Document:

SECURITIES
ESCROW AGREEMENT

 

This
SECURITIES ESCROW AGREEMENT (this “Agreement”), dated as of February 19, 2016 by and among BTCS Inc., a Nevada
corporation (the “Company”), RK Equity Advisors LLC, (the “Representative”), Charles Allen
(“Mr. Allen”) and Michal Handerhan (“Mr. Handerhan”) (collectively the “Principal
Stockholders”), and Sichenzia Ross Friedman Ference LLP (the “Escrow Agent”).

 

WITNESSETH:

 

WHEREAS,
the Company intends to list its common stock, par value $0.001 per share (the “Common Stock”), on a National
Securities Exchange (as defined below) and consummate the pending merger with Spondoolies-Tech Ltd. (“Spondoolies”).
The Principal Stockholders have voluntarily agreed to place stock certificates representing 24,000,000 shares of Common Stock
(the “Escrow Shares”) into escrow for the benefit of the Company and its public shareholders in the event the
Company (i) fails to achieve a listing on a National Stock Exchange on or before December 31, 2016; or (ii) fails to consummate
the merger or a Materially Similar Transaction (defined below) with Spondoolies management team on or before December 31, 2016;

 

WHEREAS,
the Company and the Principal Stockholders have requested that the Escrow Agent hold the Escrow Shares on the terms and conditions
set forth in this Agreement and the Escrow Agent has agreed to act as escrow agent pursuant to the terms and conditions of this
Agreement; and

 

WHEREAS,
the Company and the Principal Stockholders have requested that the Representative to make the Determinations (defined below) and
the other services set forth in Sections 1.4 and 1.5 of this Agreement and the Representative desires to provide those services
pursuant and subject to the terms and conditions of this Agreement.

 

NOW,
THEREFORE, in consideration of the covenants and mutual promises contained herein and other good and valuable consideration, the
receipt and legal sufficiency of which are hereby acknowledged and intending to be legally bound hereby, the parties agree as
follows:

 

ARTICLE
I

TERMS
OF THE ESCROW

 

1.1Appointment
of Escrow Agent. The Company and the Principal Stockholders hereby agree to appoint Sichenzia Ross Friedman Ference LLP as
Escrow Agent, to act in accordance with the terms and conditions set forth in this Agreement, and Escrow Agent hereby accepts
such appointment and agrees to act in accordance with such terms and conditions.

 

1.2Establishment
of Escrow Account. Upon the execution of this Agreement, the Principal Stockholders shall deliver to the Escrow Agent the
Escrow Shares, along with a stock power executed in blank, signature medallion guaranteed or in other form and substance acceptable
for transfer. The Escrow Agent shall hold the Escrow Shares and distribute the same as contemplated by this Agreement.

 

1.3Appointment
of Independent Evaluator. The Company and the Principal Stockholders hereby agree to appoint the Representative as an independent
party authorized to evaluate and determine whether the Listing Condition (as defined in Section 1.4 hereof) and the Merger Condition
(as defined in Section 1.5 hereof) (collectively, the “Conditions”) have been timely satisfied in accordance
with their respective terms and conditions set forth in this Agreement (the “Determinations”), and the Representative
hereby accepts such appointment and agrees to act in accordance with such terms and conditions.

 

1.4Listing
Threshold. The distribution of 12,000,000 Escrow Shares (the “Listing Escrow Shares”) to the Principal
Stockholders (6,000,000 to Mr. Handerhan and 6,000,000 to Mr. Allen) held in escrow pursuant to this Agreement shall be based
upon the successful listing of the Company’s Common Stock on a National Stock Exchange (as defined below) on or before December
31, 2016 (the “Listing Condition”). A “National Stock Exchange” shall be defined as either
the Nasdaq Capital Market, the Nasdaq Global Market or Nasdaq Global Select, or any successor market thereto, the NYSE MKT, or
any successor market thereto, or the New York Stock Exchange, or any successor market thereto. The parties, other than the Escrow
Agent, hereby agree that the determination of whether the Listing Condition has been timely satisfied shall be conclusively determined
by the Representative on or before January 5, 2017, and the Representative shall provide written disbursement instructions (“Listing
Disbursement Instructions”) to the Escrow Agent to either (i) return the Listing Escrow Shares to the Principal Stockholders
if the Listing Condition has been timely satisfied, or (ii) if the Listing Condition has not been timely satisfied, to instruct
the Escrow Agent to return the Listing Escrow Shares to the Company’s transfer agent with the instructions to both the Company
and its transfer agent to cancel the shares on the books and records of the Company.

 

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1.5Merger
Threshold. The distribution of 12,000,000 Escrow Shares (the “Merger Escrow Shares”) to the Principal Stockholders
(6,000,000 to Mr. Handerhan and 6,000,000 to Mr. Allen) held in escrow pursuant to this Agreement shall be based upon the Company’s
consummation of the merger with Spondoolies or a Materially Similar Transaction on or before December 31, 2016 (the “Merger
Condition”). A “Materially Similar Transaction” shall be defined as any economic arrangement by and
between the Company and Spondoolies or by and between the Company and Spondoolies senior management team which has the same or
better economic benefit to the Company with the purpose of developing ASIC Servers. The Representative shall, in its sole discretion,
conclusively determine what qualifies as a Materially Similar Transaction. Provided, however that the in the event the Company
pursues and consummates a Materially Similar Transaction the Representative may at its option hire an independent investment bank
acceptable to the Principal Stockholders to perform a fairness opinion (an “Opinion”) to determine the economic benefit
to the Company. The nature and scope of the analysis as well as the form and substance of the Opinion shall be as the Representative
deems appropriate. The Opinion shall be delivered in writing and shall be limited to the fairness of a Materially Similar Transaction
to the holders of common shares of the Company from a financial point of view in comparison to the Share Exchange Agreement dated
September 21, 2015 by and between the Company and Spondoolies. The Opinion shall not address the Company’s underlying business
decision to proceed with or effect the merger or a Materially Similar Transaction. The cost of any Opinion will be the responsibility
of the Company and not the Representative; provided, however, that the Representative shall not engage any investment bank to
perform an Opinion without written authorization of the Company. The parties, other than the Escrow Agent, hereby agree that the
determination of whether the Merger Condition has been timely satisfied shall be conclusively determined by the Representative
on or before January 5, 2017 (which may be extended to May 31, 2017 if the Company consummates a Materially Similar Transaction
and the Representative elects to engage an investment bank to perform an Opinion), and the Representative shall provide written
disbursement instructions (“Merger Disbursement Instructions”) to the Escrow Agent to either (i) return the
Merger Escrow Shares to the Principal Stockholders if the Merger Condition has been timely satisfied, or (ii) if the Merger Condition
has not been timely satisfied, to instruct the Escrow Agent to return the Merger Escrow Shares to the Company’s transfer
agent with the instructions to both the Company and its transfer agent to cancel the shares on the books and records of the Company.

