Document:

ex_134546.htm

 

Exhibit 10.2

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH, OR PURSUANT TO AN EXEMPTION FROM, THE REQUIREMENTS OF SUCH ACT OR SUCH LAWS. 

 

_______________________________

 

BRAIN SCIENTIFIC INC.

 

CONVERTIBLE PROMISSORY NOTE

 

 

 

	
			Principal Amount: $[_____] 

				
			Issue Date: [_____]

			

 

 

Brain Scientific Inc., a Nevada corporation (the “Company”), for value received, hereby promises to pay to [_____] or his permitted assigns or successors (the “Holder”), the principal amount of [_____] Dollars ($[___]) (the “Principal Amount”), without demand, on the Maturity Date (as hereinafter defined), together with any accrued and unpaid interest due thereon. This Note shall bear interest at a fixed rate of ten percent (10%) per annum, beginning on the Issue Date. Interest shall be computed based on a 360-day year of twelve 30-day months and shall be payable, along with the Principal Amount, on the Maturity Date. Except as set forth in Section 3.1, payment of all principal and interest due shall be in such coin or currency of the United States of America as shall be legal tender for the payment of public and private debts at the time of payment.

 

This Note is a convertible promissory note referred to in that certain Subscription Agreement dated as of the date hereof (the “Subscription Agreement”), or series of like subscription agreements, among the Company and the subscribers named therein, pursuant to which the Company is seeking to raise an aggregate of up to $500,000 (or such higher amount in the discretion of the Company).

 

1.     Definitions.

 

1.1     Definitions. The terms defined in this Section 1 whenever used in this Note shall have the respective meanings hereinafter specified.

 

“Applicable Laws” means any and all applicable foreign, federal, state and local statutes, laws, regulations, ordinances, policies, and rules or common law (whether now existing or hereafter enacted or promulgated), of any and all governmental authorities, agencies, departments, commissions, boards, courts, or instrumentalities of the United States, any state of the United States, any other nation, or any political subdivision of the United States, any state of the United States or any other nation, and all applicable judicial and administrative, regulatory or judicial decrees, judgments and orders, including common law rules and determinations.

 

1

 

 

“Change in Control”  means a merger or consolidation of the Company with or into any other entity in which the stockholders of the Company immediately prior to the merger or consolidation do not own more than 50% of the outstanding voting power (assuming conversion of all convertible securities and the exercise of all outstanding options and warrants) of the surviving entity or the sale, lease, licensing, transfer or other disposition of all or substantially all the assets of the Company; provided, however, that any new issuance of capital stock of the Company to one or more third parties for the sole purpose of providing new funding for the Company or solely in connection with a public offering of the Company’s stock shall not constitute a Change in Control.

 

“Common Stock” means the common stock, common shares or equivalent equity of the Company.

 

“Conversion Shares” means the New Round Stock and other securities issued or issuable to the Holder upon a Conversion Date pursuant to Article 3.

 

“Conversion Date” means, as applicable, (a) the Qualified Financing Conversion Date or (b) any other date of conversion of this Note pursuant to the terms hereof.

 

“Event of Default” shall have the meaning set forth in Section 6.1.

 

“Holder” or “Holders” means the person named above or any Person who shall thereafter become a recordholder of this Note in accordance with the terms hereof.

 

“IPO” means the completion by the Company of a firmly underwritten public offering of the Company’s Common Stock pursuant to a registration statement filed with the Securities and Exchange Commission, and declared effective under the Securities Act (and not subsequently withdrawn) covering the offer and sale of Common Stock for the account of the Company.

 

“Issue Date” means the issue date stated above.

 

“Maturity Date” shall mean the earlier of: (a) [_____]1 or (b) the consummation of a Qualified Financing or other event pursuant to which Conversion Shares are to be issued pursuant to the terms of this Note.

 

“New Round Stock” means the Common Stock issued by the Company in the Qualified Financing.

 

“Note” means this Convertible Note, as amended, modified or restated.

 

“Person” means an individual, corporation, partnership, limited liability company, association, trust, joint venture, unincorporated organization or any government, governmental department or agency or political subdivision thereof.

 

“Qualified Financing” means the next equity or equity-linked round of financing of the Company in whatever form or type that raises in excess of $1,000,000 gross proceeds.

 

1 The one-year anniversary of the Issue Date.

 

2

 

 

“Securities Act” means the United States Securities Act of 1933, as amended.

 

2.     GENERAL PROVISIONS.

 

2.1     Loss, Theft, Destruction of Note.  Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this Note and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Note, the Company will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Note, a new Note of like tenor and unpaid principal amount dated as of the date hereof. This Note shall be held and owned upon the express condition that the provisions of this Section 2.1 are exclusive with respect to the replacement of a mutilated, destroyed, lost or stolen Note and shall preclude any and all other rights and remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement of negotiable instruments or other securities without their surrender.

 

2.2     Prepayment; Redemption. This Note may not be prepaid by the Company in whole or in part, except with the prior written consent of the Holder. This Note may not be redeemed by the Company in whole or in part, except with the prior written consent of the Holder.

 

3.     CONVERSION OF NOTE.

 

3.1     Conversion.

 

(a)     Conversion upon Qualified Financing. Without any action on the part of the Holder, all of the outstanding principal and accrued interest (the “Outstanding Balance”) shall convert into (i) that number of shares of New Round Stock upon the consummation of a Qualified Financing (the “Qualified Financing Conversion Date”), based upon the product of (A) the Outstanding Balance on the Qualified Financing Conversion Date and (B) 1.35, then divided by the actual per share price of New Round Stock and (ii) if the Qualified Financing has a warrant component, a number of such warrants equal to the number of shares of New Round Stock determined pursuant to clause (i) above, multiplied by the warrant coverage percentage in such Qualified Financing.

 

(b)     Conversion upon Change of Control or IPO. If a Change of Control transaction or the Company’s IPO occurs prior to the Qualified Financing, the Notes would, at the election of the holders of a majority of the outstanding principal of the Notes, be either (i) payable upon demand as of the closing of such Change of Control transaction or IPO transaction or (ii) convertible into shares of the Common Stock immediately prior to such Change of Control transaction or IPO transaction at a price per share equal to the lesser of (the “Common Price”) (A) the per share value of the Common Stock as then reasonably determined by the Company’s Board of Directors acting in good faith, from time to time, as if in connection with either the grant of an incentive stock option qualified under Section 422 of the Internal Revenue Code of 1986, as amended, or the sale of the Common Stock in a private sale to a third party in an “arms-length” transaction, or (B) the per share consideration to be received by the holders of the Common Stock in such Change of Control transaction or IPO transaction.

 

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(c)     Cancellation. Upon and as of the Conversion Date, this Note will be cancelled on the books and records of the Company and shall represent the right to receive the Conversion Shares.

 

3.2     Delivery of Securities Upon Conversion. 

 

(a)     As soon as is practicable after the Conversion Date, the Company shall deliver to the Holder a certificate or certificates evidencing the Conversion Shares issuable to the Holder.

 

(b)     The issuance of certificates for Conversion Shares upon conversion of this Note shall be made without charge to the Holder for any issuance tax in respect thereof or other cost incurred by the Company in connection with such conversion and the related issuance of securities. Upon conversion of this Note, the Company shall take all such actions as are necessary in order to ensure that the Conversion Shares so issued upon such conversion shall be validly issued, fully paid and nonassessable.

 

3.3     Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon conversion of this Note. If any conversion of this Note would create a fractional share or a right to acquire a fractional share, the Company shall round to the nearest whole number.

 

4.     STATUS; RESTRICTIONS ON TRANSFER.

 

4.1     Status of Note. This Note is a direct, general and unconditional obligation of the Company, and constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, reorganization and other similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity. This Note does not confer upon the Holder any right to vote or to consent or to receive notice as a stockholder of the Company, as such, in respect of any matters whatsoever, or any other rights or liabilities as a stockholder, prior to conversion hereof into Conversion Shares.

