Document:

Exhibit 10.2

 

 

Order Form

 

	
        Registered Co. Name:
	FAVO Blockchain Inc	Contact Name:	Vincent Napolitano
	Registered Co. Number:	84-2598758	Contact Email:	vnapolitano@favogrp.com
	VAT(Moms) Number:	 	Contact Tel:	+1.516.835.7075
	Registered Address:	1461 Franklin Ave, 1st Floor South, Garden City, NY 11530
	Billing Address:	1461 Franklin Ave, 1st Floor South, Garden City, NY 11530

 

This Order Form together with the Terms and Conditions
below entered into by Hydro66 Svenska AB and the Customer, comprises the contract for the provision of the Services set out herein.
The Charges stated in this Order Form are exclusive of Swedish Energy Tax and Moms (VAT), where applicable. Recurring Charges shall
be invoiced monthly in advance commencing on the Ready For Use (RFU) Date except as otherwise specified below. Installation work
outside normal working hours may have to be supervised by a technician at the Hydro66 Remote hands rate. Normal working hours are
any time between 0800h and 1700h, Monday-Friday excluding Swedish public holidays. Minimum Contract Term: 12 months.

 

Service Details

 

	Service Description	Installation 

or one-off 

Charge SEK	Monthly 

Recurring 

Rental 

Charge SEK	Requested 

RFU Date
	Cryptographic servers and PSUs as described in Appendix 1 Hydro66_FAVO_Equipment Sale Agreement_20190802.pdf to be delivered to Hydro66 site at customer expense. Miners will be unpacked, installed, powered up and configured on to a suitable LAN infrastructure by Hydro66. Indicated Installation price includes managed switch LAN infrastructure, shelves and airflow containment, and WAN gateway device. Mining infrastructure will be connected to a mining pool under Hydro66 management.	0.00	 	maximum 10 

working days 

from receipt 

of 

equipment
	Computational Services in Hydrogrand 2 Data Center. Hydro66 will provide a managed hashrate service as described in Clause 3 of the Supply of Services set out below. Hydro66 will provide read access pool visibility which will show payouts, rewards history and performance data. The Service will be charged at 0.98 SEK per kilowatt hour for the first 6 months of service and 0.79 SEK per kilowatt hour thereafter. (Hydro66 make an initial estimate subject to confirmation and dependent on actual working equipment received of power consumption of 400 kW = 292.000 kWh per month. )	 	286.160 

(estimate)	 
	Storage Services. In accordance with clause 3.5 as set out below, Hydro66 will reserve provision of the Service for a period not exceeding 12 months for a fee of SEK 22.5 per kW per month.	 	 	 
	Remote Hands	1070 SEK/hr	 	 
	Remote Hands out of normal office hours	1690 SEK/hr	 	 

 

	/s/ vincent napolitano	 	05/08/2019
	Signed 	 	Date
	 	 	 
	Name	vincent napolitano	 	 

 

     

     

    

 

 

Accepted by Hydro66 Svenska AB

 

 

Director

 

Hydro66 commercial contact: sara.grundstrom@hydro66.com

 

Advance Payment will be due immediately on exchange
of signed Order Form. This Order Form will be accepted by Hydro66 when countersigned by a Director of Hydro66 and any deposit monies
indicated are received.

 

Bank Transfer details:

Currency SEK

Name of account: Hydro66 Svenska AB

Iban-number: SE8150000000051238222382

Bic: ESSESESS

Bank Address: SEB, 106 40 Stockholm Sweden

 

     

     

    

 

SUPPLY OF SERVICES CONTRACT

 

BY AND BETWEEN:

 

Hydro66 Svenska AB, a company incorporated and
existing under the laws of Sweden, with registration number 556967-6686 and having its registered office at Hydrogrand 2, 961-43,
Boden, Sweden (“Hydro66”);

 

AND

 

The company listed on the Order Form (the “Customer”).

 

WHEREAS

 

Following discussions between the parties the Customer
wishes to purchase computational services from Hydro66.

 

NOW the parties hereby agree as follows:

 

This Contract
is made up of the following:

 

(a) The Order
Form.

 

(b) The Conditions
as defined below

 

If there is any conflict or ambiguity between the
terms of the documents listed in paragraph 1, a term contained in a document higher in the list shall have priority over one contained
in a document lower in the list.