 

ARTICLE
II

REPRESENTATIONS
AND WARRANTIES 

 

2.1Representations
and Warranties of the Principal Stockholders. The Principal Stockholders, jointly and severally, hereby represent and warrant
to the Escrow Agent, the Company, and the Representative as follows:

 

(a)Each
of the Principal Stockholders is an individual over the age of 18 and has the full legal capacity to execute and deliver this
Agreement and to consummate each of the transactions contemplated hereunder, and to perform his obligations hereunder. Each of
the Principal Stockholders has duly executed and delivered this Agreement and, upon such execution and delivery, this Agreement
constitutes a legal, valid and binding obligation of each of the Principal Stockholders and is enforceable against each of them
in accordance with its terms. No consent, approval, order, or authorization of, or registration, qualification, designation, declaration,
or filing with, any court, arbitration tribunal, administrative agency, commission, or other governmental authority or instrumentality
(each hereafter referred to as a “Governmental Entity”) or any other person or entity is required to be obtained
or given, or waiting period required to expire, as a condition to in connection with the execution and delivery of this Agreement
by the Principal Stockholders.

 

(b)The
Principal Stockholders are the sole owners and the sole beneficial owners and holders of record of all of the Escrow Shares, free
and clear of all pledges, liens, claims, charges, security interests, community or other marital property interests, equitable
interests, rights of first option, rights of first refusal, claims, conditions, restrictions, encumbrances and obligations, of
any type, kind, or nature whatsoever (“Liens”), except encumbrances created by this Agreement. There are no,
and there will be no, restrictions on the ability of the Company to cancel the Escrow Shares on the date of any Determination
made by the Representative as to whether any of the Conditions have been satisfied hereunder.

 

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(c)Neither
the execution and delivery of this Agreement by the Principal Stockholders or the consummation by the Principal Stockholders of
transactions contemplated hereby, nor compliance by the Principal Stockholders with any of the terms or provisions herein will:
(i) violate any provision of any law applicable to either of the Principal Stockholders, (ii) conflict with or result in any breach
of any of the terms, conditions or provisions of, or constitute a default under the terms of the certificate of incorporation
or by-laws of the Company, (iii) violate, conflict with, constitute or result in a breach of any term, condition, or provision
of, or constitute a default (with or without notice or the lapse of time, or both) under, or require any consent pursuant to,
or result in the creation of any Lien upon any of the Escrow Shares pursuant to, any of the terms, provisions, or conditions of
any indenture, mortgage, deed of trust or other agreement or instrument binding upon either of the Principal Stockholders or which
affect the Escrow Shares.

 

2.2Representations
of the Company. The Company hereby represents and warrants to the Principal Stockholders, the Escrow Agent, the Representative
as follows:

 

(a)The
Company is a corporation duly incorporated, validly existing, and in good standing under the laws of the State of Nevada, and
has the requisite corporate power and authority to execute and deliver this Agreement to consummate each of the transactions contemplated
hereunder, and to perform its obligations hereunder. The execution, delivery, and performance by the Company of this Agreement
and the consummation by the Company of the transactions contemplated hereunder and the performance of its obligations hereunder
have been duly authorized by all necessary corporate action on the part of the Company. This Agreement has been duly executed
and delivered by the Company and, upon such execution and delivery, this Agreement constitutes a legal, valid and binding obligation
of the Company and is enforceable against the Company in accordance with its terms. No consent, approval, order, or authorization
of, or registration, qualification, designation, declaration, or filing with, any Governmental Entity or any other person or entity
is required to be obtained or given, or waiting period required to expire, as a condition to in connection with the execution
and delivery of this Agreement by the Company.

 

(b)Neither
the execution and delivery of this Agreement by the Company or the consummation by the Company of transactions contemplated hereby,
nor compliance by the Company with any of the terms or provisions herein will: (i) violate any provision of any law applicable
to either of the Company, (ii) conflict with or result in any breach of any of the terms, conditions or provisions of, or constitute
a default under the terms of the certificate of incorporation or by-laws of the Company, (iii) violate, conflict with, constitute
or result in a breach of any term, condition, or provision of, or constitute a default (with or without notice or the lapse of
time, or both) under, or require any consent pursuant to, or result in the creation of any Lien upon any of the Escrow Shares
or any of the properties or assets of the Company or any of its subsidiaries pursuant to, any of the terms, provisions, or conditions
of any material loan or credit agreement, note, mortgage, indenture, deed of trust, lease, sublease, license, sublicense, agreement,
permit, concession, franchise, security interest, instrument of indebtedness, plan or other instrument, or other agreement or
contract to which the Company or any of the Company’s subsidiaries is a party or by which any of them are is bound or to
which their respective properties or assets are subject.

 

ARTICLE
III

ESCROW
AGENT

 

3.1The
Escrow Agent’s duties hereunder may be altered, amended, modified or revoked only by a writing signed by the Company, the
Principal Stockholders, the Representative and the Escrow Agent.

 

3.2The
Escrow Agent shall be obligated only for the performance of such duties as are specifically set forth herein and may rely and
shall be protected in relying or refraining from acting on any instrument reasonably believed by the Escrow Agent to be genuine
and to have been signed or presented by the proper party or parties. The Escrow Agent shall not be personally liable for any act
the Escrow Agent may do or omit to do hereunder as the Escrow Agent while acting in good faith and in the absence of gross negligence,
fraud or willful misconduct, and any act done or omitted by the Escrow Agent pursuant to the advice of the Escrow Agent’s
attorneys-at-law shall be conclusive evidence of such good faith, in the absence of gross negligence, fraud or willful misconduct.

 

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3.3The
Escrow Agent is hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other
person or corporation, excepting only orders or process of courts of law and is hereby expressly authorized to comply with and
obey orders, judgments or decrees of any court. In case the Escrow Agent obeys or complies with any such order, judgment or decree,
the Escrow Agent shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such
decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

 

3.4The
Escrow Agent shall not be liable in any respect on account of the identity, authorization or rights of the parties executing or
delivering or purporting to execute or deliver any documents or papers deposited or called for thereunder in the absence of gross
negligence, fraud or willful misconduct.

 

3.5The
Escrow Agent shall be entitled to employ such legal counsel and other experts as the Escrow Agent may deem necessary to properly
advise the Escrow Agent in connection with the Escrow Agent’s duties hereunder, may rely upon the advice of such counsel,
and may pay such counsel reasonable compensation therefor which shall be paid by the Escrow Agent. The Escrow Agent has acted
as legal counsel for the Company. The Company and the Principal Stockholders consent to the Escrow Agent in such capacity as legal
counsel for the Company and waive any claim that such representation represents a conflict of interest on the part of the Escrow
Agent. The Company and the Principal Stockholders understand that the Escrow Agent is relying explicitly on the foregoing provision
in entering into this Escrow Agreement.

 

3.6The
Escrow Agent’s responsibilities as escrow agent hereunder shall terminate if the Escrow Agent shall resign by giving written
notice to the Company, the Principal Stockholders and the Representative. In the event of any such resignation, the Representative
shall appoint a successor Escrow Agent and the Escrow Agent shall deliver to such successor Escrow Agent any escrow documents
held by the Escrow Agent.

 

3.7If
the Escrow Agent reasonably requires other or further instruments in connection with this Escrow Agreement or obligations in respect
hereto, the necessary parties hereto shall use its best efforts to join in furnishing such instruments.

