Document:

ex_419422.htm

Exhibit 10.1

Execution Version

 

THIRD AMENDMENT

 

THIRD AMENDMENT, dated as of August 29, 2022 (this “Amendment”), among 1-800-Flowers.com, Inc. (the “Company”), the subsidiary borrowers party hereto (together with the Company, the “Borrowers”), the subsidiary guarantors party hereto (the “Guarantors”), the lenders party hereto, JPMorgan Chase Bank, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”), and the other entities party hereto. All capitalized undefined terms used in this Amendment shall have the meanings assigned thereto in the Credit Agreement (as defined below).

 

W I T N E S S E T H

 

WHEREAS, the Borrowers, the Guarantors, the lenders party thereto (the “Lenders”), the Administrative Agent and the other agents and entities party thereto are party to that certain Second Amended and Restated Credit Agreement, dated as of May 31, 2019 (as amended by the First Amendment, dated as of August 20, 2020, as further amended by the Second Amendment, dated as of November 8, 2021, and as further amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”; and as further amended by this Amendment, the “Amended Credit Agreement”).

 

WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make, and have made, certain loans to the Borrowers;

 

WHEREAS, the Company wishes to effect certain amendments to the Credit Agreement in accordance with Section 10.02(b) of the Credit Agreement;

 

WHEREAS, the Lenders party hereto constituting Required Lenders under the Credit Agreement, the Loan Parties and the Administrative Agent are willing to agree to the terms of this Amendment and the amendments to the Credit Agreement effected hereby; and

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein set forth, the parties hereto agree as follows:

 

ARTICLE 1.

    AMENDMENTS TO THE CREDIT AGREEMENT

 

(a) Section 7.11 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

Section 7.11. Financial Covenants.(a) Consolidated Leverage Ratio. The Company will not permit the Consolidated Leverage Ratio to exceed (i) as of the end of the Reference Period ending on or nearest to September 30, 2022, 4.25 to 1.00 (or, with respect to any other Section of this Agreement requiring compliance with this Section 7.11 (other than Section 6.01(c)), 3.25 to 1.00) and (ii) beginning with the Reference Period ending on or nearest to December 31, 2022 and thereafter (A) 2.50 to 1.00, as of the end of each Reference Period ending on or nearest to March 31, June 30 and December 31 of any fiscal year and (B) 3.25 to 1.00, as of the end of the Reference Period ending on or nearest to September 30, 2023 (such required level of Consolidated Leverage Ratio from time to time, the “Required Ratio”); provided that, the Required Ratios set forth above shall be temporarily increased by the Applicable Increase upon and following the consummation of a Material Acquisition (it being understood, for the avoidance of doubt, that (i) in no event shall the Required Ratio for any Reference Period ending on or nearest to September 30 of any fiscal year exceed 4.00 to 1.00 (other than, as set forth above, the Reference Period ending on or nearest to September 30, 2022, for which it shall not exceed 4.25 to 1.00) and (ii) no more than one such Applicable Increase shall be in effect at any time). (b) Consolidated Fixed Charge Coverage Ratio. The Company will not permit the Consolidated Fixed Charge Coverage Ratio as at the last day of any fiscal quarter of the Company to be less than (i) 1.00 to 1.00, as at the last day of the fiscal quarters ending on or nearest to September 30, 2022, December 31, 2022 and March 31, 2023 (or, with respect to any other Section of this Agreement requiring compliance with this Section 7.11 (other than Section 6.01(c)), 1.50 to 1.00) and (ii) 1.50 to 1.00, as at the last day of the fiscal quarter ending on or nearest to June 30, 2023 and each quarter thereafter.

 

 

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(b) The definition of “Capital Expenditures” is hereby amended and restated in its entirety as follows:

 

“Capital Expenditures” means, for any period, expenditures (including the aggregate amount of Capital Lease Obligations incurred during such period) made by the Company or any of its Subsidiaries to acquire or construct fixed assets, plant and equipment (including renewals, improvements and replacements, but excluding repairs) during such period computed in accordance with GAAP; provided that, for purposes of calculating the Consolidated Fixed Charge Coverage Ratio, there shall be excluded from Capital Expenditures expenditures made by the Company and its Subsidiaries in connection with (A) acquisition, construction, and/or development of housing facilities for harvesting employees and laborers, in an aggregate amount not to exceed, during the Reference Period ending on June 30, 2019 and thereafter, $4,000,000 and (B) logistical and distribution automation projects, in an aggregate amount not to exceed $35,000,000 (with amounts excluded in respect of such projects in any applicable Reference Period to be equal to the actual expenditures during such Reference Period).

