Document:

Blueprint

 

 Exhibit 10.4

BlockEx
Limited

 

 

 

a
private limited liability company incorporated under the laws of
Gibraltar

 

 

 

 

 

PRIVATE
TOKEN PURCHASE COMMITMENT FORM

(this
“Agreement”)

 

 

PLEASE
READ THIS AGREEMENT CAREFULLY.

 

PLEASE
TAKE INDEPENDENT LEGAL ADVICE BEFORE ENTERING INTO THIS
AGREEMENT.

 

NOTE
THAT PURCHASER ARE WAIVING PURCHASER’S RIGHTS AND CLAIMS, AND
INDEMNIFYING, THE COMPANY.

 

 

NOTE
THAT THIS AGREEMENT CONTAINS BINDING ARBITRATION PROVISIONS AND A
CLASS ACTION WAIVER, WHICH AFFECT PURCHASER’S LEGAL
RIGHTS.

 

IF
PURCHASER DO NOT AGREES TO ALL OF THE TERMS IN THIS AGREEMENT, DO
NOT ENTER INTO THIS AGREEMENT.

 

Blockchain
Industries Inc. of 53 Calle Palmeras, Suite 802, San Juan, PR
00901, United States (hereinafter referred to as the
“Purchaser”),
hereby unconditionally and irrevocably agrees with the
Company:

 

(i)

to unconditionally
and irrevocably commit to purchase Five Million, Seven Hundred and
Fourteen Thousand, Two Hundred and Eighty Five 5,714,285.71 of
Tokens (the “Committed Amount
of Tokens”) from the Company; and

 

 

(ii)

to unconditionally
and irrevocably pay the Company (or its duly appointed agent or
nominee) the amount of Euros (EUR) 2,000,000 (the
“Consideration”),

 

on the
terms and conditions set out in this Agreement.

 

ALTERNATIVELY

 

1. By
purchasing Tokens during the Token Sale and indicating
Purchaser’s acceptance of this agreement on the
Company’s website, and completing the fields relating to the
amount of Tokens to be purchased (“Committed Amount of
Tokens”) in consideration of the payment indicated during the
purchase process (“Consideration”), Purchaser will be
bound by the terms of this Agreement and any other terms
incorporated by reference.

 

 

1.

The Purchaser
hereby agrees that it shall pay the Consideration into the bank
account or the cryptocurrency wallet of the Company (or its duly
appointed agent or nominee) within the period of 7 calendar days
commencing on the date that the Company (or any of its duly
appointed agent or nominee) shall notify me of the details of such
bank account or cryptocurrency wallet by e-mail in accordance with
paragraph 3 below. The Purchaser hereby
further acknowledges and agrees that it shall provide all
documentation and

 

 

 

information
relating to all ‘Know-Your -Customer’ and all
anti-money laundering checks required by law to be carried out by
the Company to their entire satisfaction prior to Purchaser
remittance of the Consideration to the Company. The Purchaser
hereby also acknowledges and agrees that in the event that the
Company are not satisfied with the ‘Know-Your-Customer’
and all anti-money laundering documentation and information that
The Purchaser has provided, that this Agreement shall immediately
terminate and that Purchaser shall have no Claim or recourse of
whatsoever nature or howsoever arising against the
Company.

 

 

2.

The Purchaser
hereby acknowledges and confirms that The Purchaser has read and
understood this Agreement, and that The Purchaser has taken all
required independent professional advice (including legal,
accounting, tax, regulatory and investment advice) and that
Purchaser accordingly expressly agrees to be bound by the terms of
this Agreement.

 

3.

The Purchaser hereby
agrees that any notices sent to me by the Company (or by any duly
appointed agent, representative or nominee of the Company) in
connection with this Agreement and/or the matters contained or
referred to in this Agreement (including the White Paper, as
defined below) may be sent to me at the following e-mail address
indicated during the Registration Process (as defined below) on the
Company’s website and that:

 

(i)

notice shall be
deemed to have been duly and adequately served to me upon receipt
of an e-mail sent to me by the Company (or by any duly appointed
agent, representative or nominee of the Company) and there shall be
no requirement on the Company (or any of its duly appointed agents,
representatives or nominees) to issue such notice to me by any
additional means; and

(ii)

such notice shall
be deemed to have been duly received by me immediately at the date
and time of delivery of the e-mail communication; and

(iii)

delivery of such
notice shall be evidenced by the Company (or by its duly appointed
agents, representatives or nominees) upon production of a delivery
notification confirmation.

 

4.

The Purchaser
hereby agrees that The Purchaser has read the entirety of the
latest draft of the white paper which can be found at
https://daxt.io and which is to be formally issued by the Company
in due course (the “White
Paper”) and that The Purchaser has fully understood
and agrees with all of its contents. In particular, The Purchaser
has read and understood the “Legal Considerations, Risks and
Disclaimer” section at the end of the White Paper. The
Purchaser hereby acknowledges and agrees that the “Legal
Considerations, Risks and Disclaimer” section at the end of
the White Paper shall be deemed to be incorporated into the terms
of this Agreement and shall form a part of this Agreement. The
Purchaser hereby further acknowledges and agrees that the White
Paper (including the “Legal Considerations, Risks and
Disclaimer” section of the White Paper which is deemed to be
incorporated into this Agreement) may be subject to change from
time to time and that the latest version of the White Paper shall
be available from time to time for review at https://daxt.io. The
Purchaser further acknowledges and agrees that it shall be
Purchaser sole responsibility to ensure that Purchaser periodically
review the latest version of the White Paper available for review
at https://daxt.io and that neither the Company nor any of its duly
appointed agents, representatives or nominees shall be obliged or
bound to notify me of any change whatsoever to the White Paper (or
any part thereof).

 

 

5.

The Purchaser
hereby unconditionally and irrevocably agrees that in order to
purchase and receive the Committed Amount of Tokens following their
creation, Purchaser shall first be

 

 

 

required to
complete the online registration process that will be capable of
being accessed from the Company’s website at
https://www.blockexmarkets.com (the “Registration Process”) pursuant to
which Purchaser shall have to provide the required Know-Your-Client
and other due diligence information and documentation more
particularly described therein to a standard which is satisfactory
to the Company (and/or its duly appointed agents, representatives
or nominees). The Registration Process will also include reading
and accepting the final Token sale terms and conditions (the
“Token Sale Terms and
Conditions” a draft of which is set out in Schedule 1
to this Agreement) which shall comprise the terms and conditions
upon which the Committed Amount of Tokens shall be sold to me by
the Company. The Purchaser hereby further acknowledges and agrees
that the draft of the Token Sale Terms and Conditions appearing in
Schedule 1 to this Agreement may be subject to change from time to
time and that the latest version of the Token Sale Terms and
Conditions shall be available for review at https://daxt.io. The
Purchaser further acknowledges and agrees that it shall be
Purchaser sole responsibility to ensure that Purchaser periodically
review the latest version of Token Sale Terms and Conditions
available for review at https://daxt.io and that neither the
Company nor any of its duly appointed agents, representatives or
nominees shall be obliged or bound to notify me of any change
whatsoever to the Token Sale Terms and Conditions. Save for the
amount of the Consideration (as set out above) payable by the
Purchaser for the Tokens, Purchaser agrees that in the event of any
conflict between the Token Sale Terms and Conditions and the terms
of this Agreement, the Token Sale Terms and Conditions shall
prevail.

 

 

6.

The Purchaser
hereby acknowledges and agrees that upon completion of the
Registration Process to the satisfaction of the Company (or its
duly appointed agents, representatives or nominees) and subject
payment by me of the Consideration to the Company (or its duly
appointed agents, representatives or nominees) Purchaser order for
the purchase of Committed Amount of Tokens will be recorded and
upon the occurrence of the Company’s public Token sale (the
“Public Token
Sale”) the Committed Amount of Tokens will be
transferred to the wallet that Purchaser will have notified the
Company (or its duly appointed agents, representatives or nominees)
of as part of Purchaser completion of the Registration
Process.

 

7.

Purchaser understands
and hereby agrees and acknowledges that the Company will utilise
all of part of the Consideration to progress the project described
in the White Paper prior to the issue of the Tokens. Purchaser also
understands and hereby agrees and acknowledges that the Public
Token Sale may not take place for whatever reason and in the event
that the Public Token Sale may not take place for whatever reason
Purchaser will not have any
recourse against the Company for the recovery of all or any part of
the Consideration. The Purchaser hereby unconditionally and
irrevocably agrees that Purchaser shall have no recourse or claim
against the Company (and/or its past, present and future employees,
officers, directors, contractors, consultants, equity holders,
suppliers, vendors, service providers, parent companies,
subsidiaries, affiliates, agents, representatives, joint ventures,
predecessors, successors and assigns; COLLECTIVELY THE
“Company Parties”) whatsoever. The Purchaser hereby
unconditionally and irrevocably waive, release and discharge the
Company and the Company Parties from all and any Claims Which the
Purchaser has or may at any time have against the Company (and its
duly appointed agents, representatives or nominees). To the
fullest extent permitted by applicable law, Purchaser also releases
the Company and the Company Parties from all and any
responsibility, Losses, Claims, of every kind and nature, known and
unknown (including, but not limited to, claims of
negligence),

 

 

 

arising
out of or related to any and all disputes acts and/or omissions of
third parties relating to this Agreement. Purchaser expressly
waives any and all rights Purchaser may have under any statute or
common law principles that would otherwise limit the coverage of
this release to include only those claims which Purchaser may know
or suspect to exist in Purchaser favour at the time of agreeing to
this release.

 

 

8.

If for any reason
Purchaser hereafter bring or commence any Claim purported to be
released and discharged pursuant to paragraph 7 above, or otherwise attempt to pursue any such
Claim against the Company (or its duly appointed agents,
representatives or nominees) then THE PURCHASER HEREBY AGREES from
time to time and at all times, to the fullest extent possible, to
fully and effectively indemnify and hold harmless the Company (or
its duly appointed agents, representatives or nominees) on a
continuing basis and on demand against:

(a)

any Claim;
and/or

(b)

any and all Losses
suffered or incurred by the Company (or its duly appointed agents,
representatives or nominees) which would not have been suffered or
incurred but for a Claim; and/or

 

(c)

the negotiation,
handling or settlement of a Claim; and/or

(d)

any and all Losses
suffered or incurred by the Company (or its duly appointed agents,
representatives or nominees) which would not have been suffered or
incurred but for a Claim having prevented the Company (or its duly
appointed agents, representatives or nominees) for whatever reason,
from performing any existing contractual obligations owed to any
third parties under any employment, service, partnership or other
Agreement s (including letters of appointment in respect of non-
executive directorships) in force at the time of the
Claim.

 

9.

The Purchaser
hereby represent and warrant to the Company (and to each of its
duly appointed agents, representatives or nominees) on the date
hereof and on each day up to and including the date of the Public
Token Sale as follows:

(i)

The Purchaser has
full legal capacity, power and authority to execute and deliver
this Agreement and to perform Purchaser obligations
hereunder;

(ii)

this Agreement
constitutes valid and legally binding obligations, enforceable
against me in accordance with its terms;

(iii)

this Agreement is
made in reliance upon Purchaser representations to the Company (and
to each of its duly appointed agents, representatives or nominees)
that the Tokens to be acquired by me will be acquired for Purchaser
own account and The Purchaser has no intention of immediately
selling, transferring or distributing the Tokens Purchaser is
acquiring (or any part thereof) nor have Purchaser any intention of
selling, granting any participation in, or otherwise distributing
the same;

 

(iv)

Purchaser confirms
that The Purchaser has experience in investing in financial and
non-financial assets, including in companies in the development
stage and acknowledges that Purchaser is able to fend for myself,
can bear the economic risk of Purchaser transactions, and have such
knowledge and experience in financial or business matters that
Purchaser is capable of evaluating the merits and risks of the
transaction pursuant to this Agreement:

(v)

Purchaser confirms
that The Purchaser has carefully considered the risks involved in
purchasing and holding digital currencies (and in particular the
Tokens), and that Purchaser is aware that Purchaser may lose all or
part of the Consideration and that the Tokens may have a low or
even no value;

 

 

 

(vi)

Purchaser confirms
that Purchaser is aware and understand there may be additional
risks in connection with the transactions envisioned herein that
are not currently known or that are or may be currently deemed
immaterial;

 

(vii)

Purchaser is not a
national citizen resident or green-card holder of any jurisdiction
which prohibits Purchaser entry into this Agreement and the
performance of the terms of this Agreement and Purchaser
obligations hereunder;

(viii)

Purchaser confirms
that Purchaser is not, and have not been involved in any type of
activity associated with money laundering or terror financing, nor
violated any provision of: (a) the Proceeds of Crime Act 2015 of
Gibraltar (as amended from time to time); or (b) the U.S. Foreign
Corrupt Practices Act of 1977 as amended; or (c) the UK Bribery Act
(2010); or (d) Sections 290-297 of the Israeli Penal Law 1977
(Bribery Transactions), the Israeli Prohibition on Money Laundering
Law, 2000; or

(e) any other
anti-money laundering anti-corruption or anti bribery statute or
legislation in any part of the world, nor have Purchaser ever been
subject to any investigation by or have received a request for
information from any governmental body relating to money laundering
corruption or bribery under any statute or legislation. The
Purchaser hereby consent to the Company (and any of its duly
appointed agents, representatives or nominees) running any checks
or enquiries with third parties and The Purchaser hereby waive any
privacy or other right in connection therewith and acknowledges
that any breach of this representation by me will entitle the
Company to terminate this Agreement with immediate
effect;

 

(ix)

Purchaser confirms
that Purchaser is aware and understand the uncertain nature of
digital currencies and tokens and that neither the Company nor any
of its duly appointed agents, representatives or nominees are
regulated by any central bank nor other government authority;
and

(x)

Purchaser shall
promptly respond and fully collaborate with all requests made by
the Company or any third-party service providers appointed by the
Company to carry out KYC/AML services in respect of the sale of
Tokens.

 

10.