 

AGREED TERMS

 

1. INTERPRETATION

 

1.1 Definitions:

 

Business Day: a day other than a Saturday, Sunday
or public holiday in England, when banks in London are open for business.

 

Charges: the charges payable by the Customer
for the supply of the Services by the Supplier, as set out in the Order Form.

 

Conditions: these terms and conditions set out
in Clause 1 (Interpretation) to Clause 8 (General) (inclusive).

 

Contract: the contract between the Customer and the Supplier
for the supply of the Services in accordance with the Order Form and these Conditions.

 

“Order Form” means an order form in
the format provided by the Supplier pursuant to which the Customer may request Services;

 

Services: the computational services to be provided
by the Supplier pursuant to the Contract.

 

Services Start Date: the day on which the
Supplier is to start provision of the Services, as notified by the Supplier.

 

1.2 Interpretation:

 

(a) Any words following the terms including, include,
in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words,
description, definition, phrase or term preceding those terms.

  

    
 
UK: 15 Percy St, London W1T 1DS | SE: Hydrogränd 2, 961 43 Boden | hydro66.com

     

    

  

 

(b) A reference to writing or written includes email.

 

2. COMMENCEMENT AND TERM

 

The Contract shall commence on the date when it
has been signed by both parties and shall continue, unless terminated earlier in accordance with its terms, until the value of
the computational rewards generated by the Services falls below SEK 0.60 per KW per hour.

 

3. SUPPLY OF SERVICES

 

3.1.1 The Supplier
shall supply the Services to the Customer from the Services Start Date in accordance with the Contract.

 

3.2 The Supplier
will arrange for the deposit of calculation rewards generated by the Services to a wallet in which the private keys are held by
the Supplier. The Customer may obtain a public key to the wallet so that it can verify on a public blockchain explorer how much
has been earned.

 

3.3 The Supplier
will not be under any obligation to maintain a minimum volume of Services in the event any of the equipment used to provide the
Service is or becomes defective or its performance deteriorates.

 

3.4 Any repairs to the
equipment used to provide the Services other than reboots will be charged at Remote Hands cost as set out on the Order Form.

 

3.5 If the Services
cease to be provided because the value of the computational rewards generated by the Services falls below the amount set out in
Clause 2, the Customer may pay a fee (as set out on the Order Form) to reserve provision of the Services for a future date.

 

4. CUSTOMER’S OBLIGATIONS

 

4.1 The Customer shall co-operate with the Supplier
in all matters relating to the Services.

 

4.2 If the Supplier’s performance of its obligations
under the Contract is prevented or delayed by any act or omission of the Customer, its agents, subcontractors, consultants or employees,
the Supplier shall:

 

(a) not
be liable for any costs, charges or losses sustained or incurred by the Customer that arise directly or indirectly from such prevention
or delay;

 

(b) be entitled
to payment of the Charges despite any such prevention or delay; and

 

(c) be
entitled to recover any additional costs, charges or losses the Supplier sustains or incurs that arise directly or indirectly from
such prevention or delay.

 

5. CHARGES AND PAYMENT

 

5.1 In consideration for the provision of the Services,
the Customer shall pay the Supplier the Charges in accordance with this Clause 5. Amounts due will be satisfied by the sale of
calculation rewards generated by the Services and any additional rewards will be transferred to the Customer after the deduction
of any network fees following the submission of an invoice from the Customer.

 

5.2 The Charges are exclusive
of all applicable taxes (including but not limited to value-added, sales, use and excise taxes), customs duties, and regulatory
and other fees or surcharges relating to the provision of the Services (but for the avoidance of doubt exclusive of taxes on the
net income or net worth of the Supplier), and any related interest and penalties for the Services (together Taxes). The
Supplier may invoice such Taxes in addition to the Charges, and the Customer shall pay all such Taxes including those paid or
payable by the Supplier, except those Taxes that under applicable law are not permitted to be passed on by the Supplier to the
Customer, or those for which a valid exemption certificate is provided by the Customer to the Supplier prior to the delivery of
any Services.

