Document:

Exhibit 10.1 

 

ASSET PURCHASE AGREEMENT

 

This
Asset Purchase Agreement (“Agreement”) is entered into as of February 17, 2016, by and among KeepItSafe, Inc.,
a Delaware corporation (“Buyer”), VaultLogix, LLC, a Delaware limited liability company, Data Protection Services,
L.L.C., a Delaware limited liability company, and U.S. Data Security Acquisition, LLC, a Delaware limited liability company (each
a “Seller”, and collectively “Sellers”), and each individual owner of interests in Sellers
as set forth on the signature page to this Agreement (each an “Owner,” and collectively, the “Owners”).
In this Agreement, each of Sellers, Owners and Buyer is sometimes called a “Party,” and together, “Parties.

 

INTRODUCTION

 

This
Agreement contemplates a transaction in which Buyer will purchase substantially all of the Assets (as defined below) and the on-going
online data backup business (the “Business”) of Sellers.

 

NOW,
THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Agreement and other
good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Capitalized
terms used herein shall have the meanings set forth in Schedule I attached hereto.

 

ARTICLE
II

PURCHASE AND SALE

 

2.1Purchase
and Sale of Assets.

 

(a)Upon
and subject to the terms and conditions of this Agreement, at the Closing, Buyer shall purchase from Sellers, and Sellers shall
sell, transfer, convey, assign and deliver to Buyer, free and clear of any Encumbrances, all of Sellers’ right, title and
interest in and to all of Sellers’ assets, tangible and intangible, of every kind and description, wherever located, including,
without limitation, the following (but excluding the Excluded Assets set forth in Section 2.1(b)) (collectively, the “Assets”):

 

i.all
of the Sellers’ right, title and interest to the products, services and other assets listed on Schedule 2.1(a)(i)
of the Disclosure Schedule;

 

ii.all
of the intangible rights and property of Sellers including Intellectual Property Assets, going concern value, goodwill (including,
but not limited to, the goodwill associated with all trademarks transferred hereby), marketing materials, telephone, facsimile,
websites, social media accounts, Twitter handles, Facebook pages (content and URL) and all related content, domain names set forth
in Schedule 2.1(a)(ii) of the Disclosure Schedule, trade names, help manuals, e-mail addresses and any other information
developed or acquired by Sellers and used for the operation of the Business;

 

iii.all
of Sellers’ right, title and interest in the following (collectively, the “Assigned Contracts”): (A)
the customer and reseller accounts of Sellers listed in Schedule 2.1(a)(iii)(A) of the Disclosure Schedule (the “Customer
Contracts”), (B) all Seller Contracts listed in Schedule 2.1(a)(iii)(B) of the Disclosure Schedule, and (C) all
outstanding offers or solicitations made by or to Sellers to enter into any Contract, excluding the Excluded Contracts;

 

     

     

    

 

iv.all
Accounts Receivable;

 

v.all
Governmental Authorizations or permits necessary to operate the Business; and

 

vi.all
books, records, accounts, ledgers, files, documents, correspondence, advertising and promotional materials, studies, reports and
other printed or written materials relating to the Business.

 

Notwithstanding
the foregoing, the transfer of the Assets pursuant to this Agreement shall not include the assumption of any liability related
to the Assets unless Buyer expressly assumes that liability pursuant to Section 2.2(a).

 

Notwithstanding
anything in this Agreement to the contrary, no Assigned Contract that is not capable of being delegated, assigned or transferred
to Buyer without the Consent of a third party, or under which any actual or purported delegation, assignment, transfer to Buyer
would constitute a violation, breach or default under the terms of the Assigned Contract, shall be delegated, assigned or transferred
to Buyer without having first obtained such required Consent. To the extent such Consents are not obtained and in full force and
effect as of the Closing Date, Sellers shall cooperate with Buyer (i) to establish lawful arrangements which result in the benefits
and obligations under such Assigned Contracts apportioned in a manner consistent with the purpose and intention of this Agreement
and (ii) if so requested by Buyer and at Sellers’ expense, to obtain any such Consents, and enforce Sellers’ rights
under such Assigned Contracts on behalf and for the benefit of, and as directed by, Buyer.

 

(b)Notwithstanding
anything to the contrary contained in Section 2.1 or elsewhere in this Agreement, the following assets of Sellers (collectively,
the “Excluded Assets”) are not part of the sale and purchase contemplated hereunder, are excluded from the
Assets and shall remain the property of Sellers after the Closing:

 

i.all
cash and cash equivalents, bank accounts and deposits therein;

 

ii.all
minute books, Equity Interest records, and corporate seals;

 

iii.the
Equity Interests;

 

iv.all
insurance policies and rights thereunder;

 

v.all
Seller Contracts other than the Assigned Contracts, including those listed in Schedule 2.1(b)(v) of the Disclosure Schedule
(collectively, the “Excluded Contracts”);

 

vi.all
personnel records and other employee records;

 

vii.all
claims for refund of Taxes and other governmental charges of whatever nature;

 

viii.all
rights in connection with and assets of the Seller Benefit Plans;

 

ix.all
rights of Sellers under this Agreement; and

 

x.the
assets expressly identified in Schedule 2.1(b)(x) of the Disclosure Schedule.

 

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2.2Assumption
of Liabilities.

 

(a)From
and after the Closing, Buyer shall assume and become responsible for (i) obligations of Sellers arising after the Closing under
the Assigned Contracts, but excluding any such obligations and liabilities if they relate to breaches of, or defaults under, the
Assigned Contracts on or prior to the Closing or arising from facts or conditions (other than the existence of the Assigned Contracts)
existing on or before the Closing, and (ii) Post-Closing Apportioned Obligations allocated to Buyer pursuant to Section 6.1(c)
(collectively, the “Assumed Liabilities”).

 

(b)Buyer
shall not assume or become responsible for, and the Sellers shall remain liable for, any and all liabilities or obligations of
the Sellers which are not Assumed Liabilities, including but not limited to all Sellers’ employee liabilities or obligations
(collectively, the “Retained Liabilities”).

 

2.3Purchase
Price. The consideration for the Assets (the “Purchase Price”) will be Twenty Four Million Dollars ($24,000,000)
minus the Adjustment Amount, if any. The Purchase Price will be subject to adjustment as follows, and as determined as of the
close of business on the Closing Date and according to the adjustment procedures set forth in Section 2.6 below:

 

(a)[Intentionally
Omitted]

 

(b)downward
adjustment on a dollar-for-dollar basis (the “Receivables Adjustment”) to the extent any Account Receivable
included in the Assets has been outstanding more than ninety (90) days as of the Closing Date (such amount, the “Aged
Receivables”); provided, however, that any Aged Receivables received by any Seller or Buyer within one hundred and eighty
(180) days of the Closing Date shall be transferred immediately to Owner and become the property of Owner; and

 

(c)downward
adjustment on a dollar-for-dollar basis for Prepaid Amounts (the “Prepaid Adjustment” and, together with the
Receivables Adjustment, the “Adjustment Amount”).

 

The
Purchase Price shall be paid to Sellers as follows: (a) Twenty Two Million Dollars ($22,000,000) less the Estimated Adjustment
Amount (the “Closing Payment”) shall be paid on the Closing Date by wire transfer of immediately available
funds to a bank account designated by Sellers in a written notice delivered to Buyer at least five (5) days prior to the Closing
Date; and (b) Two Million Dollars ($2,000,000) (the “Holdback Amount”) will be retained by Buyer in an escrow
account to provide a ready source of funds to secure the performance of Sellers’ and Owners’ obligations under this
Agreement, including but not limited to indemnification obligations set forth in Section 5.2 and any obligation of Sellers to
make a payment under Section 2.6(c)i. Buyer shall release the Holdback Amount, less Buyer’s good faith estimate of the amount
required to cover any claims Buyer has under Sections 5.2 or 2.6(c)i, within five (5) business days of such date that is twelve
(12) months after the Closing Date (the “Holdback Disbursement Date”). Any portion of the Holdback Amount that
Buyer retains pursuant to this Section 2.3 following the Holdback Disbursement Date which is not applied to obligations under
Sections 5.2 or 2.6(c)i shall be paid over to Sellers upon Buyer’s good faith determination that such funds will not be
needed with respect to such claims. The Parties acknowledge and agree that any interest earned on the Holdback Amount on or prior
to the Holdback Disbursement Date shall be reported for Tax purposes as income of Sellers, notwithstanding that such interest
ultimately may be released to Buyer in partial satisfaction of Sellers’ and Owners’ obligations hereunder.

 

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2.4The
Closing. The closing of the transaction contemplated by this Agreement (the “Closing”) shall take place
at the offices of j2 Global, Inc., 6922 Hollywood Blvd., 5th Floor, Los Angeles, California, on the date of this Agreement
(the “Closing Date”) or at such other place as Sellers, Owners and Buyer agree. For purposes of calculating
the Adjustment Amount, the Closing shall be deemed to occur as of the close of business on the Closing Date.

 

2.5Closing
Obligations. In addition to any other documents to be delivered under other provisions of this Agreement, at the Closing:

 

(a)Sellers
and Owners, as the case may be, shall deliver or cause to be delivered to Buyer:

 

i.a
bill of sale for all of the Assets in the form of Exhibit A, executed by Sellers (the “Bill of Sale”);

 

ii.an
assignment of all the Assumed Liabilities the form of Exhibit B, which assignment shall also contain Buyer’s undertaking
and assumption of the Assumed Liabilities (the “Assignment and Assumption Agreement”), executed by Sellers;

 

iii.an
assignment of all Intellectual Property Assets, and separate confirmatory assignments of all registered Marks, Patents and Copyrights
in the form of Exhibit C, executed by Sellers (the “Assignment of Intellectual Property Assets”);

 

iv.such
other bills of sale, assignments, certificates of title, documents and other instruments of transfer and conveyance as may reasonably
be requested by Buyer, each in form and substance reasonably satisfactory to Buyer and their legal counsel and executed by Sellers;

 

v.non-competition
agreements in the form of Exhibit D (the “Noncompetition Agreements”), executed by each Seller and each
Owner. The Noncompetition Agreements are a material part of the consideration bargained for by Buyer in order to enter into this
Agreement and each Seller and each Owner is willing to enter into the Noncompetition Agreements;

 

vi.transition
services agreement in the form of Exhibit E (the “Transition Services Agreement”), executed by Sellers
and the individuals named on the signature page thereto;

 

vii.all
Consents and any approvals or other authorizations of any Governmental Authority relating to the transfer of any of Sellers’
Governmental Authorizations to Buyer necessary to complete the Contemplated Transactions, and all Consents necessary for the assignment
of the Assigned Contracts;

 

viii.a
certificate of the managing member of each Seller and Owner in the Form of Exhibit F (A) certifying, as complete and accurate
as of the Closing, attached copies of the Organizational Documents of such Seller or Owner, (B) certifying and attaching all requisite
resolutions or actions of such Seller’s or Owner’s directors and shareholders approving the execution and delivery
of this Agreement, and the consummation of the Contemplated Transactions, and (C) certifying to the incumbency and signatures
of the authorized representatives of such Seller or Owner executing this Agreement and any other document relating to the Contemplated
Transactions (the “Seller’s Secretary’s Certificate”);

 

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ix.Customer
list, reseller list, customer data and reseller data (including name, email address, address, phone, billing information) relating
to the Business in Excel format with respect to all Customer Contracts;

 

x.the
Estimated Adjustment Amount;

 

xi.all
software used in the Business, including all documentation;

 

xii.copies
of website and contents, all databases and their contents, all customer email accounts and their content, all applications and
their source code;

 

xiii.the
Financial Statements;

 

xiv.Commitment
Letter executed by Tim Hannibal;

 

xv.Escrow
Agreement;

 

xvi.Release
documents from the holders of any Encumbrances on the Assets;

 

xvii.all
credit card information relating to each Customer Contract, including, full name on credit card, card number, expiration date,
security number and evidence that the customer agreed to pay by credit card, in Excel format; and

 

xviii.a
certificate from Sellers in the applicable form specified in Treasury Regulations Section 1.1445-2.

 

(b)Buyer
shall deliver to Sellers and Owners, as the case may be:

 

i.the
Closing Payment in accordance with Section 2.3;

 

ii.the
Assignment and Assumption Agreement executed by Buyer;

 

iii.the
Noncompetition Agreements executed by Buyer; and

 

iv.the
Transition Services Agreement executed by Buyer.

 

2.6Adjustment
Amount.

 

(a)At
least three (3) days prior to the Closing, Sellers shall deliver to Buyer a statement setting forth in reasonable detail Sellers’
good faith estimate of the Adjustment Amount (the “Estimated Adjustment Amount”) as of the Closing Date, which
statement shall be substantially in the form of Schedule 2.6(a) of the Disclosure Schedule attached hereto.

 

(b)
Within sixty (60) days after the Closing Date, Buyer shall deliver to Sellers a balance sheet and income statement of the Business
dated as of the Closing Date and prepared in accordance with GAAP (the “Closing Date Financial Statements”)
and a calculation of the Adjustment Amount and each component thereof (i.e., the Receivables Adjustment and the Prepaid Adjustment),
together with reasonable supporting documentation. The Adjustment Amount so delivered by Buyer shall become final for all purposes
of this Agreement unless, within fourteen (14) days after the receipt of such calculation by Sellers, Buyer receives written notice
of the Sellers’ disapproval of such calculation along with Sellers’ determination of the final Adjustment Amount and
a detailed explanation as to the reasons for such disapproval. If Buyer and Sellers are unable to agree on the final Adjustment
Amount within thirty (30) days after such notice is delivered, they shall submit the issues remaining in dispute to a certified
public accounting firm of national standing in the industry in which Buyer and Sellers principally operate (the “Independent
Accountants”) for resolution. If issues are submitted to the Independent Accountants for resolution, (a) Sellers and
Buyer shall furnish or cause to be furnished to the Independent Accountants such work papers and other documents and information
relating to the disputed issues as the Independent Accountants may request and are available to that party or its agents and shall
be afforded the opportunity to present to the Independent Accountants any material relating to the disputed issues and to discuss
the issues with the Independent Accountants; (b) the determination by the Independent Accountants, as set forth in a notice to
be delivered to both Sellers and Buyer within sixty (60) days of the submission to the Independent Accountants of the issues remaining
in dispute, shall be final, binding and conclusive on the Parties; and (c) Buyer and Sellers will each bear fifty percent (50%)
of the fees and costs of the Independent Accountants for such determination.

 

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(c)No
later than five (5) days following the final determination of the Adjustment Amount (the “Final Adjustment Amount”),
the following payments will be made:

 

i.in
the event that the Final Adjustment Amount is greater than the Estimated Adjustment Amount, Buyer will retain from the Holdback
Amount an amount equal to the difference between the Final Adjustment Amount and the Estimated Adjustment Amount; and

 

ii.in
the event that the Final Adjustment Amount is less than the Estimated Adjustment Amount, Buyer will pay to Sellers, in cash, the
amount equal to the difference between the Estimated Adjustment Amount and the Final Adjustment Amount.

 

2.7Further
Assurances. At any time and from time to time after the Closing and without further consideration:

 

(a)Sellers
shall, at the request of the Buyer, promptly execute and deliver such instruments of sale, transfer, conveyance, assignment and
confirmation, and take all such other action as the Buyer may reasonably request, including giving notices to and obtaining all
Consents with respect to Assigned Contracts, to more effectively transfer, convey and assign to the Buyer, and to confirm the
Buyer’s title to, all of the Assets, to put the Buyer in actual possession and operating control of the Business and the
Assets, and to carry out the purpose and intent of this Agreement;

 

(b)Buyer
shall, at the request of the Sellers, provide any records relating to activities of the Sellers included in the Assets to the
Sellers for any financial, tax or other purpose relating to the Sellers’ discontinuance of the Business.

 

2.8Allocation.
Following the Closing Date, Buyer shall obtain an appraisal (the “Appraisal”) of the Assets for Buyer’s
GAAP-based accounting purposes. Within ninety (90) days following receipt of the Appraisal, Buyer will deliver to Sellers an allocation
of the Purchase Price plus the Assumed Liabilities and other applicable amounts (reduced by the amount required to be treated
as unstated interest or original issue discount) among the Assets in a manner which is consistent with the Appraisal and in conformance
with Section 1060 of the Internal Revenue Code (and any similar provision of state, local or foreign law, as appropriate) (the
“Purchase Price Allocation”). Each Party agrees to file IRS Form 8594, and all federal, state, local and foreign
Tax Returns, in a manner that is consistent with the Purchase Price Allocation and to take no position for Tax purposes inconsistent
therewith.

 

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ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF SELLERS AND OWNERS

 

Each
Seller and each Owner represent and warrant to Buyer as follows:

 

3.1Organization
and Good Standing.

 

(a)Each
Seller is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of Delaware,
with full corporate power and authority to conduct its business as it is now being conducted, to own or use the assets that it
purports to own or use, and to perform all its obligations under all Seller Contracts. Each Seller is duly qualified to do business
as a foreign limited liability company and is in good standing under the laws of each state or other jurisdiction in which the
nature of the activities conducted by it requires such qualification.

 

(b)Each
Seller has delivered to Buyer copies of the Organizational Documents of such Seller, as currently in effect. Each Seller is not
in breach of any provision of its Organizational Documents. There is no pending or threatened action (or basis therefor) for the
dissolution, liquidation or insolvency of any Seller.

 

3.2Authority;
No Conflict.

 

(a)This
Agreement constitutes the legal, valid and binding obligation of each Seller, enforceable against such Seller in accordance with
its terms. Upon the execution and delivery by each Seller of all agreements and certificates to be executed or delivered by each
Seller at the Closing (collectively, the “Sellers’ Closing Documents”), each of Sellers’ Closing
Documents will constitute the legal, valid and binding obligation of the applicable Seller, enforceable against such Seller in
accordance with its terms. Each Seller has the absolute and unrestricted right, power and authority to execute and deliver this
Agreement and the applicable Sellers’ Closing Documents, and to perform its obligations under this Agreement and the Sellers’
Closing Documents, and such action has been duly authorized by all necessary action by such Seller’s directors and shareholders.

 

(b)Neither
the execution and delivery of this Agreement, the assignment of the Assets to Buyer, nor the consummation or performance of any
of the Contemplated Transactions will, directly or indirectly (with or without notice or lapse of time):

 

i.contravene,
conflict with, or result in a violation of (A) any provision of the Organizational Documents of any Seller, or (B) any
resolution adopted by the members of any Seller;

 

ii.contravene,
conflict with, or result in a violation of, or give any Governmental Body or other Person the right to challenge any of the Contemplated
Transactions or to exercise any remedy or obtain any relief under, any Legal Requirement or any Order to which any Seller, or
any of the assets owned or used by any Seller, may be subject;

 

iii.contravene,
conflict with, or result in a violation of any of the terms or requirements of, or give any Governmental Body the right to revoke,
withdraw, suspend, cancel, terminate, or modify, any Governmental Authorization that is held by any Seller or that otherwise relates
to the Business or any of the assets owned or used by any Seller;

 

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iv.cause
any of the Assets to be reassessed or revalued by any taxing authority or other Governmental Body;

 

v.contravene,
conflict with, or result in a violation or breach of any provision of, or give any Person the right to declare a default or exercise
any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate, or modify, any Assigned Contract;
or

 

vi.result
in the imposition or creation of any Encumbrance upon or with respect to any of the assets owned or used by any Seller.

 

(c)No
Seller is or will be required to give any notice to or obtain any Consent from any Person in connection with the execution and
delivery of this Agreement, the assignment of Assets to Buyer, or the consummation or performance of any of the Contemplated Transactions.

 

3.3Ownership.
Owners are, and will be on the Closing Date, the record and only owners of shares of capital stock of each Seller and the beneficial
owners and holders of any and all shares of capital stock in each Seller (the “Equity Interests”), free and
clear of all Encumbrances, except as set forth on Schedule 3.3 of the Disclosure Schedule. The Equity Interests have been
duly authorized and are validly issued, fully paid, and non-assessable. The Equity Interests represent the only ownership interests
in each Seller. There are no pending Contracts relating to the issuance, sale, or transfer of the Equity Interests. None of the
Equity Interests or other previous ownership interests or securities of any Seller were issued in violation of the Securities
Act or any other Legal Requirement.