 

(c) The references to “Consolidated Fixed Charge Ratio” in Section 7.07(d) of the Credit Agreement are hereby deleted and replaced with “Consolidated Fixed Charge Coverage Ratio”.

 

ARTICLE 2.

    REPRESENTATIONS AND WARRANTIES

 

Each of the Borrowers represents and warrants (as to itself and each of its Subsidiaries) to the lenders party hereto that:

 

(a)    The execution, delivery and performance of this Amendment are within each Borrower’s and each other Loan Party’s corporate powers and have been duly authorized by all necessary corporate and, if required, by all necessary shareholder action. This Amendment has been duly executed and delivered by each Loan Party party hereto and this Amendment and the Amended Credit Agreement constitute the legal, valid and binding obligations of each such Loan Party, enforceable against each such Loan Party in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

 

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(b)    The representations and warranties set forth in Article IV of the Amended Credit Agreement and in the other Loan Documents are true and correct in all material respects (without duplication of any materiality qualifier contained therein) immediately prior to and as of the Third Amendment Effective Date as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date).

 

(c)    At the time of and immediately after giving effect to this Amendment, no Default has occurred and is continuing.

 

ARTICLE 3.

    CONDITIONS PRECEDENT

 

This Amendment shall become effective on the first date on which the following conditions have been satisfied or waived (the “Third Amendment Effective Date”):

 

(a)    Executed Counterparts. The Administrative Agent shall have received executed counterparts of this Amendment from each Loan Party and Lenders constituting Required Lenders under the Credit Agreement.

 

(b)    Officer’s Certificate. The Administrative Agent shall have received a certificate dated the Third Amendment Effective Date and signed by a senior executive officer of the Company, certifying on behalf of the Company the accuracy of the representations and warranties set forth in Article 2 hereof.

 

(c)    Fees and Expenses. All fees and expenses required to be paid or reimbursed (and, in the case of expenses, invoiced at least two Business Days before the Third Amendment Effective Date) to the Administrative Agent and the lenders party hereto shall have been paid in full in cash on or before the Third Amendment Effective Date.

 

(d)    USA PATRIOT Act, Beneficial Ownership. The Administrative Agent and any lender party hereto shall have received, at least 3 Business Days prior to the Third Amendment Effective Date, all documentation and other information with respect to the Loan Parties that shall have been reasonably requested by the Administrative Agent or any lender party hereto in writing at least 5 Business Days prior to the Third Amendment Effective Date that the Administrative Agent or any lender party hereto reasonably determines is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act and 31 C.F.R. § 1010.230.

 

 

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ARTICLE 4.

GENERAL

 

(a)    Limited Effect. Except as expressly provided herein, the Credit Agreement and the other Loan Documents shall remain unmodified and in full force and effect. This Amendment shall not be deemed (a) to be a waiver of, or consent to, or a modification or amendment of, any other term or condition of the Credit Agreement or any other Loan Document or a waiver of any Default or Event of Default, (b) to prejudice any right or rights which the Administrative Agent or the Lenders may now have or may have in the future under or in connection with the Amended Credit Agreement or the other Loan Documents or any of the instruments or agreements referred to therein, as the same may be amended, restated, supplemented or modified from time to time, or (c) to be a commitment or any other undertaking or expression of any willingness to engage in any further discussion with the Company or any other Person with respect to any waiver, amendment, modification or any other change to the Credit Agreement or the Loan Documents or any rights or remedies arising in favor of Lenders or Administrative Agent, or any of them, under or with respect to any such documents.

 

(b)    Construction. On and after the Third Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import, and each reference to the Credit Agreement in any other Loan Document, shall be deemed a reference to the Amended Credit Agreement. This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement and the other Loan Documents.