Purchaser
acknowledges and agrees that this Agreement shall terminate upon
the earlier of:

(i)

the date of the
Public Token Sale;

(ii)

60 calendar days
following the date of the Company’s announcement that the
Public Token Sale has not taken place or is to be cancelled;
and

(iii)

the payment or
setting aside of payment of amounts due to the Purchaser upon a
dissolution of the Company which shall include (a) a voluntary
termination of operations of the Company, (b) a general assignment
for the benefit of the Company’s creditors or (c) any other
liquidation, dissolution or winding up of the Company whether
voluntary or involuntary.

 

 

11.

Purchaser agrees
that:

(i)

any provision of
this Agreement may be amended, waived or modified only upon the
written consent of the Company and the Purchaser;

(ii)

Purchaser is not
entitled to vote or receive dividends or be deemed a shareholder of
the Company, nor will anything contained herein be construed to
confer on Purchaser any of the rights of a shareholder of the
Company or any right to vote for the election of directors or upon
any matter submitted to shareholders at any meeting thereof, or to
give or withhold consent to any corporate action or to receive
notice of meetings, or to receive subscription rights or
otherwise;

(iii)

unless otherwise
specified in this Agreement, none of the rights or obligations
contained herein may be assigned or novated, by operation of law or
otherwise, by

 

 

 

me
without the prior express written consent of the Company or any of
its duly appointed agents, representatives or
nominees;

 

(iv)

Purchaser shall (at
Purchaser own expense) promptly execute and deliver all such
documents, and do all such things, as the Company or any of its
duly appointed agents, representatives or may from time to time
reasonably require for the purpose of giving full effect to the
provisions of this Agreement;

(v)

if this Agreement
is translated into any language other than English, the English
language text shall prevail;

(vi)

this Agreement and
any disputes or claims arising out of or in connection with its
subject matter or formation (including non-contractual disputes or
claims) are governed by and construed in accordance with the laws
of Gibraltar;

(vii)

Subject to
subparagraph (viii) below, Purchaser irrevocably agrees that the
courts of Gibraltar have exclusive jurisdiction to settle any
dispute or claim that arises out of or in connection with this
Agreement or its subject matter or formation (including
non-contractual disputes or claims);

(viii)

Purchaser irrevocably agrees that the
provisions relating to arbitration and dispute resolution contained
in clauses 48 to 52 (inclusive) of the draft Token Sale Terms and
Conditions appearing in Schedule 1 to this Agreement are deemed to
be incorporated into this Agreement by reference and form a part
hereof; and

 

(ix)

Purchaser irrevocably agrees that the
provisions relating to data protection contained in clauses 56 to
61 (inclusive) of the draft Token Sale Terms and Conditions
appearing in Schedule 1 to this Agreement are deemed to be
incorporated into this Agreement by reference and form a part
hereof. The Purchaser hereby consent to the Company and its
duly appointed agents, representatives or nominees controlling and
processing Purchaser personal data in accordance with the Data
Protection Act 2004 and use the personal information The Purchaser
has and will provide to the Company and its duly appointed agents,
representatives or nominees from time to time:

(a)

to be able to
supply the Tokens and other goods and services to
Purchaser;

(b)

to process
Purchaser payment for the Tokens and other goods and services to be
provided to Purchaser; and

(c)

in accordance with
the Company’s privacy policy which forms part of this
Agreement and which can be found by visiting the Company’s
website at https://www.blockexmarkets.com.

 

 

 

12.

Purchaser agrees that
save as the context requires and save as otherwise defined in this
Agreement capitalised words used in this Agreement shall have the
meanings respectively attributed to them in this paragraph 12 and the rules of interpretation set out in
this paragraph 12 shall apply in this
Agreement:

(i)

“Claim” shall include any claim
(whether present, future, actual or contingent and of whatsoever
nature and howsoever arising, and arising out of or in connection
with any act, matter, cause or thing (including claims for or
relating to any payment or repayment of monies, indemnity, security
or provisions of goods or services)), action, proceeding, demand or
judgement of whatsoever nature in each case which relates to this
Agreement;

(ii)

“Losses” shall include any and all
liabilities, costs, expenses, damages, fines, impositions or losses
(including but not limited to any direct, indirect or consequential
losses, loss of profit, loss of earnings, loss of reputation and
all

 

 

 

interest, penalties
and legal costs and all other reasonable professional costs and
expenses and any associated value added tax) of whatsoever nature
and/or judgement sums (including interest thereon);

 

(iii)

“Tokens” shall mean the Digital
Asset Exchange Tokens (DAXT) more particularly described in the
White Paper;

(iv)

a reference to a
paragraph is to a paragraph of this Agreement;

(v)

a
“person” includes a natural person, corporate or
unincorporated body (whether or not having separate legal
personality) and that person's personal representatives, successors
or permitted assigns;

(vi)

words in the
singular include the plural and in the plural, include the
singular;

(vii)

a reference to one
gender includes a reference to the neuter and the other
gender;

(viii)

where the words
“include” “includes”
“including” or “in particular” are used in
this Agreement, they are deemed to have the words "without
limitation" following them;

(ix)

any obligation in
this Agreement on a person not to do something includes an
obligation not to agree or allow that thing to be
done;

(x)

the words
“other” and “otherwise” are illustrative
and shall not limit the sense of the words preceding
them;

 

(xi)

references to any
legal terms, for any action, remedy, method of judicial proceeding,
legal document, legal status, court, official or any other legal
concept or thing shall, in respect of any jurisdiction other than
Gibraltar, be deemed to include a reference to what most nearly
approximates to the Gibraltar legal term in that jurisdiction;
and

(xii)

references to times
of the day are, unless the context requires otherwise, to Gibraltar
time and references to a day are to a period of 24 hours running
from midnight on the previous day.

 

This
Agreement may be executed in any number of counterparts, each of
which is an original and which together have the same effect as if
each Party had signed the same document. Transmission of an
executed copy of this Agreement (or a counterpart thereof) by
e-mail (in PDF, JPEG or other similar format) shall take effect as
delivery of an executed original of this Agreement.

 

ALTERNATIVELY

 

This
Agreement may be accepted and become binding by its acceptance on
the Company’s website.

 

 

 

Dated
this 25th day of January
2018

 

 

 

SIGNED
by or on behalf of )

the
PURCHASER

 

 

 
... Name:

 

 

 

 

 

 

 

 

 

The
Company hereby accepts and confirms the above terms and conditions.
In the event of the occurrence of any of the events specified in
paragraph 10 above, the Company agrees to
use its reasonable commercial endeavours to first satisfy the
claims of all of its secured and unsecured creditors in full and
thereafter to return any surplus monies (if any) on a pro rata
basis amongst those persons (including the Purchaser) who may have
entered into Agreements with the Company similar to this
Agreement.

 

 

 

Dated
25th day of January
2018

 

 

SIGNED
for and on behalf of the Company

 

 
... Name:

 

 

 

 

 

 

 

 

 

Schedule 1

 

 

 

Draft Token Sale Terms & Conditions

 

 

 

 

PLEASE READ THESE TOKEN SALE TERMS AND CONDITIONS
CAREFULLY.

 

PLEASE TAKE INDEPENDENT LEGAL ADVICE BEFORE ACCEPTING THESE TERMS
AND CONDITIONS OR PARTICIPATING IN THE BLOCKEX LTD TOKEN
SALE.

 

 

NOTE THAT CLAUSES 46 TO 52 (INCLUSIVE) (DISPUTE RESOLUTION.
ARBITRATION) CONTAIN BINDING
ARBITRATION PROVISIONS AND A CLASS ACTION WAIVER, WHICH AFFECT
PURCHASER’S LEGAL RIGHTS.

 

NOTE THAT PURCHASER ARE WAIVING PURCHASER’S RIGHTS AND
CLAIMS, AND INDEMNIFYING, BLOCKEX LTD IN CLAUSES 34
TO 38
INCLUSIVE.

 

IF PURCHASER DO NOT AGREES TO ALL OF THESE TERMS, DO NOT PURCHASE
DAXT TOKENS.

 

 

Parties

 

 

 

Purchaser’s
purchase of tokens being offered for sale (“Tokens” and each a
“Token”) during
the Pre-Sale Period or the Sale Period (as these terms are defined
below) by BLOCKEX LTD hereinafter referred to as the
“Company”), is
subject to these terms and conditions of sale (“Terms”). Each of Purchaser and
Company is a “Party” and, together, the
“Parties” in
these Terms.

 

By
purchasing Tokens from the Company during the Token Sale, Purchaser
will be bound by these Terms and any terms incorporated by
reference. If Purchaser have any questions regarding these Terms,
please

contact
the Company at: CONCIERGE@BLOCKEX.COM

 

 

PURCHASER
AND COMPANY HEREBY AGREES AS FOLLOWS:

 

 

 

Definitions
and Interpretation

 

1.

In these Terms,
save where the context requires, the following capitalised terms
shall have respective meanings ascribed to them
follows:

 

 

 

“Claim” shall include any claim
(whether present, future, actual or contingent and of whatsoever
nature and howsoever arising, and arising out of or in connection
with any act, matter, cause or thing (including claims for or
relating to any payment or repayment of monies, indemnity, security
or provisions of goods or services)), action, proceeding, demand or
judgement of whatsoever nature or howsoever arising;

 

 

“Completion Condition” the
occurrence of closing of the ICO
sale will immediately trigger the closure of the Sale
Period;

 

“Losses” shall include any and all
liabilities, costs, expenses, damages, fines, impositions or losses
(including but not limited to any direct, indirect or consequential
losses, loss of profit, loss of earnings, loss of reputation and
all interest, penalties and legal costs and all other reasonable
professional costs and expenses and any associated value added tax)
of whatsoever nature and/or judgement sums (including interest
thereon);

 

“Securities” shall include the
meanings ascribed to in the Financial Services (Markets in
Financial Instruments) Act of Gibraltar (as awarded from time to
time); in the Financial Services (Investment and Fiduciary Token
Utility) Act of Gibraltar; the Prospectuses Act of Gibraltar or any
other relevant legislation in Gibraltar (and “Security”
shall be construed accordingly); and the terms
“security” and “securities” shall have the
broadest possible interpretation as these terms might be
interpreted under the laws of other jurisdictions which are
analogous or similar to the laws which regulate
“Securities” or otherwise;

 

 

“Financial Instruments” shall
include the meaning ascribed to it in the Financial Services
(Markets in Financial Instruments) Act of Gibraltar or any other
relevant legislation in Gibraltar (and “Financial
Instrument” shall be construed accordingly); and the terms
“financial instrument” and “financial
instruments” shall have the broadest possible interpretation
as these terms might be interpreted under the laws of other
jurisdictions which are analogous or similar to the laws which
regulate “Financial Instruments” or
otherwise;

 

“Refund Address” shall mean the
wallet address (if different from the Token Receipt Address) that
Purchaser provide to the Company to which any refund of Payment
Currency will be made by the Company in accordance with clause
26 below;

 

“Pre-Sale Completion Condition” the
occurrence of ending of the pre-sale offer will immediately trigger
the closure of the Pre-Sale Period;

 

 

“Pre-Sale Period” shall mean the
public pre-sale period commencing on 00:01 GMT 18/12/2018 and
ending on the earlier of (i) 23:59 GMT 27/01/2018 or (ii) the
satisfaction of the Pre-Sale Completion Condition;

 

 

“Sale Period” shall mean the public
crowd sale period commencing on 00:01 GMT on 28/01/2018 and ending
on the earlier of (i) 23:59 GMT 16/02/2018 or (ii) the satisfaction
of the Pre-Sale Completion Condition;

 

 

“Token Receipt Address” shall mean
the address which Purchaser provide to the Company that relates to
Purchaser’s Ethereum wallet which supports the ERC-20 token
standard in order to receive any Tokens Purchaser purchase from the
Company; and

 

 

 

“Token Sale” shall mean the public
sale of Tokens by the Company during the Pre-Sale Period and the
Sale Period.

 

 

2.

In these
Terms:

(a)

a reference to
these Terms shall include these Terms as amended or varied from
time to time;

(b)

unless the context
otherwise requires references to a recital, clause, sub-clause or
Schedule are to a recital, clause, sub-clause or Schedule (as the
case may be) of these Terms;

(c)

the recitals,
Schedules and any appendices hereto form part of these Terms and
shall have effect as if set out in full in the body of these Terms
and any reference to these Terms includes the recitals, Schedules
and any appendices hereto;

(d)

clause, schedule
and paragraph headings shall not affect the interpretation of these
Terms;

(e)

a ‘third
party’ and a ‘person’ includes a natural person,
corporate or unincorporated body (whether or not having separate
legal personality) and that person’s personal
representatives, successors or permitted assigns;

 

(f)

a reference to a
company shall include any company, corporation or other body
corporate, wherever and however incorporated or
established;

(g)

the clause headings
do not form part of these Terms and are for convenience only and
shall not be taken into account in the construction or
interpretation of these Terms;

(h)

the expressions
“hereunder”, “herein”, “hereof”
and “hereto” and similar expressions shall be construed
as references to these Terms as a whole and not limited to the
particular clause or provision in which the relevant reference
appears;

(i)

any phrase
introduced by the terms “including”,
“include”, “in particular” or any similar
expression shall be construed as illustrative and shall not limit
the sense of the words preceding those terms;

(j)

words in the
singular shall include the plural and vice versa; and

(k)

unless the context
otherwise requires, a reference to one gender shall include a
reference to the neuter and the other genders.

 

White
Paper

 

3.

The latest version
of the Company’s white paper is available at the following
website link: www.daxt.io (the “White Paper”). Important
information about the Token and the Token Sale and procedures and
specifications are provided in the White Paper, including in
particular certain legal considerations, risks and disclosures. By
purchasing Tokens, Purchaser acknowledges and accept that Purchaser
have read, understood the entirety of the White Paper and have no
objection to any of the content contained therein.

 

 

Token
Sale Procedures and Specifications

 

4.

Important
information about the procedures and material specifications of the
Token Sale is provided on the Company’s website
www.blockexmarkets.com, including, but not limited to, details
regarding the timing and pricing of the Token Sale, the amount of
Tokens the Company will sell, and the Company’s anticipated
use of the Token Sale proceeds. By purchasing Tokens, Purchaser
acknowledges and accept that Purchaser have read, understood these
procedures and material specifications and have no objection to the
same.

