other action by, any Governmental Authority, or any other Person, is required in connection with TOKENIZE’s execution, delivery and performance of this Agreement, or if any such consent is required, TOKENIZE has satisfied the applicable requirements.
(d) Effect of Agreement. TOKENIZE’s execution, delivery and performance of this Agreement will not (i) violate the Articles of Incorporation of TOKENIZE or any provision of Applicable Law, (ii) violate any judgment, order, writ, injunction or decree of any court applicable to TOKENIZE , (iii) have any effect on the compliance of TOKENIZE with any applicable licenses, permits or authorizations which would materially and adversely affect TOKENIZE , (iv) result in the breach of, give rise to a right of termination, cancellation or acceleration of any obligation with respect to (presently or with the passage of time), or otherwise be in conflict with any term of, or affect the validity or enforceability of, any agreement or other commitment to which TOKENIZE is a party and which would materially and adversely effect TOKENIZE , or (v) result in the creation of any lien, pledge, mortgage, claim, charge or encumbrance upon any assets of TOKENIZE ; provide, however, that regulatory approval may be required in connection with conducting the Business and TOKENIZE makes no representation with respect to any such approvals.
(e) Litigation. There are no actions, suits or proceedings pending or, to TOKENIZE’s knowledge, threatened, against TOKENIZE before any Governmental authority which question TOKENIZE ’s right to enter into or perform this Agreement, or which question the validity of this Agreement or any of the other Transaction Documents.
6.2. Warranties of GBT. GBT hereby represents and warrants to TOKENIZE that, as of the Effective Date and as of the Closing Date, the following statements are and shall be true and correct:
(a) Organization. GBT is a corporation duly organized and validly existing under the laws of Nevada. GBT has the corporate power and authority to enter into and perform this Agreement.
(b) Authorization. All corporate action on the part of GBT necessary for the authorization, execution and delivery of this Agreement and for the performance of all of its obligations hereunder and thereunder has been taken, and this Agreement when fully executed and delivered, shall each constitute a valid, legally binding and enforceable obligation of GBT.
(c) Government and Other Consents. Other than any licenses, permits or authorizations which may be required in connection with the Business, as to which GBT makes no representation, no consent, authorization, license, permit, registration or approval of, or exemption or other action by, any Governmental Authority, or any other Person, is required in connection with GBT’s execution, delivery and performance of this Agreement, or if any such consent is required, GBT has satisfied any applicable requirements.
(d) Effect of Agreement. GBT’s execution, delivery and performance of this Agreement will not (i) violate the Certificate of Incorporation of GBT or any provision of Applicable Law, (ii) violate any judgment, order, writ, injunction or decree of any court applicable to GBT, (iii) have any effect on the compliance of GBT with any applicable licenses, permits or authorizations which would materially and adversely affect GBT, (iv) result in the breach of, give rise to a right of termination, cancellation or acceleration of any obligation with respect to (presently or with the passage of time), or otherwise be in conflict with, any term of, or affect the validity or enforceability of any agreement or other commitment to which GBT is a party and which would materially and adversely affect GBT, or (v) result in the creation of any lien, pledge, mortgage, claim, charge or encumbrance upon any assets of GBT; provided, however, that regulatory approvals may be required in connection with conducting the Business and GBT makes no representation with respect to any such approvals.
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(e) Litigation. Other than litigation/arbitration as disclose to TOKENIZE via Mansour Khatib, GBT’s CMO, and/or via public filing by GBT, there are no actions, suits or proceedings pending or, to GBT’s knowledge, threatened, against GBT before any Governmental Authority which question GBT ‘s right to enter into or perform this Agreement, or which question the validity of this Agreement or any of the other Transaction Documents.
7. Term and Termination
7.1. Term. This Agreement shall be effective as of the Effective Date, and shall continue in effect until terminated pursuant to Section 7.2 (the “Term”).
7.2. Termination. This Agreement may be terminated as follows:
(a) Upon the mutual written agreement of the Parties.
(b) By either Party, effective immediately upon written notice to the other Party(ies), if the other Party(ies) breach(es) any material provision of this Agreement or of any of the other Transaction Documents and such breach continues for a period of fifteen (15) days after the delivery of written notice of the default, describing the default in reasonable detail.
(c) By either Party, effective immediately upon written notice to the other Party and the Company, in the event that the other Party is dissolved, liquidated or declared bankrupt or a voluntary or involuntary bankruptcy filing is made by such Party.