 

4.2     Restrictions on Transferability. This Note and any Conversion Shares issued with respect to this Note, have not been registered under the Securities Act, or under any state securities or so-called “blue sky laws,” and may not be offered, sold, transferred, hypothecated or otherwise assigned except (a) pursuant to a registration statement with respect to such securities which is effective under the Act or (b) upon receipt from counsel satisfactory to the Company of an opinion, which opinion is satisfactory in form and substance to the Company, to the effect that such securities may be offered, sold, transferred, hypothecated or otherwise assigned (i) pursuant to an available exemption from registration under the Act and (ii) in accordance with all applicable state securities and so-called “blue sky laws.” The Holder agrees to be bound by such restrictions on transfer. The Holder further consents that the certificates representing the Conversion Shares that may be issued with respect to this Note may bear a restrictive legend to such effect. In addition, this Note shall be subject to the restrictions on transfer set forth in Article III of the Subscription Agreement.

 

5.     COVENANTS. In addition to the other covenants and agreements of the

 

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Company set forth in this Note, the Company covenants and agrees that so long as this Note shall be outstanding:

 

5.1     Payment of Note. The Company will punctually, according to the terms hereof, (a) within thirty (30) days after the Maturity Date, pay or cause to be paid all amounts due under this Note and (b) reasonably promptly issue the Conversion Shares upon the Conversion Date.

 

5.2     Notice of Default. If any one or more events occur which constitute or which, with the giving of notice or the lapse of time or both, would constitute an Event of Default or if the Holder shall demand payment or take any other action permitted upon the occurrence of any such Event of Default, the Company will forthwith give notice to the Holder, specifying the nature and status of the Event of Default or other event or of such demand or action, as the case may be.

 

5.3     Compliance with Laws. The Company will comply in all material respects with all Applicable Laws, except where the necessity of compliance therewith is contested in good faith by appropriate proceedings.

 

5.4     Use of Proceeds. The Company shall use the proceeds of this Note for general working capital.

 

6.     REMEDIES.

 

6.1     Events of Default. “Event of Default” wherever used herein means any one of the following events:

 

(a)     The Company shall fail to issue and deliver the Conversion Shares in accordance with Section 3;

 

(b)     Default in the due and punctual payment of the principal of, or any other amount owing in respect of (including interest), this Note when and as the same shall become due and payable, subject to a thirty (30) day cure period;

 

(c)     Default in the performance or observance of any covenant or agreement of the Company in this Note (other than a covenant or agreement a default in the performance of which is specifically provided for elsewhere in this Section 6.1), and the continuance of such default for a period of 10 days after there has been given to the Company by the Holder a written notice specifying such default and requiring it to be remedied;

 

(d)     The entry of a decree or order by a court having jurisdiction adjudging the Company as bankrupt or insolvent; or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under the Federal Bankruptcy Code or any other applicable federal or state law, or appointing a receiver, liquidator, assignee, trustee or sequestrator (or other similar official) of the Company or of any substantial part of its property, or ordering the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 calendar days;

 

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(e)     The institution by the Company of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under the Federal Bankruptcy Code or any other applicable federal or state law, or the consent by it to the filing of any such petition or to the appointment of a receiver, liquidator, assignee, trustee or sequestrator (or other similar official) of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors;

 

(f)     The Company seeks the appointment of a statutory manager or proposes in writing or makes a general assignment or an arrangement or composition with or for the benefit of its creditors or any group or class thereof or files a petition for suspension of payments or other relief of debtors or a moratorium or statutory management is agreed or declared in respect of or affecting all or any material part of the indebtedness of the Company; or

 

(g)     It becomes unlawful for the Company to perform or comply with its obligations under this Note.

 

6.2     Effects of Default. If an Event of Default occurs and is continuing, then and in every such case the Holder may declare this Note to be due and payable immediately, by a notice in writing to the Company, and upon any such declaration, the Company shall pay to the Holder the outstanding principal amount of this Note plus all accrued and unpaid interest through the date the Note is paid in full.

 

6.3     Remedies Not Waived; Exercise of Remedies. No course of dealing between the Company and the Holder or any delay in exercising any rights hereunder shall operate as a waiver by the Holder. No failure or delay by the Holder in exercising any right, power or privilege under this Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Applicable Law. By acceptance hereof, the Holder acknowledges and agrees that this Note is one of a series of Convertible Promissory Notes of similar tenor issued by the Company (collectively, the “Related Notes”) and that upon the occurrence and during the continuance of any Event of Default, the holders of a majority in original principal amount of the Related Notes shall have the right to act on behalf of the holders of all such Notes in exercising and enforcing all rights and remedies available to all of such holders under this Note, including, without limitation, foreclosure of any judgment lien on any assets of the Company. By acceptance hereof, the Holder agrees not to independently exercise any such right or remedy without the consent of the holders of a majority in original principal amount of the Related Notes.

 

7.     SUBORDINATION.

 

7.1     The Company agrees and the Holder, by acceptance of this Note, agrees, expressly for the benefit of the present and future holders of Senior Indebtedness (as defined below), that, except as otherwise provided herein, upon (a) an event of default under any Senior Indebtedness (as defined below), or (b) any dissolution, winding up or liquidation of the Company, whether or not in bankruptcy, insolvency or receivership proceedings, the Company

 

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shall not pay, and the Holder shall not be entitled to receive, any amount in respect of the principal and interest of such Note unless and until the Senior Indebtedness shall have been paid or otherwise discharged. For purposes of this Note, “Senior Indebtedness” shall mean, unless expressly subordinated to or made on a parity with the amounts due under this Note, the principal of (and premium, if any), unpaid interest on and amounts reimbursable, fees, expenses, costs of enforcement and other amounts due in connection with, indebtedness for borrowed money of the Company, to banks, insurance companies, commercial finance lenders, leasing or equipment financing institutions or other regulated lending institutions (excluding any indebtedness convertible into equity securities of the Company). Upon (i) an event of default under any Senior Indebtedness, or (ii) any dissolution, winding up or liquidation of the Company, any payment or distribution of assets of the Company, which the Holder would be entitled to receive in respect of the Note but for the provisions hereof, shall be paid by the liquidating trustee or agent or other person making such payment or distribution directly to the holders of Senior Indebtedness ratably according to the aggregate amounts remaining unpaid on Senior Indebtedness after giving effect to any concurrent payment or distribution to the holders of Senior Indebtedness. Subject to the payment in full of the Senior Indebtedness and until this Note is paid in full, the Holder shall be subrogated to the rights of the holders of the Senior Indebtedness (to the extent of payments or distributions previously made to the holders of Senior Indebtedness pursuant to this Section 7.1 to receive payments or distributions of assets of the Company applicable to the Senior Indebtedness).

 

7.2     Nothing in this Section 7 is intended to impair, as between the Company, its creditors (other than the holders of Senior Indebtedness) and the Holder, the unconditional and absolute obligation of the Company to pay the principal of and interest on this Note or affect the relative rights of the Holder and the other creditors of the Company, other than the holders of Senior Indebtedness. Nothing in this Note shall prevent the Holder from exercising all remedies otherwise permitted by applicable law upon default under the Note, subject to the rights, if any, of the holders of Senior Indebtedness in respect to cash, property or securities of the Company received upon the exercise of any such remedy.

 

8.     MISCELLANEOUS.

 

8.1     Severability. If any provision of this Note shall be held to be invalid or unenforceable, in whole or in part, neither the validity nor the enforceability of the remainder hereof shall in any way be affected.

 

8.2     Notice. Where this Note provides for notice of any event, such notice shall be given (unless otherwise herein expressly provided) in writing and either (a) delivered personally, (b) sent by certified, registered or express mail, postage prepaid or (c) sent by facsimile or other electronic transmission, and shall be deemed given when so delivered personally, sent by facsimile or other electronic transmission (confirmed in writing) or mailed. Notices shall be addressed, if to Holder, to its address as provided in the Subscription Agreement or, if to the Company, to its principal office.

 

8.3     Governing Law. This Note shall be governed by, and construed in accordance with, the laws of the State of New York (without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction).

 

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8.4     Forum. The Holder and the Company hereby agree that any dispute which may arise out of or in connection with this Note shall be adjudicated before a court of competent jurisdiction in the State of New York and they hereby submit to the exclusive jurisdiction of the federal or state courts of the State of New York, as well as to the jurisdiction of all courts to which an appeal may be taken from such courts, with respect to any action or legal proceeding commenced by either of them and hereby irrevocably waive any objection they now or hereafter may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that such court is an inconvenient forum.