 

3.4Financial
Statements. Each Seller has delivered to Buyer, as set forth in Schedule 3.4 of the Disclosure Schedule, (a) an unaudited
balance sheet of such Seller as of December 31, 2015 (the “Balance Sheet”), and the related unaudited statements
of income, changes in members’ equity and cash flows for the fiscal year ended December 31, 2015 (collectively, the “Financial
Statements”). The Financial Statements (a) have been prepared in accordance with GAAP; (b) have been prepared in accordance
with the methodology by which each Seller has historically kept and maintained its financial records; and (c) fairly present the
financial condition and the results of operations, changes in members’ equity and cash flows of such Seller for the periods
referred to in the Financial Statements. The Financial Statements reflect the consistent application of such accounting principles
throughout the periods involved, except as disclosed in the notes to the Financial Statements. Since the Balance Sheet, no Seller
has effected any change in any method of accounting or accounting practice, except for any such change required because of a concurrent
change in GAAP.

 

3.5Books
and Records. The books of account and all other records of each Seller, all of which have been made available to Buyer, are
complete and correct and have been maintained in accordance with sound business practices.

 

3.6Sufficiency
of Assets.

 

(a)The
Assets constitute all of the assets, tangible and intangible, of any nature whatsoever, necessary to operate the Business in the
manner presently operated by each Seller. Each tangible Asset is in good repair and good operating condition, ordinary wear and
tear excepted, is suitable for immediate use in the Ordinary Course of Business and is free from latent and patent defects.

 

(b)The
drawings and photographs set forth in Schedule 3.6(b) of the Disclosure Schedule constitute a complete and accurate schematic
diagram of the System.

 

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3.7Title
to Assets; No Encumbrances; Deferred Obligations.

 

(a)Each
Seller owns all the good and transferable title to the assets (whether tangible or intangible), including without limitation the
Assets, that it purports to own as reflected in the books and records of such Seller, including all of the assets reflected in
the Financial Statements, free and clear of any Encumbrances. At the time of Closing, except as set forth on Schedule 3.7(a)(i),
all Assets shall be free and clear of any Encumbrances. Assuming the Closing shall have occurred, all Assets shall be free and
clear of any Encumbrances. No Seller owns any real property, excepting only leasehold interests set forth in Schedule 3.7(a)(ii)
of the Disclosure Schedule. Except as set forth on Schedule 3.7(a)(iii) of the Disclosure Schedule, all of such leases
are enforceable against the applicable Seller, and, to each Seller's Knowledge, the applicable counter-parties (and their successors).

 

(b)Schedule
3.7(b) of the Disclosure Schedule lists all of the assets purchased or otherwise acquired by each Seller since the date of
the Balance Sheet.

 

(c)Except
as set forth in Schedule 3.7(c) of the Disclosure Schedule, no Seller has any obligation to perform services following
the Closing Date that have been paid for as of, or prior to, the Closing Date.

 

3.8Accounts
Receivable. All accounts receivable of each Seller that are reflected on the Financial Statements or on the accounting records
of such Seller as of the Closing Date (collectively, the “Accounts Receivable”) represent or will represent
valid obligations arising from sales actually made or services actually performed in Sellers’ Ordinary Course of Business.
Unless paid prior to the Closing Date, the Accounts Receivable are, or will be as of the Closing Date, Current and collectible.
Each of the Accounts Receivable either has been, or will be, collected in full, without any setoff, within 90 days after the day
on which it first becomes due and payable (such Account Receivable, “Current”). There is no contest, claim,
or right of setoff, other than returns in the Ordinary Course of Business, under any Contract with any obligor of an Account Receivable
relating to the amount or validity of such Account Receivable. Schedule 3.8 of the Disclosure Schedule contains a complete
and accurate list of all Accounts Receivable as of the date of the Balance Sheet, which list sets forth the aging of such Accounts
Receivable. In the event Buyer or any Seller receives payment for an Aged Receivable within one hundred and eighty (180) days
of the Closing Date, Buyer or such Seller shall promptly, but in no event later than ten (10) business days following the receipt
thereof, remit such amount to Owner and such amount will be the property of Owner.

 

3.9No
Undisclosed Liabilities. No Seller has any liabilities or obligations of any nature (whether known or unknown and whether
absolute, accrued, contingent, or otherwise), except for liabilities or obligations reflected or reserved against in the Financial
Statements and current liabilities incurred in the Ordinary Course of Business since the respective dates thereof.

 

3.10Compliance
with Legal Requirements; Governmental Authorizations. Each Seller is, and at all times since its formation has been, in material
compliance with each Legal Requirement that is or was applicable to it or to the conduct or operation of the Business or the ownership
or use of the Assets and no action is pending or, to the Knowledge of the Seller, threatened against Sellers or Owners alleging
any failure to so comply.

 

3.11Legal
Proceedings; Orders.

 

(a)There
is no pending Proceeding: (i) that has been commenced by or against any Seller or that otherwise relates to or may affect the
Business, or any of the Assets, or (ii) that challenges, or that may have the effect of preventing, delaying, making illegal,
or otherwise interfering with, any of the Contemplated Transactions.

 

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(b)(i)
no such Proceeding has been Threatened, and (ii) no event has occurred or circumstance exists that may give rise to or serve
as a basis for the commencement of any such Proceeding.

 

(c)No
Seller is subject to any Order.

 

3.12Absence
of Certain Changes and Events. Since the date of the Balance Sheet, each Seller has conducted business only in the Ordinary
Course of Business, and there has not been any:

 

(a)change
in such Seller’s issued Equity Interests; grant of options or right to purchase Equity Interests of Seller; issuance of
any security convertible stock interest; grant of any registration rights; purchase, redemption, retirement, or other acquisition
by such Seller of any Equity Interest; or declaration or payment of any dividend distribution or payment in respect of such Equity
Interest;

 

(b)amendment
to the Organizational Documents of such Seller;

 

(c)payment
or increase by such Seller of any bonuses, salaries, or other compensation to any Owner, director, officer, or employee or entry
into any employment, severance, or similar Contract with any Owner, director, officer, employee, consultant or contractor, each
of which is not within the Ordinary Course of Business;

 

(d)material
damage to or material destruction of or loss of any of the Assets, whether or not covered by insurance;

 

(e)sale
(other than sales of inventory in the Ordinary Course of Business), lease, or other disposition of any Asset or mortgage, pledge,
or imposition of any Encumbrance on any material asset or property of such Seller, including the sale, lease, or other disposition
of any of the Intellectual Property Assets;

 

(f)event,
occurrence or development that has had, or could reasonably be expected to have , individually or in the aggregate, a material
adverse effect;

 

(g)entry
into any Contract that would constitute a Material Contract;

 

(h)loan
to (or forgiveness of any loan to), or entry into any other transaction with, any directors, Owners, officers or employees of
the Business, other than as set forth on Schedule 3.12(h) of the Disclosure Schedule;

 

(i)adoption
of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing a petition in bankruptcy under any
provisions of federal or state bankruptcy law or consent to the filing of any bankruptcy petition against it under similar law;
or

 

(j)any
Contract to do any of the foregoing, or any action or omission that would result in any of the foregoing.

 

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3.13Contracts;
No Defaults.

 

(a)Schedule
3.13(a) of the Disclosure Schedule contains a complete and accurate list, and each Seller has delivered to Buyer true and
complete copies of (each, a “Material Contract”):

 

(i)each
Seller Contract that involves performance of services or delivery of goods or materials by Seller of an amount or value in excess
of $10,000;

 

(ii)each
Seller Contract that involves performance of services or delivery of goods or materials to Seller of an amount or value in excess
of $10,000;

 

(iii)each
Seller Contract that was not entered into in the ordinary course of business consistent with past practices and that involves
expenditures or receipts of the Seller in excess of $10,000;

 

(iv)each
lease, rental or occupancy agreement, license, installment and conditional sale agreement, and other Seller Contract affecting
the ownership of, leasing of, title to, use of, or any leasehold or other interest in, any real or personal property;

 

(v)each
licensing agreement or other Seller Contract with respect to patents, trademarks, copyrights, domain names or other intellectual
property, including agreements with current or former employees, consultants, or contractors regarding the appropriation or the
non-disclosure of any of the Intellectual Property Assets;

 

(vi)each
collective bargaining agreement and other Seller Contract to or with any labor union or other employee representative of a group
of employees;

 

(vii)each
joint venture, partnership, and other Seller Contract involving a sharing of profits, losses, costs, or liabilities by Seller
with any other Person;

 

(viii)each
Seller Contract containing covenants that in any way purport to restrict the business activity of Seller or limit the freedom
of Seller to engage in any line of business or to compete with any Person;

 

(ix)each
Seller Contract providing for payments to or by any Person based on sales, purchases, or profits, other than direct payments for
goods;

 

(x)each
power of attorney that is currently effective and outstanding;

 

(xi)each
confidentiality agreement;

 

(xii)each
Seller Contract entered into other than in the ordinary course of business consistent with past practices that contains or provides
for an express undertaking by Seller to be responsible for consequential damages;

 

(xiii)each
Seller Contract for capital expenditures in excess of $10,000;

 

(xiv)each
written warranty, guaranty, and or other similar undertaking with respect to contractual performance extended by the Company
other than in the ordinary course of business consistent with past practices; and each amendment, supplement, and
modification (whether oral or written) in respect of any of the foregoing.

 

    	 	- 11 -	 

     

    

 

Schedule
3.13(a) of the Disclosure Schedule sets forth reasonably complete details concerning such Seller Contracts, including the
parties to the Seller Contracts and the amount of the remaining commitment of the Company under the Seller Contracts.

 

(b)Each
Seller Contract identified or required to be identified in Schedule 3.13(a) of the Disclosure Schedule is in full force
and effect and is valid and enforceable in accordance with its terms.

 

(c)Each
Customer Contract:

 

i.conforms
to Seller’s standard form customer or reseller agreement, as applicable, true and complete copies of which are set forth
in Schedule 3.13(c)(i) of the Disclosure Schedule;

 

ii.is
in full force and effect and is valid and enforceable in accordance with its terms;

 

iii.will
not be breached as a result of the execution and delivery of this Agreement, the assignment of the Assets to Buyer, or consummation
of the Contemplated Transactions.

 

(d)Except
as set forth in Schedule 3.13(d) of the Disclosure Schedule:

 

i.no
Owners nor any Related Person of the Owners has, or may acquire, any rights under any Contract that relates to the Business, or
any of the Assets; and

 

ii.no
officer, director, Owner, agent, employee, consultant, or contractor of any Seller is bound by any Contract that purports to limit
the ability of such officer, director, Owner, agent, employee, consultant, or contractor to (A) engage in or continue any
conduct, activity, or practice relating to the business of such Seller, or (B) assign to such Seller or to any other Person
any rights to any invention, improvement, or discovery.

 

(e)Except
as set forth in Schedule 3.13(e) of the Disclosure Schedule:

 

i.Each
Seller is, and at all times has been, in compliance with all applicable terms and requirements of each Seller Contract; and

 

ii.No
Seller nor any Owner has given to or received from any other Person, at any time, any written notice or other written communication
regarding any actual, alleged, possible, or potential violation or breach of, or default under, any Seller Contract and no event
has occurred that, with notice or lapse of time, would constitute a breach or default under any Seller Contract.

 

(f)The
Seller Contracts relating to the sale, design, manufacture, or provision of products or services by each Seller have been entered
into in the Ordinary Course of Business and have been entered into without the commission of any act alone or in concert with
any other Person, or any consideration having been paid or promised, that is or would be in violation of any Legal Requirement.

 

3.14Insurance.
Each Seller has delivered to Buyer: (a) true and complete copies of all policies of insurance to which such Seller is a party
or under which such Seller, or any manager or member of such Seller, is or has been covered at any time which relate to such Seller;
and (b) a statement describing the loss experience for all claims made under any insurance policies, including the number and
aggregate cost of such claims for the past three (3) years.

 

    	 	- 12 -	 

     

    

 

3.15Intellectual
Property.

 

(a)The
term “Intellectual Property Assets” means, collectively:

 

i.All
business names, domain names, trade names, registered and unregistered trademarks, service marks, and applications and common
law rights and goodwill in the foregoing (collectively, “Marks”), owned, licensed or otherwise used by any
Seller in the Business;

 

ii.all
patents, patent applications, and inventions and discoveries that may be patentable (collectively, “Patents”),
in each case owned, licensed or otherwise used by any Seller;

 

iii.all
original works of authorship (whether or not copyrightable or published); all software of any type developed by or for any Seller,
including computer programs, applications, mobile apps, middleware, libraries, tools, firmware, software implementations of algorithms,
models and methodologies, whether in source code, object code, executable code or other form, databases and compilations, including
any and all data and collections of data, descriptions, flow-charts and other work product used to design, plan, organize and
develop any of the foregoing and all documentation, including user manuals and training materials related to any of the foregoing
(collectively, “Software”); and, all rights in mask works owned, licensed or otherwise used by any Seller (collectively,
“Copyrights”), owned, licensed or otherwise used by any Seller;

 

iv.all
social media and social networking assets, including, but not limited to, accounts, handles, profiles, channels, pages, websites,
content and associated followers, friends and other connections and links of Facebook, Twitter, YouTube, Pinterest, LinkedIn and
all other social media and social networking websites, services and accounts; wikis and other collaborative content websites (e.g.,
Wikipedia), online messaging and bulletin boards, blogs, microblogs, Google+ accounts, photo, video and other content-sharing
websites, virtual game or social worlds; and email addresses and domain names used as part of email addresses, all of the foregoing
as used in connection with the Business (collectively, “Social Media Accounts”);

 

v.all
account names, user names, nicknames, display names, handles and other identifiers registered, used or held for use by or for
any Seller, as well as all login passwords and other credentials for the Social Media Accounts (collectively, “Social
Media Account Names”), and

 

vi.all
scientific, financial, technical or nontechnical data, designs, drawings, blueprints, system architecture, patterns, processes,
formulas, devices, know-how, negative know-how, methods, techniques, compilations, Software, drawings, financial and product plans,
or lists of actual or potential customers or suppliers, relating to the Business, which (i) derives economic value, actual or
potential, from not being generally known to, and not readily ascertainable by proper means by, other persons and (ii) is the
subject of efforts by any Seller that are reasonable under the circumstances to maintain its secrecy (collectively, “Trade
Secrets”), in each case which is owned, used, or licensed by any Seller as licensee or licensor.

 

    	 	- 13 -	 

     

    

 

(b)Each
Seller has delivered to Buyer correct and complete copies of all available written documentation evidencing ownership of each
item of Intellectual Property Assets used by each Seller in operation of the Business. Schedule 3.15(b) of the Disclosure
Schedule contains a complete and accurate list and summary description, including any royalties paid or received by each Seller,
of all Contracts of each Seller relating to the Intellectual Property Assets to which Seller is a party or by which Seller is
bound, except for any license implied by the sale of a product and perpetual, paid-up licenses for commonly available software
programs with a value of less than $1,000 under which Seller is the licensee. There are no outstanding and no Threatened disputes
or disagreements with respect to any such Contract.

 

(c)Except
as set forth in Schedule 3.15(c) of the Disclosure Schedule:

 

i.The
Intellectual Property Assets are all those necessary for the professional, orderly operation of the Business as they are currently
conducted;

 

ii.Sellers
are the owners of all rights, title, and interest in and to each of the Intellectual Property Assets, free and clear of all Encumbrances,
and has the right to use all of the Intellectual Property Assets without payment to a third party;

 

iii.All
former and current employees of Sellers have executed written Contracts with Sellers that assign to Sellers all rights to any
inventions, improvements, discoveries, or information relating to the business of Sellers; and

 

iv.To
the Knowledge of the Sellers, no employee of Sellers 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 Sellers.

 

(d)Sellers
do not own or license any Patents. None of the products manufactured or sold, nor any process or know-how used, by Sellers is
alleged to infringe any patent or other proprietary right of any other Person, or to the Knowledge of the Sellers, infringes any
patent or other proprietary right of any other Person.

 

(e)Sellers
have not interfered with, infringed upon, misappropriated, or otherwise come into conflict with any other Person's intellectual
property, and Sellers have not ever received any written notice alleging any interference, infringement, misappropriation, violation
or conflict with any other Person's intellectual property (including any claim that Sellers must license or refrain from using
any other Person's intellectual property). To the Knowledge of the Sellers, no third Person has any intellectual property that
interferes or would be likely to interfere with Buyer's use of any of the Intellectual Property Assets transferred under this
Agreement. To the Knowledge of the Sellers, Buyer will not interfere with, infringe upon, misappropriate, or otherwise come into
conflict with, any intellectual property rights of any other Person as a result of the continued operation of the Business as
currently conducted and as currently proposed to be conducted. No other Person has interfered with, infringed upon, misappropriated,
or otherwise come into conflict with the Intellectual Property Assets.

 

(f)Schedule 3.15(f)
of the Disclosure Schedule lists all Software developed by or for Sellers in the operation of the Business. Schedule 3.15(f)
of the Disclosure Schedule lists all originators, developers, programmers (other than employees), who have written any portion
of or contributed to any development of such Software (collectively, the “Developers”). Schedule 3.15(f)
of the Disclosure Schedule contains a complete and accurate list of all code incorporated into such Software that was not
specifically written or developed for use in such Software (the "Preexisting Code"). This list includes code
from toolkits, from preexisting code written by the Developers and/or from third-party software used to write or otherwise contribute
to the development of any such Software. After Closing, Buyer will have at least a non-exclusive right to use any such Preexisting
Code and, to the Knowledge of the Sellers, there are no third-party rights to such Preexisting Code that will materially interfere
with Buyer's ownership and use of such Software.

 

    	 	- 14 -	 

     

    

 

(g)To
the Knowledge of Sellers, none of the Software includes any Publicly Available Software and Sellers have never used Publicly Available
Software in whole or in part in the development of any part of the Software in a manner that may subject the Software, in whole
or in part, to all or part of the license obligations of any Publicly Available Software. “Publicly Available Software”
means each of (i) any software that contains, or is derived in any manner (in whole or in part) from, any software that is distributed
as free software, open source software (e.g., Linux), or similar licensing and distribution models; and (ii) any software that
requires as a condition of use, modification, and/or distribution of such software that such software or other software incorporated
into, derived from, or distributed with such software (1) be disclosed or distributed in source code form; (2) be licensed for
the purpose of making derivative works; or (3) be redistributable at no or minimal charge. Publicly Available Software includes,
without limitation, software licensed or distributed under any of the following licenses or distribution models similar to any
of the following: (t) GNU General Public License (GPL) or Lesser/Library GPL (LGPL), (u) the Artistic License (e.g., PERL), (v)
the Mozilla Public License, (w) the Netscape Public License, (x) the Sun Community Source License (SCSL), (y) the Sun Industry
Source License (SISL), and (z) the Apache Server License.

 

(h)Schedule
3.15(h) of Disclosure Schedule contains a complete and accurate list and summary description of all Social Media Accounts
and all Social Media Account Names.

 

i.None
of the Social Media Account Names infringes or otherwise violates any trademark rights or other intellectual property rights of
any third Person.

 

ii.All
use of the Social Media Accounts complies with and has complied with (1) all terms and conditions, terms of use, terms of service
and other agreements and contracts applicable to such Social Media Accounts, and (2) applicable law and regulation.

 

iii.Sellers
have implemented and enforces an employee social media policy that:

 

		(A)	provides
                                         that Sellers, and not any company employee or contractor, owns and controls the Social
                                         Media Accounts and Social Media Account Names (including all associated information and
                                         content, all relationships, interactions and communications with fans, followers, visitors,
                                         commenters, users and customers, and all associated goodwill and opportunities);

 

		(B)	requires
                                         all employees and contractors to relinquish to Sellers all Social Media Account Names,
                                         passwords, and other log-in information for the Social Media Accounts upon termination
                                         of employment or engagement or at any other time upon Buyer’s request;

 

		(C)	includes
                                         appropriate guidelines and restrictions regarding the use of (1) the Social Media Accounts,
                                         and (2) personal social media accounts, including, in each case, with respect to endorsements,
                                         attribution, disclosure of proprietary information and violation of intellectual property
                                         rights; and

 

    	 	- 15 -	 

     

    

 

		(D)	complies
                                         with applicable law and regulation.