7.3. Effect. Upon termination of this Agreement, the Parties shall negotiate in good faith a possible purchase by one or more Parties of all outstanding Securities held by the other Parties or the sale of the Company to a third party. In the event that, notwithstanding their good faith negotiations, the Parties are unable to agree upon such a purchase or sale within thirty (30) days of the notice of termination, the Parties shall cooperate to cause the Company to be liquidated as promptly as practical in accordance with Applicable Law. The rights and obligations of the Parties under Sections 5.1, 5.2, this Section 7.3, and Sections 7.4, 7.5, 9 and 10 shall survive any termination of this Agreement.
7.4. Return of Confidential Information. Upon the termination of this Agreement, each Party, at its own cost, shall promptly return to the Disclosing Party any and all documents and materials constituting or containing Confidential Information of the Disclosing Party which are in its possession or control, or at its option, shall destroy such documents and materials and certify such destruction in writing to the Disclosing Party.
7.5. Continuing Liability. Termination of this Agreement for any reason shall not release any Party from any liability or obligation which has already accrued as of the effective date of such termination, and shall not constitute a waiver or release of, or otherwise be deemed to prejudice or adversely affect, any rights, remedies or claims, whether for damages or otherwise, which a Party may have hereunder, at law, equity or otherwise or which may arise out of or in connection with such termination.
8. Transfer Restrictions
8.1. General Restriction. Each Party agrees to hold its Securities during the Term and, except as otherwise specifically provided in this Agreement or agreed to in writing by the other Party, not to sell, transfer, assign, hypothecate or in any way alienate any of such Party’s Securities or any right or interest therein except to an Affiliate of such Party in accordance with the Articles. In the case of any transfer permitted hereunder, the transferring Party shall deliver to the other Party (a) at least fifteen (15) days prior to such transfer, a written notice stating its intention to transfer the Securities to be transferred, the name of the transferee, whether such transferee is an Affiliate, the number of Securities to be transferred, and the price and other material terms and conditions of the transfer, and (b) except as otherwise specifically provided herein, on or prior to the effective date of the transfer and in a form reasonably acceptable to the other Party and its counsel, the transferee’s written acknowledgement of and agreement to be bound by, and to vote the transferred Securities at all times in accordance with, the terms of this Agreement.
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8.2. Legends. Each share certificate of the Company shall bear a legend, consistent with Applicable Law, providing that any transfer of the Securities evidenced by such certificate is subject to approval by the Board.
8.3. Initial Public Offering. The foregoing restrictions shall cease to be of any further force or effect upon the closing date of an initial public offering of Securities.
8.4. Board Approval. Each Party shall cause each Director that it has appointed pursuant hereto to vote to approve any transfer of Securities that complies with the terms of this Section 8.
9. Distributions. Subject to restrictions set forth in any financing document entered into by the Company, upon completion of each Company’s business venture, the Company shall distribute its available cash (net cash generated from sale of the business venture and/or its units less disbursements and appropriate reserves), to the Parties based on their relative equity interest in the Company.
10. Indemnification. The Company shall indemnify and hold harmless its directors, officers, to the fullest extent permitted by law, from and against any and all liabilities and damages (including legal expenses) imposed on or incurred by them in any way relating to or arising out of their services to the Company, but not including costs in connection with a dispute(s) between the parties to this Agreement. The Company shall purchase an insurance policy providing directors’ and officers’ liability insurance.
11. General Provisions
11.1. Governing Law, Dispute Resolution. The validity, construction and enforceability of this Agreement shall be governed by and construed in accordance with the laws of the State of Nevada. All disputes between the Parties arising out of this Agreement shall be settled by the Parties amicably through good faith discussions upon the written request of either Party. In the event that any such dispute cannot be resolved thereby within a period of thirty (30) days after such notice has been given, such dispute shall be finally settled by arbitration in Clark County, California, using the English language, and in accordance with the rules then in effect of the American Arbitration Association. The arbitrator(s) shall have the authority to grant specific performance, and to allocate between the Parties the costs of arbitration in such equitable manner as the arbitrator(s) may determine. The prevailing Party in the arbitration shall be entitled to receive reimbursement of its reasonable expenses incurred in connection therewith. Judgment upon the award so rendered may be entered in any court having jurisdiction or application may be made to such court for judicial acceptance of any award and an order of enforcement, as the case may be. Notwithstanding the foregoing, either Party shall have the right to institute a legal action in a court of proper jurisdiction for injunctive relief and/or a decree for specific performance pending final settlement by arbitration.
