Document:

Exhibit

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Exhibit 10.17
Execution Version

[*] indicates that a confidential portion of the text of this agreement has been omitted. The non-public
information has been filed separately with the Securities and Exchange Commission.
LICENSE AGREEMENT
This Agreement is entered into by and between
VTT Technical Research Centre of Finland Ltd, (hereinafter referred to as "VTT") 
Business ID: 2647375-4
Address: Vuorimiehentie 3, P.O. Box 1000, FI-02044 VTT, Finland 
and
Dyadic International (USA), Inc. (hereinafter referred to as the "Licensee") 
Business ID: 45-0486747
Address: 140 Intracoastal Pointe Drive, Jupiter, FL 33477-5094
The above mentioned parties hereinafter also referred to as "Party" or "Parties".
WHEREAS, VTT has developed certain technology related to expression systems for micro- organisms and to promoters in expression systems;
WHEREAS, VTT has made an invention(s) related to the aforementioned technology and has filed patent application for the purpose of protecting the invention.
WHEREAS, the Licensee is interested in obtaining a right to use the invention and/or related patent(s) defined in more detail below in this Agreement, in its business; and
WHEREAS, VTT is desirous of granting such right to the Licensee in accordance with the terms and conditions of this Agreement; and
NOW THEREFORE, in consideration of the foregoing, the Parties agree as follows:
1.    DEFINITIONS
		
	1.1
	"Patent Rights" shall mean VTT's patent rights under the patent application nr. FI 20165137 (filed 22.2.2016) titled "Expression system for eukaryotic micro-organisms", and its counterparts in different countries claiming priority from this patent application.

		
	1.2
	"Licensed Products" shall mean any and all products that are within the Patent Rights manufactured, have manufactured, sold or otherwise supplied by the Licensee, Dyadic Group Companies and their sub-licensee(s).

		
	1.3
	"Effective Date" shall mean the date of the latest signature of this Agreement by the Parties.

		
	1.4
	"Invention" shall mean inventions described in the Patent Rights, i.e. an expression system for a eukaryotic microorganism, host, a host comprising said expression system, and a method for producing a desired protein product by using said host; a method for identifying a universal core promoter, a universal core promoter obtainable by said 

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method, and an expression system, a eukaryotic micro-organism host and method for producing a protein product by using a universal core promoter.
		
	1.5
	"Field" shall mean protein production in pharmaceutical applications in connection with Cl strains.

		
	1.6
	"Cl strain" shall mean any fungal strains that have taxonomy of either (a) [*], (b) [*] or (c) [*].

		
	1.7
	"Sub-license Agreement" means a written agreement between the Licensee and its sub• licensee (including also Dyadic Group Companies) concerning user rights granted to the Patent Rights and/or the Invention covered by the Patent Rights.

		
	1.8
	"Dyadic Group Companies" shall mean Licensee and companies that are controlled by the Licensee. Control shall mean the holding of more than 50% of the nominal value of the issued share capital in the legal entity concerned, or of a majority of the voting rights of the shareholders of that entity.

		
	1.9
	"Commission" shall mean Commission Contract between VTT Technical research Centre of Finland and Dyadic International, signed 5.9.2016.

2.    GRANT OF LICENSE; RIGHTS BY LICENSEE
		
	2.1
	Grant of License

VTT hereby grants to Licensee, a worldwide, non-exclusive, and non-transferable right and license to use the Invention covered by the Patent Rights to manufacture, have manufactured, sell, use, distribute, and market Licensed Products in the Field . Furthermore, the Licensee and its sub-licensees are allowed to modify, improve and/or develop independently the Cl Strains, using Patent Rights, e.g. in case of expressing new target proteins or modification of the functional components of the synthetic promoter system after the project performed under the Commission between the Parties has ended. Such improvements made after the project under the Commission shall be the property of the Licensee. The right to modify, improve and/or develop improvements and/or the use of such improvements is limited to CI Strains in the Field. For the avoidance of doubt, improvements made by VTT to the technology covered by Patent Rights shall be the property of VTT.
The Patent Rights shall remain the property of VTT and it is understood that, in addition to the rights expressly granted to the Licensee under this Agreement, no licence or right of use under any patent or patentable right, copyright, trademark or other proprietary right, or pertaining to any materials or information belonging to VTT is granted or conveyed to the Licensee by this Agreement.
The use of VTT's name or logo in connection with the advertising or sale of Licensed Products is prohibited, without prior written consent of VTT.

