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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 3, 2023

 

 

TREND INNOVATIONS HOLDING INC.

(Exact name of registrant as specified in its charter)

 

 

     
     

Nevada

(State or other jurisdiction of incorporation or organization)

 

333-225433

(Commission File Number)

 

 

38-4053064

(I.R.S. Employer Identification Number)

 

 

 

44A Gedimino avenue

Vilnius, 01110, Lithuania

T: +1540-4950016

Direct: +370.6263.5884

 

(Address and telephone number of principal executive offices)

 

 

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):

 

 

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: 

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 (X)

 

 

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        

 

 

 

Item 1.01Entry Into a Material Definitive Agreement
Item 3.02Unregistered Sales of Equity Securities
Item 5.01 Change in Control of Registrant

 

Acquiring Avant! AI Assets

 

On April 3, 2023, Trend Innovation Holdings, Inc. (the “Company”), entered into an Asset Purchase Agreement (“APA”) along with GBT Tokenize Corp. (“Seller”), which Seller developed and owns a proprietary system and method named Avant-Ai, which is a text-generation, deep learning self-training model that is working based on an innovative, unique concept which learns on its own and constantly enhances its information database with the advantage of unsupervised learning capabilities (the “System”).

At closing, in consideration of acquiring the System, the Company shall issue to the Seller 26,000,000 common shares of the Company (the “Shares”). The Shares will be restricted per Rule 144 as promulgated under the Securities Act of 1933, as amended (the “1933 Act”) and Seller agreed to a lock-up period of nine (9) months following closing (the “Lock Up Term”). In the event the Company is unable to up-list to Nasdaq either through a business combination or otherwise prior to the expiration of the Lock Up Term, the Seller may request within three (3) business days of the expiration of the Lock-Up Term, that all transactions contemplated by the APA be unwound.

 

In addition, the Company and Seller entered into a license agreement regarding the System, granting the Seller a perpetual, irrevocable, non-exclusive, non-transferable license for using the System enabling everyday users to have the experience of trading nft/crypto and become famous according to their artwork creations, without actually performing an actual trade while monetizing on their artwork creations.

 

Acquiring Instant Fame Assets

 

On April 3, 2023, the Company, entered into an Asset Purchase Agreement (“Treasure APA”) with Treasure Drive Ltd. (“TD”) pursuant to which the Company agreed to acquire a technology portfolio including certain source codes and pending patent applications which have applications in a variety of areas including creating systems and methods of facilitating digital rating and secured sales of digital works as well as core virtual reality platforms known as digital auction systems, rating and secure sales via open bid auctions (“Instant Fame Assets”).

 

At closing, in consideration of the Instant Fame Assets, the Company shall issue to TD 5,000 convertible preferred shares of the Company with a stated valued at $5,000 per share each (the “Preferred Shares”). The Preferred Shares may be converted at the option of TD into the Company shares of common stock at a conversion price equal to a 5% discount to the weighted average closing price during the five (5) days prior of such conversion, and will include a 4.99% beneficial ownership limitation. The Preferred Shares will have no voting rights and will be entitled to a payment equal to the stated value of the Preferred Shares in the event of the Company liquidation only. In the event the Company is unable to up-list to Nasdaq either through a business combination or otherwise prior to the expiration of the Lock Up Term, TD may request within three (3) business days of the expiration of the Lock-Up Term, that all transactions contemplated by the Treasure APA be unwound.

 

In addition, the Company and Elentina Group, LLC (“Elentina”) entered into a Service Agreements in which Elentina, was engaged to provide certain capital markets services for a flat quarterly fee of $75,000 paid in shares of common stock (the “Eletina Common Stock”). The Elentina Common Stock to be issued within five days of the first day of quarter during the term (ie January 1, April 1, July 1 and October 1). The Eletina Common Stock shall be fully earned upon issuance. The number of shares of Eletina Common Stock to be issued will be determined by dividing the quarterly fee of $75,000 by the Company’s ten (10) day VWAP, which shall at no point be less than $0.10 per share.

 

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.

 

Exhibit Number Description
10.1

Asset Purchase Agreement by and between Trend Innovation Holdings, Inc and GBT Technologies, Inc and GBT Tokenize Corp. dated April 3, 2023

 

10.2

Technology License Agreement by and between Trend Innovation Holdings, Inc., GBT Technologies, Inc. and GBT Tokenize Corp. c

 

10.3 Asset Purchase Agreement by and between Trend Innovation Holdings, Inc and Treasure Drive Ltd. Dated April 3, 2023
10.4 Services Agreement between Trend Innovation Holdings, Inc and Elentina Group, LLC dated April 3, 2023
99.1 Tokenize – Avant-AI – Exhibt AI Technology Overview
99.2 EXHBIT A – DESIGN DOCUMENT – An Integral Part of TECHNOLOGY LICENSE AGREEMENT
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

SIGNATURES

  

In accordance with the requirements of the Securities Act of 1933, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  

       
       
Dated: April 3, 2023 TREND INNOVATIONS HOLDING INC.
   
  By: /s/ Natalija Tunevic
    Name: Natalija Tunevic 
    Title: President, Secretary and Director
       

 



THIS ASSET PURCHASE AGREEMENT (the “Agreement”) is made and entered into as of April 3, 2023, among GBT Tokenize Corp, a Nevada limited liability company (the “Seller”) which is 50% owned by GBT Technologies, Inc., a Nevada corporation (“GBT”) and Trend Innovations Holding, Inc., a Nevada corporation (the "Buyer").

 

WHEREAS, the Seller has developed and continues to develop Avant-AI, a proprietary system and method which is a text-generation, deep learning self-training model that is working based on an innovative, unique concepts which learns on its own and constantly enhances its information database with the advantage of unsupervised learning capabilities as described in detail on Exhibit A attached hereto (the “System”);

 

 

WHEREAS, the Seller desires to sell, and the Buyer desires to purchase and acquire all the System, which is all part of the Assets (as hereinafter defined) of the Seller including, without limitation, all intellectual property that qualifies as a tax-free reorganization under Section 368 of the Internal Revenue Code;

 

NOW, THEREFORE, in consideration of the mutual benefits to be derived from this Agreement and the representations, warranties, covenants, agreements, conditions and promises contained herein and therein, the parties hereto hereby agree as follows:

 

ARTICLE 1.

 

PURCHASE AND SALE OF ASSETS

 

1.1. PURCHASE AND SALE OF ASSETS. In accordance with the provisions of this Agreement, the Seller hereby sells, transfers, assigns and delivers free from all liens, charges and encumbrances to the Buyer, and the Buyer hereby purchases, acquires and accepts from the Seller, the right, title and interest in and to all the System and all intellectual property (the “Assets”), including, without limitation, the assets as described in Exhibit A, and the following assets:

 

(a)the Assets as described on Exhibit A;

 

(b)the source codes, the domain names and names and addresses of all registered users of such domain names and together with any other historical data owned or in the possession of the Seller, whether containing information concerning visitors to the domain names or otherwise, and all records relating thereto, and all records with respect to website development, content development, product development, costs, and all procedures, research and development files, data and other records listed; and
(c)

 

(d)all computer software used by Seller.

 

 

1.2. EXCLUDED LIABILITIES.

 

(a)       Buyer is hereby acquiring the Assets, as such it is expressly agreed and understood that the Buyer shall not assume any liabilities. Without limitation of the foregoing, Buyer is not assuming any: (i) claims of patent infringement existing prior to and as of the date hereof (ii) liability for any Taxes (as defined herein), (iii) Employee Plans (as defined herein), (iv) liabilities or obligations incurred on behalf or owed to any employees of Seller, (v) liabilities or obligations of Seller for indebtedness to any of its shareholders or other equity owners or to any person associated therewith, (vi) except as otherwise specifically provided herein, liabilities or obligations of Seller for expenses with respect to this Agreement or any of the transactions contemplated hereunder including, without limitation, legal and accounting fees, (vii) liabilities or obligations incurred by Seller which violate or breach any representation, warranty, covenant or agreement of Seller included herein or made in connection herewith (viii) liabilities or obligations with respect to any and all outstanding accounts payable as of the date hereof (vii) or (ix) any other liabilities or obligations that are not Assumed Contracts (collectively, the liabilities not being assumed by the Buyer are referred to herein as "Excluded Liabilities"). All responsibility with respect to all liabilities of the Seller including, but not limited to, the Excluded Liabilities, shall remain with the Seller.

 

(b)       The Buyer shall not assume or be bound by any obligations or liabilities of the Seller or any affiliate of the Seller of any kind or nature, known, unknown, accrued, absolute, contingent or otherwise, whether now existing or hereafter arising.

 

(c)       The Seller shall be solely (as between the Seller and the Buyer) responsible for and pay any and all debts, losses, damages, obligations, liens, assessments, judgments, fines, disposal and other costs and expenses, liabilities and claims, including, without limitation, interest, penalties and fees of counsel and experts, as the same are incurred, of every kind or nature whatsoever(all the foregoing being a "Claim" or the "Claims"), made by or owed to any person to the extent any of the foregoing relates to (i) the assets of the Seller not transferred hereunder, or (ii) the operations and assets of the System arising in connection with or on the basis of events, acts, omissions, conditions, or any other state of facts occurring or existing prior to or on the date hereof (including, in each case, without limitation, any Claim relating to or associated with tax matters, any failure to comply with applicable law and/or permitting or licensing requirements and personal injury and property damage matters).

 

 

1.3. PURCHASE PRICE.

 

(a)PAYMENT OF CONSIDERATION. The aggregate purchase price payable for the Assets consists of 26,000,000 Common Shares of Buyer with par value of $0.001 per (the “Consideration”), which Consideration will be delivered on the effective date.

 

(b)Lock-Up. During the nine month period following the Closing (“Lock-Up Term”), without the prior approval of the Buyer, the Sellers shall not, and shall cause its affiliates not to, pledge, sale, contract to sell, sale of any option or contract to purchase, purchase of any option or contract to sell, grant of any option, right or warrant for the sale of, or other disposition of or transfer the Consideration or the shares of common stock issuable upon conversion of the Consideration (the “Buyer Stock”), or any equivalents, including, without limitation, any “short sale” or similar arrangement, or swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Consideration or the Buyer Stock, whether any such swap or transaction is to be settled by delivery of securities, in cash or otherwise, including, without limitation, any “short sale” or similar arrangement.

 

(c)Effect of Failure to Obtain Nasdaq Listing During the Lock Up Term. If the Buyer is unable to up-list to Nasdaq either through a business combination or otherwise, upon expiration of the Lock Up Term, if requested by the Seller within three (3) business days of the expiration of the Lock-Up Term, the Buyer and the Seller shall take the following actions:

 

(d)(i)    the Seller shall return the Consideration to the Buyer;

 

(e)(ii)    the Buyer shall cancel the Consideration on the books and records of the Buyer;

 

(f)(iii) the Buyer shall return the Stock to the Sellers;

 

(g)(iv)     the Buyer and the Seller shall enter into an agreement terminating this Agreement and all ancillary agreements providing that such agreements are void and of no further force and effect (except as may be specified therein) and setting forth the rights and obligations of the parties post-termination, if any;

(h)(v)   Each party shall be responsible for their own liabilities in connection with any unwinding under this section; and

 

(i)(vi)    the Buyer and the Seller shall deliver such other agreements, certificates, instruments and documents as may be reasonably necessary and shall cooperate in good faith with one another in order to unwind the transactions contemplated by this Agreement and any ancillary agreements; provided that each party shall, except as otherwise set forth herein, bear its own costs to unwind the transactions contemplated by this Agreement and the ancillary agreements (including, for the avoidance of doubt, with respect to any regulatory filings required to be made with any governmental body).

 

(b) TAXES. The Seller shall pay any and all municipal, county, state and federal sales and documentary transfer taxes, impositions, liens, leases, assessments and similar charges if any, incurred by the Buyer or the Seller in connection with the transaction contemplated by this Agreement. Each party shall in a timely manner sign and swear to any return, certificate, questionnaire or affidavit as to matters within its knowledge required in connection with the payment of any such tax.

 

1.4. CLOSING. The closing of the transactions contemplated hereunder (the "Closing") will take place on April 1, 2023 (the "Closing Date"), unless another date is agreed to in writing by the parties.

 

1.5 Tax Free Reorganization. The parties intend that the transaction under this Agreement qualify as a tax-free reorganization under Section 368 of the Internal Revenue Code of 1986.

 

ARTICLE 2.

 

REPRESENTATIONS AND WARRANTIES

 

As used with respect to the Seller or the Buyer, as the case may be, the term "Material Adverse Effect" or "Material Adverse Change" means (i) any change, event, inaccuracy, violation, circumstance or effect, individually or in the aggregate, that has or is reasonably likely to have a material adverse effect on the business, assets (including intangible assets), operations, results of operations, properties or financial condition of the party and its subsidiaries taken as a whole, other than changes or effects (A) caused by changes in general economic or securities markets conditions, (B) that affect the business in which such party and its subsidiaries operate in general and that do not have a materially disproportionate effect on such party and its subsidiaries or (C) resulting from the announcement or proposed consummation of this Agreement and the transactions contemplated hereby (including any security holder class action litigation arising from allegations of a breach of fiduciary duty relating to this Agreement).

 

2.1. REPRESENTATIONS AND WARRANTIES OF THE SELLER. The Seller represents and warrants to the Buyer as set forth below.

 

(a) ORGANIZATION; GOOD STANDING; QUALIFICATION AND POWER. The Seller (i) is a corporation duly organized, validly existing and in good standing (ii) has all requisite power and authority to (A) own, lease and operate its properties and assets and to carry on its business as now being conducted and as proposed to be conducted, (B) to enter into this Agreement, (C) to perform its obligations hereunder and thereunder, and (D) to consummate the transactions contemplated hereby and thereby, and (iii) is duly qualified and in good standing to do business and the failure to be so qualified and in good standing could reasonably be expected to have a Material Adverse Effect on the Seller. The Seller has delivered to the Buyer true and complete copies of the shareholder agreement as of the date hereof.

 

(b) AUTHORITY; NO CONSENTS. All necessary approvals and consents have been secured by the Seller in accordance with the Nevada General Corporation Law and the of the Seller. The execution, delivery and performance by the Seller of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary action on the part of the Seller; and this Agreement when executed and delivered by the Seller will be, duly and validly executed and delivered by the Seller; and this Agreement is a valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, when executed and delivered by the Seller, will be a valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except as such enforceability may be limited by equitable principles and by applicable bankruptcy, insolvency, reorganization, arrangement, moratorium and similar laws relating to or affecting the rights of creditors generally.

 

(c) Intentionally left blank.

(d) ABSENCE OF UNDISCLOSED LIABILITIES. As of the Closing Date (i) the Seller had no liability or obligation of any nature (whether known or unknown, matured or un-matured, fixed or contingent, secured or unsecured, accrued, absolute or otherwise ("Liability")) which was not provided for or disclosed as of the Closing Date, and (ii) all liability reserves established by the Seller and set forth thereon were adequate for all such Liabilities at the respective dates thereof.

 

(e) ABSENCE OF CHANGES. Since inception, the Seller has been operated the Assets in the ordinary course (for Seller business with included designated Agent, Hippocrates platform and AI managing of E commerce), and there has not been:

 

(i) any adverse change in the business, assets, properties, Liabilities, operations, results of operations, condition (financial or otherwise), prospects or affairs of the Seller

 

(ii) any damage, destruction or loss, whether or not covered by insurance, having or which are reasonably likely to result in a Material Adverse Effect;

 

(iii) any Liability in excess of $25,000 created, assumed, guaranteed or incurred, or any material transaction, contract or commitment entered into, by the Seller, other than the license, sale or transfer of the Seller's products to customers in the ordinary course of business;

 

(iv) any payment, discharge or satisfaction of any material Encumbrance or Liability by the Seller or any cancellation by the Seller of any material debts or claims or any amendment, termination or waiver of any rights of material value to the Seller;

 

(v) the commencement of any litigation or other action by or against the Seller or any threat of commencement of any litigation or other action against the Seller; or

 

(vi) any agreement, understanding, authorization or proposal, whether in writing or otherwise, for the Seller to take any of the actions specified in items (i) through (xviii) above.

 

(f) TAX MATTERS. The Seller and each other entity (if any) included in any consolidated or combined tax return in which the Seller has been included (i) have filed and will file, in a timely and proper manner, consistent with applicable laws, all Federal, state and local tax returns and tax reports required to be filed by them through the Closing Date (the "Seller Returns") with the appropriate governmental agencies in all jurisdictions in which Seller Returns are required to be filed and have timely paid or will timely pay all amounts shown thereon to be due (“Taxes”); (ii) have paid and shall timely pay all Taxes of the Seller required to have been paid by the Seller on or before the Closing Date; and (iii) currently are not the beneficiary of an extension of time within which to file any Tax return or Tax report.