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11.2. Notices and Other Communications. Any and all notices, requests, demands and other communications required or otherwise contemplated to be made under this Agreement shall be in writing and in English and shall be provided by one or more of the following means and shall be deemed to have been duly given (a) if delivered personally, when received, (b) if transmitted by facsimile, on the first Business Day following receipt of a transmittal confirmation, or (d) if by international courier service, on the second business day following the date of deposit with such courier service, or such earlier delivery date as may be confirmed in writing to the sender by such courier service. All such notices, requests, demands and other communications shall be addressed as follows:
If to TOKENIZE:
TOKENIZE-IT S.A.
Attention: Pablo Gonzalez, Founder
Condominio Montaña Luna, casa 14, piedades, Santa Ana, Costa Rica
Telephone: (506) 7209-9713
If to GBT:
GBT TECHNOLOGIES INC.
Attention: Mansour Khatib, CMO
2500 Broadway, Suite F-125
Santa Monica, CA 90404 USA
Telephone: (424) 238-4589
or to such other address or facsimile number as a Party may have specified to the other Party in writing delivered in accordance with this Section 9.2.
11.3. Language. This Agreement is in the English language only, which language shall be controlling in all respects, and all versions hereof in any other language shall be for accommodation only and shall not be binding upon the Parties. All communications and notices to be made or given pursuant to this Agreement shall be in the English language.
11.4. Severability. If any provision in this Agreement shall be found or be held to be invalid or unenforceable then the meaning of said provision shall be construed, to the extent feasible, so as to render the provision enforceable, and if no feasible interpretation would save such provision, it shall be severed from the remainder of this Agreement which shall remain in full force and effect unless the severed provision is essential and material to the rights or benefits received by any Party. In such event, the Parties shall use best efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which most nearly affects the Parties’ intent in entering into this Agreement.
11.5. References, Subject Headings. Unless otherwise indicated, references to Sections and Exhibits herein are to Sections of, and Exhibits to, this Agreement. The subject headings of the Sections of this Agreement are included for the purpose of convenience of reference only, and shall not affect the construction or interpretation of any of its provisions.
11.6. Further Assurances. The Parties shall each perform such acts, execute and deliver such instruments and documents, and do all such other things as may be reasonably necessary to accomplish the transactions contemplated in this Agreement.
11.7. Expenses. Each of the Parties will bear its own costs and expenses, including, without limitation, fees and expenses of legal counsel, accountants, brokers, consultants and other representatives used or hired in connection with the negotiation and preparation of this Agreement and consummation of the transactions contemplated hereby. All such expenses incurred by the Company shall be borne by GBT to the maximum extent permitted by Applicable Law including, without limitation, expenses relating to the formation of the Company, any transfer taxes for transfer of the Company stock to the Parties, registration charges, taxes, fees and expenses relating to required governmental or regulatory approvals, notary fees and legal fees and expenses.
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11.8. No Waiver. No waiver of any term or condition of this Agreement shall be valid or binding on a Party unless the same shall have been set forth in a written document, specifically referring to this Agreement and duly signed by the waiving Party. The failure of a Party to enforce at any time any of the provisions of this Agreement, or the failure to require at any time performance by one or both of the other Parties of any of the provisions of this Agreement, shall in no way be construed to be a present or future waiver of such provisions, nor in any way affect the ability of a Party to enforce each and every such provision thereafter.
11.9. Entire Agreement; Amendments. The terms and conditions contained in this Agreement (including the Exhibits hereto) and the Transaction Documents constitute the entire agreement between the Parties and supersede all previous agreements and understandings, whether oral or written, between the Parties with respect to the subject matter hereof. No agreement or understanding amending this Agreement shall be binding upon any Party unless set forth in a written document which expressly refers to this Agreement and which is signed and delivered by duly authorized representatives of each Party.
11.10. Assignment. The Parties shall have the right to assign its rights or obligations under this Agreement except in connection with a transfer of all of such Party’s Securities in a manner permitted hereunder, under terms reasonably acceptable to the non-assigning Party and providing for the assignee to be bound by the terms hereof, and for the assigning Party to remain liable for the assignee’s performance of its obligations hereunder. This Agreement shall inure to the benefit of, and shall be binding upon, the Parties and their respective successors and permitted assigns.