 

8.5     Headings. The headings of the Articles and Sections of this Note are inserted for convenience only and do not constitute a part of this Note.

 

8.6     Amendments. This Note may be amended or waived only with the written consent of the Company and the holders of a majority in original aggregate principal amount of the Related Notes. Any such amendment or waiver shall be binding on all holders of the Notes, even if they do not execute such consent, amendment or waiver.

 

8.7     No Recourse Against Others. The obligations of the Company under this Note are solely obligations of the Company and no officer, employee or stockholder shall be liable for any failure by the Company to pay amounts on this Note when due or perform any other obligation.

 

8.8     Assignment; Binding Effect. This Note may be assigned by the Company without the prior written consent of the Holder. This Note shall be binding upon and inure to the benefit of both parties hereto and their respective permitted successors and assigns.

 

Signature on the Following Page

 

 

 

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In Witness Whereof, the Company has caused this Note to be signed by its duly authorized officer on the date hereinabove written.

 

Brain Scientific Inc.

 

 

By:                                                      

Name: Boris Goldstein

Title:

 

 

 

 

 

Signature Page to Convertible Promissory NoteEXCLUSIVE
LICENSE AND MANAGEMENT AGREEMENT

 

 

WALA,
INC.

 

and

 

LANDSTAR,
INC.

 

_____________,
2019

 

    	 	 	 

     

    

 

EXCLUSIVE
LICENSE AND MANAGEMENT AGREEMENT

 

 

I

PARTIES

 

THIS
EXCLUSIVE LICENSE AND MANAGEMENT AGREEMENT (the “Agreement”) is entered into effective as of the ____ day
of ________, 2019 (the “Effective Date”), by and between WALA, INC., a Louisiana corporation doing business
under the name ARCMAIL TECHNOLOGY (“ArcMail”); and, LANDSTAR, INC., a Nevada corporation (“LDSR”).
ArcMail and LDSR are sometimes referred to collectively herein as the “Parties”, and each individually as a
“Party”.

 

II

RECITALS

 

A.
ArcMail is in the business generally described as cybersecurity, with an emphasis on email archiving and encryption, and data
loss prevention (the “Business”). As used herein, the term Business shall be all encompassing of all aspects
of the business conducted by ArcMail, whether historical, current, or planned for the future.

 

B.
LDSR is in the cybersecurity business.

 

C.
ArcMail wishes to grant to LDSR hereunder an exclusive license for LDSR to operate, run, and exploit the Business on a worldwide
basis, and LDSR wishes to receive the exclusive license, which exclusive license shall specifically include, without limitation,
all goodwill of the Business.

 

D.
In addition to the grant of the exclusive license hereunder, the Parties further wish to provide for the management of the
Business.

 

E.
The Parties has previously entered into that certain Term Sheet dated __ January 2019 (the “Term Sheet”).
This Agreement shall expressly replace the Term Sheet, except for those provisions under the section titled “Binding
Provisions”.

 

F.
NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby
agree as follows:

 

III

GRANT
OF EXCLUSIVE LICENSE

 

3.1
License. Subject to the terms and conditions of this License Agreement, ArcMail hereby licenses to LDSR, and LDSR
holds, the exclusive right and license to use, sell, sublicense, market, and receive the benefits from the marketing, selling
and licensing, of the ArcMail business products, including, without limitation, the good will of the Business (the “Exclusive
License”).

 

    	 	1	 

     

    

 

3.2
Scope of the Exclusive License. The scope of the Exclusive License shall be interpreted as broadly as possible,
extending to all ArcMail products, product lines, new products, , including historical, current, and planned products. The Exclusive
License shall permit LDSR the benefit of using all ArcMail assets, specifically excluding all Excluded Assets, and specifically
including, without limitation, all good will; all intellectual property rights; intellectual property; know-how; trade secrets;
technology; licensed technology; products; client lists; websites and social media accounts; and, improvements, corrections, and
enhancements to all of the above (collectively, the “Business Assets”), for the purpose of marketing, selling
and sublicensing the ArcMail productsand receiving the revenues and other financial benefits that flow from the sale and sublicensing
of the ArcMail products and use of the Business Assets during the term of this Exclusive License.

 

3.3
Excluded Assets. For purposes of this Agreement, “Excluded Assets” is defined to include all assets
of ArcMail not directly or indirectly used in the conduct of the Business, including, without limitation, office furniture and
fixtures; equipment not otherwise specified; accounts receivable as of the Closing; pending or prospective legal actions on behalf
of ArcMail for claims that have arisen prior to the Closing and, cash on hand at the Closing.

 

3.4
No Further Use or Licensing. As holders of the Exclusive License to all ArcMail products, LDSR shall have all right
and control over the marketing, sale, sublicensing and distribution of the ArcMail business products during the Term of the License.
ArcMail shall make no further use of the Business except as otherwise expressly provided for hereunder, and ArcMail shall grant
no further licenses or sublicenses of any kind with regard to the Business to any third party during the Term.

 

3.5
Right to Sublicense. LDSR shall be permitted to grant sublicenses under the Exclusive License to any third party
it controls by way of an ownership interest of at least eighty percent (80%). All sublicenses granted under this Section 3.5 shall
comply with all provisions of this Agreement. ArcMail is to be notified 30 days in advance of sublicense grant. LDSR is still
the party of contract with ArcMail and responsible for ensuring compliance with the agreement.

 

3.6
Relationship of the Parties. It is expressly agreed that each of the Parties shall be independent contractors and
that the relationship between the Parties shall not constitute a partnership, joint venture, or agency. No Party shall have the
authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on
the other, without the prior consent of the other Party to do so. LDSR shall not be liable, as principal, surety, guarantor, agent
or otherwise, for any of the debts, obligations, or liabilities of ArcMail except as expressly provided for herein to contrary.

 

IV

MANAGEMENT
AND CONDUCT OF THE BUSINESS

 

4.1
Financial Rights and Obligations of LDSR.

 

4.1.1.
Revenue. Any and all revenue generated by the Business during the Term of this Agreement (except for any revenue
coming from the Excluded Assets) shall belong solely to LDSR, even if (in the sole discretion of LDSR) LDSR chooses to have revenues
collected by ArcMail on its behalf.

 

4.1.2.
Expenses. LDSR shall be solely responsible for the payment of all expenses related to the operation of the Business
during the Term, including, without limitation, sales and marketing related expenses; maintenance of technology infrastructure
and third-party licenses; ongoing support of existing customers and tech support team; storage of records and documents; and,
the employee related expenses under Section 4.3, below.

 

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4.2
Financial Rights and Obligations of ArcMail.

 

4.2.1.
Retained Liabilities. ArcMail shall retain all responsibility for the payment of any and all of its obligations
accruing or otherwise incurred or becoming due as of or before the Closing Date (the “Retained Liabilities”).
ArcMail shall pay all Retained Liabilities in a manner so as to not unduly jeopardize or negatively impact the Exclusive License
or the Business after the Closing Date.

 

4.2.2.
Retained Receivables. ArcMail shall retain all rights to all accounts receivable accrued, owed, and billed as of
the Closing Date (the “Retained Receivables”). LDSR shall render reasonable assistance to ArcMail (if so requested
by ArcMail) to collect Retained Receivables.

 

4.2.3.
On-Going Obligations. At all times after Closing ArcMail shall continue to be responsible for the timely payment
of all costs and expenses related to (i) maintaining its corporate existence; (ii) preparation of financial statements in accordance
with Section 4.5, below; and, (iii) ArcMail’s office facilities.

 

4.3
Employees. The employees of ArcMail (the “Employees”) shall remain employees of ArcMail, subject
to determination by LDSR as to continued employment. If during the Term of this Exclusive License LDSR has decided to terminate
any ArcMail employee, LDSR shall give Welch reasonable notice its intent to do so, not less than five (5) days before the intended
termination, and Welch shall have final approval of termination of any ArcMail employee. Should Welch decide against such termination
for any non-technical employee which includes development and technical support staff, LDSR shall no longer be responsible for
the payment of that employee’s salary and all related costs and expenses. LDSR shall be responsible for the timely payment
to ArcMail of all costs and expenses related to the Employees, including, without limitation, salaries, withholding, approved
(by LDSR) reimbursements, and employee benefits. All ArcMail employees shall maintain their current salaries, with reasonable
and customary periodical increases. All such Employees shall work remotely as there will be no office space maintained by ArcMail.