 

As used in this Agreement, "Tax" means any of the Taxes and "Taxes" means, with respect to any entity, (A) all income taxes (including any tax on or based upon net income, gross income, income as specially defined, earnings, profits or selected items of income, earnings or profits) and all gross receipts, sales, use, ad valorem, transfer, franchise, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property or windfall profits taxes, alternative or add-on minimum taxes, customs duties and other taxes, fees, assessments or charges of any kind whatsoever, together with all interest and penalties, additions to tax and other additional amounts imposed by any taxing authority (domestic or foreign) on such entity and (B) any liability for the payment of any amount of the type described in the immediately preceding clause (A) as a result of being a "transferee" (within the meaning of Section 6901 of the Code or any other applicable law) of another entity or a member of an affiliated or combined group.

 

(g) TITLE TO ASSETS, PROPERTIES AND RIGHTS AND RELATED MATTERS. The Seller has good and valid title to all assets, properties and interests in properties, real, personal or mixed, to be transferred pursuant to this Agreement. The assets, properties and interests in properties of the Seller are in good operating condition and repair in all material respects (ordinary wear and tear excepted). The assets, properties and interests in properties of the Seller to be owned, leased or licensed by the Buyer at the Closing Date shall include all assets, properties and interests in properties (real, personal and mixed, tangible and intangible) and all rights, leases, licenses and other agreements necessary to enable the Buyer to carry on the business of the Seller as presently conducted by the Seller. As used herein, the term "Encumbrances" shall mean and include security interests, mortgages, liens, pledges, guarantees, charges, easements, reservations, restrictions, clouds, equities, rights of way, options, rights of first refusal and all other encumbrances, whether or not relating to the extension of credit or the borrowing of money.

 

(h)Intentionally left blank.

 

(i) INTELLECTUAL PROPERTY. The Seller has good and valid title to, and owns free and clear of all Encumbrances, has the exclusive right to use, sell, transfer, market, manufacture, license (or sublicense), deliver and dispose of, and has the right to bring actions for the infringement of, all Intellectual Property Rights (collectively, the "Seller Rights").

 

(j) AGREEMENTS, ETC. The Seller is not a party to any agreement, arrangement or understanding, whether written or oral, formal or informal that has not been disclosed, relating to the Seller's rights in connection with the Assets.

 

For purposes of this Section 2.1(j), the term "material" shall mean and refer to those agreements, contracts, instruments or arrangements (as applicable) that involve payments or expenditures by or to the Seller, or otherwise have an aggregate value, of at least $15,000. The Seller has furnished to the Buyer true and complete copies of all such agreements or electronic standardized versions of such agreements, and (x) each such agreement (A) is the legal, valid and binding obligation of the Seller and, to the best knowledge of the Seller, the legal, valid and binding obligation of each other party thereto, in each case enforceable in accordance with its terms, except as such enforceability may be limited by equitable principles and by applicable bankruptcy, insolvency, reorganization, arrangement, moratorium and similar laws relating to or affecting the rights of creditors generally (B) is to the best of knowledge of Seller in full force and effect and (y) to the best knowledge of the Seller , the other party or parties thereto is or are not in material default thereunder.

 

(k) NO ASSETS DEFAULTS. The Seller has in all material respects performed all the obligations required to be performed by it to date in connection with the Assets, and is not in default or alleged to be in default under (i) its shareholder agreement or (ii) any material agreement, lease, license, contract, commitment, instrument or obligation to which the Seller is a party or by which any of its properties, assets or rights are or may be bound or affected and, to the best knowledge of the Seller, there exists no event, condition or occurrence which, with or without due notice or lapse of time, or both, would constitute such a default by it of any of the foregoing.

 

(l) LITIGATION, ETC. In connection with the Assets, there are no (i) actions, suits, claims, investigations or legal or administrative or arbitration proceedings pending, or to the best knowledge of the Seller, threatened against the Seller, whether at law or in equity, or before or by any Federal, state, local, municipal, foreign or other governmental court, department, commission, board, bureau, agency or instrumentality ("Governmental Authority"), (ii) judgments, decrees, injunctions or orders of any Governmental Authority or arbitrator against the Seller or (iii) disputes with customers or vendors. There are no Actions pending or, to the best knowledge of the Seller, threatened, with respect to (A) the current employment by, or association with, the Seller, or future employment by, or association with, the Buyer, of any of the present officers or employees of, or consultants to, the Seller (collectively, the "Designated Persons") or (B) the use, in connection with any business presently conducted by the Seller or the Buyer, of any information, techniques or processes presently utilized or proposed to be utilized by the Seller, the Buyer or any of the Designated Persons, that the Seller, the Buyer or any of the Designated Persons are or would be prohibited from using as the result of a violation or breach of, or conflict with any agreements or arrangements between any Designated Person and any other person, or any legal considerations applicable to unfair competition, trade secrets or confidential or proprietary information. The Seller has delivered to the Buyer all material documents and correspondence relating to such matters.

 

(m) Intentionally Left Blank.

 

(n) BROKERS. The Seller has not, nor have any of its officers, security holders or employees, employed any broker or finder or incurred any liability for any brokerage fees, commissions or finders' fees in connection with the transactions contemplated hereby.

 

(o) RELATED TRANSACTIONS. No current or former officer or security holder of the Seller that is an affiliate of the Seller or any associate (as defined in the rules promulgated under the Exchange Act) thereof, is now, or has been since the inception of the Seller, a party to any transaction with the Seller (including, but not limited to, any contract, agreement or other arrangement providing for the furnishing of services by, or rental of real or personal property from, or borrowing money from, or otherwise requiring payments to, any such officer or affiliated security holder of the Seller or associate thereof), or the direct or indirect owner of an interest in any corporation, firm, association or business organization which is a present or potential competitor, supplier or customer of the Seller (other than non-affiliated holdings in publicly-held companies), nor does any such person receive income from any source other than the Seller which relates to the business of, or should properly accrue to, the Seller.

 

(p) DISCLOSURE. Neither Section 2.1 of this Agreement nor any document, written information, statement, financial statement, certificate or exhibit furnished or to be furnished to the Buyer by or on behalf of the Seller or any security holder pursuant hereto or in connection with the transactions contemplated hereby, contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements or facts contained herein and therein not misleading in light of the circumstances under which they were made. There is no fact internal to the business of the Seller known to the Seller that has not been disclosed to the Buyer in writing that (i) is reasonably likely to result in a Material Adverse Effect or (ii) adversely affects or could adversely affect the ability of the Seller to perform its or their respective obligations under this Agreement or the Related Agreements.

 

(q) KNOWLEDGE DEFINITION. As used in this Article 2, the term "best knowledge" and like phrases shall mean and include the knowledge, after due inquiry.

 

2.2. Intentionally left blank.

 

2.3. REPRESENTATIONS AND WARRANTIES OF THE BUYER.

 

The Buyer represents and warrants to the Seller as set forth below.

 

(a) ORGANIZATION; GOOD STANDING; QUALIFICATION AND POWER. The Buyer (i) is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada, and (ii) has all requisite corporate power and authority to own, lease and operate its properties and assets and to carry on its business as now being conducted, to enter into this Agreement and each of the Related Agreements to which it is a party, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The Buyer has delivered to the Seller true and complete copies of the Charter and by-laws of the Buyer. The Buyer is qualified to do business and is in good standing in each in jurisdiction in which the nature of its business requires it to be so qualified except where the failure to so qualify would not have a Material Adverse Effect.

 

(b) CAPITAL STOCK. The Buyer has provided to Seller a true and complete description of the authorized and outstanding shares of capital stock of the Buyer as of the Closing Date

 

(c) AUTHORITY. The execution, delivery and performance by the Buyer of this Agreement and each of the Related Agreements to which it is a party and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part of the Buyer. This Agreement and each of the Related Agreements to which the Buyer is a party are valid and binding obligations of the Buyer, enforceable against the Buyer in accordance with their respective terms, except as such enforceability may be limited by equitable principles and by applicable bankruptcy, insolvency, reorganization, arrangement, moratorium and similar laws relating to or affecting the rights of creditors, generally.

 

(d) ABSENCE OF CHANGES. Since inception through the date hereof, there has not been any material adverse change in the business, properties, operations or condition (financial or otherwise) of the Buyer (a “Buyer Material Adverse Change”); provided, however, that a change in the market price or trading volume of the common stock of Buyer shall not be deemed, in and of itself, to constitute a Buyer Material Adverse Change.

 

(e) BROKERS. Neither the Buyer, nor any of its officers, directors or employees have employed any broker or finder or incurred any liability for any brokerage fees, commissions or finders' fees in connection with the transactions contemplated hereby.

 

ARTICLE 3.

 

INTENTIONALLY LEFT BLANK

 

ARTICLE 4.

 

CONDUCT AND TRANSACTIONS PRIOR

TO CLOSING DATE

 

4.1. LEGAL CONDITIONS TO TRANSACTIONS. Each party hereto shall use its reasonable best efforts to comply promptly with all legal requirements that may be imposed on such party with respect to the transactions contemplated hereunder and will take all action necessary to cooperate with and furnish information to the other party in connection with any such requirements imposed upon such other party in connection with the transactions contemplated hereunder. Each party hereto shall take all reasonable actions necessary (a) to obtain (and will take all reasonable actions necessary to promptly cooperate with the other party in obtaining) any consent, authorization, order or approval of, or any exemption by, any Governmental Authority, or other third party, required to be obtained or made by such party (or by the other parties) in connection with the taking of any action contemplated by this Agreement, (b) to defend, lift, rescind or mitigate the effect of any lawsuit, order, injunction or other action adversely affecting the ability of such party to consummate the transactions contemplated hereby and (c) to fulfill all conditions precedent applicable to such party pursuant to this Agreement.

 

4.2. CONSENTS. Each party hereto shall use its best efforts, and the other parties shall cooperate with such efforts, to obtain any consents and approvals of, or effect the notification of or filing with, each person or authority, whether private or governmental, whose consent or approval is required in order to permit the consummation of the transactions contemplated hereby and to enable the Buyer to conduct and operate the business of the Seller as presently conducted and as proposed to be conducted.

 

4.3. EFFORTS TO CONSUMMATE. Subject to the terms and conditions herein provided, the parties hereto shall use their reasonable best efforts to do or cause to be done all such acts and things as may be necessary, proper or advisable, consistent with all applicable laws and regulations, to consummate and make effective the transactions contemplated hereby and to satisfy or cause to be satisfied all conditions precedent that are set forth in Article 6 as soon as reasonably practicable.

 

4.4. NOTICE OF BREACH. Within a reasonable time period following such event, each party hereto shall notify the other parties in writing upon the occurrence of any act, event, circumstance or thing that would cause or result in a representation or warranty hereunder being untrue at the Closing, the failure of a closing condition to be achieved at the Closing, or any other breach or violation hereof or default hereunder.

 

4.5. SUPPORT OF TRANSACTION BY OFFICERS, DIRECTORS AND SHAREHOLDERS. Each party hereto shall use its reasonable best efforts to cause all of its officers, directors and shareholders, as the case may be, to support the transactions contemplated hereunder and to take all actions and execute all documents reasonably requested by the other parties hereto to carry out the intent of the parties with respect to the transactions contemplated hereby.

 

 

ARTICLE 5.

 

CONDITIONS PRECEDENT

 

5.1. CONDITIONS TO EACH PARTY'S OBLIGATIONS. The obligations of each party hereto to perform this Agreement is subject to the satisfaction of the following conditions unless waived (to the extent such conditions can be waived) by all parties hereto:

 

(a) APPROVALS. The Buyer and the Seller and their respective subsidiaries shall have timely obtained from each Governmental Authority all approvals, waivers and consents, if any, necessary for consummation of the transactions contemplated hereby, including such approvals, waivers and consents as may be required under the Securities Act and under state securities laws.

 

(c) LEGAL ACTION. No temporary restraining order, preliminary injunction or permanent injunction or other order preventing the consummation of the transactions contemplated hereunder shall have been issued by any Federal or state court or other Governmental Authority and remain in effect.

 

(d) LEGISLATION. No Federal, state, local or foreign statute, rule or regulation shall have been enacted which prohibits, restricts or delays the consummation of the transactions contemplated by this Agreement or any of the conditions to the consummation of such transactions.

 

5.2. CONDITIONS TO OBLIGATIONS OF THE BUYER. The obligations of the Buyer to perform this Agreement is subject to the satisfaction of the following conditions unless waived (to the extent such conditions can be waived) by the Buyer at the Closing:

 

(a) REPRESENTATIONS AND WARRANTIES OF THE SELLER. The representations and warranties of the Seller set forth in Section 2.1 hereof shall be true and correct as of the Closing Date (except to the extent any such representation or warranty expressly speaks as of an earlier date, which representations and warranties shall be true and correct as of such date in the same manner as specified above), and the Buyer shall have received a certificate signed on behalf of the Seller by the CEO of the Seller to such effect.

 

(b) PERFORMANCE OF OBLIGATIONS OF THE SELLER. The Seller shall have performed in all material respects the obligations required to be performed by each of them under this Agreement prior to or as of the Closing Date, and the Buyer shall have received a certificate signed by the CEO of the Seller to that effect.

 

(c) CONSENTS AND APPROVALS. Duly executed copies of all consents and approvals contemplated by this Agreement, in form and substance satisfactory to the Buyer, shall have been delivered by the Seller.

 

(d) GOVERNMENT CONSENTS, AUTHORIZATIONS, ETC. Copies of all consents, authorizations, orders or approvals of, and filings or registrations with, any Governmental Authority which are required for or in connection with the execution and delivery by the Seller of this Agreement and the consummation by the Seller and each of the Shareholders of the transactions contemplated hereby, shall have been delivered by the Seller.

 

5.3. CONDITIONS TO OBLIGATIONS OF THE SELLER. The obligations of the Seller to perform this Agreement to which they are a party are subject to the satisfaction of the following conditions unless waived (to the extent such conditions can be waived) by the Seller:

 

(a) REPRESENTATIONS AND WARRANTIES OF THE BUYER. The representations and warranties of the Buyer set forth in Section 2.3 hereof shall be true and correct as of the Closing Date as though made on and as of the Closing Date (except to the extent any such representation or warranty expressly speaks as of an earlier date, which representations and warranties shall be true and correct as of such date in the same manner as specified above), and the Seller shall have received a certificate signed on behalf of the Buyer by the Chief Executive Officer of the Buyer to such effect.

 

(b) PERFORMANCE OF OBLIGATIONS OF THE BUYER. The Buyer shall have performed in all material respects its obligations required to be performed by it under this Agreement prior to or as of the Closing Date and the Seller shall have received a certificate signed by the Chief Executive Officer of the Buyer to that effect.

 

(c) GOVERNMENT CONSENTS, AUTHORIZATIONS, ETC. Copies of all consents, authorizations, orders or approvals of, and filings or registrations with, any Governmental Authority which are required for or in connection with the execution and delivery by the Buyer of this Agreement and the consummation by the Buyer of the transactions contemplated hereby or thereby, shall have been delivered by the Buyer.

 

(e) PURCHASE PRICE. The delivery of the Consideration deliverable at the Closing Date in the manner and otherwise in accordance with Article 1 hereof, shall have been made by the Buyer.

 

 

ARTICLE 6.

 

ADDITIONAL AGREEMENTS

 

6.1. RESTRICTIONS ON TRANSFER.

 

(a) The Stock Consideration to be issued to the Seller at the Closing Date or thereafter shall not be sold, transferred, assigned, pledged, encumbered or otherwise disposed of (each, a "Transfer") except upon the conditions specified in this Section 6.1, which conditions are intended to insure compliance with the provisions of the Securities Act. The Seller shall observe and comply with the Securities Act and the rules and regulations promulgated by the SEC thereunder as now in effect or hereafter enacted or promulgated, and as from time to time amended, in connection with any transfer of the Stock Consideration beneficially owned by the Seller.

 

(b) Each certificate representing the Stock Consideration issued to the Seller and each certificate for such securities issued to subsequent transferees of any such certificate shall (unless otherwise permitted by the provisions of Section hereof) be stamped or otherwise imprinted with a legend in substantially the following form:

 

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES OR "BLUE-SKY" LAWS. THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM.

 

6.2. CONFIDENTIALITY. Each party hereto agrees that any information obtained by such party (the "Receiving Party") pursuant to or in connection with this Agreement and the transactions contemplated hereby and thereby which may be proprietary or otherwise confidential to any other party hereto (the "Disclosing Party") will not be disclosed by the Receiving Party without the prior written consent of the Disclosing Party. Each party further acknowledges and understands that any information obtained which may be considered "inside" non-public information will not be utilized by such party in connection with purchases and/or sales of the Forex’s shares of common stock except in compliance with applicable state and federal anti-fraud statutes.

 

 

 

ARTICLE 7.

 

INDEMNIFICATION

 

 

7.1. DEFINITIONS. As used in this Agreement, the following terms shall have the following meanings:

 

(a) "AFFILIATE" as to any person means any entity, directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with such person.

