Document:

Exhibit

EXHIBIT 10.16 

FEDERAL HOME LOAN BANK OF CHICAGO
2020 BOARD OF DIRECTORS COMPENSATION POLICY

GENERAL

Section 1261.21 of the Rules and Regulations of the Federal Housing Finance Agency requires the Board of Directors to adopt a written policy to provide for the payment of reasonable compensation to Bank Directors for the performance of their duties as members of the Board of Directors. Pursuant to that regulation, this 2020 Board of Directors' Compensation Policy ("Policy") sets forth the activities and functions for which attendance is necessary and appropriate and may be compensated, and sets forth the methodology for determining the amount of compensation to be paid. This Policy shall be reviewed annually by the Human Resources & Compensation Committee. 

COMPENSATION POLICY METHODOLOGY

The goal of the Policy is to appropriately compensate the Directors for actual attendance and participation at the meetings of the Board of Directors and the committees of the Board and also for work performed on behalf of the Board of Directors and the Bank apart from such meetings.  

The compensation provided in this Policy was determined after a review of comparative compensation studies by third parties with expertise in the compensation of Directors (McLagan ”Director Compensation Report” May 2019) and the compensation paid to Directors of other Federal Home Loan Banks in 2019.

PAYMENT STRUCTURE

Members of the Board will receive the following maximum annual payments as designated for their position, as further calculated pursuant to this Policy.

	
			
	Position
	Maximum Annual Compensation
	Position Duties

	Chairman
	$145,000
	Preside at the meetings of the Board of Directors and the Executive & Governance Committee and attend other committee meetings.  Represent the Bank at the Council of FHLBs. 

	Position
	Maximum Annual Compensation
	Position Duties

	Vice Chairman
	$130,000
	Attend meetings of the Board and other committee meetings, as well as chair meetings of the Board in the Chairman's absence. Represent the Bank at the Council of FHLBs.

	Audit Committee
	$130,000
	Attend meetings of the Board and meetings of committees to which such Director is appointed, as well as chair meetings of the Audit Committee.

	Committee Chairman
	$117,000
	Attend meetings of the Board and meetings of

5060020-1

	
			
	 
	 
	committees to which such Director is appointed, as well as chair meetings of committees to which such Directors is appointed Chairman.  

	Director
	$105,000
	Attend meetings of the Board and meetings of committees to which such Director is appointed.

In order to compensate Directors for their time while serving as Directors, a Director shall receive one quarter of their Maximum Annual Compensation following the end of each quarter. The payment shall compensate Directors for their time preparing for and attending in-person and telephonic meetings, attending Bank-sponsored member meetings and events, attending Community Investment Advisory Council meetings, attending FHLB System meetings, Board training, activities that provide information pertinent to the Bank or service on the Board of Directors that are learning opportunities (“enrichment”) (i.e. Board of Directors speaker sessions) and other activities related to service on the Board of Directors. 

In the event that a Director serves on the Board for only a portion of a calendar year, or only serves as Chairman of the Board, Vice Chairman of the Board, or a Committee Chair for a portion of a calendar year, then the Maximum Annual Compensation to which such Director is entitled for that calendar year shall be adjusted accordingly on a pro-rata basis.  

DEFERRAL OF COMPENSATION

A Director may elect to defer compensation paid under this Policy in accordance with the Federal Home Loan Bank of Chicago Board of Directors Deferred Compensation Plan, effective September 1, 2013.

EXPENSES

Each Director will be reimbursed for necessary and reasonable travel, subsistence and other related expenses incurred in connection with the performance of their official duties (including telephonic meetings or in-person meetings called at the request of the Federal Housing Finance Agency or other FHLB System body) as are payable to senior officers of the Bank under the Bank’s Employee Reimbursement Policy.

Directors are authorized to purchase upgrades for air travel from economy to business class or economy plus only.  This does not include upgrades to first class.  Air travel upgrades shall not exceed $100 per flight.

Pursuant to IRS tax code, certain Director expenses paid for by the Bank that do not qualify as a business-related expense will be recorded as other income and reported on a Director’s 1099 tax form for the appropriate reporting period.  

Each Director is responsible for all expenses incurred in conjunction with spousal travel. 

PERFORMANCE AND ATTENDANCE STANDARDS

The following performance criteria shall be considered in assessing a Director’s performance:

1. Did the Director satisfy the attendance standard (described below) for Board and committee meetings during the specific assessment period?

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2. Did the Director attend most of his or her scheduled in-person meetings in person?

		
	3. 
	Was the Director prepared for meetings? 

		
	4.
	Did the Director demonstrate knowledge of Bank policies and other relevant governance documents?

		
	5.
	Did the Director demonstrate understanding of the FHLB System? 

		
	6.
	Did the Director actively participate in meetings? 

		
	7.
	Did the Director participate in education, enrichment and training opportunities, excluding “Bank-related events” described in number 11. below, during the specific assessment period?

		
	8.
	Did the Director make decisions or suggestions that support the Bank’s mission and vision?

		
	9.
	Did the Director support Board decisions, even if he or she did not agree with the decision?

		
	10.
	Did the Director maintain confidentiality of the discussions at meetings? 

		
	11.
	Did the Director participate in Bank-related events (i.e., FHLB System meetings, member meetings, Bank-sponsored conferences, etc.)?

    
Each Director shall fulfill his or her responsibilities by regularly and consistently attending meetings of the Board of Directors and any assigned committees.  The Board's attendance standard shall be to attend in person or by telephone at least 75% of the total meetings of the Board and assigned committees, measured annually.  