 

4.4
Management. Subject to the oversight and final decision-making authority of LDSR, Rory Welch (“Welch”)
shall continue to serve as the CEO of ArcMail (without compensation by LDSR as Welch is expressly excluded from the definition
of Employees hereunder). Welch shall, as an employee of ArcMail, subject to the direction of LDSR, at all times exercise his best
efforts to promote and advance the good will of the Business, and the revenue production flowing from the ArcMail products and
product lines.

 

4.4.1.
Affirmative Obligations. At all times during the term of this Agreement Welch shall render services typically associated
with the chief executive officer of a similarly sized company in the same industry, including, without limitation:

 

(a)
Manage all costs and all pricing on a customer-by-customer basis, estimate all costs on new contracts, bid on and enter into new
contracts, and control all costs for contracts in progress.

 

(b)
Supervise and control the purchase of all materials, supplies, and services necessary for the Business to operate in an efficient
manner.

 

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4.4.2.
Negative Covenants. Welch shall have no authority, without the express written consent of LDSR, to purchase in the
name of ArcMail or LDSR any assets outside the ordinary course of business, or incur any indebtedness outside the ordinary course
of business. Welch further agrees that at no time shall Welch:

 

(a)
permit anything to be done which will or might cause ArcMail to operate in an improper or illegal manner;

 

(b)
cause a default in any of the terms, conditions and obligations of any of the contracts and other agreements of ArcMail;

 

(c)
allow any of ArcMail’s licenses, permits, or approvals necessary for the operation of the Business to lapse, expire, or
otherwise be deemed invalid; or

 

(d)
deny LDSR access to the books and records of ArcMail.

 

4.5
Financial Books and Records.

 

4.5.1.
GAAP Books and Records. After Closing, Welch and LDSR shall jointly maintain and manage the books and records of
ArcMail in a manner consistent with past practice, and in accordance with GAAP so that LDSR can direct the preparation of audited
financials for ArcMail, in its sole discretion and expense. This will be done through a new QuickBooks account in order to keep
the financial records going forward separate from the historical financial records.

 

4.5.2.
Operating Reports. After Closing, Welch and LDSR shall jointly prepare weekly operating reports and statements including
but not limited to cash flow statements, income statements, accounts payable and accounts receivable reports and such other reports
and information as may be reasonably requested LDSR from time-to-time.

 

4.5.3.
Other Financial Functions. After Closing, Welch and LDSR shall work cooperatively and in good faith to agree, from
time-to-time, on the manner in which all other finances of the Business, including payroll, taxes, accounting, bookkeeping, record
keeping, managing or accounts payable, and accounts receivable, banking, financial records and reporting functions as they pertain
to the Business, will be administered, supervised, and maintained.

 

4.5.4.
Historical Financial Books and Records. Welch shall retain, maintain, and make available for inspection and review
by LDSR all historical financial books and records of ArcMail.

 

4.6
Right to Offset. In the event ArcMail fails to make any payment with respect to any of its liabilities, obligations
or commitments not expressly assumed or the responsibility of LDSR hereunder (the “Unpaid Liabilities”), LDSR
may elect to pay such Unpaid Liabilities, in addition to any other costs or charges, if any, associated with the Unpaid Liabilities
(the “Associated Costs”), if the LDSR determines, in its sole and absolute discretion, that such payment is
necessary or desirable to allow the Business to continue on an uninterrupted basis. However, (i) LDSR shall be required to give
Welch five (5) days prior written notice, which notice shall set forth the amount and identity of the Unpaid Liabilities and Associated
Costs; and, (ii) Welch shall not have paid such Unpaid Liabilities and Associated Costs within such five (5) day period or taken
reasonable steps to contest such Unpaid Liabilities where ArcMail has reasonable basis to contest such Unpaid Liabilities. ArcMail
hereby acknowledges and agrees that if LDSR pays any Unpaid Liabilities or Associated Costs, LDSR shall have the right to offset
the amount of such Unpaid Liabilities and/or Associated Costs against amounts then or thereafter due ArcMail under this Agreement.

 

    	 	4	 

     

    

 

V

PAYMENT
TERMS

 

5.1
License Fees. As full and complete payment for the Exclusive License and the rendering of all services required
of Welch hereunder, LDSR shall make the following payments to ArcMail (collectively, the “License Fees”):

 

5.1.1.
Initial Payment. A total of Fifty Thousand Dollars ($50,000), payable as follows: (i) a payment in the amount of
Twenty Thousand Dollars ($20,000), the receipt of which by ArcMail is hereby acknowledged; and, (ii) the balance of Thirty Thousand
Dollars ($30,000), payable upon execution of this Agreement and placed into an escrow account at the expense of LDSR, and released
from escrow at Closing in accordance with wire transfer instruction to be provided by Welch.

 

5.1.2.
Closing Payment. Immediately upon Closing, LDSR shall tender payment to ArcMail in the amount of One Hundred Fifty
Thousand Dollars ($150,000).

 

5.1.3.
Monthly Payments. LDSR shall tender monthly payments to ArcMail as follows, with the first payment due 30-days after
Closing, and each successive payment due on the same day of each successive month:

 

(a)
Months 1 – 6: $25,000 per month.

 

(b)
Months 7 – 17: $30,000 per month.

 

5.1.4.
Final Payment. On Month 18, final payment of the License Fess shall be tendered by LDSR to ArcMail in the amount
of Seven Hundred Sixty Five Thousand Dollars ($765,000).

 

5.2
Use of the License Fees. As a priority payment, and before ArcMail makes any other use of the receipt of each payment
of the License Fees, ArcMail shall apply each of the License Fees in the amount necessary to stay current under the terms and
conditions of that certain Forbearance Agreement dated 16 July 2018 by and between ArcMail and the additional parties referred
to therein as the Noteholders, a copy of which is attached hereto as Exhibit 5.2 (the “Forbearance Agreement”).
ArcMail further agrees to at all times be in full compliance with the terms and conditions of the Forbearance Agreement.

 

VI

CLOSING

 

6.1
Closing Date. The closing of the transactions contemplated under this Agreement (the “Closing”)
shall take place on the ____ day of February, 2019, at such place as the Parties may agree, or at such other time as the Parties
may agree. The date on which the Closing occurs is also referred to herein as the “Closing Date”.

 

6.2
Concurrent Transactions. In addition to all other conditions to Closing herein, the Parties agree that the following
concurrent transactions (the “Concurrent Transactions”) must be closed: (i) execution of the Stock Purchase
Rights Agreement;(ii) execution of the Business Covenants Agreement by and between Welch and LDSR; and, (iii) any and all other
documents and agreements deemed necessary by the Parties in order to effect the transactions envisioned under this Agreement and
the Concurrent Transactions. All such items are collectively referred to herein as the “Concurrent Agreements”.

 

    	 	5	 

     

    

 

6.3
Representations and Warranties of ArcMail to be True. The representations and warranties of ArcMail contained in
this Agreement or in any statement, certificate, schedule or other document delivered pursuant to this Agreement or in connection
with the transactions contemplated hereby, shall be true and correct in all material respects on the Closing with the same force
and effect as though made at such time. ArcMail shall have performed all obligations and complied with all covenants required
by this Agreement, and the other agreements referred to herein, to be performed or complied with by it prior to the Closing.

 

6.4
Representations and Warranties of LDSR to be True. The representations and warranties of LDSR contained in this
Agreement or in any statement, certificate, schedule or other document delivered pursuant to this Agreement or in connection with
the transactions contemplated hereby, shall be true and correct in all material respects on the Closing with the same force and
effect as though made at such time. LDSR shall have performed all obligations and complied with all covenants required by this
Agreement, and the other agreements referred to herein, to be performed or complied with by it prior to the Closing.