    
 
UK: 15 Percy St, London W1T 1DS | SE: Hydrogränd 2, 961 43 Boden | hydro66.com

     

    

 

  

5.3 If the Customer fails to make any payment due
to the Supplier under the Contract by the due date for payment, then, without limiting the Supplier’s remedies under Clause 7 (Termination):

 

(a) the
Supplier shall be entitled but not obliged to charge the Customer penal interest pursuant to the Swedish Interest Ac (sv. Räntelag
1975:635) on the overdue amount from the due date up to the date of actual payment; and

 

(b) the Supplier
may suspend all Services until payment has been made in full.

 

5.4 All amounts due under the Contract from the
Customer to the Supplier shall be paid by in full without any set-off, counterclaim, deduction or withholding (other than any deduction
or withholding of tax as required by law).

 

6. LIMITATION OF LIABILITY

 

6.1 The restrictions on liability in this Clause 6 apply
to every liability arising under or in connection with the Contract including but not limited to liability in contract, tort (including
negligence), misrepresentation, restitution or otherwise.

 

6.2 Nothing in the Contract limits any liability which
cannot legally be limited, including liability for:

 

(a) death or
personal injury caused by negligence; and

 

(b) fraud or
fraudulent misrepresentation.

 

6.3 Subject to Clause 6.2, the Supplier’s total
liability to the Customer shall not exceed SEK100,000.

 

6.4 Subject to Clause 6.2, the following types of loss are wholly excluded:

 

(i) loss of
profits;

 

(ii) loss of
sales or business;

 

(iii) loss
of agreements or contracts;

 

(iv) loss of anticipated
savings;

 

(v) loss of
use or corruption of software, data or information;

 

(vi) loss of
or damage to goodwill; and

 

(vii) indirect
or consequential loss.

 

6.5 Unless the
Customer notifies the Supplier that it intends to make a claim in respect of an event within the notice period, the Supplier
shall have no liability for that event. The notice period for an event shall start on the day on which the Customer became, or
ought reasonably to have become, aware of the event having occurred and shall expire 3 months from that date. The notice must
be in writing and must identify the event and the grounds for the claim in reasonable detail.

  

    
 
UK: 15 Percy St, London W1T 1DS | SE: Hydrogränd 2, 961 43 Boden | hydro66.com

     

    

 

  

7. TERMINATION

 

7.1 Without affecting any other right or remedy
available to it, either party to the Contract may terminate it with immediate effect by giving written notice to the other party
if:

 

(a) the other
party commits a material breach of any term of the Contract which breach is irremediable or (if such breach is remediable) fails
to remedy that breach within a period of 30 days after being notified in writing to do so;

 

(b) the
other party takes any step or action in connection with its entering administration, provisional liquidation or any composition
or arrangement with its creditors (other than in relation to a solvent restructuring), being wound up (whether voluntarily or by
order of the court, unless for the purpose of a solvent restructuring), having a receiver appointed to any of its assets or ceasing
to carry on business or, if the step or action is taken in another jurisdiction, in connection with any analogous procedure in
the relevant jurisdiction;

 

(c) the
other party suspends, or threatens to suspend, or ceases or threatens to cease to carry on all or a substantial part of its business;
or

 

(d) the
other party’s financial position deteriorates to such an extent that in the terminating party’s opinion the other party’s capability
to adequately fulfil its obligations under the Contract has been placed in jeopardy.

 

7.2 Without affecting any other right or remedy
available to it, the Supplier may terminate the Contract with immediate effect by giving written notice to the Customer if the
Customer fails to pay any amount due under the Contract on the due date for payment.

 

7.3 On termination of the Contract for whatever reason:

 

(a) the
Customer shall immediately pay to the Supplier all of the Supplier’s outstanding unpaid invoices and interest and, in respect of
Services supplied but for which no invoice has been submitted, the Supplier may submit an invoice, which shall be payable immediately
on receipt;

 

(b) any
provision of the Contract that expressly or by implication is intended to come into or continue in force on or after termination
of the Contract shall remain in full force and effect; and

 

(c) termination
of the Contract shall not affect any of the rights, remedies, obligations or liabilities of the parties that have accrued up to
the date of termination, including the right to claim damages in respect of any breach of the Contract which existed at or before
the date of termination.