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	2.2.
	Right to Sub-license

Licensee, and Dyadic Group Companies with whom the Licensee concludes a Sub-License Agreement shall, subject to the payment by the Licensee of the sub-license fee(s) stated in Clause 3.2, have the right to grant sub-licenses to the Patent Rights (the promoter technology) non-exclusively solely in connection with sales and/or licensing of the Licensee's Cl platform and/or sales or licensing of Licensed Products in the Field. The sub• licenses shall solely be made through Sub-license Agreements. The Licensee shall inform VTT of all of its sub-licensees, and Sub-license Agreements under this Agreement immediately when such Sub-license Agreement is concluded. Sub-licensees of the Licensee except Dyadic Group Companies shall not have the right to further sub-license the Patent Rights. The Licensee shall, however, in any case remain the sole point of contact towards VTT regarding the Patent Rights and sub-licenses granted. Furthermore, the Licensee shall ensure that the Sub-license Agreements contain the same limitations regarding the use of the Patent Rights as stated in this Agreement and the Licensee shall be responsible for the actions of Dyadic Group Companies and actions of sub-licensees regarding the Patent Rights and compliance with said limitations.
3.    PAYMENTS
		
	3.1
	First Lump Sum Payment

The Licensee shall pay VTT for the license herein granted a non-refundable lump sum payment in the amount of [*] euros when the Licensee a) first uses the technology covered by the Patent Rights to manufacture or to have manufactured Licensed Products; b) makes the first sale of a Licensed Product; c) concludes a Sub-license Agreement; or d) on the 31st of July 2019, whichever occurs first. The Licensee shall promptly notify VTT of the aforementioned triggering events by e-mail to the address identified in Clause 8.1, and VTT shall invoice the first lump sum payment promptly after receipt of said notice, or in case d) occurs first, VTT shall invoice the first lump-sum payment on the 31st of July 2019.
		
	3.2.
	Sub-license Fee

Licensee shall pay a sub-license fee in the amount of [*] euros for each Sub-license Agreement concluded by the Licensee and/or by Dyadic Group Companies. Said sub-license fee shall be invoiced by VTT promptly after receipt of the Licensee's notification(s) that a Sub-license Agreement(s) has been concluded by the Licensee or Dyadic Group Companies. The sub-license fee shall not apply to sub-licenses granted by Licensee to Dyadic Group Companies.
		
	3.3
	Annual Fee

The Licensee shall pay VTT a non-refundable annual fee in the amount of [*] euros.
The payment shall be invoiced by VTT in February of each year this Agreement is in force, starting in February 2020.
		
	3.4
	Audit

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Licensee shall keep, and shall cause Dyadic Group Companies and sub-licensees to keep, accurate records and books of account of all development processes related to the technology covered by the Patent Rights. Furthermore, Licensee and Dyadic Group Companies shall keep accurate records of any Sub-license Agreements concluded under this Agreement. The Licensee and shall permit VTT to engage a certified public accounting firm to examine such books and records for auditing purposes at any time during normal business hours. In case the audit shows that the Licensee has failed to notify VTT of Sub-license Agreements concluded, the Licensee shall immediately pay VTT the sub-license fee(s) that should have been paid under this Agreement and the interest stated in Clause 3.5 calculated from the day when the Sub-license Agreement was concluded.
		
	3.5
	Payment Terms

All invoices shall be payable within thirty (30) days from the date of the relevant invoice. Value added tax and any taxes, duties or charges imposed by authorities outside of Finland shall be added, if applicable, to the payments. Interest on late payments shall be determined in accordance with the Finnish Interest Act 633/1982. Possible debt collection charges shall be added to the invoice.
4.    LIABILITY
		
	4.1
	No Warranties

VTT warrants that it is the owner of the Patent Rights. VTT warrants that up until the Effective Date, the validity of the Patent Rights has not been challenged and there have been no past claim and that there are no pending claims or actions brought against VTT regarding the Patent Rights.
Apart from the aforementioned, the Patent Rights are provided "AS IS" and VTT makes no representations or warranties with respect to the Patent Rights and/or inventions covered by the Patent Rights, including but not limited to warranties regarding commercial utility, merchantability or fitness for any particular purpose, absence of a latent or other defect, validity, enforceability or that the use of the Patent Rights, and/or inventions covered by the Patent Rights will not infringe any patent, copyright, other proprietary or property rights of others. VTT does not guarantee the patentability of any inventions included in the Patent Rights.
		
