Exhibit
10.01


 


EMPLOYMENT
AGREEMENT


 


AGREEMENT
dated as of July 26, 2018 (“Commencement Date”) between ANDREW SHAPE, residing at 7 Sayles Road, Hingham, MA
02043 (“Executive”), and LONG BLOCKCHAIN CORP., a Delaware corporation having its principal office at 12-1
Dubon Court Farmingdale NY 11735 (“Company”);


 


WHEREAS,
the Company desires to enter into an employment agreement with Executive and Executive is willing to enter into such employment
agreement on the terms, conditions and provisions hereinafter set forth.


 


NOW,
THEREFORE, in consideration of the mutual promises, terms, covenants and conditions set forth herein and the performance of each,
the parties hereby agree as follows:


 


IT
IS AGREED:


 


1. Employment,
Duties and Acceptance.


 


1.1 General.
During the Term (as defined in Section 2), the Company shall employ Executive in the position of Chief Executive Officer
(“CEO”) of the Company and such other positions as shall be given to Executive by the Board of Directors
of the Company (the “Board”). All of Executive’s powers and authority in any capacity shall at all
times be subject to the direction and control of the Company’s Board of Directors. The Board may assign to Executive
such management and supervisory responsibilities and executive duties for the Company or any subsidiary of the Company,
including serving as an executive officer and/or director of any subsidiary, as are consistent with Executive’s status
as CEO.


 


1.2 Position.
Executive accepts such employment, however Executive is not obligated to devote any specific number of hours and intends to
devote only as much time as necessary to the Company’s affairs. Nothing herein shall be construed as preventing
Executive from making and supervising personal investments, provided they will not interfere with the performance of
Executive’s duties hereunder or violate the provisions of Section 5.4 hereof. Executive shall not serve as a consultant
to, or on boards of directors of, or in any other capacity to other companies, for profit and not for profit, without the
prior consent of the Board and so long as such consulting duties do not interfere with his duties for the Company.
Notwithstanding the foregoing, Executive shall be permitted to continue to serve as President of Strän & Company,
Inc.


 


1.3 Location.
Executive will perform his duties primarily in Massachusetts. However, Executive shall undertake such occasional travel,
within or outside the United States, as is reasonably necessary in the interests of the Company.


 


1.4 Board
of Directors. During the Term (as hereinafter defined), the Company shall use its best efforts to cause the Executive to
be reelected to the Board.


 




    	 



    	 	 	 



    

 


2. Term.
The term of Executive’s employment hereunder shall commence on the Commencement Date and shall continue until the two
year anniversary of the Commencement Date, unless terminated earlier as hereinafter provided in this Agreement, or unless
extended, on these or different terms, by mutual written agreement of the Company and Executive (“Term”);
provided, however, that on the two year anniversary of the Commencement Date and on each subsequent one year anniversary of
such date (each a “Renewal Date”) the term of this Agreement shall automatically be extended by one
additional year (the “Extension Period”) unless either party shall have provided notice to the other 60
days prior to a Renewal Date that such party does not desire to extend the term of this Agreement, in which case no further
extension of the term of this Agreement shall occur pursuant hereto but all previous extensions of the term shall continue to
be given full force and effect. The “Term” of this Agreement shall include any Extension Periods. Unless the
Company and Executive have otherwise agreed in writing, if Executive continues to work for the Company after the expiration
of the Term, his employment thereafter shall be under the same terms and conditions provided for in this Agreement, except
that his employment will be on an “at will” basis and the provisions of Sections 4.4 and 4.6(c) shall no longer
be in effect.


 


3. Compensation
and Benefits.


 


3.1 Salary.
The Company shall pay to Executive a salary (“Base Salary”) at the annual rate of $200,000. Executive’s
compensation shall be paid in equal, quarterly installments through the issuance of restricted shares of Common Stock of the
Company, at a per share price equal to 85% of the average closing price for 10 trading days prior to end of the quarter, but
in any event not less than $0.30 per share. All such shares of Common Stock shall be pursuant to the 2017 Long-Term Incentive
Equity Plan or any successor plan thereto. The Company represents and will ensure that it has sufficient authorized Common
Stock to make any such issuances.