11.11. No Agency. The Parties are independent contractors. Nothing contained herein or done in pursuance of this Agreement shall constitute any Party the agent of any other Party for any purpose or in any sense whatsoever.
11.12. No Beneficiaries. Nothing herein express or implied, is intended to or shall be construed to confer upon or give to any person, firm, corporation or legal entity, other than the Parties and their Affiliates who hold Securities, any interests, rights, remedies or other benefits with respect to or in connection with any agreement or provision contained herein or contemplated hereby.
11.13. Effective Date of Transaction Documents. The Transaction Documents (other than this Agreement and the Articles) shall become effective concurrently with consummation, on the Closing Date, of the transactions described in Section 3.2(a).
11.14. Counterparts. This Agreement may be executed in any number of counterparts, and each counterpart shall constitute an original instrument, but all such separate counterparts shall constitute only one and the same instrument.
Incidental and Consequential Damages. No Party will be liable to the other Party(ies) under any contract, negligence, strict liability or other theory for any indirect, incidental or consequential damages (including without limitation lost profits) with respect to a breach of this Agreement or any Transaction Document.
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11.15. IN WITNESS WHEREOF, the Parties have caused their respective duly authorized representatives to execute this Agreement as of the Effective Date.
GBT TECHNOLOGIES INC. | |
Dated: March 6, 2020 | By: /s/ Mansour Khatib |
Mansour Khatib | |
Its: Chief Marketing Officer | |
TOKENIZE LLC | |
Dated: March 6, 2020 |
By: /s/ Pablo Gonzalez |
Pablo Gonzalez | |
Its: Founder and CEO | |
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Exhibit 10.2
CONSULTING AGREEMENT
THIS AGREEMENT is made and entered into effective as of the 4 day of March 2020, by and between Pablo Gonzalez., (“Consultant”), and GBT TOKENIZE Corp., a Nevada corporation (the “Company”).
R E C I T A L S:
A. The Company is a closely-held corporation that was a formed or will be formed as a special purpose entity and as vehicle for the joint venture as stated in the Joint Venture Agreement between the TOKENIZE LLC (“TOKENIZE”) and GBT Technologies Inc. (“GBT”).
B. The Company’s principal purposes are: (1) identifying, investigating, investing in, and creating business with technology opportunities and organizations; (2) obtain additional financing and/or become publicly owned through the sale of shares to the public and/or obtain financing through private placement offering(s); and (3) activities incidental thereto (collectively “Company Purposes”).
C. Consultant is a highly experienced entrepreneur, technologist, consultant, business strategist, and has senior-level experience in privately and publicly held companies, and is well connected within the technology industry in Europe and the United States. Consultant is experienced in the financing field and familiar with the steps necessary to assist a closely-held business in becoming a publicly held company and/or obtain financing through private placement offering(s).
D. The Company is willing to engage Consultant to perform consulting services for its benefit and is willing to pay Consultant a reasonable fee for those services.
E. The parties hereto desire to enter into this Consulting Agreement upon the terms and conditions hereinafter set forth.
A G R E E M E N T S:
1. CONSULTING SERVICES. Consultant agrees to provide consulting services to the Company relating to the Company Purposes including, but not limited to, the following:
a. | Assisting the Company in developing its investment image; |
b. | Interviewing and selecting investment bankers; |
c. | Meeting with investment bankers, security analysts, portfolio managers, stockbrokers, and traders; |
d. | Assisting in determining the appropriate pricing for an initial public offering and/or private placement offering(s); |
e. | Being available for investor and due diligence meetings; |
f. | Working with attorneys and investment bankers on registration statement as needed; |
g. | Advising in connection with development of technology opportunities to be invested in by Company; |
h. | Advising in connection with all products and services business development, including but not limited to, planning, budgeting, revenue projections, marketing and sales, and contract administration; and |
i. | Advising in connection with other investments Company may pursue, including all stages involved. |
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2. CONSULTING FEE. In consideration of Consultant’s performance of the services referred to in Paragraph 1 for the term hereof, the Company agrees to pay to Consultant a consulting fee in an amount equal to $33,333.33 per month, payable in GBT shares of common stock. The number of GBT shares of common stock shall be paid on a quarterly basis at the beginning of each quarter, prorated for partial quarters, and be determined by dividing $100,000 by GBT’s 10 day VWAP.