 

(c)    Acknowledgement and Reaffirmation. By its execution hereof, each of the Company and the other Loan Parties party hereto hereby expressly agrees, with respect to each Loan Document to which it is a party (a) all of its obligations, liabilities and indebtedness under such Loan Document shall remain in full force and effect on a continuous basis regardless of the effectiveness of this Amendment, (b) nothing contained in this Amendment shall be construed as a substitution or novation of its obligations, liabilities and indebtedness under such Loan Document and (c) all of the liens and security interests created by and arising under such Loan Document remain in full force and effect on a continuous basis, regardless of the effectiveness of this Amendment, as collateral security for its obligations, liabilities and indebtedness under the Amended Credit Agreement and related Guarantees.

 

(d)    Execution in Counterparts; Loan Document. This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment and/or any document to be signed in connection with this Amendment and the transactions contemplated hereby shall be deemed to include Electronic Signatures, electronic deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be.

 

 

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(e)    Governing Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

(f)    Successors and Assigns. This Amendment shall be binding on and inure to the benefit of the parties and their respective heirs, beneficiaries, successors and permitted assigns.

 

(g)    Severability. Any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

(h)    Incorporation by Reference. The provisions of Sections 10.09(b), 10.09(c), 10.09(d) and 10.10 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

[Signature Pages Follow]

 

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

 

	
			 

				
			1-800-FLOWERS.COM, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ William E. Shea

				
			 

			
	
			 

				
			 

				
			Name:  William E. Shea

				
			 

			
	
			 

				
			 

				
			Title: Senior Vice President, Treasurer and

			Chief Financial Officer

				
			 

			

 

[Signature Page to Third Amendment]

 

 

 

  SUBSIDIARY BORROWERS:

 

BLOOMNET, INC.

NAPCO MARKETING CORP.

DESIGNPAC GIFTS LLC

800-FLOWERS, INC.

CHERYL & CO.

THE POPCORN FACTORY, INC.

 

 

By:      /s/ William E. Shea

Name: William E. Shea

Title: Vice President and Treasurer

 

 

HARRY & DAVID HOLDINGS, INC.

HARRY AND DAVID, LLC

 

 

By:      /s/ William E. Shea

Name: William E. Shea

Title: Vice President

 

[Signature Page to Third Amendment]

 

 

 

SUBSIDIARY GUARANTORS:

 

CONROY’S, INC.

1-800-FLOWERS RETAIL INC.

1-800-FLOWERS TEAM SERVICES, INC.

1-800-FLOWERS.COM FRANCHISE CO., INC.

BLOOMNET, INC.

CELEBRATIONS.COM, LLC

DESIGNPAC CO., INC.

FLOWERAMA OF AMERICA, INC.

GREAT FOODS, LLC

GUARDED REALTY HOLDINGS, LLC

NAPCO MARKETING CORP.

FRESH GIFT CARDS, INC.

DESIGNPAC GIFTS LLC

1-800-FLOWERS SERVICE SUPPORT CENTER, INC.

800-FLOWERS, INC.

CHERYL & CO.

MYFLORIST.NET, LLC

PERSONALIZATION UNIVERSE, LLC

THE POPCORN FACTORY, INC.

PERSONALIZATIONMALL.COM, LLC

SHARI'S BERRIES.COM, LLC

 

 

By:         /s/ William E. Shea

   Name: William E. Shea

   Title: Vice President and Treasurer

 

 

HARRY & DAVID HOLDINGS, INC.

HARRY AND DAVID, LLC

BEAR CREEK ORCHARDS, INC.

HARRY & DAVID OPERATIONS, INC.

 

 

By:         /s/ William E. Shea

   Name: William E. Shea

   Title: Vice President

 

[Signature Page to Third Amendment]

 

 

 

JPMORGAN CHASE BANK, N.A., as

Administrative Agent and a Lender

 

 

 By: /s/ Alicia Schreibstein

 Name: Alicia Schreibstein

 Title: Executive Director

 

[Signature Page to Third Amendment]

 

 

 

WELLS FARGO BANK, NATIONAL

ASSOCIATION, as

a Lender

 

 

By: /s/ Michael Zick

Name: Michael Zick

Title: Senior Vice President

 

[Signature Page to Third Amendment]

 

 

 

Citibank, N.A., as

a Lender

 

 

By: /s/ Jennifer R. Acerra

Name: Jennifer R. Acerra

Title: Authorized Signer

 