 

8. GENERAL

 

8.1 Force majeure. Neither party shall be in breach
of the Contract nor liable for delay in performing, or failure to perform, any of its obligations under the Contract if such delay
or failure result from events, circumstances or causes beyond its reasonable control.

  

    
 
UK: 15 Percy St, London W1T 1DS | SE: Hydrogränd 2, 961 43 Boden | hydro66.com

     

    

 

 

8.2 Assignment and other dealings.

 

Neither party may assign, transfer, charge, subcontract,
declare a trust over or deal in any other manner with any or all of its rights and obligations under the Contract without the other
party’s prior written consent.

 

8.3 Confidentiality.

 

(a) Each party undertakes that it shall at any time
during the Contract, and for a period of five years after termination of the Contract, disclose to any person any confidential
information concerning the business, affairs, customers, clients or suppliers of the other party or of any member of the group
to which the other party belongs, except as permitted by this Clause 8.3.

 

(b) Each party may disclose the other party’s confidential
information:

 

(i) to
its employees, officers, representatives, subcontractors or advisers who need to know such information for the purposes of carrying
out the party’s obligations under the Contract. Each party shall ensure that its employees, officers, representatives, subcontractors
or advisers to whom it discloses the other party’s confidential information comply with this Clause 8.3; and

 

(ii) as
may be required by law, a court of competent jurisdiction or any governmental or regulatory authority.

 

(c) Neither party shall use any other party’s confidential
information for any purpose other than to perform its obligations under the Contract.

 

8.4 Entire agreement.

 

(a)
The Contract constitutes the entire agreement between the parties and supersedes
and extinguishes all previous agreements, promises, assurances, warranties, representations and understandings between them,
whether written or oral, relating to its subject matter.

 

(b) Each
party acknowledges that in entering into the Contract it does not rely on and shall have no remedies in respect of any statement,
representation, assurance or warranty (whether made innocently or negligently) that is not set out in the Contract.

 

8.5 Variation. No variation of the Contract shall
be effective unless it is in writing and signed by the parties (or their authorised representatives).

 

8.6 Waiver.

 

(a) A
waiver of any right or remedy under the Contract or by law is only effective if given in writing and shall not be deemed a waiver
of any subsequent right or remedy.

 

(b) A failure
or delay by a party to exercise any right or remedy provided under the Contract or by law shall not constitute a waiver of that
or any other right or remedy, nor shall it prevent or restrict any further exercise of that or any other right or remedy. No single
or partial exercise of any right or remedy provided under the Contract or by law shall prevent or restrict the further exercise
of that or any other right or remedy.

 

8.7 Severance. If any
provision or part-provision of the Contract is or becomes invalid, illegal or unenforceable, it shall be deemed modified to
the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant
provision or part-provision shall be deemed deleted. Any modification to or deletion of a provision or part-provision under
this Clause 8.7 shall not affect the validity and enforceability of the rest of the Contract.

 

    
 
UK: 15 Percy St, London W1T 1DS | SE: Hydrogränd 2, 961 43 Boden | hydro66.com

     

    

  

  

8.8 Notices.

 

(a) Any notice or other communication given to
a party under or in connection with the Contract shall be in writing and shall be:

 

(i) delivered
by hand or by pre-paid first-class post or other next working day delivery service at its registered office (if a company) or its
principal place of business (in any other case); or

 

(ii) sent by
email to the address specified in the Order Form.

 

(b) Any notice or communication shall be deemed to have
been received:

 

(i) if delivered by hand,
on signature of a delivery receipt or at the time the notice is left at the proper address; and

 

(ii) if
sent by pre-paid first-class post or other next working day delivery service, at 9.00 am on the second Business Day after posting
or at the time recorded by the delivery service; and

 

(iii) if
sent by email, at the time of transmission, or, if this time falls outside business hours in the place of receipt, when business
hours resume. In this Clause 8.8(b)(iii), business hours means 9.00am to 5.00pm Monday to Friday on a day that is not a public
holiday in the place of receipt.

 

(c) This Clause 8.8 does not apply to the service
of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution.

 

8.9 Governing law. The Contract, and any dispute or
claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject matter or formation,
shall be governed by, and construed in accordance with the law of Sweden.

 

8.10 Jurisdiction. Each party irrevocably agrees
that the courts of Sweden shall have exclusive jurisdiction to settle any dispute or claim (including non-contractual disputes
or claims) arising out of or in connection with the Contract or its subject matter or formation.