 

(b) "EVENT OF INDEMNIFICATION" shall mean the following:

 

(i) the untruth, inaccuracy or breach of any representation or warranty of the Seller (including the fact and circumstances underlying such untruth, inaccuracy or breach) contained in Section 2.1 of this Agreement, any Exhibit or Schedule hereto or any other document delivered in connection herewith or therewith (without giving effect to any "Material Adverse Effect" or other materiality qualification or any similar qualification contained or incorporated directly or indirectly in such representation or warranty);

 

(ii) intentionally left blank;

 

(iii) the breach of any agreement or covenant of the Seller contained in this Agreement , any Exhibit hereto or any other document delivered in connection herewith or therewith;

 

(iv) the untruth, inaccuracy or breach of any representation or warranty of the Buyer (including the fact and circumstances underlying such untruth, inaccuracy or breach) contained in Section 2.3 of this Agreement, any Exhibit or Schedule hereto or any other document delivered in connection herewith (without giving effect to any "Material Adverse Effect" or other materiality qualification or any similar qualification contained or incorporated directly or indirectly in such representation or warranty) or

 

(v) the breach of any agreement or covenant of the Buyer contained in this Agreement, any Exhibit hereto or any document delivered in connection herewith.

 

(c) "INDEMNIFIED PERSONS" shall mean and include (A) with respect to an Indemnification Event described in subsections 7.1(b)(i) and 7.1(b)(iii) hereof (each a “Seller Event of Indemnification”), the Buyer and its Affiliates, successors and assigns, and the officers, directors and agents of the Buyer (the “Buyer Indemnified Persons”), or (B) with respect to an Indemnification Event described in subsections 7.1(b)(iv) and 7.1(b)(v) hereof (each, a “Buyer Event of Indemnification”), the Seller and their respective Affiliates, successors and assigns, and the respective officers, directors and agents of each of the foregoing (the “Seller Indemnified Persons”).

 

(d) "INDEMNIFYING PERSONS" shall mean and include (A) with respect to an Indemnification Event described in subsections 7.1(b)(i) and 7.1(b)(iii) hereof, the Seller and their respective successors, assigns, heirs and legal representatives and estates, as the case may be (the “Seller Indemnifying Persons”), , and (B) with respect to an Indemnification Event described in subsections 7.1(b)(iv) and 7.1(b)(v) hereof, the Buyer and its successors and assigns (the “Buyer Indemnifying Persons”).

 

(e) "LOSSES" shall mean any and all losses, claims, damages, liabilities, expenses (including reasonable attorneys', accountants' and experts' fees) sustained, suffered or incurred by any Indemnified Person arising from or in connection with any such matter that is the subject of indemnification under Section 7.2 hereof that shall not exceed the amount of any consideration actually paid by such Indemnifying Parties provided for hereunder.

 

7.2. INDEMNIFICATION GENERALLY. Subject to Section 7.6 hereof, (a) the Seller Indemnifying Persons shall severally but not jointly indemnify the Buyer Indemnified Persons for, and hold each of them harmless from and against, any and all Losses arising from or in connection with any Seller Event of Indemnification that occurs on or the Buyer Indemnified Persons become aware of prior to June 30, 2016, and (b) the Buyer Indemnifying Persons shall jointly and severally indemnify the Seller Indemnified Persons for, and hold each of them harmless from and against, any and all Losses arising from or in connection with a Buyer Event of Indemnification that occurs on or the Seller Indemnified Persons become aware of prior to June 30, 2016.

 

7.3. ASSERTION OF CLAIMS. No claim shall be brought under Section 7.1 hereof unless the Indemnified Persons, or any of them, at any time prior to the applicable Survival Date, give the Indemnifying Persons, as applicable, (a) written notice of the existence of any such claim, specifying the nature and basis of such claim and the amount thereof, to the extent known, or (b) written notice pursuant to Section 7.4 of any third party claim, the existence of which might give rise to such a claim but the failure so to provide such notice will not relieve the Indemnifying Persons from any liability that they may have to the Indemnified Persons under this Agreement or otherwise (unless and only to the extent that such failure results in the loss or compromise of any rights or defenses of the Indemnifying Persons and they were not otherwise aware of such action or claim). Upon the giving of such written notice as aforesaid, the Indemnified Persons, or any of them, shall have the right to commence legal proceedings prior or subsequent to the Survival Date for the enforcement of their rights under Section 7.2 hereof.

 

7.4. NOTICE AND DEFENSE OF THIRD-PARTY CLAIMS. Losses resulting from the assertion of liability by third parties (each, a "Third Party Claim") shall be subject to the following terms and conditions:

 

(a) The Indemnified Persons shall promptly give written notice to the Indemnifying Persons, as applicable, of any Third-Party Claim that might give rise to any Loss by the Indemnified Persons, or any of them, stating the nature and basis of such Third-Party Claim, and the amount thereof, to the extent known. Such notice shall be accompanied by copies of all relevant documentation with respect to such Third-Party Claim, including, without limitation, any summons, complaint or other pleading that may have been served, any written demand or any other document or instrument. Notwithstanding the foregoing, the failure to provide notice as aforesaid will not relieve the Indemnifying Persons from any liability which they may have to the Indemnified Persons under this Agreement or otherwise (unless and only to the extent that such failure results in the loss or compromise of any rights or defenses of the Indemnifying Person and they were not otherwise aware of such action or claim).

 

(b) If the Indemnifying Person acknowledges in writing its obligation to indemnify the Indemnified Persons hereunder against any Losses that may result from such Third Party Claims, then the Indemnifying Person shall be entitled, at its option, to assume and control the defense of such Third Party Claim at its expense and through counsel of its reasonable choice if it gives notice to the Indemnified Persons within twenty (20) calendar days of the receipt of notice of such Third Party Claim from the Indemnified Persons of its intention to do so. If the Indemnifying Person elects to assume and control the defense of any such Third Party Claim, the Indemnified Persons shall have the right to employ separate counsel and to participate in (but not control) the defense, compromise or settlement of the Third Party Claim, but the fees and expenses of such counsel will be at the expense of the Indemnified Persons, unless (i) the Indemnifying Person has agreed to pay such fees and expenses, or (ii) the Indemnified Persons has been advised by its counsel that there may be one or more defenses reasonably available to it which are different from or additional to those available to the Indemnifying Person, and in any such case that portion of the fees and expenses of such separate counsel that are reasonably related to matters covered by the indemnification provided by this Article 7 will be paid by the Indemnifying Person. Expenses of counsel to the Indemnified Persons shall be reimbursed on a current basis by the Indemnifying Person if there is no dispute as to the obligation of the Indemnifying Person to pay such amounts pursuant to this Article 7. In the event the Indemnifying Person exercises its right to undertake the defense against any such Third-Party Claim as provided above, the Indemnified Persons shall cooperate with the Indemnifying Person in such defense and make available to the Indemnifying Person, at the Indemnifying Person's expense, all witnesses, pertinent records, materials and information in its possession or under its control relating thereto as is reasonably required by the Indemnifying Person. Similarly, in the event the Indemnified Persons is, directly or indirectly, conducting the defense against any such Third-Party Claim, the Indemnifying Person shall cooperate with the Indemnified Persons in such defense and make available to it, at the Indemnifying Person's expense, all such witnesses, records, materials and information in its possession or under its control relating thereto as is reasonably required by the Indemnified Persons. No such Third-Party Claim, except the settlement thereof which involves the payment of money only (by a party or parties other than the Indemnified Persons) and for which the Indemnified Persons is released by the third party claimant and is totally indemnified by the Indemnifying Person, may be settled by the Indemnifying Person without the written consent of the Indemnified Persons. No Third-Party Claim which is being defended in good faith by the Indemnifying Person shall be settled by the Indemnified Persons without the written consent of the Indemnifying Person.

 

7.5. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. Subject to the further provisions of this Section 7.5, the respective representations and warranties of all parties shall survive the Closing Date until the applicable statute of limitation shall have expired (the “Survival Date”).

 

7.6. LIMITATION ON INDEMNIFICATION.

 

(i)       Anything to the contrary contained in this Article 7 notwithstanding, the Indemnifying Persons shall not be obligated to indemnify the Indemnified Persons pursuant to this Article 7 with respect to any Losses pursuant to Section 7.2 until the aggregate amount of such Losses exceeds fifty thousand dollars ($50,000) (the "Basket Amount"), whereupon the Indemnifying Persons shall be obligated to indemnify the Indemnified Persons for all Losses in excess of the Basket Amount:

.

(ii)       Each Indemnifying Person’s liability for any Losses shall be limited to the amount of such Losses net of the difference between any insurance proceeds received by the Indemnified Person in respect thereof minus the amount of premiums paid for such insurance by the Indemnified Person.

 

(iii)       Notwithstanding any other provision of this Agreement, Losses related to the matters set forth in Section 2.2(a) and Losses attributable to fraud, the indemnities set forth in this Section 7 shall be the exclusive remedies of the Indemnified Persons for any misrepresentation or breach of any representation or warranty or covenant or agreement contained in this Agreement.

 

7.7. RIGHT OF SET-OFF. At its sole discretion and without limiting any other rights of the Buyer under this Agreement or at law or equity, the Buyer may satisfy any Losses for which it is to be indemnified by the Seller in this Agreement in whole or in part by offset against any funds, securities, or other property payable by the Buyer to the Seller and neither the exercise of nor the failure to exercise such right of set-off will constitute an election of remedies or limit the Buyer in any manner in the enforcement of any other remedies that may be available to them.

 

ARTICLE 8.

 

MISCELLANEOUS

 

8.1. EXPENSES. As used in this Agreement, "Transaction Costs" shall mean (a) with respect to the Buyer, all actual, out-of-pocket expenses incurred by such party to third parties, in connection with this Agreement and all other transactions provided for herein and therein, and (b) with respect to the Seller, all actual, out-of-pocket expenses incurred by such party to third parties, in connection with this Agreement and all other transactions provided for herein and therein, but shall not in any event include general overhead; the time spent by employees of such party internally; postage, telephone, telecopy, photocopy and delivery expenses of such party; permit and filing fees; and other non-material expenses that are incidental to the ordinary course of business. Each party hereto shall bear its own fees and expenses in connection with the transactions contemplated hereby.

 

8.2. ENTIRE AGREEMENT. This Agreement (including any Exhibits attached hereto), and the other writings referred to herein contain the entire agreement among the parties hereto with respect to the transactions contemplated hereby and supersede all prior or contemporaneous agreements or understandings, written or oral, among the parties with respect thereto.

 

8.3. DESCRIPTIVE HEADINGS. Descriptive headings are for convenience only and shall not control or affect the meaning or construction of any provision of this Agreement.

 

8.4. PUBLIC ANNOUNCEMENTS. The parties hereto agree that, to the maximum extent feasible, but subject, in the case of the Forex, to its public disclosure and, as to all parties, other legal and regulatory obligations, they shall advise and confer with each other prior to the issuance (and provide copies to the other party prior to issuance) of any public announcements, reports, statements or releases pertaining to the transactions contemplated hereunder. However, all parties acknowledge that this Agreement and a description of the transaction described herein will be filed with the Securities and Exchange Commission as an exhibit to applicable annual, quarterly and/or quarterly reports.

 

8.5. NOTICES. All notices or other communications which are required or permitted hereunder shall be in writing and sufficient if delivered personally or sent by nationally-recognized overnight courier or by registered or certified mail, postage prepaid, return receipt requested, or by facsimile, with confirmation as provided above addressed as follows:

 

(a) if to the Buyer, to:

 

Trend Innovations Holding, Inc.

44A Gedimino Ave.,

Vilnius, Lithuania LT-01402

Attention: Natalija Tunevic, CEO

 

(b) if to the Seller, to:

 

GBT Technologies, Inc., and GBT Tokenize Corp c/o GBT Technologies, Inc

2450 Colorado Ave., Suite 100E, Santa Monica, CA 90404

Attention: Mansour Khatib, GBT CEO, and/or Michael Murray GBT Tokenize CEO

 

(c) intentionally left blank.

 

(d) All such notices or communications shall be deemed to be received (i) in the case of personal delivery or facsimile, on the date of such delivery, (ii) in the case of nationally-recognized overnight courier, on the next Business Day after the date when sent and (iii) in the case of mailing, on the third Business Day following the date on which the piece of mail containing such communication was posted.

 

8.6. COUNTERPARTS. This Agreement may be executed in any number of counterparts by original or facsimile signature, each such counterpart shall be an original instrument, and all such counterparts together shall constitute one and the same agreement.

 

8.7. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada applicable to contracts made and to be performed wholly therein (without regard to principles of conflicts of laws).

 

8.8. BENEFITS OF AGREEMENT. All the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

8.9. PRONOUNS. As used herein, all pronouns shall include the masculine, feminine, neuter, singular and plural thereof whenever the context and facts require such construction.

 

8.10. AMENDMENT, MODIFICATION AND WAIVER. This Agreement shall not be altered or otherwise amended except pursuant to an instrument in writing signed by (i) the Buyer and (ii) the Seller; provided, however, that any party to this Agreement may waive any obligation owed to it by any other party under this Agreement. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach.

 

8.11. SEVERABILITY. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the greatest extent possible.

 

8.12. FURTHER ASSURANCES. Each party agrees to cooperate fully with the other parties and to execute such further instruments, documents and agreements and to give such further written assurances as may be reasonably requested by any other party to evidence and reflect the transactions described herein and contemplated hereby and to carry into effect the intents and purposes of this Agreement.

 

8.13. CONSENT TO JURISDICTION; WAIVERS. Each of the parties hereto irrevocably submits to the exclusive jurisdiction of (a) the Supreme Court of the State of Nevada, Clark County, and (b) the United States District Court for the Central District of Nevada, for the purposes of any Action (as defined below) arising out of this Agreement or any Related Agreement or any transaction contemplated hereby or thereby. Each of the parties hereto agrees to commence any Action relating hereto either in the United States District Court for the Central District of Nevada or if such Action may not be brought in such court for jurisdictional reasons, in the Supreme Court of the State of Nevada, Clark County. Each of the parties hereto further agrees that service of any process, summons, notice or document by U.S. registered mail to such party's respective address set forth in Section 9.5 shall be effective service of process for any Action in Nevada with respect to any matters to which it has submitted to jurisdiction in this Section 8.13. Each of the parties hereto irrevocably and unconditionally waives any objection to the laying of venue of any Action arising out of this Agreement or any Related Agreement or any transaction contemplated hereby or thereby in (i) the Supreme Court of the State of Nevada, Clark County, or (ii) the United States District Court for the Central District of Nevada, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such Action brought in any such court has been brought in an inconvenient forum. For purposes of this Agreement, "Action" means any claim, action, suit or arbitration, or any other proceeding, in each instance by or before any Governmental Authority or any nongovernmental arbitration, mediation or other non-judicial dispute resolution body.

 

8.14. WAIVER OF JURY TRIAL. Each of the parties hereto irrevocably and unconditionally waives trial by jury in any Action relating to this Agreement or any transaction contemplated hereby or thereby, and for any counterclaim with respect thereto.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

IN WITNESS WHEREOF, each of the parties hereto has caused this Asset Purchase Agreement to be executed on its behalf as of the day and year first above written.

 

SELLER

 

 

 

 

GBT TOKENIZE CORP

 

By: ___________________

Name: Michael D. Murray

Title: CEO

 

 

TREND INNOVATIONS HOLDING, INC.

 

By: ___________________

Name: Natalija Tunevic

Title: CEO

 

 

ACKNOWLEDGED AND AGEED:

 

GBT TECHNOLOGIES, INC.

 

By: ___________________

Name: Mansour Khatib

Title: CEO

 

 

 

 

 

 

 

 

 

 

 

Exhibit A – Assets

 

 

Domain names:

 

https://www.avant-ai.net/ - Serving as Avant Information agent and GBT information agent.

 

https://www.hmd.care - Serve as application of Avant – Ai based medical advisor.

 

Smartphone application:

 

Working under Avant! Ai– Android and iPhone.

 

White Paper.

 

TECHNOLOGY LICENSE AGREEMENT

THIS TECHNOLOGY LICENSE AGREEMENT (the “Agreement”) is made and entered into this 3 day of April, 2023, (the “Effective Date”), by and between Trend Innovations Holding, Inc., a Nevada corporation (“Licensor”), and, GBT Technologies, Inc., a Nevada corporation (“GBT”), GBT Tokenize Corp, a Nevada limited liability company and a 50% owned subsidiary of GBT (“Subsidiary” and together with GBT, the “Company”).

WITNESSETH:

WHEREAS, Licensor, as a result of certain Asset Purchase Agreement with the Company, is the owner of a proprietary system and method named Avant-Ai, which is a text-generation, deep learning self-training model that is working based on an innovative, unique concept which learns on its own and constantly enhancing its information database with the advantage of unsupervised learning capabilities as described in details on Exhibit A (the “System”); and

WHEREAS, as the Company using the system for its own other technologies developments, Licensor agrees to license the technology to Company under the terms hereof;

NOW, THEREFORE, in consideration of the premises and the mutual promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. DEFINITIONS

1.1. “Derivative Technology” means any and all proprietary processes, inventions, discoveries, technology, apparatus, tools, drawings, designs, prototypes, plans, specifications, materials, trade secrets, works of authorship, know-how, standards, documentation, applications, programs, methods, techniques, formulae, protocols, analyses, information and data in any form (whether or not patentable or copyrightable), and any and all other intellectual property or proprietary information discovered, derived or developed from or based upon the Licensor Technology, or as a result of the Company’s use of the Licensor Technology.

