On June 12, 2017, MyDx, Inc. entered into the MYDX360 SAAS Ecosystem License and Services Agreement with Black Swan, LLC. Under the terms of the SAAS Agreement, the Company granted Black Swan a non-exclusive limited license to: (i) access the Company’s Database and (ii) use the Company’s “Powered by MyDx” trademark and the MyDx logo on Black Swan’s products. Additionally, the SAAS Agreement provides Black Swan with (i) market research regarding the packaging of Black Swan’s products in coordination with Black Swan’s objectives and (ii) delivery of certain quantities of the Company’s smart devices, cartridges, batteries, and other hardware to Black Swan. The total consideration to the Company from Black Swan in exchange for the grant of the MyDx License and the MyDx Services is $78,880, paid as follows: (a) 15,000 within 30 calendar days of the signing of the SAAS Agreement; and (b) Each of (i) 14,940 every 6 months for the Company’s cartridges, (ii) 25,000 for the Eco Smart Pens, and (iii) 23,940 for the batteries shall be paid by Black Swan within thirty calendar days of the Company providing an invoice for such hardware to Black Swan. The term of the SAAS Agreement shall be three years from the Effective Date. The Company shall have the right, in its sole discretion, to terminate the SAAS Agreement if Black Swan does not order and pay for at least 6,000 cartridges every six months at a cost of $2.49 per cartridge ($14,940 in total every six months). During the Term of the SAAS Agreement and for the 5 years thereafter, Black Swan shall not manufacture, market, or sell any products utilizing the MyDx License and the MyDx Services without the prior written consent of the Company. If Black Swan breaches its obligations under the non-compete section set in the SAAS Agreement, Black Swan shall pay the Company $200 per day as liquidated damages for each day Black Swan continues to, without the prior written consent of the Company, manufacture, market, or sell any products utilizing the MyDx License and the MyDx Services.