 


3.2
[Intentionally Omitted]


 


3.3 Benefits.
Executive shall be entitled to such medical, life, disability and other benefits as are generally afforded to other
executives of the Company, subject to applicable waiting periods and other conditions, as well as participation in all other
company-wide employee benefits, including a defined contribution pension plan and 401(k) plan, as may be made available
generally to executive employees from time to time.


 


3.4 Vacation
and Sick Days. Executive shall be entitled to twenty (20) days of paid vacation and five (5) days of paid sick days in
each year during the Term and to a reasonable number of other days off for religious and personal reasons in accordance with
customary Company policy.


 


3.5 Expenses.
The Company shall pay or reimburse Executive for all transportation, hotel and other expenses reasonably incurred by
Executive on business trips and for all other ordinary and reasonable out-of-pocket expenses actually incurred by him in the
conduct of the business of the Company (including as a member of the Board), against itemized vouchers submitted with respect
to any such expenses and approved in accordance with customary procedures. This shall include (i) fees and disbursements of
counsel to Executive for negotiating this Agreement and for representation of Executive in his capacity as Chief Executive
officer, up to a maximum of $10,000, and (ii) any other expenses incurred by Executive prior to the Commencement date, in an
amount to be mutually agreed upon by Executive and the Company.


 









    	 



    	 	 	 



    

 


4. Termination.


 


4.1 Death.
If Executive dies during the Term, Executive’s employment hereunder shall terminate and the Company shall pay to
Executive’s estate the amount set forth in Section 4.6(a).


 


4.2 Disability.
The Company, by written notice to Executive, may terminate Executive’s employment hereunder if Executive shall fail
because of illness or incapacity to render services of the character contemplated by this Agreement for six (6) consecutive
months. Upon such termination, the Company shall pay to Executive the amount set forth in Section 4.6(a).


 


4.3 By
Company for “Cause”. The Company, by written notice to Executive, may terminate Executive’s employment
hereunder for “Cause”. As used herein, “Cause” shall mean: (a) misconduct in connection with the
performance of any of Executive’s duties; (b) the refusal or failure by Executive to perform a material part of
Executive’s duties hereunder; (c) the commission by Executive of a material breach of any of the provisions of this
Agreement; (d) fraud or dishonest action by Executive in his relations with the Company or any of its subsidiaries or
affiliates (“dishonest” for these purposes shall mean Executive’s knowingly or recklessly making of a
material misstatement or omission for his personal benefit); or (e) the conviction of Executive of a felony under federal or
state law. Notwithstanding the foregoing, no “Cause” for termination shall be deemed to exist with respect to
Executive’s acts described in clauses (a) or (b) above (except as described below), unless the Company shall have given
written notice to Executive within a period not to exceed ten (10) calendar days of the initial existence of the occurrence,
specifying the “Cause” with reasonable particularity and, within thirty (30) calendar days after such notice,
Executive shall not have cured or eliminated the problem or thing giving rise to such “Cause;” provided, however,
no more than two cure periods need be provided during any twelve-month period; and provided further, however, that any breach
of this Agreement relating to the Restricted Activities shall result in a termination for “Cause” without any
advance notice and without any ability on the part of the Executive to cure such breach. Executive, by 30 days’ written
notice to the Company, may terminate Executive’s employment hereunder without “Good Reason” (as defined
below). Upon such termination, the Company shall pay to Executive the amount set forth in Section 4.6(b).