  

    
 
UK: 15 Percy St, London W1T 1DS | SE: Hydrogränd 2, 961 43 Boden | hydro66.com

     

    

 

		Audit Trail

 

 

 

	TITLE	FAVO Order Form - Hydro66
	 	 
	FILE NAME	SO0094_FAVO_20190802.pdf
	 	 
	DOCUMENT ID	8257a311cd8eb88351a580f70d5ceab961a833e9
	 	 
	STATUS	● Completed

 

 

 

Document History

   

		05/08/2019 

                                                       19:43:19 UTC
	Sent for signature to Vincent Napolitano 

(vincenapolitano@yahoo.com)
and Anne Graf 

(anne.graf@hydro66.com) from paul.morrison@hydro66.com 

IP: 86.164.43.238

 

		05/08/2019

                                                                      20:21:01
UTC
	Viewed by Vincent Napolitano (vincenapolitano@yahoo.com)

 IP: 24.47.241.19

 

		05/08/2019

                                                                       20:21:29 UTC
	Signed by Vincent Napolitano (vincenapolitano@yahoo.com) 

IP: 24.47.241.19

 

		05/08/2019

                                                       21:00:54 UTC
	Viewed by Anne Graf (anne.graf@hydro66.com)

 IP: 80.170.86.109

 

		05/08/2019 

                                                       21:01:36 UTC
	Signed by Anne Graf (anne.graf@hydro66.com) 

IP: 80.170.86.109

 

		
        05/08/2019

        21:01:36 UTC
	The document has been completed.Exhibit
10.3

 

 

  

Management
Agreement

 

between

 

FAVO
Group, Llc.

 

1461
Franklin Ave, First Floor South, Garden City, New York, 11530

(Herein
Referred to as the “Company”)

 

and

 

FAVO
Realty, Inc.

 

1461
Franklin Ave, First Floor South, Garden City,
New York,

11530
(Herein Referred to as the “Client”)

  

     

     

    

 

This
Agreement is made as of this day August
1, 2019

 

WHEREAS,
the Client desires to retain the Company
and the Company desires to be retained by the Client,
all pursuant to the terms and conditions hereinafter set forth: NOW THEREFORE, in
consideration of the foregoing and the mutual promises and covenants herein contained, it
is agreed as follows:

 

1.
Management Services - The Client
hereby retains the Company to perform, day-to-day
management services related to corporate finance, market research, third
party service providers, consultants, advisors
and corporate governance. The Company
hereby accepts such retention and shall perform for the Client the duties
described herein, faithfully and to the best of its ability. In
this regard, the Company shall
devote such time as it deems necessary to carry out the Company’s
affairs, the exact length of time required for the pursuit of any new potential
opportunities is uncertain.

 

There
is no projection or the amount of time that the Client will actually devote to
the Company’s plan of
operation.

 

The
Company will have substantial flexibility in identifying and selecting a prospective
property. The Client is dependent
on the judgement of the Company in connection with this process. In
evaluating prospective properties, we would consider, among
other factors, the following:

 

		(i)	Costs
                                         associated with pursuing a property;

		(ii)	growth
                                         potential;

		(iii)	experiences,
                                         skills and availability of additional personnel
                                         necessary to pursue a potential new business opportunity;

		(iv)	necessary
                                         capital requirements;

		(v)	the
                                         competitive position of the property;

		(vi)	stage
                                         of development;
                                         and

		(vii)	the
                                         market acceptance of the potential services;

 

The
foregoing criteria are not intended to be exhaustive and there may be other criteria that Management
may deem relevant. In connection with an evaluation of a prospective or potential
opportunity, Management may be expected to conduct a due diligence review.

 

The
time and costs required to pursue new opportunities, which includes negotiating
and documenting relevant agreements and preparing requisite documents for filing pursuant to applicable securities laws,
cannot be ascertained with any degree of certainty.

  

     

     

    

 

The Company
agrees, to the extent reasonably required in the conduct of the business of the Client, and
at the Client’s
request, to place at the disposal of the Client
its judgement and experience and to provide business development services to the Client
including the following:

 

(I)
Provide appropriate support personal to implement business strategy and perform and
administer all day to day operations, determining investment criteria in
conjunction with our Board of Directors.