3. TERM. The term of this Agreement shall commence on the date hereof and continue for two (2) years, ending on March 3, 2022. Notwithstanding anything else to the contrary herein, since this Consulting Agreement is part of the Joint Venture Agreement; a termination of this Consulting Agreement shall only be done in compliance and conformity with the Joint Venture Agreement, Company Article of Incorporation and Bylaws, Company policy, and the Transaction Documents.
4. CONFIDENTIAL INFORMATION. It is expressly understood and agreed that all trade secrets and proprietary know-how of the Company are confidential and are the sole property of the Company. Consultant shall have no right to possession of such trade secrets and know-how other than in the discharge of its duties hereunder.
5. LIABILITY OF CONSULTANT. In the course of carrying out its duties as obligated under this Consulting Agreement, Consultant shall be liable only for willful misconduct, but in all other respects, shall not be liable to the Company for any mistake of judgment. If the Consultant becomes liable or responsible for the payment of any debt, encumbrance, liability or judgment arising out of or resulting from Consultant’s performance under this Agreement, and the payment of such debt, encumbrance, liability or a judgment did not arise through the willful misconduct of Consultant, the Company shall indemnify Consultant for any and all such expense.
6. INDEPENDENT CONTRACTOR STATUS. Consultant is providing services to the Company only for the purposes and to the extent set forth in this Consulting Agreement and the Joint Venture Agreement, and Consultant’s relation to the Company shall at all times during the term of this Consulting Agreement be that of an independent contractor. In connection with the Consultant Agreement and the Consulting Fee, Consultant shall not be considered as having employee status or as being entitled to participate in any plans, arrangements, or distributions by the Company pertaining to or in connection with any pension plan, stock plan, bonus plan, profit sharing plan or similar plan or benefit for the Company’s employees.
7. COST AND EXPENSES. The Company shall reimburse Consultant for reasonable out-of-pocket costs and expenses incurred by Consultant in connection with the performance of its duties as described herein.
8. NOTICES. Any notices, statements, payments or other communications by the parties hereto to the other party shall be directed to the address set forth below:
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If to the Company: GBT TOKENIZE Corp.
Attention:
2500 Broadway, Suite F-125
Santa Monica, CA 90404 USA
Telephone: (424) 238-4589
If to Consultant: Attention: Pablo Gonzalez, Founder
Condominio Montaña Luna, casa 14, piedades, Santa Ana, Costa Rica
Telephone: (506) 7209-9713
9. ASSIGNMENTS. Neither party shall assign this Agreement or any portion of the rights without the prior written consent of the other party hereto.
10. BINDING EFFECT. This Agreement, and its terms and provisions, shall be binding upon, and inure to, the benefit of the parties, their successors, administrators, executors and assigns, except as otherwise provided herein.
11. COMPLETE AGREEMENT. This Agreement sets forth all of the covenants, agreements, conditions and understandings between the parties hereto, and except for the Joint Venture Agreement between TOKENIZE and GBT and the terms thereunder, there are no covenants, promises, agreements, conditions or understandings, either oral or written, between them other than as set forth herein, and those agreements which are executed contemporaneously herewith. This Agreement cannot be modified or changed except by a written instrument executed by all the parties hereto.
12. CONSTRUCTION. This Agreement shall be construed in accordance with and be governed by the laws of the State of California.
IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.
“COMPANY”:
GBT TOKENIZE INC.
Dated:
March 6, 2020 By/s/
Mansour Khatib
Mansour Khatib
Its: CMO
“CONSULTANT”
Dated: March 6, 2020 By /s/ Pablo Gonzalez
Pablo Gonzalez
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Exhibit 10.3
STOCK PLEDGE AGREEMENT
THIS STOCK PLEDGE AGREEMENT (“Agreement”), executed March 6th, 2020 and by GBT Technologies Inc., a Nevada corporation with a business address located at 2500 Broadway, Suite F-125, Santa Monica, CA 90404 (the "Pledgor") in favor of Tokenize-It, S.A. A Costa Rica Corporation with a business address located at Condominio Montaña Luna, casa 14, piedades, Santa Ana, Costa Rica (“TOKENIZE”).
RECITALS
TOKENIZE is an accredited investor, doing business in Costa Rica, California and Nevada, investing in technologies and Other investments.
A. VOID
B. In light of entering Joint Venture and License Agreement, Pledgor presently needs technology tools to be provided by TOKENIZE.