 

3.8It
is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of
the documents or the Escrow Shares held by the Escrow Agent hereunder, the Escrow Agent is authorized and directed in the Escrow
Agent’s sole discretion (1) to retain in the Escrow Agent’s possession without liability to anyone all or any part
of said documents or the Escrow Shares until such disputes shall have been settled either by mutual written agreement of the parties
concerned or by a final order, decree or judgment or a court of competent jurisdiction after the time for appeal has expired and
no appeal has been perfected, but the Escrow Agent shall be under no duty whatsoever to institute or defend any such proceedings
or (2) to deliver the Escrow Shares and any other property and documents held by the Escrow Agent hereunder to a state or Federal
court having competent subject matter jurisdiction and located in the City of New York, Borough of Manhattan, in accordance with
the applicable procedure therefor.

 

3.9The
Company agrees to indemnify and hold harmless the Escrow Agent and its partners, employees, agents and representatives from any
and all claims, liabilities, costs or expenses in any way arising from or relating to the duties or performance of the Escrow
Agent hereunder or the transactions contemplated hereby other than any such claim, liability, cost or expense to the extent the
same shall have been determined by final, unappealable judgment of a court of competent jurisdiction to have resulted from the
gross negligence, fraud or willful misconduct of the Escrow Agent.

 

ARTICLE
IV

REPRESENTATIVE

 

4.1The
Representative’s sole duties and obligations under this Agreement shall be limited to the determination of whether the Conditions
as set forth in this Agreement have been timely satisfied and to provide the Listing Disbursement Instructions and the Merger
Disbursement Instructions in accordance with the provisions of Sections 1.4 and 1.5 of this Agreement. Notwithstanding anything
to the contrary herein, neither the Representative’s duties hereunder nor any of the Conditions set forth in herein or the
provisions of Articles III, IV, or V hereof may be altered, amended, modified or revoked, except by a writing signed by the Company,
the Principal Stockholders, the Representative and the Escrow Agent.

 

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4.2All
determinations made by the Representative as to whether any or both of the Conditions have been timely satisfied and, if to the
extent required under Section 1.5, whether a Materially Similar Transaction has been consummated on or before December 31, 2016
(or as may be extended pursuant to Section 1.5) , shall be determined exclusively and conclusively by the Representative and the
parties to this Agreement hereby agree that all such determinations shall be final and binding on the Company and the Principal
Stockholders.

 

4.3The
Company and each of the Principal Stockholders confirm their understanding and agreement that the Representative has been retained
hereunder to act solely for the benefit of the Company and the Principal Stockholders, and not for the benefit of any other person,
and that the engagement of Representative by the Company any and the Principal Stockholders hereunder is not intended to confer
rights upon any person not a party hereto (including other stockholders, employees or creditors of the Company or the Principal
Stockholders) as against the Representative or its affiliates, or their directors, officers, employees or agents. The Representative,
as an independent contractor under this Agreement, shall not assume the responsibilities of a fiduciary to the Principal Stockholders,
the Company, or any of its stockholders in connection with the performance of the Representative’s duties and obligations
hereunder, and any duties arising out of Representative’s engagement hereunder shall be owed solely to the Company and the
Principal Stockholders.

 

4.4The
Company and each of the Principal Stockholders will use their best efforts to provide information to the Representative, on a
timely basis, as the Representative may reasonably require or deems appropriate to carry out its responsibilities under the terms
of this Agreement, including, without limitation, all information (financial or otherwise), data, opinions, appraisals, valuations,
projections, estimates, and other relevant information within the possession, control and/or direction of the Company or the Principal
Stockholders or of which the Company or the Principal Stockholders can reasonably obtain relating to the Company, the development
of the ASIC Servers, Spondoolies or any other information that is or may be relevant or appropriate for the Representative to
carry out its responsibilities under this Agreement (including any written advice, opinions, or appraisals from other advisors,
consultants, or others engaged by the Company or the Principal Stockholders in connection with the transactions contemplated in
connection with the Conditions). The Company and each of the Principal Stockholders represent and agree that all such information
furnished to the Representative hereunder shall be accurate, complete, and will not be misleading in any material respect.

 

4.5The
Company and each of the Principal Stockholders recognize, confirm, and agree that the Representative, in carrying out its services
hereunder, including, without limitation, any valuations or other considerations made in connection with the determination of
whether a Materially Similar Transaction has been consummated, will use and rely solely on information prepared and supplied by
the Principal Stockholders and the Company to the Representative and that all such valuations and determinations will be determined
in any such manner or by any such method that the Representative, in its sole discretion shall select. The Representative shall
not assume responsibility for the accuracy or completeness of, and shall not be required to or have any obligation to, conduct
any due diligence, special investigations, appraisals, or otherwise verify the accuracy and completeness of, any such information
so provided to it.

 

4.6The
Representative undertakes to perform only such duties as are expressly set forth herein and no duties shall be implied. The Representative
shall not be liable for any action taken or omitted by it, except to the extent that a court of competent jurisdiction determines
that the Representative’s gross negligence or willful misconduct was the primary cause of any loss to the Company or any
of the Principal Stockholders. In no event shall the Representative be liable for incidental, indirect, special, consequential
or punitive damages (including, but not limited to lost profits or capital gains, data, business or goodwill), regardless of legal
theory advanced even if the Representative has been advised of the likelihood of such loss or damage and regardless of the form
of action. The Representative may consult legal counsel selected by it in the event of any dispute or question as to the construction
of any of the provisions hereof or of any other agreement or of its duties hereunder, or relating to any dispute involving any
party hereto, and shall incur no liability and shall be fully indemnified from any liability whatsoever in acting in accordance
with the opinion or instruction of such counsel. The Company and the Principal Stockholders, jointly and severally, shall promptly
pay, upon demand, the reasonable fees and expenses of any such counsel.

 

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4.7From
and at all times after the date of this Agreement, the Company and the Principal Stockholders, jointly and severally, shall, to
the fullest extent permitted by law, defend, indemnify and hold harmless the Representative and each director, officer, employee,
attorney, agent and affiliate of the Representative (collectively, the “Representative Indemnified Parties”)
against any and all actions, claims (whether or not valid), losses, damages, liabilities, costs and expenses of any kind or nature
whatsoever (including without limitation reasonable attorneys’ fees, costs and expenses) incurred by or asserted against
any of the Indemnified Parties from and after the date hereof, whether direct, indirect or consequential, as a result of or arising
from or in any way relating to any claim, demand, suit, action or proceeding (including any inquiry or investigation) by any person,
including without limitation the Company or either of the Principal Stockholders, whether threatened or initiated, asserting a
claim for any legal or equitable remedy against any person under any statute or regulation, including, but not limited to, any
federal or state securities laws, or under any common law or equitable cause or otherwise, arising from or in connection with
the negotiation, preparation, execution, performance or failure of performance of this Agreement or any transactions contemplated
herein, whether or not any such Representative Indemnified Party is a party to any such action, proceeding, suit or the target
of any such inquiry or investigation; provided, however, that no Indemnified Party shall have the right to be indemnified
hereunder for any liability finally determined by a court of competent jurisdiction, subject to no further appeal, to have resulted
solely from the gross negligence or willful misconduct of such Indemnified Party. Each Indemnified Party shall, in its sole discretion,
have the right to select and employ separate counsel with respect to any action or claim brought or asserted against it, and the
reasonable fees of such counsel shall be paid upon demand by the Company and the Principal Stockholders, jointly and severally.