 

iv.Each
of each Seller’s employees and contractors has agreed in his or her company agreement to comply with such social media policy.

 

v.To
the Knowledge of the Sellers, the Contemplated transactions will not result in the loss or impairment of the Buyer’s ability
to use, operate or maintain any Social Media Account or Social Media Account Name, or in the breach of any terms of use, terms
of service or other agreements or contracts applicable to such Social Media Accounts.

 

(i)Schedule
3.15(i) of Disclosure Schedule contains a complete and accurate list and summary description of all Marks.

 

i.Sellers
are the owners of all right, title, and interest in and to each of the Marks, free and clear of all Encumbrances and other adverse
claims;

 

ii.All
Marks that have been registered with any Governmental Body are currently in compliance with all Legal Requirements (including
the timely post-registration filing of affidavits of use and incontestability and renewal applications), are valid and enforceable,
and are not subject to any maintenance fees or taxes or renewals, responses, required filings or other actions falling due within
90 days after the Closing Date, and all assignments, transfers, security interests, name changes and other recordable events regarding
the Marks have been recorded with all applicable patent, trademark and copyright offices;

 

iii.No
Mark has been or is now opposed to or challenged by any third party and no such action is Threatened with the respect to any of
the Marks;

 

iv.To
the Knowledge of the Sellers, there is no potentially interfering trademark or trademark application of any third party domestically
or internationally;

 

v.No
Mark has been challenged or threatened in any way, and to the Knowledge of the Sellers, no Mark is infringed. None of the Marks
used by Seller infringes, or is alleged to infringe, any trade name, trademark, or service mark of any third party domestically
or internationally; and

 

vi.All
products and materials containing a registered Mark bear the proper federal registration notice where permitted by law.

 

(j)Schedule
3.15(j) of the Disclosure Schedule contains a complete and accurate list and summary description of all Copyrights.

 

i.Sellers
are the owners of all right, title, and interest in and to each of its Copyrights, free and clear of all Encumbrances;

 

ii.No
Copyright has been challenged or threatened in any way, nor, to the Knowledge of the Seller, infringed upon. None of the subject
matter of any of the Copyrights infringes or is alleged to infringe any copyright of any third party or is a derivative work based
on the work of a third party; and

 

    	 	- 16 -	 

     

    

 

iii.All
works protected by the Copyrights that are disseminated to third parties have been marked with the proper copyright notice.

 

(k)Except
as set forth in Schedule 3.15(k) of the Disclosure Schedule:

 

i.The
documentation relating to each Trade Secret is current, accurate, and sufficient in detail and content to identify and explain
it and to allow its full and proper use without reliance on the knowledge or memory of any individual;

 

ii.All
current, and to the Knowledge of Sellers, former employees, consultants, or contractors of Sellers or its Affiliates who have
participated in the creation or development of any Intellectual Property Asset which is necessary or material to the operation
of the Business in the ordinary course created or developed by, for or under the direction or supervision of Seller (including
the Intellectual Property Assets set forth in Schedule 3.15(a) of the Disclosure Schedule) have executed and delivered
to Seller, a valid and enforceable agreement providing for the non-disclosure by such current or former employee, consultant,
or contractor of all Trade Secrets.

 

iii.Sellers
have taken all reasonable precautions to protect the secrecy, confidentiality, and value of its Trade Secrets; and

 

iv.Sellers
have good title and an absolute (but not necessarily exclusive) right to use the Trade Secrets. The Trade Secrets are not part
of the public knowledge or literature, and have not been used, divulged, or appropriated either for the benefit of any Person
(other than Sellers) or to the detriment of Seller. No Trade Secret is subject to any adverse claim or has been challenged or
threatened in any way.

 

(l)Except
at set forth in Schedule 3.15(l) of the Disclosure Schedule, Sellers have not entered into any Assigned Contract which
could result in liability to Buyer or its Affiliates of in excess of $100,000 to indemnify, defend or hold harmless any person
or entity against any claim of infringement, misappropriation or violation or unlawful use of any Intellectual Property Asset
in respect of the Business.

 

(m)There
are no written consents, settlements, judgments, injunctions, decrees, awards, stipulations, orders or similar obligations to
which Sellers or its Affiliates is a party, or to which Sellers or its Affiliates is otherwise bound, in each case that relate
to the Intellectual Property Asset or the intellectual property rights of another Person or entity, that will materially restrict
the rights of Buyer to use, transfer, license, enforce or otherwise exploit any Intellectual Property Asset or that will materially
restrict the conduct of the Business.

 

(n)None
of the Intellectual Property Assets has been developed by or for Sellers with the assistance or use of any funding from third
parties, including, funding from any local, state or federal government or governmental authority of the United States, or any
foreign government or governmental authority.

 

    	 	- 17 -	 

     

    

 

3.16Information
Technology.

 

(a)Section
3.16(a) of the Disclosure Schedule sets out a true, correct and complete list of all material Information Technology owned,
licensed, used or held for use in connection with the Business (other than with respect to personal computers and printers) and
all Material Contracts in effect as of the date hereof relating in any material respect to the maintenance and support, security,
disaster recovery management and utilization of such Information Technology.

 

(b)Sellers
own, lease, licenses or has other contractual rights to use (pursuant to valid and enforceable lease, license or other contractual
agreements) all Information Technology, networking systems, telecommunication systems, and documentation (including, but not limited
to, a written disaster recovery and business continuity plan and procedures) relating to any of the foregoing, that are used in
or necessary for the operations of the Business as currently conducted (the “Business IT”). Seller will be,
at Closing, in compliance in all material respects with its material license agreements for all Business IT licensed or leased
by Seller and Seller has not received written notice from a vendor or licensor that Seller is in violation of any such license
or lease. Seller maintains comprehensive and clear documentation regarding Information Technology, their methods of operation,
and their support and maintenance. The Information Technology is adequate for the operation of the Business as currently conducted.
Each system comprising the Information Technology is adequate for its intended functions, operations and purposes in all material
respects, and there has been no material malfunction of any Information Technology that has not been resolved and corrected. Seller
has taken reasonable precautions in accordance with industry practice to preserve the availability, security and integrity of
the Information Technology and the data and information stored on the Information Technology, and, to the Knowledge of Seller,
the Information Technology has not been compromised or breached. Seller has disaster recovery facilities in place for its primary
operations Software applications and either disaster recovery or failover facilities in place for the applications needed to process
customer orders that are appropriate, in accordance with industry practice, to minimize the disruption of the Business in the
event of any failure of all or part of the Information Technology. Seller has regularly tested such plans and facilities, and
has written disaster recovery procedures in place.

 

(c)Since
the Balance Sheet Date, no notice of a material defect or default has been sent or received by Sellers, in respect of any license
or lease under which the Sellers received material Information Technology, that remains unresolved. The use of any Information
Technology by Sellers does not, in any material respect, exceed the scope of the rights granted to the Sellers with respect thereto,
including any applicable limitation upon usage, type or number of licenses, users, hardware, time, service or systems.

 

(d)Each
of the domain names set forth in Schedule 2.1(a)(ii) of the Disclosure Schedule is validly registered to one of the Sellers
and there are no other domain names which are or have been used in connection with the Business. Each such domain name is free
and clear of all Encumbrances and the registration of each such domain name is in full force and effect and in material compliance
with all applicable domain name registration requirements. None of the registrations or uses of the domain names have been materially
disturbed or placed “on hold” and the Sellers have not received notice of any claim asserted against Sellers adverse
to its rights to such domain names.

 

3.17Certain
Payments. None of any Seller, any Owner, director or officer of any Seller, or any, agent, employee or any other Person associated
with or acting for or on behalf of, any Seller, has directly or indirectly (a) made any contribution, gift, bribe, rebate,
payoff, influence payment, kickback, or other payment to any Person, private or public, regardless of form, whether in money,
property, or services (i) to obtain favorable treatment in securing business, (ii) to pay for favorable treatment for
business secured, (iii) to obtain special concessions or for special concessions already obtained, for or in respect of any
Seller or any Affiliate of Seller, or (iv) in violation of any Legal Requirement; or (b) established or maintained any
fund or asset that has not been recorded in the books and records of any Seller.

 

    	 	- 18 -	 

     

    

 

3.18Solvency.

 

(a)No
Seller is now insolvent and no Seller will be rendered insolvent by any of the Contemplated Transactions. As used in this Section,
“insolvent” means that the sum of the debts and other probable liabilities of Sellers exceeds the present fair saleable
value of Sellers’ assets.

 

(b)Immediately
after giving effect to the consummation of the Contemplated Transactions: (i) Sellers will be able to pay its liabilities
as they become due in the usual course of its business; (ii) Sellers will not have unreasonably small capital with which to conduct
its present business; (iii) Sellers will have assets (calculated at fair market value) that exceed its liabilities; and (iv) taking
into account all pending and threatened litigation, final judgments against Sellers in actions for money damages are not reasonably
anticipated to be rendered at a time when, or in amounts such that, Sellers will be unable to satisfy any such judgments promptly
in accordance with their terms (taking into account the maximum probable amount of such judgments in any such actions and the
earliest reasonable time at which such judgments might be rendered) as well as all other obligations of Sellers. The cash available
to Sellers, after taking into account all other anticipated uses of the cash, will be sufficient to pay all such debts and judgments
promptly in accordance with their terms.

 

3.19Environmental
Matters.

 

(a)Any
property or facility now or previously owned or leased by Sellers: (i) is in full compliance with all requirements of all environmental
laws; (ii) is not the subject of any investigation or administrative proceeding evaluating whether any remedial action is necessary
to respond to a release or contamination; (iii) has not received nor are subject to any notice advising as to potential responsibility
for response costs to a release of contaminants; and (iv) does not have any underground storage tanks of any type.

 

(b)Sellers
have obtained all Governmental Authorization which are required under any environmental laws and is in full compliance therewith.

 

3.20Disclosure.

 

(a)No
representation or warranty of any Seller or Owners in this Agreement and no statement in the Disclosure Schedule omits to state
a material fact necessary to make the statements herein or therein, in light of the circumstances in which they were made, not
misleading.

 

(b)There
is no fact known to any Seller or Owners that has specific application to any Seller that materially adversely affects the Assets,
the Business, prospects, financial condition, or results of operations of any Seller that has not been set forth in this Agreement
or the Disclosure Schedule.

 

3.21Brokers
or Finders. Neither Sellers nor Owners have any obligation or liability, contingent or otherwise, for brokerage or finders’
fees, agents’ commissions, or any other similar payment in connection with this Agreement.

 

3.22Employment
Matters.

 

(a)Schedule
‎3.22(a) contains a complete and accurate list of the following information for each employee, director, independent contractor,
consultant and agent of each Seller, including each employee on leave of absence or layoff status: employer; name; job title;
date of hiring or engagement; date of commencement of employment or engagement; current compensation paid or payable; sick and
vacation leave that is accrued but unused; active or inactive status (including type of leave, if any); employment status (i.e.,
full-time, part-time or temporary); any bonuses or other commissions reasonably likely to be paid for the current calendar year;
and service credited for purposes of vesting and eligibility to participate under any Employee Benefit Plan, or any other employee
or director benefit plan.

 

    	 	- 19 -	 

     

    

 

(b)Schedule
‎3.22(b) contains a complete and accurate list of the following information for each retired employee or director of each
Seller, or their dependents, receiving benefits or scheduled to receive benefits in the future: name; pension benefits; pension
option election; retiree medical insurance coverage; retiree life insurance coverage; and other benefits.

 

(c)Schedule
‎3.22(c) states the number of employees terminated by each Seller since January 1, 2015, and contains a complete and accurate
list of the following information for each employee of each Seller who has been terminated or laid off, or whose hours of work
have been reduced by more than fifty percent (50%) by any Seller, in the six (6) months prior to the Execution Date: (i) the date
of such termination, layoff or reduction in hours; (ii) the reason for such termination, layoff or reduction in hours; and (iii)
the location to which the employee was assigned.

 

(d)Each
Seller has not violated the Worker Adjustment and Retraining Notification Act (the “WARN Act”) or any
similar state or local Law.

 

(e)To
each Seller’s Knowledge, no officer, director, agent, employee, consultant, or contractor of such Seller is bound by any
Contract that purports to limit the ability of such officer, director, agent, employee, consultant, or contractor (i) to engage
in or continue or perform any conduct, activity, duties or practice relating to the Business or (ii) to assign to such Seller
or to any other Person any rights to any invention, improvement, or discovery. No former or current employee of Party is a party
to, or is otherwise bound by, any Contract that in any way adversely affected, affects, or will affect the ability of Sellers
or Buyer to conduct the Business as heretofore carried on by Sellers.

 

(f)There
are no collective bargaining Contracts that cover any of the employees of any Seller or any of their Affiliates or to which any
Seller or any of their Affiliates is a party. There has not been, there is not pending or existing, and, to the Knowledge of each
Seller, there is not threatened, any strike, slowdown, picketing, work stoppage, employee grievance process, organizational activity,
or other labor dispute involving any of the employees of any Seller or any of their Affiliates. There has not been, and there
is not pending or, to the Knowledge of any Seller, threatened against or affecting any Seller or any of their Affiliates any action
relating to the alleged violation of any law pertaining to labor relations or employment matters, including any charge or complaint
filed with the National Labor Relations Board or any comparable Governmental Body, in any case with respect to any of the employees
of any Seller or any of their Affiliates.

 

(g)Each
Seller has no Knowledge of any organizational effort currently being made or Threatened by or on behalf of any labor union with
respect to any employee of any Seller.

 

(h)With
respect to the employees of each Seller, each Seller is (i) in compliance in all material respects with all laws respecting employment,
employment practices, equal employment opportunity, nondiscrimination, sexual harassment, terms, conditions and classifications
of employment, employee safety and health, immigration status and wages and hours, (ii) not liable for any arrears of wages, severance
pay or any Taxes or any penalty for failure to comply with any of the foregoing (other than any arrearages in wages for the current
payment cycle for employees), and (iii) not liable for any payment to any trust or other fund governed by or maintained by or
on behalf of any Governmental Body, with respect to unemployment compensation benefits, social security or other benefits or obligations
for employees. There are no actions, grievances, investigations, suits, claims, charges or administrative matters pending, or,
to the Knowledge of any Seller, threatened against any Seller relating to any employee of any Seller.

 

    	 	- 20 -	 

     

    

 

(i)Except
as set forth on Schedule 3.22(i), to the Knowledge of each Seller, no employee of any Seller (i) intends to terminate his or her
employment or engagement with the Seller or any of its Affiliates (other than as required pursuant to this Agreement), (ii) has
received an offer to join a business that may be competitive with the Business or (iii) is a party to or bound by any confidentiality
agreement, noncompetition agreement or other Contract (with any other Person) that may have an adverse effect on: (A) the performance
by such individual of any of his or her duties or responsibilities as an employee of the Seller or (B) the Business.

 

(j)Schedule
3.22(j) contains a complete and accurate list of (i) all employee benefit plans (as defined in Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”)) and all bonus, stock option, stock purchase, restricted
stock, incentive, deferred compensation, retiree medical or life insurance, supplemental retirement, severance, pension, profit-sharing,
performance, vacation, retention, disability, hospitalization, medical, life insurance or other benefit plans, programs or arrangements,
and all employment, termination, severance or other contracts or agreements, to which any Seller is a party, with respect to which
any Seller has any obligation which are maintained, contributed to or sponsored by such Seller for the benefit of any current
or former employee of such Seller, (ii) each employee benefit plan for which any Seller could incur liability under Section 4069
of ERISA in the event such plan has been or were to be terminated, (iii) any plan in respect of which any Seller could incur liability
under Section 4212(c) of ERISA and (iv) any contracts, arrangements or understandings between any Seller or any Affiliate of Seller
and any employee of any Seller (collectively, the “Plans”); provided, however, that “Plan” does not include
any Contract or plan of any Seller to pay any retention or stay bonus which will be satisfied before the Closing or retained by
any Seller on and after the Closing. Each Plan is in writing, and the Seller has made available to Buyer a true and complete copy
of each Plan.

 

(k)Each
Plan that is intended to be qualified under Section 401(a) of the Internal Revenue Code has received a favorable determination
letter from the Internal Revenue Service (the “IRS”) with respect to the most recent Cycle E determination letter
filing period or has timely applied to the IRS for such a letter, and, to Sellers’ Knowledge, no fact or event has occurred
since the date of such determination letter or letters from the IRS that is reasonably expected to adversely affect the qualified
status of any such Plan. 

 

3.23Taxes.

 

(a)Each
Seller has filed all Tax Returns that it was required to file under applicable Legal Requirements. All such Tax Returns were accurate,
correct, and complete in all material respects and accurately reflect the facts regarding the income, business, assets, operations,
activities, status, or other matters of each of the respective entities or any other information required to be shown thereon.
All Taxes each Seller owes (whether or not shown on any Tax Return) have been paid. Each Seller is not currently the beneficiary
of any extension of time within which to file any Tax Return. No Governmental Body has Threatened or made a claim in writing or
as to which any Seller or any Owner has Knowledge in a jurisdiction where any Seller does not file Tax Returns that it is or may
be subject to Taxation by that jurisdiction. There are no Encumbrances on any of the Assets that arose in connection with any
failure (or alleged failure) to pay any Tax.

 

    	 	- 21 -	 

     

    

 

(b)Each
Seller has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owed to any
employee, independent contractor, creditor, holder of its Equity Interests, or other third party.

 

(c)There
is no Threatened assessment of any additional Taxes for any period for which Tax Returns have been filed. There is no claim or
Proceeding concerning any Tax Liability of any Seller either (i) claimed or raised in writing, or (ii) as to which any Seller
or any Owner has Knowledge. Schedule ‎3.23 lists all Tax Returns filed with respect to each Seller for taxable periods
ended on or after October 9, 2014, indicates those Tax Returns that have been audited, and indicates those Tax Returns that currently
are the subject of audit. Each Seller has delivered to Buyer correct and complete copies of all Tax Returns, examination reports,
and statements of deficiencies assessed against or agreed to by each Seller since October 9, 2014.

 

(d)Each
Seller has not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax
assessment or deficiency.

 

(e)Each
Seller has not been a member of an affiliated group filing a consolidated federal income Tax Return, other than a group of which
Owner is the common parent.

 

3.24Customers
and Suppliers. Schedule 3.24 of the Disclosure Schedule lists each Seller’s (a) 20 largest customers
in terms of sales during the year ended December 31, 2015 and states the approximate total sales by Seller to each such customer
during such period, and (b) 10 largest suppliers during the year ended December 31, 2015. Except as set forth
in Schedule 3.24, no Seller nor any Owner has received notice of termination or an intention to terminate the relationship
with Seller from any customer or supplier.

 

3.25Permits.
Each Seller possesses all Permits required to be obtained for operation of the Business, other than those Permits which the lack
of possession thereof would not result in a material adverse effect on the Business. Schedule 3.25 of the Disclosure Schedule
sets forth a list of all such Permits. Except as set forth in Schedule 3.25 of the Disclosure Schedule, with respect to
each such Permit: (i) it is valid, subsisting and in full force and effect; (ii) there are no violations of such Permit that would
result in a termination of such Permit; (iii) Seller has not received notice that such Permit will not be renewed; and (iv) the
Transactions will not adversely affect the validity of such Permit or cause a cancellation of or otherwise adversely affect such
Permit.

 

3.26Privacy;
Security.

 

(a)Except
as set forth in Schedule 3.26 of the Seller Disclosure Schedule, each Seller has complied with any publicly posted privacy
policy posted on any websites used in connection with the Business. No material claims or controversies have arisen regarding
such privacy policies. During the two (2) year period immediately preceding the Closing, each Seller (i) has complied in all material
respects with Legal Requirements in the United States applicable to privacy and security commitments for personally identifiable
information relating to users and subscribers of the products and services used in connection with the Business and (ii) has not
received any inquiries from the Federal Trade Commission or any other Governmental Authority regarding an actual or alleged failure
to comply with such Legal Requirements.