 




    	 



    	 	 	 



    

 


4.4 By
Executive for “Good Reason”. The Executive, by written notice to the Company, may terminate
Executive’s employment hereunder if a “Good Reason” exists. For purposes of this Agreement, “Good
Reason” shall mean the occurrence of any of the following circumstances without the Executive’s prior written
consent: (a) a substantial and material adverse change in the nature of Executive’s title, duties and/or
responsibilities with the Company that represents a demotion from his title, duties or responsibilities as in effect
immediately prior to such change (such change, a “Demotion”); (b) material breach of this Agreement by the
Company; (c) a failure by the Company to make any payment to Executive when due, unless the payment is not material and is
being contested by the Company, in good faith; or (d) a liquidation, bankruptcy or receivership of the Company.
Notwithstanding the foregoing, no “Good Reason” shall be deemed to exist with respect to the Company’s acts
described in clauses (a), (b) or (c) above, unless Executive shall have given written notice to the Company within a
period not to exceed ten (10) calendar days of the Executive’s knowledge of the initial existence of the occurrence,
specifying the “Good Reason” with reasonable particularity and, within thirty (30) calendar days after such
notice, the Company shall not have cured or eliminated the problem or thing giving rise to such “Good Reason”;
provided, however, that no more than two cure periods shall be provided during any twelve-month period of a breach of clauses
(a), (b) or (c) above. Upon such termination by the Company or by the Executive, the Company shall pay to Executive the
amount set forth in Section 4.6(c).


 


4.5 By
Company Without “Cause”. The Company may terminate Executive’s employment hereunder without
“Cause” by giving at least thirty (30) days written notice to Executive. Upon such termination, the Company shall
pay to Executive the amount set forth in Section 4.6(c), unless such termination occurs after the expiration of the Term, in
which case nothing shall be paid.


 


4.6 Compensation
Upon Termination. In the event that Executive’s employment hereunder is terminated, the Company shall pay to
Executive the following compensation:


 


(a) Payment
Upon Death or Disability. In the event that Executive’s employment is terminated pursuant to Sections 4.1 or 4.2,
the Company shall no longer be under any obligation to Executive or his legal representatives pursuant to this Agreement
except for: (i) the Base Salary due Executive pursuant to Section 3.1 hereof through the date of termination; (ii) all valid
expense reimbursements; (iii) all accrued but unused vacation pay; and (iv) all earned and previously approved but unpaid
Bonuses for any year prior to the year of termination.


 


(b) Payment
Upon Termination by the Company For “Cause”. In the event that the Company terminates Executive’s
employment hereunder pursuant to Section 4.3, the Company shall have no further obligations to the Executive hereunder,
except for: (i) the Base Salary due Executive pursuant to Section 3.1 hereof through the date of termination; (ii) all valid
expense reimbursements; and (iii) all unused vacation pay through the date of termination required by law to be
paid.


 


(c) Payment
Upon Termination by Company Without Cause or by Executive for Good Reason. In the event that Executive’s
employment is terminated pursuant to Sections 4.4 or 4.5, the Company shall have no further obligations to Executive
hereunder except for: (i) upon execution of a general release and waiver in a form reasonably satisfactory to the Company,
six (6) months of Base Salary, payable in equal, quarterly installments in accordance with Section 3.1 hereof; (ii) all valid
expense reimbursements; and (iii) all accrued but unused vacation pay (pro rata for the period to the date of
termination).


 




    	 



    	 	 	 



    

 


(d)
Executive shall have no duty to mitigate awards paid or payable to him pursuant to this Agreement, and any compensation paid or
payable to Executive from sources other than the Company will not offset or terminate the Company’s obligation to pay to
Executive the full amounts pursuant to this Agreement.


 


5. Protection
of Confidential Information; Non-Competition.


 


5.1 Acknowledgment.
Executive acknowledges that:


 


(a)
As a result of his employment with the Company, Executive has obtained and will obtain secret and confidential information concerning
the business of the Company and its subsidiaries (referred to collectively in this Section 5 as the “Company”), including,
without limitation, financial information, proprietary rights, trade secrets and “know-how,” customers and sources
(“Confidential Information”).


 


(b)
The Company will suffer substantial damage which will be difficult to compute if, during the period of his employment with the
Company or thereafter, Executive should enter a business competitive with the Company or divulge Confidential Information.