 

4.8The
obligations of the Company and the Principal Stockholders under this Article IV shall survive any termination of this Agreement
and the resignation or removal of the Representative.

 

ARTICLE
V

MISCELLANEOUS

 

5.1Waiver.
No waiver of, or any breach of any covenant or provision herein contained shall be deemed a waiver of any preceding or succeeding
breach thereof, or of any other covenant or provision herein contained. No extension of time for performance of any obligation
or act shall be deemed an extension of the time for performance of any other obligation or act.

 

5.2Notices.
All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted under or
by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in writing and
shall be deemed to be delivered and received by the intended recipient as follows: (i) if personally delivered, on the business
day of such delivery (as evidenced by the receipt of the personal delivery service), (ii) if mailed certified or registered mail
return receipt requested, two (2) business days after being mailed, (iii) if delivered by overnight courier (with all charges
having been prepaid), on the business day of such delivery (as evidenced by the receipt of the overnight courier service of recognized
standing), or (iv) if delivered by facsimile transmission, on the business day of such delivery if sent by 6:00 p.m. in the time
zone of the recipient, or if sent after that time, on the next succeeding business day (as evidenced by the printed confirmation
of delivery generated by the sending party’s telecopier machine). If any notice, demand, consent, request, instruction or
other communication cannot be delivered because of a changed address of which no notice was given (in accordance with this Section
4.2), or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed
received on the second business day the notice is sent (as evidenced by a sworn affidavit of the sender). All such notices, demands,
consents, requests, instructions and other communications will be sent to the following addresses or facsimile numbers as applicable.

 

If
to Escrow Agent:

 

Sichenzia
Ross Friedman Ference LLP

61
Broadway, 32nd Floor

New
York, NY 10006

Attention:
Harvey Kesner

Tel
No.: (212) 930-9700

 

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If
to the Company or the Principal Stockholders:

 

BTCS
Inc.

1901
N Moore St, Suite 700

Arlington,
VA 22209

Attention:
Chief Executive Officer

email:
ir@btcs.com

 

If
to the Representative:

 

RK
Equity Advisors LLC

1345
Avenue of the Americas, 2nd Floor

New
York, NY 10105

Attention:
Howard Klein

 

or
to such other address and to the attention of such other person as any of the above may have furnished to the other parties in
writing and delivered in accordance with the provisions set forth above.

 

5.3Successors
and Assigns. This Escrow Agreement shall be binding upon and shall inure to the benefit of the permitted successors and permitted
assigns of the parties hereto.

 

5.4Entire
Agreement; Amendment. This Agreement contains the entire understanding and agreement of the parties relating to the subject
matter hereof and supersedes all prior and/or contemporaneous understandings and agreements of any kind and nature (whether written
or oral) among the parties with respect to such subject matter. This Escrow Agreement may not be modified, changed, supplemented,
amended or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the parties to be charged
or by its agent duly authorized in writing or as otherwise expressly permitted herein. Notwithstanding anything to the contrary
in this Agreement, none of the provisions of Article I hereof or this Section 5.4 may be modified, changed, supplemented, amended
or terminated, nor may any such provision be waived.

 

5.5Headings.
The section headings contained in this Agreement are inserted for reference purposes only and shall not affect in any way the
meaning, construction or interpretation of this Agreement. Any reference to the masculine, feminine, or neuter gender shall be
a reference to such other gender as is appropriate. References to the singular shall include the plural and vice versa.

 

5.6Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without
giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another
jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement
to be drafted.

 

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IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of this 19 day of February 2016.

 

	BTCS Inc.	 
	 	 	 
	By:	/s/
Charles Allen	 
	Name:
    	Charles
    Allen	 
	Title:
    	Chief
    Executive Officer	 

 

REPRESENTATIVE:

 

	RK Equity Advisors LLC	 
	 	 	 
	By:	/s/
Howard Klein	 
	Name:
    	Howard
    Klein	 
	Title:
    	Authorized
    Signatory	 

 

ESCROW
AGENT:

 

	Sichenzia Ross Friedman Ference LLP	 
	 	 	 
	By:	/s/
Harvey Kesner	 
	Name:
    	Harvey
    Kesner	 
	Title:
    	Partner	 

 

PRINCIPAL
STOCKHOLDERS:

 

	By:	/s/
    Charles Allen	 
	Name:
    	Charles
    Allen	 
	Title:
    	CEO	 

 

	By:	/s/
    Michal Handerhan	 
	Name:
    	Michal
    Handerhan	 
	Title:
    	COO	 

 

    	Page 8 of 8EXCLUSIVE
DISTRIBUTION AGREEMENT

 

THIS
EXCLUSIVE DISTRIBUTION AGREEMENT (this “Agreement” or this “Exclusive Distribution Agreement) is entered into
effective as of 01/11/2016 (the “Effective Date”) by and between Blow & Drive Interlock Corporation (and any
of its subsidiaries) (“Supplier”) having an address at 137 South Robertson Blvd, Suite 129, Beverly Hills, CA
90211 and dba BLOW & DRIVE HOUSTON

 

(“Distributor”),
whose address is 14011 WHISPERING PALMS HOUSTON TX 77066

 

The
parties agree as follows:

 

1.
APPOINTMENT.

 

a.
Blow & Drive Interlock and its subsidiary BDI Manufacturing is a manufacturer and supplier of a proprietary breath alcohol
ignition interlock device (“BDI-747/1”) designed for use in motor vehicles. As a distributor you will lease, install,
periodically service, remove and support, as required, the Interlock Device. Subject to the terms and conditions of this Exclusive
Distribution Agreement, Supplier appoints Distributor, and Distributor accepts such appointment and agrees to act as Supplier’s
exclusive distributor of the Supplier Products (defined below) within the geographical territory defined as follows (the “Territory”):
TEXAS COUNTIES OF HARRIS, MONTGOMERY, WALKER, SAN JACINTO,LIBERTY, CHAMBERS, GALVESTON,GRIMES, FORT BEND, BRAZORIA, & WALLER

 

b.
Distributor agrees to exercise its best efforts to (a) promote the lease of and obtain orders for the Supplier Products in
the Territory; (b) abide by Supplier’s policies and procedures with regard to the purchase lease and support of
Supplier Products; and (c) conduct its business in a manner that reflects favorably at all times on the Supplier Products and
the good name, goodwill and reputation of Supplier or its affiliates. Distributor acknowledges and agrees that it has no
rights or claims of any type to the Supplier Products, or any aspect thereof, except such rights as are created by this
Exclusive Distribution Agreement. Distributor agrees that it shall not and is not authorized to promote, resell, deliver,
install, service or otherwise support the Supplier Products outside of the Territory without prior written consent of the
Supplier.

