Latium Whitepaper

Tuesday, June 26, 2018
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B E N F D O Y F 9 D N Z C / B E N F D O Y F 9 D N Z C / Draft for open community review. Subject to change. March 13, 2018

Table of Contents What Is Latium? ................................................................................................02 Market Need .......................................................................................................03 -Lack of Real World Adoption of Cryptocurrencies -Lack of Transparent Global Labor Market -Lack of Global Reputation for Global Labor Force -Lack of Fast Payment System for Global Labor Force -True Market Demand for Cryptocurrencies Product Advantages........................................................................................04 Features....................................................................................................................05 -Posting Tasks, Performing Tasks, Reputation System, Physical Task System, Latium Transfer System, Group Projects -Profile Management, Chat System, Referral Program, Task Search System, Fees Timeline Overview............................................................................................07 Future Developments ...................................................................................08 -Migration to a Full Blockchain System, Other Crypto and Fiat, Conversion Functions Funding Breakdown ......................................................................................09 Project Budget......................................................................................................10 Overview of Token Structure........................................................................11 Latium Team..........................................................................................................13 Legal Disclaimers................................................................................................18

+ C B 5 8 = What Is Latium? Latium is the first and only tasking platform to incorporate a totally automated rating system in tandem with a one-to-many task relationship structure. This will allow a user to create a task for which they can hire one person, or many thousands of people, to complete the task. This all occurs within a trustless environment where all participants have transparency in whom they are working with. The platform will support both “Digital” and “In-Person” tasks. The Latium team has also designed proprietary task proof systems for both “Digital” and “In-Person” tasks, in order to remove trust from the equation while creating an environment where tasks with multiple contracts can be easily managed. In the case of a “Digital” task, imagine a user wishes to drive traffic to an online petition. By posting one simple Latium task, they can send as many people to the petition page as their budget allows. Now, let’s look at an example of an “In-Person” task. Imagine a user is promoting a grand opening for a new restaurant. They post a new task with the details of the event and then approve applicants that wish to show up for a reward. As the applicants show up they must all scan either a printed QR code, scan a code on the task creator’s phone or stay within a certain GPS location for a certain amount of time in order to check-in to the event. Once the event is complete, they will scan an additional code to release payment B E N F D O Y F 9 D N Z C / for the task or auto release based on GPS. "In-Person" multi-contract tasks can be used for marketing events such as this, or even political or community driven projects. The LatiumX (LATX) ERC20 token will be the established form of payment on the platform. Payment for tasks completed on the Latium platform will be credited in real-time using LATX, meaning the LATX tokens will have to be purchased by employers in order to create new tasks in the system. 02

Market Need The Latium platform provides solutions to existing real world problems, while also improving existing solutions for certain use cases. 1. Lack Of Real World Adoption Of Crypto Currencies Although the world has become more aware of crypto currencies over the last 12 months, there is still a very real issue of global adoption. We believe this is directly related to a substantial barrier to entry in acquiring crypto currencies and the lack of acceptance as a viable method of tender. The Latium platform solves these issues by creating an easy to use market place where anyone willing to complete a task is rewarded with LATX tokens. LATX can also be used for task creation, meaning that anyone needing a task completed can now use LATX to pay for the labor. This provides an opportunity for everyone to join the crypto sphere by simply paying for work or working for pay. 2. Lack Of Transparent Global Labor Market Currently labor markets are divided into pools based on Local, Regional and National regulations. These segmented pools of labor liquidity hurt both employees and employers alike. As an employee it could be hard to find work and a livable wage depending on your jurisdiction. As an employer it can be difficult, or impossible, to find the right employee with the required skill set in your local labor market. Now you can apply for any task globally, determine what you are willing to complete the task for and have transparency in to every facet prior to acceptance. As an employer you can award the task to the tasker of your choice and know that if the task is not completed to your standards that you don’t have to pay. 3. Lack Of Global Reputation System For Global Labor Force Employers and employees both have had to share a substantial pain point in the hiring/applying process. Neither party really knows if they are a good fit for each other prior to working on a task together. Employers can check references from previous employers, run background checks, etc., while prospective employees take to internet forums to read posts from previous employees in order to gain some insight into whether or not this relationship would be a good fit for them. By implementing a global reputation system, the Latium platform makes the employer-employee relationship more transparent from the beginning. 03