The Chairman of the Board, Vice Chairman of the Board and Chairman of the Human Resources & Compensation Committee (each, a “Reviewer”) shall evaluate each Director’s attendance and performance bi-annually, prior to the release of the second quarter and fourth quarter payments.  The Reviewers may elect to reduce, suspend or eliminate the second and/or fourth quarter payment to any Director who does not fulfill his or her responsibilities by failing to meet the majority of the performance criteria set forth above.  A Director’s second quarter payment may also be reduced or suspended if it is deemed that the Director’s attendance at meetings of the full Board or committees to which the Director is appointed is not adequate.  

A Director’s fourth quarter payment will be eliminated if it is determined at the end of the calendar year that a Director has attended fewer than 75% of the combined meetings of the full Board and committees on which the Director serves (including in-person and telephonic) during such year.  

In the event that a Director serves on the Board for only a portion of a calendar year, the Reviewers shall evaluate the Director’s attendance and performance following the Director’s departure and prior to the release of the Director’s final payment, regardless of whether such review falls within the bi-annual review schedule for all Directors.  The Reviewers may elect to reduce or eliminate the final payment if it is determined that the Director did not fulfill his or her responsibilities by failing to meet the majority of the performance criteria set forth above.  The Director’s final payment will be eliminated if it 

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is determined that the Director failed to attend 75% of the total meetings of the Board of Directors and any assigned committees measured on a pro-rata basis, based on the number of meetings of the full Board and committees on which the Director served during the year up until the Director’s date of resignation.  

Actions to reduce, suspend or eliminate a compensation payment requires a majority vote of the Reviewers except in the case where a Reviewer has recused themselves from the evaluation process.  The Reviewers will each recuse themselves from evaluating their own attendance and performance.  Any decision to reduce, suspend or eliminate a compensation payment, consistent with the terms of this Policy,  must be unanimous among the other two Reviewers.  In the event the Vice Chairman of the Board is also the Chairman of the Human Resources & Compensation Committee, the decision to reduce, suspend or eliminate a compensation payment to the individual, consistent with the terms of this Policy, will be at the sole discretion of the Chairman of the Board.

The Reviewers may designate a Director’s absence for a good cause from a scheduled meeting as an “excused absence.”  An “excused absence” shall be recorded as a Director in attendance for the 75% attendance standard.  Examples of what may be an “excused absence” include, but are not limited to, a medical condition of the Director or their immediate family or an unexpected business conflict pertaining to the Director’s primary business.

POLICY INTERPRETATION

The Bank’s Corporate Secretary is authorized to interpret the provisions of this Policy and to address situations not anticipated by this Policy, consistent with all applicable regulatory requirements and statutes.

COMPLIANCE WITH LEGAL REQUIREMENTS

This Policy shall be in compliance with Section 7(i) of the Federal Home Loan Bank Act (12 U.S.C. §1427(i)), as amended, and any regulations issued by the Federal Housing Finance Agency, including 12 C.F.R. Part 1261.

EFFECTIVE DATE

This 2020 Board of Directors Compensation Policy is effective as of January 1, 2020.

APPROVED BY THE BOARD
OF DIRECTORS

Dated:  October 21, 2019

/s/ Laura M. Turnquest            
Its Corporate Secretary

- 4 -Exhibit 10.1

JOINT
VENTURE AND TERRITORIAL LICENSE AGREEMENT

by
and between

TOKENIZE-IT
S. A. AN AFFILIATE OF GBT TECHNOLOGIES S.A.

and

GBT
TECHNOLOGIES INC. GREENWICH INTERNTATIONAL HOLDINGS (a new wholly owned Costa Rica subsidiary)

 

JOINT
VENTURE AGREEMENT AND TERRITORIAL LICENSE AGREEMENT

 

This
JOINT VENTURE AGREEMENT (“Agreement”) is made as of March 6, 2020, by and between TOKENIZE-IT S.A.., a Costa
Rica company (“TOKENIZE”) and GBT TECHNOLOGIES INC., a Nevada corporation via its designated wholly owned subsidiary
Greenwich International Holdings, a Costa Rica corporation (“GBT”). TOKENIZE and GBT are hereinafter also referred
to collectively as the “Parties” and individually as a “Party.” This Agreement includes three parts and
incorporates the following agreements:

1.       Joint
Venture and Territorial License Agreement.

2.       Consulting
Agreement.

		3.	Certificate
                                         of good legal standing and affidavit of incumbency - Greenwich International Holdings,
                                         a Wholly owned subsidiary of GBT Technologies, Inc. AND Article of Incorporation of the
                                         Designated Joint Venture.

RECITALS

A.       TOKENIZE’s
principals and affiliates are highly experienced in the fields of technology, business, sales and product management. TOKENIZE
has development expertise and source codes for its proprietary Technologies: Advanced mobile chip technologies, Tracking, Radio
technologies, AI Core Engine, EDA, Mesh, Games, Data Storage, Networking, IT services, BPO development services, customer service,
technical support and quality assurance for business, customizable and dedicated inbound and outbound calls solutions, as well
as digital communications processing for enterprises and startups (“Technology Portfolio or TP”).

B.       GBT’s
principals and affiliates are highly experienced in the fields of technology, specifically Wireless Mesh Networks (WMNs), Internet
of Things (IoT) and Artificial Intelligence (AI), as well as public markets and financial management.