[Signature Page to Third Amendment]

 

 

 

BANK OF AMERICA, N.A., as

a Lender

 

 

By: /s/ Martha Novak

Name: Martha Novak

Title: Senior Vice President

 

[Signature Page to Third Amendment]

 

 

 

TD Bank, N.A., as

a Lender

 

 

By: /s/ John Topolovec

Name: John Topolovec

Title: Vice President

 

[Signature Page to Third Amendment]

 

 

 

Capital One, National Association, as

a Lender

 

 

By: /s/ Joseph DiLeo

Name: Joseph DiLeo

Title: Duly Authorized Signatory

 

[Signature Page to Third Amendment]

 

 

 

KeyBank, N.A., as

a Lender

 

 

By: /s/ John Macken

Name: John Macken

Title: Senior Vice President

 

[Signature Page to Third Amendment]

 

 

 

HSBC BANK USA, NATIONAL ASSOCIATION,

as a Lender

 

 

By: /s/ Andrew Wulff

Name: Andrew Wulff

Title: Senior Vice President #23405

 

[Signature Page to Third Amendment]Exhibit 10.1

 

ASSET ENTITIES INC.

100 Crescent Ct, 7th Floor

Dallas, TX 75201

 

April 21, 2022

 

Arshia
Sarkhani

100 Crescent Ct, 7th Floor

Dallas, TX 75201

 

		Re:	Employment Terms

 

Dear Arshia:

 

Asset Entities Inc. (the “Company”)
is pleased to offer you the position of Chief Executive Officer on the following terms.

 

Effective as of the Effective Date (as defined
below), you will be responsible for duties that are customary for a chief executive officer of a company like the Company, including,
but not limited to, proposing and developing the Company’s strategy and overall commercial objectives, managing the executive team,
and acting as the main point of communication with the Board of Directors. You will report to the Executive Chairman and the Board of
Directors. Your work will be performed remotely with occasional in-person meetings as the Company may from time to time request. Of course,
the Company may change your position, duties, and work location from time to time in its discretion.

 

Effective as of the Effective Date, your salary
will be $240,000 per year, less payroll deductions and withholdings, paid on the Company’s normal payroll schedule and you will
be eligible to receive an annual cash bonus as determined by the Board of Directors. On the Effective Date, you will receive an initial
cash bonus of $10,000.

 

Subject to the approval of the Company’s
Board of Directors, you will be granted restricted stock in the amount of 200,000 shares of Class B Common Stock (the “Shares”).
The Shares will be subject to the terms and conditions applicable to restricted stock granted under the Company’s 2022 Equity Incentive
Plan (the “Plan”), as described in the Plan and the applicable Restricted Stock Award Agreement (the “Award
Agreement”). The Shares will vest equally over three (3) years on each anniversary of the Award Agreement provided you remain
in continuous service with the Company, as described in the applicable Award Agreement. Upon a change of control of the Company, all of
the Shares will vest immediately. The Award Agreement will also contain non-competition and non-solicitation provisions.

 

During your employment, you will be eligible to
participate in the standard benefits plans offered to similarly situated employees by the Company from time to time, subject to plan terms
and generally applicable Company policies. A full description of these benefits is available upon request. The Company may change compensation
and benefits from time to time in its discretion.

 

     

     

    

 

Page 2

 

As of the Effective Date, the Company will provide
you with standard indemnification and directors’ and officers’ insurance.

 

As a Company employee, you will be expected to
abide by Company rules and policies. As a condition of employment, you must comply with the Employee Confidential Information and Inventions
Assignment Agreement which prohibits unauthorized use or disclosure of the Company’s proprietary information, among other obligations,
which you previously executed on March 9, 2022.

 

In your work for the Company, you will be expected
not to use or disclose any confidential information, including trade secrets, of any former employer or other person to whom you have
an obligation of confidentiality. Rather, you will be expected to use only that information which is generally known and used by persons
with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain,
or which is otherwise provided or developed by the Company. You agree that you will not bring onto Company premises any unpublished documents
or property belonging to any former employer or other person to whom you have an obligation of confidentiality. You hereby represent that
you have disclosed to the Company any contract you have signed that may restrict your activities on behalf of the Company.