 

6.5
Deliverables.

 

6.5.1.
By ArcMail. At the Closing, ArcMail shall deliver to LDSR executed versions of this Agreement, the Concurrent Agreements,
and all other required documents (including all documents to be signed by Welch); and, executed Board of Directors resolution
authorizing the transactions contemplated hereunder.

 

6.5.2.
By LDSR. At the Closing, LDSR shall deliver to ArcMail the Closing Payment by wire transfer; executed versions of
this Agreement, the Concurrent Agreements, and all other required documents; and, executed Board of Directors resolution authorizing
the transactions contemplated hereunder.

 

VII

TERM,
AND TERMINATION

 

7.1
Term. The term of this Agreement shall commence on the Closing Date and continue in full force and effect for twenty
seven (27) months, unless terminated earlier pursuant to this Agreement.

 

7.2
Early Termination. This Agreement may be terminated prior to the end of the Term in the following circumstances:

 

7.2.1.
Upon Material Breach. Upon any material breach of this Agreement by either Party (in such capacity, the “Breaching
Party”), the other Party may terminate this Agreement by providing thirty (30) days written notice to the Breaching
Party, specifying the material breach. The termination shall become effective at the end of the thirty (30) day period unless:
(i) the Breaching Party cures such breach during such thirty (30) day period; or, (ii) if such breach is not susceptible to cure
within thirty (30) days of the receipt of written notice of the breach, and the Breaching Party is diligently pursuing a cure
(unless such breach, by its nature, is incurable, in which case the Agreement may be terminated immediately. However, in
the case of a failure to pay any amount due hereunder, such default may be the basis of termination fifteen (15) business days
following the date that notice of such default was provided to the Breaching Party.

 

    	 	6	 

     

    

 

7.2.2.
Upon Bankruptcy. Either Party may terminate this Agreement immediately if the other Party: (i) applies for or consents
to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property;
(ii) becomes unable, or admits in writing its inability, to pay its debts generally as they mature; (iii) makes a general assignment
for the benefit of its creditors; (iv) is dissolved or liquidated in full or in part; (v) commences a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency
or other similar law now or hereafter in effect or consents to any such relief or to the appointment of or taking possession of
its property by any official in an involuntary case or other proceeding commenced against it; (vi) takes any action for the purpose
of effecting any of the foregoing; or, (vii) becomes the subject of an involuntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or
hereafter in effect that is not dismissed within sixty (60) calendar days of commencement. In the event that LDSR intends to file
for bankruptcy, LDSR shall notify ArcMail before filing, and without further notice, or demand, this Agreement will immediately
terminate.

 

7.3
Effect of Termination. Termination shall be without prejudice to the rights, remedies, obligations, and liabilities
which may have accrued on or at any time up to the date of termination. Upon termination, the Exclusive License shall terminate
and be of no further force and effect.

 

7.4
Cross Default. This License Agreement is further conditioned on the continued enforceability of the Stock Purchase
Rights Agreement. If at any time LDSR fails to tender timely payment under the Stock Purchase Rights Agreement, and ArcMail rightfully
terminates the Stock Purchase Rights Agreement, then as of the termination of the Stock Purchase Rights Agreement all remaining
rights and obligations under this License Agreement shall terminate and this License Agreement shall be of no further force and
effect. 

 

7.5
Survival. The provisions of Articles X and XIII shall survive the expiration or termination of this Agreement.

 

VIII

REPRESENTATIONS
AND WARRANTIES OF ARCMAIL

 

Except
as expressly set forth to the contrary in Schedules attached to this Agreement, corresponding to the lettered and numbered Sections
contained in this Article VIII, ArcMail hereby represents and warrants to LDSR as follows, as of the Execution Date and as of
the Closing Date, as supplemented and updated pursuant to this Agreement:

 

8.1
Organization and Good Standing. ArcMail is a corporation duly organized, validly existing, and in good standing
under the laws of the State of Louisiana. ArcMail has all requisite corporate power and authority to carry on the Business and
to own and use the properties owned and used by it. ArcMail has no subsidiaries.

 

8.2
Foreign Qualifications. ArcMail is duly qualified to conduct business and is in corporate and tax good standing
under the laws of each jurisdiction in which the nature of its businesses or the ownership or leasing of its properties requires
such qualification.

 

    	 	7	 

     

    

 

8.3
Authorization.

 

8.3.1.
Operation of Business. ArcMail has the requisite corporate power and authority and all requisite licenses, permits,
and franchises necessary to own and operate its properties and to carry on the Business as now being conducted.

 

8.3.2
Execution of Agreements. ArcMail has the requisite corporate power and authority to enter into and carry out the
terms and conditions of this Agreement and each of the Concurrent Agreements to which it is a party, as well as all transactions
contemplated hereunder. All corporate proceedings have been taken and all corporate authorizations have been secured which are
necessary to authorize the execution, delivery, and performance by ArcMail of this Agreement and the Concurrent Agreements to
which it is a party. This Agreement has been duly and validly executed and delivered by ArcMail and constitutes the valid and
binding obligations of ArcMail, enforceable in accordance with the respective terms.

 

8.4
Effect of Agreement. As of the Closing, the consummation by ArcMail of the transactions herein contemplated, including
the execution, delivery, and consummation of this Agreement, will not:

 

(a)
Violate any judgment, statute, law, code, act, order, writ, rule, ordinance, regulation, governmental consent or governmental
requirement, or determination or decree of any arbitrator, court, or other governmental agency or administrative body, which now
or at any time hereafter may be applicable to and enforceable against the relevant party, work, or activity in question or any
part thereof (collectively, “Requirement of Law”) applicable to or binding upon ArcMail or the Assets;

 

(b)
Violate (i) the terms of the Articles of Incorporation or Bylaws of ArcMail; (ii) the Forbearance Agreement; or, (iii) any material
agreement, contract, mortgage, indenture, bond, bill, note, or other material instrument or writing binding upon ArcMail or to
which ArcMail or the Assets is subject;

 

(c)
Accelerate or constitute an event entitling the holder of any indebtedness of ArcMail to accelerate the maturity of such indebtedness;
or

 

(d)
Result in the breach of, constitute a default under, constitute an event which with notice or lapse of time, or both, would become
a default under, or result in the creation of any lien, security interest, charge or encumbrance upon any of the Assets under
any agreement, commitment, contract (written or oral) or other instrument to which ArcMail is a party or by which it is bound
or affected.

 

8.5
Consents. No consents, approvals or other authorizations or notices, other than those which have been obtained and
are in full force and effect, are required by any state or federal regulatory authority or other Person or entity in connection
with the execution and delivery of this Agreement and the performance of any obligations contemplated hereunder.

 

    	 	8	 

     

    

 

8.6
Financial Statements. The financial statements of ArcMail dated _____________, 2018 (the “Financial Statements”),
which have been previously delivered by ArcMail to LDSR, are true, complete and accurate in all material respects, have been prepared
in accordance with generally accepted accounting principles consistently applied, and present fairly the financial position of
ArcMail as of the date thereof. Except to the extent reflected and reserved against in the Financial Statements, ArcMail did not
have, as of the date of the Financial Statements, any debts, liabilities or obligations of any nature, whether accrued, absolute,
contingent or otherwise, and whether due or to become due, except for those obligations that are not required by generally accepted
accounting principles to be included in the Financial Statements.

 

8.7
Changes in Financial Condition. Since the date of the Financial Statements, there has not been:

 

(a)
Any material change in the condition (financial or otherwise) or business of ArcMail, except changes in the ordinary course of
business, none of which has been materially adverse;

 

(b)
Any damage, destruction or loss (whether or not covered by insurance) materially and adversely affecting the properties, assets,
business or prospects of ArcMail;

 

(c)
Any change in the accounting methods or practices followed by ArcMail or any change in the depreciation or amortization policies
or rates adopted by ArcMail (whether or not presently outstanding), except liabilities incurred, and obligations under agreements
entered into, in the ordinary course of business; or

 

(d)
Any sale, lease, abandonment or other disposition by ArcMail, other than in the ordinary course of business, of any machinery,
equipment or other operating properties directly or indirectly related to the Business.