1.2. “Licensor Technology” means any and all proprietary processes, inventions, discoveries, technology, apparatus, tools, drawings, designs, prototypes, plans, specifications, materials, trade secrets, works of authorship, know-how, standards, documentation, applications, programs, methods, techniques, formulae, protocols, analyses, information and data in any form (whether or not patentable or copyrightable), and any and all other intellectual property or proprietary information, that presently exists or is developed prior to, on or after the date of execution of this Agreement relating in any way to Licensor’s creating system and methods of facilitating digital rating and secured sales of digital works as well as core virtual reality platforms knowns as digital auction systems, rating and secure sales via open bid auctions and operational capabilities related thereto as described in Exhibit A.

1.3. “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or other entity, or a government or any branch, department, agency, political subdivision or official thereof.

1.4 “Fields of Use” means the development of a platform enabling everyday users to have the experience of trading nft/crypto and become famous according to their artwork creations, without actually performing an actual trade while monetizing on their artwork creations.

2. GRANT OF LICENSE

2.1 Effective as of the Effective Date, Licensor hereby grants to Company for its uses only within the Fields of Use, a perpetual, irrevocable, non-exclusive, nontransferable (other than as part of a sale of all or substantially all of the assets of the Company, a merger or consolidation of the Company, or other transaction or series of transactions constituting a sale of all or substantially all of the securities in the Company, or as expressly provided in this Agreement), unlimited, unrestricted, worldwide and fully paid up license, to (i) use the Licensor Technology and Derivative Technology (hereinafter, the “Technology”) in the Fields of Use and, (ii) design, develop, manufacture, have manufactured, use, sell, offer for sale, promote, advertise, import, distribute, test or service products embodying or comprised of (in whole or in part) (x) said applications, and/or (y) the Licensor Technology and/or Derivative Technology in the Fields of Use.

2.2 During the term of this Agreement, Licensor agrees that it (i) shall have no right to exploit the Technology (in whole or in part) in the Field of Use; and (ii) shall not disclose or license any Technology (in whole or in part) in the Fields of Use to any Person without the prior written consent of the Company.

2.3 The parties agree that the Company may not sublicense its rights hereunder to any customer or client of the Company. The license being granted to the Company only to be used in its own development, as in-house tool.

3. OWNERSHIP OF DERIVATIVE TECHNOLOGY

3.1 Licensor acknowledges and agrees that the Company shall be the worldwide owner of (i) any and all Derivative Technology made or developed by Licensor or the Company, alone or jointly with others, during the term and within the Fields of Use, and (ii) any and all intellectual property and proprietary rights in such Derivative Technology in the Fields of Use, including without limitation the worldwide patents for such Derivative Technology and all subsidiary rights in such Derivative Technology. Licensor hereby assigns, and upon creation of said Derivative Technology does assign, to the Company all of Licensor’s right, title and interest in and to such Derivative Technology in the Fields of Use, whether made or developed solely by Licensor or jointly with the Company or others. Licensor acknowledges that the decision whether or not to commercialize, exploit or market any Derivative Technology in the Fields of Use is within the Company’s sole discretion and for the Company’s sole benefit.

3.2 To the extent any said Derivative Technology is made or developed by Licensor, alone or joint with others, in the Fields of Use, Licensor agrees to execute all documents requested by the Company and provide assistance to the Company to enable the Company or its designee(s) to secure all rights in and to said Derivative Technology, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments that the Company deems necessary to apply for and obtain such rights and to assign and convey to the Company and its successors and assigns any patents or other intellectual property and proprietary rights relating thereto.

4. TERM AND ROYALTY

This Agreement and the license granted hereunder shall become effective as of the Effective Date and shall continue in perpetuity. However, if after a period of five (5) years any portion of the Licensed Technology has not been developed or brought to market the exclusive nature of this License shall be lost as to the specific aspect of the license, and such technology may be licensed or used elsewhere by Licensor. This License shall continue in a non-exclusive manner as to that technology, and this License shall not be affected as to any applications of the technology that has been developed and brought to market.

In consideration of the entering into this Agreement and providing the license to the Technology, the Company shall pay to the Licensor US Dollar $1.00.

5. REPRESENTATIONS AND WARRANTIES

Licensor represents and warrants to the Company that, as of the Effective Date, (i) Licensor is the sole and exclusive owner of all worldwide right, title and interest in and to the Licensor Technology, free and clear of any liens, claims, security interests, encumbrances or demands of third parties, (ii) Licensor has the full right and authority to enter into and grant to the Company, all rights granted under this Agreement, (iii) Licensor is not a party to any agreement and has not granted to any Person any right, license, or privilege that conflicts with this Agreement, (iv) the Licensor Technology is not being infringed and does not infringe the intellectual property or proprietary rights of any Person, (v) the Licensor Technology has not been disclosed to any Person other than the Company, (vi) Licensor has not received written notice of any judicial, administrative or other proceeding or claim pending, or to Licensor’s knowledge threatened, against or otherwise affecting or relating to any of the Licensor Technology or which calls into question (expressly or by implication) the right of the Company to exercise any rights granted to it hereunder, (vii) in no event shall the Company be obligated to pay any fees or any amounts to Licensor or any Person for the assignment, use or exploitation of any Technology, (viii) upon the request of the Company, Licensor shall, at its own expense, take any and all actions necessary and/or advisable to protect and defend all rights in the Licensor Technology and (ix) the Licensor is an accredited investor as such term is defined under the Securities Act of 1933, as amended.

6. INDEMNIFICATION; LIMITATION OF LIABILITY

6.1 IN NO EVENT SHALL THE COMPANY, ITS SUBSIDIARIES AND AFFILIATES, OR THEIR RESPECTIVE DIRECTORS, OFFICERS, MEMBERS (OTHER THAN LICENSOR), EMPLOYEES, AGENTS, TRANSFEREES, SUCCESSORS AND ASSIGNS BE LIABLE TO LICENSOR FOR INCIDENTAL, PUNITIVE, INDIRECT, CONSEQUENTIAL OR SPECIAL DAMAGES, INCLUDING LOST PROFITS, WHETHER FORESEEABLE OR UNFORESEEABLE (AND WHETHER OR NOT ADVISED OF THE POSSIBILITY THEREOF), ARISING FROM ANY CAUSE OF ACTION WHATSOEVER, INCLUDING CONTRACT, WARRANTY, STRICT LIABILITY, OR NEGLIGENCE, ARISING OUT OF OR RELATED TO THIS AGREEMENT.

7. INFRINGEMENT

7.1 In the event that Licensor or the Company learns of any claim or act of any Person that constitutes or may constitute or result in an infringement or other violation of any Technology in the Fields of Use, such party shall promptly notify the other party thereof in writing and provide any available evidence of such infringement.

7.2 Licensor shall have the first right, at its own expense, to institute and prosecute all actions, suits or proceedings against any violation of Licensor Technology in the Fields of Use. The Company shall keep any recovery or damages for infringement derived from any such actions, suits or proceedings. The Company shall reimburse Licensor for reasonable out-of-pocket costs and expenses actually incurred by Licensor in connection with the initiation and prosecution of any such action, suit and proceeding, provided that all such costs and expenses were preapproved by the Company in writing prior to Licensor incurring such costs and expenses. Licensor shall provide any and all documentation requested by the Company in connection with any reimbursable costs and expenses incurred. The Company shall determine the reasonableness of the expenses incurred in its sole discretion.

7.3 If Licensor fails to initiate proceedings to prevent, or otherwise respond to any such violation of Licensor Technology within six (6) months of learning of such violation or receipt of written notice of such violation from the Company, the Company shall have the right upon written notice to Licensor to initiate and/or prosecute, at Licensor’s expense, such actions, suits or proceedings as the Company may deem necessary or appropriate to prevent or terminate such infringement or to recover damages in respect thereof. The Company shall keep any recovery or damages for infringement derived from any such actions, suits or proceedings.

7.4 Licensor shall, at the request of the Company and at Licensor’s expense, render all reasonable assistance, including without limitation joining in as a party, providing testimony and all information and documents in its possession, custody and/or control and any witnesses, as is or may be required in the conduct of any actions, suits or proceedings referred to in this Section 7.

7.5 Notwithstanding anything contained in this Agreement, under no circumstances shall Licensor enter into any settlement or agreement or make any admissions that would affect the rights of the Company with respect to any Technology without first obtaining the written consent of the Company.

8. BANKRUPTCY

The parties hereto agree that the rights to the Technology licensed by Licensor to the Company under this Agreement constitute “intellectual property” as defined in the United States Bankruptcy Code. In the event Licensor voluntarily or involuntarily becomes subject to the protection of the United States Bankruptcy Code and Licensor or the trustee in bankruptcy rejects this Agreement under the United States Bankruptcy Code (“Triggering Event”), then the Company shall have the right to: (a) treat this Agreement as terminated; or (b) retain the Company’s rights under this Agreement, specifically including, without limitation, the right to exercise its rights granted herein to the Technology. Failure by the Company to assert its right to retain its benefits to the intellectual property embodied in the Technology shall not be construed by the courts as a termination of such contract by the Company. Any attempted assignment of this Agreement by Licensor or the trustee in bankruptcy to any Person shall be subject to such Person providing “adequate assurance of future performance” to the Company.

9. GENERAL

9.1 Governing Law. This Agreement is made pursuant to and shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to the conflict of laws principles thereof. The venue for any suit or proceeding brought as a result of this Agreement shall be the appropriate federal or state court in Clark County, Nevada.

9.2 Notices. 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, or (b) 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 to the addresses set forth on the signature page.

9.3 Assignment. Subject to Section 2.1 herein, neither this Agreement nor the license granted or the parties’ respective obligations hereunder may be assigned, delegated, sold or transferred by either party hereto, in whole or in part, without the prior written consent of the other party (any attempt to do so shall be void), which shall not be unreasonably withheld. Licensor further agrees that Licensor’s right, title and interest in and to the Licensor Technology may be not be assigned, delegated, sold or transferred by Licensor, in whole or in part, without the prior written consent of the Company.

9.4 Survival. The terms and conditions set forth in Sections 3, 5, 6 and 7 shall survive any termination of this Agreement.

9.5 Miscellaneous. This Agreement constitutes the entire agreement between the parties hereto concerning the subject matter hereof and supersedes all prior negotiations, understandings, undertakings or agreements (whether oral or written) between the parties. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective transferees, successors and permitted assigns. The waiver or failure of a party hereto to require performance of any provision of this Agreement shall not be construed as a waiver of that party’s right to insist on performance of that same provision, or any other provision, at some other time. Any amendment or modification of this Agreement, or any waiver of its terms, in order to be binding, must be written and signed by both Licensor and the Company. If any provision of this Agreement shall be deemed invalid or unenforceable, in whole or in part, or as applied to any circumstance, then such provision shall be deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from this Agreement, as the case may require, and this Agreement shall then be construed and enforced to the maximum extent permitted by law. This Agreement may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute one and the same agreement, but no counterpart shall be binding unless an identical counterpart shall have been executed and delivered by each of the other parties hereto.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

 

GBT TECHNOLOGIES, INC.

By: ___________________

Name: Mansour Khatib, CEO

GBT TOKENIZE CORP

By: ___________________

Name: Michael D. Murray, CEO

TREND INNOVATIONS HOLDING, INC.

By: ___________________

Name: Natalija Tunevic, CEO

 

 

 

 

 

 

 

EXHBIT A – DESIGN DOCUMENT – An Integral Part of TECHNOLOGY LICENSE AGREEMENT

 

 

 

ASSET PURCHASE AGREEMENT

 

THIS AGREEMENT ("Agreement") made this 3 day of April, 2023, by and between Treasure Drive Ltd., a British Virgin Island corporation ("Seller"), and Trend Innovations Holding, Inc., a Nevada corporation (“Company” or "Purchaser" or “Buyer”).

In consideration of the mutual covenants contained herein, it is agreed by and between the parties as follows:

1.Seller shall sell and Purchaser shall purchase, free and clear of all liens, encumbrances and liabilities, the assets of Seller's business, which are more fully described and enumerated in Schedule A, which is attached and by this reference made a part hereof, which in essence includes certain source codes and pending patent applications that have applications in a variety of areas including creating systems and methods of facilitating digital rating and secured sales of digital works as well as core virtual reality platforms known as digital auction systems, rating and secure sales via open bid auctions including all patents issued, pending or filed which Seller owned by assignment from third parties (the "Assets"). The parties intend that the transaction under this Agreement qualify as a tax-free reorganization under Section 368 of the Internal Revenue Code of 1986. A Detailed description of the Assets attached as Exhibit A and consist as integral part of this agreement.

2. Purchaser shall issue to the Seller 5,000 Series A Preferred Shares of Buyer with face value of $5,000 per share which are convertible into common stock of Buyer at 5% discount of Buyer’s 10-day average closing price at the time of conversion. The conversion will include a 4.99% beneficial owner limitation (the “Preferred Consideration” or “Consideration”), which Preferred Consideration will be delivered upon the Buyer filing a Certificate of Amendment to its Certificate of Incorporation.

Further conditions to the Preferred Consideration

(a)Lock-Up. During the nine month period following the Closing (“Lock-Up Term”), without the prior approval of the Buyer, the Sellers shall not, and shall cause its affiliates not to, converte, pledge, sale, contract to sell, sale of any option or contract to purchase, purchase of any option or contract to sell, grant of any option, right or warrant for the sale of, or other disposition of or transfer the Consideration or the shares of common stock issuable upon conversion of the Consideration (the “Buyer Stock”), or any equivalents, including, without limitation, any “short sale” or similar arrangement, or swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Consideration or the Buyer Stock, whether any such swap or transaction is to be settled by delivery of securities, in cash or otherwise, including, without limitation, any “short sale” or similar arrangement.

(b)Effect of Failure by Buyer to Obtain Nasdaq Listing During the Lock Up Term. If the Buyer is unable to up-list to Nasdaq either through a business combination or otherwise, upon expiration of the Lock Up Term, if requested by the Seller within three (3) business days of the expiration of the Lock-Up Term, the Buyer and the Seller shall take the following actions:

 

(c)the Seller shall return the Consideration to the Buyer;

 

(d)the Buyer shall cancel the Consideration on the books and records of the Buyer;

 

(e)the Buyer shall return the Stock to the Sellers;

 

(f)the Buyer and the Seller shall enter into an agreement terminating this Agreement and all ancillary agreements providing that such agreements are void and of no further force and effect (except as may be specified therein) and setting forth the rights and obligations of the parties post-termination, if any;

 

(g)each party shall be responsible for their own liabilities in connection with any unwinding under this section; and

 

(h)the Buyer and the Seller shall deliver such other agreements, certificates, instruments and documents as may be reasonably necessary and shall cooperate in good faith with one another in order to unwind the transactions contemplated by this Agreement and any ancillary agreements; provided that each party shall, except as otherwise set forth herein, bear its own costs to unwind the transactions contemplated by this Agreement and the ancillary agreements (including, for the avoidance of doubt, with respect to any regulatory filings required to be made with any governmental body).

 

3. Seller shall sell, assign, transfer, and convey to Purchaser the Assets, free of all liabilities.

4. All equipment included in the sale shall be in good working condition at the time of sale. Purchaser shall accept the Assets "as is" without warranty as to their condition and operation.

5. The actions to be taken by the parties hereto to close the transaction as provided shall take place on or before April 1, 2023 ("Closing Date") at Purchaser’s corporate office, hereinafter referred to as the ("Closing"). At the Closing, Seller shall deliver to Purchaser possession of the Assets, and good and sufficient instruments of transfer, conveying and transferring the Assets to Purchaser. Such delivery shall be made against payment and delivery to the Seller of the price as set forth herein above. The instruments of transfer shall contain covenants and warranties that Seller has good and marketable title in and to the Assets. The parties will attempt that Closing will take place before the Corporate Actions being effective, as it was fled as definitive already.

6. Seller covenants, warrants and represents:

(a) It is not presently involved in any activity or outstanding dispute with any taxing authority as to the amount of any taxes due, nor has it received any notice of any deficiency, credit or other indication of deficiency from any taxing authority.

(b) It is the owner of and has good and marketable title to all of the Assets enumerated in the attached Schedule A, free from all encumbrances. 

(c) Seller shall indemnify and hold harmless Purchaser from any and all claims of its creditors and such Assets shall transfer to Purchaser, free and clear of all liens and encumbrances.

All representations and warranties made by Seller shall survive the Closing.

7. Seller hereby assumes all risk of loss, damage or destruction resulting from fire or other casualty from the date hereof to the time of transfer of Assets and Closing.

8. This Agreement shall be binding upon the personal representatives, successors and assignees of the parties. This Agreement and any accompanying instruments and documents include the entire transaction between the parties and there are no representations, warranties, covenants or conditions, except those specified herein or in accompanying instruments and documents.

9. All covenants, warranties and representations herein shall survive this Agreement and the Closing Date.

10. This Agreement shall be governed in all respects by the laws of the State of California.

IN WITNESS WHEREOF, the parties hereto have set their hands and seals, the date and place first above written.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

TREASURE DRIVE LTD TREND INNOVATIONS HOLDING, INC.
   