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C.       The
Parties desire to form a joint venture along with TERRITORIAL LICENSE AGREEMENT being
granted by TOKENIZE to pursue the Business, as hereafter defined.

NOW
THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as
follows:

AGREEMENT

1.                 
Definitions

1.1.           
“Affiliate” means any Person, other than the Company, that: (a) is controlled by, controls, or is under common
control with a Party (collectively, a “Controlled Person”); or (b) is controlled by, controls, or is under common
control with any such Controlled Person, in each case for so long as such control continues.

1.2.           
“Annual Plan” means a business operations plan detailing the Company’s goals and procedures for technical,
financial, and administrative activities for the Company’s next succeeding fiscal year, as approved each year and revised
from time to time by the Board.

1.3.           
“Applicable Law” means, as to any Person, any statute, law, rule, regulation, directive, treaty, judgment,
order, decree or injunction of any Governmental Authority that is applicable to or binding upon such Person or any of its properties.

1.4.           
“Articles” means the articles of incorporation of the Company substantially in the form attached hereto, as
amended from time to time.

1.5.           
“Board” means the board of directors of the Company.

1.6.           
 “Business” means the business of the Company as described in Section 2, as amended from time to time.

1.7.           
“Business Day” means a day on which commercial banks in New York, United States are generally open to conduct
their regular banking business.

1.8.           
“Closing Date” is defined in Section 3.2(a).

1.9.           
“Corporations Code” means the Nevada Revised Statutes, Chapter 78 et seq. as amended and in effect from time
to time.

1.10.       
“Company” is defined in Section 3.1.

1.11.       
“Company Interest” means, as to any Person, the percentage interest of the total capital stock of the Company
represented by the Securities then held by such Person divided by all then outstanding Securities (on an as-converted to Common
Stock basis and, to the extent warrants or options to purchase stock have vested, as exercised for Common Stock basis).

    	 	2	 

     

    

 

1.12.       
“Confidential Information” is defined in Section 5. 1 (a).

1.13.       
“Common Stock” means Common Stock of the Company as authorized by the Memorandum.

1.14.       
“Director” means a director of the Company with the powers and duties as specified in the Corporations Code
and the Articles.

1.15.       
“Disclosing Party” is defined in Section 5.1 (a).

1.16.       
“Effective Date” means the date of this Agreement.

1.17.       
“Establishment Date” is defined in Section 3.1.

1.18.       
“Governmental Authority” means any domestic or foreign government, governmental authority, court, tribunal,
agency or other regulatory, administrative or judicial agency, commission or organization, and any subdivision, branch or department
of any of the foregoing.

1.19.       
“Memorandum” means the memorandum of association of the Company substantially in the form of the attached Exhibit
1.19, as amended from time to time.

1.20.       
“Party” and “Parties” are defined in the opening paragraph of this Agreement.

1.21.       
“Person” means a natural individual, Governmental Authority, partnership, firm, corporation, or other business
association.

1.22.       
“Receiving Party” is defined in Section 5.1(a).

1.23.       
“Securities” means all outstanding Common Stock, and any other equity securities of the Company or instruments
exercisable for or convertible into Common Stock.

1.24.       
“Territory” means the world.

1.25.       
“Term” is defined in Section 7.1.

1.26.       
“Transaction Documents” means this Agreement, the Articles and the Memorandum, and their related documents.

2.                 
Purpose of Joint Venture

2.1.           
The Parties hereby associate themselves in a joint venture relationship which shall have as its principal purpose: (1) developing,
maintaining and supporting Technology Portfolio TP; (2) integrating Technology Portfolio TP into GTCH’s platforms and/or
products to be developed; and (3) sales and licensing and other activities incidental thereto.

3.                 
Establishment and Capitalization of the Company

3.1.           
Establishment. The Parties agree that the joint venture contemplated by this Agreement shall be carried out exclusively
through a newly-formed corporation (the “Company”). The Company’s corporate name shall be “GBT TOKENIZE”
The Parties shall use commercially reasonable efforts to cause the Establishment Date to occur on or before March 10, 2020. For
the purposes of this Agreement, “Establishment Date” means the date on which the Company is established in accordance
with the Corporations Code.

    	 	3	 

     

    

 

3.2.           
Services and Duties.

TOKENIZE
shall provide Company with licensed technology and expertise, as requested and mutually agreed to by Company and TOKENIZE. The
License to TOKENIZE TP, been provided as an exclusive license to the TP, throughout the State of California for the invented product/service
and the related platforms relating to the Technology (the "Licensed Item") and to use the know how to develop,
manufacture, sell, market and distribute the Licensed Item throughout the State of California. Upon generating any revenue from
this Agreement, the Joint Venture will earn the first right of refusal for other territories.

GBT
shall provide Company with financing as described below in Section 3.3 (a)(ii).

3.3.           
Capitalization.

(a)       Initial
Capitalization. The Company shall, as of the Establishment Date, have authorized capital stock consisting of one class of
shares designated as Common Stock with the rights set forth in the Memorandum and the Articles. The Memorandum and the Articles
shall initially provide for 100,000 authorized shares of Common Stock with par value of US$0.001 per share. The Company’s
initial equity shall be funded as follows:

(i)TOKENIZE
Initial Subscription. Following the Establishment Date (the “Closing Date”), TOKENIZE shall subscribe for 10,000 shares
of Common Stock, representing one half (50%) Company Interest. TOKENIZE’s consideration for the Company’s shares (50%
of Company) shall be the services and resources to be provided by TOKENIZE as described in Section 3.2 of this Agreement entitled
“Services and Duties” and otherwise required by this Agreement and by the Transaction Documents and by law.