 

Normal business hours are from 9:00 a.m. to 5:00
p.m., Monday through Friday. As an exempt salaried employee, you will be expected to work additional hours as required by the nature of
your work assignments.

 

The term of employment under this agreement shall
commence on the date of consummation of the Company’s proposed initial public offering (the “Effective Date”)
and shall continue until the two (2)-year anniversary of the Effective Date unless terminated earlier as hereinafter provided in this
agreement, or unless extended, on these or different terms, by mutual written agreement of you and the Company. You may terminate your
employment with the Company at any time and for any reason whatsoever simply by notifying the Company. The Company may terminate your
employment for “cause” by written notice to you. As used herein, “cause” shall mean (a) conviction of or plea
of guilty or nolo contendere to a felony under the laws of the United States or any state thereof; (b) commission of fraud or embezzlement
on the Company or any of its subsidiaries; (c) willful act or omission which results in an assessment of a civil or criminal penalty against
the Company or any of its subsidiaries that causes material financial or reputational harm to the Company or any of its subsidiaries;
(d) any intentional act of dishonesty resulting or intending to result in personal gain or enrichment at the expense of the Company or
any of its subsidiaries; (e) a violation by of law (whether statutory, regulatory or common law), causing a material financial harm or
material reputational harm to the Company or any of its subsidiaries; (f) a material violation of the Company’s (or any of its subsidiaries’)
bona fide, written equal employment opportunity, antidiscrimination, anti-harassment, or anti-retaliation policies; (g) material breach
of this agreement; (h) the consistent abuse of alcohol, prescription drugs or controlled substances, which interferes with the performance
of your duties to the Company; (i) failure to execute the duties and responsibilities of the officer position which you hold; (j) a breach
or default of your obligations to the Company or under this Agreement; or (k) excessive absenteeism other than for reasons of illness.

 

     

     

    

 

Page 3

 

This offer is contingent upon a reference check
and satisfactory proof of your right to work in the United States. You agree to assist as needed and to complete any documentation at
the Company’s request to meet these conditions.

 

This letter, together with your Employee Confidential
Information and Inventions Assignment Agreement, forms the complete and exclusive statement of your employment agreement with the Company.
It supersedes any other agreements or promises made to you by anyone, whether oral or written. Changes in your employment terms, other
than those changes expressly reserved to the Company’s discretion in this letter, require a written modification signed by an officer
of the Company.

 

Please sign and date this letter, and the enclosed
Employee Confidential Information and Inventions Assignment Agreement and return them to me by April 25, 2022, if you wish to accept employment
at the Company under the terms described above. If you accept our offer, this agreement will become effective as of the Effective Date.

 

We look forward to your favorable reply and to
a productive and enjoyable work relationship.

 

Sincerely,

 

	/s/ Michael Gaubert	 	 
	Michael Gaubert, Executive Chairman	 	 
	 	 	 
	Understood and Accepted:	 	 
	 	 	 
	/s/ Arshia Sarkhani	 	April 21, 2022
	Arshia Sarkhani	 	Date

 

Attachment: Employee Confidential Information
and Inventions Assignment Agreement

 

     

     

    

 

EMPLOYEE CONFIDENTIAL INFORMATION AND INVENTIONS
ASSIGNMENT AGREEMENT

 

In consideration of my employment
or continued employment by Asset Entities Inc., a Nevada corporation (“Company”),
and the compensation paid to me now and during my employment with the Company, I agree to the terms of this Agreement as follows:

 

1.
Confidential Information Protections.

 

1.1
Nondisclosure; Recognition of Company’s Rights. At all times during and after my employment, I will hold in confidence
and will not disclose, use, lecture upon, or publish any of Company’s Confidential Information (defined below), except as may be
required in connection with my work for Company, or as expressly authorized by the Chief Executive Officer or President at the direction
of the Board of Directors of Company. I will obtain the Chief Executive Officer or President’s written approval before publishing
or submitting for publication any material (written, oral, or otherwise) that relates to my work at Company and/or incorporates any Confidential
Information. I hereby assign to Company any rights I may have or acquire in any and all Confidential Information and recognize that all
Confidential Information shall be the sole and exclusive property of Company and its assigns.