taskers and task makers have a reputation score. This allows both parties to truly evaluate a potential relationship prior to acceptance. Every task impacts a user’s score positively or negatively. Users gain long term reputations making them more attractive while discouraging the creation of new user profiles and spam. 4. Lack Of Fast Payment System For Global Labor Force There are many payment systems used around the globe, but most payments made for completing a task are not even remotely close to real-time. Some users might wait weeks after a task is completed in order to receive payment. The Latium platform issues all payments via LATX tokens, thus creating a real-time payment network within the platform itself. These tokens can be withdrawn as soon as the task maker marks the job complete. Task makers are incentivized to release the payment quickly as it is part of their global 5. True Market Demand For Crypto Currencies Currently, using a crypto currency as tender is still quite limited. There is a great desire among crypto enthusiasts to see mass adoption of crypto as a general payment method. It has become clear however, that in order for this to occur these tokens must power systems that have real world value for people. Latium addresses this issue by creating a real economy for LATX. LATX is the fuel required by the platform to operate. The activity of buying or selling tokens should be closely correlated to the platform use and not based on market speculation. Product Advantages Easy Access To Crypto Deflationary Design Easy Access To Workers One-To-Many Relationships Easy Access To Work Trustless Reputation System Fair And Transparent Real-Time Payment Free To Use 04

Features Client Facing Applications for iOS, Android and web including: Posting Tasks Clients will be given the ability to create tasks, select the desired applicant and verify the task is completed to their standards. A nominal service fee will be charged after a task is completed. Performing Tasks Clients can apply for tasks, upload task related documents and files, mark tasks completed and request payment. Reputation System + C B 5 Whether you use, Freelancer or Twitter user/product ratings are a big part of our day to day life. The issue with most rating systems is they require a lot of additional work to debunk what is true and what is not. Users have to figure out if a reviewer can be trusted. This takes time and effort. Even after this process you have to question if the review is truly legitimate, due to the large amount of fake users and pay for review systems on the net. A study published by CNBC revealed at least 48 million twitter accounts were fake/bots ( -study.html). We believe the problem is actually much larger than the stated amount and the issue is certainly not limited to just Twitter. Paid reviews are a big business and has incentivized the growth of huge review farms around the world. Users are catching on to this trend that nothing can be trusted and now have to research the reviewer. The problem is all this extra due diligence creates extra work for the end user. Latium’s proprietary reputation system takes human opinion out of the equation by creating a concise and automated system. User scores range from 0-1000 and are based on many different data points that are systematic, not opinion based. These include, but are not limited to, amount of jobs completed, hire rate, payment time, task value, and worker/employer diversity. The goal is to provide users a simple single number, so they can evaluate quickly without additional research. This system will start as a proprietary algorithm and over time be totally AI driven. The best example of this is the US FICO credit score system. Users scores will change based on actions and also lack of action. Ultimately the AI will create new rule sets to mitigate risks before they even present themselves, thus creating a reputation Physical Task System Latium’s proprietary physical task locator is designed to make it both fun and easy to locate paying tasks. The platform presents a map to users with available local tasks which they complete. By walking or driving around, completing tasks and collecting LATX, the Latium platform provides a level of gamification (think Pokemon Go, but instead of finding Pokemon you are collecting LATX). We will also provide standard search filters and list view for those who want a more business like appearance. Tasks can be confirmed by scanning QR codes or by staying within defined GPS coordinates for a certain amount of time. This depends on the task and the settings selected by the task creator. 05 B E N F D O Y F 9 D N Z C /