(ii)GBT
Initial Subscription. On the Closing Date, GBT shall subscribe for 10,000 shares of Common Stock, representing a one-half (50%)
Company Interest GBT’s consideration for the Company’s shares (50% of Company) shall be issuance to the benefit of
the JV Establishment 100,000,000 common shares of GBT and additional consideration for the Company’s shares shall be the
financing provided by GBT to Company as follows:

GBT
will fund Company with all funds reasonably needed for implementation of the Business purposes as described in Section 2 of this
Agreement entitled “Purpose of Joint Venture.”.

(b)       Certain
Deliveries. On or before the Closing Date, and as a condition to the purchase and sale of the Common Stock:

(i)the
Establishment Date shall have occurred; and

(ii)each
Party shall have received one original of each of the fully executed Transaction Documents.

    	 	4	 

     

    

(c)
Acknowledgment of Agreement, Delivery of Share Certificates. Promptly after the Closing Date, the Parties shall cause
the Company (i) to deliver to each Party its written acknowledgment of, and

(d)       agreement
to abide by, the terms of this Agreement, and (ii) at the request of either TOKENIZE or GBT, to promptly issue and deliver
to TOKENIZE, or GBT, share certificates representing the shares of Common Stock purchased pursuant to this Section 3.2.

(d)       Additional
Investors. The Parties acknowledge that including additional strategic investors with expertise or strategic positions relevant
to the Company’s Business may be beneficial to the Company and, accordingly, agree that TOKENIZE or GBT may, in its discretion,
introduce additional parties to acquire Common Stock, in the form of newly issued shares. The selection of the strategic investors,
and the terms and conditions of any such investors’ purchase of Company shares shall be documented as determined by the
Company at such time.

3.4.           
Financial Assistance.

(a)       Each
Party shall at all times have the preemptive right to purchase Common Stock or other equity interests as set forth in the Articles.
The preemptive rights granted pursuant to this Section 3.4(a) shall cease to be of any further force or effect upon the closing
of an initial public offering of Securities.

(b)       At
the request of the Company, GBT shall invest additional funds in the Company. GBT shall make such additional investment in the
Company; provided that the Parties shall have no obligation to invest such funds in excess of $10,000.00 for the Parties in the
aggregate.

(c)       From
time to time, GBT may mutually agree to provide additional financial assistance to the Company, including in the form of promissory
notes, and, in such event, GBT shall make such financial assistance available to the Company.

3.5.           
Incentive Stock Option Plan. The Parties agree that an incentive stock option plan, or other agreed to method, providing
for reasonable incentive to management of Company that are directly involved in the Business would be beneficial to the Company,
and agree to cooperate in good faith with a view towards establishing such a plan within ninety (90) days after the Closing Date
on terms mutually agreed by the Parties.

4.                 
Operation and Management of the Company

4.1.           
Operation of the Company. Each Party agrees to take all actions necessary to ensure that the Company shall be operated
in accordance with the terms of this Agreement and the other Transaction Documents, including, without limitation, to vote all
Securities held by it (and to cause all Securities held by its permitted transferees under Section 8 to be voted) and to cause
the Directors nominated by it to vote to effect the terms hereof.

4.2.           
Board of Directors. The Company will be managed by the Board in accordance with the terms of this Agreement and Applicable
Law. The Board shall initially consist of three (3) Directors, one of whom shall be appointed by TOKENIZE and two shall be appointed
by GBT. The Chairman of the Board and President of the Company shall be appointed by the Directors appointed by GBT. Initially,
Mr. Michael Murray shall serve as the Initial Director, Chairman of the Board and as the President. The Directors appointed by
GBT shall have the authority to remove the Chairman of the Board and President and appoint a successor at any time.

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4.3.           
Removal; Reappointment of Directors. Any Director may be removed for cause in accordance with Applicable Law. In addition,
each Party having the right to appoint a Director pursuant to this Section 4 shall also have the right, in its sole discretion,
to remove such Director at any time, effective upon delivery of written notice to the Company, the Director to be removed and
to the other Party. In the case of a vacancy in the office of a Director for any reason (including removal pursuant to the preceding
sentence), the vacancy shall be filled by the Party that appointed the Director in question.

4.4.           
Board Meetings. The Chairman of the Board shall have the authority to convene Board meetings, including the authority to
specify the time and place of such meetings. Directors may attend Board meetings in person or by any other means of attendance
permitted under the Corporations Code, provided, however, that (a) the Board shall meet at least two (2) times during each semi-annual
fiscal period and (b) written notice of all Board meetings shall be given not less than 15 days in advance of each meeting (which
15 day period may be shortened by written waiver of Directors or actual attendance by Directors, without objection, at a Board
meeting). Board meetings shall be conducted in the English language and minutes of such meetings shall be prepared by the Company
in English and distributed to each Director promptly following each meeting. Proposals or reports brought before any Board meeting
for information or action (including without limitation the Company’s annual and quarterly financial statements) shall be
prepared in English.

4.5.           
Board Quorum, Resolutions. The quorum necessary for the transaction of business at a meeting of the Board shall be two
(2) Directors. Any action, determination or resolution of the Board shall require the affirmative vote of a majority of Directors
present at a meeting at which a valid quorum pursuant to this Section 4.5 is present.