 

1.2
Confidential Information. The term “Confidential Information” shall mean any and all confidential knowledge,
data or information related to Company’s business or its actual or demonstrably anticipated research or development, including without
limitation (a) trade secrets, inventions, ideas, processes, computer source and object code, data, formulae, programs, other works of
authorship, know-how, improvements, discoveries, developments, designs, and techniques; (b) information regarding products, services,
plans for research and development, marketing and business plans, budgets, financial statements, contracts, prices, suppliers, and customers;
(c) information regarding the skills and compensation of Company’s employees, contractors, and any other service providers of Company;
and (d) the existence of any business discussions, negotiations, or agreements between Company and any third party.

 

1.3
Third Party Information. I understand that Company has received and in the future will receive from third parties confidential
or proprietary information (“Third Party Information”) subject to a duty on Company’s part to maintain the confidentiality
of such information and to use it only for certain limited purposes. During and after the term of my employment, I will hold Third Party
Information in strict confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection
with their work for Company) or use, Third Party Information, except in connection with my work for Company or unless expressly authorized
by an officer of Company in writing.

 

1.4
No Improper Use of Information of Prior Employers and Others. I represent that my employment by Company does not and will not
breach any agreement with any former employer, including any noncompete agreement or any agreement to keep in confidence or refrain from
using information acquired by me prior to my employment by Company. I further represent that I have not entered into, and will not enter
into, any agreement, either written or oral, in conflict with my obligations under this Agreement. During my employment by Company, I
will not improperly make use of, or disclose, any information or trade secrets of any former employer or other third party, nor will I
bring onto the premises of Company or use any unpublished documents or any property belonging to any former employer or other third party,
in violation of any lawful agreements with that former employer or third party. I will use in the performance of my duties only information
that is generally known and used by persons with training and experience comparable to my own, is common knowledge in the industry or
otherwise legally in the public domain, or is otherwise provided or developed by Company.

 

    1

     

    

 

2.
Inventions.

 

2.1
Definitions. As used in this Agreement, the term “Invention” means any ideas, concepts, information, materials,
processes, data, programs, know-how, improvements, discoveries, developments, designs, artwork, formulae, other copyrightable works, and
techniques and all Intellectual Property Rights in any of the items listed above. The term “Intellectual Property Rights”
means all trade secrets, copyrights, trademarks, mask work rights, patents and other intellectual property rights recognized by the laws
of any jurisdiction or country. The term “Moral Rights” means all paternity, integrity, disclosure, withdrawal, special
and any other similar rights recognized by the laws of any jurisdiction or country.

 

2.2
Prior Inventions. I have disclosed on Exhibit A a complete list of all Inventions that (a) I have, or I have caused
to be, alone or jointly with others, conceived, developed, or reduced to practice prior to the commencement of my employment by Company;
(b) in which I have an ownership interest or which I have a license to use; (c) and that I wish to have excluded from the scope of this
Agreement (collectively referred to as “Prior Inventions”). If no Prior Inventions are listed in Exhibit A or
if I have not completed Exhibit A, I warrant that there are no Prior Inventions. I agree that I will not incorporate, or permit
to be incorporated, Prior Inventions in any Company Inventions (defined below) without Company’s prior written consent. If, in the
course of my employment with Company, I incorporate a Prior Invention into a Company process, machine or other work, I hereby grant Company
a non-exclusive, perpetual, fully-paid and royalty-free, irrevocable and worldwide license, with rights to sublicense through multiple
levels of sublicensees, to reproduce, make derivative works of, distribute, publicly perform, and publicly display in any form or medium,
whether now known or later developed, make, have made, use, sell, import, offer for sale, and exercise any and all present or future rights
in, such Prior Invention.