C. TOKENIZE has funded said technology without any investment from Pledgor, other than contribute its own shares which has no monetary value as being issued to affiliate and being restricted by law.
D. Pledgor, in order to allow TOKENIZE, sustain a level of regulatory risk its business, as well as security to support its investment in its technology being licensed to Pledgor joint venture vehicle GBT TOKENIZE Corp, has agreed to pledge shares of GBT TOKENIZE Corp, issued to Pledgor base on the Joint Venture and License Agreement, represent 50% of all shares outstanding of GBT TOKENIZE Corp and 100% of all shares outstanding of Greenwich International Holdings, a Costa Rica corporation (“GBT TOKENIZE GREENWICH shares”).
E. TOKENIZE, in consideration of Pledgor providing such pledge, has agreed to keep technology platform available until payments per the Consulting agreement (which is part of the Joint Venture and License Agreement) been paid for three consecutive years.
NOW, THEREFORE, in consideration of the foregoing and the terms and conditions hereafter set forth, Pledgor agrees as follows:
1. Pledge. In accordance with the term of this Agreement, Pledgor hereby grants to TOKENIZE a security interest in, and hereby assigns to TOKENIZE all right, title and interest of Pledgor in and to shares of common stock of GBT TOKENIZE GREENWICH shares, including without limitation, all evidence of the same. (hereafter referred to as “Collateral”).
2. Representations and Warranties. Pledgor represents and warrants to TOKENIZE that:
(a) | Pledgor has, and has duly exercised, all requisite power and authority to enter into this Agreement, to pledge its interest in the Collateral and to carry out the transactions contemplated by this Agreement. |
(b) | Pledgor is the legal and beneficial owner of all of the Collateral. |
(c) | All of the Collateral is free of any pledge, mortgage, hypothecation, lien, charge, encumbrance or security interest or the proceeds thereof, except for that granted hereunder. |
(d) | The execution and delivery of this Agreement, and the performance of its terms, will not violate or constitute a default under the terms of any other agreement, indenture or other instrument, license, judgment, decree, order, law, statute, code, ordinance or other governmental rule or regulation, applicable to Pledgor or any of Pledgor’s property or the consent to this Agreement and the performance of its terms has been obtained from all necessary third parties. |
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(e) | The execution and delivery of this Agreement, and the performance of its terms, will not result in any violation of any provision of the articles of incorporation, bylaws and shareholder agreements, if any, pertaining to Pledgor or Borrower or the consent to this Agreement and the performance of its terms has been obtained from all necessary third parties. |
3. Covenants. Pledgor agrees upon the receipt by TOKENIZE of written pay-off demand notice from TOKENIZE, TOKENIZE is permitted to sell the Collateral or any portion of the Collateral only in an amount to ensure that the Company can satisfy the required Demand. Pledgor must consent to such sale of the Collateral, which may not be unreasonably withheld. In addition, TOKENIZE will provide Pledgor with further notice once sales are finalized. All sales of the Collateral will be made in accordance with the Securities Act of 1933, as amended. Upon expiration of this Agreement, the remaining Collateral shall be returned to the Pledgor free and clear of all liens.
4. Fees. Not applicable as there are none.
5. Termination. The term of this Agreement shall be three (3) years from the date hereof. Latinex in its sole discretion may terminate the Agreement at anytime, provided, however, upon termination, TOKENIZE is required to return the Collateral immediately upon such termination.
6. Law and Jurisdiction. The laws of the State of California apply to this Agreement, without deference to the principles of conflicts of law. Both jurisdiction and venue for any litigation pursuant to this Agreement shall be proper in the courts of the county of Los Angeles, State of California.
7. Assignment. This Agreement may not be assigned by either party without the prior written consent of the non-assigning party.
8. Notices. Any notice, consent or authorization required or permitted to be given pursuant to this Agreement shall be in writing and sent to the party for or to whom intended, at the address of such party set forth above, by registered or certified mail (if available), postage paid, or at such other address as either party shall designate by notice given to the other in the manner provided herein.
[signature page to follow]
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IN WITNESS WHEREOF, the undersigned has caused this Stock Pledge Agreement to be duly executed as of the day and year first above written.
PLEDGOR
GBT Technologies Inc.
By:/s/ Mansour Khatib
Name: Mansour Khatib
Title: CMO, Director & Secretary
TOKENIZE-IT S.A.
TO
By:/s/ Pablo Gonzalez
Name: Pablo Gonzalez
Title: Manager
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