4.6.           
Other Offices. In addition to the President, senior management of the Company will consist of such other officers as are
deemed to be necessary or appropriate by the Board.

4.7.           
Shareholders’ Meetings. Shareholders of the Company shall receive notice of each shareholders’ meeting at least
fifteen (15) days before the scheduled date of such meeting. The Company shall have at least one shareholders’ meeting each
calendar year. Such meeting will take place at such time and place as is determined by the Board. Meetings shall be conducted
in the English language, and minutes of such meetings shall be prepared by the Company in English.

4.8.           
Annual Plan. The President shall prepare, and the Board shall approve, an Annual Plan with respect to each fiscal year
of the Company no later than 45 days prior to the commencement of the fiscal year.

4.9.           
Financial Statements and Accounting Records. Financial statements for the Company, including, without limitation, a balance
sheet, income statement, statement of cash flows and statement of shareholders’ equity, shall be submitted by the Company
to each of the Parties (a) within 60 days after the end of the quarter of each fiscal year for such quarterly period, and (b)
within 45 days after the end of each fiscal year for such year. Each of the annual financial statements shall be audited and certified
by a reputable accounting firm retained by the Company, selected by GBT. All financial statements shall be prepared in accordance
with generally accepted accounting principles in the United States and in reasonable detail, and shall contain such financial
data as GBT may deem necessary in order to keep the Parties advised of the Company’s financial status (although such statements
need not include footnotes and may be subject to year-end adjustments). The Company shall, at GBT’s request, provide GBT
with such financial information as GBT may reasonably deem necessary for purposes of complying with its periodic reporting obligations
under U.S. securities law and shall cooperate with GBT in connection therewith, including in the preparation of quarterly financial
statements if required by GBT; provided, that Company shall bear any costs incurred in preparing or providing such information,
including, without limitation, in preparing additional financial statements and reconciling the Company’s financial statements
with U.S. generally accepted accounting principles for such purposes.

    	 	6	 

     

    

5.                 
Additional Covenants 

5.1.           
Confidentiality.

(a)       The
Parties recognize that, in connection with the performance of this Agreement, each Party (in such capacity, the “Disclosing
Party”) may disclose “Confidential Information” (as defined below) to the other Party (the “Receiving
Party”). For purposes of this Agreement, the term “Confidential Information” means (i) proprietary information
(whether owned by the Disclosing Party or a third party to whom the Disclosing Party owes a non-disclosure obligation) regarding
the Disclosing Party’s business or (ii) information which is marked as confidential at the time of disclosure to the Receiving
Party, or if in oral form, is identified as confidential at the time of oral disclosure and reduced in writing or other tangible
(including electronic) form including a prominent confidentiality notice and delivered to the Receiving Party within 10 days of
disclosure or (iii) technical information including but not limited to source code, documents, and product plans. “Confidential
Information” shall not include information which: (A) was known to the Receiving Party at the time of the disclosure by
the Disclosing Party; (B) has become publicly known through no wrongful act of the Receiving Party; (C) has rightfully been received
by the Receiving Party from a third party without breach of this provision; or (D) has been independently developed by the Receiving
Party without using any Confidential Information of the other Party. The Receiving Party agrees (x) not to use any such Confidential
Information for any purpose other than in the performance of its obligations under this Agreement or any Transaction Document
and (y) not to disclose any such Confidential Information, except (1) to its employees who are reasonably required to have the
Confidential Information in connection herewith or with any of the other Transaction Documents, (2) to its agents, representatives,
lawyers and other advisers that have a need to know such Confidential Information and (3) pursuant to, and to the extent of, a
request or order by a Governmental Authority. The Receiving Party agrees to take all reasonable measures to protect the secrecy
and confidentiality of, and avoid disclosure or unauthorized use of, the Disclosing Party’s Confidential Information.

(b)
Each Party acknowledges and agrees that (i) its obligations under this Section 5.1 are necessary and reasonable to protect the
other Party and its business, (ii) any violation of these provisions could cause irreparable injury to the other Party for which
money damages would be inadequate, and (iii) as a result, the other Party shall be entitled to obtain injunctive relief against
the threatened breach of the provisions of this Section 5.1 without the necessity of proving actual damages. The Parties agree
that the remedies set forth in this Section 5.1 are in addition to and in no way preclude any other remedies or actions that may
be available at law or under this Agreement.

5.2.           
Confidentiality of Agreement, Publicity. Each Party agrees that the terms and conditions of this Agreement and the Transaction
Documents shall be treated as confidential information and that no reference thereto shall be made thereto without the prior written
consent of the other Party (which consent shall not be unreasonably withheld) except (a) as required by Applicable Law including,
without limitation, by the U.S. Securities and Exchange Commission and other applicable countries’ Governmental Authorities,
(b) to its accountants, banks, financing sources, lawyers and other professional advisors, provided that such parties undertake
in writing (or are otherwise bound by rules of professional conduct) to keep such information strictly confidential, (c) in connection
with the enforcement of this Agreement, (d) in connection with a merger, acquisition or proposed merger or acquisition, or (e)
pursuant to joint press releases prepared in good faith. The Parties will consult with each other, in advance, with regard to
the terms of all proposed press releases, public announcements and other public statements with respect to the transactions contemplated
hereby.