	4.2
	Liability

The Licensee shall bear any product liability as well as any other liability for the commercial utilization of the Patent Rights and/or the inventions covered by the Patent Rights. The Licensee shall be solely responsible for, and VTT shall have no obligation to honour, any warranties that Licensee provides to its customers with respect to the Patent Rights and /or Licensed Products. The Licensee shall indemnify and hold VTT harmless from and against damages and losses regarding the aforementioned.
VTT shall not be liable to Licensee, its successors, assigns,sub-licensees, or affiliates for any loss of profits, loss of business, interruption of business, nor for indirect, special or consequential damages of any kind whether under this Agreement or otherwise, even if VTT has been advised of the possibility of such loss. 

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VTT's liability shall, in all cases be limited to the sum of payments received from the Licensee under this Agreement, unless damages are caused by wilful act or gross negligence.
5.    PATENTS AND PATENT INFRINGEMENT
		
	5.1
	Patents

For the term of this Agreement, VTT shall be responsible for the application, maintenance and prosecution of the Patent Rights. VTT shall also pay the costs arising out of the application, maintenance and prosecution of the Patent Rights. VTT shall take reasonable steps to apply and maintain the Patent Rights.
The Patent Rights will enter into PCT phase and national phase already during the Commission and it is agreed that VTT shall continue the patent application process regarding said patent application in the USA and in Europe as an EP patent application aiming at validations in DE, GB, and FR. Should the Licensee wish to continue the patent application in any other countries, it may request VTT to do so at least 45 days prior to the relevant deadline in the application process, in which case the Licensee shall pay VTT all the patenting costs arising out of such other countries as they occur.
VTT does not, however, guarantee the patentability of any inventions included in the Patent Rights.
		
	5.2
	Patent Infringement by Licensee

In the event that Licensee is sued by a third party for patent infringement because of its exercise of the license granted herein, Licensee shall defend the suit at its expense, but VTT may reasonably cooperate, at Licensee's request and expense, in the conduct of the defence, however, VTT shall have no obligation to participate in the defence of any infringement suits or actions.
		
	5 .3
	Patent Infringement by Others

In the event that any infringement or suspected infringement of the Patent Rights comes to the attention of either Party, it shall promptly notify the other Party thereof.
Upon the occurrence of any infringement or suspected infringement of the Patent Rights, VTT and the Licensee shall as soon as practicable consult to decide what steps shall be taken to prevent or terminate such infringement. VTT or the Licensee shall take all such steps as may be agreed by them, including the institution of legal proceedings, where necessary, in the name of one of the Parties or in the joint names of VTT and the Licensee as appropriate. For the avoidance of doubt, neither Party shall have any obligation to initiate or take part in any specific actions or proceedings.
6.    CONFIDENTIALITY
Both Parties shall keep confidential and not disclose to third parties during the term of this

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as any other confidential information received from the other Party in connection with this Agreement. The confidential information received from the other Party shall only be used for the purposes of performing the Parties' rights and obligations under this Agreement.
The obligations regarding confidentiality shall not concern information that the receiving Party can show:
		
	a)
	is or becomes published or otherwise generally available to the public without violation of this Agreement; or

		
	b)
	is already known to the receiving Party at the time of disclosure; or

		
	c)
	is lawfully obtained by the receiving Party from a third party without any restrictions on confidentiality; or

		
	d)
	is independently developed by the receiving Party without any use of confidential information.

If the receiving Party is required, pursuant to an administrative or a judicial action or subpoena, to disclose disclosing Party's confidential information, the receiving Party shall have the right to make such disclosure, provided to the extent it is lawfully allowed to do so, it shall prior to any such disclosure notify the disclosing Party and give the disclosing Party the opportunity to seek any legal remedy it considers necessary to protect its confidential information.
Notwithstanding the foregoing, it is acknowledged that this is a non-exclusive license and VTT has also other commitments regarding the Patent Rights and therefore it is agreed that VTT shall have the right to disclose the general content of this Agreement to other licensees or research partners in case needed to show compliance with such other commitments or licenses.
7.    TERM AND TERMINATION
		
	7.1
	Term

The term of this Agreement and the rights and licenses granted hereunder shall commence on the Effective Date and shall expire when the last patent included in the Patent Rights expires, unless terminated earlier in accordance with this Section 8. in case this Agreement expires due to the expiration of all patents included in the Patent Rights the Licensee, Dyadic Group Companies and their sub-licensees shall retain a fully paid up, worldwide right to utilise the technology covered by the Patent Rights as they see fit.
Notwithstanding the foregoing, the Licensee, in its discretion can terminate this agreement by a written notice to VTT at least thirty (30) days prior to the termination. In case of termination of this Agreement for any other reason except expiration of all the patents included in Patent Rights all user rights and licenses granted to the Licensee and to Dyadic Group Companies under this Agreement shall lapse from the date of termination. The termination does not have any effect on payment obligations accrued prior to such termination. Furthermore, the termination does not have any effect on the user rights of sub-licensees of the Licensee or sub-licensees of Dyadic Group Companies, provided that the Licensee has paid VTT the sub-license fee regarding each Sub-license Agreement and that the sub-licensees comply with the user rights and limitations thereto as stated in this Agreement.