Latium Transfer System Latium will include two payment transfer options. One will be an internal system that is real time and does not require confirmations from miners and will be 100% free. The other will be blockchain based and require miner confirmation. We are still evaluating if we will use a state chain for these transfers to help mitigate the gas cost of transacting on chain. Group Projects This feature allows users to work together for a common goal. Group projects could be something as small as two or three users working together or something very large requiring hundreds of users to work together. Group Projects can be used for one to many, many to one and many to many relationships. This makes the system flexible and able to handle any task required. Profile Management User will have editable profiles with avatars, bios and additional information. This allows both task makers and task doers to get a view into who they are potentially working with. Chat System Both a general chat and task related chat will be made available to all clients. Referral Program Referrers will make a commission off of referred users. They will also have access to metrics and reporting. All commissions will be paid in LATX. Task Search System The Task Search System provides users the opportunity to find specific tasks which coincide with their abilities. Fees The Latium system will be maintained by a nominal per-task fee. These fees will be paid by the task creator at the time of acceptance. The system will be feeless for a promotional period until the management team feels market penetration has been achieved. Revenue created by the fee system will be used for operation expenses and eventually to incentivize task validators (miners) on our own blockchain. The sole method for payment of fees will always be LATX. J M Z G N 6 W 7 J M Q D U C W Y 4 D C C 2 R 9 06

Timeline Overview Proof Of Concept Q3-4 2016 Beta Release 1st Quarter 2018 App Layout And UI/UX Design Production Release To App Store And 2nd Quarter 2017 Google Play 1st-2nd Quarter 2018 Base Code Creation 2nd Quarter 2017 Production Release To Web 2nd-3rd Quarter Release 2nd Quarter 2017 On The Fly LATX Conversion 2nd-3rd Quarter 2018 Initial Token Sale 3rd & 4th Quarter Multiple Currency Integration 2017 2nd-3rd Quarter 2018 Alpha Release 4th quarter 2017 Migration To Full Blockchain System 1st Quarter 2019 L A T I U M R O A D M A Q 3 - 4 2 0 1 6 P R O O F O F C O N C E P T A P P L A Y O U T A N D 2 N D Q U A R T E R 2 0 1 7 U I / U X D E S I G N + C B 5 8 = B A S E C O D E C R E A T I O N 2 N D Q U A R T E R 2 0 1 7 R E L E A S E L A T I U M . O R G 2 N D Q U A R T E R 2 0 1 7 I N I T I A L T O K E N S A L E 3 R D & 4 T H Q U A R T E R 2 0 1 7 A L P H A R E L E A S E 4 T H Q U A R T E R 2 0 1 7 B E T A R E L E A S E 1 S T Q U A R T E R 2 0 1 8 P R O D U C T I O N R E L E A S E T O 1 S T - 2 N D Q U A R T E R 2 0 1 8 A P P S T O R E A N D G O O G L E P L A Y P R O D U C T I O N R E L E A S E 2 N D - 3 R D Q U A R T E R 2 0 1 8 T O W E B B E N F D O Y F 9 D N Z C / O N T H E F L Y L A T X C O N V E R S I O N 2 N D - 3 R D Q U A R T E R 2 0 1 8 M U L T I P L E C U R R E N C Y 2 N D - 3 R D Q U A R T E R 2 0 1 8 I N T E G R A T I O N M I G R A T I O N T O F U L L 1 S T Q U A R T E R 2 0 1 9 B L O C K C H A I N S Y S T E M J M Z G N 6 W 7 J M Q D 07 U C W Y 4 D C C 2 R 9