 

2.3
Assignment of Company Inventions. Inventions assigned to the Company or to a third party as directed by the Company pursuant
to the subsection titled Government or Third Party are referred to in this Agreement as “Company Inventions.” Subject
to the subsection titled Government or Third Party and except for Inventions that I can prove qualify fully under the provisions of California
Labor Code section 2870 and I have set forth in Exhibit A, I hereby assign and agree to assign in the future (when any such Inventions
or Intellectual Property Rights are first reduced to practice or first fixed in a tangible medium, as applicable) to Company all my right,
title, and interest in and to any and all Inventions (and all Intellectual Property Rights with respect thereto) made, conceived, reduced
to practice, or learned by me, either alone or with others, during the period of my employment by Company. Any assignment of Inventions
(and all Intellectual Property Rights with respect thereto) hereunder includes an assignment of all Moral Rights. To the extent such Moral
Rights cannot be assigned to Company and to the extent the following is allowed by the laws in any country where Moral Rights exist, I
hereby unconditionally and irrevocably waive the enforcement of such Moral Rights, and all claims and causes of action of any kind against
Company or related to Company’s customers, with respect to such rights. I further acknowledge and agree that neither my successors-in-interest
nor legal heirs retain any Moral Rights in any Inventions (and any Intellectual Property Rights with respect thereto).

 

2.4
Obligation to Keep Company Informed. During the period of my employment and for one (1) year after my employment ends, I will
promptly and fully disclose to Company in writing (a) all Inventions authored, conceived, or reduced to practice by me, either alone or
with others, including any that might be covered under California Labor Code section 2870, and (b) all patent applications filed by me
or in which I am named as an inventor or co-inventor.

 

2.5
Government or Third Party. I agree that, as directed by the Company, I will assign to a third party, including without limitation
the United States, all my right, title, and interest in and to any particular Company Invention.

 

    2

     

    

 

2.6
Enforcement of Intellectual Property Rights and Assistance. During and after the period of my employment and at Company’s
request and expense, I will assist Company in every proper way, including consenting to and joining in any action, to obtain and enforce
United States and foreign Intellectual Property Rights and Moral Rights relating to Company Inventions in all countries. If the Company
is unable to secure my signature on any document needed in connection with such purposes, I hereby irrevocably designate and appoint Company
and its duly authorized officers and agents as my agent and attorney in fact, which appointment is coupled with an interest, to act on
my behalf to execute and file any such documents and to do all other lawfully permitted acts to further such purposes with the same legal
force and effect as if executed by me.

 

2.7
Incorporation of Software Code. I agree that I will not incorporate into any Company software or otherwise deliver to Company
any software code licensed under the GNU General Public License or Lesser General Public License or any other license that, by its terms,
requires or conditions the use or distribution of such code on the disclosure, licensing, or distribution of any source code owned or
licensed by Company except as expressly authorized by the Company or in strict compliance with the Company’s policies regarding
the use of such software.

 

3.
Records. I agree
to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that is required by
the Company) of all Inventions made by me during the period of my employment by the Company, which records shall be available to, and
remain the sole property of, the Company at all times.

 

4.
Additional Activities. I agree that during the term of my employment
by Company, I will not (a) without Company’s express written consent, engage in any employment or business activity that is competitive
with, or would otherwise conflict with my employment by, Company; and (b) for the period of my employment by Company and for one (1) year
thereafter, I will not either directly or indirectly, solicit or attempt to solicit any employee, independent contractor, or consultant
of Company to terminate his, her or its relationship with Company in order to become an employee, consultant, or independent contractor
to or for any other person or entity. Furthermore, I agree that during the term and thereafter, I shall not disparage the Company, any
officer or director of the Company or any affiliate or agent of the Company.

 

5.
Return Of Company Property.
Upon termination of my employment or upon Company’s request at any other time, I will deliver to Company all of Company’s
property, equipment, and documents, together with all copies thereof, and any other material containing or disclosing any Inventions,
Third Party Information or Confidential Information and certify in writing that I have fully complied with the foregoing obligation. I
agree that I will not copy, delete, or alter any information contained upon my Company computer or Company equipment before I return it
to Company. In addition, if I have used any personal computer, server, or e-mail system to receive, store, review, prepare or transmit
any Company information, including but not limited to, Confidential Information, I agree to provide the Company with a computer-useable
copy of all such Confidential Information and then permanently delete and expunge such Confidential Information from those systems; and
I agree to provide the Company access to my system as reasonably requested to verify that the necessary copying and/or deletion is completed.
I further agree that any property situated on Company’s premises and owned by Company is subject to inspection by Company’s
personnel at any time with or without notice. Prior to the termination of my employment or promptly after termination of my employment,
I will cooperate with Company in attending an exit interview and certify in writing that I have complied with the requirements of this
section.