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	7.2
	Default

If Licensee shall at any time default in the making of any payments, or shall commit breach of any covenant or agreement herein contained, and shall fail to remedy any such default or breach within thirty (30) days after receipt by Licensee of written notice thereof from VTT, VTT may, at its option, cancel this Agreement and revoke the rights and licenses herein granted, by notice in writing to such effect.
Both Parties shall have the right to terminate this Agreement immediately in case the other Party essentially breaches the terms of this Agreement and does not remedy such breach within 30 days after it has received a written notice from the other party identifying the said breach. In case of termination all rights granted to the Patent Rights shall lapse. The termination does not have any effect on payment obligations accrued prior to such termination.
		
	7 .3
	Insolvency

If the Licensee becomes insolvent, enters into bankruptcy or liquidation or any other arrangement for the benefit of its creditors, this Agreement and the licenses herein granted shall thereupon automatically terminate.
		
	7.4
	Survival of Rights

Provisions the legal effects of which are meant to survive the expiration or termination of this Agreement shall survive the termination or expiration of this Agreement.
		
	8.
	MISCELLANEOUS

		
	8.1
	All notices, documents, statements, reports and other writings required or permitted to be given by the terms of this Agreement shall be sent either by mail or by e-mail, properly addressed to VTT or Licensee at their following addresses:

VTT:
Address: VTT, IPR Management I License Agreements, P.O. Box 1000, FI-02044 VTT, Finland
E-mail: IP.agreements@vtt.fi
Contact person: [*]
Licensee:
Address: 140 Intracoastal Pointe Drive, Jupiter, FL 33477-5094
E-mail: memalfarb@dyadic.com, JLatiuk@dyadic.com or HZosiak@dyadic.com
Contact person: Mark Emalfarb, Julie Latiuk or Heidi Zosiak (phone 1-561-743-8333)
Invoices shall be sent to the Licensee to the following address: 140 Intracoastal Pointe Drive, Jupiter, FL 33477-5094.

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	8.2
	No Waiver

A waiver by either party of a breach or violation of any provision of this Agreement will not constitute or be construed as a waiver of any other breach or violation of this Agreement.
		
	8.3
	Governing Law and Settlement of Disputes

This Agreement shall be subject to laws of Finland excluding its principles on conflict of laws.
Any disputes arising out of or in connection with this Agreement which cannot be solved amicably, shall be submitted to arbitration procedure and shall be finally settled under the Arbitration Rules of the International Chamber of Commerce by one or three arbitrators appointed by the said the Rules. The proceedings shall take place in Helsinki, Finland, and shall be held in English.
		
	8.4
	Entire Agreement

This Agreement constitutes the entire understanding of the Parties relating to the Patent Rights and supersedes all prior understandings and agreements. No modification or amendment of this Agreement shall be valid or binding except if in writing signed by each of the Parties.
		
	8.5
	Assignment, Binding effect

No rights hereunder may be assigned and no duties hereunder may be delegated by Licensee except with the express prior written consent of VTT. This Agreement may not be transferred in any manner including to a successor in interest by merger, by operation of law, assignment, purchase or otherwise, except with the prior written consent of VTT. Notwithstanding the foregoing, in case such transfer or merger is incident to transfer or merger of the entire business of Licensee, or if the business operations of the Licensee related to the Patent Rights are sold to a third party, a transfer is allowed provided that the Licensee promptly notifies VTT of such transfer. All prohibited transfers and/or assignments shall be null and void.
Subject to the foregoing, this Agreement and the rights and licenses herein granted shall be binding upon and shall inure to the benefit of VTT, Licensee and their successors and permitted assigns.
		
	8.6
	Counterparts

This Agreement has been drawn up in two (2) originals, one for each party.

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IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement.