6.                 
Warranties of the Parties

6.1.           
Warranties of TOKENIZE. TOKENIZE hereby represents and warrants to GBT that, as of the Effective Date and as of the Closing
Date, the following statements are and shall be true and correct:

(a)       Organization.
TOKENIZE is a corporation duly organized and validly existing under the laws of Costa Rica, and has the corporate power and authority
to enter into and perform this Agreement.

(b)       Authorization.
All corporate action on the part of TOKENIZE necessary for the authorization, execution and delivery of this Agreement and for
the performance of all of its obligations hereunder and thereunder has been taken, and this Agreement when fully executed and
delivered, shall each constitute a valid, legally binding and enforceable obligation of TOKENIZE .

    	 	7	 

     

    

 

(c)
       Government and Other Consents. Other than any licenses, permits, certifications
or authorizations which may be required in connection with the Business, as to which TOKENIZE makes no representation, no consent,
authorization, license, permit, registration or approval of, or exemption or other action by, any Governmental Authority, or any
other Person, is required in connection with TOKENIZE’s execution, delivery and performance of this Agreement, or if any
such consent is required, TOKENIZE has satisfied the applicable requirements.

(d)       Effect
of Agreement. TOKENIZE’s execution, delivery and performance of this Agreement will not (i) violate the Articles of
Incorporation of TOKENIZE or any provision of Applicable Law, (ii) violate any judgment, order, writ, injunction or decree of
any court applicable to TOKENIZE , (iii) have any effect on the compliance of TOKENIZE with any applicable licenses, permits
or authorizations which would materially and adversely affect TOKENIZE , (iv) result in the breach of, give rise to a right
of termination, cancellation or acceleration of any obligation with respect to (presently or with the passage of time), or otherwise
be in conflict with any term of, or affect the validity or enforceability of, any agreement or other commitment to which TOKENIZE
is a party and which would materially and adversely effect TOKENIZE , or (v) result in the creation of any lien, pledge,
mortgage, claim, charge or encumbrance upon any assets of TOKENIZE ; provide, however, that regulatory approval may be required
in connection with conducting the Business and TOKENIZE makes no representation with respect to any such approvals.

(e)       Litigation.
There are no actions, suits or proceedings pending or, to TOKENIZE’s knowledge, threatened, against TOKENIZE before any
Governmental authority which question TOKENIZE ’s right to enter into or perform this Agreement, or which question the validity
of this Agreement or any of the other Transaction Documents.

6.2.           
Warranties of GBT. GBT hereby represents and warrants to TOKENIZE that, as of the Effective Date and as of the Closing
Date, the following statements are and shall be true and correct:

(a)       Organization.
GBT is a corporation duly organized and validly existing under the laws of Nevada. GBT has the corporate power and authority to
enter into and perform this Agreement.

(b)       Authorization.
All corporate action on the part of GBT necessary for the authorization, execution and delivery of this Agreement and for
the performance of all of its obligations hereunder and thereunder has been taken, and this Agreement when fully executed and
delivered, shall each constitute a valid, legally binding and enforceable obligation of GBT.

(c)       Government
and Other Consents. Other than any licenses, permits or authorizations which may be required in connection with the Business,
as to which GBT makes no representation, no consent, authorization, license, permit, registration or approval of, or exemption
or other action by, any Governmental Authority, or any other Person, is required in connection with GBT’s execution, delivery
and performance of this Agreement, or if any such consent is required, GBT has satisfied any applicable requirements.

(d)       Effect
of Agreement. GBT’s execution, delivery and performance of this Agreement will not (i) violate the Certificate of Incorporation
of GBT or any provision of Applicable Law, (ii) violate any judgment, order, writ, injunction or decree of any court applicable
to GBT, (iii) have any effect on the compliance of GBT with any applicable licenses, permits or authorizations which would materially
and adversely affect GBT, (iv) result in the breach of, give rise to a right of termination, cancellation or acceleration of any
obligation with respect to (presently or with the passage of time), or otherwise be in conflict with, any term of, or affect the
validity or enforceability of any agreement or other commitment to which GBT is a party and which would materially and adversely
affect GBT, or (v) result in the creation of any lien, pledge, mortgage, claim, charge or encumbrance upon any assets of GBT;
provided, however, that regulatory approvals may be required in connection with conducting the Business and GBT makes no representation
with respect to any such approvals.

    	 	8	 

     

    

(e)       Litigation.
Other than litigation/arbitration as disclose to TOKENIZE via Mansour Khatib, GBT’s CMO, and/or via public filing by GBT,
there are no actions, suits or proceedings pending or, to GBT’s knowledge, threatened, against GBT before any Governmental
Authority which question GBT ‘s right to enter into or perform this Agreement, or which question the validity of this Agreement
or any of the other Transaction Documents.

7.                 
Term and Termination

7.1.           
Term. This Agreement shall be effective as of the Effective Date, and shall continue in effect until terminated pursuant
to Section 7.2 (the “Term”).

7.2.           
Termination. This Agreement may be terminated as follows:

(a)       Upon
the mutual written agreement of the Parties.

(b)       By
either Party, effective immediately upon written notice to the other Party(ies), if the other Party(ies) breach(es) any material
provision of this Agreement or of any of the other Transaction Documents and such breach continues for a period of fifteen (15)
days after the delivery of written notice of the default, describing the default in reasonable detail.

(c)       By
either Party, effective immediately upon written notice to the other Party and the Company, in the event that the other Party
is dissolved, liquidated or declared bankrupt or a voluntary or involuntary bankruptcy filing is made by such Party.