 

8.8
Legal Proceedings. Except as set forth in Schedule 8.10, attached hereto and incorporated herein by reference, there
is no claim, legal action, suit, arbitration, investigation or hearing, notice of claims or other legal, administrative or governmental
proceedings pending or to the best knowledge of ArcMail, threatened against ArcMail (or in which ArcMail is plaintiff or otherwise
a party thereto), and, to the best knowledge of ArcMail, there are no facts existing which might result in any such claim, action,
suit, arbitration, investigation, hearing, notice of claim or other legal, administrative or governmental proceeding that might
reasonably be expected to have a material adverse effect or that might reasonably be expected to threaten or impede the consummation
of the transactions contemplated by this Agreement. ArcMail has not waived any statute of limitations or other affirmative defense
with respect to any of its liabilities. There is no continuing order, injunction, or decree of any court, arbitrator, or governmental
or administrative authority to which ArcMail is a party. ArcMail has not been permanently or temporarily enjoined or barred by
order, judgment or decree of any court or other tribunal or any agency or regulatory body from engaging in or continuing any conduct
or practice.

 

8.9
Permits and Licenses. ArcMail has all licenses and permits (federal, state and local) required by governmental authorities
to own, operate, and carry on the Business as now being conducted, and such licenses and permits are in full force and effect.
No violations are or have been recorded in respect to the licenses or permits, included but not limited to fire and health and
safety law violations, and no proceeding is pending or threatened looking toward the revocation or limitation of any of them.
All permits, licenses, orders or approvals of governmental or administrative authorities required to permit ArcMail to carry on
after the Closing the Business as currently conducted have been obtained and are in full force and effect.

 

    	 	9	 

     

    

 

8.10
Customers and Suppliers. The books and records of ArcMail contain a correct and complete list of each of the customers
and suppliers of the Business who have dealt with the Business during the three (3) year period ending on the date hereof (the
“Customers and Suppliers”). ArcMail has taken all commercially reasonable steps to maintain the confidentiality
of the Customers. To the best knowledge of ArcMail, as of the Closing:

 

(a)
ArcMail has no reasonable cause to believe that any of its Customers or Suppliers, or any other person or entity having material
business dealings with the Business, will cease to continue such relationship with immediately after the Closing;

 

(b)
ArcMail has no reasonable cause to believe that any of its Customers or Suppliers, or any other person or entity having material
business dealings with the Business, will substantially reduce the extent of such relations with the Business at any time from
or after the Closing;

 

(c)
ArcMail has no reasonable cause to believe that there are no existing or contemplated material modifications or changes in the
business relationship of any Customers or Suppliers with ArcMail; and

 

(d)
ArcMail has no reasonable cause to believe that there are existing conditions or states of facts or circumstances which have materially
affected adversely, or will materially adversely affect, the relationship of the Business with Customers or Suppliers after the
Closing, or which has prevented or will prevent the Business from being carried on after the Closing, in essentially the same
manner as it is currently carried on.

 

8.11
Material Agreements. Except as set forth in Schedule 8.11, attached hereto and incorporated herein by reference,
ArcMail is not a party to, nor are is the Business or Business Assets bound by or subject to, any of the following:

 

(a)
license agreement or assignment (whether as licensor or licensee, assignor or assignee) relating to trademarks, trade names, patents
or copyrights (or applications therefore), know-how or technical assistance, or other proprietary rights (other than trademark
agreements which are entered into in the ordinary course of the Business in conjunction with sales agreements);

 

(b)
agreement with any vendor, distributor, dealer, sales agent or representative other than contracts or orders for the purchase
or sale of goods made in the usual and Ordinary Course of Business at an aggregate price per contract or order of less than $50,000
and a terms of less than ninety days under any such contract or order;

 

(c)
agreement with any supplier or customer with respect to discounts (other than those reflected on ArcMail’s current price
lists) or allowances or extended payment terms;

 

(d)
joint venture or partnership agreement with any other person;

 

(e)
agreement which restricts ArcMail from doing business anywhere in the world; or

 

(f)
long-term services agreement.

 

    	 	10	 

     

    

 

8.12
Employees. Prior to Closing ArcMail has delivered to LDSR a list of (i) all employees of ArcMail, along with the
position and the annual rate of compensation of each such person; and, (ii) all independent contractors of ArcMail rendering services
to ArcMail, along with a brief description of the terms of each such contractor’s arrangement. Since delivery of that list
there have no material changes to any information contained therein. ArcMail is not aware of any key employee or group of employees
that have any plans to not work for ArcMail after the Closing. Except as set forth in Schedule 8.12, and except as otherwise provided
for herein, ArcMail is not a party to any employment agreement, independent contractor agreement, or similar arrangement or agreement,
whether it be reduced to written form or an oral promise.

 

8.13
Insurance Policies. All insurance policies maintained by ArcMail on the Business, Business Assets, officers, and
personnel provide adequate and sufficient liability and property damage coverage commensurate with the business practices of the
Business. ArcMail does not conduct any business which would result in the cancellation of, or a material increase in the premiums,
for any of its insurance policies.

 

8.14
Intellectual Property Rights. The “Intellectual Property Assets” are all those necessary for the operation
of the Business by ArcMail as it is currently conducted, and are listed on Schedule 8.14, attached hereto and incorporated herein
by reference. ArcMail is the owner of all right, title, and interest in and to each of the Intellectual Property Assets, free
and clear of all liens, security interests, charges, encumbrances, equities, and other adverse claims, and has the right to use
without payment to a third party all of the Intellectual Property Assets. To the extent that any employee or former employee of
ArcMail has developed or invented or otherwise produced any of the Intellectual Property Assets, all such former and current employees
of ArcMail have executed written contracts that assign to ArcMail all rights to any inventions, improvements, discoveries, or
information relating to the Intellectual Property Assets. No such employee or former employee has entered into any contract that
restricts or limits in any way the scope or type of work in which the employee may be engaged or requires the employee to transfer,
assign, or disclose information concerning his work to anyone other than ArcMail.

 

8.15
Other Arrangements. Other than the Forbearance Agreement and that certain Security Agreement dated 01 September
2014, a copy of which is attached hereto as Exhibit 8.15, ArcMail is not a party to any contract, commitment or agreement, nor
is the Business or any of the Business Assets subject to, or bound or affected by, any order, judgment, decree, law, statute,
ordinance, rule, regulation or other restriction of any kind or character which is not applicable to the Business generally, which
would, individually or in the aggregate, materially adversely affect the Business or any of the Business Assets. ArcMail is also
not a party or subject to any agreement, contract or other obligation which would require the making of any payment, other than
payments contemplated by this Agreement, to any other person as a result of the consummation of the transactions contemplated
herein.

 

8.16 Disclosure.
No representation or warranty made by ArcMail in this Agreement or in any writing furnished or to be furnished pursuant to or
in connection with this Agreement knowingly contains or will contain any untrue statement of a material fact, or omits or
will omit to state any material fact required to make the statements herein or therein contained not misleading. ArcMail has
disclosed to LDSR all material information known to it related to ArcMail and the Business, and their respective
condition, operations and prospects.

 

8.17
Material Defaults. ArcMail is not in material default, or alleged to be in default, under any material agreement,
contract, lease, mortgage, commitment, instrument or obligation, and no other party to any agreement, contract, lease, mortgage,
commitment, instrument or obligation to which ArcMail is a party is in default thereunder, which default would materially and
adversely affect the properties, assets, or prospects of the Business.

 

    	 	11	 

     

    

 

8.18
Tax Matters.

 

(a)
ArcMail has filed all tax returns (federal, state and local) required to be filed by it, and all such tax returns filed are complete
and accurate in all material respects.

 

(b)
ArcMail has paid all taxes due and payable on the returns or any assessments or penalties received by it and all other taxes (federal,
state and local) due and payable by it.

 

(c)
ArcMail has collected and withheld all taxes required to collect or withhold and has timely submitted all such collected and withheld
amounts to the appropriate authorities.

 

(d)
ArcMail is in compliance with all back-up withholding and information reporting requirements under federal, any state, local,
or foreign laws, and the rules and regulations thereunder.

 

(e)
No examination or audit of any tax returns of ArcMail by any governmental entity is currently in progress or, to the knowledge
of ArcMail, threatened or contemplated. ArcMail has not waived any statute of limitations with respect to taxes or agreed to an
extension of time with respect to a tax assessment or deficiency.