	
				
	VTT Technical Research Centre of Finland Ltd

	 
	Date
	17.3.2017
	 

	 
	 
	 
	 

	 
	/s/ [*]
	 

	 
	Name: [*]

	 
	Title: [*]

	 
	 
	 
	 

	Licensee: Dyadic International (USA), Inc.

	 
	Date
	3/27/2017
	 

	 
	 
	 
	 

	 
	/s/ Mark Emalfarb
	 

	 
	Name: Mark Emalfarb

	 
	Title: CEOBlueprint

 

 

Exhibit 10.1

 

DIRECTOR AGREEMENT

 

THIS DIRECTOR AGREEMENT is made effective as of December 29, 2018
(the “Agreement”),
Blockchain Industries, Inc., a Nevada corporation with its
principal place of business at 720 Arizona Ave Suite 220 Santa
Monica CA 90401 (the “Company”),
and Richard Kromka (“Director”).

 

WHEREAS, it is essential to the Company to retain and attract as
directors the most capable persons available to serve on the board
of directors of the Company (the “Board”);
and

 

WHEREAS, the Company believes that Director possesses the necessary
qualifications and abilities to serve as a director of the Company
and to perform the functions and meet the Company’s needs
related to its Board,

 

WHEREAS, the Director shall be a Class 3 director whose term ends
and are subject to election at the annual meeting of shareholders
in 2021, 2024 and each third year thereafter.

 

NOW, THEREFORE, in consideration of the mutual promises contained
herein, the benefits to be derived by each party hereunder and
other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as
follows:

 

1. Term.
The Director shall hold office until such time that such
Director’s successor is duly elected and qualified, or until
such Director’s death or removal from office. The Director
will be automatically removed from the Board if such Director
resigns his office by writing delivered to the Board, becomes
prohibited by law from acting as a director or commits a material
breach of this Agreement pursuant to Section 7
below.

 

2. Compensation
and Expenses.

 

a. Stock
Option. For the services provided to the Company as a
director, the Director shall receive a non-qualified stock option
(“Option”)
to purchase up to Six Hundred Thousand (600,000) shares of the
Company’s common stock (“Option
Shares”), pursuant and subject to the Company’s
Equity Incentive Plan, a copy of which has been delivered to the
Director, at the following exercise prices and vesting
schedule:

 

	

Exercise Price

	
 

	

Quantity Vested

	
 

	

Vesting Date

	
 

	

Expiration Date

	

$1.75

	
 

	

200,000

	
 

	

1/1/2019

	
 

	

12/31/2023

	

 

	
 

	

 

	
 

	

 
 

	
 

	

 

	

$1.75

	
 

	

400,000

	
 

	

Sale
Transaction

	
 

	

12/31/2023

 

 

 

1

 

 

As used herein, “Sale Transaction” means any sale,
exchange or merger of not less than fifty percent (50%) of the
Company’s outstanding shares at a price that provides an
aggregate company valuation of not less than Fifty Million Dollars
($50,000,000).

 

In the event of the termination of the Director’s service
relationship (whether an as employee, director or consultant) with
the Company (“Termination
of Service”) at any time for any reason (including,
but not limited to, resignation, withdrawal, death, disability,
termination, with or without cause, or any other reason) before the
Director has exercised the Option in full, the Option shall
automatically expire, and cease to be exercisable immediately, with
respect to all of the Option Shares, whether vested or unvested. It
being understood and agreed that in no event will the Option become
exercisable for additional Options Shares upon a Termination of
Service for any reason and such outstanding and unexercised Option
shall immediately lapse and Director shall have no further rights
with respect to it.

 

b. Expenses.
Upon submission of appropriate receipts, invoices or vouchers as
may be reasonably required by the Company, the Company will
reimburse Director for all reasonable out-of-pocket travel expenses
incurred in connection with the performance of Director’s
duties under this Agreement.

 

c. Taxes.
The Director acknowledges that the exercise, transfer or other
disposition of the Option may give rise to significant U.S. income
tax consequences. Under Section 83 of the Internal Revenue Code and
Treas. Reg. section 1.83-7(b), upon the exercise of the Option, the
Director will recognize taxable ordinary income equal to the
difference between the fair market value of the common stock,
determined as of the exercise date, and the Option exercise price.
When the Director sells the common stock, the Director will
recognize taxable gain or loss (long-term if the Director held the
common stock for more than one year; otherwise, short-term) equal
to the difference between the amount the Director receives from the
sale and the tax basis of the common stock sold. If the Company, in
its discretion, determines that it is obligated to withhold any tax
in connection with the exercise of the Option, or in connection
with the transfer of any common stock acquired pursuant to the
Option, the Director hereby agrees that the Company may withhold
from the Director’s compensation or other remuneration the
appropriate amount of tax. At the discretion of the Company, the
amount required to be withheld may be withheld in cash from such
compensation or other remuneration or in kind from the common stock
otherwise deliverable to the Director on exercise of this option.
The Director further agrees that, if the Company does not withhold
an amount from the Director’s compensation or other
remuneration sufficient to satisfy the withholding obligation of
the Company, the Director will make reimbursement on demand, in
cash, for the amount underwithheld.