 

(II)
Sourcing, analyzing and executing asset acquisitions,
sales and financings.

 

(III)
Performing asset management duties, performing
property management duties, performing financial and accounting
management.

 

(IV)
Review business plans, projections and all
financial data.

 

(V)
Review and advise on prospective mergers and acquisitions, and
on any financing required to complete such transactions.

 

2.
TERM - The Companies retention
hereunder shall be for a term of twenty (20) years with mutually agreed upon
extensions commencing on the date of this Agreement.

 

3.
COMPENSATION - The Company shall be compensated
in accordance with the following schedule:

 

(I)
The client shall reimburse the Client up
to 2% of gross offering proceeds from all offerings for organization, offering
and marketing expenses.

 

(II)
Acquisition Fee: The Client
shall pay the Client 1.5% of the
total contract purchase price of each property acquired. The Client
will pay the Company or its permitted assignees the loan coordination fee
promptly upon the closing of the financing or refinancing.

 

(III)
Loan Coordination Fee:
The Client shall pay the Company
a loan coordination fee equal to 1.5% of any assumed, new
or supplemental debt incurred in connection with an acquired property, or
of 1.5% of 65% of the purchase
price if the asset is not leveraged. The Client
will pay the Company or its permitted assignees the loan coordination fee
promptly upon the closing of the financing or refinancing.

 

(III)
Yearly Management Fee:
The Client shall pay the Company
a monthly fee equal to one- twelfth of 1.50% of
the total value of our assets (including cash or cash equivalents) based
on the adjusted cost of our assets before reduction for depreciation, amortization, impairment
charges and cumulative acquisition costs charged to expense in accordance with generally accepted accounting
principles, or GAAP (adjusted
cost will include the purchase price, acquisition expenses, capital
expenditures and other customarily capitalized costs) and as adjusted for
appropriate closing dates for individual asset acquisitions. This fee will be
payable monthly in cash or shares of our common stock, at the option of Company.
This fee will be appropriately pro-rated
for any partial month. The Company
may request the management fees accelerated in advance up to 36 months. If the asset is disposed of prior to the 36 months
the Company will return the accelerated fees within 90 days.

  

    2

     

    

 

(IV)
Property Management Fee:
If the Company or an affiliate provides
property management and leasing services for our properties, the client will
pay fees equal to 4.0% of gross revenues from the properties managed.
The Client also will reimburse the
property manager and its affiliates for property-level expenses that any of
them pay or incur on our behalf, including salaries, bonuses
and benefits of persons employed by the property manager and its affiliates except for the salaries, bonuses
and benefits of persons who also serve as one of our executive officers or as an executive officer of the property manager or
its affiliates. The Company or an
affiliate may subcontract the performance of its property management and leasing services duties to third parties and pay all
or a portion of its 4.0% property management fee to the third parties with whom
it contracts for these services. If we contract directly with third parties for
such services, we will pay them customary market fees and will pay Manager
an oversight fee equal to 1.0% of the gross revenues of the property
managed. In no event will we pay our advisor or any affiliate both a property
management fee and an oversight fee with respect to any property. Furthermore, the Client
will pay the Company a monthly fee equal to 2% of
our monthly gross revenues in connection with the administration of our day-to-day operations and the performance and
supervision of the performance of such other administrative functions necessary for our management. In addition to the
general and administrative expenses fee, we may reimburse the Company for certain costs and expenses it incurs in connection
with the services it provides to us, including, but
not limited to, personnel costs.

 

(V)
Leasing Fee: The Client
shall pay the Company a commission with respect to a new lease equal to 50% of
the first month’s gross rent plus 4% of
the remaining fixed gross rent of the guaranteed lease term. In the event of
co-broker participation in a new lease for an real estate asset, the
leasing commission determined for a new lease, with respect to such
lease, will be 150% of the first
month’s gross rent plus 6% of
the remaining fixed gross rent of the guaranteed lease term. The Client
will pay a commission to Company with respect to a negotiated renewal of an
existing lease equal to 4% of the fixed gross rent of the guaranteed lease term
or, in the event of a co-broker,
6% of the fixed gross rent of the guaranteed lease term. In
no event shall the office leasing fees paid to the Company exceed customary
market rates. The Company may
subcontract the performance of its office leasing duties to third parties or affiliates and pay all or a portion of its
office leasing fee to such persons with whom it contracts for these services. Company
will be responsible for all fees payable to third parties or affiliates in connection with subcontracted office leasing
duties. The office leasing fee will be payable upon the earlier to occur of
rent commencement or tenant’s opening for business.