 

(b)Each
Seller has taken all commercially reasonable steps and implemented reasonable security measures to protect the Assets used in
the conduct of the Business prior to Closing from unauthorized access or use. To the Knowledge of each Seller, there have been
no security breaches of, or other instances of unauthorized access to, the Assets in the two (2) years immediately preceding the
Closing. Each Seller has implemented reasonable backup and disaster recovery technology for the Assets consistent with industry
practices.

 

    	 	- 22 -	 

     

    

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer
represents and warrants to Sellers and Owners as follows:

 

4.1Organization
and Good Standing. Buyer is a corporation duly organized, validly existing, and in good standing under the laws of its jurisdiction
of incorporation.

 

4.2Authority;
No Conflict.

 

(a)This
Agreement constitutes the legal, valid, and binding obligation of Buyer, enforceable against Buyer in accordance with its terms.
Upon the execution and delivery by Buyer of each other agreement to be executed or delivered by Buyer at the Closing (collectively,
the “Buyer’s Closing Documents”), each of Buyer’s Closing Documents will constitute the legal,
valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’
rights and remedies generally and by general principles of equity. Buyer has the absolute and unrestricted right, power and authority
to execute and deliver this Agreement and the Buyer’s Closing Documents to which it is a party and to perform its obligations
under this Agreement and the Buyer’s Closing Documents, and such action has been duly authorized by all necessary action
by Buyer’s shareholders and board of directors.

 

(b)Neither
the execution and delivery of this Agreement by Buyer nor the consummation or performance of any of the Contemplated Transactions
by Buyer will give any Person the right to prevent, delay, or otherwise interfere with any of the Contemplated Transactions by
Buyer, nor will give any Person the right to prevent, delay, or otherwise interfere with any of the Contemplated Transactions
pursuant to: (i) any provision of Buyer’s Organizational Documents; (ii) any resolution adopted by the board of directors
or the stockholders of Buyer; (iii) any Contract to which Buyer is a party or by which Buyer may be bound.

 

Buyer
is not and will not be required to obtain any Consent from any Person in connection with the execution and delivery of this Agreement
or the consummation or performance of any of the Contemplated Transactions.

 

4.3Certain
Proceedings. There is no pending Proceeding that has been commenced against Buyer and that challenges, or may have the effect
of preventing, delaying, making illegal, or otherwise interfering with, any of the Contemplated Transactions. To Buyer’s
Knowledge, no such Proceeding has been Threatened.

 

4.4Brokers
or Finders. Buyer has incurred no obligation or liability, contingent or otherwise, for brokerage or finders’ fees,
agents’ commissions, or any other similar payment in connection with this Agreement.

 

4.5No
Other Representations or Warranties. The Parties each acknowledge that the representations and warranties of each Party contained
in this Agreement (including the Disclosure Schedule) constitute the sole and exclusive representations and warranties to of such
Party in connection with this Agreement and the Contemplated Transactions.

 

    	 	- 23 -	 

     

    

 

ARTICLE
V

INDEMNIFICATION; REMEDIES

 

5.1Survival.
All representations and warranties in this Agreement, the Disclosure Schedule, any supplements to the Disclosure Schedule and
any certificate or document delivered pursuant to this Agreement shall survive the Closing and the consummation of the Contemplated
Transactions and continue in full force and effect for one (1) year thereafter; provided, however, that the representations and
warranties in Sections 3.1, 3.2, 3.7, 3.19, 3.22, and 3.23 (each, a “Fundamental Representation”) shall continue
in full force and effect until thirty (30) days after the applicable statute of limitations relating to such representations and
warranties has expired. The covenants and other obligations in this Agreement, the Disclosure Schedule, any supplements to the
Disclosure Schedule and any certificate or document delivered pursuant to this Agreement shall survive the Closing and the consummation
of the Contemplated Transactions. The waiver of any condition based upon the accuracy of any representation or warranty, or on
the performance of or compliance with any covenant or obligation, will not affect the right to indemnification, reimbursement
or other remedy based upon such representations, warranties, covenants and obligations.

 

5.2Indemnification
and Reimbursement by Sellers and Owners. Each Seller and each Owner, jointly and severally, will indemnify and hold harmless
Buyer and its Representatives, shareholders, subsidiaries and Related Persons (collectively, the “Indemnified Persons”),
and will reimburse the Indemnified Persons for any loss, liability, claim, damage, expense (including costs of investigation and
defense and reasonable attorneys’ fees and expenses and other incidental or consequential damages) or diminution of value,
whether or not involving a Third-Party Claim (collectively, “Damages”), arising from or in connection with:

 

(a)any
Breach of any representation or warranty made by any Seller or any Owner in (i) this Agreement, (ii) the Disclosure Schedule,
(iii) each Seller’s Secretary Certificate and each Seller’s Closing Documents, (iv) any transfer instrument, or (v)
any other certificate, document, writing or instrument delivered by any Seller or any Owner pursuant to this Agreement;

 

(b)any
Breach of any covenant or obligation of any Seller or any Owner in this Agreement, including, without limitation, the Transition
Services Agreement, or in any other certificate, document, writing or instrument delivered by any Seller or any Owner pursuant
to this Agreement;

 

(c)any
Pre-Closing Tax or other liability arising out of the ownership of the Assets or operation of the Business prior to the Closing
Date other than the Assumed Liabilities;

 

(d)any
product sold or any services provided by, any Seller, in whole or in part, prior to the Closing Date;

 

(e)any
Seller Benefit Plan established or maintained by any Seller; or

 

(f)any
Retained Liabilities.

 

    	 	- 24 -	 

     

    

 

Each
Seller’s and each Owner’s liability with respect to claims under Section 5.2 is limited to an amount which shall not
exceed, in the aggregate, the Purchase Price.

 

5.3Indemnification
and Reimbursement by Buyer. Buyer will indemnify and hold harmless Sellers, Owners and their respective Indemnified Persons,
and will reimburse the Indemnified Persons for Damages, to the extent arising from or in connection with:

 

(a)any
Breach of Buyer’s representations and warranties in (i) this Agreement, (ii) any transfer instrument, or (iii) any other
certificate, document, writing or instrument delivered by Buyer pursuant to this Agreement;

 

(b)any
Breach of any covenant or obligation of Buyer in this Agreement or in any other certificate, document, writing or instrument delivered
by Buyer pursuant to this Agreement; or

 

(c)any
liability arising out of the ownership of, or conditions first occurring with respect to, the Assets following the Closing Date
or from the Assumed Liabilities except to the extent caused by any Seller in the performance of such Seller’s obligations
under the Transition Services Agreement.

 

Buyer’s
liability with respect to claims under Section 5.3 is limited to an amount which shall not exceed the Purchase Price.

 

5.4Indemnification
Claim Procedures.

 

(a)If
any Proceeding is commenced in which any Indemnified Person is a party that may give rise to a claim for indemnification against
any Indemnitor (an “Indemnification Claim”) then such Indemnified Person will promptly give written notice
to the Indemnitor together with a copy of the document asserting such claim, if then available to the Indemnified Person. Failure
to notify the Indemnitor will not relieve the Indemnitor of any Liability that it may have to the Indemnified Person, except to
the extent the defense of such Proceeding is materially and irrevocably prejudiced by the Indemnified Person’s failure to
give such notice.

 

(b)An
Indemnitor will have the right to defend against an Indemnification Claim, with counsel of its choice reasonably satisfactory
to the Indemnified Person if (i) within 15 days following the receipt of notice of the Indemnification Claim the Indemnitor
notifies the Indemnified Person in writing that the Indemnitor will indemnify the Indemnified Person from and against the entirety
of any Damages the Indemnified Person may suffer resulting from, relating to, arising out of, or attributable to the Indemnification
Claim, (ii) the Indemnitor provides the Indemnified Person with evidence reasonably acceptable to the Indemnified Person
that the Indemnitor will have the financial resources to defend against the Indemnification Claim and pay, in cash, all Damages
the Indemnified Person may suffer resulting from, relating to, arising out of, or attributable to the Indemnification Claim, (iii) 
the Indemnification Claim involves only money Damages and does not seek an injunction or other equitable relief, (iv)  settlement
of, or an adverse judgment with respect to, the Indemnification Claim is not in the good faith judgment of the Indemnified Person
likely to establish a precedential custom or practice materially adverse to the continuing business interests of the Indemnified
Person, and (v)  the Indemnitor continuously conducts the defense of the Indemnification Claim actively and diligently.

 

(c)So
long as the Indemnitor is conducting the defense of the Indemnification Claim in accordance with Section 5.4(b), (i) the
Indemnified Person may retain separate co-counsel at its sole cost and expense and participate in the defense of the Indemnification
Claim, (ii) the Indemnified Person will not consent to the entry of any Order with respect to the Indemnification Claim without
the prior written Consent of the Indemnitor (not to be withheld unreasonably), and (iii)  the Indemnitor will not Consent
to the entry of any Order with respect to the Indemnification Claim without the prior written Consent of the Indemnified Person
(not to be withheld unreasonably, provided that it will not be deemed to be unreasonable for an Indemnified Person to withhold
its Consent (A) with respect to any finding of or admission (1) of any Breach of any Law, Order or Permit, (2) of
any violation of the rights of any Person, or (3) which Indemnified Person reasonably believes could have a Material Adverse
Effect on any other Proceedings to which the Indemnified Person or its Affiliates are party or to which Indemnified Person has
a good faith belief it may become party, or (B) if any portion of such Order would not remain sealed if the failure to seal
such Order would have a Material Adverse Effect Upon the Indemnified Person.

 

    	 	- 25 -	 

     

    

 

(d)If
any condition in Section 5.4(b) is or becomes unsatisfied, (i) the Indemnified Person may defend against, and
consent to the entry of any Order with respect to an Indemnification Claim in any manner it may deem appropriate (and the Indemnified
Person need not consult with, or obtain any Consent from, any Indemnitor in connection therewith), (ii) each Indemnitor will
jointly and severally be obligated to reimburse the Indemnified Person promptly and periodically for the Damages relating to defending
against the Indemnification Claim, and (iii)  each Indemnitor will remain jointly and severally Liable for any Damages the
Indemnified Person may suffer relating to the Indemnification Claim to the fullest extent provided in this ARTICLE 5.

 

5.5Indemnification
in Case of Strict Liability or Indemnitee Negligence. THE INDEMNIFICATION PROVISIONS IN THIS ARTICLE 5 SHALL BE ENFORCEABLE
REGARDLESS OF WHETHER THE LIABILITY IS BASED UPON PAST, PRESENT OR FUTURE ACTS, CLAIMS OR LEGAL REQUIREMENTS (INCLUDING ANY FRAUDULENT
TRANSFER ACT, OCCUPATIONAL SAFETY AND HEALTH LAW OR PRODUCTS LIABILITY, SECURITIES OR OTHER LEGAL REQUIREMENT) AND REGARDLESS
OF WHETHER ANY PERSON (INCLUDING THE PERSON FROM WHOM INDEMNIFICATION IS SOUGHT) ALLEGES OR PROVES THE SOLE, CONCURRENT, CONTRIBUTORY
OR COMPARATIVE NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION OR THE SOLE OR CONCURRENT STRICT LIABILITY IMPOSED UPON THE PERSON
SEEKING INDEMNIFICATION.

 

5.6Limitations
on Indemnification Obligation. Sellers and Owners shall not be liable for indemnification to Buyer under Section 5.2(a) of
this Agreement until the aggregate amount of all Indemnification Claims of Buyer under Section 5.2(a) exceeds One Hundred Thousand
Dollars ($100,000) (the “Threshold Amount”), at which time Buyer shall be entitled to recover the aggregate
amount of all Indemnification Claims, including the Threshold Amount. Buyer shall provide the Sellers and Owners with notice of
all Indemnification Claims included in the Threshold Amount. The maximum liability of the Sellers under this Agreement for indemnification
obligations under Section 5.2(a) shall not exceed twenty five percent (25%) of the Purchase Price (such maximum liability amount,
the “Cap”). Notwithstanding anything to the contrary in this Agreement, the Threshold Amount and the Cap shall
not apply in the event of fraud, intentional misrepresentation or willful and knowing breach of a provision by the indemnifying
party, or in the event of a breach of a Fundamental Representation.  Without limiting the effect of any other limitation
contained in this Article V, for purposes of computing the amount of any Damages incurred by any Indemnified Person under this
Article V, there shall be deducted an amount equal to the amount of any amounts the Indemnified Person actually collects from
third parties in connection with any Damages for which indemnification is sought.

 

5.7Use
of Holdback. Any obligation of the Sellers or the Owners under Section 5.2 shall initially be satisfied from the Holdback
Amount according to the terms set forth in this Article V and the Escrow Agreement. To the extent the Holdback Amount is insufficient
to satisfy an amount payable to Buyer under Section 5.2, each Seller and each Owner shall be jointly and severally responsible
for paying the balance to Buyer within fourteen (14) days following written notice from Buyer of such determination. Any of the
Holdback Amount remaining and not subject to pending claims as of the Holdback Disbursement Date shall be paid to Sellers as set
forth in Section 2.3.

 

    	 	- 26 -	 

     

    

 

ARTICLE
VI

TAX MATTERS

 

6.1Tax
Matters.

 

(a)Tax
Cooperation and Exchange of Information. From and after the Closing Date, Sellers, Owners and Buyer will cooperate in good
faith and render reasonable assistance to the other parties in connection with the filing of Tax Returns, any audit or Proceeding
with respect to Taxes (a “Tax Proceeding”), or any other Proceeding, in each case relating to the Assets or
the Business, as and to the extent reasonably requested by the other parties hereto. Such cooperation shall include (i) the retention
and (upon a party's request) the provision of records and information which are reasonably relevant to the preparation of Tax
Returns or to any such Proceeding and (ii) making relevant employees available on a mutually convenient basis to provide additional
information and explanation of any material provided hereunder. Sellers, Owners and Buyer shall (x) retain all books and records
with respect to Tax matters pertinent to the Assets relating to any period beginning before the Closing Date until the expiration
of all relevant statutes of limitations (and, to the extent notified by a party hereto, any extensions thereof), and abide by
all record retention agreements entered into with any Governmental Body with respect to Taxes (with respect to agreements of another
party, to the extent notified thereof) and (y) give the other parties to this Agreement reasonable written notice prior to transferring,
destroying or discarding any such books and records. Sellers shall control and resolve any Tax Proceeding relating to Taxes for
which Sellers would be required to indemnify Buyer hereunder; provided that Sellers shall obtain the consent of Buyer, not to
be unreasonably withheld, conditioned or delayed, prior to settling a Tax Proceeding in a manner that could increase Buyer’s
Tax liability.

 

(b)Transfer
Taxes. Any Transfer Taxes shall be borne solely by Owners and Sellers. Buyer and Sellers agree to cooperate in the execution
and delivery of all instruments and certificates reasonably necessary to minimize the amount of any such Transfer Taxes and to
enable the Buyer and/or Sellers to comply with any pre-Closing filing requirements, Sellers bearing the cost and expense thereof.

 

(c)Tax
Apportionment. Except for Transfer Taxes (which are addressed in Section 6.1(b)), all real property Taxes, personal property
Taxes and similar ad valorem obligations levied with respect to the Assets for a taxable period that includes (but does not end
on) the Closing Date (collectively, the “Apportioned Obligations”) shall be apportioned between Sellers and
Buyer as of the Closing Date based on the number of days of such taxable period ending prior the Closing Date (“Pre-Closing
Apportioned Period”) and the number of days of such taxable period beginning on the Closing Date through the end of
such taxable period (the “Post-Closing Apportioned Period”). Notwithstanding the foregoing, all Taxes based
on income, receipts and payments shall be apportioned between Sellers and Buyer based on a “closing of the books”
methodology. Sellers shall be liable for the proportionate amount of the Apportioned Obligations that is attributable to the Pre-Closing
Apportioned Period (the “Pre-Closing Apportioned Obligations”). Buyer shall be liable for the proportionate
amount of the Apportioned Obligations that is attributable to the Post-Closing Apportioned Period ("Post-Closing Apportioned
Obligations"). To the extent Sellers are responsible hereunder for a Pre-Closing Apportioned Obligation (other than those
taken into account in determining the Adjustment Amount) that Buyer is required to pay under applicable Legal Requirements, Sellers
shall promptly pay such amount to such Buyer upon such Buyer's request.

 

    	 	- 27 -	 

     

    

 

ARTICLE
VII

GENERAL PROVISIONS

 

7.1Expenses.
Except as otherwise expressly provided in this Agreement, each Party to this Agreement will bear its respective expenses incurred
in connection with the preparation, execution, and performance of this Agreement and the Contemplated Transactions, including
all fees and expenses of agents, representatives, counsel, and accountants.

 

7.2Public
Announcements. This Agreement, its negotiation, and any information disclosed relating to the underlying transaction is strictly
confidential and subject to the Mutual Nondisclosure Agreement between the Parties dated as of November 23, 2015 (the “NDA”).
Notwithstanding the aforementioned, upon execution of this Agreement or the Closing, Buyer and the Owner(s) may each issue a press
release announcing, or otherwise publicly announce (including by filing a Current Report on Form 8-K or an oral announcement at,
for example, an earnings conference call), such execution or Closing subject to the other party being provided a meaningful prior
opportunity to review and comment upon such press release or other public announcement. Sellers and Buyer will consult with each
other concerning the means by which Sellers’ employees, customers, and suppliers and others having dealings with Sellers
will be informed of the Contemplated Transactions, and Buyer will have the right to be present for any such communication.

 

7.3Confidentiality.
A Party disclosing Confidential Information (“Disclosing Party”) is not waiving, and will not be deemed to
have waived or diminished, any of its attorney work product protections, attorney-client privileges or similar protections and
privileges as a result of disclosing its Confidential Information (including Confidential Information related to pending or threatened
litigation) to the other Party (“Receiving Party”), regardless of whether the Disclosing Party has asserted,
or is or may be entitled to assert, such privileges and protections. The Parties (a) share a common legal and commercial interest
in all of the Disclosing Party's Confidential Information that is subject to such privileges and protections; (b) are or may become
joint defendants in Proceedings to which the Disclosing Party's Confidential Information covered by such protections and privileges
relates; (c) intend that such privileges and protections remain intact should either Party become subject to any actual or threatened
Proceeding to which the Disclosing Party's Confidential Information covered by such protections and privileges relates; and (d)
intend that after the Closing the Receiving Party shall have the right to assert such protections and privileges. No Receiving
Party shall admit, claim or contend, in Proceedings involving either party or otherwise, that any Disclosing Party waived any
of its attorney work-product protections, attorney-client privileges or similar protections and privileges with respect to any
information, documents or other material not disclosed to a Receiving Party due to the Disclosing Party disclosing its Confidential
Information (including Confidential Information related to pending or threatened litigation) to the Receiving Party.

 

7.4Notices.
All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been
duly given when: (a) delivered by hand (with written confirmation of receipt); (b) sent by fax (with written confirmation
of receipt), provided that a copy is mailed by registered mail, return receipt requested; or (c) when received by the addressee,
if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and
fax numbers set forth below (or to such other addresses and fax numbers as a party may designate by notice to the other parties):

 

	Sellers,
    Owners:	InterCloud
                                         Systems, Inc. 

	 	1030
                                         Broad Street, Suite 102

        

	 	Shrewsbury,
                                         NJ 07702 

	 	Attention:
                                         Chief Financial Officer

        

 

    	 	- 28 -	 

     

    

 

 

	with
    a mandatory copy to:	Pryor
                                         Cashman LLP

        

	 	7
                                         Times Square 

	 	New
                                         York, NY 10036

        

	 	Facsimile:
                                         (212) 798-6319 

	 	Attention:  M.
    Ali Panjwani, Esq.
	 	 