 

3. Market
Stand-Off Agreement. In the event of a public or private
offering of the Company’s securities and upon request of the
Company, the underwriters or placement agents placing the offering
of the Company’s securities, the Director agrees not to sell,
make any short sale of, loan, grant any option for the purchase of,
or otherwise dispose of any of the Option Shares other than those
included in the registration, without the prior written consent of
the Company or such underwriters, as the case may be, for such
period of time from the effective date of such registration as may
be requested by the Company or such placement agent or
underwriter.

 

 

2

 

 

4. Confidential
Information. The Director recognizes and acknowledges that
the Director will have access to Confidential Information (as
defined below) relating to the business or interests of the Company
or of persons with whom the Company may have business
relationships. The Director agrees that both during and after his
time as a director of the Company, the Director will not use for
the Director’s own, or for another’s benefit, or
disclose or permit the disclosure of any confidential information
relating to the Company, including without limitation any
information about the deliberations of the Board. The term
“Confidential
Information” means any non-public information that
relates to the actual or anticipated business and/or products,
research or development of the Company, its affiliates or
subsidiaries, or to the Company’s, its affiliates’ or
subsidiaries’ technical data, trade secrets, or know-how,
including, but not limited to, research, product plans, or other
information regarding the Company’s, its affiliates’ or
subsidiaries’ products or services and markets therefor,
customer lists and customers, prospective customers, software,
developments, inventions, processes, methodologies, algorithms,
know-how, procedures, formulas, technology, designs, drawings,
engineering, hardware configuration information, marketing,
finances, business plans, vendor relationships, passwords,
encryption coding, search technology, analytics, transaction data,
ledgers, and other business information disclosed by the Company,
its affiliates or subsidiaries, either directly or indirectly, in
writing, orally or by drawings or inspection of premises, parts,
equipment, programs, formulas, ledgers or other property of
Company, its affiliates or subsidiaries. The Director also agrees
during his appointment that he will not, other than for the benefit
of the Company and in connection with his service as a director,
make any notes, memoranda, electronic records, tape records, films,
photographs, plans, drawings or any form of record relating to any
matter within the scope of the business or concerning the dealings
or affairs of the Company and will return any such items at any
time at the request of the Board. The Director confirms that he has
notified the Board in writing of all other directorships,
appointments and interests, including any directorship, appointment
or interest in a company, business or undertaking which competes or
is likely to compete with the Company or which could otherwise
potentially give rise to a conflict with his duties with the
Company.

 

5. Duties,
Time and Commitment. The Director shall use reasonable best
efforts to attend all convened meetings of the Board. During the
continuance of the Director’s appointment, the Director will
be expected to: (i) faithfully, efficiently, competently and
diligently perform his duties and exercise such powers as are
appropriate to his role as a director; (ii) in so far as reasonably
possible, attend all meetings of the Board and of any committees of
the Board of which he is a member; (iii) comply with all reasonable
requests, instructions and regulations made or given by the Board
(or by any duly authorized committee thereof) and give to the Board
such explanations, information and assistance the Board may
reasonably require; (iv) act in the best interests of the Company;
and (v) use commercially reasonable efforts to promote and extend
the interests and reputation of the Company, including assisting
the Board in relation to public and corporate affairs and bringing
to bear for the benefit of the Board the Director’s
particular knowledge and experience.