 

(VI)
Disposition fee: The Client
will pay the Company a commission upon the sale of one or more of our
properties or other assets in an amount equal to 1,5% of the sale price of the
asset, unless there is a conflict of interest. In
such an instance, the fee will be waived.

   

    3

     

    

 

(VII)
Development, Construction &
Landscaping Fees: The Client
will pay the Company a construction fee, development
fee and landscaping fee at market rates customary and competitive considering the size, type
and location of the asset in connection with the construction, development or
landscaping of a property.

 

(vii)
the client will pay the company a fair market related fee for all transactions outside
of the scope of works mentioned above. this is will determined by both parties prior
to any work commencing.

 

4.
EXPENSES - The Client will reimburse
the Company for any reasonable expenses incurred by the Company
in connection with the services rendered hereunder. These reasonable expenses
included but not limited to the following:

 

(i)The
Client will reimburse the Company
for expenses incurred (including personnel costs) related
to selecting, evaluating and making investments on our behalf, regardless
of whether we make the related investment. Personnel costs associated with providing
such services will be determined based on the amount of time incurred by the applicable employee of the Company
and the corresponding payroll and payroll related costs incurred by the Company.
In addition, we also will pay third parties,
or reimburse the Company or its affiliates,
for any investment-related expenses due to
third parties, including, but not
limited to, legal fees and expenses, travel
and communications expenses, costs of appraisals, accounting
fees and expenses, third-party brokerage
or finder’s fees, title insurance
expenses, survey expenses, property
inspection expenses and other closing costs, regardless of whether we make the related
investment.

 

5.
STATUS OF CLIENT - The Company shall
be deemed to be an independent management company, except as expressly provided
or authorized in this Agreement shall have authority to act for and represent
the Client. The Company
intends to conduct its activities so as to avoid being classified as an “Investment Company” or
a “Real Estate Investment Trust” under
the Investment Company Act
of 1940, and therefore avoid application of the costly and restrictive
registration and other provisions of the Investment Company Act
of 1940 and the regulations promulgated thereunder.

 

6.
NOTICES - Any notices hereunder shall be sent to the Client
and the Company at their respective addresses above set forth. Any
notice shall be given by registered or certified mail, postage prepaid, or
overnight receipted delivery service (such as Federal Express) and
shall be deemed to have been given when deposited in the United States
mail. Either party may designate any other address (including
email address) to which notice shall be given, by
giving written notice to the other of such change in address in the manner herein provided.

   

    4

     

    

 

7.
GOVERNING LAW - This Agreement has
been made in the State of New York
and shall be construed and governed in accordance with the laws thereof without regard to conflicts of
laws.

 

8.
ENTIRE AGREEMENT - This Agreement
contains the entire agreement between the parties, may not be altered or
modified, except in writing and signed by the party to be charged thereby and
supersedes any and all previous agreements between the parties.

 

9.
BINDING EFFECT - This Agreement
shall be binding upon the parties hereto and their respective heirs, administrators, successors, and
assigns.

 

10.
TERMINATION – Mutual termination agreement needed.

  

(this
has been left blank following the signing page of this agrrement)

  

    5

     

    

 

IN
WITNESS WHEREOF, the
parties hereto have executed this Agreement the day and year first above written.

 

Signed
on this 1st day
of August 2019

 

	FAVO GROUP, LLC	 	FAVO GROUP, LLC
	 	 	 
	/s/
    Vincent Napolitano	 	/s/
    Shaun Quin
	Vincent Napolitano
    - CEO	 	Shaun Quin
    - President
	 	 	 
	FAVO REALTY, INC	 	FAVO REALTY, INC
	 	 	 
	/s/
    Vincent Napolitano	 	/s/
    Shaun Quin
	Vincent Napolitano
    - CEO	 	Shaun Quin
    - President

 

 

 

6

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