 

 

 

Eligibility

 

 

 

5.

In order to be
eligible to participate in the Token Sale and to log into the Token
Sale portal to make a purchase, Purchaser will have to undergo the
Company’s white-listing process to verify that Purchaser are
a unique individual or entity (“White-Listing Process”). On the
Token Sale portal via the www.blockexmarkets.com website, Purchaser
will be prompted to provide the Company with, amongst other things,
Purchaser’s full name or the name of an entity Purchaser
represent, address and country of residence, and e-mail address
(Purchaser’s “User
Credentials”). In addition, Purchaser will be asked to
indicate the number of Tokens Purchaser would like to acquire,
Purchaser’s Token Receipt Address and Purchaser’s
Refund Address (if different). Once Purchaser submit the form with
all mandatory information, the Company will process it and send
Purchaser an e-mail (the “Welcome E-Mail”) to
Purchaser’s e-mail address provided in order to verify it.
Purchaser need to have access to Purchaser’s e-mail address
in order to verify it. Purchaser will have to click on a unique
link (the “Unique
Link”) provided in the Company’s e-mail to
Purchaser to start Token Sale process. The Company reserves the
right to prescribe additional guidance regarding specific wallet
requirements for participation in the Token Sale.

 

 

Purchase
and Sale of Tokens

 

6.

The Euro standard
price per Token during the Sale Period is 1 Euro (the
“Standard Price Per
Token”).

 

7.

Subject to clause
9 below, the Euro standard price per
Token during the Pre-Sale Period is

0.75
Euro (the “Pre-Sale Price Per
Token”).

 

8.

The Pre-Sale Price
Per Token shall only be applicable during the Pre-Sale Period until
the Company has sold 30m worth of Tokens at the Pre-Sale Price Per
Token. Once the Company has sold 30m worth of Tokens at the
Pre-Sale Price Per Token, Tokens shall be sold at the Standard
Price Per Token.

 

9.

While the Pre-Sale
Price Per Token and the Price Per Token is set in Euro, Purchaser
may pay for Tokens in Bitcoin
(BTC) or in Euro (a “Payment Currency”).

 

10.

In the Welcome
E-mail, Purchaser will have an option to follow the Unique Link.
Purchaser will be prompted to select a number of Tokens for
purchase within stated limits. After Purchaser have selected a
number of Tokens, the Token Sale portal will display the Exchange
Rate (as defined below) that will be applied to calculate
Purchaser’s Purchase Price (as defined in clause 11 below). The Company reserves the right, in its
sole discretion, to modify any of the procedures described herein
to account for network congestion or other technical
challenges.

 

 

11.

Purchaser’s
quoted “Purchase Price” in the Payment Currency is
equal to the number of Tokens Purchaser wish to purchase multiplied
by Euro value of the Pre-Sale Price Per Token or the Standard Price
Per Token (as applicable) divided by the Exchange Rate (as defined
below). The “Exchange Rate” will be the exchange rate
fixed by the Company for conversion of non-payment currency into
the Payment Currency. When calculating the Exchange Rate between
non-payment currency and the Payment Currency, the Company will
rely on coinmarketcap.com within approximately from one (1) to
twelve (12) hours

 

 

 

prior
to the time of the start of the Pre-Sale Period or the Sale Period
(as the case may be) and this will be published by the Company on
the following website: www.daxt.io.

 

 

12.

The Purchase Price
must be received in full during the Pre-Sale Period or the Sale
Period (as the case may be). If the Company has not received the
full payment of the Purchase Price in accordance with these Terms
within the Pre-Sale Period or the Sale Period (as applicable), the
Company reserves the right to void Purchaser’s purchase
request and refuse to accept Purchaser’s payment of the
Purchase Price. For the avoidance of doubt, the Purchase Price will
be deemed to be paid in full once the Company have received three
(3) network confirmations of the transaction. The Company reserves
the right, in its sole discretion, to modify any of the timelines
described herein to account for network congestion or other
technical challenges.

 

13.

Purchaser must pay
the Purchase Price by sending the correct quantity of the Payment
Currency to the unique wallet address displayed to Purchaser via
the Token Sale portal. Purchaser’s purchase is not guaranteed
until the Company receives the full amount of the Purchase
Price.

 

 

14.

Purchaser agrees
not to share Purchaser’s User Credentials or
Purchaser’s Unique Link provided in the Welcome Email with
any other person for the purpose of facilitating their unauthorized
access to the Token Sale. If Purchaser do share Purchaser’s
User Credentials or Purchaser’s Unique Link with anyone the
Company will consider their activities to have been authorised by
Purchaser. Purchaser alone are responsible for any acts or
omissions that occur during the Token Sale through the use of
Purchaser’s User Credentials or Purchaser’s Unique
Link. The Company reserves the right to suspend or block
Purchaser’s access to the Token Sale upon suspicion of any
unauthorized access or use, or any attempt thereof, by anyone using
Purchaser’s User Credentials or Purchaser’s Unique
Link.

 

15.

The Company will
deliver the quantity of Tokens, either to an ERC-20 wallet notified
to the Company the Token Recipient Address or directly to
Purchaser’s wallet account with the Company, that Purchaser
purchase, within a reasonable period following the end of the Sale
Period. Purchased Tokens will be locked for transfer (within the
smart contract) (with the exception of one transfer to the Token
Recipient Address as above) in accordance with the
following:

 

a.

10% of the Tokens
purchased will become transferable to third party wallets (and the
lock released) on the date of delivery of such Tokens to the
Purchaser;

 

 

b.

Thereafter, a
further 10% of the total number of Tokens purchased shall become
transferable to third party wallets exactly 7 days from the time of
delivery under 15a. above, and a further 10% of such number of
Tokens after each following 7-day period, until 100% of such Tokens
have become transferable.

 

16.

At any time during
the Token Sale and at its sole discretion, the Company may by
notice on the following website: www.blockexmarkets.com temporarily
or permanently suspend the Token Sale and/or the Token Sale portal
for security or other reasons and such suspension shall take effect
from the moment of publication of such notice until the same is
updated or removed from its website (the “Suspension Period”). Purchaser
agrees not to send any contributions in any Payment Currency during
such a Suspension Period and accept the risk that any contribution
sent during such a Suspension Period may be lost in its entirety.
The

 

 

 

Company
is not responsible or liable for returning or refunding any losses
incurred by Purchaser due to sending a contribution during a
Suspension Period.

 

 

Intended
Purpose and Use of Tokens

 

17.

The intended
purpose of the Tokens is to enable a Token holder to have access to
BlockEx ICO’s on BlockEx Markets subject to the relevant
number of Tokens being purchased during the Sale Period or held
thereafter as more particularly set out in the latest version of
the Company’s white paper issued and published by the Company
on the following website: www.daxt.io (the
“Token Utility”)
and to provide such other utility as the Company may in the future
decide to in respect of the Tokens subject to compliance with all
applicable laws. Purchaser hereby agrees that Purchaser have read
the latest version of Company’s white paper which can be
found on the following website link www.daxt.io and have understood
its content in its entirety. Purchaser hereby also confirm that Purchaser
have taken independent legal advice before accepting these
Terms. The Token Utility is expected to be provided in due
course through an online software platform (the “Platform”) that the Company or one
of its affiliates will look to develop. More specifically, Tokens
are intended to facilitate the provision of the Token Utility by
the Company (or an affiliate of the Company) to the users of the
Platform.

 

 

18.

The purchase,
ownership, receipt, transmission or possession of Tokens carries no
rights of whatsoever nature, express or implied, other than the
right to use Tokens in accordance with the Token Utility as a means
to enable usage of and interaction within the Platform if the
Platform is successfully completed and deployed. The Terms shall
not and cannot be considered as an invitation to enter into an
investment or purchase any Security security or financial
instrument. The Terms do not constitute or relate in any way, nor
should they be considered, as an offering of Securities securities
or financial instruments in any jurisdiction. The Terms do not
include or contain any information or indication that might be
considered as a recommendation or that might be used to base any
investment decision. Tokens are utility tokens and are not intended
to be used as an investment. Further, Purchaser must note that
Tokens do not represent or confer any ownership right or stake,
share, equity or security or equivalent rights, or any right to
receive future revenue shares or voting rights or intellectual
property rights in the Company or any affiliate thereof. Acquiring
Tokens shall not grant any right or influence over the
Company’s (or any affiliate thereof) organisation and
governance to Purchaser, other than rights relating to the
potential future provision and receipt of the Token Utility,
subject to the limitations and conditions contained in these Terms
and any other terms and conditions that will apply to the usage of
the Platform. The Company does not and will not operate or maintain
the Platform and as such, the Company has no responsibility or
liability for the Platform or any ability to control third
parties’ use of the Platform. The Tokens are not intended to
be a representation of money (including electronic money),
Security, security, commodity, financial instrument, bond, debt
instrument or any other kind of financial instrument or investment.
Protections offered by the applicable law in relation to the
purchase and sale of the aforementioned financial instruments
and/or investments do not apply to the purchase and sale of Tokens
and neither these Terms nor the White Paper constitute a prospectus
or offering document, and are not an offer to sell, nor the
solicitation of an offer to buy any investment or financial
instrument in any jurisdiction. Tokens should not be acquired in
any case or circumstance for speculative or investment purposes
with the expectation of making a profit on immediate resale or
otherwise.

 

 

 

19.

Any Purchaser agreeing, covenanting or
undertaking to acquire Tokens acknowledges and understands that the
Company (or any affiliate thereof as applicable) does not provide
any promise covenant undertaking guarantee assurance representation
or warranty or create any expectation that it will establish
complete and/or deploy an operative Platform and therefore neither
the Company nor any of its affiliates provide any promise covenant
undertaking guarantee assurance representation or warranty create
any expectation that the Tokens may at any time be used to purchase
any goods or services whatsoever or that the Token Utility or the
Platform will be established completed deployed delivered and/or
realised. Purchaser acknowledges and understand therefore
that the Company, or any affiliate thereof, assumes no liability or
responsibility whatsoever or howsoever arising for any loss or
damage whatsoever or howsoever (whether actual contingent direct
indirect consequential or otherwise) that would result from or
relate to the incapacity or inability to use Tokens for any or all
of their intended purposes including the Token
Utility.

 

 

20.

Tokens do not
constitute the provision of any goods and/or services or provide
any Token Utility as at the date of these Terms.

 

 

Possible
Migration of Tokens.

 

21.

The Tokens are
being created as ERC-20 tokens on the Ethereum protocol. The
Company reserves the right to migrate the ERC-20 based Tokens to
another protocol and to generate replacement Tokens on the new
protocol in the future, should the Company determine, in its sole
discretion, that doing so is necessary or useful to the operation
of the Platform.

 

22.

Should the Company
decide to migrate the Tokens, the Company will notify Purchaser via
the e-mail address Purchaser provided to the Company at the time of
the Token Sale. Purchaser are solely responsible for updating the
Company should Purchaser’s contact information
change.

 

Scope
of Terms

 

23.

Unless otherwise
stated herein, these Terms govern only Purchaser’s purchase
of Tokens from the Company during the Pre-Sale Period and the Sale
Period.

 

24.

Any potential or
future use of Tokens in connection with the provision or receipt of
any Token Utility or otherwise will be governed by other applicable
terms and policies (collectively, the “Service Terms and Policies”). The
Service Terms and Policies will be made available at the following
website www.daxt.io following the Sale Period. The Company and/or
its affiliates may revise and/or update the Service Terms and
Policies from time to time at their sole and absolute discretion.
In the event of any conflict between these Terms and the Service
Terms and Policies, the Service Terms and Policies shall
prevail.

 

 

Cancellation;
Refusal of Purchase Requests

 

25.

Purchaser’s
purchase of Tokens from the Company during the Pre-Sale Period and
the Sale Period is final, and there are no refunds or cancellations
except as may be required by applicable law or regulation, if any.
The Company reserves the right to refuse or cancel Token purchase
requests at any time in its sole and absolute discretion. The
Company accordingly reserves the right at its sole discretion to
refuse to accept Purchaser’s purchase

 

 

 

for
Tokens after the end of the Sale Period. In such an event, the
consideration paid by Purchaser shall be rejected or
refunded.

 

 

26.

At any time prior to
satisfaction of the Pre-Sale Completion Condition and/or the
Completion Condition, the Company may either temporarily suspend or
permanently abort the Token sale. During any period of suspension
or in the event that the Token sale is aborted, Tokens will not be
available for purchase and any form of crypto-currency sent by
Purchaser to the Company for the purposes of acquiring Tokens shall
be returned to Purchaser. To the extent the Company, in its sole
discretion, decides to make a refund any refund will be made to the
Refund Address in the Payment Currency sent by Purchaser to the
Company for the purposes of acquiring Tokens and not in United
States Dollars, Euros or any other fiat currency. The Company is
not responsible for any delays, losses, costs, non-delivery of
refunds or of Tokens, or other issues arising from the failure to
provide, or providing an inaccurate or incomplete Refund Address or
Token Receipt Address.

 

Token
Creation and Allocation

 

 

27.

Important
information about the Company’s creation and intended use of
the Tokens is set out in the White Paper and at the following
website link www.daxt.io. By purchasing Tokens, Purchaser
acknowledges that Purchaser have read, understand, and have no
objection to the Company’s creation and intended use of the
Tokens as described in the White Paper and at the following website
link www.daxt.io.

 

Acknowledgment
and Assumption of Risks

 

28.

Purchaser
acknowledges and agrees that there are risks associated with
purchasing Tokens, holding Tokens, selling Tokens and/or and using
Tokens for providing or receiving Token Utility, as such risks
disclosed and explained in Schedule 1 of these Terms. If Purchaser
have any questions regarding these risks, please contact the
Company at concierge@blockex.com. BY PURCHASING TOKENS, PURCHASER
EXPRESSLY ACKNOWLEDGES, ACCEPT AND ASSUME THESE RISKS.

