LICENSE AGREEMENT AND INVESTMENT

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements

8. LICENSE AGREEMENT AND INVESTMENT

On March 31, 2015, BVAP and TAUG entered into a non-exclusive license agreement, whereby TAUG will provide CBD oil cartridges to be used in the BVAP e-cigarette.  In accordance with the agreement, TAUG will receive a royalty of 50% of the net revenues associated with the sale of specified list of products listed in the agreement.  In addition, there was a share swap between TAUG and BVAP to equate to $100,000.  BVAP issued 2,666,667 shares at $0.0375 for the commercialization of the products.  TAUG issues 10,869,565 shares of its stock to acquire the license agreement (investment).

Description	Amount
License Agreement / Commercialization Fees - 2 years dated 3/31/15
Stock issued	$	100,000
Total	$	100,000
Less: Accumulated Amortization		12,449
Net June 30, 2015	$	87,551
Issued 2,666,667 shares of Company common stock		2,666,667
at $0.01 per share.	$	0.0375
Share value	$	100,000