 


(c)
The provisions of this Agreement are reasonable and necessary to protect the business of the Company, to protect the Company’s
trade secrets and Confidential Information and to prevent loss to a competitor of an employee whose services are special, unique
and extraordinary.


 


5.2 Confidentiality.
Executive agrees that he will not at any time, during the Term or thereafter, divulge to any person or entity any
Confidential Information obtained or learned by him as a result of his employment with the Company, except (i) in the course
of performing his duties hereunder, (ii) with the Company’s prior written consent; (iii) to the extent that any such
information is in the public domain other than as a result of Executive’s breach of any of his obligations hereunder;
or (iv) where required to be disclosed by court order, subpoena or other government process. If Executive shall be required
to make disclosure pursuant to the provisions of clause (iv) of the preceding sentence, Executive promptly, but in no event
more than 48 hours after learning of such subpoena, court order, or other government process, shall notify, confirmed by
mail, the Company and, at the Company’s expense, Executive shall: (a) take all reasonably necessary and lawful steps
required by the Company to defend against the enforcement of such subpoena, court order or other government process, and (b)
permit the Company to intervene and participate with counsel of its choice in any proceeding relating to the enforcement
thereof.


 


5.3 Documents.
Upon termination of his employment with the Company, Executive will promptly deliver to the Company all memoranda, notes,
records, reports, manuals, drawings, blueprints and other documents (and all copies thereof) relating to the business of the
Company and all property associated therewith, which he may then possess or have under his control; provided, however, that
Executive shall be entitled to retain copies of such documents reasonably necessary to document his financial relationship
with the Company.


 




    	 



    	 	 	 



    

 


5.4 Non-Competition.
For and in consideration of Executive’s employment by the Company and the consideration the Executive will receive
thereby, Executive hereby agrees as follows:


 


(a)
Executive shall not during the period of his employment by or with the Company and for the Applicable Period (defined below),
for himself or on behalf of, or in conjunction with, any other person, persons, company, partnership, limited liability company,
corporation or business of whatever nature:


 


(i)
engage, as an officer, director, manager, member, shareholder, owner, partner, joint venturer, trustee, or in a managerial capacity,
whether as an employee, independent contractor, agent, consultant or advisor, or as a sales representative, in an entity that
designs, researches, develops, markets, sells or licenses products or services that are substantially similar to or competitive
with the business of the Company that is located within twenty-five (25) miles of any market in which Company currently operates
or has plans to do business in at the time of termination;


 


(ii)
call upon any person who is at that time, or within the preceding twenty-four (24) months has been, an employee of the Company,
for the purpose, or with the intent, of enticing such employee away from, or out of, the employ of the Company or for the purpose
of hiring such person for Executive or any other person or entity, unless any such person was terminated by the Company more than
six (6) months prior thereto; 


 


(iii)
call upon any person who, or entity that is then or that has been within one year prior to that time, a customer of the Company,
for the purpose of soliciting or selling products or services in competition with the Company; or


 


(iv)
call upon any prospective acquisition or investment candidate, on the Executive’s own behalf or on behalf of any other person
or entity, which candidate was known by Executive to have, within the previous twenty-four (24) months, been called upon by the
Company or for which the Company made an acquisition or investment analysis or contemplated a joint marketing or joint venture
arrangement with, for the purpose of acquiring or investing or enticing such entity into a joint marketing or joint venture arrangement.


 


For
purposes of this Section 5:


 


	 	●	the
    term “Company” shall be deemed to include the Company and any of its respective subsidiaries; and
	 	 	 
	 	●	the
    term “Applicable Period” shall mean six (6) months from the termination of Executive’s employment.