 

29.

As set out in these
Terms, the Tokens are not being structured or sold as Securities
securities or any other form of investment product. Accordingly,
none of the information presented in these Terms is intended to
form the basis for any investment decision, and no specific
recommendations are made or intended. The Company expressly
disclaims any and all responsibility for any direct or
consequential loss or damage of any kind whatsoever arising
directly or indirectly from: (i) reliance on any information
contained in the Terms, (ii) any error, omission or inaccuracy in
any such information or (iii) any action resulting from such
information.

 

 

Security

 

30.

Purchaser are
responsible for implementing all reasonable and appropriate
measures for securing the wallet, vault or other storage mechanism
Purchaser use to receive and hold Tokens that Purchaser purchase
from the Company, including any requisite private key(s) or other
credentials necessary to access such storage mechanism(s). If
Purchaser’s private key(s) or other access credentials are
lost, Purchaser may lose access to Purchaser’s Tokens. The
Company shall not be responsible for any security measures relating
to Purchaser’s receipt, possession, storage, transfer or
potential future use of Tokens nor is

 

 

 

the
Company under any obligation to recover any Tokens and the Company
hereby excludes (to the fullest extent permitted under applicable
law) any and all liability for any security breaches or other acts
or omissions which result in Purchaser’s loss of (including
Purchaser’s loss of access to) Tokens. The Company shall not
be responsible or liable for any losses, costs, or expenses
relating to any lost access credentials.

 

 

Personal
Information

 

31.

The Company may
determine, in its sole and absolute discretion, that it needs to
undertake due diligence on certain prospective purchasers of
Tokens. As part of the Company’s due diligence process it may
request that Purchaser send the Company certain information about
Purchaser. Purchaser agrees to provide the Company with such
information promptly upon request, and Purchaser acknowledges and
accept that the Company may refuse to sell Tokens to Purchaser
until Purchaser provide such requested information in a form that
is satisfactory to the Company and until the Company has determined
that it is permissible to sell Purchaser Tokens under applicable
laws or regulations.

 

 

Taxes

 

 

32.

The Purchase Price
is exclusive of all applicable taxes. Purchaser are solely
responsible for determining what, if any, taxes apply to
Purchaser’s purchase of Tokens, including, but not limited
to: sales, use, value added, and any other taxes that may be
applicable. It is also Purchaser’s sole responsibility to
withhold, collect, report, pay, settle and/or remit the correct
taxes to the appropriate tax authorities in such jurisdiction where
Purchaser may be liable to pay tax. The Company is not responsible
for withholding, collecting, reporting, paying, settling and/or
remitting any sales, use, value added, or any other tax arising
from Purchaser’s purchase of Tokens.

 

Representations
and Warranties

 

 

33.

By purchasing
Tokens, Purchaser hereby represent and warrant to the Company and
agrees and acknowledges that:

(a)

Purchaser have read
and understood these Terms;

(b)

PURCHASER
ACKNOWLEDGES AND AGREES THAT THERE ARE RISKS ASSOCIATED WITH
PURCHASING TOKENS, OWNING TOKENS, TRANSFERRING TOKENS, SELLING
TOKENS AND USING TOKENS FOR THE PROVISION OR RECEIPT OF SERVICES
(INCLUDING THE TOKEN UTILITY) ON THE PLATFORM INCLUDING (BUT NOT
NECESSARILY LIMITED TO) THE RISKS DESCRIBED IN SCHEDULE 1
HERETO;

(c)

Purchaser have
sufficient understanding of technical and business matters
(including those that relate to the Token Utility and the
Platform), the functionality, usage, storage, transmission
mechanisms and other material characteristics of cryptographic
tokens, token storage mechanisms (such as token wallets),
blockchain technology and blockchain-based software systems to
understand these Terms and to appreciate the risks and implications
of purchasing the Tokens;

 

(d)

Purchaser
understand the restrictions and risks associated with the creation
of Tokens as set forth herein, and acknowledges and assume all such
risks;

(e)

Purchaser have
obtained sufficient information about the Company, the
Company’s officers and agents and representatives and about
the Tokens to make an informed decision to purchase the
Tokens;

 

 

 

(f)

Purchaser
understand that the Tokens confer only the potential future right
to receive Token Utility and confer no other rights of any form
with respect to the Platform, the Company, or any affiliate thereof
including, but not limited to, any voting, distribution,
redemption, liquidation, proprietary (including all forms of
intellectual property), or other financial or legal
rights;

 

(g)

The Tokens do not
constitute shares or equities or Securities securities Financial
Instruments financial instruments or investments in any form in any
jurisdiction;

(h)

The information
available on the White Paper and at the following
website: www.daxt.io (including
these Terms) (the “Available
Information”) does not constitute a prospectus or
offer document of any sort and is not intended to constitute an
offer of securities in any jurisdiction or a solicitation for
investment in securities and Purchaser are not bound to enter into
any contract or binding legal commitment and no cryptocurrency or
other form of payment is to be accepted on the basis of the
Available Information;

(i)

No regulatory
authority has examined or approved of the Available Information, no
action has been or will be taken under the laws, regulatory
requirements or rules of any jurisdiction and the publication,
distribution or dissemination of all or any part of the Available
Information to Purchaser does not imply that the applicable laws,
regulatory requirements or rules have been complied
with;

 

(j)

The Available
Information, the undertaking and/or the completion of the Token
Sale, or future trading of the Tokens on any exchange or market
(regulated, unregulated, primary, secondary or otherwise), shall
not be construed, interpreted or deemed by Purchaser as an
indication of the merits of the Company, the Tokens, the Token
Sale, the Platform and/or the Available Information;

(k)

The distribution or
dissemination of the Available Information any part thereof or any
copy thereof, or acceptance of the same by Purchaser, is not
prohibited or restricted by the applicable laws, regulations or
rules in Purchaser’s jurisdiction, and where any restrictions
in relation to possession of the Available Information are
applicable, Purchaser have observed and complied with all such
restrictions at Purchaser’s own expense and without liability
to the Company;

(l)

In the case where
Purchaser wish to purchase any Tokens, the Tokens are not to be
construed, interpreted, classified or treated as: (i) any kind of
currency or commodity; (ii) debentures, stocks or shares issued by
any person or entity (whether the Company or otherwise); (iii)
rights, options or derivatives in respect of such debentures,
stocks or shares; (iv) rights under a contract for differences or
under any other contract the purpose or pretended purpose of which
is to secure a profit or avoid a loss; (v) units in a collective
investment scheme; (vi) units in a business trust;

 

(vii)
derivatives of units in a business trust; (viii) any other security
or class of securities; or (ix) any type of investment (as such
term is defined by the Financial Services (Investments and
Fiduciary Services) Act 1989-47 of Gibraltar (as amended or
re-enacted from time to time) or as such term might be construed
under similar legislation in any other part of the
world);

(m)

Purchaser are
purchasing Tokens to potentially receive the Token Utility on the
Platform at a future point in time being aware of the commercial
risks associated with the Company and the Platform; Purchaser are
not purchasing Tokens for any other uses or purposes, including,
but not limited to, any investment, speculative or other financial
purposes;

(n)

Purchaser’s
purchase of Tokens complies with applicable law and regulation in
Purchaser’s jurisdiction or in any jurisdiction the laws of
which Purchaser may be subject to including, but not limited to,
(i) legal capacity and any other threshold

 

 

 

requirements in
Purchaser’s jurisdiction for the purchase of the Tokens and
entering into contracts with the Company, (ii) any foreign exchange
or regulatory restrictions applicable to such purchase, and (iii)
any governmental or other consents that may need to be
obtained;

 

(o)

Purchaser’s
purchase of Tokens shall be made in full compliance with any and
all applicable legal and tax obligations to which Purchaser may be
subject in any relevant jurisdiction;

(p)

If Purchaser are
purchasing Tokens on behalf of any entity, Purchaser are authorised
to accept these Terms on such entity’s behalf and that such
entity will be responsible for any breach of these Terms by
Purchaser or any other employee or agent of such entity (references
to “Purchaser” or “Purchaser” in these
Terms refer to Purchaser and such entity, jointly);

(q)

Purchaser are not
citizen, lawful or permanent resident of or domiciled in Singapore,
China or in any jurisdiction or country where the offer for sale or
purchase or sale or possession or distribution of Tokens or use
would be contrary to any law or regulation, or which would subject
the Company, including its affiliates, or any of their products or
services to any registration, licensing or other authorisation
requirement within such jurisdiction or country;

 

(r)

Purchaser are not
(i) a citizen or resident of a geographic area in which access to
or use of the Tokens, the offer for sale of the Tokens, the sale of
the Tokens and/or the acceptance of delivery of the Tokens is
prohibited by applicable law, decree, regulation, treaty, or
administrative act, (ii) a citizen or resident of, or located in, a
geographic area that is subject to the U.S. or other sovereign
country sanctions or embargoes, or (iii) an individual, or an
individual employed by or associated with an entity, identified on
the U.S. Department of Commerce’s Denied Persons or Entity
List, the U.S. Department of Treasury’s Specially Designated
Nationals or Blocked Persons Lists, or the U.S. Department of
State’s Debarred Parties List. Purchaser agrees that if
Purchaser’s country of residence or other circumstances
change such that the above representations are no longer accurate,
that Purchaser will immediately cease using the Tokens and the
Platform. If Purchaser is registering to purchase hold sell or use
the Tokens or the Platform on behalf of a legal entity, Purchaser
further represent and warrant that (i) such legal entity is duly
organised and validly existing under the applicable laws of the
jurisdiction of its organisation, and (ii) Purchaser are duly
authorized by such legal entity to act on its behalf;

(s)

Purchaser live in a
jurisdiction that allows the Company to offer and sell the Tokens
and does not prohibit Purchaser from participating through a token
sale without requiring any local authorisation;

 

(t)

Making a
contribution and receiving Tokens under these Terms is not unlawful
or prohibited under the laws of Purchaser’s jurisdiction or
under the laws of any other jurisdiction to which Purchaser may be
subject and any contribution shall be made in full compliance with
applicable laws (including, but not limited to, in compliance with
any tax obligations to which Purchaser may be subject in any
relevant jurisdiction);

(u)

If
Purchaser’s country of residence or other circumstances
change such that the above representations are no longer accurate,
that Purchaser will immediately cease using the Tokens and/or the
Token Utility;

(v)

Any contribution to
be made by Purchaser for the purchase of Tokens is not derived from
or related to any unlawful activities, including but not limited to
money laundering or terrorist financing activities;

 

 

 

(w)

Purchaser shall not
use the Tokens to finance, engage in, or otherwise support any
unlawful activities;

 

(x)

Purchaser’s
Payment Currency shall be transferred to the Company from a digital
wallet that: (i) is registered in Purchaser’s name or in the
name of a person who is duly authorised by Purchaser to transfer
the Payment Currency and is eligible to do so under clause 5; or (ii) is not located in or that is not
registered in the name of a person located in or resident of any
country or territory that has been designated by the Financial Act
ion Task Force as a “non-cooperative country or
territory”;

(y)

If Purchaser are an
individual, Purchaser are at least 18 years of age and have
sufficient legal capacity to accept these Terms and enter into a
binding Agreement with the Company;

(z)

The acceptance by
Purchaser of these Terms and the entry into a binding Agreement
with the Company will not result in any violation of, be in
conflict with, or constitute a material default under: (i) any
provision of Purchaser’s constitutional or organisational
documents (if applicable); (ii) any provision of any judgment,
decree or order to which Purchaser are a party, by which Purchaser
are bound or to which any of Purchaser’s material assets are
subject; and/or (iii) any material Agreement , obligation, duty or
commitment to which Purchaser are a party or by which Purchaser are
bound; and

 

(aa)
Purchaser are not the subject of any sanctions administered or
enforced by any country, government or international authority nor
are Purchaser resident or established (in the case of a corporate
entity) in a country or territory that is the subject of a
country-wide or territory wide sanction imposed by any country or
government or international authority.

 

Waiver,
Release and Indemnity

 

34.

Purchaser hereby
irrevocably and unconditionally waive, release and discharge the
Company and its past, present and future employees, officers,
directors, contractors, consultants, equity holders, suppliers,
vendors, service providers, parent companies, subsidiaries,
affiliates, agents, representatives, joint ventures, predecessors,
successors and assigns (the “Company Parties”) from all and any
Claims which Purchaser have or may at any time have against any of
the Company Parties.

 

35.

To the fullest
extent permitted by applicable law, Purchaser also release the
Company and the Company Parties from all and any responsibility,
Losses, Claims, of every kind and nature, known and unknown
(including, but not limited to, claims of negligence), arising out
of or related to disputes between users and the acts or omissions
of third parties. Purchaser expressly waive any rights Purchaser
may have under any statute or common law principles that would
otherwise limit the coverage of this release to include only those
claims which Purchaser may know or suspect to exist in
Purchaser’s favour at the time of agreeing to this
release.

 

 

36.

To the fullest extent
permitted by applicable law, Purchaser will fully and effectively
indemnify, defend and hold harmless the Company and the Company
Parties from and against any and all Claims and Losses that arise
from or relate to: (i) Purchaser’s understanding and
interpretation of and/or reliance on the Available Information;
(ii) Purchaser’s purchase possession, transmission and/or use
of Tokens; (iii) Purchaser’s responsibilities or obligations
under these Terms; (iv) Purchaser’s violation of these
Terms;

(v)
Purchaser’s violation of any rights of any other person or
entity; (vi) any failure or

 

 

 

inability of the
Company to develop or deliver or deploy the Token Utility and/or
the Platform; (vii) Purchaser’s use or inability to use at
any time the Tokens or the Platform;

 

(viii)
any security risk or security breach or security threat or security
attack or any theft or loss of data including but not limited to
hacker attacks, losses of password, losses of private keys, or
anything similar; (ix) any mistakes or errors in code, text, or
images involved in the Token Sale or in any of the Available
Information; (x) any information contained in or omitted from the
Available Information; (xi) the volatility in pricing of Tokens in
any countries and/or on any exchange or market (regulated,
unregulated, primary, secondary or otherwise); and (xii)
Purchaser’s failure to properly secure any private key to a
wallet containing Tokens.