	Buyer:	j2
    Global, Inc.
	 	Attention:
    Legal Department
        

	 	6922
                                         Hollywood Blvd., 5th Floor

        

	 	Los
                                         Angeles, CA 90028 

 

7.5Governing
Law; Jurisdiction; Service of Process. Any action or proceeding seeking to enforce any provision of, or based on any right
arising out of, this Agreement and all of the transactions contemplated hereby shall be governed by and construed in accordance
with the laws of the State of Delaware, without giving effect to any choice or conflict of law provision or rule (whether of the
State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State
of Delaware. Each of the Parties agrees that any suit, action or other proceeding it may bring arising out of or relating to this
Agreement or any of the transactions contemplated hereby shall be brought in a court of competent jurisdiction in Los Angeles,
California, and each Party each irrevocably and unconditionally submits and consents to the exclusive jurisdiction of such courts
for the purposes of any suit, action or other proceeding arising out of this Agreement or any transactions contemplated hereby,
and hereby waives the right to assert the lack of personal or subject matter jurisdiction or improper venue in connection with
any such suit, action or other proceeding. Process in any action or proceeding referred to in the preceding sentence may be served
on any party anywhere in the world.

 

7.6Further
Assurances. The Parties agree: (a) to furnish upon request to each other such further information; (b) to execute
and deliver to each other such other documents; and (c) to do such other acts and things, all as the other party may reasonably
request for the purpose of carrying out the intent of this Agreement and the documents referred to in this Agreement. Without
limiting the foregoing, in the event Sellers receive any remittance from any account debtors with respect to the Accounts Receivables,
Sellers will endorse such remittance to the order of Buyer and forward it to Buyer immediately upon receipt thereof.

 

7.7Payment
of Retained Liabilities. In addition to payment of Taxes pursuant to Section 6.1, the Sellers will pay, or make adequate provision
for the payment, in full of all Liabilities of Sellers that are not Assumed Liabilities. If any such Liabilities are not so paid
or provided for, or if Buyer reasonably determines that failure to make any payments will impair Buyer's use or enjoyment of the
Assets or conduct of the Business, Buyer may, at any time after the Closing, elect to pay any or all of such Liabilities directly
(but will have no obligation to do so) and treat such payment as Damages under this Agreement so that Buyer will be entitled to
exercise the remedies available to it under ARTICLE 5 of this Agreement.

 

7.8Waiver.
The rights and remedies of the Parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay
by any party in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement
will operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege
will preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege.
To the maximum extent permitted by applicable law: (a) no waiver that may be given by a Party will be applicable except in
the specific instance for which it is given; and (b) no notice to or demand on one Party will be deemed to be a waiver of
any obligation of such Party or of the right of the Party giving such notice or demand to take further action without notice or
demand as provided in this Agreement or the documents referred to in this Agreement.

 

    	 	- 29 -	 

     

    

 

7.9Entire
Agreement and Modification. This Agreement, the attached Exhibits and Schedules, supersede all prior agreements between the
Parties with respect to its subject matter and constitute (along with the documents referred to in this Agreement) a complete
and exclusive statement of the terms of the agreement between the Parties with respect to its subject matter except for the NDA,
which shall remain in full force and effect with respect to the “Confidential Information” described therein and shall
co-exist with this Agreement. This Agreement may not be amended except by a written agreement executed by the Party to be charged
with the amendment.

 

7.10Disclosure
Schedule.

 

(a)Each
disclosure in the Disclosure Schedule, and in any supplement thereto, will be deemed to relate only to the representations and
warranties in the Section of the Agreement having the same number as the Part of the Disclosure Schedule in which such disclosure
is made and not to any other representation or warranty in this Agreement.

 

(b)In
the event of any inconsistency between the statements in the body of this Agreement and those in the Disclosure Schedule (other
than an exception expressly set forth as such in the Disclosure Schedule with respect to a specifically identified representation
or warranty), the statements in the body of this Agreement will control.

 

7.11Assignments;
Successors; No Third-Party Rights. No Party may assign any of its rights under this Agreement without the prior consent of
the other Parties, except that Buyer may assign any of its rights under this Agreement to any entity directly or indirectly wholly
owned by j2 Global, Inc. This Agreement will apply to, be binding in all respects upon, and inure to the benefit of the successors
and permitted assigns of the Parties. Nothing expressed or referred to in this Agreement will be construed to give any Person
other than the Parties to this Agreement any legal or equitable right, remedy, or claim under or with respect to this Agreement
or any provision of this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit
of the Parties to this Agreement and their successors and assigns.

 

7.12Severability.
If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in
part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

7.13Section
Headings; Construction. The headings of Sections in this Agreement are provided for convenience only and will not affect its
construction or interpretation. All references to “Section” or “Sections” refer to the corresponding Section
or Sections of this Agreement. All words used in this Agreement will be construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms.

 

7.14Time
of Essence. With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence.

 

7.15Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement
and all of which, when taken together, will be deemed to constitute one and the same agreement.

 

[Signature
Page Follows]

 

    	 	- 30 -	 

     

    

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Asset Purchase Agreement as of the date first above written.

 

	 	BUYER
	 	 	 
	 	KEEPITSAFE, INC.
	 	 	 
	 	By:	/s/
    Jeremy Rossen
	 	Name:	Jeremy
    Rossen
	 	Title:  	Vice
    President, General Counsel
	 	 	 
	 	SELLERS
	 	 	 
	 	U.S. DATA SECURITY ACQUISITION, LLC
	 	 	 
	 	By:  	/s/
    Daniel Sullivan
	 	Name:	Daniel
    Sullivan
	 	Title:  	Chief
    Accounting Officer
	 	 	 
	 	VAULTLOGIX, LLC
	 	 	 
	 	By:  	/s/
    Daniel Sullivan
	 	Name:	Daniel
    Sullivan
	 	Title:  	Chief
    Accounting Officer
	 	 	 
	 	DATA PROTECTION SERVICES, L.L.C.
	 	 	 
	 	By:  	/s/
    Daniel Sullivan
	 	Name:	Daniel
    Sullivan
	 	Title:  	Chief
    Accounting Officer
	 	 	 
	 	OWNERS
	 	 	 
	 	INTERCLOUD SYSTEMS, INC.
	 	 	 
	 	By:  	/s/
    Daniel Sullivan
	 	Name:	Daniel
    Sullivan
	 	Title:  	Chief
    Accounting Officer

 

     

     

    

 

SCHEDULE
I

 

Definitions

 

For
purposes of this Agreement, the following terms have the meanings specified or referred to in this Schedule I:

 

“Accounts
Receivable”—as defined in Section 3.8.

 

“Affiliate”
means with respect to any Person, any Person which, directly or indirectly, owns or controls, is under common ownership or
control with, or is owned or controlled by such Person. A Person shall be deemed to be “controlled by” another Person
if such other Person possesses, directly or indirectly, power to direct or cause the direction of the management or policies of
such Person or the disposition of its assets or property, whether by stock, equity or other ownership, contract, arrangement or
understanding, or otherwise.

 

“Agreement”—as
defined in first paragraph of this Agreement.

 

“Adjustment
Amount”—as defined in Section 2.3(c).

 

“Apportioned
Obligations”—as defined in Section 6.1(c).

 

“Apportioned
Period”—as defined in Section 6.1(c).

 

“Appraisal”—as
defined in Section 2.8.

  

“Assets”—as
defined in Section 2.1(a).

 

“Assigned
Contracts”—as defined in Section 2.1(a)iii.

 

“Assignment
and Assumption Agreement”—as defined in Section 2.5(a)ii.

 

“Assignment
of Intellectual Property Assets”—as defined in Section 2.5(a)iii

 

“Assumed
Liabilities”—as defined in Section 2.2(a).

 

“Balance
Sheet”—as defined in Section 3.4.

 

“Bill
of Sale”—as defined in Section 2.5(a)i.

 

“Breach”—a
“Breach” of a representation, warranty, covenant, obligation, or other provision of this Agreement or any instrument
delivered pursuant to this Agreement will be deemed to have occurred if there is or has been (a) any inaccuracy in or breach of,
or any failure to perform or comply with, such representation, warranty, covenant, obligation, or other provision, or (b) any
claim (by any Person) or other occurrence or circumstance that is or was inconsistent with such representation, warranty, covenant,
obligation, or other provision, and the term “Breach” means any such inaccuracy, breach, failure, claim, occurrence,
or circumstance.

 

“Business”—as
defined in the introduction of this Agreement.

 

     

     

    

 

“Business
IT” – as defined in Section 3.16(b).

 

“Buyer”—as
defined in the first paragraph of this Agreement.

 

“Buyer’s
Closing Documents”—as defined in Section 4.2(a).

 

“Closing”—as
defined in Section 2.4.

 

“Closing
Date”—as defined in Section 2.4.

 

“Closing
Date Financial Statements”—as defined in Section 2.6(b).

 

“Closing
Payment”—as defined in Section 2.3.

 

“Confidential
Information”—as defined in the NDA, modified by adding the following sentence, “Confidential Information
shall also include any Confidential Information that was not marked or designated as “Confidential, “Proprietary,”
or some similar designation at or prior to the time of disclosure, but which by its nature and the circumstances of its disclosure
it would reasonably would be considered as confidential by a reasonable person similarly situated as the receiving party.”

 

“Consent”—any
approval, consent, ratification, waiver, or other authorization (including any Governmental Authorization).

 

“Contemplated
Transactions”—all of the transactions contemplated by this Agreement, including: (a) the purchase by Buyer from
Sellers of the Business and the Assets; and (b) the performance by Buyer, Owners and Sellers of their respective covenants and
obligations under this Agreement, including without limitation, the Transition Services Agreement.

 

“Contract”—any
agreement, contract, obligation, promise, or undertaking (whether written or oral and whether express or implied) that is legally
binding.

 

“Copyrights”—as
defined in Section 3.15(a)iii.

 

“Current”—as
defined in Section 3.8.

 

“Customer
Contracts” —as defined in Section 2.1(a)iii.

 

“Damages”—as
defined in Section 5.2.

 

“Developers”—as
defined in Section 3.15(f).

 

“Disclosing
Party”—as defined in Section 7.3.

 

“Disclosure
Schedule”—the Disclosure Schedule delivered by Sellers to Buyer concurrently with the execution and delivery of
this Agreement, a copy of which is attached hereto.

 

“Encumbrance”—any
charge, claim, community property interest, condition, equitable interest, lien, option, pledge, security interest, right of first
refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any
other attribute of ownership.

 

    	 	- 2 -	 

     

    

 

“Equity
Interests”—as defined in Section 3.3.

 

“Estimated
Adjustment Amount”—as defined in Section 2.6(a).

 

“Excluded
Assets”—as defined in Section 2.1(b).

 

“Excluded
Contracts”—as defined in Section v.

 

“Final
Adjustment Amount”—as defined in Section 2.6(c).

 

“Financial
Statements”—as defined in Section 3.4.

 

“Fundamental
Representation”—as defined in Section 5.1.

 

“GAAP”
means US generally accepted accounting principles, consistently applied.

 

“Governmental
Authorization”—any approval, consent, license, permit, waiver, or other authorization issued, granted, given,
or otherwise made available by or under the authority of any Governmental Body or pursuant to any Legal Requirement.

 

“Governmental
Body”—any:

 

		(a)	nation,
                                         state, county, city, town, village, district, or other jurisdiction of any nature;

		(b)	federal,
                                         state, local, municipal, foreign, or other government;

		(c)	governmental
                                         or quasi-governmental authority of any nature (including any governmental agency, branch,
                                         department, official, or entity and any court or other tribunal);

		(d)	multi-national
                                         organization or body; or

		(e)	body
                                         exercising, or entitled to exercise, any administrative, executive, judicial, legislative,
                                         police, regulatory, or taxing authority or power of any nature.

 

“Holdback
Amount”—as defined in Section 2.3.

  

“Holdback
Disbursement Date”—as defined in Section 2.3.

 

“Independent
Accountants”—as defined in Section 2.6(b).

 

“Indemnified
Persons”—as defined in Section 5.2.

 

“Indemnitor”
– means any Party having any Liability to any Indemnified Person under this Agreement.

 

“Intellectual
Property Assets”—as defined in Section 3.15(a).

 

“Information
Technology” – means all computer systems, communication systems, Software and hardware, whether owned,
used or licensed.

 

“Knowledge”—an
individual will be deemed to have “Knowledge” of a particular fact or other matter if (a) such individual is actually
aware of such fact or other matter; or (b) such individual would reasonably be deemed to have as the result of his position and
duties on behalf of the representing party. A Person (other than an individual) will be deemed to have “Knowledge”
of a particular fact or other matter if any individual who is serving as a director, officer, partner, executor, or trustee of
such Person (or in any similar capacity) has, or at any time had, Knowledge of such fact or other matter.

 

    	 	- 3 -	 

     

    

 

“Legal
Requirement”—any federal, state, local, municipal, foreign, international, multinational, or other administrative
order, constitution, law, ordinance, principle of common law, regulation, statute, or treaty.

 

“Material
Contract”—as defined in Section 3.13(a).

 

“Noncompetition
Agreements”—as defined in Section 2.5(a)v.

 

“Marks”
—as defined in Section 3.15(a)i.

 

“NDA”—as
defined in Section 7.2.

 

“Noncompetition
Agreements”—as defined in Section 2.5(a)v.

 

“Order”—any
award, decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any court, administrative
agency, or other Governmental Body or by any arbitrator.

 

“Ordinary
Course of Business”—an action taken by a Person will be deemed to have been taken in the “Ordinary Course
of Business” only if: (a) such action is consistent with the past practices of such Person and is taken in the ordinary
course of the normal day-to-day operations of such Person; (b) such action is not required to be authorized by the board of directors
of such Person; and (c) such action is similar in nature and magnitude to actions customarily taken, without any authorization
by the board of directors (or by any Person or group of Persons exercising similar authority), in the ordinary course of the normal
day-to-day operations of other Persons that are in the same line of business as such Person.

 

“Organizational
Documents”—(a) the articles of organization and bylaws of a corporation or the equivalent thereof; and (b)
any amendment to any of the foregoing.

 

“Owner”
or “Owners”—as defined in the preamble to this Agreement.

 

“Party”
or “Parties”—as defined in the preamble to this Agreement.

 

“Patents”
—as defined in Section 3.15(a)ii.

 

“Permit” —means any permit, license, certificate, approval, consent, notice, waiver, franchise, registration,
filing, accreditation, or other similar authorization required by any Legal Requirement, Governmental Body, or Contract.

 

“Person”—any
individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union, or other entity or Governmental Body.

 

“Pre-Closing
Taxes”—(i) all Taxes of the Seller, the Owners or any Affiliates of the foregoing, or for which the Seller, the
Owners or any Affiliates of the foregoing is liable, other than Taxes attributable to the Assets or the Business for periods (or
portions thereof) ending after the Closing Date (as determined under Section 6.1(c)) for any taxable period; (ii) all Taxes related
to the Excluded Assets or Retained Liabilities for any taxable period; (iii) all Taxes relating to the operation of the Business
or the Assets or the Assumed Liabilities for any taxable period that ends on or before the Closing Date and, with respect to any
taxable period beginning on or before and ending after the Closing Date, for the portion of such taxable period ending on the
Closing Date, determined pursuant to Section 6.1(c); and (iv) Conveyance Taxes.

 

    	 	- 4 -	 

     

    

 

“Preexisting
Code”—as defined in Section 3.15(f).

 

“Prepaid
Adjustment”—as defined in Section 2.3(c).

 

“Prepaid
Amounts” – any payment received by Sellers prior to the Closing Date for services (a) that have not been rendered
by Sellers as of the Closing Date, and (b) the performance of which will be assumed by Buyer at Closing. For the avoidance of
doubt, such amount includes both deferred revenues and unearned revenues.

 

“Post-Closing
Apportioned Period”—as defined in Section 6.1(c).

 

“Post-Closing
Apportioned Period”—as defined in Section 6.1(c).

 

“Proceeding”—any
action, arbitration, audit, hearing, investigation, litigation, or suit (whether civil, criminal, administrative, investigative,
or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Body or arbitrator.

 

“Publicly
Available Software” – as defined in Section 3.15(g). 

 

“Purchase
Price”—as defined in Section 2.3.

 

“Purchase
Price Allocation”—as defined in Section 2.8.

 

“Receivables
Adjustment”—as defined in Section 2.3(a).

 

“Receiving
Party”—as defined in Section 7.3.

 

“Related
Person”—with respect to a particular individual:

 

		(a)	each
                                         other member of such individual’s Family;

		(b)	any
                                         Person that is directly or indirectly controlled by such individual or one or more members
                                         of such individual’s Family;

		(c)	any
                                         Person in which such individual or members of such individual’s Family hold (individually
                                         or in the aggregate) a Material Interest; and

		(d)	any
                                         Person with respect to which such individual or one or more members of such individual’s
                                         Family serves as a director, officer, partner, executor, or trustee (or in a similar
                                         capacity).

 

With
respect to a specified Person other than an individual:

 

		(a)	any
                                         Person that directly or indirectly controls, is directly or indirectly controlled by,
                                         or is directly or indirectly under common control with such specified Person;

		(b)	any
                                         Person that holds a Material Interest in such specified Person;

		(c)	each
                                         Person that serves as a director, officer, partner, executor, or trustee of such specified
                                         Person (or in a similar capacity);

		(d)	any
                                         Person in which such specified Person holds a Material Interest;

		(e)	any
                                         Person with respect to which such specified Person serves as a general partner or a trustee
                                         (or in a similar capacity); and

		(f)	any
                                         Related Person of any individual described in clause (b) or (c).

 

    	 	- 5 -	 

     

    

 

For
purposes of this definition, (i) the “Family” of an individual includes (A) the individual, (B) the individual’s
spouse and (C) any other natural person who is related to the individual within the first degree, and (ii) “Material
Interest” means direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange
Act of 1934) of voting securities or other voting interests representing at least 5% of the outstanding voting power of a Person
or equity securities or other equity interests representing at least 5% of the outstanding equity securities or equity interests
in a Person.

  

“Representative”—with
respect to a particular Person, any director, officer, employee, agent, consultant, adviser, or other representative of such Person,
including legal counsel, accountants, and financial advisers.

 

“Retained
Liabilities”—as defined in Section 2.2(b).

 

“Securities
Act” — the Securities Act of 1933, as amended from time to time.

 

“Seller”—as
defined in the first paragraph of this Agreement.

 

“Seller
Contract” —any Contract (a) under which any Seller has or may acquire any rights, (b) under which any Seller has
or may become subject to any obligation or liability, or (c) by which any Seller or any of the assets owned or used by it is or
may become bound.

 

“Seller
Benefit Plans”— shall mean “employee pension benefit plans,” as defined in Section 3(2) of ERISA,
maintained or contributed to by any Seller or in which any Seller participates or participated and which provides benefits to
employees or retired employees of any Seller, including any 401(k) plan.

 

“Seller’s
Closing Documents”—–as defined in Section 3.2(a).

 

“Seller’s
Secretary’s Certificate”—as defined in Section 2.5(a)viii.

 

“Social
Media Accounts” — as defined in Section 3.15(a)iv.

 

“Social
Media Account Names” — as defined in Section 3.15(a)v.

 

“Software”
– as defined in Section 3.15(a)(iii).

 

“System”
–the infrastructure of computers, servers, routers, hubs, switches, workstations, data communications lines and all other
tangible Assets designed and maintained by Seller in order to operate the Business.

 

“Tax”—means
any tax (including any income tax, capital gains tax, value added tax, sales tax, property tax, gift tax, or estate tax), levy,
assessment, tariff, duty (including any customs duty), deficiency, or other fee, and any related charge or amount (including any
fine, penalty, interest, or addition to tax), imposed, assessed, or collected by or under the authority of any Governmental Body
or payable pursuant to any tax-sharing agreement or any other Contract relating to the sharing or payment or any such tax, levy,
assessment, tariff, duty, deficiency, or fee.

 

    	 	- 6 -	 

     

    

 

“Tax
Proceeding”—as defined in Section 6.1(a).

 

“Tax
Return”—any return (including any information return), report, statement, schedule, notice, form, or other document
or information filed with or submitted to, or required to be filed with or submitted to, any Governmental Body in connection with
the determination, assessment, collection, or payment of any Tax or in connection with the administration, implementation, or
enforcement of or compliance with any Legal Requirement relating to any Tax.