 

    	 	 	 

    	 

    

 

 

2.
PRODUCTS AND PRICING INITIAL FEES

 

Distributor
agrees to pay a onetime Software License and Support Fee of 10,000 to Supplier. Distributor will pay supplier a non-refundable
amount of 10,000 on 1/11/2016.

 

Other
terms and conditions include:

 

	●	Distributor
    agrees to pay a $150 unit registration fee
	 	 
	●	A
    monthly payment of $35.00 per unit begins 30 days after the unit is in Distributors inventory.

 

3.
APPROVALS.

 

Supplier
shall obtain, at its own expense, such approvals, consents, certifications, permits and other authorizations, including all approvals
as are required to qualify the Supplier Products for sale and use in the Territory for all purposes, both governmental and non-governmental

 

Lwainer

Lwainer

 

4.
EXCLUSIVITY.

 

Supplier’s
appointment of Distributor in Section 1 of this Agreement is an exclusive appointment to distribute the Products in the Territory.
Supplier may independently advertise, but may not solicit or make sales of distributor Products, or appoint additional distributors
for Supplier Products in the Territory.

 

5.
SALES OUTSIDE OF THE TERRITORY.

 

Distributor
shall promote the sale of Supplier Products in the Territory on its website. Notwithstanding the foregoing sentence, Distributor
shall not actively advertise or actively solicit orders for Supplier Products outside of the Territory without prior written consent.

 

    	 	 	 

    	 

    

 

 

6.
ORDERS.

 

All
requests for inventory will be transmitted by Distributor to Supplier and shall be in writing by distributor. The supplier will
maintain a sufficient inventory of the Interlock devices to provide to the distributor upon request, provided the distributor
is not in breach of the agreement. Each request submitted shall constitute an offer by Distributor to lease the Supplier Products
described in such order and, shall give rise to a contractual obligation of Distributor to lease the said products on the terms
and conditions set forth in this Agreement. All expenses arising out of the change or cancellation of an order after acceptance
by Supplier, including the cost of diversion, cancellation or re-consignment of shipments, and any reasonable restocking charge,
shall be paid by Distributor within 30 days.

 

7.
PAYMENT AND DELIVERY.

 

The
monthly lease price and or unit registration fee shall be quoted and payable in U. S. Dollars to Supplier at the address specified
on the lease order. Unless otherwise agreed by the parties in writing, payment shall be made by Distributor by wire transfer or
check at the end of each calendar month. The Supplier Products shall be delivered to the Distributors physical address as listed
in this document. Risk of loss for the Supplier Products shall pass upon delivery to the named carrier at Supplier’s facilities.

 

	●	A
    onetime fee in the amount of $ 10,000 is due on 1/11/2016. Supplier will provide distributor with our Starter
    Equipment Package which includes: Proprietary software preloaded, software license, unlimited software support, one (1) roll
    double sided tape, 500ft 18 gauge black wire, 500ft 18 gauge red wire, fifty (50) butt connectors, one (1) screwdriver kit,
    one (1) auto simulator, one (1)dry gas calibration kit, one (1) power supply, fifty (50) mouthpieces and one (1) drill and
    a skin of our website.
	 	 
	●	A
    unit registration fee in the amount of $150
	 	 
	●	A
    Net thirty (30) days on the balance upon delivery. (Net thirty is defined as all equipment and in the course of any month
    shall be due and paid in full 30 days after the end of billing for that month)

 

8.
SECURITY INTEREST.

 

Notwithstanding
the passage of title, Supplier shall retain a security interest in all Supplier Products delivered until amounts for which Distributor
is responsible under this Agreement have been received by Supplier. Supplier shall have all rights of a secured party, including
the right to file a financing statement under the Uniform Commercial Code or a comparable law within the Territory to protect
Supplier’s security interest. In the event Distributor defaults in its payment obligations, Supplier will have the right
to enter the premises of Distributor to recover possession of all Supplier Products on said premises, to recover all Supplier
Products supplied by Distributor to its customers and associated supplies or software, and to pursue any other remedy existing
at law or equity. Distributor, for itself and on behalf of its customers, hereby waives a prior hearing and demand for Supplier’s
exercise of such rights.

 

    	 	 	 

    	 

    

 

 

 

9.
RESALE PRICE AND EXPENSES.

 

Distributor
shall set the lease price and installation fees at which the Supplier Products are sold or licensed by it in the Territory. Distributor
shall be solely responsible for the costs involved in the distribution of the Supplier Products, including sales costs, any and
all banking charges, shipping and handling costs, installation costs or other operating expenses, letter of credit costs, wire
transfer fees and other costs associated with making payment, and taxes, however designated, except that Distributor shall not
be liable for taxes imposed that are based on Supplier’s income.

 

10.
PROMOTIONAL LITERATURE.

 

Supplier
agrees to furnish, in English, to Distributor (via email in pdf format) such descriptive literature, advertising materials, technical
manuals and sales promotional materials concerning the Supplier Products as Supplier may, from time to time, have available for
such purposes Distributor shall have the right to translate such materials into the languages of the Territory at its own expense.
Supplier shall retain ownership of all proprietary rights, including, intellectual property rights to the translated versions
of the materials. Distributor will be solely responsible for the accuracy of the translations and will provide Supplier with a
copy of each translated work. Distributor shall promptly revise (at Distributor’s costs) the materials upon notice from
Supplier.

 

11.
OBLIGATIONS OF SUPPLIER.

 

Initial
Training Program: The Initial Training Program will consist of approximately three (3) weeks of training that must be completed.
Supplier shall provide the Initial Training Program for the independent third (3rd) party installers and the Principal Owner of
distributor’s place of business if distributor requests supplier to provide the Initial Training Program to any of its employees
in addition to the Principal Owner, supplier agrees to do so at no additional charge to distributor. Supplier shall determine
the contents and manner of conducting the Initial Training Program, at its discretion. If for any

 

LW

 

reason
distributor loses a service center, supplier must be notified and will on a best efforts basis replace lost service centers .In
addition, supplier shall pay all transportation costs, food, lodging and similar costs incurred in connection with training program.
Manuals. Supplier shall lend a copy of, or provide distributor with access to, the Manuals for use during the Term. The Manuals
may be mailed, e-mailed, made available for download from supplier’s website, or franchise internet portal, or otherwise
delivered to distributor. The Manuals shall contain mandatory state specifications, standards, and operating procedures. All specifications,
standards, operating procedures and rules in the Manuals, or otherwise communicated to distributor in writing, shall constitute
obligations under this Agreement as if fully set forth in this Agreement. The Manuals may be modified from time to time to reflect
changes. All modifications to the Manuals shall be binding upon distributor upon being mailed, e-mailed, made available for download
from supplier’s website, or supplier’s internet portal, or otherwise delivered to distributor. Supplier may provide
regular consultation and advice to distributor in response to distributor inquiries about specific administrative and operating
issues that distributor brings to suppliers attention during the Term, including, without limitation, reporting customer interlock
data to Governmental Authorities and mandatory and recommended standards and operating procedures. Consultation and advice may
be provided by telephone, in writing electronically, in person, or by other means. Toll-Free Telephone Number. Supplier shall
maintain a toll-free telephone number for Distributor’s use for consultations with supplier and for communications to distributor
and suppliers from Governmental Authorities. The toll-free number will appear on the Governmental Authorities’ lists of
breath alcohol ignition interlock device manufacturers and providers. Supplier shall assist distributor in reporting distributor’s
customer data to the appropriate Governmental Authorities. Supplier shall forward all calls from potential customers in the Territory
to distributor.