Future Developments Migration To A Full Blockchain System Due to the current limitations of blockchain technology (mainly latency and query issues) Latium is being built using a hybrid of distributed, dedicated multi datacenter servers and blockchain technology. We believe this is currently the only way to deliver an enterprise class application with a competitive end user experience. Once the hybrid system is in production, our focus will change to migrating system by system into the blockchain, with the goal being for Latium to be 100% dependent on blockchain technology. This task is no small feat, but in doing this we pave the way for other enterprise applications to be 100% blockchain dependent. Through this process other revenue models, such as licensing proprietary Blockchain DB, file storage, CDN and hosting technologies, will present themselves. All of these will add another layer of value for LATX holders. On-The-Fly Conversion Functions Ease of access to LATX and other currencies is imperative for mass adoption. Users require easy access to buy and/or sell LATX. The platform will allow for easy exchange via API connections with existing exchanges and/or using The goal is to allow purchases via credit cards and in real-time making it easy to participate in the system. Allowing users to withdraw profits in fiat will also facilitate usability. Users can hold their earnings in LATX or convert on the fly and receive funds via PayPal. Introduction Of Other Crypto Currencies And Fiat Into The B E N F D O Y F 9 D N Z C / Latium System Once the platform is in production and stable, part of the team will focus on incorporating other methods of payment outside of just LATX, including fiat and other dominant crypto. Fees will always be required in LATX, similar to how Ethereum Gas functions, no matter what other currencies we accept. B 5 8 = 08

Funding Breakdown Presale Minimum project funding was achieved in the presale phase. A total of 100,730,550 LATX was sold in the presale. Presale rate was fixed at 10,000 LATX per Ether. Whitelist Sale The whitelist sale opened on November 15th, 2017 and closed on November 28th, 2017. Rates were static during this period at 9,000 LATX per Ether. The whitelist was a limited sale open to users whose applications were accepted by the team. Anyone could apply, but only a select number of applicants were chosen to participate in this sale. The amount of tokens sold in this phase will be released at the close of the entire sale. The goal of the whitelisting process was to ensure diverse token distribution and help mitigate market risk imposed by single large token holders. General Sale The general sale will open on November 28th, 2017. The general sale will be comprised of a tiering structure until the end of the sale. Tiers will end on certain dates unless the alloca- tion sells out before the end date. The general sale rate will be priced in USD and will increase as each tier ends. The tiers are priced in USD and the first tier is priced at $0.08 per LATX. The total max cap of ETH raised from the Whitelist Sale and the General Sale is $15 Million USD. The general sale will end on or before March 1st, 2018. Any token sale supply not sold during the general sale will be burned. General Sale Tier Structure STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 0.08 ¢ TOKEN PRICE 0.09 ¢ TOKEN PRICE 0.10 ¢ TOKEN PRICE 0.11 ¢ TOKEN PRICE 0.12 ¢ TOKEN PRICE 10,000,000 10,000,000 10,000,000 10,000,000 20,000,000 TOKENS REMAINING TOKENS REMAINING TOKENS REMAINING TOKENS REMAINING TOKENS REMAINING S TA G E 1 E N D S O N O R B E F O R E S TA G E 2 E N D S O N O R B E F O R E S TA G E 3 E N D S O N O R B E F O R E S TA G E 4 E N D S O N O R B E F O R E S TA G E 5 E N D S O N O R B E F O R E JANUARY 10TH JANUARY 17TH JANUARY 24TH JANUARY 31ST MARCH 1ST UP TO 130 MILLIION UP TO 140 MILLIION UP TO 150 MILLIION UP TO 160 MILLIION UP TO 180 MILLIION TOKENS SOLD TOKENS SOLD TOKENS SOLD TOKENS SOLD TOKENS SOLD 09

Project Budget Funds raised during the token sale will be used for the development and maintenance of the Latium system. Although much of the planning and a decent amount of the development work has already been done to prove the proof of concept at the shareholders expense, we understand the task laid before us to get mass adoption of the Latium platform requires greater funding than we currently have. Funds will be allocated to allow for an 18 month runway in a less volatile currency such as USD, EUR, GBP or CHF. This helps protect the project from massive market swings and ensures this project is brought to production as soon as possible without market risk. J M Z G N 6 W 7 J M U C W Y 4 D C C 2 R F D O Y F 9 D N Z C / 40% Development 30% Marketing Project Budget 15% Security Breakdown 10% Operations 5% Legal 10