 

“Third
Party Claim”—any claim or action made or brought by any Person who is not a party to this Agreement or an Affiliate
of a party to this Agreement.

 

“Threatened”—a
claim, Proceeding, dispute, action, or other matter will be deemed to have been “Threatened” if any demand or statement
has been made (in writing) or any notice has been given (in writing).

  

“Trade
Secrets”—as defined in Section 3.15(a)vi.

 

“Transfer
Taxes” - means any statutory, governmental, federal, state, local, municipal, foreign and other transfer, documentary,
real estate transfer, mortgage recording, sales, use, stamp, registration, value-added and other similar Taxes, and all conveyance
fees, recording charges and other fees and charges (including any penalties and interest) incurred as a result of the sale of
the Transferred Assets or the other transactions contemplated by this Agreement or the Ancillary Agreements (and specifically
excluding any income, net income or gains Tax).

 

“Transition
Services Agreement”—as defined in Section 2.5(a)vi.

  

“WARN
Act”—as defined in Section 3.21(d).

 

    	 	- 7 -	 

     

    

 

EXHIBIT A

 

Form
of Bill of Sale

 

1.Sale
and Transfer of Assets. For good and valuable consideration, the receipt, adequacy and legal sufficiency of which are
hereby acknowledged, and as contemplated by Section 2.1 of that certain Asset Purchase Agreement dated as of February 17,
2016 (the “Purchase Agreement”), to which KeepItSafe, Inc., a Delaware corporation
(“Buyer”), VaultLogix, LLC, a Delaware limited liability company, Data Protection Services, L.L.C., a
Delaware limited liability company, and U.S. Data Security Acquisition, LLC, a Delaware limited liability company (each a
“Seller”, and collectively “Sellers”), and each individual owner of interests in
Sellers as set forth on the signature page thereto (each an “Owner,” and collectively, the
“Owners”) are parties, Sellers hereby sell, transfer, assign, convey, grant and deliver to Buyer,
effective as of 12:01 a.m. (Pacific Standard Time) on February 17, 2016 (the “Effective Time”), all of
Sellers’ right, title and interest in and to all of the Assets, including but not limited to the Intellectual
Property Assets (as defined in the Purchase Agreement).

 

2.Further
Actions. Each Seller and each Owner covenants and agrees to warrant and defend the sale, transfer, assignment,
conveyance, grant and delivery of the Assets hereby made against all persons whomsoever, to take all steps reasonably
necessary to establish the record of Buyer’s title to the Assets, including but not limited to the Intellectual
Property Assets, and, at the request of Buyer, to execute and deliver further instruments of transfer and assignment and take
such other action as Buyer may reasonably request to more effectively transfer and assign to and vest in Buyer each of the
Assets, including but not limited to the Intellectual Property Assets, all at the sole cost and expense of
Sellers.

 

3.Limited
Power of Attorney. Without limiting Section 2 hereof, each Seller hereby constitutes and appoints Buyer the true and
lawful agent and attorney-in-fact of such Seller, with full power of substitution and resubstitution, in whole or in part, in
the name and stead of such Seller but on behalf and for the benefit of Buyer and Buyer’s successors and assigns, from
time to time:

 

(a)to
demand, receive and collect any and all of the Assets, including but not limited to the Intellectual Property Assets, and to give
receipts and releases for and with respect to the same, or any part thereof;

 

(b)to
institute and prosecute, in the name of such Seller or otherwise, any and all proceedings at law, in equity or otherwise, that
Buyer or Buyer’s successors and assigns may deem proper in order to collect or reduce to possession any of the Assets, including
but not limited to the Intellectual Property Assets, and in order to collect or enforce any claim or right of any kind hereby
assigned or transferred, or intended so to be; and

 

(c)to
do all things legally permissible, required or reasonably deemed by Buyer to be required to recover and collect the Assets, including
but not limited to the Intellectual Property Assets, and to use such Seller's name in such manner as Buyer may reasonably deem
necessary for the collection and recovery of same.

 

Each
Seller hereby declaring that the foregoing powers are coupled with an interest and are and shall be irrevocable by such Seller.

 

4.Terms
of the Purchase Agreement. The terms of the Purchase Agreement, including but not limited to each Seller's
representations, warranties, covenants, agreements and indemnities relating to the Assets, including but not limited to the
Intellectual Property Assets, are incorporated herein by this reference. Each Seller acknowledges and agrees that the
representations, warranties, covenants, agreements and indemnities contained in the Purchase Agreement shall not be
superseded hereby but shall remain in full force and effect to the full extent provided therein. In the event of any conflict
or inconsistency between the terms of the Purchase Agreement and the terms hereof, the terms of the Purchase Agreement shall
govern.

 

[Signature
Page Follows]

 

     

     

    

 

IN
WITNESS WHEREOF, each Seller has executed and delivered this Bill of Sale as of February 17, 2016.

 

	 	VAULTLOGIX, LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	DATA PROTECTION SERVICES, L.L.C.
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:
    	 
	 	 	 
	 	U.S. DATA SECURITY ACQUISITION, LLC
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 

 

Signature
Page to Bill of Sale

 

     

     

    

 

EXHIBIT
B

 

Form
of Assignment and Assumption Agreement

 

This
Assignment and Assumption Agreement (this “Agreement”) is made and entered into as of February 17, 2016, by
and among VaultLogix, LLC, a Delaware limited liability company, Data Protection Services, L.L.C., a Delaware limited liability
company, and U.S. Data Security Acquisition, LLC, a Delaware limited liability company (each an “Assignor”
and collectively, “Assignors”), and KeepItSafe, Inc., a Delaware corporation (“Assignee”).

 

WHEREAS,
Assignors and Assignee are parties to that certain Asset Purchase Agreement dated as of February 17, 2016 (the “Purchase
Agreement”), pursuant to which Assignee has purchased the Assets (as defined in the Purchase Agreement); and

 

WHEREAS,
pursuant to the Purchase Agreement, Assignors have agreed to assign certain rights and agreements to Assignee, and Assignee has
agreed to assume certain obligations of Assignors, as set forth herein, and this Agreement is contemplated by Section 2.1 of the
Purchase Agreement;

 

NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants contained herein, and for other good and valuable
consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

 

1.
Capitalized Terms. Capitalized terms used but not defined herein shall have the meanings for such terms that are set
forth in the Purchase Agreement.

 

2. Assignment
and Assumption. Effective as of 12:01 a.m. (Pacific Standard Time) on February 17, 2016 (the “Effective
Time”), each Assignor hereby assigns, sells, transfers and sets over (collectively, the
“Assignment”) to Assignee all of such Assignor’s right, title, benefit, privileges and interest in
and to, and all of such Assignor’s burdens, obligations and liabilities in connection with, each of the Assumed
Liabilities. Assignee hereby accepts the Assignment and assumes and agrees to observe and perform all of the duties,
obligations, terms, provisions and covenants, and to pay and discharge all of the liabilities of Assignors to be observed,
performed, paid or discharged from and after the Closing, in connection with the Assumed Liabilities. Assignee assumes no
Retained Liabilities, and the parties hereto agree that all such Retained Liabilities shall remain the sole responsibility of
Assignors.

 

3. Terms
of the Purchase Agreement. The terms of the Purchase Agreement, including but not limited to each Assignor's
representations, warranties, covenants, agreements and indemnities relating to the Assumed Liabilities, are incorporated
herein by this reference. Each Assignor acknowledges and agrees that the representations, warranties, covenants, agreements
and indemnities contained in the Purchase Agreement shall not be superseded hereby but shall remain in full force and effect
to the full extent provided therein. In the event of any conflict or inconsistency between the terms of the Purchase
Agreement and the terms hereof, the terms of the Purchase Agreement shall govern.

 

4. Further
Actions. Each of the parties hereto covenants and agrees, at its own expense, to execute and deliver, at the request of
the other party hereto, such further instruments of transfer and assignment and to take such other action as such other party
may reasonably request to more effectively consummate the assignments and assumptions contemplated by this Agreement. 

 

     

     

    

 

5. Jurisdiction; Service of Process.
Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement and all of
the transactions contemplated hereby shall be governed by and construed in accordance with the laws of the State of Delaware,
without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Delaware. Each of the Parties agrees
that any suit, action or other proceeding it may bring arising out of or relating to this Agreement or any of the transactions
contemplated shall be brought in a court of competent jurisdiction in Los Angeles, California, and each Party each irrevocably
and unconditionally submits and consents to the exclusive jurisdiction of such courts for the purposes of any suit, action or
other proceeding arising out of this Agreement or any transactions contemplated hereby, and hereby waives the right to assert
the lack of personal or subject matter jurisdiction or improper venue in connection with any such suit, action or other proceeding.

 

6. Assignments;
Successors; No Third-Party Rights. No Party hereto may assign any of its rights under this Agreement without the prior
consent of the other parties, except that Buyer may assign any of its rights under this Agreement to any Affiliate of j2
Global, Inc. Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon, and inure to
the benefit of the successors and permitted assigns of the parties. Nothing expressed or referred to in this Agreement will
be construed to give any Person other than the parties to this Agreement any legal or equitable right, remedy, or claim under
or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its provisions and conditions
are for the sole and exclusive benefit of the parties to this Agreement and their successors and assigns.

 

7. Section
Headings; Construction. The headings of Sections in this Agreement are provided for convenience only and will not affect
its construction or interpretation. All references to “Section” or “Sections” refer to the
corresponding Section or Sections of this Agreement. All words used in this Agreement will be construed to be of such gender
or number as the circumstances require. Unless otherwise expressly provided, the word “including” does not limit
the preceding words or terms.

 

8. Governing
Law. This Agreement will be governed by the laws of the State of Delaware without regard to conflicts of laws
principles.

 

9. Counterparts. This
Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.

 

[Signature
Page Follows]

 

     

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Assignment and Assumption Agreement as of the date first above written.

 	 	ASSIGNEE
	 	 
	 	KEEPITSAFE, INC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	ASSIGNORS
	 	 	 
	 	VAULTLOGIX, LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	DATA PROTECTION SERVICES, L.L.C.
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:
    	 
	 	 	 
	 	U.S. DATA SECURITY ACQUISITION, LLC
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 

 

Signature
Page to Assignment and Assumption Agreement 

 

     

     

    

 

EXHIBIT
C

 

Form
of Assignment of Intellectual Property Assets

 

This
ASSIGNMENT OF INTELLECTUAL PROPERTY ASSETS (“Assignment”) is made as of February 17, 2016, from VaultLogix,
LLC, a Delaware limited liability company, Data Protection Services, L.L.C., a Delaware limited liability company, and U.S. Data
Security Acquisition, LLC, a Delaware limited liability company (each an “Assignor”, and collectively “Assignors”),
to KeepItSafe, Inc., a Delaware corporation (“Assignee”). Terms not specifically defined herein shall have
the meaning ascribed to them in the Asset Purchase Agreement dated as of February 17, 2016, by and among Assignors, Assignee and
the Owners (the “Agreement”).

 

RECITALS

 

WHEREAS,
pursuant to the Agreement, each Assignor has agreed to sell to Assignee and Assignee has agreed to buy from each Assignor the
Assets, including without limitation the Intellectual Property Assets. Pursuant to the Agreement, each Assignor has agreed to
execute such instruments as the Assignee may reasonably request in order to more effectively assign, transfer, grant, convey,
assure and confirm to Assignee and its successors and assigns, or to aid and assist in the collection of or reducing to possession
by the Assignee of, all of such Intellectual Property Assets.

 

WHEREAS,
in accordance therewith, each Assignor desires to transfer and assign to Assignee, and Assignee desires to accept the transfer
and assignment of, all of each Assignor’s worldwide right, title and interest in, to and under each Assignor’s registered
and unregistered domestic and foreign Intellectual Property Assets listed on Schedule A annexed hereto and incorporated
herein by reference.

 

NOW,
THEREFORE, each Assignor, for and in exchange for the payment of the purchase price set forth in the Agreement, the receipt of
which is hereby acknowledged, does hereby transfer and assign to Assignee, and Assignee hereby accepts the transfer and assignment
of, all of each Assignor’s worldwide right, title and interest in, to and under the Intellectual Property Assets, together
with the goodwill of the business associated therewith and which is symbolized thereby, all rights to sue for infringement of
any Intellectual Property Asset, whether arising prior to or subsequent to the date of this Assignment of Intellectual Property
Assets, and any and all renewals and extensions thereof that may hereafter be secured under the laws now or hereafter in effect
in the United States, Canada and in any other jurisdiction, the same to be held and enjoyed by the said Assignee, their successors
and assigns from and after the date hereof as fully and entirely as the same would have been held and enjoyed by the said Assignors
had this Assignment of Intellectual Property Assets not been made.

 

Except
to the extent that federal law preempts state law with respect to the matters covered hereby, this Assignment of Intellectual
Property Assets shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect
to the principles of conflicts of laws thereof.

 

[Signature
Page Follows]

 

     

     

    

 

IN
WITNESS WHEREOF, each Assignors has caused its duly authorized officer to execute and deliver this Assignment of Intellectual
Property Assets as of the date first above written.

 

	 	ASSIGNEE
	 	 
	 	KEEPITSAFE, INC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	ASSIGNORS
	 	 	 
	 	VAULTLOGIX, LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	DATA PROTECTION SERVICES, L.L.C.
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:
    	 
	 	 	 
	 	U.S. DATA SECURITY ACQUISITION, LLC
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 

 

Signature Page to Assignment of Intellectual Property Assets

 

     

     

    

 

Schedule
A

 

Intellectual
Property Assets

 

Advantage
backup software Vaultlogix Information portal Vaultlogix Internal billing system

 

Domain
Names 

 

●   
Datapreserve.com

●   

Datapreservesucks.com

●   

Dataprotection.com

●   

Mydatapreserve.com

●   

Onlineserverbackup.com

●   

remotebackup.com

●   

remotedata-backup.com

●   

remotedata-backup.net

●   

singularbackup.com

●   

singularbackup.net

●   

usdatatrust.com

●   

utility-backup.com

●   

utilitybackupsolutions.com

●   

vaultlogics.com

●   

vaultlogics.net

●   

vaultlogix.com

●   

vaultlogix.co

●   

vaultlogix.net

●   

vaultlogixsucks.com

●   

vaultlogixsucks.net

 

Social
Media Accounts and Social Media Account Names

 

	Site	Search term
	 	 
	Facebook	Vaultlogix
	 	 
	Linkedin	Vaultlogix
	 	 
	Google+	Vaultlogix
	 	 
	Twitter	Vaultlogix

 

Software

 

	Software	Developers	Preexisting
    Code
	Advantage	Robo
    DRS, LLC	N/A

 

     

     

    

 

	Software	Developers	Preexisting
    Code
	VIP
    and Billing Portal	Braintech	N/A
	All
    software relating to the VaultLogix platform	 	 
	All
    other software owned by any Seller relating to the online backup business of Sellers	 	 

 

Marks

 

	Trademark	Registration
    

    Number	Record
    owner	Country	Description
	U.S.
    Data Trust	3438922	U.S.
    Data Security Corporation	United
    States	Service
    mark of U.S. Data Trust symbol as used on company website
	U.S.
    Data Trust	3429327	U.S.
    Data Security Corporation	United
    States	Service
    mark of the company name U.S. Data Trust
	VaultLogix	4321184	Vaultlogix,
    LLC	United
    States	Services
    mark of the company name VaultLogix

 

Business/Trade
Names 

 

	 	●	VaultLogix
	 	●	DPS
	 	●	US Datatrust
	 	●	DataPreserve
	 	●	Utility Backup Solutions

 

Copyrights

 

	Registered
    

    Number	Copyright
    

    Title	Registration
    Date	Record
    Owned
	TXu001306850	Data
    

    Protection 

    Services, 

    LLC, website 

    (Text 

    Copyright)	May
    2, 2015	Data
    Protection 

    Services, L.L.C.

  

All
content of any website relating to any Seller

 

     

     

    

 

EXHIBIT
D-1

 

Form
of Noncompetition, Nondisclosure and Nonsolicitation Agreement (Seller)

 

This
Noncompetition, Nondisclosure and Nonsolicitation Agreement (this “Agreement”) is made as of February 17,
2016, by and among KeepItSafe, Inc., a Delaware corporation (“Buyer”), and
___________(“Seller”).

 

RECITALS

 

Concurrently
with the execution and delivery of this Agreement, Buyer is purchasing from Seller the Assets pursuant to the terms and conditions
of the Asset Purchase Agreement (defined below).

 

This
Agreement is a material part of the consideration bargained for by Buyer in order to enter into the Asset Purchase Agreement and
execution and delivery of this Agreement is a condition to Buyer entering into the Asset Purchase Agreement. Seller is willing
to enter into this Agreement.

 

AGREEMENT

 

The
Parties, intending to be legally bound, agree as follows:

 

1DEFINITIONS

 

“Confidential
Information” is defined in Section 2.

 

Capitalized
terms not expressly defined in this Agreement shall have the meanings ascribed to them in the Asset Purchase Agreement dated as
of February 17, 2016, by and among Buyer, Sellers and the Owners (the “Asset Purchase Agreement”).

 

2.ACKNOWLEDGMENTS
BY SELLER

 

Seller
has had access to and has become familiar with the following, any and all of which constitute confidential information of
Seller pertaining to the Business and Assets (collectively the “Confidential Information”): (a) any and
all trade secrets, concerning the Business, product specifications, data, know-how, formulae, compositions, processes,
designs, sketches, photographs, graphs, drawings, samples, inventions and ideas, past, current and planned research and
development, current and planned manufacturing and distribution methods and processes, customer lists, current and
anticipated customer requirements, price lists, market studies, business plans, computer software and programs (including
object code and source code), database technologies, systems, structures architectures processes, improvements, devices,
know-how, discoveries, concepts, methods and information of Seller and any other information, however documented, of Seller
that is a trade secret; (b) any and all information concerning the Business, including, historical financial statements,
financial projections and budgets, historical and projected sales, capital spending budgets and plans, the names and
backgrounds of key personnel, contractors, agents, suppliers and potential suppliers, personnel training and techniques and
materials, purchasing methods and techniques, and technical information, however documented; and (c) any and all notes,
analysis, compilations, studies, summaries and other material prepared by or for Seller containing or based, in whole or in
part, upon any information included in the foregoing. marketed throughout the world; (c) Seller's Business prior to
Closing competes with other businesses that are or could be located in any part of the world; (d) Buyer has required that
Seller make the covenants set forth in Sections 3 and 4 of this Agreement as a condition to Buyer’s purchase of the
Assets; (e) the provisions of Sections 3 and 4 of this Agreement are reasonable and necessary to protect and preserve
Buyer’s interests in and right to the use and operation of the Assets from and after Closing; and (f) Buyer may be
irreparably damaged if Seller were to breach the covenants set forth in Sections 3 and 4 of this Agreement.

 

     

     

    

 

3.  CONFIDENTIAL
INFORMATION

 

Seller
acknowledges and agrees that the protection of the Confidential Information is necessary to protect and preserve the value of
the Assets. Therefore, Seller hereby agrees not to disclose to any unauthorized Persons or use for its own account or for the
benefit of any third party any Confidential Information without Buyer’s written consent, unless and to the extent that the
Confidential Information is or becomes generally known to and available for use by the public other than as a result of Seller’s
fault or the fault of any other Person bound by a duty of confidentiality to Buyer or Seller or its members, or disclosure is
required by legal process in which case Seller shall provide Buyer with reasonable notice prior to disclosure. Seller agrees to
deliver to Buyer at the time of execution of this Agreement, and at any other time Buyer may reasonably request, all documents,
memoranda, notes, plans, records, reports and other documentation, models, components, devices or computer software, whether embodied
in a disk or in other form (and all copies of all of the foregoing), that contain Confidential Information and any other Confidential
Information that Seller may then possess or have under its control.