 

    	 	 	 

    	 

    

 

 

12.
USE OF TRADEMARKS.

 

Distributor
shall not be permitted to print, post or otherwise use letterhead, calling cards, literature, signage or other representations
in the name of Supplier (or any of its affiliates) or to represent itself as Supplier (or any of its affiliates) or make commitments
on behalf of Supplier (or any of its affiliates) without the express, written permission of Supplier. Distributor expressly agrees
that no license to use Supplier (or any of its affiliates’ trademarks, trade names, service marks or logos (collectively,
the “Supplier Trademarks”) is granted by this Agreement. Distributor may, however, indicate in its advertising and
marketing materials that it is a distributor for Supplier Products and may as necessary, incidentally use the Supplier Trademarks
in its sales/marketing efforts.

 

Upon
request by Supplier, Distributor will place proper trademark, copyright and patent notices in its advertisements, promotional
brochures and other marketing materials for Supplier Products. Supplier reserves the right to review Distributor’s marketing
and sales materials prior to their publication or use. No rights shall inure to Distributor as a result of any such use or reference,
and all such rights, including goodwill shall inure to the benefit of and be vested in Supplier.

 

Upon
termination of this Agreement for any reason, Distributor will immediately cease using the Supplier Trademarks as allowed in
this Section and shall immediately take all appropriate and necessary steps to (a) remove and cancel any listings in public
records, telephone books, other directories, remove any visual displays or literature at Distributor’s location, the
Internet and elsewhere that would indicate or would lead the public to believe that Distributor is the representative of
Supplier (or any of its affiliates) or Supplier’s (or any of its affiliates’) products or services; and (b)
cancel, abandon or transfer (as requested by Supplier) any product licenses, trade name filings, trademark applications or
registrations or other filings with the governments of the Territory (whether or not such filings were authorized by
Supplier) that may incorporate the Supplier Trademarks or any marks or names confusingly similar to the Supplier Trademarks.
Upon Distributor’s failure to comply with this paragraph, Supplier may make application for such removals,
cancellations, abandonments or transfers in Distributor’s name. Distributor shall render assistance to and reimburse
Supplier for expenses incurred in enforcing this paragraph.

 

    	 	 	 

    	 

    

 

 

13.
INFRINGEMENT BY THIRD PARTIES.

 

Distributor
will cooperate fully with and assist Supplier in its efforts to protect Supplier’s intellectual property rights within the
Territory and shall exercise reasonable diligence to detect and shall immediately advise Supplier if Distributor has knowledge
of any infringement of any patents, trademarks, copyrights or other intellectual property rights owned or used by Supplier.

 

14.
CONFIDENTIAL INFORMATION; NO REVERSE ENGINEERING.

 

Supplier
may provide Distributor with certain confidential or proprietary information (“Confidential Information”). Confidential
Information includes information, whether written, electronic or oral, which Distributor knows or reasonably should know is proprietary,
confidential or a trade secret of Supplier, including any and all technical or business information, the Software including its
source codes and documentation, specifications and design information for the Supplier Products, servicing information, customer
lists, pricing information, marketing information, policies, procedures and manuals regarding Supplier’s distributors or
distribution channels, research and development and other proprietary matter relating to the Supplier Products or business of
Supplier. Distributor will refrain from using the Confidential Information except to the extent necessary to exercise its rights
or perform its obligations under this Agreement. Distributor will likewise restrict its disclosure of the Confidential Information
to those who have a need to know such Confidential Information in order for Distributor to perform its obligations and enjoy its
rights under this Agreement. Such persons will be informed of and will agree to the provisions of this Section and Distributor
will remain responsible for any unauthorized use or disclosure of the Confidential Information by any of them. Upon termination
of this Agreement (or earlier, upon request by Supplier), Distributor shall cease to use all Confidential Information and promptly
return to Supplier (or destroy, upon request by Supplier) any documents (whether written or electronic) in its possession or under
its control that constitutes Confidential Information. During the term of this Agreement and thereafter, neither Distributor,
nor Distributor’s employees, independent contractors nor other agents shall (a) reverse engineer, decompile or otherwise
disassemble the Supplier Products from the products themselves or from any other information made available to them, or (b) otherwise
use any of the Confidential Information or Supplier provided training to support, maintain or otherwise service a third party’s
products or services.

 

    	 	 	 

    	 

    

 

 

15.
COMPLIANCE WITH LAWS.

 

In
connection with its obligations under this Agreement, Distributor agrees to comply with all federal, state, local and foreign
laws, constitutions, codes, statutes and ordinances of any governmental authority that may be applicable to Distributor, its activities
under this Agreement or the Supplier Products, including all applicable export control laws and regulations. Distributor agrees
to take all such further acts and execute all such further documents as Supplier reasonably may request in connection with such
compliance.

 

16.
PRODUCT WARRANTIES.

 

Supplier’s
sole obligation under this warranty shall be to provide, at no charge to Distributor, replacement Products. Defective Products
must be returned to Supplier (at Supplier’s cost) in order to receive warranty replacement and shall become Supplier’s
property. Supplier must repair or replace product within 30 days of return, Distributor must follow the procedures established
by Supplier from time to time.

 

b.
Warranty of Good Title. Supplier agrees to indemnify Distributor from any liability to any third party for infringement of United
States patents, copyrights, trademarks or trade secrets with respect to Supplier Products sold/licensed by Distributor pursuant
to this Agreement. This obligation does not extend to any foreign patents, copyrights, trademarks, or trade secrets or to any
Supplier Products manufactured or modified by Supplier to meet Distributor’s or a customer’s specifications. Supplier
shall, at its option, be allowed sole and exclusive control over the defense, settlement and compromise of any claims of infringement.
Supplier must be notified in writing by Distributor within 15 days of any third party claim which, if upheld, might result in
a liability subject to indemnification under this Subsection. If the distribution of the Supplier Products is threatened by a
claim of infringement, or is likely to be enjoined or liability for infringement is found, Supplier may, in its discretion and
at its sole option: (i) procure for Distributor the right to continue distributing the Supplier Products; or (ii) modify the Supplier
Products so as to make them non-infringing; or (iii) substitute non-infringing products; or (iv) refund the price paid by Distributor
for the Supplier Products in its possession subject to their return by Distributor and terminate this Agreement with respect to
the allegedly infringing products. THIS SUBSECTION STATES THE ENTIRE LIABILITY OF SUPPLIER WITH RESPECT TO INFRINGEMENT OF ANY
PATENT, COPYRIGHT, TRADEMARK, TRADE SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT BY ANY SUPPLIER PRODUCT.