 

37.

The Company
reserves the right to exercise sole control over the defence, at
Purchaser’s expense, of any Claim subject to the indemnity by
Purchaser contained in clause 36 (the
“Indemnity”).
The Indemnity is in addition to, and not in lieu of, any other
indemnities set forth in the White Paper or in any written
Agreement between Purchaser and the Company.

 

 

38.

Purchaser agrees
and acknowledges that the Company is not liable for any direct
indirect special incidental consequential or other losses of any
kind in tort contract or otherwise (including but not limited to
loss of revenue income or profits or loss of use or data or loss of
reputation or loss of any economic or other opportunity of
whatsoever nature or howsoever arising) arising out of or in
connection with any acceptance of or reliance on the Available
Information or any part thereof by Purchaser.

 

Limitation
of Liability

 

39.

TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW: (I) UNDER NO CIRCUMSTANCES WILL
THE COMPANY OR ANY OF THE COMPANY PARTIES BE LIABLE FOR ANY DIRECT,
INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR EXEMPLARY LOSS OF
ANY KIND (INCLUDING, BUT NOT LIMITED TO, WHERE RELATED TO LOSS OF
REPUTATION LOSS OF REVENUE, INCOME OR PROFITS, LOSS OF USE OR DATA,
OR DAMAGES FOR BUSINESS INTERRUPTION) ARISING OUT OF OR IN ANY WAY
RELATED TO THE PURCHASE, SALE OR USE OF THE TOKENS OR OTHERWISE
RELATED TO THESE TERMS, REGARDLESS OF THE CAUSE OR FORM OF ACTION,
WHETHER BASED IN CONTRACT, TORT (INCLUDING, BUT NOT LIMITED TO,
SIMPLE NEGLIGENCE, WHETHER ACTIVE, PASSIVE OR IMPUTED), OR ANY
OTHER LEGAL OR EQUITABLE BASIS (EVEN IF THE PARTIES OR ANY OF THE
COMPANY PARTIES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES
AND REGARDLESS OF WHETHER SUCH LOSSES WERE FORESEEABLE); AND (II)
UNDER NO CIRCUMSTANCES WILL THE AGGREGATE LIABILITY OF COMPANY AND
THE COMPANY PARTIES (JOINTLY), WHETHER IN CONTRACT, TORT (INCLUDING
NEGLIGENCE, WHETHER ACTIVE, PASSIVE OR IMPUTED), OR OTHER LEGAL OR
EQUITABLE BASIS, ARISING OUT OF OR RELATING TO THESE TERMS OR THE
USE OF OR INABILITY TO USE THE TOKENS, EXCEED THE AMOUNT PURCHASER
PAY TO THE COMPANY FOR THE ACQUISITION OF TOKENS. THE LIMITATIONS
SET FORTH HEREIN WILL NOT LIMIT OR EXCLUDE LIABILITY FOR THE GROSS
NEGLIGENCE, FRAUD OR INTENTIONAL, WILLFUL OR RECKLESS MISCONDUCT OF
COMPANY.

 

 

 

40.

Some jurisdictions
do not allow the limitation or exclusion of liability for
incidental or consequential damages. Accordingly, some of the
limitations of clause 39 may not apply
to Purchaser.

 

 

Disclaimers

 

41.

TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, TO THE MAXIMUM EXTENT THAT THIS
DISCLAIMER APPLIES TO PURCHASER AND EXCEPT AS OTHERWISE EXPRESSLY
SPECIFIED IN WRITING BY THE COMPANY: (A) THE TOKENS ARE SOLD ON AN
“AS IS” AND “AS AVAILABLE” BASIS, WITHOUT
ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND WHATSOEVER, AND THE
COMPANY EXPRESSLY DISCLAIMS ALL IMPLIED REPRESENTATIONS AND/OR
WARRANTIES AS TO THE TOKENS, INCLUDING, WITHOUT LIMITATION, IMPLIED
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
TITLE AND NON-INFRINGEMENT; (B) THE COMPANY DOES NOT REPRESENT OR
WARRANT THAT THE TOKENS ARE RELIABLE, CURRENT OR ERROR-FREE, MEET
PURCHASER’S REQUIREMENTS, OR THAT DEFECTS IN THE TOKENS WILL
BE CORRECTED; AND (C) THE COMPANY CANNOT AND DOES NOT REPRESENT OR
WARRANT THAT THE TOKENS OR THE DELIVERY MECHANISM FOR TOKENS ARE
FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS.

 

 

42.

The Company does
not make or purport to make, and hereby disclaims, any
representation warranty undertaking or covenant in any form
whatsoever to Purchaser and to any entity or person.

 

43.

Some jurisdictions
do not allow the exclusion of certain warranties or disclaimer of
implied terms in contracts with consumers, so some or all of the
exclusions of warranties and disclaimers in clause 41 may not apply to Purchaser.

 

44.

Neither these Terms
nor the Whitepaper constitute a prospectus or offering document,
and are not an offer to sell, nor the solicitation of an offer to
buy any investment or financial instrument in any jurisdiction.
Tokens should not be acquired for speculative or investment
purposes with the expectation of making a profit on immediate or
future re-sale.

 

45.

No regulatory
authority has examined or approved of any of the information set
out in these Terms and/or the Whitepaper. No such action has been
or will be taken under the laws, regulatory requirements or rules
of any jurisdiction. The publication, distribution or dissemination
of these Terms and/or the Whitepaper does not imply that applicable
laws, regulatory requirements or rules have been complied
with.

 

 

 

Dispute
Resolution. Arbitration

 

46.

PLEASE READ THE
FOLLOWING CLAUSES CAREFULLY BECAUSE THEY CONTAINS CERTAIN
PROVISIONS, SUCH AS A BINDING ARBITRATION CLAUSE AND CLASS ACTION
WAIVER, WHICH AFFECT PURCHASER’S LEGAL RIGHTS. THIS SECTION
REQUIRES PURCHASER TO ARBITRATE CERTAIN DISPUTES AND CLAIMS WITH
COMPANY AND LIMITS THE MANNER IN WHICH

 

 

 

PURCHASER CAN SEEK
RELIEF FROM THE COMPANY AND THE COMPANY PARTIES.

 

 

47.

Binding Arbitration. Except for any
disputes, Claims, suits, actions, causes of action, demands or
proceedings (collectively, “Disputes”) in which either
Purchaser or the Company seeks injunctive or other equitable relief
for the alleged unlawful use of intellectual property, including,
without limitation, copyrights, trademarks, trade names, logos,
trade secrets or patents, Purchaser and the Company (i) save as
expressly provided herein, waive Purchaser’s respective
rights to have any and all Disputes arising from or related to
these Terms resolved in any court, and (ii) waive Purchaser’s
respective rights to a jury trial. Instead, Purchaser and the
Company will arbitrate Disputes through binding arbitration (which
is the referral of a Dispute to one or more persons charged with
reviewing the Dispute and making a final and binding determination
to resolve it instead of having the Dispute decided by a judge or
jury in court) as provided in these Terms.

 

48.

No Class Arbitrations. Class Actions or
Representative Actions. Any Dispute arising out of or
related to these Terms is personal to Purchaser and the Company and
will be resolved solely through individual arbitration and will not
be brought as a class arbitration, class action or any other type
of representative proceeding. There will be no class arbitration or
arbitration in which an individual attempts to resolve a Dispute as
a representative of another individual or group of individuals.
Further, a Dispute cannot be brought as a class or other type of
representative action, whether within or outside of arbitration, or
on behalf of any other individual or group of
individuals.

 

 

49.

Gibraltar Arbitration Act. The
enforceability of clauses 46 to 52
(inclusive) (Dispute Resolution.
Arbitration) will be both substantively and procedurally
governed by and construed and enforced in accordance with the
Gibraltar Arbitration Act 1895, to the maximum extent permitted by
applicable law.

 

50.

Notice; Informal Dispute Resolution.
Each Party will notify the other in writing of any Dispute within
thirty (30) days of the date it arises, so that the other Party may
attempt in good faith to resolve the Dispute informally. Notice to
the Company shall be sent by e-mail to the Company at concierge@blockex.com .
Notice to Purchaser shall be either posted on the Company’s
website or, if available, will be sent by email to any email
address Purchaser provide the Company during the Token Sale.
Purchaser’s notice must include (i) Purchaser’s name,
postal address, email address and telephone number, (ii) a
description in reasonable detail of the nature or basis of the
Dispute, and (iii) the specific relief that Purchaser are seeking.
If Purchaser and the Company cannot agree how to resolve the
Dispute within thirty (30) days after the date the notice is
received by the applicable party, then either Purchaser or the
Company may, as appropriate and in accordance with clauses 46 to
52 (inclusive) (Dispute Resolution. Arbitration),
commence an arbitration proceeding or, to the extent specifically
provided for in clauses 46 to 52
(inclusive) (Dispute Resolution.
Arbitration), file a claim in court.

 

 

51.

Process. Any arbitration will occur in
Gibraltar and will be in the English language. The arbitration will
be conducted confidentially by a single arbitrator appointed in
accordance with the Gibraltar Arbitration Act, which is hereby
incorporated by reference. The courts of competent jurisdiction
located in Gibraltar will have exclusive jurisdiction over any
appeals and the enforcement of an arbitration decision or
award.

 

 

 

52.

Authority of Arbitrator. Subject to the
Gibraltar Arbitration Act and these Terms, the arbitrator will have
(i) the exclusive authority and jurisdiction to make all procedural
and substantive decisions regarding a Dispute, including the
determination of whether a Dispute is arbitrable, and (ii) the
authority to grant any remedy that would otherwise be available in
court, provided, however, that the arbitrator does not have the
authority to conduct a class arbitration or a representative or
class action, which is expressly prohibited by these Terms. The
arbitrator may only conduct an individual arbitration and may not
consolidate more than one individual’s claims, preside over
any type of class or representative proceeding or preside over any
proceeding involving more than one individual.

 

 

Governing
Law and Jurisdiction

 

53.

These Terms will be
governed by and construed and enforced in accordance with the laws
of Gibraltar, without regard to conflict of law rules that would
cause the application of the laws rules or principles of any other
jurisdiction. Any Dispute between the Parties arising out of or
relating to these Terms or its subject matter or formation
(including non-contractual Disputes or claims) that is not subject
to arbitration will be resolved exclusively in the courts of
Gibraltar.

 

 

Severability

 

54.

If any term clause
or provision of these Terms or any part of any term, clause or
provision of these Terms is held unlawful void or unenforceable or
becomes invalid or illegal it shall be severable from these Terms
and will not affect the validity or enforceability of any remaining
part of that term, clause or provision, or any other term, clause
or provision of these Terms.

 

55.

If any term clause
or provision of these Terms or any part of any term, clause or
provision of these Terms is held unlawful void or unenforceable or
becomes invalid or illegal it shall be deemed modified to the
minimum extent necessary to make it valid, legal and enforceable.
If such modification is not possible, the relevant provision or
part-provision shall be deemed deleted. Any modification to or
deletion of a provision or part-provision under these Terms shall
not affect the validity and enforceability of the rest of the
Terms.

 

Data
Protection.

 

56.

As part of the
White-Listing Process, the Company may request certain information
from Purchaser, such as Purchaser’s User Credentials and
additional user information, as well as additional information in
order to verify Purchaser’s identity. This may require the
Company to request documents to include, but not be limited to,
certified copies of documents verifying: (i) Purchaser’s
identity; (ii) Purchaser’s address; (iii) the source of
Purchaser’s wealth; (iv) the source of funds used for the
purposes of acquiring Tokens; and

 

(v) any
other documents or data from which Purchaser can be identified.
Purchaser’s User Credentials, additional user information as
well as the items referred to in sub-paragraphs (i) to (v) of this
clause 56 shall hereinafter be referred
to as Purchaser’s “Personal Data”.

 

57.

The Company will
not disclose Purchaser’s Personal Data except as expressly
permitted under these Terms and otherwise only with Purchaser prior
consent. However, the Company may be required to disclose
Purchaser’s Personal Data and/or certain other information
about Purchaser to relevant competent authorities to the extent
required by law or by an

 

 

 

Order
of a Court or competent authority. By accepting these Terms,
Purchaser expressly agrees and consent to Purchaser’s
Personal Data being disclosed to such third parties to any extent
required for the purposes of compliance with applicable
law.

 

 

58.

The Company will
process Purchaser’s Personal Data in accordance with the Data
Protection Act 2004, as may be amended (the “Data Protection Act”), and
Purchaser agrees that the Company, as the data controller, may
directly or through the Company’s service providers or agents
process Purchaser ‘s Personal Data for any one or more of the
following purposes:

(a)

the purchase of the
Tokens pursuant to these Terms;

(b)

providing Purchaser
with information about the Company and its products and range of
services;

(c)

compliance with
relevant ‘Know Purchaser’s Client’ and Anti-Money
Laundering requirements under applicable law;

(d)

management of
enquiries and complaints;

(e)

processing of
transactions related to the Token Sale;

 

(f)

opening,
maintaining or operating a bank account in the Company’s
name;

(g)

subject to clauses
56 to 61
(inclusive) (Data
Protection), resolving any disputes with
Purchaser;

(h)

producing summary
information for statistical, regulatory and audit purposes;
or

(i)

any other
reasonable purposes in accordance with applicable law.

 

59.

Under the Data
Protection Act Purchaser have a right to access Purchaser’s
Personal Data held by the Company, and it is Purchaser’
responsibility to inform the Company of any changes to
Purchaser’s Personal Data to ensure such data remains
accurate. Purchaser also have a right to object to
Purchaser’s Personal Data being processed for the purposes of
direct marketing. Purchaser agrees to provide a written request to
the Company should Purchaser wish to enforce these
rights.

 

60.