 

4. NONCOMPETITION
AND NONSOLICITATION

 

As
an inducement for Buyer to enter into the Asset Purchase Agreement and as additional consideration for the consideration to be
paid to Seller under the Asset Purchase Agreement, Seller agrees that:

 

(a)For
a period of three (3) years after the Closing excepting such duties required under and in connection with the Transition
Services Agreement:

 

(i)It
will not, directly or indirectly, engage or invest in, own, manage, operate, finance, control or participate in the ownership,
management, operation, financing or control of, be associated with or in any manner connected with, or render services or advice
or other aid to, or guarantee any obligation of, any Person engaged in or planning to become engaged in a business that offers
or is affiliated with a business that offers the following services offered by the Business on the date of this Agreement: online
data backup, anywhere within the world, provided, however, that Seller may purchase or otherwise acquire up to (but not more than)
one percent of any class of securities of any enterprise (but without otherwise participating in the activities of such enterprise)
if such securities are listed on any national or regional securities exchange or have been registered under Section 12(g) of the
Securities Exchange Act of 1934. Seller agrees that this covenant is reasonable with respect to its duration, geographical area
and scope. Despite the foregoing, Seller’s provision of services, aid, assistance or advice to an entity or a division or
Affiliate of an entity that competes with the Business shall not be a violation hereof so long as Seller does not provide, directly
or indirectly, any services, aid, assistance or advice to such entity or division or Affiliate of such entity with respect to
such competing Business.

 

(ii)Seller
agrees not to, directly or indirectly, induce or attempt to induce any customer, supplier, licensee or other Person to cease doing
business with Buyer or in any way interfere with the relationship between any such customer, supplier, licensee or other business
entity and Buyer; provided however, that the foregoing restriction shall not apply to general solicitation or posting on the internet
which are not specifically directed at such employees.

 

    	 	- 2 -	 

     

    

 

(iii) Seller agrees that it will not, directly
or indirectly, solicit the business of any Person known
to Seller to be a customer of Buyer, whether or not Seller had personal contact with such Person, with respect to products
or activities which compete in whole or in part with the Business as was conducted by Seller using the Assets; and

 

(b) Seller
will not, at any time during or after the 3-year period, disparage Buyer, the Assets, the Business formerly conducted by
Seller, the business conducted by Buyer using the Assets or any shareholder, director, officer, employee or agent of Buyer or
any of its Affiliates.

 

5. REMEDIES

 

If
Seller breaches the covenants set forth in Sections 3 or 4 of this Agreement, Buyer will be entitled to the following remedies:

 

(a) Damages
from Seller.

 

(b) In
addition to its right to damages and any other rights it may have, to obtain injunctive or other equitable relief to restrain
any breach or threatened breach or otherwise to specifically enforce the provisions of Sections 3 and 4 of this Agreement, it
being agreed that money damages alone may be inadequate to compensate Buyer and may be an inadequate remedy for such breach.

 

(c) The
rights and remedies of the Parties to this Agreement are cumulative and not alternative.

 

6. SUCCESSORS
AND ASSIGNS; THIRD PARTY BENEFICIARIES

 

This
Agreement will be binding upon Buyer and Seller and will inure to the benefit of Buyer and Buyer’s Affiliates, successors
and assigns. j2 Global, Inc. is an express third-party beneficiary of Seller’s obligations hereunder.

 

7.
WAIVER

 

Neither
the failure nor any delay by any Party in exercising any right, power or privilege under this Agreement will operate as a waiver
of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other
or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. To the maximum extent
permitted by applicable law, (a) no claim or right arising out of this Agreement can be discharged, in whole or in part, by a
waiver or renunciation of the claim or right except in writing; (b) no waiver that may be given by a Party will be applicable
except in the specific instance for which it is given; and (c) no notice to or demand on one Party will be deemed to be a waiver
of any obligation of such Party, or of the right of the Party giving such notice or demand to require the other Party, to take
further action without notice or demand as provided in this Agreement.

 

8. GOVERNING
LAW

 

This
Agreement will be governed by the laws applied by courts of the State of Delaware to contracts entered into within that state
by parties residing within that state and having no connection to any other state.

 

    	 	- 3 -	 

     

    

 

9. JURISDICTION;
SERVICE OF PROCESS 

 

Any
action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement and all of the
transactions contemplated hereby shall be governed by and construed in accordance with the laws of the State of Delaware, without
giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Delaware. Each of the Parties agrees
that any suit, action or other proceeding it may bring arising out of or relating to this Agreement or any of the transactions
contemplated hereby shall be brought in a court of competent jurisdiction in Los Angeles, California, and each Party each irrevocably
and unconditionally submits and consents to the exclusive jurisdiction of such courts for the purposes of any suit, action or
other proceeding arising out of this Agreement or any transactions contemplated hereby, and hereby waives the right to assert
the lack of personal or subject matter jurisdiction or improper venue in connection with any such suit, action or other proceeding.
Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world.

 

10. 
SEVERABILITY

 

Whenever
possible, each provision and term of this Agreement will be interpreted in a manner to be effective and valid, but if any provision
or term of this Agreement is held to be prohibited or invalid, then such provision or term will be ineffective only to the extent
of such prohibition or invalidity, without invalidating or affecting in any manner whatsoever the remainder of such provision
or term or the remaining provisions or terms of this Agreement. If any of the covenants set forth in Section 4 of this Agreement
are held to be unreasonable, arbitrary or against public policy, such covenants will be considered divisible with respect to scope,
time and geographic area, and in such lesser scope, time and geographic area, will be effective, binding and enforceable against
Seller to the greatest extent permissible.

 

11. COUNTERPARTS 

 

This
Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and
all of which, when taken together, will be deemed to constitute one and the same agreement.

 

12. SECTION
HEADINGS, CONSTRUCTION

 

The
headings of sections in this Agreement are provided for convenience only and will not affect its construction or interpretation.
All references to “Section” or “Sections” refer to the corresponding Section or Sections of this Agreement
unless otherwise specified. All words used in this Agreement will be construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms.

 

13. NOTICES

 

All
notices, consents, waivers and other communications under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand (with written confirmation of receipt); (b) sent by facsimile (with written confirmation of receipt),
provided that a copy is also promptly mailed by registered mail, return receipt requested; or (c) when received by the addressee,
if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and
facsimile numbers set forth in the Asset Purchase Agreement.

 

14. ENTIRE
AGREEMENT

 

This
Agreement, the Asset Purchase Agreement and all Exhibits and Schedules to the Asset Purchase Agreement, constitute the entire
agreement between the Parties with respect to the subject matter of this Agreement and supersede all prior written and oral agreements
and understandings between the Parties with respect to the subject matter of this Agreement. This Agreement may not be amended
except by a written agreement executed by the Party to be charged with the amendment.

 

[Signature
Page Follows]

 

    	 	- 4 -	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed and delivered this Noncompetition, Nondisclosure and Nonsolicitation Agreement as of the date first
above written.

 

	 	BUYER
	 	 
	 	KEEPITSAFE,
    INC
	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 
	 	SELLER
	 	 
	 	                                  
	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 

 

Signature Page to Seller’s Noncompetition, Nondisclosure and Nonsolicitation Agreement

 

     

     

    

 

EXHIBIT
D-2

 

Form
of Noncompetition, Nondisclosure and Nonsolicitation Agreement (Owner)

 

This
Noncompetition, Nondisclosure and Nonsolicitation Agreement (this “Agreement”) is made as of February 17, 2016,
by and among KeepItSafe, Inc., a Delaware corporation (“Buyer”) and InterCloud Systems, Inc. (“Owner”).

 

RECITALS

 

Concurrently
with the execution and delivery of this Agreement, Buyer is purchasing from VaultLogix, LLC, a Delaware limited liability company,
Data Protection Services, L.L.C., a Delaware limited liability company, and U.S. Data Security Acquisition, LLC, a Delaware limited
liability company (each a “Seller”, and collectively, “Sellers”), the Assets pursuant to
the terms and conditions of the Asset Purchase Agreement (defined below).

 

This
Agreement is a material part of the consideration bargained for by Buyer in order to enter into the Asset Purchase Agreement and
execution and delivery of this Agreement is a condition to Buyer entering into the Asset Purchase Agreement. Owner is willing
to enter into this Agreement.

 

AGREEMENT

 

The
parties, intending to be legally bound, agree as follows:

 

1 DEFINITIONS

 

“Confidential
Information” is defined in Section 2.

 

Capitalized
terms not expressly defined in this Agreement shall have the meanings ascribed to them in the Asset Purchase Agreement dated as
of February 17, 2016, by and among Buyer, Sellers and the Owners (the “Asset Purchase Agreement”).

 

2. ACKNOWLEDGMENTS
BY SELLER

 

Owner
has had access to and has become familiar with the following, any and all of which constitute confidential information of
Sellers pertaining to the Business and Assets (collectively the “Confidential Information”): (a) any and
all trade secrets, concerning the Business, product specifications, data, know-how, formulae, compositions, processes,
designs, sketches, photographs, graphs, drawings, samples, inventions and ideas, past, current and planned research and
development, current and planned manufacturing and distribution methods and processes, customer lists, current and
anticipated customer requirements, price lists, market studies, business plans, computer software and programs (including
object code and source code), database technologies, systems, structures architectures processes, improvements, devices,
know-how, discoveries, concepts, methods and information of each Seller and any other information, however documented, of
each Seller that is a trade secret; (b) any and all information concerning the Business, including, historical financial
statements, financial projections and budgets, historical and projected sales, capital spending budgets and plans, the names
and backgrounds of key personnel, contractors, agents, suppliers and potential suppliers, personnel training and techniques
and materials, purchasing methods and techniques, and technical information, however documented; and (c) any and all notes,
analysis, compilations, studies, summaries and other material prepared by or for each Seller containing or based, in whole or
in part, upon any information included in the foregoing. Owner acknowledges that (a) the Business of each Seller
relating to the use and operation of the Assets by such Seller prior to Closing is international in scope; (b) its products
and services related to such Business are marketed throughout the world; (c) each Seller's Business prior to Closing competes
with other businesses that are or could be located in any part of the world; (d) Buyer has required that Owner make the
covenants set forth in Sections 3 and 4 of this Agreement as a condition to Buyer’s purchase of the Assets; (e) the
provisions of Sections 3 and 4 of this Agreement are reasonable and necessary to protect and preserve Buyer’s
interests in and right to the use and operation of the Assets from and after Closing; and (f) Buyer may be irreparably
damaged if Owner were to breach the covenants set forth in Sections 3 and 4 of this Agreement.

 

     

     

    

 

3. CONFIDENTIAL
INFORMATION

 

Owner
acknowledges and agrees that the protection of the Confidential Information is necessary to protect and preserve the value of
the Assets. Therefore, Owner hereby agrees not to disclose to any unauthorized Persons or use for its own account or for the benefit
of any third party any Confidential Information without Buyer’s written consent, unless and to the extent that the Confidential
Information is or becomes generally known to and available for use by the public other than as a result of Owner’s fault
or the fault of any other Person bound by a duty of confidentiality to Buyer or any Seller or its members, or disclosure is required
by legal process in which case Owner shall provide Buyer with reasonable notice prior to disclosure. Owner agrees to deliver to
Buyer at the time of execution of this Agreement, and at any other time Buyer may reasonably request, all documents, memoranda,
notes, plans, records, reports and other documentation, models, components, devices or computer software, whether embodied in
a disk or in other form (and all copies of all of the foregoing), that contain Confidential Information and any other Confidential
Information that Owner may then possess or have under its control.

 

4. NONCOMPETITION
AND NONSOLICITATION

 

As
an inducement for Buyer to enter into the Asset Purchase Agreement and as additional consideration for the consideration to be
paid to Sellers under the Asset Purchase Agreement, Owner agrees that:

 

(a)
For a period of three (3) years after the Closing excepting such duties required under and in connection with the Transition
Services Agreement:

 

(i) He
will not, directly or indirectly, engage or invest in, own, manage, operate, finance, control or participate in the ownership,
management, operation, financing or control of, be associated with or in any manner connected with, or render services or advice
or other aid to, or guarantee any obligation of, any Person engaged in or planning to become engaged in a business that offers
or is affiliated with a business that offers the following services offered by the Business on the date of this Agreement: online
data backup, anywhere within the world, provided, however, that Owner may purchase or otherwise acquire up to (but not more than)
one percent of any class of securities of any enterprise (but without otherwise participating in the activities of such enterprise)
if such securities are listed on any national or regional securities exchange or have been registered under Section 12(g) of the
Securities Exchange Act of 1934. Owner agrees that this covenant is reasonable with respect to its duration, geographical area
and scope. Despite the foregoing, Owner’s provision of services, aid, assistance or advice to an entity or a division or
Affiliate of an entity that competes with the Business shall not be a violation hereof so long as Owner does not provide, directly
or indirectly, any services, aid, assistance or advice to such entity or division or Affiliate of such entity with respect to
such competing Business.

 

(ii)
Owner agrees not to, directly or indirectly, induce or attempt to induce any customer, supplier, licensee or other Person to
cease doing business with Buyer or in any way interfere with the relationship between any such customer, supplier,
licensee or other business entity and Buyer; provided however, that the foregoing restriction shall not apply to general
solicitation or posting on the internet which are not specifically directed at such employees.

 

    	 	- 2 -	 

     

    

 

(iii)
Owner agrees that he will not, directly or indirectly, solicit the business of any Person known to any Seller to be a
customer of Buyer, whether or not Owner had personal contact with such Person, with respect to products or activities which
compete in whole or in part with the Business as was conducted by any Seller using the Assets; and

 

(b)
Owner will not, at any time during or after the 3-year period, disparage Buyer, the Assets, the Business formerly conducted
by any Seller, the business conducted by Buyer using the Assets or any shareholder, director, officer, employee or agent of
Buyer or any of its Affiliates.

 

5. REMEDIES

 

If
Owner breaches the covenants set forth in Sections 3 or 4 of this Agreement, Buyer will be entitled to the following remedies:

 

(a) Damages
from Owner.

 

(b) In
addition to its right to damages and any other rights it may have, to obtain injunctive or other equitable relief to restrain
any breach or threatened breach or otherwise to specifically enforce the provisions of Sections 3 and 4 of this Agreement, it
being agreed that money damages alone may be inadequate to compensate Buyer and may be an inadequate remedy for such breach.

 

(c) The
rights and remedies of the Parties to this Agreement are cumulative and not alternative.

 

6. SUCCESSORS
AND ASSIGNS; THIRD PARTY BENEFICIARIES

 

This
Agreement will be binding upon Buyer and Owner and will inure to the benefit of Buyer and its Affiliates, successors and assigns.
j2 Global, Inc. is an express third-party beneficiary of Owner’s obligations hereunder.

 

7.
WAIVER

 

Neither
the failure nor any delay by any party in exercising any right, power or privilege under this Agreement will operate as a waiver
of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other
or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. To the maximum extent
permitted by applicable law, (a) no claim or right arising out of this Agreement can be discharged, in whole or in part, by a
waiver or renunciation of the claim or right except in writing; (b) no waiver that may be given by a party will be applicable
except in the specific instance for which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver
of any obligation of such party, or of the right of the party giving such notice or demand to require the other party, to take
further action without notice or demand as provided in this Agreement.

 

8. GOVERNING
LAW

 

This
Agreement will be governed by the laws applied by courts of the State of Delaware to contracts entered into within that state
by parties residing within that state and having no connection to any other state.

 

    	 	- 3 -	 

     

    

9. JURISDICTION;
SERVICE OF PROCESS

 

Any
action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement and all of the
transactions contemplated hereby shall be governed by and construed in accordance with the laws of the State of Delaware, without
giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Delaware. Each of the parties agrees
that any suit, action or other proceeding it may bring arising out of or relating to this Agreement or any of the transactions
contemplated hereby shall be brought in a court of competent jurisdiction in Los Angeles, California, and each party each irrevocably
and unconditionally submits and consents to the exclusive jurisdiction of such courts for the purposes of any suit, action or
other proceeding arising out of this Agreement or any transactions contemplated hereby, and hereby waives the right to assert
the lack of personal or subject matter jurisdiction or improper venue in connection with any such suit, action or other proceeding.
Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world.

 

10. SEVERABILITY

 

Whenever
possible, each provision and term of this Agreement will be interpreted in a manner to be effective and valid, but if any provision
or term of this Agreement is held to be prohibited or invalid, then such provision or term will be ineffective only to the extent
of such prohibition or invalidity, without invalidating or affecting in any manner whatsoever the remainder of such provision
or term or the remaining provisions or terms of this Agreement. If any of the covenants set forth in Section 4 of this Agreement
are held to be unreasonable, arbitrary or against public policy, such covenants will be considered divisible with respect to scope,
time and geographic area, and in such lesser scope, time and geographic area, will be effective, binding and enforceable against
each Seller to the greatest extent permissible.

 

11.
COUNTERPARTS 

 

This
Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and
all of which, when taken together, will be deemed to constitute one and the same agreement.

 

12.
SECTION HEADINGS, CONSTRUCTION

 

The
headings of sections in this Agreement are provided for convenience only and will not affect its construction or interpretation.
All references to “Section” or “Sections” refer to the corresponding Section or Sections of this Agreement
unless otherwise specified. All words used in this Agreement will be construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms.

 

13.
NOTICES

 

All
notices, consents, waivers and other communications under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand (with written confirmation of receipt); (b) sent by facsimile (with written confirmation of receipt),
provided that a copy is also promptly mailed by registered mail, return receipt requested; or (c) when received by the addressee,
if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and
facsimile numbers set forth in the Asset Purchase Agreement.

 

14. ENTIRE
AGREEMENT

 

This
Agreement, the Asset Purchase Agreement and all Exhibits and Schedules to the Asset Purchase Agreement, constitute the entire
agreement between the Parties with respect to the subject matter of this Agreement and supersede all prior written and oral agreements
and understandings between the Parties with respect to the subject matter of this Agreement. This Agreement may not be amended
except by a written agreement executed by the Party to be charged with the amendment.

 

[Signature
Page Follows]

 

    	 	- 4 -	 

     

    

 

IN
WITNESS WHEREOF, the parties have executed and delivered this Noncompetition, Nondisclosure and Nonsolicitation Agreement
as of the date first above written.

 

	 	BUYER
	 	 
	 	KEEPITSAFE,
    INC
	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	OWNER
	 	 
	 	INTERCLOUD SYSTEMS, INC
	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 

 

Signature Page to Owner’s Noncompetition, Nondisclosure and Nonsolicitation Agreement

 

     

     

    

 

EXHIBIT
F

 

Form
of Seller’s Secretary’s Certificate

 

I
certify that I am the duly qualified and acting secretary of_______ , a_________ (“Seller”) and that, as
such, I am familiar with the facts herein certified and am duly authorized to certify the same and do hereby certify as
follows:

 

		1.	Attached
                                         as Schedule A hereto is a true, correct and complete copy of Seller’s Organizational
                                         Documents, which is in full force and effect as of the date hereof.

 

		2.	Attached
                                         as Schedule B hereto is a true, correct and complete copy of the resolutions of
                                         the members of Seller approving the execution and delivery of the Asset Purchase Agreement
                                         and the consummation of the Contemplated Transactions. Such resolutions have not been
                                         rescinded or modified in any way, and are in full force and effect as of the date hereof.

 

		3.	I
                                         have examined the signatures of Seller’s members executing the Asset Purchase Agreement
                                         dated as of February 17, 2016 (the “Asset Purchase Agreement”), by
                                         and among Sellers, Buyer and the Owners, and the exhibits and other documents delivered
                                         in connection therewith, and such signatures are their true signatures. As of the date
                                         hereof (and the date of such signatures), such members are (and were) the members of
                                         Seller.

 

This
Secretary’s Certificate is being delivered on Seller’s behalf pursuant to Section 2.5(a)(viii) of the Asset Purchase
Agreement. Capitalized terms used but not defined herein have the meanings given to them in the Asset Purchase Agreement.

 

IN
WITNESS WHEREOF, I have executed this certificate on February 17, 2016.

 	 	                                     
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

Schedule
A

 

Seller’s
Organizational Documents

 

     

     

    

 

Schedule
B

 

Seller’s ResolutionsExhibit 10.2

 

SECURITIES EXCHANGE AGREEMENT

 

This SECURITIES EXCHANGE AGREEMENT
(this “Agreement”) is made effective as of February 18, 2016, by and between VaultLogix, LLC (“VaultLogix”),
InterCloud Systems, Inc. (the “Company” and together with VaultLogix, the “Issuers”
and each an “Issuer”) and the lender signatory hereto (the “Lender”), in its
capacity as the sole lender and administrative agent under the LSA (as defined below).