 

 

3

 

 

6. Business
Opportunities & Conflicts Disclosure. The Company
acknowledges and agrees that the Director should be permitted to
engage in, acquire or invest in the same or similar activities or
lines of business involving the provision of services or products
with respect to digital assets, cryptocurrency, alternative
distribution ledgers and/or blockchain technologies (each, a
“Business
Opportunity”), provided that the Director fully
complies with and adheres to the following advance notice,
standards of conduct and Disqualified Business Opportunity (as
hereinafter defined) restrictions:

 

a. Business
Opportunity Notice. Within ten (10) business days of the
Director’s appointment to the Board, the Director shall
inform the Board of any held (direct or indirect) personal
interests which may conflict with the Company and its businesses.
In the event that the Director becomes aware of a Business
Opportunity, the Director shall notify the Company in writing of
such opportunity (a “Disclosed
Business Opportunity”) and deliver to the Company, or
provide the Company access to, all information prepared by or on
behalf of, or material information submitted or delivered to, the
Director related to such potential transaction (the
“Business
Opportunity Notice”). Following the expiration of the
thirty- (30-)-day period (“Business
Opportunity Notice Period”) after receipt of such
Business Opportunity Notice, the Company shall be deemed to have
renounced any interest or expectancy in the Disclosed Business
Opportunity and the Director may pursue the Disclosed Business
Opportunity, provided that the Disclosed Business Opportunity is
conducted by the Director in accordance with the standard set forth
in Section 6.c. below and that the Disclosed Business Opportunity
is not a Disqualified Business Opportunity. The Company shall not
be prohibited from pursuing any Business Opportunity with respect
to which it is deemed to have renounced any interest or expectancy
as a result of this Section 6.

 

b. Disqualified
Business Opportunity. During the term of this Agreement and
for a period of twelve (12) months after the Director ceases to be
a Director of the Company, the Director shall not shall not,
directly or indirectly, pursue, become engaged in or have any
ownership interest or become associated with in any Person (as
hereinafter defined) which directly or indirectly pursues or
becomes engaged in any Business Opportunity that (i) is first
presented to the Director solely in his capacity as a director or
officer of the Company or its affiliates or (ii) is identified by
the Director solely through the disclosure of information by or on
behalf of the Company or its affiliates (each such Business
Opportunity referred to in clauses (i) and (ii), a
“Disqualified
Business Opportunity”). The Director acknowledges that
the foregoing restrictions and time limitations with respect to a
Business Opportunity and Disqualified Business Opportunity are
reasonable and properly required for the adequate protection of the
business interests of the Company.

 

c. Standards
for Separate Conduct of Disclosed Business Opportunity. The
Director may pursue a Disclosed Business Opportunity following the
expiration Business Opportunity Notice Period if such Disclosed
Business Opportunity is developed and pursued solely through the
use of personnel and assets of the Director or jointly with the
personnel and assets of any other “Person(s)”
(as hereinafter defined), provided that such Person(s) does not owe
any fiduciary or other duty to the Company. “Person”
means an individual, corporation, partnership, limited liability
company, trust, joint venture, unincorporated organization or other
legal or business entity.

 

 

4

 

 

7. Termination
for Material Breach. The Director’s service on the
Board may be terminated by the Company pursuant to the provision of
written notice to the Director under Section 17 below in the event
of a material breach by the Director of any of the provisions of
this Agreement, including but not limited to Section 6 above;
provided however,
that the Director shall have been given reasonable notice and an
opportunity to promptly cure any such event of a material breach
(unless the event cannot be cured).

 

8. Limitation
of Liability; Right to Indemnification. The Company shall
indemnify the Director in his capacity as director of the Company
to the fullest extent permitted by applicable law against all
debts, judgments, costs, charges or expenses incurred or sustained
by the Director in connection with any action, suit or proceeding
to which the Director may be made a party by reason of his being or
having been a director of the Company. The Company shall have the
right to assume, with legal counsel of its choice, the defense of
Director in any such action, suit or proceeding for which the
Company is providing indemnification to Director. Should Director
determine to employ separate legal counsel in any such action, suit
or proceeding, any costs and expenses of such separate legal
counsel shall be the sole responsibility of Director. If the
Company does not assume the defense of any such action, suit or
other proceeding, the Company shall, upon request of the Director,
promptly advance or pay any amount for costs or expenses
(including, without limitation, the reasonable legal fees and
expenses of counsel retained by Director) incurred by Director in
connection with any such action, suit or proceeding. The Company
shall not be obligated to indemnify Director against any actions
that constitute, in the reasonable discretion of the Board of
Directors, an act of gross negligence or willful misconduct or
contrary to the general indemnification provisions of the Nevada
Revised Statutes or the Company’s certificate of
incorporation or bylaws.