By: ________________________

By: ________________________

 

Name: Mauricio Lara Name: Natalija Tunevic
Title: Chief Executive Officer Title: Chief Executive Officer
   
Address:

Address:

 

   
Treasure Drive LTD Trend Innovations Holding, Inc
c/o Mauricio Lara Attention: Nataljia Tunevic, CEO
Mill Mall Tower, 2nd Floor 44A Gedimino Avenue
Wickhams Cay 1 – PO Box 4406   

Vilnius Lithuania LT-01402 Lithuania

 

Road Town Tortola British Virgin Island  

 

 

 

 

 

 

 

 

 

 

SERVICES AGREEMENT

This SERVICES Agreement (this “Agreement”), entered into this 3 day of April 2023 (the “Effective Date”), sets forth the arrangement between Eletina Group, LLC, with an address located at 27673 N. Weeping Willow Dr., Valencia, CA 91354 (hereinafter referred to as “Consultant”), and Trend Innovations Holding, Inc., a Nevada corporation, with its principal place of business at 44A Gedimino avenue, Vilnius Lithuania LT, 01402 Lithuania (hereinafter referred to as “Company”), with respect to compensation to which Consultant may become entitled under the terms and conditions set forth in this Agreement.

 

W I T N E S S E T H:

WHEREAS, the Company is developing and operating a platform for a system and method of facilitating digital rating and secured sales of digital works as well as core virtual reality platforms known as digital auction systems, rating and secure sales via open bid auctions;

WHEREAS, Consultant is a highly experienced entrepreneur, technologist, consultant, business strategist, and has senior-level experience in privately and publicly held companies, is well connected within the technology industry in Europe and the United States and is experienced in the financing field and familiar with the steps necessary to assist a publicly held company in obtaining financing through private placement offering(s);

WHEREAS, the Company has asked the Consultant to assist in providing the services set forth on Appendix A attached hereto (collectively, the "Services");

WHEREAS, the Consultant has extensive knowledge and experience with respect to the Services and the Consultant has agreed to provide the Services to the Company; and

NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, the parties agree as follows:

1.                               Purpose; Services. In consultation with the management of the Company, the Consultant shall provide the Services. In performing the Services, Consultant shall report to such person as may, from time to time, be designated by the Company’s chief executive officer or such other senior management. Consultant shall not have any authority to execute contracts or make any commitments on behalf of the Company. Consultant accepts the engagement provided in this Agreement and agrees to perform the Services in a professional manner, diligently, in good faith, in a manner consistent with the best interests of the Company. Consultant shall not be required to devote his full time and attention to the Services. The Company recognizes that Consultant has other business activities to which it devotes a significant amount of his time.

2.                               Compensation; Expenses. In consideration for providing the Services, the Company shall pay Consultant $75,000 per quarter in shares of common stock (the “Stock”) to be issued within five days of the first day of quarter during the Term (ie January 1, April 1, July 1 and October 1). The Stock shall be fully earned upon issuance. The number of shares of Stock to be issued will be determined by dividing the quarterly fee of $75,000 by the Company’s ten (10) day VWAP, which shall at no point be less than $0.10 per share. The Company shall reimburse Consultant for any expenses incurred on behalf of the Company that are pre-approved in writing by the CEO or CFO of the Company, which such pre-approval may be sent by electronic mail. The Consultant represents that it is an accredited investor as such term is defined under the Securities Act of 1933, as amended (the “Act”). Consultant acknowledges that the Stock will not be registered under the Act, or the securities laws of any state (the “State Acts”), in reliance upon an exemption from the registration requirements of the Act and the State Acts; that absent an exemption from registration contained in the Act and the State Acts, the Stock, would require registration; and that the Company's reliance upon such exemptions is based, in material part, upon the undersigned's representations, warranties, and agreements contained in this Agreement. The Consultant understands that the certificates for the Stock will be affixed with a restrictive legend.

3.       Independent Contractor Relationship. This Agreement is intended to create an independent contractor relationship between Consultant and Company.

(a)       No Taxes Withheld from Compensation. Company will not withhold any taxes from any compensation paid to Consultant according to this Agreement. It is acknowledged and agreed by the parties that Company has not, is not, and shall not be obligated to make, and that it is the sole responsibility of Consultant to make, in connection with compensation paid to Consultant according to this Agreement, all periodic filings and payments required to be made in connection with any withholding taxes, FICA taxes, Federal unemployment taxes, and any other federal, state or local taxes, payments or filings required to be paid, made or maintained.

(b)       Consultant Controls Time and Effort. It is agreed that Company is interested only in the ultimate results of Consultant’s activities pursuant to this Agreement, and that Consultant shall have exclusive control over the time and effort invested by Consultant pursuant to this Agreement, and the manner and means of Consultant’s performance under this Agreement.

(c)       Independence from Company. The parties further agree that Consultant shall have no control or supervision over Company’s employees, officers, directors, representatives or affiliates. Consultant will not represent that it is an employee of Company. Consultant shall at all times represent himself and be construed as independent of Company. Consultant shall not, under any circumstances, be deemed to be a servant or employee of Company for any purpose, including for Federal tax purposes. Consultant’s relationship to Company is that of an independent contractor, and nothing in this Agreement shall constitute this Agreement as a joint venture or partnership between Consultant and Company. Consultant shall have no authority to bind Company or any of its employees, officers, directors, representatives or affiliates by any promise or representation, oral or otherwise, unless specifically authorized in a writing bearing an authorized signature of a Company officer, director or representative. All discussions and negotiations with any source for funding and/or financing shall be conducted by Company.

4.       Confidential Information. Consultant acknowledges that, pursuant to this Agreement, Consultant may be given access to or may become acquainted with certain information, trade secrets or both, of the other party, including but not limited to, confidential information and trade secrets regarding computer programs, designs, skills, patents, pending patents, copyrights, procedures, methods, documentation, plans, drawings, schematics, facilities, customers, policies, marketing, pricing, customer lists and other information and know-how all relating to or useful to the Company (collectively, the “Confidential Information") and the exclusive property of the Company.

5.       Nondisclosure of Confidential Information. During the term of this Agreement and for a period of one year thereafter, Consultant shall only disclose the Confidential Information in connection with its performance pursuant to this Agreement, subject to the terms and conditions of this Agreement, and otherwise, the Consultant shall not in any manner, either directly or indirectly, divulge, disclose or communicate to any person or entity, any of the Confidential Information. Consultant expressly agree that the Confidential Information affects the successful and effective conduct of the Company’s business and its good will, and that any breach of the terms of this Section by the Consultant is a breach of this Agreement. Consultant acknowledges that the Company files reports with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, and the Company’s shares of common stock are traded on the Nasdaq. Consultant agrees that it will not engage in any transaction in the Company’s securities if Consultant is in possession of material non-public information.

6.       Exceptions to Nondisclosure. Notwithstanding anything to the contrary contained in this Agreement, the Consultant shall not be prohibited from disclosing to third parties, or using without the prior written consent of the Company, information that (a) was, on the date of this Agreement, generally known to the public, (b) is as of the date of this Agreement known to the Consultant, as evidenced by written records in the possession of Consultant, (c) is subsequently disclosed to Consultant by a third party who is in lawful possession of such information and is not under an obligation of confidence, (d) is disclosed by the Company to third parties generally without restriction on use and disclosure, or (e) is required to be disclosed by law or a final order of a court or other governmental agency or authority of competent jurisdiction, provided, however, reasonable notice prior to any disclosure as required by applicable law or court process shall be given to the Company which would allow the Company sufficient time to attempt to obtain injunctive relief in respect to such disclosure.

7.       Non-Competition; Non-Solicitation; Inventions. Commencing on the date hereof and ending on the date 12 months following the termination of this Agreement, Consultant covenants and agrees that it and its Affiliates will not, without the Company’s prior written consent undertake any new consulting arrangement with any entity that which Consultant has reason to believe directly competes with the Company’s electric truck or drone delivery business.

In addition, commencing on the date hereof and ending on the date 12 months following the termination of this Agreement, Consultant covenants solicit or divert any business or any customer from the Company or its Affiliates or assist any person, firm, corporation or other entity in doing so or attempting to do so or cause or seek to cause any person, firm or corporation to refrain from dealing or doing business with the Company or its Affiliates or assist any person, firm, corporation or other entity in doing so; hire, solicit or divert from the Company or its Affiliates any of their respective employees, vendors, consultants or agents who are engaged by the Company or its affiliates or have been engaged during the Term, nor assist any person, firm, corporation or other entity in doing so.

As used in this Agreement, the term “Affiliates” shall mean any entity controlling, controlled by or under the common control of the Company. For the purpose of this Agreement, “control” shall mean the direct or indirect ownership of thirty (30%) percent or more of the outstanding shares or other voting rights of an entity or possession, directly or indirectly, of the power to direct or cause the direction of management and policies of an entity.

Consultant will promptly disclose in confidence to the Company all inventions, improvements, designs, original works of authorship, formulas, processes, compositions of matter, computer software programs, databases, mask works and trade secrets (the “Inventions”) that Consultant makes or conceives or first reduce to practice or create, either alone or jointly with others, during the period of Consultant’s engagement, whether or not in the course of the Services, and whether or not such Inventions are patentable, copyrightable or protectable as trade secrets.

Consultant acknowledges and agrees that any copyrightable works prepared by Consultant within the scope of its engagement, including for the avoidance of doubt any such works prepared prior to the date hereof are “works made for hire” under the Copyright Law of the United States and that the Company will be considered the author and owner of such copyrightable works.

Consultant agrees that all Inventions that (i) have been or are developed using equipment, supplies, facilities, Confidential Information, or trade secrets of the Company, (ii) result from work performed by Consultant for the Company, or (iii) relate to the Company’s business or current or anticipated research and development (the “Assigned Inventions”), will be the sole and exclusive property of the Company and are hereby irrevocably assigned by Consultant to the Company.

8.       Term. The term of this Agreement commences on the Effective Date and shall continue thereafter through December 31, 2024 (the “Term”).

9.       Notice. Any notice required under this Agreement shall be deemed duly delivered (and shall be deemed to have been duly received if so given), if personally delivered, sent by a reputable courier service, or mailed by registered or certified mail, postage prepaid, return receipt requested, addressed to the parties at the addresses set forth above or to such other address as any party may have furnished to the other in writing in accordance with this Section.

10.       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 located in Las Vegas, Nevada.

11.       Severability. If the law does not allow a provision of this Agreement to be enforced, such unenforceable provision shall be amended to become enforceable and reflect the intent of the parties, and the rest of the provisions of this Agreement shall remain in effect.

12.       Waiver. The failure of any party, in any instance, to insist upon strict enforcement of the provisions of this Agreement shall not be construed to be a waiver or relinquishment of enforcement in the future, and the terms of this Agreement shall continue to remain in full force and effect.

13.       Amendment. This Agreement may only be amended or modified in a writing signed by both of the parties and referring to this Agreement.

14.       Entire Agreement. This Agreement constitutes the entire agreement and final understanding of the parties with respect to the subject matter of this Agreement and supersedes and terminates all prior and/or contemporaneous understandings and/or discussions between the parties, whether written or verbal, express or implied, relating in any way to the subject matter of this Agreement.

15.       Execution in Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one in the same instrument. Confirmation of execution by electronic transmission of a facsimile signature shall be binding on the confirming party.

SIGNING THIS AGREEMENT INDICATES ACCEPTANCE OF THE TERMS OF THIS AGREEMENT.


Trend Innovations Holding, Inc.

 

 

By:

Name: Nataljia Tunevic

Title: CEO

 

Eletina Group, LLC

 

 

By:

Name: Yuriy Shirniyan

Title: Manager

 

 

 

Appendix A

 

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.

 

 

Introduction

It has been almost five years since Avant AI was introduced by GBT Tokenize. Since then, AI technologies have gained vast interest in wide variety of topics. Artificial Intelligence (AI) is a rapidly growing field that has the potential to transform the world as we know it. AI is about creating intelligent machines that can perform tasks that would normally require human intelligence, such as recognizing patterns, making predictions, and solving problems. The goal of AI is to create systems that can learn from experience and improve their performance over time, just like humans do.

 

The field of Artificial Intelligence (AI) is growing aggressively. It’s influencing our lives and societies more than ever before and will continue to do so at a breathtaking pace. Areas of application are diverse, the possibilities far-reaching if not limitless. Thanks to recent improvements in hardware and software, many AI algorithms surpass human experts' capacities. Algorithms will soon start optimizing themselves to an ever greater degree and may one day attain superhuman levels of intelligence.

 

Our species dominate the planet and all other species on it because we have the highest intelligence. Scientists believe that by the end of our century, AI will be to humans what we now are to chimpanzees. Moreover, AI may one day develop phenomenal states such as self-consciousness, subjective preferences, and the capacity for suffering. This will confront us with new challenges both in and beyond the realm of science.

 

AI ranges from simple search algorithms to machines capable of true thinking. In certain domain-specific areas, AI has reached and even overtaken human abilities. Machines are beating chess grandmasters, quiz show champs, and poker greats. The history of AI dates back to the 1950s, when researchers first began exploring the idea of creating machines that could think like humans. Over the years, AI has gone through several phases of development, from early successes in narrow domains like playing chess, to today's systems that can perform a wide range of tasks, such as speech recognition, natural language processing, and computer vision.

 

It’s not just fun and games. Artificial neural networks approach human levels in recognizing handwritten Chinese characters. They vie with human experts in diagnosing cancer and other illnesses. We are getting closer to creating a general intelligence which at least in principle can solve problems of all sorts, and do so independently.

 

Today’s AI is more a form of “cognitive computing,” which is true machine learning. Cognitive computing was born from the fusion of cognitive science (the study of the human brain) and computer science. It’s based on self-learning systems that use machine-learning techniques to perform specific, human-like tasks in an intelligent way. IBM describes it as “Systems that learn at scale, reason with purpose and interact with humans naturally.” According to Big Blue, while cognitive computing shares many attributes with AI, it differs by the complex interplay of disparate components, each of which comprises its own mature disciplines. The sheer volume of data being generated in the world is creating cognitive overload for us. These systems excel at gathering data and making it useful.

 

One of the key factors driving the growth of AI is the availability of large amounts of data and computing power. AI algorithms rely on data to learn and improve, and the explosion of data generated by the Internet and other sources has provided AI researchers with the resources they need to create more powerful and sophisticated systems. The advancements in computing power, particularly in the area of parallel processing, have also made it possible to train and run large AI models that can perform complex tasks.

There are several different types of AI, including narrow or weak AI, which is designed for a specific task, and general or strong AI, which is capable of performing a wide range of tasks like a human. The most common form of AI today is narrow AI, which is used in applications like image and speech recognition, recommendation systems, and self-driving cars. It is an application specific technology that aims to provide an intelligent solution in a particular domain.

Despite its many benefits, AI also raises important ethical and societal questions. For example, as AI systems become more capable, there are concerns about the potential for job displacement, as well as the need for new regulations and policies to ensure that AI is used in responsible and ethical ways. Additionally, as AI systems become more advanced, there are concerns about the possibility of creating systems that are beyond human control, and the potential for AI to be used for malicious purposes.

 
 

So here we are at a new age. But a word of caution is in order. Almost all progress poses risks and that’s certainly the case with the bold new age of AI. Some of the problems will be vexing ethical ones. How will AI affect individual lives and whole civilizations around the world? Studies conclude that even though dire scenarios are unlikely, maybe even highly so, the potential for serious damage must be taken seriously. We at Tokenize certainly do.

With that in mind, let’s look at what lies ahead and what role Tokenize will play in the AI era.

What is Avant!-AI?

Avant!-AI is a machine learning platform that includes supervised and unsupervised learning sub-systems. Not like other similar models, it learns on its own and constantly enhancing its information database. Avant! can understand unstructured data, which is how most data exists today. Furthermore, most data comes from a wide range of sources – professional articles, research papers, blogs, and human’s input. Avant! relies on natural language, and obeys the rules of grammar. Avant! breaks down a sentence grammatically and structurally, then extracts its meaning. When Avant! works on a field, it searches for thousands of articles in this domain. Next, Avant! is narrowing down to only few hundreds documents that are topic related. Finally, it will conclude the best answer and deliver it. The process is governed by sets of neural network algorithms that work cognitively to learn the topic and respond accordingly.

Avant! is trained to respond to questions about highly-complex situations and quickly provide a range of responses and recommendations, all backed by evidence. Avant! is using statistical modeling and scores a viable solution then estimates assurance. Avant! improves its expertise by learning from its own experience. Over time, it gains robust knowledge learning from experience and from its own successes and failures, exactly as humans do. Avant! gets wiser and knowledgeable over time.

When a query is executed Avant!, cognitive computing relies on its own vast knowledge, the available human data, and the query conditions. A huge amount of data is searched, both structured and unstructured. Then an analysis is performed. Then elimination process takes place to sort out the best answer, logical validation and finally answer’s delivery.

For the user Avant! provides almost instantaneous response. It rapidly processing large data and by using its cognitive computing capabilities provides efficient answer within seconds. It includes neural networks model that is trained with data that Avant! searches on the internet to create large volume of machine learning text. Avant! contains a BERT (Bidirectional Encoder Representations from Transformers) system which is a machine learning framework for natural language processing.