40% Development These funds will be allocated to both the existing core team and also to recruit new developers to help bring the Latium system to market. The stakeholders plan to allocate no less than 25% of these funds to a recruitment process open to the community. This will allow the community to have a say in who is added to the team. This system will be available at shortly after the end of the token sale. 30% Marketing We acknowledge that in order for the Latium system to get mass adoption we need to place a large focus on market exposure. With this is mind, we have allocated a large portion of funds received towards marketing. Marketing strategies will include, but are not limited to, affiliate marketing, online campaigns, CPA campaigns and gorilla marketing. + C B 5 15% Security The stakeholders acknowledge that security is paramount for any crypto based product. We plan to use this portion of funds to reward bug bounties, host a hackathon and to secure outside security audits. 10% Operations Day to Day operations will consist of admin, HR and operations staff. These funds will be used to ensure a smooth operation and as growth starts that we have the required manpower to keep up with demand. 5% Legal These funds will be used for legal review of all service agreements, terms and privacy policies. We also use a portion of these funds for any potential jurisdictional reviews required. Overview Of Token Structure Token Allocation 180,000,000 LATX tokens (60% of total Supply) available during all phases of the token sale. Any tokens not sold during this period will be burned. 11

Platform Adoption Incentives 60,000,000 LATX tokens (20% of total supply) will be used for promotion once the Latium platform is in production. These tokens will provide incentives to sign up and use the Latium platform during the ramp up of production. New users will be allocated a certain amount of tokens to use within the Latium Ecosystem (cannot be withdrawn but can be spent on task creation). These 60 million tokens will be held in a lockup contract and released, according to the schedule below, for use in the system. After release, these funds will be held in a single contract. The only function of this contract will be to release tokens to platform users and will be made available for public inspection prior to the first token release in order to ensure transparency. The below schedule is the maximum that can be withdrawn on a given date. The amount of the withdrawal will be determined at the time of release up to the maximum allowed by the lockup contract. The amount withdrawn will be solely up to the management team and based on project requirements at the time of release. This contract has been made available on Github for public review and 15 million LATX Tokens January 31st 2018 15 million LATX Tokens April 30th 2018 15 million LATX Tokens July 31st 2018 15 million LATX Tokens final incentive release October 31st 2018 Founder’s Lockup 45,000,000 LATX (15% of total supply) tokens will be held in the founder’s lockup contract for 12 months releasing on November 1st 2018. These funds will be used to expand the management team after production release in key areas and founder’s equity. This amount is the maximum amount that can be withdrawn from the Lockup contract. The amounts actually withdrawn will be left up to the founders to decide up to the maximum allowed by the contract. This contract has been made available on Github for public review. Bounty Program 15,000,000 LATX (5% of total supply) will be allocated for bounty programs. The following programs are included in this allocation Wings (1% of total supply), General Affiliate System (up to 2.6% of total supply), General Bounty (1% of total supply) for bitcointalk members, Marketing Bounty (0.4% of total supply), such as promotional programs, Banner ads for 3rd party sites. The Marketing Bounty is an additional bounty campaign, not a guaranteed distribution and will be up to the management team who can receive this bounty. To apply for the Marketing bounty campaign, please, contact [email protected] All purchases of LATX should be for the sole purpose of use within the platform. This is not an offer for investment or a security. If you are looking to purchase the LATX token with a purpose other than usage within the platform you should reconsider your purchase. 12

The LATIUM Team With over 25 years experience in development, FinTech and internet commerce, and over 20 years experience in business management, David provides the leadership and technical background for the Latium platform. David Johnson CEO/Founder With a keen eye for detail, Matt helps take ideas from concept to creation. By working hands on with both the Latium designers and developers, Matt ensures a culture where both creativity and functionality can thrive. Matt Carden CCO/ Co-Founder Ben handles the day to day organization of the design teams for Latium, while also working to implement the Latium platform. Ben also works very closely with all aspects of the marketing teams focusing on the growth and development of the Latium Ben Myers B E N F D O Y F 9 D N Z C / Design/Development Coordinator As the Creative Director for the Latium Design Team, Moises coordinates with the team to achieve the daily needs of the Latium project. His creativity is at the forefront of the beautiful Latium design. Moises uses his comprehensive knowledge of Adobe Creative Suite, as well his considerable talent for Graphic Design to drive the Latium design process towards the goal of creating a beautiful and functional design for the entire Latium Project. Moises Carmona Creative Director 13