 




    	 



    	 	 	 



    

 


5.5 Injunctive
Relief. If Executive commits a breach, or threatens to commit a breach, of any of the provisions of Section 5.2 or 5.4,
the Company shall have the right and remedy to seek to have the provisions of this Agreement specifically enforced by any
court having equity jurisdiction, it being acknowledged and agreed by Executive that the services being rendered hereunder to
the Company are of a special, unique and extraordinary character and that any such breach or threatened breach will cause
irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company. The rights and
remedies enumerated in this Section 5.5 shall be in addition to, and not in lieu of, any other rights and remedies available
to the Company under law or equity. In connection with any legal action or proceeding arising out of or relating to this
Agreement, the prevailing party in such action or proceeding shall be entitled to be reimbursed by the other party for the
reasonable attorneys’ fees and costs incurred by the prevailing party. 


 


5.6 Modification.
If any provision of Section 5.2 or 5.4 is held to be unenforceable because of the scope, duration or area of its
applicability, the tribunal making such determination shall have the power to modify such scope, duration, or area, or all of
them, and such provision or provisions shall then be applicable in such modified form.


 


5.7 Survival.
The provisions of this Section 5 shall survive the termination of this Agreement for any reason, except in the event
Executive is terminated by the Company without Cause, or if Executive terminates this Agreement with Good Reason, in either
of which events, clause (i) of Section 5.4 shall be null and void and of no further force or effect. The non-renewal of this
Agreement at the end of the Term shall not be deemed a termination by the Company without Cause.


 


6. Miscellaneous
Provisions.


 


6.1 Notices.
All notices provided for in this Agreement shall be in writing, and shall be deemed to have been duly given when (i)
delivered personally to the party to receive the same, or (ii) when mailed first class postage prepaid, by certified mail,
return receipt requested, addressed to the party to receive the same at his or its address set forth below, or such other
address as the party to receive the same shall have specified by written notice given in the manner provided for in this
Section 6.1. All notices shall be deemed to have been given as of the date of personal delivery or mailing
thereof.


 


If
to Executive:


 


Andrew
Shape


7
Sayles Road


Hingham,
MA 02043


 


If
to the Company:


 


Long
Blockchain Corp


12-1
Dubon Court


Farmingdale,
NY 11735


 




    	 



    	 	 	 



    

 


With
a copy in either case to:


 


Graubard
Miller


405
Lexington Avenue, 11th Floor


New
York, New York 10174


Attn:
David Alan Miller / Jeffrey M. Gallant


 


and


 


Lang
Coakley

Attn: Christopher Lang, Esq.

1842 Centre Street

West Roxbury, MA 02132


 


6.2 Entire
Agreement; Waiver. This Agreement and the Relocation Expense Letter sets forth the entire agreement of the parties
relating to the employment of Executive and is intended to supersede all prior negotiations, understandings and agreements.
No provisions of this Agreement may be waived or changed except by a writing by the party against whom such waiver or change
is sought to be enforced. The failure of any party to require performance of any provision hereof or thereof shall in no
manner affect the right at a later time to enforce such provision.


 


6.3 Governing
Law. All questions with respect to the construction of this Agreement, and the rights and obligations of the parties
hereunder, shall be determined in accordance with the law of the State of New York applicable to agreements made and to be
performed entirely in New York.


 


6.4 Binding
Effect; Nonassignability. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of
the Company. This Agreement shall not be assignable by Executive, but shall inure to the benefit of and be binding upon
Executive’s heirs and legal representatives.


 


6.5 Severability.
Should any provision of this Agreement become legally unenforceable, no other provision of this Agreement shall be affected,
and this Agreement shall continue as if the Agreement had been executed absent the unenforceable provision.


 


6.6 Section
409A. This Agreement is intended to comply with the provisions of Section 409A of the Internal Revenue Code
(“Section 409A”). To the extent that any payments and/or benefits provided hereunder are not considered compliant
with Section 409A, the parties agree that the Company shall take all actions necessary to make such payments and/or benefits
become compliant.


 


[Signature
Page Follows]


 




    	 



    	 	 	 



    

 


IN
WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.


 


	 	LONG BLOCKCHAIN CORP.
	 	 	 
	 	By:	/s/
    Shamyl Malik
	 	Name:	Shamyl
    Malik
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	/s/
    Andrew Shape
	 	ANDREW
    SHAPE