Purchaser agrees
that the Company may, for the purposes set out in clause 58, permit the transfer of Purchaser’s
Personal Data to any jurisdiction, whether or not inside the
European Economic Area, and that by accepting these Terms Purchaser
are authorizing and expressly consent to the processing of
Purchaser’s Personal Data by the Company, its agents and/or
its service providers, provided that where Purchaser’s
Personal Data is processes by entities other than the Company, its
agents or its service providers, the Company shall seek
Purchaser’s prior written consent in respect of such
processing.

 

 

61.

Purchaser
acknowledges, accept and understand that these Terms, insofar as
they relate to the controlling and processing of Purchaser’s
Personal Data by the Company and/or its agents or service providers
are only relevant to the processing of Purchaser’s Personal
Data for the purposes set out in clause 58, and that Purchaser may be requested to sign
and/or agrees to a separate and additional Agreement and/or
additional terms and conditions (any of these a
“Supplementary Agreement ” and together
“Supplementary Agreement (s)”) in order to access any
future Platform or service or application and/or use the Tokens
and/or provide or receive the Token Utility or otherwise use and
interact with the Platform. Such Supplementary Agreement (s) will
govern the Terms under which Purchaser’s Personal Data is
collected, stored and processed (as well as Purchaser’s
individual rights under applicable data protection laws) in
connection with Purchaser’s use of the Platform and/or the
Tokens.

 

Miscellaneous

 

 

 

62.

These Terms and the
Available Information constitute the entire Agreement between
Purchaser and the Company relating to Purchaser’s purchase of
Tokens from the Company. In the event of any conflict between these
Terms and the Available Information, these Terms will
prevail.

 

 

63.

The Company may
make changes to these Terms from time to time (including during the
Token Sale) as reasonably required to comply with applicable law or
regulation. If the Company makes such changes, it will post the
amended Terms at the following website: www.daxt.io. It shall be
Purchaser’s obligation to ensure Purchaser are aware of the
latest version of these Terms during the Token Sale. The amended
Terms will be effective immediately.

 

64.

The Company may
assign its rights and obligations under these Terms without
Purchaser’s consent.

 

 

65.

The Company’s
failure to exercise or enforce any right or provision of these
Terms will not operate as a waiver of such right or provision. The
Company will not be liable for any delay or failure to perform any
obligation under these Terms where the delay or failure results
from any cause beyond the Company’s reasonable
control.

 

66.

Purchasing Tokens
from the Company does not create any form of partnership, joint
venture or any other similar relationship between Purchaser and the
Company.

 

67.

Except as otherwise
provided herein, these Terms are intended solely for the benefit of
Purchaser and the Company and are not intended to confer
third-party beneficiary rights upon any other person or
entity.

 

68.

Purchaser agrees
and acknowledges that all Agreement s, notices, disclosures, and
other communications that the Company provides to Purchaser,
including these Terms, will be provided in electronic
form.

 

69.

Purchaser and the
Company acknowledges that, in accepting these Terms, neither
Purchaser nor the Company do so on the basis of, and do not rely
on, any representation, warranty or other provision except as
expressly provided therein, and all conditions, warranties or other
terms implied by statute or common law are hereby excluded to the
fullest extent permitted by law.

 

 

*        

*        

*        

*        

*

 

 

 

Schedule 1

(Risks
relating purchasing, holding, selling and/or using
Tokens)

 

 

 

Important Note: Purchaser should
carefully consider and evaluate each of the following risk factors
and all other information contained in these Terms before deciding
to participate in the Token Sale. To the best of the
Company’s knowledge and belief, all risk factors which are
material to Purchaser in making an informed judgment to participate
in the Token Sale have been set out below. If any of the following
considerations, uncertainties or material risks develops into
actual events, the business, financial position and/or results of
operations of the Company and the maintenance and level of usage of
the Tokens could be materially and adversely affected. In such
cases, the trading price of Tokens (in the case where they are
listed on an exchange or market (regulated, unregulated, primary,
secondary or otherwise)) could decline due to any of these
considerations, uncertainties or material risks, and Purchaser may
lose all or part of Purchaser’s Tokens or the economic value
thereof.

 

 

 

Important Note: As set out in these
Terms, the Tokens are not being structured or sold as Securities
securities Financial Instruments financial instruments or any other
form of investment product. Accordingly, none of the information
presented in these Terms (including this Schedule 1) is intended to
form the basis for any investment decision, and no specific
recommendations are made or intended. The Company expressly
disclaims any and all responsibility for any direct or
consequential loss or damage of any kind whatsoever arising
directly or indirectly from: (i) reliance on any information
contained in these Terms or in the Available Information, (ii) any
error, omission or inaccuracy in any such information, or (iii) any
action resulting from such information.

 

 

By
purchasing, holding and using Tokens, Purchaser expressly
acknowledges understand and assume the following
risks:

 

Risk
of Losing Access to Tokens Due to Loss of Private
Key(s)

1.

A private key, or a
combination of private keys, is necessary to control and dispose of
Tokens stored in Purchaser’s digital wallet or vault.
Accordingly, loss of requisite private key(s) associated with
Purchaser’s digital wallet or vault storing Tokens may result
in loss of such Tokens. Moreover, any third party that gains access
to such private key(s), including by gaining access to login
credentials of a hosted wallet service Purchaser use, may be able
to misappropriate Purchaser’s Tokens. Any errors or
malfunctions caused by or otherwise related to the digital wallet
or vault Purchaser choose to receive and store Tokens, including
Purchaser’s own failure to properly maintain or use such
digital wallet or vault, may also result in the loss of
Purchaser’s Tokens. Additionally, Purchaser’s failure
to precisely follow the procedures set forth in for buying and
receiving Tokens, including, for instance, if Purchaser provide an
incorrect Token Receipt Address, or provides an address that is not
ERC-20 compatible, may result in the loss of Purchaser’s
Tokens.

 

 

Risks
Associated with the Ethereum Protocol

2.

Because Tokens and
the Platform are based on the Ethereum protocol, any malfunction,
breakdown or abandonment of the Ethereum protocol may have a
material adverse effect on the Platform or Tokens and their value.
Moreover, advances in cryptography, or technical advances such as
the development of quantum computing, could present risks to the
Tokens and the Platform by rendering ineffective the cryptographic
consensus mechanism that

 

 

 

underpins the
Ethereum protocol. Smart contract concepts, the underlying software
application and software platform (i.e. the Ethereum blockchain) is
still in an early development stage and unproven. There is no
warranty or assurance that the process for creating Tokens will be
uninterrupted or error-free and there is an inherent risk that the
software could contain defects, weaknesses, vulnerabilities,
viruses or bugs causing, amongst other things, the complete loss of
Payment Currency contributions and/or Tokens.

 

 

Risk
of Mining Attacks

3.

As with other
decentralized cryptographic tokens based on the Ethereum protocol,
the Tokens are susceptible to attacks by miners in the course of
validating Token transactions on the Ethereum blockchain,
including, but not limited, to double-spend attacks, majority
mining power attacks, and selfish-mining attacks. Any successful
attacks present a risk to the Platform and the Tokens, including,
but not limited to, accurate execution and recording of
transactions involving Tokens. Purchaser understand and accept that
the network of miners will ultimately be in control of the delivery
of the tokens via the smart contract mechanism, and that a majority
of miners could agree at any point to make changes, updates,
modifications to, or effect a deletion or destruction of the smart
contract mechanism, and that such a scenario could lead to the
Tokens losing intrinsic value and/or functionality.

 

 

Risk
of Hacking and Security Weaknesses

4.

Hackers or other
malicious groups or organizations may attempt to interfere with the
Platform or the Tokens in a variety of ways, including, but not
limited to, malware attacks, denial of service attacks,
consensus-based attacks, Sybil attacks, smurfing and spoofing.
Furthermore, because the Platform is based on open-source software,
there is a risk that a third party or a member of the
Company’s team may intentionally or unintentionally introduce
weaknesses into the core infrastructure of the Platform, which
could negatively affect the Platform and the Tokens and their value
including the Token Utility.

 

Risks
Associated with Markets for Tokens

5.

The Tokens are
intended to be used solely on the Platform and the Company may not
enable or otherwise facilitate any secondary trading or external
valuation of Tokens. This may restrict the contemplated avenues for
using Tokens to the provision or receipt of the Token Utility, and
could therefore create illiquidity risk with respect to any Tokens
Purchaser own. Even if secondary trading of Tokens is facilitated
by third-party exchanges, such exchanges may be relatively new and
subject to little or no regulatory oversight, making them more
susceptible to fraud or manipulation. Furthermore, to the extent
that third parties do ascribe an external exchange value to Tokens
(e.g., as denominated in a digital or fiat currency), such value
may be extremely volatile and diminish to zero. If Purchaser are
purchasing the Tokens as a form of investment on a speculative
basis or otherwise, or for a financial purpose, with the
expectation or desire that their inherent, intrinsic or
cash-equivalent value may increase with time, Purchaser assume all
risks associated with such speculation or actions, and any errors
associated therewith, and accept that the Tokens are not offered by
the Company or its affiliates on an investment or speculative
basis. Purchaser further acknowledges that any funds Purchaser
consider to be invested in the Company, the Platform or the Tokens
will not be protected, guaranteed or reimbursed by any
governmental, regulatory or other entity, and will not, for
instance be guaranteed by the Gibraltar Deposit Guarantee Scheme,
the Gibraltar Investor Compensation Scheme, and is unlikely to be
protected by any equivalent scheme in a jurisdiction outside of
Gibraltar.

 

 

 

Risks
Associated with Uncertain Regulations and Enforcement
Actions

6.

Blockchain
technology allows new forms of interaction and that it is possible
that certain jurisdictions will apply existing regulations on, or
introduce new regulations addressing, blockchain technology based
applications, which may be contrary to the current setup of the
smart contract implemented in the Token Sale and which may, inter
alia, result in substantial modifications to the smart contract
and/or the Platform and/or the Token Utility, including its
termination and the loss of Purchaser’s Tokens. Additionally,
regulation of the business of the Company may be uncertain in
various jurisdictions owing to the potential crossovers between the
treatment of the business of the Company across financial services
and blockchain technology laws and regulations. It is not known
what regulatory framework the proposed Platform or Token Utility
and associated applications will be caught by, the nature and
obligations that will be imposed on Company in order to comply with
any such regulatory framework or when/if Company will even be able
to apply to be regulated so that it may lawfully carry out its
proposed business activities.

 

 

Risk
of Uninsured Losses

 

7.

Unlike bank
accounts or accounts at some other financial institutions, Tokens
are uninsured unless Purchaser specifically obtain private
insurance to insure them. Thus, in the event of loss or loss of
utility value, there is no public insurer or private insurance
arranged by the Company, to offer any recourse whatsoever to
Purchaser.

 

Risks
Associated with Uncertain Regulations and Enforcement
Actions

8.

The regulatory
status of the Tokens and distributed ledger technology is unclear
or unsettled in many jurisdictions. It is difficult to predict how
or whether regulatory agencies may apply existing regulation with
respect to such technology and its applications, including the
Platform and the Tokens. It is likewise difficult to predict how or
whether legislatures or regulatory agencies may implement changes
to law and regulation affecting distributed ledger technology and
its applications, including the Platform and the Tokens. Regulatory
actions could negatively impact the Platform and the Tokens in
various ways, including, for purposes of illustration only, through
a determination that Tokens are a regulated financial instrument
that require registration or licensing. The Company may cease
operations in a jurisdiction in the event that regulatory actions,
or changes to law or regulation, make it illegal to operate in such
jurisdiction, or commercially undesirable to obtain the necessary
regulatory approval(s) to operate in such
jurisdiction.

 

Risks
Arising from Taxation

9.

The tax
characterization of Tokens is uncertain. Purchaser must seek
Purchaser’s own tax advice in connection with purchasing,
holding and utilizing Tokens, which may result in adverse tax
consequences to Purchaser, including, without limitation,
withholding taxes, transfer taxes, value added taxes, income taxes
and similar taxes, levies, duties or other charges and tax
reporting requirements.

 

 

Risk
of Alternative Networks

10.

It is possible that
alternative networks could be established in an attempt to
facilitate services that are materially similar to the Token
Utility. The Platform may compete with these alternative networks,
which could negatively impact the Platform the Token Utility and/or
Tokens and their respective value.

 

Risk
of Insufficient Interest in the Platform or Distributed
Applications

 

 

 

11.

It is possible that
the Platform will not be used by a large number of individuals,
companies and other entities or that there will be limited public
interest in the creation and development of distributed ecosystems
(such as the Platform) more generally. Such lack of use or interest
could negatively impact the development of the Platform and
therefore the potential utility of Tokens. including the Token
Utility. The creation and issue of the Tokens and the development
of the Platform may be abandoned for a number of reasons, including
lack of interest from the public, lack of funding, lack of
commercial success or prospects (e.g. caused by competing
projects). Purchaser therefore understand and accept that there is
no warranty or assurance that, even if the Platform is partially or
fully developed and launched, Purchaser will receive any benefits
through the Tokens that Purchaser hold.

 

 

Risks
Associated with the Development and Maintenance of the
Platform

12.

The Platform is yet
to be developed and may undergo significant changes over time
during its development. Although the Company intends for the Tokens
and Platform to follow the specifications set forth in the White
Paper, and will take commercially reasonable steps toward those
ends (subject to internal business description), the Company may
have to make changes to the specifications of the Tokens or
Platform for any number of legitimate reasons. This could create
the risk that the Tokens or Platform, as further developed and
maintained, may not meet Purchaser’s expectations at the time
of purchase. Furthermore, despite the Company’s good faith
efforts to develop and maintain the Platform, it is still possible
that the Platform will experience malfunctions or otherwise fail to
be adequately developed or maintained, which may negatively impact
the Platform and Tokens and their value.

 

 

Risk
of an Unfavorable Fluctuation of Ethereum and Other Currency
Value

13.