 

6.
Notification Of New Employer. If I leave the employ of Company,
I consent to the notification of my new employer of my rights and obligations under this Agreement, by Company providing a copy of this
Agreement or otherwise.

 

7.
General Provisions.

 

7.1
Governing Law and Venue. This Agreement and any action related thereto will be governed and interpreted by and under the laws
of the State of Nevada, without giving effect to any conflicts of laws principles that require the application of the law of a different
state. I expressly consent to personal jurisdiction and venue in the state and federal courts for the county in which Company’s
principal place of business is located for any lawsuit filed there against me by Company arising from or related to this Agreement.

 

    3

     

    

 

7.2
Severability. If any provision of this Agreement is, for any reason, held to be invalid or unenforceable, the other provisions
of this Agreement will remain enforceable and the invalid or unenforceable provision will be deemed modified so that it is valid and enforceable
to the maximum extent permitted by law.

 

7.3
Survival. This Agreement shall survive the termination of my employment and the assignment of this Agreement by Company to
any successor or other assignee and shall be binding upon my heirs and legal representatives.

 

7.4
Employment. I agree and understand that nothing in this Agreement shall give me any right to continued employment by Company,
and it will not interfere in any way with my right or Company’s right to terminate my employment at any time, with or without cause
and with or without advance notice.

 

7.5
Notices. Each party must deliver all notices or other communications required or permitted under this Agreement in writing
to the other party at the address listed on the signature page, by courier, by certified or registered mail (postage prepaid and return
receipt requested), or by a nationally-recognized express mail service. Notice will be effective upon receipt or refusal of delivery.
If delivered by certified or registered mail, notice will be considered to have been given five (5) business days after it was mailed,
as evidenced by the postmark. If delivered by courier or express mail service, notice will be considered to have been given on the delivery
date reflected by the courier or express mail service receipt. Each party may change its address for receipt of notice by giving notice
of the change to the other party.

 

7.6
Injunctive Relief. I acknowledge that, because my services are personal and unique and because I will have access to the Confidential
Information of Company, any breach of this Agreement by me would cause irreparable injury to Company for which monetary damages would
not be an adequate remedy and, therefore, will entitle Company to injunctive relief (including specific performance). The rights and remedies
provided to each party in this Agreement are cumulative and in addition to any other rights and remedies available to such party at law
or in equity.

 

7.7
Waiver. Any waiver or failure to enforce any provision of this Agreement on one occasion will not be deemed a waiver of that
provision or any other provision on any other occasion.

 

7.8
Export. I agree not to export, reexport, or transfer, directly or indirectly, any U.S. technical data acquired from Company
or any products utilizing such data, in violation of the United States export laws or regulations.

 

7.9
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all
of which shall be taken together and deemed to be one instrument.

 

7.10 Entire Agreement.
If no other agreement governs nondisclosure and assignment of inventions during any period in which I was previously employed or am in
the future employed by Company as an independent contractor, the obligations pursuant to sections of this Agreement titled Confidential
Information Protections and Inventions shall apply. This Agreement is the final, complete and exclusive agreement of the parties with
respect to the subject matter hereof and supersedes and merges all prior communications between us with respect to such matters. No modification
of or amendment to this Agreement, or any waiver of any rights under this Agreement, will be effective unless in writing and signed by
me and the Company. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this
Agreement.

 

    4

     

    

 

This Agreement shall be effective
as of the first day of my employment with Company.

 

	 	COMPANY:
	 	 
	 	Asset Entities Inc.
	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 
	 	 
	 	Address:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	EMPLOYEE:
	 	 
	 	I have read, understand, and accept this agreement and have been given the opportunity to review it with independent legal counsel.
	 	 
	 	 
	 	(Signature)
	 	 
	 	 
	 	Name (Please Print)
	 	 
	 	 
	 	Date
	 	 
	 	Address:	 
	 	 	 
	 	 	 
	 	 	 	 

 

    5

     

    

 

Exhibit
A

 

INVENTIONS

 

1.   Prior
Inventions Disclosure. The following is a complete list of all Prior Inventions (as provided in Subsection 2.2 of the attached Employee
Confidential Information and Inventions Assignment Agreement):

 

☐   None

 

☐   See
immediately below:

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