As a member of the Graphic Design team Daniel provides a vision that adds a new perspective on the UI for the Latium Project. His skills combine a combination of unique visual elements that make for stunning imagery and design. Daniel Alvarado Graphic Designer Jose is highly talented design engineer with a Master's Degree in Systems Engineering. He has extensive experience and handles everything from coporate branding, website design, and video animation. His relentless effort to design the highest quality work makes him an essential part of the Latium Team. His expertise includes, but is not limited to, Photoshop, Dreamweaver, Illustrator, and After Effects. Jose Duarte Graphic Designer Evgeny has over 15 years experience in frontend design and backend development. He is extremely proficient in C#, VB.NET, ASP, ASP.NET, MVC, XML, JSON, Front-end Coding, AngularJS, React, JavaScript, and JQuery. His expertise in these technologies, as well as HTML and CSS, prove Evgeny to be a very efficient and reliable member of the Latium development team. Evgeny Makarov Lead Front End Developer Alexey brings a solid foundation to the Latium development team with over 10 years experience in backend development with a focus on JavaScript frameworks and system architecture. Alexey has experience and expertise with Node.js, ASP.NET, Redis, MySQL, PostgreSQL, and MSSQL. His knowledge of Solidity is a valuable asset for the Latium development team. Alexey Podgaynov B E N F D O Y F 9 D N Z C / Lead Back End Developer 14

With over 20 years experience in software development, Igor is highly skilled in both Android and iOS development. He has a wide range of technical expertise in Objective-C, Swift, C, C#, VB.Net, ASP.NET, HTML, XML, JavaScript, Visual FoxPro, MS SQL, C++, JAVA, and T-SQL. Igor has proven to be a great member of the Latium development team, providing both technical expertise concerning both UI and UX development and implementation. Igor Kushnarev Mobile Developer Ruslan is a computer engineer and has over 10 years experience in mobile development including both Android and iOS platforms. Ruslan posesses technical expertise in SQL, T-SQL, C, asm, Delphi, Pascal, PHP, HTML, XML, XSLT, Java2, JavaScript, JQuery, Angular, Node js, C#, ASP.NET, Liunx, and Objective C. He is an integral member of the Latium Team providing extensive technical knowledge for all aspects of the Latium Platform. Ruslan Rybalchenko Mobile Developer John is a technology and internet security pioneer. He founded McAfee Associates in 1987 and created the first commercial antivirus software. John currently serves as the CEO of MGT Capital Investments, Inc. John McAfee Advisor Bob has over 20 years experience of management in the financial and banking sector. Including being the Managing Director of one of the largest Forex Broker Dealers in the world. Bob Slade Advisor 15

Kate works as a heads of analytics in Cindicator - a fintech company that successfully raised the hard cap of 55,569.45 ETH during their token sale in September 2017. She is an analyst with more than 10 years of experience in finance, as well as a short-term trader who trades in both traditional and crypto financial markets. Kate's expertise in community management is vital to Latium community. She utilizes that expertise through the management and moderation of Latium's social channels such as Telegram and Twitter. Kate Kurbanova Advisor Chris is a 20+ year technology investment banker that has facilitated over $650 million in transactions. He loves working with disruptive companies that have the potential for global impact. Chris Kern Advisor Eduardo is an experienced Investor within the Blockchain industry. He leads a large disruptive trading group and provides valuable insight into the crypto community. His experience and insight are valuable assets to the Latium Team Eduardo Gil Cañamero Advisor Herman brings 15 years of experience in project management to the Latium team. He has extensive knowledge of the crypto space through his development and creation of the first crypto exchange in Iceland, Herman Finnbjornsson Advisor 16