 

c.
Disclaimer. EXCEPT AS PROVIDED IN THIS SECTION, SUPPLIER MAKES NO OTHER WARRANTY, PROMISE OR OBLIGATION WITH RESPECT TO THE SUPPLIER
PRODUCTS, THEIR USE, REPAIR OR PERFORMANCE. SUPPLIER DISCLAIMS ANY WARRANTY, PROMISE OR OBLIGATION THAT THE SUPPLIER PRODUCTS
SHALL BE FIT FOR ANY PARTICULAR USE OR PURPOSE, REGARDLESS OF WHETHER SUCH USE OR PURPOSE IS MADE KNOWN TO SUPPLIER OR NOT. SUPPLIER
DISCLAIMS ANY WARRANTY, PROMISE OR OBLIGATION THAT THE SUPPLIER PRODUCTS CONFORM TO ANY SAMPLES OR MODELS. SUPPLIER HEREBY DISCLAIMS
ALL OTHER WARRANTIES, PROMISES AND OBLIGATIONS, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTIES, PROMISES AND OBLIGATIONS
ARISING FROM A COURSE OF DEALING OR USAGE OF TRADE. THE WARRANTIES SET FORTH IN THIS SECTION ARE INTENDED SOLELY FOR THE BENEFIT
OF DISTRIBUTOR. ALL CLAIMS UNDER THIS AGREEMENT SHALL BE MADE BY DISTRIBUTOR AND MAY NOT BE MADE BY DISTRIBUTOR’S CUSTOMERS.

 

d.
Distributor’s Warranties. Distributor agrees, at its cost, to provide its customers with, at a minimum, substantially the
same warranties as set forth in this agreement (Section 15). Distributor will assume all costs involved in providing any additional
warranties.

 

    	 	 	 

    	 

    

 

 

17.
INSURANCE

 

Supplier
shall, at its own cost and expense, purchase and maintain, continuously throughout the term hereof, the following insurance coverage,
against damage or loss caused by Supplier or its employees, agents, or products:

 

a.
Commercial General Liability in no less than $1,000,000 per occurrence and $3,000,000 aggregate limit for Bodily injury and Property
Damage, currently held by Admiral Insurance.

 

b.
Certificates evidencing all insurance required under this paragraph shall be provided to Distributor within ten (10) days
after, the execution of this Agreement and at any time thereafter upon request of Distributor. All policies shall be endorsed
to provide that they may not be terminated or canceled except upon thirty (30) days prior written notice by the insurer to
Distributor. Supplier must provide proof of such coverage to Distributor in the form of a certificate evidencing insurance
coverage and showing Distributor as an additional insured.

 

18.
INSPECTION OF RECORDS.

 

Distributor
shall keep accurate records of all its activities as reasonably necessary to determine its compliance with the terms and
conditions of this Agreement, including accounting records, customer sales records and governmental filings. Distributor
shall retain such records for at least a 3-year period following their creation or preparation. During the term of this
Agreement and for a period of 18 months thereafter, Supplier shall have the right to inspect and audit such
records.

 

19.
TERM AND TERMINATION.

 

Unless
earlier terminated as provided in this Agreement, the term of this Agreement shall commence upon delivery of State Certifications
and shall remain in full force and effect for 3 years following the Effective Date. Either party may terminate this Agreement
as follows: (a) Immediately upon 30 days’ prior notice with cause; (b) Immediately, for any breach or default of this Agreement
by the other party which has not been cured within 10 days after the delivery of notice thereof to the party alleged to be in
breach, specifying with particularity the condition, act, omission or course of conduct asserted to constitute such breach or
default; (c) Immediately, upon the dissolution, insolvency or any adjudication in bankruptcy of, or any assignment for the benefit
of creditors by, the other party or if the other party ceases to conduct business in the ordinary or normal course; (d) Immediately,
if required by law or by any rule, regulation, order, decree, judgment or other governmental act of any governmental authority;
or (e) Immediately by Supplier if Supplier reasonably suspects that Distributor breached any of its obligations of confidentiality
or protection of Supplier’s proprietary rights. This Agreement shall automatically renew for two (2) years unless either
party, only with cause, gives written notice to the other of its intent not to renew no later than thirty (30) calendar days prior
to the expiration of the current term. Upon any notice of termination of the Agreement because of the distributors breach or default,
the distributor will have the right to cure any monetary breach within 15 days or receiving the notice. Provided that after initial
term of this agreement distributor is not in breach AND distributor has gained at least a 5% market share of the Ignition Interlock
market in Territory assigned (as determined by Dr. Richard Roth and published on the website rothinterlock.org) then the right
to terminate shall be that of the distributor only.

 

    	 

    	 

    

 

 

20.
EFFECT OF TERMINATION.

 

Upon
notice of termination of this Agreement for any reason, the following provisions shall apply: (a) Supplier shall have the right
to immediately appoint another distributor to serve existing customers and continue sales efforts in the Territory; (b) Supplier
may continue to fill any orders from Distributor that have been accepted by Supplier prior to the termination of this Agreement
under the terms and conditions of this Agreement; (c) All outstanding balances owed by Distributor to Supplier shall become immediately
due and payable to Supplier; (d) Both parties shall at all times thereafter refrain from any conduct that would be inconsistent
with or likely to cause confusion with respect to the nature of their business relationship; (e) All rights granted to Distributor
under this Agreement shall cease, and where appropriate, revert to Supplier; and (f) Supplier, in its sole discretion, shall have
the right, but shall in no way be obligated (unless otherwise required by law), to inspect and repurchase all or any quantity
of the Supplier Products (including Supplier Products for demonstration and parts to service the Supplier Products) then owned
or ordered by Distributor at the lesser of (i) the original price paid by Distributor for such Supplier Products, or (ii) at the
then-current price to Distributor, and under both (i) or (ii), less any applicable restocking or refurbishing charge. Supplier
shall have the right to assign such option to repurchase to any other person whom it may designate. No consideration or indemnity
shall be payable to Distributor either for loss of profit, goodwill, customers or other like or unlike items, nor for advertising
costs, costs of samples or supplies, termination of employees, employees’ salaries and other like or unlike items. In no
event shall Distributor continue to represent itself as a Supplier distributor or representative after termination of this Agreement.
Supplier shall have no liability to Distributor by reason of any termination by Supplier. Distributor shall indemnify and hold
harmless Supplier from and against any and all liability, loss, damages and costs (including reasonable attorneys’ fees)
arising out of any claim by Distributor or any third party standing in the right of Distributor to any right of entitlement contrary
to the express terms of this Section.

 

    	 

    	 

    

 

 

21.
INDEMNIFICATION.

 

Distributor
agrees to indemnify and hold Supplier harmless from any and all actions, awards, claims, losses, damages, costs and expenses (including
reasonable attorneys’ fees) attributable to Distributor’s breach of this Agreement or to any negligent, grossly negligent,
willful or unlawful acts or omissions of Distributor, its employees, officers, agents, subcontractors, dealers or representatives.

 

22.
RELATIONSHIP OF THE PARTIES.

 

Distributor
is an independent contractor and not an employee, agent, affiliate, partner or joint venture with or of Supplier. Neither Distributor
nor Supplier shall have any right to enter into any contracts or commitments in the name of, or on behalf of the other or to bind
the other in any respect whatsoever, except insofar as is allowed by this Agreement.