The Company intends
to use the proceeds from selling Tokens to fund, amongst other
things, the maintenance and development of the Platform, as
described in the White Paper. The proceeds of the sale of Tokens
will be denominated in the Payment Currency, and may be converted
into other cryptographic and fiat currencies. In addition, some
pre-sales of the Tokens may also be denominated in fiat currencies.
If the value of the Payment Currency or other currencies fluctuates
unfavourably during or after the Sale Period, the Company may not
be able to fund development, or may not be able to maintain the
Platform in the manner that it intended. In addition to the usual
market forces, there are several potential events which could
exacerbate the risk of unfavorable fluctuation in the value of ETH
including uncertainties created by the lack of resolution to the
bitcoin scaling debate, the possibility of another so-called
“Hard Fork” of bitcoin if one of the competing camps in
the scaling debate decides to force the issue; another DAO-like
attack on the Ethereum network; or significant security incidents
or market irregularities at one or more of the major cryptocurrency
exchanges.

 

 

Risk
of Hard Fork

14.

The Platform will
need to go through substantial development works as part of which
it may become the subject of significant conceptual, technical and
commercial changes before release. As part of the development, an
upgrade to the Token may be required (hard-fork of Token) and if
Purchaser decide not to participate in such upgrade, Purchaser may
no longer be able to use Purchaser’s Tokens and any
non-upgraded Tokens may lose their functionality in
full.

 

Risk
of Dissolution of the Company or Platform

 

 

 

15.

It is possible
that, due to any number of reasons, including, but not limited to,
an unfavourable fluctuation in the value of the Payment Currency
(or other cryptographic and fiat currencies), decrease in the
Tokens’ utility due to negative adoption of the Platform, the
failure of commercial relationships, or intellectual property
ownership challenges, the Platform may no longer be viable to
operate and the Company may dissolve.

 

 

Risks
Arising from Lack of Governance Rights

16.

Because Tokens
confer no governance rights of any kind with respect to the
Platform or Company or its corporate affiliates, all decisions
involving the Platform or Company will be made by Company at its
sole and absolute discretion, including, but not limited to,
decisions to discontinue the Platform, to create and sell more
Tokens for use in the Platform, or to sell or liquidate the
Company. These decisions could adversely affect the Platform and
the Tokens Purchaser hold (including their value).

 

Risks
Involving Cloud Storage

17.

If the Company
decides to provide a decentralized cloud storage service to
individual and institutional clients, including users and
applications, the Token Utility is susceptible to a number of risks
related to the storage of data in the cloud. The Token Utility may
involve the storage of large amounts of sensitive and/or
proprietary information, which may be compromised in the event of a
cyber-attack or other malicious activity. Similarly, the Token
Utility may be interrupted and files may become temporarily
unavailable in the event of such an attack or malicious activity.
Because users can use a variety of hardware and software that may
interface with the Platform, there is the risk that the Token
Utility may become unavailable or interrupted based on a failure of
interoperability or an inability to integrate these third-party
systems and devices that the Company does not control with the
Company’s Token Utility. The risk that the Token Utility may
face increasing interruptions and the Platform may face additional
security vulnerabilities could adversely affect the Platform and
therefore the future utility and value of any Tokens that Purchaser
hold.

 

 

Unanticipated
Risks

18.

Cryptographic
tokens such as the Tokens are a new and untested technology. In
addition to the risks included in these Terms, there are other
risks associated with Purchaser’s purchase, holding and use
of Tokens, including those that the Company cannot anticipate. Such
risks may further materialize as unanticipated variations or
combinations of the risks discussed in this Schedule
1.

 

Risks
identified in the White Paper

 

19.

There are several
other risks which have been identified and which are set out in the
White Paper (in particular in the ‘Legal Considerations,
Risks and Disclaimer’ section of the White Paper) (the
“Risks Identified in the
White Paper”). The Risks Identified in the White Paper
are deemed to be incorporated by reference into these Terms and
Purchaser are strongly urged to review and consider the Risks
Identified in the White Paper as well as the risks set out
above.

 

*        

*        

*        

*        

*Blueprint

  Exhibit
10.5

 

This
STOCK PURCHASE AGREEMENT (the “Agreement”) is
made as of February 19, 2018, by and between Blockchain Industries,
Inc., a Nevada corporation with its principal place of business at
53 Calle Palmeras, Suite 802, San Juan, PR 00901
(“BII”) and
LegatumX, Inc. (“LegatumX”), a
Delaware corporation (each a Party”, and collectively, the
“Parties”).

 

 

 

THE
PARTIES HEREBY AGREE AS FOLLOWS:

 

1.            Purchase
and Sale of Stock. Subject to the terms and conditions
hereof (including Sections 2, 8 and 9 below), LegatumX shall sell
to BII, and BII shall purchase from LegatumX [●] shares of
LegatumX’s common stock, par value $0.0001 per share, (the
“Initial
Shares”) at a price of [●] per share for an
aggregate purchase price of One Million Three Hundred Thousand (USD
$1,300,000) Dollars (the “Purchase
Price”). The Initial Shares shall equal, on a Fully-
Diluted Basis (as hereinafter defined), Thirty (30%) percent of the
outstanding capital stock of LegatumX immediately following the
Closing Date (as hereinafter defined). “Fully-Diluted
Basis” means the aggregate number of shares in
LegatumX calculated as if all outstanding stock options, warrants
and convertible securities have been exercised for or converted
into common stock and all options reserved for issuance in the
option pool have been issued and exercised for common stock.
**[NTD: The Purchase Price, and the
corresponding number of Initial Shares, presumably, will correspond
to a total ascribed value of LegatumX equal to
USD

$4,333,333.33].

 

2.            Consideration
and Issuance of LegatumX Shares. The Purchase Price shall
consist of Cash Consideration and Stock Consideration,
respectively, each as hereinafter defined.

 

 

a.            Cash
Consideration. The payments (“Cash
Consideration”) to be made by BII to Legatum, and the
corresponding number of Initial Shares allocable thereto, shall be
as follows:

 

 

 

Amount Payment
Date # of Initial Shares

 

 

Percentage of Total
Equity

 

(computed on a
Fully-Diluted Basis)

 

USD
$100,000                                                                

Closing
Date[●]20% USD $200,00090 Days
Following Closing[●]5%

 

 

 

b.            Stock
Consideration. LegatumX shall receive One Hundred Thousand
(100,000) shares of common stock of BII (the “BII Stock”) in
exchange for such number of Initial Shares equal to Five (5%)
percent of the outstanding capital stock LegatumX on a Fully-
Diluted Basis.

 

 

c.            Earnout
Adjustment. The Parties acknowledge that BII anticipates
filing with the Securities Exchange Commission (“SEC”) a Form
10 for the registration of the common stock of BII pursuant to
Section 12(b) of the Exchange Act (the “Registration
Statement”). BII shall use its commercially reasonable
efforts to have the Registration Statement declared effective by
the SEC on or before December 31, 2018 (the “Registration
Deadline”). During the one-year period beginning on
the date that the Registration Statement is declared effective by
the

 

	

2461972v.6

 

 

 

SEC and
ending on the one-year anniversary thereof (the “Earnout
Period”), BII and LegatumX shall cooperate with each
other, in good faith, in order to determine a mutually-agreeable
manner and timing for LegatumX to sell the BII Stock (the
“Earnout
Period Sales”). If LegatumX realizes gross proceeds on
the Earnout Period Sales equal to or exceeding Two Million Three
Hundred Thousand (USD $2,300,000) Dollars, BII shall receive
additional shares of LegatumX’s common stock equal to Five
(5%) percent of the outstanding capital stock LegatumX on a Fully-
Diluted Basis (the “Lower Threshold Earnout
Shares”). Alternatively, if LegatumX realizes gross
proceeds on the Earnout Period Sales equal to or exceeding Ten
Million One Hundred Thousand (USD $10,100,000) Dollars, BII shall
receive additional shares of LegatumX’s common stock equal to
Ten (10%) percent of the outstanding capital stock LegatumX on a
Fully- Diluted Basis (the “Higher Threshold Earnout
Shares”, and together with the Lower Threshold Earnout
Shares, the “Earnout
Shares”).

 

 

d.            Mandatory
Loan. If, as of the Registration Deadline, BII does not have
an effective Registration Statement, reasonably promptly
thereafter, BII shall make a cash advance, or series of cash
advances, to LegatumX in the amount of One Million (USD $1,000,000)
Dollars (the “Mandatory
Loan”). The Mandatory Loan shall be secured by a first
lien priority security interest in all of the BII Stock and shall
bear no interest. The Mandatory Loan shall become immediately due
and payable upon the earlier to occur of (i) the date the
Registration Statement is declared effective by the SEC (the
“Registration Effective
Date”) or (ii) the sale or issuance by LegatumX of New
Securities (as defined in Section 8 below) for cash in a single
transaction or series of transaction resulting in gross proceeds
equal to or in excess of Five Million (USD $5,000,000) Dollars (a
“Qualified Capital
Raise”). In the event that a Qualified Capital Raise
shall precede and occur prior to the Registration Effective Date,
LegatumX repay the full amount of the Mandatory Loan from the
proceeds of the Qualified Capital Raise. Upon the Registration
Effective Date, LegatumX shall repay the Mandatory Loan if and in
such amount as the Mandatory Loan shall remain outstanding and
unpaid, and the provisions of Section 2.c. above automatically
shall apply with respect to the sale of BII Stock by LegatumX or an
affiliate.

 

 

 

3.            Closing.
The consummation of the transactions contemplated by this Agreement
is herein referred to as the “Closing”, and
the date on which the Closing occurs is herein referred to as the
“Closing
Date.” The Closing shall take place via the electronic
exchange of documents and signatures at such other time and place
as the BII and LegatumX may mutually agree. At the Closing,
LegatumX shall deliver to BII a certificate representing the
Initial Shares against payment by BII of the Cash Consideration by
check or wire transfer and delivery by BII of a certificate
representing the BII Stock to LegatumX.

 

4.            Optional
Loan Agreement. In consideration of LegatumX entering into
this Agreement (and not in consideration of any purchase of the
Initial Shares or with respect to the Earnout Shares), LegatumX
shall have the option to obtain a loan from BII in the principal
amount of up to Five Hundred Thousand (USD $500,000) Dollars (the
“Optional
Loan”) during the second calendar quarter of 2019. The
Optional Loan shall be evidenced by a promissory note, subject to a
commercially reasonable rate of interest, as mutually agreed upon
by the Parties, and secured by a pledge of the BII Stock. The
Optional Loan term and maturity schedule shall be determined in the
discretion of BII, and the Optional Loan shall be subject
to

 

	

2461972v.6

 

 

 

such
other terms and conditions as LegatumX and BII set forth in writing
(the “Loan
Agreement”). The Parties shall enter into an
“Optional
Loan Agreement”, and the full amount of the Optional
Loan shall be transferred to LegatumX, within a commercially
reasonable amount of time after written notice requesting the
Optional Loan is provided by LegatumX to BII. For the avoidance of
doubt, LegatumX shall have no obligation to accept the Optional
Loan.

 

 

5.            Representations
and Warranties of LegatumX: LegatumX hereby represents and
warrants to BII as follows:

 

 

a.            Organization,
Standing and Authority; Execution and Delivery;
Enforceability. LegatumX is a corporation duly organized,
validly existing and in good standing under the laws of the State
of Delaware. LegatumX has all requisite power and authority to
enter into this Agreement and the other documents in order to
effectuate the transactions contemplated by this Agreement. All
acts and other proceedings required to be taken by LegatumX to
authorize the execution, delivery and performance of this Agreement
and the other transaction documents contemplated hereby and thereby
have been duly and properly taken. This Agreement has been duly
executed and delivered by LegatumX and, prior to Closing, LegatumX
will have duly executed and delivered each other transaction
document. This Agreement constitutes a legal, valid and binding
obligation of LegatumX enforceable against such person in
accordance with its terms.

 

b.            No
Conflicts; Consents; No Default. The execution, delivery and
performance by LegatumX of this Agreement, and the consummation of
the transactions contemplated hereby and thereby, do not and will
not: (i) conflict with or result in a violation or breach of any
provision of the organizational documents of LegatumX; (b) conflict
with or result in a violation or breach of any provision of any
material law or governmental order applicable to LegatumX; (c)
require the consent, notice or other action by any person under,
conflict with, result in a violation or breach of, constitute a
default or an event that, with or without notice or lapse of time
or both, would constitute a default under, result in the
acceleration of or create in any party the right to accelerate,
terminate, modify or cancel, any material contract; or (d) result
in the creation or imposition of any encumbrance on any properties
or assets of LegatumX. No consent, approval, permit, governmental
order, declaration or filing with, or notice to, any governmental
authority is required by or with respect to LegatumX in connection
with the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby.

 

 

c.            Capitalization.
The authorized capital stock of the LegatumX, immediately prior to
the Closing, consists of [●] shares of Common Stock,
[●] shares of which are issued and outstanding.

 

d.            Bonus
Plan. Under the LegatumX’s 20 Equity Incentive Plan
(the “Plan”), (i) no
shares have been issued pursuant to restricted stock purchase
agreements and/or the exercise of outstanding options, (ii) no
options have been granted and are currently outstanding and (iii)
[●] shares of Common Stock remain available for future
issuance to officers, directors, employees and consultants of the
Company. LegatumX has not made any

 

	

2461972v.6

 

 

 

representations
regarding equity incentives to any officer, employee, director or
consultant that are inconsistent with the share amounts and terms
set forth in the Company’s board minutes.

 

 

e.            Outstanding
Stock. Other than the shares reserved for issuance under the
Plan and except as may be granted pursuant to this Agreement, there
are no outstanding options, warrants, rights (including conversion
or preemptive rights and rights of first refusal), proxy or
stockholder agreements or agreements of any kind for the purchase
or acquisition from LegatumX of any of its securities.

 

f.            All
issued and outstanding shares of the LegatumX’s common stock
(i) have been duly authorized and validly issued and are fully paid
and nonassessable and (ii) were issued in compliance with all
applicable state and federal laws concerning the issuance of
securities.

 

 

g.            All
outstanding shares of common stock, and all shares of common stock
issuable upon the exercise or conversion of outstanding options,
warrants or other exercisable or convertible securities are subject
to a market standoff or “lockup” agreement of not less
than 180 days following the LegatumX’s initial public
offering.