7.3.           
Effect. Upon termination of this Agreement, the Parties shall negotiate in good faith a possible purchase by one or more
Parties of all outstanding Securities held by the other Parties or the sale of the Company to a third party. In the event that,
notwithstanding their good faith negotiations, the Parties are unable to agree upon such a purchase or sale within thirty (30)
days of the notice of termination, the Parties shall cooperate to cause the Company to be liquidated as promptly as practical
in accordance with Applicable Law. The rights and obligations of the Parties under Sections 5.1, 5.2, this Section 7.3, and Sections
7.4, 7.5, 9 and 10 shall survive any termination of this Agreement.

7.4.           
Return of Confidential Information. Upon the termination of this Agreement, each Party, at its own cost, shall promptly
return to the Disclosing Party any and all documents and materials constituting or containing Confidential Information of the
Disclosing Party which are in its possession or control, or at its option, shall destroy such documents and materials and certify
such destruction in writing to the Disclosing Party.

7.5.           
Continuing Liability. Termination of this Agreement for any reason shall not release any Party from any liability or obligation
which has already accrued as of the effective date of such termination, and shall not constitute a waiver or release of, or otherwise
be deemed to prejudice or adversely affect, any rights, remedies or claims, whether for damages or otherwise, which a Party may
have hereunder, at law, equity or otherwise or which may arise out of or in connection with such termination.

8.                 
Transfer Restrictions

8.1.           
General Restriction. Each Party agrees to hold its Securities during the Term and, except as otherwise specifically provided
in this Agreement or agreed to in writing by the other Party, not to sell, transfer, assign, hypothecate or in any way alienate
any of such Party’s Securities or any right or interest therein except to an Affiliate of such Party in accordance with
the Articles. In the case of any transfer permitted hereunder, the transferring Party shall deliver to the other Party (a) at
least fifteen (15) days prior to such transfer, a written notice stating its intention to transfer the Securities to be transferred,
the name of the transferee, whether such transferee is an Affiliate, the number of Securities to be transferred, and the price
and other material terms and conditions of the transfer, and (b) except as otherwise specifically provided herein, on or prior
to the effective date of the transfer and in a form reasonably acceptable to the other Party and its counsel, the transferee’s
written acknowledgement of and agreement to be bound by, and to vote the transferred Securities at all times in accordance with,
the terms of this Agreement.

    	 	9	 

     

    

 

8.2.           
Legends. Each share certificate of the Company shall bear a legend, consistent with Applicable Law, providing that any
transfer of the Securities evidenced by such certificate is subject to approval by the Board.

8.3.           
Initial Public Offering. The foregoing restrictions shall cease to be of any further force or effect upon the closing date
of an initial public offering of Securities.

8.4.           
Board Approval. Each Party shall cause each Director that it has appointed pursuant hereto to vote to approve any transfer
of Securities that complies with the terms of this Section 8.

9.                 
Distributions. Subject to restrictions set forth in any financing document entered into by the Company, upon completion of
each Company’s business venture, the Company shall distribute its available cash (net cash generated from sale of the business
venture and/or its units less disbursements and appropriate reserves), to the Parties based on their relative equity interest
in the Company.

10.             
Indemnification. The Company shall indemnify and hold harmless its directors, officers, to the fullest extent permitted by
law, from and against any and all liabilities and damages (including legal expenses) imposed on or incurred by them in any way
relating to or arising out of their services to the Company, but not including costs in connection with a dispute(s) between the
parties to this Agreement. The Company shall purchase an insurance policy providing directors’ and officers’ liability
insurance.

11.             
General Provisions

11.1.       
Governing Law, Dispute Resolution. The validity, construction and enforceability of this Agreement shall be governed by
and construed in accordance with the laws of the State of Nevada. All disputes between the Parties arising out of this Agreement
shall be settled by the Parties amicably through good faith discussions upon the written request of either Party. In the event
that any such dispute cannot be resolved thereby within a period of thirty (30) days after such notice has been given, such dispute
shall be finally settled by arbitration in Clark County, California, using the English language, and in accordance with the rules
then in effect of the American Arbitration Association. The arbitrator(s) shall have the authority to grant specific performance,
and to allocate between the Parties the costs of arbitration in such equitable manner as the arbitrator(s) may determine. The
prevailing Party in the arbitration shall be entitled to receive reimbursement of its reasonable expenses incurred in connection
therewith. Judgment upon the award so rendered may be entered in any court having jurisdiction or application may be made to such
court for judicial acceptance of any award and an order of enforcement, as the case may be. Notwithstanding the foregoing, either
Party shall have the right to institute a legal action in a court of proper jurisdiction for injunctive relief and/or a decree
for specific performance pending final settlement by arbitration.

    	 	10	 

     

    

11.2.       
Notices and Other Communications. Any and all notices, requests, demands and other communications required or otherwise
contemplated to be made under this Agreement shall be in writing and in English and shall be provided by one or more of the following
means and shall be deemed to have been duly given (a) if delivered personally, when received, (b) if transmitted by facsimile,
on the first Business Day following receipt of a transmittal confirmation, or (d) if by international courier service, on the
second business day following the date of deposit with such courier service, or such earlier delivery date as may be confirmed
in writing to the sender by such courier service. All such notices, requests, demands and other communications shall be addressed
as follows:

 

If
to TOKENIZE:

 

TOKENIZE-IT
S.A.

Attention:
Pablo Gonzalez, Founder

Condominio
Montaña Luna, casa 14, piedades, Santa Ana, Costa Rica

Telephone:(506)
7209-9713

 

If
to GBT:

 

GBT
TECHNOLOGIES INC.