 

23.
FORCE MAJEURE.

 

Neither
party shall be liable in the event that its performance of this Agreement is prevented, or rendered so difficult or expensive
as to be commercially impracticable, by reason of an Act of God, labor dispute, unavailability of transportation, goods or services,
governmental restrictions or actions, war (declared or undeclared) or other hostilities, or by any other event, condition or cause
which is not foreseeable on the Effective Date and is beyond the reasonable control of the party. It is expressly agreed that
any failure of the United States Government to issue a required license for the export of any Supplier Product ordered by Distributor
shall constitute an event of force majeure. In the event of non-performance or delay in performance attributable to any such causes,
the period allowed for performance of the applicable obligation under this Agreement will be extended for a period equal to the
period of the delay. However, the party so delayed shall use its best efforts, without obligation to expend substantial amounts
not otherwise required under this Agreement, to remove or overcome the cause of delay. In the event that the performance of a
party is delayed for more than 6 months, the other party shall have the right, which shall be exercisable for so long as the cause
of such delay shall continue to exist, to terminate this Agreement without liability for such termination.

 

24.
LIMITATION OF LIABILITY.

 

SUPPLIER
SHALL IN NO EVENT BE LIABLE FOR ANY INDIRECT, SPECIAL, EXEMPLARY, INCIDENTAL OR CONSEQUENTIAL LOSS OR DAMAGE OR FOR ANY LOST PROFITS,
LOST SAVINGS OR LOSS OF REVENUES SUFFERED BY DISTRIBUTOR ARISING FROM OR IN ANY WAY CONNECTED WITH THIS AGREEMENT OR THE SALE,
DISTRIBUTION OR USE OF SUPPLIER PRODUCTS. DISTRIBUTOR SHALL INDEMNIFY SUPPLIER AND HOLD IT HARMLESS FROM ANY CLAIMS, DEMANDS,
LIABILITIES, SUIT OR EXPENSES OF ANY KIND ARISING OUT OF THE SALE, SUBLICENSE OR USE OF SUPPLIER PRODUCTS IN THE TERRITORY OR
BY DISTRIBUTOR’S CUSTOMERS. THIS SECTION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT FOR ANY REASON.

 

    	 

    	 

    

 

 

25.
GOVERNING LAW.

 

This
Agreement shall be governed in all respect by the laws of the State of Arizona, USA, which shall be applied without reference
to any conflict-of-laws rule under which different law might otherwise be applicable. The United Nations Convention on Contracts
for the International Sale of Goods shall not apply to any purchases or transactions entered into pursuant to this Agreement.
Venue for any lawsuits brought by the parties to this Agreement against each other regarding or as a result of this Agreement
shall be proper only in an appropriate Arizona State Court or the United States District Court for the District of Arizona. Distributor
hereby submits itself to the exclusive jurisdiction of said courts and consents to service of process by confirmed facsimile transmission
or commercial courier (with written verification of receipt returned to the sender).

 

26.
ASSIGNMENT AND DELEGATION.

 

Distributor
shall have no right to assign any of its rights or delegate its obligations under this Agreement without the prior written consent
of Supplier. Any assignment or delegation attempted without such written consent shall be void and of no legal effect whatsoever.
This Agreement shall be binding upon the parties’ respective successors and permitted assigns.

 

27.
SEVERABILITY.

 

In
the event that any provision of this Agreement shall be unenforceable or invalid under any applicable law or be so held by applicable
court or arbitration decision, such unenforceability or invalidity shall not render this Agreement unenforceable or invalid as
a whole, and, in such event, such provisions shall be changed and interpreted so as to best accomplish the objectives of such
unenforceable or invalid provision within the limits of applicable law.

 

28.
CONSTRUCTION.

 

The
headings or titles preceding the text of the Sections and Subsections are inserted solely for convenience of reference, and shall
not constitute a part of this Agreement, nor shall they affect the meaning, construction or effect of this Agreement. Both parties
have participated in the negotiation and drafting of this Agreement. This Agreement is executed in the English language and may
be translated into another language for informational purposes only. In the event an ambiguity or question of intent or interpretation
arises, the English version of this Agreement shall prevail and this Agreement shall be construed as if drafted by both of the
parties and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of
any of the provisions of this Agreement.

 

    	 

    	 

    

 

 

 

29.
NOTICE.

 

Any
notice, consent or other communication required or permitted under this Agreement shall be written in English and shall be deemed
given when (a) delivered personally; (b) sent by confirmed facsimile transmission; or (c) sent by commercial courier with written
verification of receipt returned to the sender. Notice, consent or other communications (but not service of process) may also
be given by e-mail. Rejection or other refusal to accept or the inability to deliver because of changed address or facsimile number
of which no notice was given shall be deemed to constitute receipt of the notice, consent or communication sent. Names, addresses
and facsimile numbers for notices (unless and until written notice of other names, addresses and facsimile numbers are provided
by either or both parties) are provided below.

 

	If to Distributor:	 
	 	 	 
	Company:	dba
    BLOW & DRIVE HOUSTON	 
	 	 	 
	Attention:	KIMBERLEE
    GLEASON	 
	 	 	 
	Address:	14011
    WHISPERING PALMS HOUSTON TX 77066	 

 

If
to Supplier:

 

Blow
& Drive Interlock Corporation

 

Attention:
Laurence Wainer

 

137
South Robertson Blvd, Suite 129,

 

Beverly
Hills, CA 90211

 

    	 

    	 

    

 

 

30.
ENTIRE AGREEMENT; MODIFICATIONS; NO WAIVER; COUNTERPARTS AND SURVIVAL.

 

This
Agreement and the Exhibit attached hereto (which is specifically incorporated herein by this reference) contain the full and entire
agreement between the parties with respect to the subject matter hereof. It supersedes all prior negotiations, representations
and proposals, written or otherwise, relating to its subject matter. Any modifications, revisions or amendments to this Agreement
must be set forth in a writing signed by authorized representatives of both parties. Distributor acknowledges and agrees that
any failure on the part of Supplier to enforce at any time or for any period of time, any of the provisions of this Agreement
shall not be deemed or construed to be a waiver of such provisions or of the right of Supplier thereafter to enforce each and
every provision. This Agreement may be made in several counterparts, each of which shall be deemed an original. The provisions
of this Agreement that, by express terms of this Agreement, will not be fully performed during the term of this Agreement, shall
survive the termination of this Agreement to the extent applicable.

 

IN
WITNESS WHEREOF the parties have caused this Exclusive Distribution Agreement to be executed and delivered by their duly authorized
representatives.

 

	 	 	1/6/2016
	dba
    BLOW & DRIVE HOUSTON	 	 
	 	 	 
	Blow
    & Drive Interlock Corporation (and any of its subsidiaries)
	 	 	 
	/s/
    Laurence Wainer 	 	1/6/2016
	Laurence
    Wainer	 	 
	 	 	 
	C.E.O	 	 

 

	Signature:	/s/
    Kimberlee K Gleason	 	Signature:	/s/
    Laurence Wainer
	 	Kimberlee K Gleason (Jan 11, 2016)	 	 	Laurence Wainer (Jan 11, 2016)
	Email:
    	kgleason67@comcast.net	 	Email:	info@blowanddrive.com

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