Once asked for a question, Avant! searches the internet, builds large dataset of information about the topic, and performing cross reference analysis to determine which data source is the most accurate and credible. For example: if asked about what the fastest car in the world is, Avant! will thoroughly search the internet, find all relevant information, cross reference all data sources and reach a conclusion which data is the most accurate, authentic, and credible. Think of Avant! as an AI assistant such as Siri or Alexa, only on a much larger scale. Instead of asking Alexa to play your favorite song or having Siri type out your text, you can ask Avant! to provide information about any topic in less than a minute. All that the user needs to do is provide a prompt, such as, “What is a ship?” Or ”Who was Mahatma Gandhi?” As long as the prompt is clear and specific, Avant! understands its meaning and can answer just about anything you ask it to.

Since its release GBT Tokenize used Avant! within other derivative applications. The most recent one is Hippocrates (www.hmd.care), a first line medical advice and tips. The Hippocrates system is trained with few medical text books and some of the CDC information and is a POC, intended for demonstration purposes only. Through a combination of technology and expertise, Hippocrates provides medicine-leading information, analytics, and AI solutions to assist individuals, and health professionals with medical questions, first line advice and possible treatments. Driven by Avant!-AI machine learning technology, Hippocrates focuses on both preventative and primary care to provide first line of health related advice and recommendations.

 

Users may provide symptoms, ask health related questions, and describe conditions in order to get a diagnosis advise, including known medication and treatments. Hippocrates is an AI consultant based on personal medical history and common medical knowledge. The system is a health companion that can assess users health based on an indicated symptoms using Avant!-AI Technology. In addition Hippocrates provides and ongoing personal health monitoring with the capability to electronically share the information with physicians, clinics, and hospitals. The system includes built-in telemedicine capabilities to assist users around the world.

This part is done by Avant! supervised learning system. Avant! also includes an unsupervised learning system which works entirely in a unique way. But before getting into the specifics, it’s helpful to first establish a baseline on what are supervised and unsupervised machine learning are and their differences.

Supervises vs. Unsupervised Learning

Machine-learning algorithms are either “supervised” or “unsupervised.” The distinction is drawn from how the learner classifies data.

In supervised algorithms, classes are a finite set, determined by a human. The machine learner’s task is to search for patterns then construct mathematical models. These are then evaluated for predictive capacity in relation to measures of variance in the data. Examples of supervised learning techniques include Naive Bayes and decision-tree induction. Supervised learning algorithms are commonly used for tasks such as regression and classification. In regression, the goal is to predict a continuous output variable given a set of input variables. For example, a supervised learning algorithm could be used to predict the price of a car based on its model, capabilities, and other features. In classification, the goal is to assign a categorical label to a given input. For example, a supervised learning algorithm could be used to classify emails as either spam or not spam.

A good example for a supervised learning is a chatbot that is based on a supervised machine learning model. The model was trained on a massive amount of text data with corresponding labels, such as the type of text (e.g. news article, fiction, poetry), the style of writing (e.g. formal, informal), and the task being performed (e.g. translation, question answering). The algorithm uses this labeled data to learn patterns in the relationship between inputs and outputs, allowing it to generate human-like text for a variety of tasks, such as language translation, text summarization, and dialogue generation.

Unsupervised learners, by contrast, are not provided with classifications. In fact, the task is to develop classification labels. Unsupervised algorithms seek out similarity between pieces of data and determine whether they form a group, or “cluster.” In a way an unsupervised learning is the system’s capability to explore an un-organized data, and finding data patterns and logical connections on its own. An example of unsupervised machine learning would be a case where a medical clinic that wants to learn more about how to provide early detections of possible patient’s illnesses and addressing them promptly. It decides to implement an unsupervised machine learning analytics for its patient’s medical data. It was observed that patients who suffered from acute cough more often, tend to be at risk for pneumonia or those who suffered from specific rashes tend to develop a severe type of skin condition. The unsupervised learning system learned about this patient’s information on its own, found out the logical connections, and recommends running an additional medical tests for patients that are at risk, ensuring early detection and treatment.

 

Avant! includes Supervised & Unsupervised techniques

 

Supervised & Unsupervised known algorithms

Image Source: Wikimedia Commons

 
 

 

Avant! Supervised Learning example

 

Avant! Unsupervised Learning example

 
 

 

Summing up, supervised and unsupervised learning are two categories of machine learning technology that are used for different types of problems. Supervised learning is used for prediction tasks based on finite datasets, while unsupervised learning is used for discovering underlying structure in data and is self-sufficient in learning. Avant! includes both approaches, using their strengths, and choosing the right type of learning algorithm for a given problem according to the nature of the data and the problem at hand.

More Parameters = Better?

One thing to understand about AI models is how they use parameters to make predictions. The parameters of an AI model define the learning process and provide structure for the output. The number of parameters in an AI model has generally been used as a measure of performance. The more parameters, the more powerful, smooth, and predictable the model is.

 

In AI, The Scaling Hypothesis refers to the observation that the performance of deep neural networks tends to improve as the size of the network and the amount of training data increase. Specifically, the hypothesis suggests that performance scales sub-linearly with model size and linearly with training data size. This phenomenon has been observed in a wide range of deep learning applications, including computer vision, natural language processing, and speech recognition, and has led to the development of ever-larger and more complex neural networks to achieve state-of-the-art performance on various tasks.

 

Yet, the larger the number of parameters, the more expensive a model becomes to train and fine-tune due to the vast amounts of computational power required.

 

Plus, there are more factors than just the number of parameters that determine a model’s effectiveness. Despite model’s size, performance depends on many other factors. In short, bigger does not necessarily mean better.

 
 

 

 

 

 

GBT Tokenize is currently pursuing architectural enhancements for Avant!, such as a leaner model that focuses on qualitative improvements in algorithmic design and alignment. GBT Tokenize predicts that a sparse model can reduce computing costs through what's called conditional computation methodologies, i.e., not all parameters in the AI model will be firing all the time, which is similar to how neurons in the human brain operate.

 

Qualitative improvements in Avant! algorithmic design are expected to provide significant advancements to solve complex problems. Such improvements will result more efficient, accurate, reliable, and scalable algorithms than previous, known, industry standards approaches. GBT Tokenize plans to implement the following qualitative enhancements in Avant! algorithmic design addressing the next topics.

Proprietary architectures: new algorithms architectures, such as private deep neural networks, addressing natural language processing (NLP) and other arenas.

Optimization techniques: Developments in optimization algorithms, such as stochastic gradient descent, are predicted to significantly improved the training of Avant! deep neural networks, leading to state-of-the-art results.

Ensemble methods: Avant! currently combines multiple algorithms to improve performance, accuracy and reliability. GBT Tokenize plans to embed further proprietary techniques to increase its performance, usage model and interface.

 

Better human interaction (NLP)

Avant! is soon to be equipped with a better human interaction interface and Natural Language Processing (NLP) technology. As it includes pre-trained language models, it could be trained on massive amounts of text data and can then be fine-tuned for specific NLP tasks such as sentiment analysis, named entity recognition, and question answering. This means much easier, user-friendly, and natural human interactions. Users will be able to simply type his/hers questions in simple words, similar to interacting with another human.

Avant! is also equipped with Cross-lingual model that is planned to be pretrained with multiple languages. This will enable the capability of performing NLP tasks across different languages. In addition Avant! can work via transfer learning method, where its pretrained models are used as a starting point and fine-tuned on specific tasks, allowing for faster and more accurate results.

One of Avant! key capabilities is its multimodal NLP which combines text, image, and audio information to perform NLP tasks. These methodologies enable Avant! to process information from multiple sources, enhancing its multimedia and visual communication capabilities.

One of Avant! key strengths is its sentiment analysis. This feature enables Avant! to analyze and understand the sentiment of large amounts of text data, such as articles, reviews, social media posts, and similar. This can be useful for businesses to gauge customer satisfaction and identify areas for improvement. Another important feature is its content creation capability. Avant! NLP system can be used to automatically generate content, such as articles or product descriptions, which can be useful for businesses and content creators looking to produce large amounts of text quickly. In Avant! derivative system, Hippocrates, its NLP can be used to analyze patients' medical records and identify patterns. This information is used to identify onset symptoms, alerting users, ultimately helping improve patient outcomes and streamline healthcare.

Avant! NLP system efficiently addresses the challenges and limitations associated with processing and analyzing large amounts of text data, which can be time-consuming and resource-intensive. Another important aspect of Avant! NLP is its capability to handle complex and nuanced nature of language. Avant! NLP module can perform text classification, named entity recognition, question answering, and sentiment analysis, using deep neural network that uses the Transformer architecture for language modeling. It works in two training stages, pre-training, and fine-tuning. During the pre-training stage, it is trained on large amounts of unlabeled data by predicting masked words in a sentence and predicting the next sentence. This process is known as Masked Language Model (MLM) and Next Sentence Prediction (NSP). Avant! uses a multi-layer transformer encoder to learn contextualized representations of words. The fine-tuning stage involves training the pre-trained model on a smaller labeled dataset for specific NLP tasks. During fine-tuning, the last layer of the pre-trained model is replaced with a task-specific layer, and the whole model is fine-tuned on the labeled dataset.

Avant! can be trained with massive amount of text data. It can be provided using textual database or internet based extraction. It can analyze the sentiment of text with high accuracy. It can classify the polarity of text as positive, negative, or neutral, and identify entities in text such as person, organization, and location. In addition Avant! text classification feature can classify text into different categories such as spam or not spam, toxic or non-toxic, and news category.

 

 

Summing up, Avant! offers powerful technology in the NLP domain, which opens a whole world of possibilities to create exciting, intelligent applications in a variety of different industries and fields. GBT Tokenize plans to further enhance its NLP technology, making it user friendly, easy for use, mainly intuitive.

Highly secured

AI has become an essential technology in our daily lives and is susceptible to cyber risks. Avant! is a highly secured system protected in a few areas.

Data protection: Avant! Data is protected via AES standards to prevent unauthorized access, modification, or theft. In addition, GBT Tokenize implemented Honey encryption technology for brute force access attacks as another security layer to safeguard Avant! Data.

Multi-factor authentication: The system includes multi-factor authentication for access and usage.

Regular cyber updates: GBT Tokenize keeps its Avant! system up-to-date with the latest security patches, software updates, and security protocols.

Risk assessment module: Avant! includes a specific module for regularly conducting internal regular risk assessments to identify potential security threats, including used third-party modules, weaknesses, and vulnerabilities. Based on the results, it implements appropriate security measures to mitigate potential risks.

Avant! includes its own AI-based cybersecurity measures to safeguard its digital assets and operation from cyber threats. GBT Tokenize is constantly enhancing Avant! Cyber technology addresses the ever-growing challenges that require careful consideration.

Avant! AI proprietary Random Forest oriented algorithm

Avant! AI includes a proprietary Random Forest machine learning technique that is widely used in both academia and industry to solve complex classification and regression problems. It is an ensemble method that combines multiple decision trees to make accurate predictions. Random Forest Algorithm is known for its ability to handle high-dimensional data with a large number of features and has been successfully applied in various fields such as finance, healthcare, and marketing.

Random Forest Algorithm is a supervised learning technique that belongs to the family of tree-based algorithms. It uses an ensemble of decision trees, each trained on a randomly sampled subset of the training data and a randomly selected subset of features. The algorithm works by constructing a forest of decision trees, where each tree is built using a different subset of features and data points. During the training process, the algorithm selects a random subset of features to split the data at each node, thus reducing the correlation between the trees and improving the accuracy of the model.

The decision trees in the forest are built using a process called recursive partitioning, where the algorithm iteratively splits the data into smaller and smaller subsets based on the values of the input features until a stopping criterion is met. The stopping criterion can be a maximum tree depth, minimum number of samples per leaf node, or a minimum improvement in the splitting criterion.

The Random Forest Algorithm has several advantages over other machine learning techniques. One of the key advantages is its ability to handle high-dimensional data with a large number of features. The algorithm can select the most important features, reducing the computational cost and improving the accuracy of the model. Moreover, Random Forest Algorithm is less prone to overfitting, which is a common problem in other machine learning algorithms.

Another advantage of Random Forest Algorithm is its ability to handle missing data and outliers. The algorithm can make accurate predictions even when some data points are missing or when the data contains outliers. This is because the algorithm uses multiple trees, and the final prediction is based on the majority vote of the trees, making the algorithm more robust to outliers and missing data.

Summing up, the Random Forest Algorithm is a powerful machine learning technique that has been successfully applied in various fields. It is an ensemble method that combines multiple decision trees to make accurate predictions. The algorithm can handle high-dimensional data, missing data, and outliers, making it a robust and reliable machine learning technique. Its ability to improve the model’s accurate, and reducing the computational cost, makes it a popular choice for solving complex classification and regression problems.

 
 

Avant! proprietary Random Forest algorithm

 

 

Avant! AI proprietary RNN

Avant! includes a series of Recurrent Neural Networks that are used for time-based problems, image captioning, and NLP processing. Recurrent Neural Networks (RNNs) are a type of neural network that is widely used for processing sequential data such as time series, natural language, and speech. Avant! RNNs are designed to process sequential data by using feedback loops to preserve information across time steps. Their architecture consists of a series of cells that are connected to each other through recurrent connections. Each cell takes an input and its previous state as input and produces a new state and output. The output of the current cell is fed as input to the next cell, and the process continues until the end of the sequence. There are different types of RNN cells, such as Simple RNN cells, Gated Recurrent Unit (GRU) cells, and Long Short-Term Memory (LSTM) cells. Avant! includes LSTM type cells as they can store long-term dependencies in the data and prevent the vanishing gradient problem. The RNNs training is done using backpropagation through time (BPTT) algorithm. BPTT is a variant of backpropagation that is used to update the weights of the network based on the error at each time step. The error at each time step is computed by comparing the output of the network with the ground truth output. During training, the weights of the network are updated to minimize the loss function. The loss function measures the difference between the predicted output and the ground truth output. The goal of training is to minimize the loss function and improve the accuracy of the network.

 

Typical RNN (Recurrent Neural Network)

Image Source: Wikimedia Commons

 

 

 
 

Avant! RNNs includes a proprietary, self-tuning function (T) for the hidden layers to improve the output of the model. At any given time, the hidden layer input is fine-tuned by the previous one. The output at any given time is fetched back to the network and the self-tuned function dramatically increasing the output’s accuracy. Avant! Recurrent Neural Networks standardizes an additional self-tuning functions during each propagation so that the next hidden layer will produce more accurate outcome.

They RNNs share parameters across each layer of the network including self-tuning. The feedforward networks weights are improved across each node as each hidden layer already includes higher accuracy. The weights are adjusted through the process of backpropagation and gradient descent to facilitate reinforcement learning. Avant! uses RNNs as part of a model to generate descriptions for unlabeled images and graphics.

 

 

Avant! RNNs include hidden layers self-tuning function

 

 

Avant! CNN

Avant! series of CNNs (Convolutional Neural Networks) are used for image and video processing by using convolutional layers that can detect object’s features such as edges, textures, and shapes. Avant! CNNs architecture consists of three main types of layers: convolutional layers, pooling layers, and fully connected layers.

1. The convolutional layers apply a filter to the input image and produce a feature map that highlights the presence of local features.

2. Pooling layers reduce the size of the feature map by down-sampling it’s using operations such as max pooling or average pooling.

3. Fully connected layers connect all the neurons from the previous layer to the current layer and produce the final output.

Avant! CNNs are trained using a typical backpropagation algorithm, which updates the weights of the network based on the error at each layer. During training, the weights of the network are updated to minimize the loss function. The loss function measures the difference between the predicted output and the ground truth output. The weights of the network are updated using stochastic gradient descent (SGD) or one of its variants. These optimization algorithms use the gradients of the loss function with respect to the weights to update the weights and improve the accuracy of the network.

Avant! CNNs are used for image classification, pattern recognition, object detection, and human face recognition. The technology can be further expand to classify images into different categories for example animals, vehicles, objects of interest, and surroundings. This is useful for applications such as autonomous vehicles, robotics, surveillance, and medical diagnostics. Particularly in the medical imaging analysis field Avant! CNNs can be used to analyze medical images such as MRI and CT scans.

The following is an example of a typical image recognition via CNN analysis. A feature map is produced, presenting the object’s local features. The CNN analyze the image’s input, and distinguishes its objects based on color planes, identifying various colors spaces. It also measures the image dimensions. The colors are identified according to their characteristics, for example RGB, CMYK, Grayscale, and more. The convolution operation obtains all the image’s high-level features like edges, shape and texture. The next layer performs a low-level operations, such as color and gradient orientation. This architecture evolves to a new level that includes more layers to identify the object’s attributes.

 

A typical CNN image recognition

Image Source: Wikimedia Commons

 

Avant! AI includes a private derivative set of CNNs which introduce a faster, highly accurate images classifications and analysis. The system consists of additional self-tuning layers that are used for learning of the non-linear combinations of the abstract level structures. The new layer level analyzes the output of the convolutional layers providing a feedback, as a fine tuning for the learning non-linear functions. The tuning function process the image using a private perceptron algorithm, creating a vector table. The new layer level entirely relies on the image complexities, dedicated to the objective of accurately capturing the image’s details, enabling higher computational power. The results are faster processing and higher accuracy for images, videos, and graphics oriented data.