 

8.19
Other Matters. ArcMail has not taken and has not agreed to take any action, and has no knowledge of any fact or
circumstances that would materially impede or delay the consummation of the transactions contemplated under this Agreement or
the Concurrent Agreements.

 

8.20
Advice of Changes. Between the Execution Date and the Closing Date, ArcMail shall promptly advise LDSR in writing
of any fact which, if existing or known at the Execution Date, would have been required to be set forth or disclosed in or pursuant
to this Agreement or of any fact which, if existing or known at the Execution Date, would have made any of the representations
herein untrue.

 

IX

REPRESENTATIONS
AND WARRANTIES BY BUYER

 

Except
as expressly set forth to the contrary in Schedules attached to this Agreement, corresponding to the lettered and numbered Sections
contained in this Article IX, LDSR hereby represents and warrants to ArcMail as follows, as of the Execution Date and as of the
Closing Date, as supplemented and updated pursuant to this Agreement:

 

9.1
Organization. LDSR is a corporation duly organized, validly existing and in good standing under the laws of the
State of Nevada. LDSR is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where
such qualification is required.

 

9.2
Authorization.

 

9.2.1.
Operation of Business. LDSR has the corporate power and authority to own and operate its properties and to carry
on its business as now being conducted. LDSR has the corporate authority to enter into, execute, and deliver this Agreement, and
the agreements referred to herein, and to consummate the transactions contemplated hereunder.

 

    	 	12	 

     

    

 

9.2.2.
Execution of Agreement. LDSR has the requisite corporate power and authority to enter into and carry out the terms
and conditions of this Agreement and each of the Concurrent Agreement to which it is a party, as well as all transactions contemplated
hereunder. All corporate proceedings have been taken and all corporate authorizations have been secured which are necessary to
authorize the execution, delivery and performance by LDSR of this Agreement, and each of the Concurrent Agreements to which it
is a party. This Agreement has been duly and validly executed and delivered by LDSR and constitutes the valid and binding obligations
of LDSR, enforceable in accordance with the respective terms.

 

9.3
Effect of Agreement. As of the Closing, the consummation by LDSR of the transactions herein contemplated, including
the execution, delivery and consummation of this Agreement, will not:

 

(a)
Violate any Requirement of Law applicable to or binding upon LDSR;

 

(b)
Violate (i) the terms of the Articles of Incorporation or Bylaws of LDSR; or, (ii) any material agreement, contract, mortgage,
indenture, bond, bill, note, or other material instrument or writing binding upon LDSR or to which LDSR is subject; or

 

(c)
Accelerate or constitute an event entitling the holder of any indebtedness of LDSR to accelerate the maturity of such indebtedness;
or

 

(d)
Result in the breach of, constitute a default under, constitute an event which with notice or lapse of time, or both, would become
a default under, or result in the creation of any lien, security interest, charge or encumbrance upon any part of the assets of
LDSR or any other assets of LDSR under any agreement, commitment, contract (written or oral) or other instrument to which LDSR
is a party, or by which any of its assets (or any part thereof) is bound or affected.

 

9.4
Investigation. On or prior to the Closing, will have had the opportunity to investigate the books, records, and
the Financial Statements of ArcMail. As of the Closing, LDSR will consummate the transactions envisioned hereunder based upon
its own independent investigation and evaluation of the Business and its prospects, and the covenants, representations, and warranties
of ArcMail set forth herein. LDSR is expressly not relying on any oral representations made by ArcMail with regard to the Business.

 

X

INDEMNIFICATION

 

10.1
ArcMail Obligations. ArcMail agrees to defend, indemnify and hold LDSR, its affiliates and their respective directors,
officers, employees and agents and their respective successors, heirs and assigns, harmless from and against any losses, costs,
claims, damages, liabilities or expenses (including reasonable attorneys’ and professional fees and other expenses of litigation)
(collectively, “Liabilities”) arising out of or in connection with third party claims, suits, actions, demands
or judgments relating to (i) all Liabilities of ArcMail arising or accruing prior to the Closing Date; (ii) all Liabilities of
ArcMail arising or accruing after the Closing Date and not otherwise the obligation of LDSR hereunder; (iii) as a result of a
material breach by ArcMail of any of its representations and warranties made hereunder; or, (iv) as a result of any other material
breach by ArcMail of this Agreement.

 

10.2
LDSR Obligations. LDSR agrees to defend, indemnify and hold ArcMail, its affiliates and their respective directors,
officers, employees and agents and their respective successors, heirs and assigns, harmless from and against any Liabilities arising
out of or in connection with third party claims, suits, actions, demands or judgments relating to (i) all Liabilities of LDSR
not otherwise provided for hereunder; (ii) the use of the Exclusive License pursuant to this Agreement; (iii) as a result of a
breach by LDSR of any of its representations and warranties made hereunder; or, (iv) as a result of a material breach by LDSR
of any other provision of this Agreement.

 

    	 	13	 

     

    

 

10.3
Procedure. In the event that a Party (an “Indemnitee”) intends to claim indemnification under
this Article X, such Party shall promptly notify the indemnifying Party of any Liability in respect of which the Indemnitee intends
to claim such indemnification, and the indemnifying Party shall assume the defense thereof with mutually satisfactory counsel.
However, an Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying
Party, if representation of such Indemnitee by the counsel retained by the indemnifying Party would be inappropriate due to actual
or potential differing interests between such Indemnitee and any other party represented by such counsel in such proceedings.
The Indemnitee under this Article X shall cooperate fully with the indemnifying Party and its legal representatives in the investigation
of any Liability covered by this Agreement.

 

XI

ADDITIONAL
AGREEMENTS AND OBLIGATIONS

 

11.1
Best Efforts. Each Party hereby agrees to use their respective best efforts to perform the duties delegated to it
pursuant to this Agreement, taking all reasonable, ordinary and necessary measures to ensure an orderly and smooth relationship
under this Agreement, and further agree to work together and negotiate in good faith to resolve any differences or problems which
may arise in the future. However, the obligations under this Section 11.1 shall not include any obligation to incur substantial
expense or liability.

 

11.2
Audit Rights. Each Party shall permit accountants retained by that Party to have access to its records and books
for the sole purpose of verifying information provided by one Party to the other. Such examination shall be conducted during regular
business hours and upon reasonable notice, at the requesting Party’s own expense and no more than four (4) times in each
calendar year during the term of this Agreement, and once during the three (3) calendar years following the termination hereof.

 

11.3
Post-Closing Business. ArcMail hereby agrees that, except as otherwise consented to in writing by LDSR or otherwise
expressly permitted hereunder or under the Concurrent Agreements, at all times after the Closing:

 

(a)
ArcMail will carry on the Business in a manner consistent with this Agreement, and will use its best efforts to preserve its business
organization intact, and to keep available the services of all of its present employees, agents, and representatives.

 

(b)
No change will be made in the authorized or issued capital stock of ArcMail, nor shall any rights, warrants, or options relating
thereto be issued inconsistent with the transactions contemplated hereunder.

 

(c)
No dividend or other distribution will be declared, set aside, or paid on or in respect of the common capital stock of ArcMail,
nor will ArcMail directly redeem, retire, purchase, or otherwise reacquire any of its stock.

 

(d)
ArcMail will not sell or otherwise dispose of any of the Business Assets or any other properties or assets, purchase or otherwise
acquire any properties or assets, incur any liabilities or enter into any transactions, outside of the ordinary course of the
ArcMail Business, except with the express written consent of LDSR.

 

    	 	14	 

     

    

 

(e)
From and after the Closing, ArcMail will permit LDSR and its duly authorized agents to have reasonable access to the offices,
properties, books, and records of ArcMail for the purpose of investigating the business and examining the records of ArcMail,
verifying the representations made in this Agreement and the performance of the conditions set forth in this Agreement, consistent
with the provisions of 11.2, herein.