Felix is a business attorney and regulatory counsel. His practice, Shipkevich PLLC. focuses on providing counsel to FinTech and financial services firms, including financial technology, payments and the emerging digital currency space. Felix Shipkevich Legal Counsel B E N F D O Y F 9 D N Z C / 17

Legal Disclaimers PLEASE READ THIS SECTION CAREFULLY. YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX, OR OTHER PROFESSIONAL ADVISOR BEFORE TAKING ANY ACTION IN CONNECTION WITH THIS TOKEN SALE Participation in a token sale can be highly speculative and could involve a risk of loss. Prospective token purchasers should not construe this Website or White Paper or any disclosures or disclaimers contained therein as a source of legal or tax advice. The White Paper currently contains a fair summary of Latium Network Inc.'s vision and the operation and utility of its token, and is subject to changes as the matters or relevant importance evolve. Further, this Website or White Paper does not constitute the offering of a security. We have consulted and continue to work with legal counsel to assess the possible regulatory treatment by the United States Securities and Exchange Commission in light of the developing regulatory guidance. Presently, the primary method for determining whether a particular instrument should be characterized as a security under United States securities laws was promulgated by the United States Supreme Court in SEC v. W.J. Howey, 328 U.S. 293 (1946), providing for what has become known as a Howey test. According to the Howey test, an instrument is a security if the following four factors are satisfied: (1) an investment of money, (2) in common enterprise, (3) with an expectation of profits, (4) solely from the efforts of others. The SEC did not take the position as to whether virtual currencies, or interests in such currencies, are themselves securities, instead indicating that it will apply the same framework that the SEC and courts have applied thus far. On July 25, 2017, the SEC Division of Enforcement issued an investigative report involving tokens issued by The DAO, a virtual organization. The biggest takeaway from this investigative report is that tokens that function like investment contracts under the Howey test will be treated as securities. Although the courts in the United States have not yet directly applied the Howey test to any digital currency or blockchain token, Latium Network Inc. and its counsel have conducted an analysis under the Howey test, and continues to do so, with the conclusion that, in all likelihood, Latium does not pose a significant risk of implicating federal securities laws. In light of this, and absent any contrary conclusions or findings, Latium tokens have not and will not be registered or filed under the securities laws or regulations of the United States. Notwithstanding the conducted research, analysis, and due diligence, the regulatory status of cryptographic tokens, digital assets and blockchain technology is a young industry, varies significantly among jurisdictions, and is thus subject to significant uncertainty. Due to this uncertainty and the general nature of the rapidly changing regulatory landscape, there is always a risk that Latium tokens may not be exempt from securities registration requirements in the United States. Latium Network Inc.'s representations and securities assessments are not a guarantee that the SEC or any other regulatory authority will not determine the tokens to be securities subject to registration. It is possible that certain jurisdictions, whether state or federal, domestic or foreign, may adopt laws, regulations, policies or rules affecting the Ethereum network, through which Latium operates, or restricting the right to acquire, own, hold, sell, convert, trade, or use Latium tokens. To reiterate in a briefer form, developments in laws, regulations, policies or rules may alter the nature of the operation of the blockchain network upon which the Latium tokens are dependent. Latium tokens have not been approved or disapproved by the United States Securities and Exchange Commission, any state's securities commission or any other regulatory authority. Should Latium tokens be deemed securities by the SEC or another regulatory authority, Latium Inc. and participants in the Latium token sale may be subject to penalties absent proper registration. All statements, estimates and financial information contained in this website, made in any press releases or in any place accessible by the public and oral statements that may be made by Latium Network, Inc. that are not statements of historical fact, constitute "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. This includes, but is not limited to, the future revenues, earnings, strategies, and prospects of Latium Network, Inc. All statements that are not purely historical constitute future-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Moreover, such statements are based on Latium Network, Inc.'s beliefs as well as assumptions made based on information currently available to it. The following non-exclusive list of words, when used within this Website or White Paper, and variations thereof are intended to identify forward-looking statements: "anticipate," "believe," "estimate," "expect," "intend," "should," or "project." Readers B E N F D O Y F 9 D N Z C / 18