 

Avant! CNN image recognition

 

Avant! AI, an intelligent chat companion

Avant! AI is an Artificial Intelligence chat agent that uses natural language processing (NLP) and machine learning algorithms to simulate human-like conversations with users. It uses machine learning algorithms to learn from user interactions and improve its responses over time. Avant! adapts to user behavior and personalizes its responses, creating more appealing user interactions. It includes speech recognition technology to understand and interpret spoken language. This feature allows users to interact with Avant! using their voice, making the experience more natural and intuitive.

Avant! is also equipped with context-understanding algorithms to comprehend conversations. Learning from its experience and analyzing previous interactions can better understand the user's intentions and preferences, providing more relevant responses. It examines the tone and sentiment of user messages to detect when a user is unhappy or frustrated and responds appropriately. Its cognitive capabilities enable Avant! to become, over time, a personal, tailored assistant and companion.

 

 
 

Avant! can design Integrated Circuits (ICs)

The field of microchip design has seen significant advancements in recent years, with artificial intelligence (AI) emerging as a key player in the process. AI is revolutionizing the way microchips are designed, tested, and optimized, leading to faster and more efficient chip designs. Traditionally, microchip design has been a time-consuming and labor-intensive process. Designers would spend hours manually tweaking the design parameters to achieve the desired performance metrics. This process was often error-prone, leading to designs that were suboptimal in terms of power consumption, speed, and other key parameters.

Avant! AI has the capability to automate many aspects of the microchip design process. Its algorithms can analyze vast amounts of electrical and manufacturing-related data, identifying insights that would be impossible for humans to detect. This allows designers to create optimized chip designs in a fraction of the time it would take manually.

Avant! AI is capable of designing ICs through generative design methods using machine learning algorithms to produce a set of electrical and manufacturing-related parameters and metrics. These algorithms then evaluate a design, eliminating weak spots and faulty aspects and creating an efficient and high-performance microchip. The process refines the design parameters, obeying its specifications and architectural constraints.

Avant! can also use to optimize existing IC designs. By analyzing the design’s data, it can identify areas for improvement and suggest modifications to enhance the design parameters. This can lead to significant improvements in performance, lowering power consumption, and reducing cost, without the need for a complete redesign.

Another area where Avant! can make a big impact in the microchip simulation and testing fields. Testing and simulating a chip’s functionality is a critical part of the chip design and manufacturing process, ensuring that the IC meets its functionalities and performance specifications.

Avant! can be a game changer contributing to the way microchips are designed, tested, and optimized. With its ability to analyze vast amounts of data and identify patterns and insights, Avant! is enabling designers to create more accurate and optimized designs in a fraction of the time it would take manually. As the field of semiconductors continues to evolve rapidly, we can expect to see even more advances in microchip design and optimization, leading to faster, more efficient, and more reliable microchips for a wide range of applications.

Avant! can be a technological leader in the next generation of microchips.

Avant! and cybersecurity threat modeling

Cybersecurity threats are becoming more sophisticated and dangerous every day, and organizations must be prepared to defend themselves against these threats. One of the most effective ways to do this is by performing threat modeling, which is the process of identifying potential threats to a system and assessing their likelihood and impact. Avant! can be used as an efficient technology for cybersecurity threat modeling to automate the collection and analysis of data related to potential threats. This data can include information about known vulnerabilities, attack vectors, and other factors that could be used to compromise a system. By analyzing this data using machine learning algorithms, Avant! can identify potential threats and their likelihood of occurring.

Once potential threats have been identified, Avant! can also be used to model the impact of these threats on the system. This can include simulating the effects of a successful attack on the system and identifying the most critical assets that could be impacted. By modeling the impact of potential threats, organizations can prioritize their security efforts and focus on the areas that are most vulnerable.

In addition to identifying potential threats and modeling their impact, Avant! can also be used to develop mitigation strategies. This can include recommending specific security controls or countermeasures that can be implemented to reduce the likelihood of a successful attack. Avant! mitigation strategies can assist organizations in improving their overall security posture and reducing the risk of a successful attack.

One of the key benefits of using Avant! for cybersecurity threat modeling is the speed and accuracy it offers. Traditional manual threat modeling processes can be time-consuming and prone to errors, as humans can miss important data points or fail to identify potential threats. Avant! can automate much of the process and ensures that all relevant data is analyzed and considered.

Another benefit of using Avant! for cybersecurity threat modeling is the scalability it offers. As organizations grow and their systems become more complex, threat modeling can become increasingly difficult to perform manually. Avant! can be used to scale threat modeling efforts and analyze vast amounts of data in a fraction of the time it would take a human to do the same. As cybersecurity threats continue to evolve and become more sophisticated, Avant! can play an increasingly important role in helping organizations perform efficient threat modeling and develop a robust defense strategy.

 
 

So, what else will Avant! be able to do?

Since Avant!-AI includes multiple machine learning techniques it has the capabilities to become an autonomous, cognitive system that can be trained in any field. For example, it can become a respiratory diseases expert, a sport analyst, or an expert law advisor. The self-learning capabilities make it one of a kind and a true artificial intelligence entity.

Artificial Intelligence (AI) is the simulation of human intelligence in machines that are designed to think and act like humans. These systems use algorithms and statistical models to perform tasks that typically require human-like perception, reasoning, decision making, and learning. The goal of Avant!-AI is to perform tasks that typically require human intelligence, such as perception, analysis, reasoning, and decision-making.

We live in a multisensory world that is filled with different audio, visual, and textual inputs. Avant! is a multimodal model that can incorporate a variety of inputs, learn on its own and reach conclusions. Its AI model fully understands the user’s questions and inputs. In other words, Avant! is aligned with the user’s goals or intentions. Typically, internet-trained AI models are susceptible for human biasing, falsehoods, and prejudices, yet Avant! key strength is its capability to analyze the data, verify its source, credibility, and validate it content to ensure harmless, accurate, safe for use information.

 

Avant! AI is expected to have a significant impact in the healthcare domain. It can be used to analyze medical data and assist in the diagnosis of diseases, as well as to identify potential treatments and predict patient outcomes. It can also help healthcare providers optimize their workflow and improve patient care by automating routine tasks and identifying high-risk patients. Avant! could even enable personalized medicine, where treatments are tailored to an individual's unique genetic makeup.

Another area where Avant! is expected to make a significant impact is modern transportation. Autonomous cars could reduce accidents and congestion on our roads, making transportation more efficient and environmentally friendly. Avant! could control self-driving cars, analyzing their surroundings information and ensure safety.

Avant! can be an efficient technology within industrial automation. It could automate routine tasks and help businesses make data-driven decisions. This can lead to increased efficiency and productivity, as well as economy improvement. Avant! could develop new products, marketing/sales strategies or to create entirely new business models.

 

The growth of AI systems has been a major trend in recent years, driven by rapid advances in machine learning algorithms, computing hardware, and data availability. The growth of AI systems is expected to continue in the coming years, as the technology becomes more widespread and new applications are discovered. That said, we believe that breakthroughs system like Avant! will be widely accepted by people due to the fact that they provide a comprehensive, accurate and reliable source of information.

 

 
 

Will Avant! AI replace humans?

It is unlikely that Avant!-AI will completely replace the need for humans. But it can definitely become an efficient human assistant by understanding complexities and nuances of real-life experience, providing accurate and reliable data.

 

The topic of Artificial Intelligence (AI) replacing humans has been a hotly debated topic for many years. While some believe that AI will eventually surpass human intelligence and lead to widespread unemployment in many sectors, others argue that AI will augment human capabilities and create new jobs.

Advocates of AI argue that it will lead to unprecedented levels of automation, resulting in widespread job losses in many fields. With AI systems capable of performing a wide range of tasks, from data analysis to customer service, many jobs that were once considered safe will become vulnerable. Furthermore, as AI systems continue to improve and become more sophisticated, they will be able to perform tasks that were once considered the exclusive domain of humans, such as writing and creativity. This could lead to a future where a significant portion of the workforce is left without employment, leading to economic and social consequences.

 

 

On the other hand, opponents of this view argue that AI will create new jobs and augment human capabilities, rather than replace them. They argue that AI systems will automate mundane and repetitive tasks, freeing up humans to focus on more creative and fulfilling work. Additionally, the development of AI will create new industries and job opportunities in areas such as AI research, development, and deployment. Furthermore, as AI systems become more widespread, they will create new markets for goods and services, which will drive economic growth and create new job opportunities.

Overall, the question of whether AI will replace humans is a complex one that depends on many factors. While it is true that AI will automate many tasks, it is also likely that it will create new opportunities and augment human capabilities. Avant!-AI does not aim to replace humans but to become an efficient assistant and advisor. Its cognitive and reasoning capabilities could make it a welcomed additional member to a team workforce. Tokenize’s will continue its research and development in this field to ensure that the benefits of AI technology are widely shared and that its negative consequences are mitigated through appropriate policies and regulations.

 

Conclusion

Tokenize’s Avant! AI is a remarkable system developed especially for, but not limited to, managing and controlling today’s technology. Avant! is a new generation of AI, a highly sophisticated one. It can detect, analyze, and learn from experience using ensemble methods. The system efficiently handles huge amounts of data in real time and is ideally suited for Artificial General Intelligence (AGI) applications, autonomous machines, medical agents, cybersecurity, and others. 

Avant! includes web/mobile interfaces and is an ongoing project. We plan to constantly expand its features and capabilities over time with the ultimate goal of AI’s highest aspiration – machine consciousness. 

Avant! is planned to manage smartphone applications, operate computer vision systems, and analyze medical data. It will revolutionize engineering by designing new circuits, enhancing microchip design/manufacturing, and bringing intelligence to our daily technologies. Firms will be able to define a product’s features and characteristics, and Avant! will provide architecture and low-level designs, including simulations. 

Avant! is particularly aimed at bringing important changes to the medical field. It will diagnose and recommend treatments. Based on accumulated experience, Avant! is predicted to become a valuable assistant to nurses and doctors – probably even an indispensable one. We have already implemented Avant! core technology in a POC system, Hippocrates (www.hmd.care), that is successfully able to provide health-related advice. The Hippocrates system currently includes Proof-Of-Concept, a limited dataset to provide a glimpse of its abilities.

Avant! offers capabilities that are not off on a distant horizon. They’re far more than the fanciful dreams of sci-fi enthusiasts. The world will undoubtedly adopt more and more AI in the next decade – with greater expansion in the ensuing years. Avant! Presents a new era of Artificial Intelligence technology that will reshape our world, enabling smart entities to work hand by hand with humans. 

 

 

 

“Computers are not intelligent, they just think they are.”

Computer Symposium, 1979

 

 

 

 

 
 

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21.Quote in Crevier, D. AI: The Tumultuous Search for Artificial Intelligence, NY: Basic Books, 199e).
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Design Document

instantFAMEPlatform

iOS/Android — 2023

 

 

Rahul Mana Mason Berg Blake Clark John Todd Kyle White Clarence Jin

Eric Cho

 

 

Text Box:

 

 

 

 

 

 
 

 

 

Contents

1Project Overview 4
1.1Abstract 4
1.2Background 4
1.3Objective 5
2System Level Design 5
2.1System Requirements 5
2.1.1Mobile and web based applications 5
2.2Functional Requirements 5
2.2.1Performance 5
2.2.2Web services 6
2.2.3Web Interface 6
2.3Key Requirements 7
2.3.1Android and iOS Applications 7
2.3.2User’s Requests & security 7
2.4Block Diagram 8
2.5Functional Decomposition 8
2.5.1User Interface 8
2.5.2Web Server 8
2.5.3Database 9
2.5.4Web Application 9
2.5.5Storage Devices 9
2.6System Analysis 9
2.6.1Device’s Platform 9
3Detailed Description 10
3.1I/O Specifications 10
3.1.1Architecture - General 10
3.1.2Web server Database 10
3.1.3Database Schema 10
3.2Database Flow 10
3.3Hardware Specifications 11
3.3.1App Hardware/OS Requirements 11
3.3.2Memory 11
3.3.3Device Type 11
3.4Developmental Framework 11
3.5Navigation 12
3.6Website architecture 12
3.7AI system 13
4Conclusion

5References 15
5.1Application 15
5.2Our Manifesto 15
5.3Mobile applications, Web server, and Web application 15
5.4General hardware Specifications 15
5.5Database (Schema) 15

 

6General

 

 

 

 

 
 

 

 

1Project Overview
1.1Abstract

The purpose of this document is to summarize the functional requirements of InstantFAME™ application. This document is an overview of the system functionality and design. The main goal of the system is enabling members to become famous according to their artwork creations. For example, a painter can post his/her digital artwork and gets an extremely high value for his/her artwork via LIKES. Other members can purchase his/her artwork, re-posting them and get a higher value. It’s exactly like purchasing an original paint of famous artist as an investment. The system includes block chain technology and plans to have NFT support.

 

Who knows? We may discover the next Picasso or Leonardo De Vinci.

 

1.2Background

Auction houses for artwork have existed for many years. They handle authenticating works of art and specialize in their purchase and sale. However, an increasing proportion of art is not tangible, but instead created and circulated digitally. One example is the non-fungible token (NFT). NFTs can be anything downloaded (drawings, music, etc.) but are most commonly digital works of art. An NFT is unique and non-interchangeable and stored on a digital ledger using blockchain technology. Accordingly, there is a need for systems and methods facilitating the secure purchase and sale of digital works of art. There is a need for an online platform for auction of digital works of art. There is also a need for online systems and methods including blockchain technology and NFT support for digital artists.

 

 

1.3Objective

InstantFAME™ application is targeted to provide the fun of creating digital artwork and make it available for purchase by members. As we are dealing with Art, there will be no censorship – anyone can put any picture/video they wish, as it all “falls” under the category of Art. User’s post are digital images and/or videos that are originally created. Users can LIKE other members artwork posts. Each LIKE has a currency value (For example $1). In fact, all users’ posts are open Auctions. The number of LIKES determine the post theoretical (Artwork item) value.

 

2System Level Design
2.1System Requirements
2.1.1Mobile and Web based applications

The system will include an iOS/Android mobile apps, and web application as the following.

 

Native App Features

 

·         Access to all the device-specific features, including GPS, camera, gestures,

·         and notifications.

·         Can be used without an internet connection.

·         Provides a full experience to the user on their iOS or Android smartphone.

·         Most responsive option that is key to usability.

·         As native applications are platform-specific and written in the platform's

·         native language, they can be fully optimized for the platform making them

·         more efficient.

 

 
 

 

Web based application

·         Most discoverable. A user can easily search for a web application by using a search engine.

·         The web-based application can typically be developed much faster than a native application.

·         Maintenance is simple. It can be done as often as needed.

·         Lower development costs. It’s cheaper to develop hybrid and web applications, as these require skills that build upon previous experience with the web.

·         No need to distribute the software to machines that use the application.

·         Any application updates are made to the application alone and are immediately available to the user.

·         Inherent cross platform support as they run solely on the browser and are platform agnostic.

 

 

2.2Functional Requirements
2.2.1Android and iOS Applications
2.2.1.1Synopsis/Operation

The original owner of the art to receive 10% royalties on ANY transfer sale of his/her picture forever. An Art Piece that will get certain LIKES (let’s say 1 million), even if the ART was not purchased by anyone, the system will turn the art in this case into NFT, and will offer it as NFT, which is differ from a picture. All other features are cloned from Instagram. This includes user’s account, internal communication channel, posting method, etc. The company will deduct handling fee from each transaction or enable pre-purchasing tokens/points to be purchased by users for artwork transactions. Joining the system can be done via current member’s reference (An option) or open to the public.

 

 

 
 
2.2.1.2User Input

The app will facilitate user input of the following topics:

 

Posting images & videos
Set category
Set post's price
Provide LIKES for Posts
Communicate with users via messaging
Sell his/her posts
Buy artwork
Sell artwork
Maintain personal Vault
Set account parameters
Report inappropriate posts
Buy Tokens for artwork purchasing
Follow artists
Invite Friends
Blacklist users
Have Transactions history

 

2.2.2Web services

The following data will be processed by the server for each record:

Content
Sell/Buy Cost
# OF LIKES
# OF FOLLOWERS
Account Details
Tokens
Admin Data

 

 

2.2.3Web Interface

Allow all mobile app operations, post's exporting, and account management.

 
 

 

2.3Key Requirements
2.3.1Performance
Performance: Rapid Response
Ease of use: Users should require no training to record a sighting and perform a survey with the app.
Security: Robust authentication system must protect users’ passwords and private information. Key exchange, NFT (Later Stage)
Graceful failure: The application should exit cleanly in the face of exceptional conditions, saving user data prior to exit, and not causing the device to hang or restart
Form factor adaptability: The apps should function well on devices of all standard form factors
Offline usability: The app should allow users to record data in the absence of a network connection
Hardware adaptability: The app should still be usable on a device with a subset of the supported hardware features and sensors
Minimal data transfer: The app should minimize the amount of network traffic necessary for submitting data to the server
Network agnosticism: The app should submit data over Wi-Fi connections or cell networks
Transactional data submissions: In the event of a lost network connection or otherwise failed data transmission, the app should retain all data locally and report a failed upload.
Multi-task capability: The app should allow the user to move to another app in the middle of a survey or sighting and return without losing data
Minimal resource usage: The app will minimize CPU and memory usage where possible
Network Security: 1024 Encryption/Description

 

 

2.3.2User’s Requests & Security
Availability

   The database should handle up to 1,000,000 requests per day The dataset should store up to 30,000,000 records at the first phase.