 

XII

NOTICES

 

All
notices, requests, demands, and other communications required or permitted to be given hereunder shall be effected pursuant to
Section 13.15, below, as follows:

 

	If
    to LDSR: 	With
a copy to:
		Mr.
    Keith A. Rosenbaum, Esq.
		SPECTRUM
    LAW GROUP, APC, INC.
		23
    Corporate Plaza, Suite 150., Suite
	    	Newport
Beach, California 92660,
	 	keith@spectrumlawgroup.com
	 	 
	If to ArcMail:	 With a Copy to:
		Mr.
    Michael P. Mangan, Esq.
		Mangan
    Ginbserg, LLP, INC.
		80
    Maiden Lane, Suite 304.
	 	New
York, New York 10038
	 	mpm@mangan-ginsberg.com
		____,

 

XIII

ADDITIONAL
PROVISIONS

 

13.1
Executed Counterparts. This Agreement may be executed in any number of counterparts, when taken together shall be
considered one and the same agreement, it being understood that all Parties need not sign the same counterpart. In the event that
any signature is delivered by Fax or by E-Mail, such signature shall create a valid and binding obligation of that Party (or on
whose behalf such signature is executed) with the same force and effect as an original thereof. Any photographic, photocopy, or
similar reproduction copy of this Agreement, with all signatures reproduced on one or more sets of signature pages, shall be considered
for all purposes as if it were an executed counterpart of this Agreement.

 

13.2
Entire Agreement. This Agreement, and all references, documents, or instruments referred to herein, contains the
entire agreement and understanding of the Parties in respect to the subject matter contained herein. The Parties have expressly
not relied upon any promises, representations, warranties, agreements, covenants, or undertakings, other than those expressly
set forth or referred to herein. This Agreement supersedes (i) any and all prior written or oral agreements, understandings, and
negotiations between the Parties with respect to the subject matter contained herein; and, (ii) any course of performance and/or
usage of the trade inconsistent with any of the terms hereof.

 

    	 	15	 

     

    

 

13.3
Severability. Each and every provision of this Agreement is severable and independent of any other term or provision
of this Agreement. If any term or provision hereof is held void or invalid for any reason by a court of competent jurisdiction,
such invalidity shall not affect the remainder of this Agreement.

 

13.4
Governing Law. This Agreement shall be governed by the laws of the State of North Carolina, without giving effect
to any choice or conflict of law provision or rule (whether of the State of North Carolina or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of North Carolina. If any court action is necessary
to enforce the terms and conditions of this Agreement, the Parties hereby agree that Wake County Superior Court, Raleigh, North
Carolina, shall be the sole jurisdiction and venue for the bringing of such action.

 

13.5
Enforcement. The Parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, it is agreed
that the Parties shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement, this being in addition to any other remedy to which they are entitled at law or in
equity. The remedies of the Parties under this Agreement are cumulative and shall not exclude any other remedies to which any
person may be lawfully entitled.

 

13.6
Waiver. No failure by any Party to insist on the strict performance of any covenant, duty, agreement, or condition
of this Agreement or to exercise any right or remedy on a breach shall constitute a waiver of any such breach or of any other
covenant, duty, agreement, or condition.

 

13.7
Recovery of Fees by Prevailing Party. In the event of any legal action (including arbitration) to enforce or interpret
the provisions of this Agreement, the non-prevailing Party shall pay the reasonable attorneys’ fees and other costs and
expenses including expert witness fees of the prevailing Party in such amount as the court shall determine.

 

13.8
Recitals. The facts recited in Article II, above, are hereby conclusively presumed to be true as between and affecting
the Parties.

 

13.9
Amendment. This Agreement may be amended or modified only by a writing signed by all Parties.

 

13.10
Successors and Assigns. Except as expressly provided in this Agreement, each and all of the covenants, terms, provisions,
conditions, and agreements herein contained shall be binding upon and shall inure to the benefit of the successors and assigns
of the Parties.

 

13.11
Assignability. Except as otherwise provided for herein, this Agreement is not assignable by either Party without
the expressed written consent of all Parties.

 

13.12
Provision Not Construed Against Party Drafting Agreement. This Agreement is the result of negotiations by and between
the Parties, and each Party has had the opportunity to be represented by independent legal counsel of its choice. This Agreement
is the product of the work and efforts of all Parties, and shall be deemed to have been drafted by all Parties. In the event of
a dispute, no Party shall be entitled to claim that any provision should be construed against any other Party by reason of the
fact that it was drafted by one particular Party.

 

    	 	16	 

     

    

 

13.13
Agreement Provisions, Exhibits, and Schedules. When a reference is made in this Agreement to an Article, Section,
Subsection, Exhibit, or Schedule, such reference shall be to said item of this Agreement unless otherwise indicated. The Exhibits
and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof as if set out in full herein.

 

13.14
Further Assurances. Each Party agrees (i) to furnish upon request to each other Party such further information;
(ii) to execute and deliver to each other Party such other documents; and, (iii) to do such other acts and things, all as another
Party may reasonably request for the purpose of carrying out the intent of this Agreement and the transactions envisioned hereunder.
However, this provision shall not require that any additional representations or warranties be made and no Party shall
be required to incur any material expense or potential exposure to legal liability pursuant to this Section 13.14.

 

13.15
Notices. 

 

13.15.1.
Method and Delivery. All notices, requests and demands hereunder shall be in writing and delivered by hand, by Electronic
Transmission, by mail, or by recognized commercial over-night delivery service (such as Federal Express or UPS), and shall be
deemed given (a) if by hand delivery, upon such delivery; (b) if by Electronic Transmission, upon telephone confirmation of receipt
of same; (c) if by mail, forty-eight (48) hours after deposit in the United States mail, first class, registered or certified
mail, postage prepaid; or, (d) if by recognized commercial over-night delivery service, upon such delivery.

 

13.15.2.
Consent to Electronic Transmission. Each Party hereby expressly consents to the use of Electronic Transmission for
communications and notices under this Agreement. For purposes of this Agreement, “Electronic Transmission” means a
communication (i) delivered by Fax or E-Mail when directed to the Fax number or E-Mail address, respectively, for that recipient
on record with the sending Party; and, (ii) that creates a record that is capable of retention, retrieval, and review, and that
may thereafter be rendered into clearly legible tangible form.

 

13.15.3.
Address Changes. Any Party may alter the Fax number, E-Mail address, physical address, or postage address to which
communications or copies are to be sent by giving notice of such change of address to the other Parties in accordance with the
provisions of this Section 13.18.

 

13.16
Definitional Provisions. For purposes of this Agreement, (i) those words, names, or terms which are specifically
defined herein shall have the meaning specifically ascribed to them; (ii) wherever from the context it appears appropriate, each
term stated either in the singular or plural shall include the singular and plural; (iii) wherever from the context it appears
appropriate, the masculine, feminine, or neuter gender, shall each include the others; (iv) the words “hereof”, “herein”,
“hereunder”, and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and
not to any particular provision of this Agreement; (v) all references to “Dollars” or “$” shall be construed
as being United States Dollars; (vi) the term “including” is not limiting and means “including without limitation”;
and, (vii) all references to all statutes, statutory provisions, regulations, or similar administrative provisions shall be construed
as a reference to such statute, statutory provision, regulation, or similar administrative provision as in force at the date of
this Agreement and as may be subsequently amended.

 

    	 	17	 

     

    

 

XIV

EXECUTION

 

IN
WITNESS WHEREOF, this Agreement has been duly executed by the Parties in Wake County, North Carolina, and shall be effective
as of and on the Effective Date. Each of the Parties hereby represents and warrants that it (i) has the requisite power and authority
to enter into and carry out the terms and conditions of this Agreement, as well as all transactions contemplated hereunder; and,
(ii) it is duly authorized and empowered to execute and deliver this Agreement. 

 

	ARCMAIL:	 	LDSR:
	 	 	 
	WALA,
    INC.,	 	LANDSTAR,
    INC.,
	a
    Louisiana corporation	 	a
    Nevada corporation
	 	 	 
	BY:	            	 	BY:
    	                    
	 	 	 	 	 
	NAME:
    		 	NAME:
    	
	 	 	 	 	 
	TITLE:
    		 	TITLE:
    	
	 	 	 	 	 
	DATED:
    		 	DATED:
    	

 

WELCH,
as to those provisions requiring his agreement:

 

	            	 	                                                         
	RORY
    WELCH	 	 
	 	 	 
	DATED: 		 	 

 

    	 	18

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