EX-16.1 2 v027776_ex16-1.htm Unassociated Document

 
SETTLEMENT AGREEMENT
 
This Settlement Agreement of Debt to Stock conversion (the “Agreement”) is made and entered effective as of the 12, day of September 2005, by and between , B2 Digital, a Delaware corporation (“Maker”) with corporate office at 9171 Wilshire Blvd, Suite B, Garden Level, Beverly Hills, California 90210 and Coast Communications, Inc., a Nevada corporation (“Payee”) with corporate offices at 1030 S. Mesa Drive, Mesa, Arizona 85210.
 
RECITALS
 
A.  On March 31, 2003 in Mesa, Maricopa County, Arizona Telecommunications Products, Inc. (B2 Digital) signed a Promissory Note with promises to pay Coast Communications, Inc. in the amount of ($400,000.00) with interest of 7.5% until the due date. The note was to be paid in full on or before March 31, 2004. Total due at this time would be ($472,500.00).
 
B.  March 31, 2004 having past this note is now in Default.
 
C.  On March 31, 2003 in Mesa, Maricopa County, Arizona Telecommunications Products, Inc. (B2 Digital) signed a Promissory Note with promises to pay Coast Communications, Inc. in the amount of $1,000.000.00) with interest of 7.5% until the due date. This note was to be paid in full on or before March 31, 2005. Total due at this time would be ($1,181.250.00)
 
D.  March 31, 2005 having past this note is now in Default.
 
E.  July 2004 Telecommunications Products, Inc. a Delaware Corporation filed to change the corporate name to B2 Digital, Inc.
 
NOW, THEREFORE, in consideration of the foregoing recitals, and the mutual covenants, obligations, and mutual general release contained herein, the Parties hereby agree as follows:
 
AGREEMENT
 
1. The Parties agree and acknowledge that the foregoing Recitals are true and correct.
 
2. Liability. The Parties acknowledge that by entering into this Agreement, none of the Parties are admitting to liability for any claim, including without limitation, those claims that have been or could have been asserted.
 
3. Obligations of the Parties and Terms of Settlement. The Parties agreement that Coast Communications, Inc. a Nevada Corporation does hold receivable notes for $1.4 million dollars from B2 Digital a Delaware Corporation and B2 Digital does agree to convert $450,000.00 dollars of said notes into shares of B2 Digital’s common stock at 50% discount to market price to be based upon the last five days average trading price.
 
4. Additional Notes. It is understood by both parties that the additional notes totaling $1,203,750.00 plus accrued interest of 7.5% until paid in full shall remain in place and continue to be secured by the notes that are now in place and attached assets. At Coast option the additional notes maybe converted into shares of B2 Digital’s common stock at the same 50% final pricing as arrived at under 3 above.  
 
5.  Attorney’s Fees and Costs. The Parties shall bear their own attorneys’ fees and costs.
 
6. General Provisions.
 
 
 

 
 
a. Successors and Assigns. The Parties understand and expressly agree that this Agreement is binding upon them, as well as their heirs, legal representatives, personal representatives, successors, assigns, agents, and other representatives.

b. Governing Law. This Agreement is entered into in Arizona, and shall be interpreted, enforced, and governed by Arizona law.

c. Severability. If a court of competent jurisdiction declares any of the Agreement’s provisions unenforceable, the remaining provisions shall be enforced as though the Agreement does not contain the unenforceable provisions.

 
e. Warranty and Indemnification. The Parties represent and warrant that as of the date of this Agreement they have not voluntarily or involuntarily transferred any of the Released Matters to any other person or entity, and that no interest created by operation of law exists in any of the Released Matters.

f. Entire Agreement. This Agreement sets forth the Parties’ complete and final agreement with respect to the resolution of the matters set forth herein, and amends any and all prior agreements referenced herein or understandings between the Parties pertaining to the matters addressed in this Agreement. This Agreement may not be altered or amended except by a written instrument executed by all Parties who are affected by such alteration or amendment. This Agreement shall not be effective unless and until executed by all Parties.

g. Counterparts. This Agreement may be executed by the Parties in separate counterparts. Upon execution of a counterpart by each of the Parties, such counterparts shall be deemed one and the same Agreement. Facsimile signatures shall be accepted as original signature as long as they are certified below by the respective Parties’ counsel.

h. Construction. The Parties and signatories hereto, and each of them, agree and acknowledge that the terms and language of this Agreement have been jointly drafted by all of the Parties.

 
IN WITNESS WHEREOF, the Parties have executed original counterparts of this Agreement effective as of the day and year first written above.
 

 
 

 
 
 
    B2 Digital
     
    By:  Robert Russell
    Its: Chairman of the Board - President 
     
     
   
Robert Russell
     
     
   
Marcia A. Pearlstein - Director
     
     
   
Igor Loginov - Director
     
    COAST COMMUNICATIONS, INC.
     
    By:  Ernest G. McKay
    Its: President
     
   
Ernest G. McKay