 

Security
The mobile and web applications will have protection, testing and monitoring cybersecurity mechanisms.

   Penetration tests through QA & security checks

   Data-In-Transit security

   Modern encryption methods; AES with 512-bit encryption, 256-bit encryption & SHA-256 for hashing.

   High-Level Authentication

   Secured Backend

   Minimum storage of sensitive Data

 

 

2.4Block Diagram

 

 

Diagram

Description automatically generated

 

2.5Functional Decomposition
2.5.1User Interface

The mobile applications interface allows the user to add/remove posts into the main feed and to his/her vault. Our main focus with the UI is to make data entry fast and intuitive. The application will collect numerous data points from the vault's. The data will be stored locally and upon the program’s decision will be upload to the central database. The application allows for data (post) download/export and in next phases NFT support.

 

 

2.5.2Web Server

 

The web server will communicate with Android and iOS and via APIs. A computer-implemented blockchain method of digitally rating and securely selling digital works of art comprises facilitating posting of a first digital work of art on a first artist’s personal page, enabling users to become followers of the first digital work of art and post a like for the first digital work of art, and assigning a monetary value to the like. The methods further comprised of generating digital tokens that can be used to purchase the first digital work of art and can be redeemed for cash, providing an auction whereby users can bid on the first digital work of art, and identifying users and providing access to the auction based on biometric or facial features of the users. The methods include assigning the first digital work of art a purchase price equal to the monetary value assigned to the like multiplied by a number of likes for the first digital work of art, transferring payment to the first artist and transferring the first work of art to a user when the user offers the purchase price to the first artist, storing all payments in a blockchain, and continuously monitoring for security breaches and blocking any detected security breach ties on mobile phones database. We are checking to implement Neo4j database which powered by a native graph database due to its unmatched performance, providing lightning-fast queries and deeper context for analytics.

 

 

 

 
 

Text Box: 

Web Server flow

 

 
 

 

 

2.5.3Database

We are currently using SQLite, an embedded database, to provide local data storage capabili

 

 

2.5.4Web Application

The web application was developed in JavaScript/PHP and incorporating C++ infrastructure as a backend abstraction layer. The application provides users with the ability to perform queries on the survey data and export those results in a common format.

 

    Website module includes:

 

   

Personal Vault maintenance

 

Account setup

 

Web interface of messenger and friends

 

        Authorization page

 

                            The user’s home page (Personal account)

 

    Event Feed

 

    Posting/Purchasing and operations

  

 

2.5.5Storage Devices

 

General

Synchronized storage: The app stores all data on the mobile device, if space available, and thus can be used offline. The stored data may be updated (Download, Upload) with data from a server when the device is periodically online. These approach provides full functionality when offline and robust efficiency.

 

Synchronization patterns will be used as follows:

 

-    Asynchronous data synchronization: Data is synchronized while the app continues its normal functioning. The user can continue to use the app during data synchronization.

 

-    Partial data storage: Only data from the server that is needed by the app is stored on the device.

 

 

 

2.6System Analysis
2.6.1Device’s Platform

 

The platform will include an iOS, Android, and a synchronized web application.

 

iOS vs Android programming use different technology stacks.

We’ll develop an iOS app first due to its efficient development environment. After robust testing we’ll port the program into Android. 

 

Development Environment

Android Development environment - Android Studio, a proprietary tool introduced by Google in 2013 and sporting an expanded range of available features. This integrated development environment has cross-platform support, high readability, a wide range of development and debugging features. 

 

iOS Development - Proprietary XCode tool. The Apple-backed solution provides a variety of bug fixing tools, automation and supports the entire range of iOS devices. 

 

iOS and Android share the founding principles of software design. Due to the fact that both touch and a stylus don’t have a 100% clicking precision, the smallest clickable areas are 44px for iOS and 48px for Android. 

 

The main difference between iOS and Android design philosophies lies in navigation and architecture organization. 

 

Android apps are developed using partition – The coding is done by developing individual modules and integrating them together. iOS application architecture relies on view controllers. Our developers will write them in code or organize images in a storyboard and store it as an XML file. This method enables rapid development pace while the risk of errors reduces. The iOS architecture is more manageable and not so error-prone as that of Android apps. 

 

 
 

 

3Detailed Description
3.1I/O Specifications

 

We designed the app I/O for great mobile device experiences integrate the platform and device capabilities that people value most. We prioritized the following methods to incorporate its features and capabilities.

1.The app I/O is designed to help users to focus on primary tasks and content by limiting the number of onscreen controls while making secondary details and actions discoverable with minimal interaction.
2.The interface is designed to seamlessly adapt to appearance changes — like device orientation, Dark Mode, and Dynamic Type — letting people choose the configurations that work best for them.
3.We enabled interactions that support the way people usually hold their device. For example, it tends to be easier and more comfortable for people to reach a control when it’s located in the middle or bottom area of the display, so it’s especially important let users swipe to navigate back or initiate actions in a list row.
4.The app takes into considerations user’s permission, integrating information available through multiple platforms in ways that enhance the experience without asking people to enter data.

 

 

The app offers an engaging experience keeping people coming back. To create that experience, we created a UI that looks good, user’s friendly, easy-to-understand layout, and emphasizes the right content. User’s interactions with our UI are intuitive and match existing patterns. Most importantly, we designed an interface that feels natural. The UI gracefully handles different mobile phone (iOS, Android) sizes, orientations, and appearance customizations. Users can also customize the appearance of apps and the system by changing some system settings.

 

 

3.1.1Architecture - General

 

iOS

·The iOS app connects with a server code that is written in Native iOS apps are developed using Objective-C and Swift languages, with Apple providing clear best practices over app architecture with the MVC model (Model-View-Controller).
·Model – The data layer (persistence, model objects, parsers, managers, networking code).
·View – A re-usable layer that represents the app to the user.
·Controller – A mediator level that communicates with an abstraction via a protocol.
·The MVC model supports rapid and parallel development, with the ability to create multiple views.

 

 

Android

 

We used common, best practice architectural principles.

 

The UI layer displays application data on the screen.

 

The data layer that contains the business logic of the app and exposes application data.

 

We use Kotlin which is Google's preferred language for app development. Our developers leverage its brevity, speed, and reliability to increase development efficiency and reduce your project’s time to market.

 

 

3.1.2Web server Database

 

The mobile app database is where we store and organize the data so it be easily accessed when needed. We use database management system (DBMS) to makes it possible to modify, and manage the database, search through, manipulate, and access the right results. We use MySQL and Oracle.

 

Our repository classes are responsible for the following tasks:

·Make the data available for all the app’s modules.
·Centralizing changes to the data.
·Resolving conflicts between multiple data sources.
·Abstracting sources of data from the rest of the app.
·Containing business logic.
·Each data source class have the responsibility of working with only one source of data, which can be a file, a network source, or a local database. Our data source classes are the bridge between the application and the system for data operations.

 

 

3.1.3DatabaseSchema

 

Our database schema describes how data is organized and the relationships between the different elements within a database. These schema enables analysts to import data from third-party sources, reconcile the data with their own systems and answer their questions.

 

The app schema covers the next topics:

 

·Redundancy
·Operational efficiency
·Interpretability
·Performance
·Cost savings
·Analytics of the machine learning unit
·Backup

 

 
 

 

Oracle Database Lite architecture

 

Oracle Database Mobile Server Architecture

 

 

3.2Database Flow

 

The following diagram describes how data is passed along through the application from the source to display and how it is structured. It encompasses everything from API response all the way to the data model and ultimately to the rendering of the data.

 

 

Diagram

Description automatically generated

 

Database flow

 

 

Database modules

 

Synchronizer - The database synchronizer is a class bound protocol. When implemented it allows your controller to subscribe to object that is updating the data model. That way it can act accordingly. When the data model adds a new item, the controller is notified through its subscription with the Synchronizer. It can then synchronize the data and the view.

 

Sync Function - The Sync function maintains the connection between the controller and object that updates the data. A sync message is sent when the data has completed updating. This could be at the end of an API call or a Core Data fetch.

 

ItemStore – This function serves as the intermediary between the data, the viewer, and the controller. If I had one reservation about this class, it is that it is starting edge close to the line of having multiple purposes. The goal is to create a clear separation between the model and the controller, and the viewer and model.

 

 

ViewController – This module functions in the controller through API logic. It maintains the logical operation of the viewer and works in conjunction with the AI unit. This module is also connected with the public censure to identify inappropriate posts early and eliminating them.

 

 

Data storage - These are the components that handle the storage and retrieval of the data to the disk/servers directly. They’ve been split into the reading and writing functionalities as protocols which are implemented in the database class.

 
 

 

3.3Hardware Specifications
3.3.1App Hardware/OS Requirements

 

The next table presents the app hardware/OS specifications:

 

iOS and Phone requirements

iOS version >13

Phone hardware spec: iPhone 6s onwards

 

Android OS and Phone version

Android version >6.0.1

Phone hardware spec:

ARM64, X86_64

Min 4GB RAM

Min Screen size: 5 inches

 

Provider Web Portal

Google Chrome (use latest version)

Firefox (use latest version)

Microsoft Edge (use latest version)

Minimum Resolution: 1024 pixel width

 

 

 

3.3.2Memory

 

The app includes dynamic memory management algorithm to control the mobile device memory and allow multitasking for maximum efficiency. The app is equipped with a foreground aware and size-sensitive reclaim scheme, that includes two parts. The first part, foreground aware eviction (FAE), is used to solve the problem that background applications keep consuming free memory pages. FAE takes space from background applications and allocates it to the foreground application. The second part, a lightweight prediction-based reclaim scheme (LWP), is used to reduce the reclaim size of the background reclaim and thus minimize its latency. LWP tunes the size and amount of the background reclaims according to the predicted allocation workloads. In summary, FAE decides from where to reclaim, while LWP decides how much to reclaim.

 

The app memory management system sets a dynamic upper bound on memory for each running application. The app never overcommitting memory, instead it dynamically allocating memory usage to avoid frequent restarts. This approach improves performance and efficient memory utilization.

 

 

 

3.3.3Device Type

 

The next platforms were chosen for the app:

 

iOS, iPadOS 

 

Android

 

The following factors were considered with the mobile app design:

 

·Screen size and DPI
·Screen resolution
·CPU (processor)
·RAM (memory)
·Consistent experience across various platforms and device sizes (Tablet vs mobile, model varieties) so that every user – regardless of their device choice – has the best possible experience.

 

 

3.4Developmental Framework

 

The mobile app is based on a developmental frameworks that defines the architecture, libraries and basic templates and components to build the web app, front and the back-end applications.

Our front-end framework is Angular, and the back-end (server-side), we are using Swift.

 

The app includes an OSS-based direct data transfer for secured callbacks. The direct transfer service is set up for an Android and iOS apps. In case of a server attack the app determines whether the callback request is sent from OSS in order to identify a security breach. To determine whether the callback request is sent from OSS, the app server uses proprietary authorization parameters sent by OSS for RSA signature verification. Only callback requests that pass RSA signature verification are considered as from OSS.

 

Your Basic Guide to Mobile App Architecture in 2021

 

Callbacks Architecture

 
 

 

3.5Navigation

 

Navigation impacts both the front-end and the back-end applications. The app includes UX design style to help users easily identification about how to move around the app and explore further sections. The app follows navigation best practices in order to help ensure the mobile app is easy to use, and mainly intuitive. It includes the next elements:

 

·Search – A well-positioned search bar levels up usability, with standard position being the top right.
·Bars, rails, drawers, or tabs – To navigate around an app, including fixed bars of buttons (top and/or bottom), rails (a vertical bar), drawers (hidden navigation), and tabs (screened content with fixed titles).
·Familiar icons – Familiar icons such as home, search, photos, folder, etc. to make navigation easier.
·Intuitive labeling – Distinguish information with labels that spell out the intent of a button, option, or feature.
·App organization – Categorization can make the app navigation easier.
·Gestures Support – Gesture-based navigation (swipes) can streamline navigation.
·Scrolling Support – Scrolling options.
·Thumb zone navigation – Design with the thumb zone in mind for enhanced usability.

 

3.6Website architecture

 

 

The website application is based on microservice architecture which is considered the best alternative to service-Oriented Architecture (SOA) and monolithic architecture. Microservices architecture separates the application into multiple individual service components. It further simplifies the connectivity between service components and eliminates the need for service orchestration. We adopted major tech giants who are popular for using microservices like Netflix, Amazon and eBay.

 

We are using the next design tools and frameworks for the web application design:

 

·IDE tools: Github, NetBeans
·UX Builder tools: Sketch
·Integration tools: Cleo
·Frameworks & Libraries: Angular, Python

 

 

 

 

 

 
 

 

 

 

 

Web Application user experience approach

 

 

 

 

 

 

3.7 AI System

 

The app includes a supervised learning module to manage the computer-implemented blockchain system for digital ratings and secured sales of digital works of art. The module comprises of a platform for posting art, an interface, and transaction’s security. The platform enables a first artist to post a first digital work of art on the first artist’s personal page. The interface enables users to become followers of the first digital work of art and post a like for the first digital work of art, and the platform assigns a monetary value to the like. The auction module enables users to bid on the first digital work of art. The artificial intelligence unit learns features of the first digital work of art and provides an alert if unauthorized copying of the first digital work of art is detected. The first digital work of art is assigned a purchase price equal to the monetary value assigned to the like multiplied by a number of likes for the first digital work of art. When a user offers the purchase price the auction module transfers payment to the first artist and the first work of art to the user.

 

The system also comprises of an unsupervised learning machine learning technology. We used machine learning algorithms to analyze and cluster unlabeled datasets. Our algorithms discover hidden patterns or data groupings without the need for human intervention. We use the unsupervised learning technology to discover similarities and differences in posting’s, features and image/video characteristics information. These methods are ideal solution for exploratory data analysis and image recognition.

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

AI module architecture

 

 

 

4Conclusion

 

 

instantFAMEis a mobile application for digital ratings and sales of digital works of art. The application includes an AI system to achieve effective image recognition, database management, and robust cybersecurity.

instantFAMEenvisions a future in which everyone is moved by art every day. To accomplish this we're expanding the art market to support more artists and art worldwide. As the leading marketplace for discovering, buying, and selling fine art, instantFAMEbelieves that the process of buying art should be as brilliant as the art itself. That is why we are committed to creating a joyful, welcoming experience that connects collectors with the artists and artworks they love.

 

 
 

 

5References
5.1Application

The instantFAME™ application is designed to provide members with the enjoyment of creating digital artwork and making it available to them. There will be no censorship because we are dealing with Art - anyone can post any picture/video they want as long as it “falls” under the category of Art. Users’ posts are digital images and/or videos that are originally created. Users can LIKE the artwork posts of other members. Each LIKE has a token value (like mileage on airline that has redeem value – or any other loyalty program). In fact, all of the posts made by users are open Auctions. The number of LIKES determines the post’s theoretical (Artwork item) value – where the original owner of the Art can fix a minimum “token price” as minimum value.

 

5.2Our Manifesto

We believe that people who create things should be compensated for the value they add to the world. instantFAME™ is a close membership platform that facilitates the payment of artists and creators. In exchange for exclusive experiences and behind-the-scenes content, fans pay creators of all kinds a subscription fee of their choice. Creators benefit from a significant revenue stream, and fans get closer to the creators they admire the most. That, we believe, is the definition of a win-win situation.

 

5.3Mobile applications, Web server, and Web application

We recommend 2nd- or 3rd-generation Intel Xeon Scalable Processors (Cascade Lake / Cooper Lake) Gold 62xx/63xx or 52xx/53xx. We also support Intel Xeon Scalable Processors (Skylake) Gold 61xx generation or E5-2600 v3/v4 Haswell/Broadwell architecture from 2014 or later. Also works with Xeon E5-2600 v1/v2 processors (Sandy Bridge / Ivy Bridge from 2012 or later). AMD processors that support the AVX and AVX2 instruction set are also supported.

 

5.4General hardware Specifications

 

·4-socket 8 core 32 GB RAM
·Windows Server x64 OS
·200 GB free hard disk space
·Network interface software for network communications, and TCP/IP network protocol
·SVGA or better color graphics monitor and a 100% IBM-compatible 24-bit graphics card capable of 1024x768 resolution and at least 65535 colors
·XGA or better color graphics monitor and a 100% IBM-compatible 24-bit graphics card capable of 1024x768 resolution and at least 65535 colors

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5.5Database (Schema)

 

SQL database designed to run high-performance applications at any scale. It offers a built-in security, continuous backups, and data import and export tools.

 

 

6General

 

 
 

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