 

9. Remedies.
The Director agrees that any breach of the terms of Section 3 and
Section 6 of this Agreement would result in irreparable injury and
damage to the Company for which the Company would have no adequate
remedy at law; the Director therefore also agrees that in the event
of said breach or any threat of breach, the Company shall be
entitled to an immediate injunction and restraining order to
prevent such breach and/or threatened breach and/or continued
breach by the Director and/or any and all entities acting for
and/or with the Director, without having to prove damages or paying
a bond, in addition to any other remedies to which the Company may
be entitled at law or in equity. The terms of this paragraph shall
not prevent the Company from pursuing any other available remedies
for any breach or threatened breach hereof, including, but not
limited to, the recovery of damages from the Director. The Director
acknowledges that the Company would not have entered into this
Agreement had the Director not agreed to the provisions of this
Section 8.

 

10. Amendments
and Waiver. No supplement, modification or amendment of this
Agreement will be binding unless executed in writing by both
parties. No waiver of any provision of this Agreement on a
particular occasion will be deemed or will constitute a waiver of
that provision on a subsequent occasion or a waiver of any other
provision of this Agreement.

 

 

5

 

 

11. Binding
Effect. This Agreement will be binding upon and inure to the
benefit of and be enforceable by the parties and their respective
successors and assigns.

 

12. Severability.
The provisions of this Agreement are severable, and any provision
of this Agreement that is held by a court of competent jurisdiction
to be invalid, void, or otherwise unenforceable in any respect will
not affect the validity or enforceability of any other provision of
this Agreement.

 

13. Arbitration.
Any disputes arising from this Agreement not resolved by the
parties in a good faith, timely manner shall be arbitrated within
Los Angeles County, California under the rules and procedures of
the American Arbitration Association. Attorney fees and costs are
to be awarded to the prevailing party.

 

14. Governing
Law. This Agreement will be governed by and construed and
enforced in accordance with the laws of the State of Nevada
applicable to contracts made and to be performed in that state
without giving effect to the principles of conflicts of
laws.

 

15. Entire
Agreement. This Agreement constitutes the entire
understanding between the parties with respect to the subject
matter hereof, superseding all negotiations, prior discussions and
prior agreements and understanding relating to such subject
matter.

 

16. Notices.
Every notice relating to this Agreement shall be in writing and
shall be given by personal delivery or by registered or certified
mail, postage prepaid, return receipt requested;
to:

 

If to the Company, to:

720 Arizona Ave

Suite 220

Santa Monica, CA 90401

Attention: President

 

If to the Director, to the address for notice on the signature page
to this Agreement or, if no such address is provided, to the last
address of the Director provided by the Director to the
Company.

 

Either of the parties may change their address for purposes of
notice hereunder by giving notice in writing to such other party
pursuant to this Section 16.

 

17. Miscellaneous.
This Agreement may be executed by the Company and Director in any
number of counterparts, each of which shall be deemed an original
instrument, but all of which together shall constitute but one and
the same instrument. Any party may execute this Agreement by
facsimile signature and the other party will be entitled to rely on
such facsimile signature as evidence that this Agreement has been
duly executed by such party.

 

 

6

 

 

18. Definitions.
As used in this Agreement, the following definitions shall
apply:

 

a. The
“Board”
shall have the meaning set forth in the
preamble.

b. “Business
Opportunity” shall have the meaning set forth in
Section 6.

c. “Business
Opportunity Notice” shall have the meaning set forth
in Section 6.

d. “Business
Opportunity Notice Period”
shall have the meaning set forth in Section 6.

e.  “Company”
shall have the meaning set forth in the
preamble.

f. “Confidential
Information” shall have the meaning set forth in
Section 4.

g. “Dollars”
and the sign 
“$” mean the lawful money of the United States
of America.

h.  “Director”
shall have the meaning set forth in the
preamble.

i. “Disqualified
Business Opportunity” shall have the meaning set forth
in Section 6.

j.  “Option”
shall have the meaning set forth in Section 2.

k.  “Option
Shares” shall have the meaning set forth in Section
2.

l. “Termination
of Service” shall have the meaning set forth in
Section 2.

m.  “Person(s)”
shall have the meaning set forth in Section 6.

 

 

 

 

 

7

 

The Parties have executed this Agreement as of the date first
written above.

 

 

	

DIRECTOR     

	

 

	

BLOCKCHAIN INDUSTRIES, INC.

	

 

	
 

	
 

	

 

	

 

	
 

	

 

	

By: 

	
/s/ 
Richard Kromka

	

 

	

By:

	
/s/ 
Patrick Moynihan

	

 

	
 

	
Name: 
Richard Kromka

	

 

	

 

	
Name: 
Patrick Moynihan

	

 

	
 

	
 

	

 

	

 

	
Title:
CEO

	

 

 

Address for Notice:

 

767 Third Ave

19th
Floor

New York, NY 10017

 

 

 

 

8

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