Attention:
Mansour Khatib, CMO

2500
Broadway, Suite F-125

Santa
Monica, CA 90404 USA

Telephone:(424)
238-4589

or
to such other address or facsimile number as a Party may have specified to the other Party in writing delivered in accordance
with this Section 9.2.

11.3.       
Language. This Agreement is in the English language only, which language shall be controlling in all respects, and all
versions hereof in any other language shall be for accommodation only and shall not be binding upon the Parties. All communications
and notices to be made or given pursuant to this Agreement shall be in the English language.

11.4.       
Severability. If any provision in this Agreement shall be found or be held to be invalid or unenforceable then the meaning
of said provision shall be construed, to the extent feasible, so as to render the provision enforceable, and if no feasible interpretation
would save such provision, it shall be severed from the remainder of this Agreement which shall remain in full force and effect
unless the severed provision is essential and material to the rights or benefits received by any Party. In such event, the Parties
shall use best efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which most nearly
affects the Parties’ intent in entering into this Agreement.

11.5.       
References, Subject Headings. Unless otherwise indicated, references to Sections and Exhibits herein are to Sections
of, and Exhibits to, this Agreement. The subject headings of the Sections of this Agreement are included for the purpose of convenience
of reference only, and shall not affect the construction or interpretation of any of its provisions.

11.6.       
Further Assurances. The Parties shall each perform such acts, execute and deliver such instruments and documents, and do
all such other things as may be reasonably necessary to accomplish the transactions contemplated in this Agreement.

11.7.       
Expenses. Each of the Parties will bear its own costs and expenses, including, without limitation, fees and expenses of
legal counsel, accountants, brokers, consultants and other representatives used or hired in connection with the negotiation and
preparation of this Agreement and consummation of the transactions contemplated hereby. All such expenses incurred by the Company
shall be borne by GBT to the maximum extent permitted by Applicable Law including, without limitation, expenses relating to the
formation of the Company, any transfer taxes for transfer of the Company stock to the Parties, registration charges, taxes, fees
and expenses relating to required governmental or regulatory approvals, notary fees and legal fees and expenses.

    	 	11	 

     

    

 

11.8.       
No Waiver. No waiver of any term or condition of this Agreement shall be valid or binding on a Party unless the same shall
have been set forth in a written document, specifically referring to this Agreement and duly signed by the waiving Party. The
failure of a Party to enforce at any time any of the provisions of this Agreement, or the failure to require at any time performance
by one or both of the other Parties of any of the provisions of this Agreement, shall in no way be construed to be a present or
future waiver of such provisions, nor in any way affect the ability of a Party to enforce each and every such provision thereafter.

11.9.       
Entire Agreement; Amendments. The terms and conditions contained in this Agreement (including the Exhibits hereto) and
the Transaction Documents constitute the entire agreement between the Parties and supersede all previous agreements and understandings,
whether oral or written, between the Parties with respect to the subject matter hereof. No agreement or understanding amending
this Agreement shall be binding upon any Party unless set forth in a written document which expressly refers to this Agreement
and which is signed and delivered by duly authorized representatives of each Party.

11.10.   
Assignment. The Parties shall have the right to assign its rights or obligations under this Agreement except in connection
with a transfer of all of such Party’s Securities in a manner permitted hereunder, under terms reasonably acceptable to
the non-assigning Party and providing for the assignee to be bound by the terms hereof, and for the assigning Party to remain
liable for the assignee’s performance of its obligations hereunder. This Agreement shall inure to the benefit of, and shall
be binding upon, the Parties and their respective successors and permitted assigns.

11.11.   
No Agency. The Parties are independent contractors. Nothing contained herein or done in pursuance of this Agreement shall
constitute any Party the agent of any other Party for any purpose or in any sense whatsoever.

11.12.   
No Beneficiaries. Nothing herein express or implied, is intended to or shall be construed to confer upon or give to any
person, firm, corporation or legal entity, other than the Parties and their Affiliates who hold Securities, any interests, rights,
remedies or other benefits with respect to or in connection with any agreement or provision contained herein or contemplated hereby.

11.13.   
Effective Date of Transaction Documents. The Transaction Documents (other than this Agreement and the Articles) shall become
effective concurrently with consummation, on the Closing Date, of the transactions described in Section 3.2(a).

11.14.   
Counterparts. This Agreement may be executed in any number of counterparts, and each counterpart shall constitute an original
instrument, but all such separate counterparts shall constitute only one and the same instrument.

Incidental
and Consequential Damages. No Party will be liable to the other Party(ies) under any contract, negligence, strict liability
or other theory for any indirect, incidental or consequential damages (including without limitation lost profits) with respect
to a breach of this Agreement or any Transaction Document.

    	 	12	 

     

    

11.15.   
IN WITNESS WHEREOF, the Parties have caused their respective duly authorized representatives to execute this Agreement as of the
Effective Date.

	 	GBT TECHNOLOGIES INC. 
	 	 
	Dated: March 6, 2020	By: /s/ Mansour Khatib
	 	Mansour Khatib
	 	Its:Chief Marketing Officer
	 	 
	 	TOKENIZE LLC
	 	 
	

Dated:
March 6, 2020

	By: /s/ Pablo Gonzalez
	 	Pablo Gonzalez
	 	

Its:Founder
and CEO

	 	 
	 	 
	 	 

    	 	13

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