 

 

 

h.            Liabilities.
LegatumX has no material liabilities and, to the best of its
knowledge no material contingent liabilities, except current
liabilities incurred in the ordinary course of business that have
not been, either in any individual case or in the aggregate,
materially adverse.

 

 

i.            Intellectual
Property.

 

 

 

(i)                LegatumX
is, and shall remain in perpetuity, the sole owner of any and all
work product created by any of its employees, officers, or
consultants, and of all rights it has in all creative and
copyrightable material created by it, trademarks, service marks and
other intellectual property as they may exist or may hereafter be
modified by LegatumX (collectively referred to as
“LegatumX
IP”). BII acknowledges that any use of LegatumX IP
inures to the benefit of LegatumX, including any goodwill, and that
BII will not acquire any ownership in LegatumX IP as a result of
this, or any future, Agreement. BII agrees, for itself and its
officers, directors, shareholders, employees, agents and
representatives, that all LegatumX IP shall remain and be kept in
strictest confidence and shall not be disclosed to or used by any
person or entity without the prior written consent of LegatumX. The
obligation to maintain confidentiality provided herein shall
survive any termination or expiration of the term of this Agreement
and may be enforced by injunctive relief or other equitable or
legal remedies without the necessity of proving inadequacy of legal
remedies and without proving that LegatumX or any of its respective
officers, directors, shareholders, employees, agents and
representatives would suffer irreparable harm as a result of a
violation of such confidentiality obligation.

 

(ii)                LegatumX
owns or possesses sufficient legal rights to all patents,
trademarks, service marks, trade names, copyrights, trade secrets,
licenses, information and other proprietary rights and processes
necessary for its business as now conducted and as presently
proposed to be conducted, without any known infringement of the
rights of others. There are no

 

	

2461972v.6

 

 

 

outstanding
options, licenses or agreements of any kind relating to the
foregoing proprietary rights, nor is LegatumX bound by or a party
to any options, licenses or agreements of any kind with respect to
the patents, trademarks, service marks, trade names, copyrights,
trade secrets, licenses, information and other proprietary rights
and processes of any other person or entity other than such
licenses or agreements arising from the purchase of “off the
shelf” or standard products.

 

 

(iii)                LegatumX
has not received any communications alleging that LegatumX has
violated or, by conducting its business as presently proposed to be
conducted, would violate any of the patents, trademarks, service
marks, trade names, copyrights or trade secrets or other
proprietary rights of any other person or entity.

 

 

(iv)                LegatumX
is not aware that any of its employees are obligated under any
contract (including licenses, covenants or commitments of any
nature) or other agreement, or subject to any judgment, decree or
order of any court or administrative agency, that would interfere
with their duties to LegatumX or that would conflict with
LegatumX’s business as proposed to be conducted. Each former
and current employee, officer and consultant of LegatumX has
executed a proprietary information and inventions agreement. No
former or current employee, officer or consultant of LegatumX has
excluded works or inventions made prior to his or her employment
with LegatumX from his or her assignment of inventions pursuant to
such employee, officer or consultant’s proprietary
information and inventions agreement. LegatumX does not believe it
is or will be necessary to utilize any inventions, trade secrets or
proprietary information of any of its employees made prior to their
employment by LegatumX, except for inventions, trade secrets or
proprietary information that have been assigned to
LegatumX.

 

 

j.            Full
Disclosure. LegatumX has provided BII with all information
requested by BII in connection with its decision to enter into this
Agreement. Neither this Agreement, the exhibits hereto nor any
related agreements contain any untrue statement of a material fact
nor, to the LegatumX’s knowledge, omit to state a material
fact necessary in order to make the statements contained herein or
therein not misleading.

 

 

k.            Qualified
Small Business. LegatumX represents and warrants to BII
that, to the best of its knowledge, LegatumX is a “qualified
small business” within the meaning of Section 1202(d) of the
Internal Revenue Code, as amended (the “Code”), as of
the date hereof and the Initial Shares should qualify as
“qualified small business stock” as defined in Section
1202(c) of the Code as of the date hereof.

 

l.            Shareholder
Lists. Schedule [●] contains true and complete copies
of the shareholder list of LegatumX including the following
information with respect to each shareholder of LegatumX
(“Shareholder”):

 

 

 

(i)                the
name and the mailing address of such Shareholder as reflected on
the corporate records of the Company;

 

(ii) 

the number of
shares of stock of LegatumX held by each such

Shareholder;
and

 

	

2461972v.6

 

 

 

(iii)

such
Shareholder’s proportionate share of the total equity capital
of

LegatumX.

 

 

 

6.            Representations
and Warranties of BII: BII hereby represents and warrants to
LegatumX as follows:

 

 

a.            Requisite
Power and Authority. BII has all necessary power and
authority to execute and deliver this Agreement. All action on
BII’s part required for the lawful execution and delivery of
this Agreement has been taken. Upon its execution and delivery,
this Agreement will be valid and binding obligations of BII,
enforceable in accordance with their terms, except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium or
other laws of general application affecting enforcement of
creditors’ rights.

 

 

b.            Investment
Representations. BII understands that the Initial Shares and
the Earnout Shares have been registered under the Securities Act.
BII also understands that the Initial Shares are being offered and
sold pursuant to an exemption from registration contained in the
Securities Act.

 

 

c.            All
issued and outstanding shares of BII’s common stock (i) have
been duly authorized and validly issued and are fully paid and
nonassessable and (ii) were issued in compliance with all
applicable state and federal laws concerning the issuance of
securities.

 

d.            Full
Disclosure. BII has provided LegatumX with all information
requested by LegatumX in connection with its decision to enter into
this Agreement. Neither this Agreement, the exhibits hereto nor any
related agreements contain any untrue statement of a material fact
nor, to the BII’s knowledge, omit to state a material fact
necessary in order to make the statements contained herein or
therein not misleading.

 

7.            Board
Composition: Prior to the completion of a
“Qualified
Financing” (as hereinafter defined), the board of
directors of LegatumX shall be set and remain at Three (3)
directors. BII will have the right (the “Designation
Right”) to elect at any meeting of shareholders of
LegatumX at which directors are to be elected, designated and
appointed one (1) member of the board of directors. The parties
acknowledge and agree that One (1) member of the board of directors
(the “Independent
Director”) shall have no material relationship with
either LegatumX or BII. The Independent Director shall be
designated by the mutual agreement of BII and LegatumX. BII shall
have no Designation Right following the completion of a Qualified
Financing. A “Qualified
Financing” means the sale or issuance by LegatumX of
New Securities (as defined in Section 8 below) for cash in a single
transaction or series of transactions resulting in gross proceeds
equal to or in excess of $100 million.

 

8.            Anti-Dilution
Protection. If BII shall, at any time or from time to time
after the Closing Date, but on or before the completion of a
Qualified Financing, issue or sell, agree to issue or sell, or be
deemed to have issued or sold, any New Securities (as hereinafter
defined), where the price per share paid upon purchase or exercise
is, or resultant upon conversion into common stock of Legatum
(taking into account any and all warrants or other securities and
other consideration issued in connection therewith when determining
the value of such price per share)

 

	

2461972v.6

 

 

 

would
be, less than the Purchase Price, then as a condition precedent to
any such issuance or sale (or deemed issuance or sale), LegatumX
shall be required to issue to BII additional shares of common stock
(the “Adjustment
Shares”) to maintain BII’s ownership
attributable to both (i) the Initial Shares at Thirty (30%) Percent
of LegatumX’s total capital stock on a Fully-Diluted Basis
and (ii) the Lower Threshold Earnout Shares, if applicable, at Five
(5%) Percent of LegatumX’s total capital stock on a
Fully-Diluted Basis, or alternatively the Higher Threshold Earnout
Shares, if applicable, at Ten (10%) Percent of LegatumX’s
total capital stock on a Fully-Diluted Basis. “New
Securities” means shares of the common stock of
LegatumX, any other securities, options, warrants or other rights
where upon exercise or conversion the purchaser or recipient
receives shares of common stock, or other securities with similar
rights to the common stock.

 

Within
thirty (30) days of the sale or issuance of any such New
Securities, LegatumX shall deliver to BII certificates evidencing
any Adjustment Shares BII is entitled to hereunder.

 

 

9.            Most
Favored Nation. Prior to the issuance of any New Securities
in an offering (“New
Offering”), LegatumX shall provide BII with a notice
(the “MFN
Notice”) which shall include a copy of the offering
documentation provided by LegatumX to solicit investment in the New
Offering. The MFN Notice shall also describe in reasonable detail
the procedures affording BII the right (“Anti-Dilution
Right”) to participate in the New Offering on
substantially similar terms with respect to the average price per
share of common stock that an investor pays assuming the full
conversion or exercise of warrants or similar rights that are
issued in the New Offering. BII may exercise its Anti-Dilution
Right by providing a notice to such effect to LegatumX on or prior
to the date that is thirty (30) days after the date that BII
received the MFN Notice. For avoidance of doubt, the Anti-Dilution
Right shall terminate on the date that is the earlier of the date
that the BII does not duly and timely exercise its Anti-Dilution
Right as described in this Section 9 or upon the completion of a
Qualified Financing.

 

 

 

10.            Conditions
to Closing.

 

 

 

a.            Bringdown
Certificate of LegatumX. A certificate in the Form attached
hereto as Exhibit [●], duly executed by an authorized officer
of LegatumX as of the Closing Date, in each case to the effect that
the conditions set forth in Section 5 have been
satisfied.

 

 

b.            Bringdown
Certificate of BII. A certificate in the Form attached
hereto as Exhibit [●], duly executed by an authorized officer
of BII as of the Closing Date, in each case to the effect that the
conditions set forth in Section 6 have been satisfied.

 

c.            Legal
Investment. On the Closing Date, the sale and issuance of
the Common Stock shall be legally permitted by all laws and
regulations to which LegatumX is subject.

 

d.            Secretary’s
Certificate. BII shall have received from the
LegatumX’s Secretary a certificate in the form attached
hereto as Exhibit [●] and having attached thereto (i) the
certificate of incorporation of LegatumX as in effect at the time
of the Closing, (ii) Leguatum’s by-laws as in effect at the
time of the Closing, (iii) resolutions approved by the board of
directors of LegatumX authorizing the transactions contemplated
hereby, (iv) resolutions approved by LegatumX’s stockholders
authorizing the filing of the restated

 

	

2461972v.6

 

 

 

certificate of
incorporaiton and (v) good standing certificates with respect to
LegatumX dated a recent date before the Closing.

 

 

e.            Consents,
Permits, and Waivers. LegatumX shall have obtained any and
all consents, permits and waivers necessary or appropriate for
consummation of the transactions contemplated by the Agreement and
related agreements except for such as may be properly obtained
subsequent to the Closing.

 

 

f.            Fiduciary
Duties. An agreement in the Form attached hereto as Exhibit
[●] shall be executed by each of the Shareholders and BII as
of the Closing Date, pursuant to which each of the Shareholders
shall agree to adhere to fiduciary duty standards, including the
duties of loyalty and care, with respect to BII and to avoid
conflicts of interest and engaging in any activity that is directly
competitive with the business of BII.

 

11.            Survival.
The representations, warranties, covenants and agreements made
herein shall survive the closing of the transactions contemplated
hereby. The representations, warranties, covenants and obligations
of either Party, and the rights and remedies that may be exercised
by the other Party, shall not be limited or otherwise affected by
or as a result of any information furnished to, or any
investigation made by or knowledge of, either Party or any of its
representatives.

 

 

 

12.            Notice.
Any notice required by the terms of this Agreement shall be given
in writing. It shall be deemed effective upon (i) personal
delivery, (ii) deposit with the United States Postal Service, by
registered or certified mail, with postage and fees prepaid or
(iii) deposit with Federal Express Corporation, with shipping
charges prepaid. All communications to BII shall be sent to BII at
its principal business address set forth above or at such other
address as BII may designate by 10 days’ advance written
notice to LegatumX. Notice shall be addressed to LegatumX at the
address provided in the signature page to this
Agreement.

 

13.            Entire
Agreement. This Agreement constitutes the entire contract
between the parties hereto with regard to the subject matter
hereof. It supersedes any other agreements, representations or
understandings (whether oral or written and whether express or
implied) that relate to the subject matter hereof.

 

 

14.            Choice
of Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Nevada, as such laws
are applied to contracts entered into and performed in such
State.

 

15.            Specific
Enforcement. The parties hereto acknowledge that money
damages would not be an adequate remedy at law if any party fails
to perform in any material respect any of its obligations
hereunder, and accordingly agree that each party, in addition to
any other remedy to which it may be entitled at law or in equity,
shall be entitled to seek to compel specific performance of the
obligations of the other party under this Agreement, without the
posting of any bond, in accordance with the terms and conditions of
this Agreement in any court of the United States or any State
thereof having jurisdiction, and if any action should be brought in
equity to enforce any of the provisions of this Agreement, none of
the parties hereto shall raise

 

	

2461972v.6

 

 

 

the
defense that there is an adequate remedy at law. Notwithstanding
anything herein to the contrary, Legatum and BII acknowledge and
agree that no specific enforcement shall be available hereunder
with respect to any claim against BII arising under or related to
Section 4 hereof, the Loan and/or the Loan Agreement.

 

 

 

16.            Counterparts
and Signatures. This Agreement may be executed in one or
more counterparts each of which shall be deemed to be an original
and all of which when taken together shall be deemed to be one and
the same instrument. Facsimile or electronic signatures shall have
the same meaning and legal effect as ribbon original
signatures.

 

	

2461972v.6

 

 

 

 

The
parties hereto have executed this STOCK PURCHASE AGREEMENT as of
the date set forth in the first paragraph hereof.

 

 

 

LEGATUMX,INC:                                                                         

BLOCKCHAIN INDUSTRIES,
INC.:

 

 

 

 

 

 

 

 

 

 

 

 

 

By:/s/ James
Knippel                                             

 

Name:
James Knippel

 

 

By:
/s/ Patrick
Moynihan _

 

 

Name:
Patrick Moynihan

 

 

 

Title:                                                                        

CEO             

Title:              

CEO

 

 

 

 

Address:

	

10

	

2461972v.6

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