 

RECITALS

 

WHEREAS, pursuant to an Assignment
and Assumption, dated February 18, 2016 (the “Assignment and Assumption”), the Lender acquired all of
the Term Loans, including the promissory notes evidencing such Term Loans (the “Notes”), issued under
that certain Loan and Security Agreement (the “LSA”), dated October 1, 2014, by and among VaultLogix,
as borrower, the entities party thereto as Guarantors (the “Guarantors”) and the entities party thereto
as lenders, and the administrative agent for such lenders (the “Administrative Agent”);

 

WHEREAS, all of VaultLogix’s
obligations under the LSA and the Notes are unconditionally guaranteed by the Company pursuant to a Continuing Guaranty, dated
October 1, 2014, made by the Company in favor of the Administrative Agent on behalf and for the benefit of the Lender (the “Parent
Guaranty”); and

 

WHEREAS, the Company and
the Lender have agreed to enter into this Agreement pursuant to which all rights and obligations under the LSA, the Term Loans,
the Parent Guaranty and the other Loan Documents (as defined in the LSA) (the “Original Documents”),
subject to the terms of this Agreement, are exchanged for a 8.25% Senior Secured Convertible Note made by VaultLogix and the Company
as co-borrowers in substantially the form attached hereto as Exhibit A (the “New Note”);

 

NOW, THEREFORE, in consideration
of the foregoing premises and the mutual covenants and agreements contained herein and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, intending to be legally bound, the parties hereto agree as follows:

 

AGREEMENT

 

ARTICLE I.EXCHANGE 

 

1.01New Note. On the
date of this Agreement, the Issuers will execute and deliver the New Note to the Lender. In addition to the foregoing, the Issuers
shall deliver, or cause to be delivered, on the date of this Agreement the following (collectively, the “Closing Deliverables”):

 

(a)a Security Agreement
in substantially the form attached hereto as Exhibit B (the “Security Agreement”) executed and
delivered by VaultLogix and the Company;

 

(b)a Deposit Account
Control Agreement (the “DACA” and together with the Security Agreement, the “Security Documents”)
in substantially the form attached hereto as Exhibit C executed and delivered by VaultLogix and PNC Bank, National Association;

 

(c)evidence that the
deposit account identified in the DACA has at least an amount equal to the amount payable by the Lender under the Assignment and
Assumption in unencumbered cash deposits;

 

    	 		 

     

    

 

(d)a legal opinion
of counsel to the Issuers opining (1) that the exchange of the Lender’s rights and obligations under the Original Documents,
including the Notes, for the New Note is exempt from registration under Section 3(a)(9) of the Securities Act of 1933, as amended
(the “Securities Act”), (2) on the enforceability and perfection of the liens securing the New Note,
and (3) other customary matters reasonably requested by Lender;

 

(e)Irrevocable Transfer
Agent Instructions in substantially the form attached hereto as Exhibit D (the “Irrevocable Transfer Agent Instructions”)
executed and delivered by the Company and its transfer agent; and

 

(f)such other documents,
instruments and agreements reasonably requested by Lender.

 

1.02Surrender of Original
Documents. Upon receipt of the New Note and the other Closing Deliverables, the Lender conveys all rights and obligations under
the Original Documents to the Company. The parties agree that the New Note is being issued in substitution for and not in satisfaction
of all rights and obligations under the Original Documents.

 

ARTICLE II.REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

 

The Issuers represent and warrant
to Lender as of the date hereof as follows:

 

2.01Organization, Good Standing
and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State
of Delaware and has the requisite corporate power to own, lease and operate its properties and assets and to conduct its business
as it is now being conducted. VaultLogix is a limited liability company duly formed validly existing and in good standing under
the laws of the State of Delaware and has the requisite limited liability company power to own, lease and operate its properties
and assets and to conduct its business as it is now being conducted.

 

2.02Authorization; Enforcement.
Each Issuer has the requisite corporate or limited liability company power and authority, as applicable, to enter into and perform
this Agreement, the New Note and the Security Documents to which it is a party and such other documents, instruments and agreements
executed and delivered by each such Issuer in connection with any of the foregoing (collectively, the “Operative Documents”)
and to issue and sell the New Note in accordance with the terms hereof. The execution, delivery and performance of the Operative
Documents by each Issuer and the consummation by it of the transactions contemplated thereby have been duly and validly authorized
by all necessary corporate or limited liability company action, as applicable, of such Issuer, and no further consent or authorization
of such Issuer or its board of directors or equivalent governing body or stockholders or members, as applicable, is required, except
for the Stockholder Approval. When executed and delivered by the Company, each of the Operative Documents shall constitute a valid
and binding obligation of each such Issuer party thereto, enforceable against each such Issuer in accordance with its terms, except
as such enforceability may be limited by applicable bankruptcy, reorganization, moratorium, liquidation, conservatorship, receivership
or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable
principles of general application.

 

2.03Issuance of Shares.
When the Conversion Shares (as defined in the New Note) are issued in accordance with the terms of the New Note, the Conversion
Shares shall be validly issued and outstanding, fully-paid, non-assessable and free any clear of all liens, of any pre-emptive
rights and rights of refusal of any kind.

 

    	 	2	 

     

    

 

2.04No Conflicts. The
execution, delivery and performance of the Operative Documents by each Issuer, the performance by each Issuer of its obligations
under the Operative Documents, and the consummation by each Issuer of the transactions contemplated by the Operative Documents,
and the issuance of the Conversion Shares as contemplated by New Note, do not and will not (i) violate or conflict with any provision
of each such Issuer’s Organizational Documents (as defined in the Security Agreement), (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license,
lease agreement, instrument or obligation to which any Issuer or any of its subsidiaries is a party or by which any Issuer or any
of its subsidiaries’ respective properties or assets are bound, (iii) result in a violation of any foreign, federal, state
or local statute, law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations)
applicable to any Issuer or any of its subsidiaries or by which any property or asset of any such Issuer or any of its subsidiaries
are bound or affected, or (iv) create or impose a lien, mortgage, security interest, charge or encumbrance of any nature (each,
a “Lien”) on any property or asset of any Issuer or its subsidiaries under any agreement or any commitment
to which any such Issuer or any of its subsidiaries is a party or by which any Issuer or any of its subsidiaries is bound or by
which any of their respective properties or assets are bound. No Issuer is required under foreign, federal, state or local law,
rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental
agency in order for it to execute, deliver or perform any of its obligations under the Operative Documents or issue and sell the
New Note in accordance with the terms hereof.

 

2.05SEC Documents, Financial
Statements. The common stock of the Company (the “Common Stock”) is registered pursuant to Section
12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Company has taken
no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock
under the Exchange Act nor has the Company received any notification that the U.S. Securities and Exchange Commission (the “SEC”)
is contemplating terminating such registration. Since January 1, 2014, the Company has timely filed all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act
(all of the foregoing including filings incorporated by reference therein being referred to herein as the “SEC Documents”).
 At the times of their respective filings, the SEC Documents complied in all material respects with the requirements of
the Exchange Act and the rules and regulations of the SEC promulgated thereunder. The SEC Documents did not, and do not, contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates,
the financial statements of the Company included in the SEC Documents complied as to form in all material respects with Regulation
S-X and all other published rules and regulations of the SEC. Such financial statements have been prepared in accordance with generally
accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved (except
(i) as may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements,
to the extent they may not include footnotes or may be condensed or summary statements), and fairly present in all material respects
the financial position of the Company and its consolidated subsidiaries as of the dates thereof and the results of operations and
cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). The
Company does not currently have any reason to believe that it will not timely file its Annual Report on Form 10-K for the fiscal
year ended December 31, 2015, or its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2016.

 

    	 	3	 

     

    

 

2.06Material Changes; Undisclosed
Events, Liabilities or Developments. Since the date of the latest audited financial statements included within the SEC Documents,
except as specifically disclosed in a subsequent SEC Document filed prior to the date hereof: (i) there has been no event, occurrence
or development that has had or that could reasonably be expected to result in (A) a material adverse effect on the legality, validity
or enforceability of any Operative Document, (B) a material adverse effect on the results of operations, assets, business, prospects
or condition (financial or otherwise) of the Company and its subsidiaries, taken as a whole, or (C) a material adverse effect on
any Issuer’s ability to perform in any material respect on a timely basis its obligations under any Operative Document (any
of (A), (B), or (C), a “Material Adverse Effect”), (ii) neither the Company nor any of its subsidiaries
have incurred any liabilities (contingent or otherwise) other than (X) trade payables and accrued expenses incurred in the ordinary
course of business consistent with past practice and (Y) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or disclosed in filings made with the SEC, (iii) the Company has not altered its method of accounting,
(iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity
securities to any officer, director or affiliate, except pursuant to existing Company stock option plans. The Company does not
have pending before the SEC any request for confidential treatment of information. Except for the issuance of the New Note contemplated
by this Agreement and the transactions contemplated by the Asset Purchase Agreement, dated on or about the date hereof, by and
among KeepItSafe, Inc., VaultLogix, Data Protection Services, L.L.C. (“DPS”), U.S. Data Security Acquisition,
LLC (together with VaultLogix and DPS, the “Sellers”) and each individual owner of interests in Sellers set
forth on the signature pages thereto, no event, liability, fact, circumstance, occurrence or development has occurred or exists
or is reasonably expected to occur or exist with respect to the Company or its subsidiaries or their respective businesses, properties,
operations, assets or financial condition, that would be required to be disclosed by the Company under applicable securities laws
at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading Day (as defined
in the New Note) prior to the date that this representation is made.

 

2.07Listing and Maintenance
Requirements. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market (as
defined herein) on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with
the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in
the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently
eligible for electronic transfer through the Depository Trust Company or another established clearing corporation and the Company
is current in payment of the fees to the Depository Trust Company (or such other established clearing corporation) in connection
with such electronic transfer. For purposes hereof, “Trading Market” means any of the following markets
or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE MKT, the Nasdaq Capital
Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC QB Marketplace (or any
successors to any of the foregoing).

 

2.08No Integrated Offering.
Neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause the issuance
of the New Note and the Conversion Shares to be integrated with prior offerings by the Company for purposes of (i) the Securities
Act which would require the registration of any such securities under the Securities Act or (ii) any applicable stockholder approval
provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

2.09Disclosure. Following
the issuance of the press release referred to in Section 4.07, the Company confirms that neither it nor any other person or entity
acting on its behalf has provided the Lender or its agents or counsel with any information that constitutes or might constitute
material, nonpublic information that has not been publicly disclosed. The Company understands and confirms that the Lender will
rely on the foregoing representation in effecting transactions in the securities of the Company.

 

    	 	4	 

     

    

 

2.10 Solvency of the Company.
Based on the consolidated financial condition of the Company and its subsidiaries taken as a whole, after giving effect to the
transactions contemplated hereby: (i) the fair saleable value of the Company’s assets exceeds the amount that will be required
to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities)
as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business as now conducted
and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business
conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current
cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking
into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when
such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature
(taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of
any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or
reorganization laws of any jurisdiction within one year from the date of this Agreement.

 

2.11Seniority. As of
the date of this Agreement, other than that certain 10% Original Issue Discount Senior Secured Convertible Debenture in the original
principal amount of $7,500,000, issued to JGB (Cayman) Waltham Ltd. pursuant to that certain Securities Purchase Agreement, dated
as of December 29, 2015, no indebtedness or other claim against the Company is senior to the New Note in right of payment, whether
with respect to interest or upon liquidation or dissolution, or otherwise. As of the date of this Agreement, there is no indebtedness
or other claims against VaultLogix.

 

2.12Holding Period. Pursuant
to Rule 144 promulgated under the Securities Act, the holding period of the New Note and the Conversion Shares tacks back to June
16, 2015. The Issuers agree not to take a position contrary to this paragraph. The Company agrees to take all actions, including,
without limitation, the issuance by its legal counsel of any legal opinions to the Lender or the Company’s transfer agent,
necessary to issue the Conversion Shares without restriction and not containing any restrictive legend without the need for any
action by the Lender in connection with a sale of the Conversion Shares by the Lender. The Company represents that the exchange
of Lender’s rights under the Original Documents for the New Note is being made in reliance upon the exemption from registration
provided by Section 3(a)(9) of the Securities Act and agrees not to take any position contrary to this paragraph.

 

ARTICLE III.REPRESENTATIONS AND WARRANTIES OF THE HOLDER

 

The Lender represents and warrants
to the Company as of the date hereof as follows:

 

3.01Organization and Standing
of the Lender. Lender is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.

 

3.02Authorization and Power.
The Lender has the requisite power and authority to enter into and perform the Operative Documents. The execution, delivery and
performance of the Operative Documents by the Lender and the consummation by it of the transactions contemplated hereby have been
duly authorized by all necessary corporate action, and no further consent or authorization of Lender or its managers or members
is required. When executed and delivered by the Lender, the Operative Documents shall constitute valid and binding obligations
of the Lender enforceable against the Lender in accordance with their terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.

 

    	 	5	 

     

    

 

ARTICLE IV.COVENANTS AND AGREEMENTS

 

Unless otherwise specified in this
Article, for so long as the New Note and/or the Conversion Shares are outstanding, the Issuers hereby covenant:

 

4.01Compliance with Laws.
The Company shall take all necessary actions and proceedings as may be required by applicable law, rule and regulation, for the
legal and valid issuance of the New Note and the Conversion Shares to the Lender.

 

4.02Registration and Listing.
The Company shall cause its Common Stock to continue to be registered under Section 12(b) of the Exchange Act, to comply in all
material respects with its reporting and filing obligations under the Exchange Act and to not take any action or file any document
to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under the Exchange Act
even if the rules and regulations thereunder would permit such termination. Without limiting the foregoing, the Company shall take
all necessary action to satisfy the requirements of Rule 144(c)(1) and Rule 144(i)(2). The Company currently meets the requirements
of Rule 144(i)(2) and the Conversion Shares may be resold by the Lender under Rule 144.

 

4.03Public Information Failure.
At any time during the period commencing on the date hereof and ending at such time that the Lender has resold all of the Conversion
Shares, if the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c) or the
requirements of Rule 144(i)(2) (a “Public Information Failure”) then, in addition to the Lender’s
other available remedies, the Issuers shall pay to the Lender, in cash, as partial liquidated damages and not as a penalty, by
reason of any such delay in or reduction of its ability to sell the Conversion Shares, an amount in cash equal to 0.075% of the
original principal amount of the New Note on the day of a Public Information Failure and such amount on each day thereafter until
the date such Public Information Failure is cured. The payments to which the Lender shall be entitled pursuant to this Section
4.03 are referred to herein as “Public Information Failure Payments”. For purposes hereof, a “Public
Information Failure” shall be deemed to have occurred and be continuing during any Rule 12b-25 extension period for
any annual, quarterly or other report required to be filed by the Company with the SEC. Public Information Failure Payments shall
be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred
and (ii) the third (3rd) Business Day (as defined in the New Note) after the event or failure giving rise to the Public Information
Failure Payments is cured. In the event the Issuers fail to make Public Information Failure Payments in a timely manner, such Public
Information Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial months) until paid in full.
Nothing herein shall limit the Lender’s right to pursue actual damages for the Public Information Failure, and the Lender
shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief.

 

4.04Integration; Rules of
the Trading Market.

 

(a)The Company shall not sell,
offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that would be integrated with the offer or sale of the New Note and Conversion Shares in a manner that would require the registration
under the Securities Act of the sale of the New Note and Conversion Shares or that would be integrated with the offer or sale of
the New Note and the Conversion Shares for purposes of the rules and regulations of any Trading Market unless stockholder approval
is obtained before the closing of such subsequent transaction.

 

    	 	6	 

     

    

 

(b)The Company shall provide
each stockholder entitled to vote at either (x) the next annual meeting of stockholders of the Company or (y) a special meeting
of stockholders of the Company (the “Stockholder Meeting”), which shall be promptly called and held not
later than May 31, 2016 (the “Stockholder Meeting Deadline”), a proxy statement, substantially in a form
which shall have been previously reviewed by the Lender’s counsel, at the expense of the Issuers, soliciting each such stockholder’s
affirmative vote at the Stockholder Meeting for approval of resolutions (“Stockholder Resolutions”) providing
for the Company’s issuance of Conversion Shares as described in the New Note and the other Operative Documents in accordance
with applicable law and the rules and regulations of the Principal Market (as defined in the New Note) and without any limitation
on the number of Conversion Shares that may be issued (such affirmative approval being referred to herein as the “Stockholder
Approval”, and the date such Stockholder Approval is obtained, the “Stockholder Approval Date”),
and the Company shall use its reasonable best efforts to solicit its stockholders’ approval of such resolutions and to cause
the Board of Directors of the Company to recommend to the stockholders that they approve such resolutions. The Company shall be
obligated to seek to obtain the Stockholder Approval by the Stockholder Meeting Deadline. If, despite the Company’s reasonable
best efforts the Stockholder Approval is not obtained on or prior to the Stockholder Meeting Deadline, the Company shall cause
an additional Stockholder Meeting to be held once in each of the eight subsequent calendar quarters thereafter until such Stockholder
Approval is obtained.

 

4.05Acknowledgment of Dilution.
The Company acknowledges that the issuance of the New Note and the Conversion Shares may result in dilution of the outstanding
shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that
its obligations under the Operative Documents, including, without limitation, its obligation to issue the Conversion Shares pursuant
to the New Note, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless
of the effect of any such dilution or any claim the Company may have against the Lender and regardless of the dilutive effect that
such issuance may have on the ownership of the other stockholders of the Company.

 

4.06Indemnification of Lender.
The Issuers will indemnify and hold the Lender and its directors, officers, stockholders, members, partners, employees and agents
(and any other persons with a functionally equivalent role of a person holding such titles notwithstanding a lack of such title
or any other title), each person who controls the Lender (within the meaning of Section 15 of the Securities Act and Section 20
of the Exchange Act), and the directors, officers, stockholders, agents, members, partners or employees (and any other persons
with a functionally equivalent role of a person holding such titles notwithstanding a lack of such title or any other title) of
such controlling persons (each, a “Lender Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable
attorneys’ fees and costs of investigation that any such Lender Party may suffer or incur as a result of or relating to (a)
any breach of any of the representations, warranties, covenants or agreements made by the Issuers in this Agreement or in the other
Operative Documents or (b) any action instituted against the Lender Parties in any capacity, or any of them or their respective
affiliates, by any stockholder of the Company who is not an affiliate of such Lender Party, with respect to any of the transactions
contemplated by the Operative Documents (unless such action is based upon the fraud, gross negligence, willful misconduct or malfeasance
of a Lender Party).

 

4.07Disclosure of Transaction.
The Company shall, by 5:30 p.m. eastern time on the second business day following the closing of the transaction contemplated by
this Agreement, file a Current Report on Form 8-K, including the Operative Documents as exhibits thereto, with the SEC. Such Form
8-K shall be subject to the prior review and comment of the Lender. From and after the issuance of the Form 8-K, the Company represents
to the Lender that it shall have publicly disclosed all material, non-public information delivered to Lender by the Company, or
any of their respective officers, directors, employees or agents.

 

    	 	7	 

     

    

 

4.08Disclosure of Material Information; No Obligation
of Confidentiality.

 

(a)Each Issuer covenants and
agrees that neither it nor any other person or entity acting on its behalf will provide the Lender or its agents or counsel with
any information that the Company believes constitutes non-public information, unless prior thereto the Lender shall have executed
a written agreement regarding the confidentiality and use of such information. Each Issuer understands and confirms that the Lender
shall be relying on the foregoing representations in effecting transactions in securities of the Company. In the event of a breach
of the foregoing covenant by an Issuer, or any of its subsidiaries, or any of its or their respective officers, directors, employees
and agents, in addition to any other remedy provided herein or in the Operative Documents, the Company shall publicly disclose
any material, non-public information in a Current Report on Form 8-K within one business day following the date that it discloses
such information to the Lender or such earlier time as may be required by Regulation FD or other applicable law.

 

(b)The Lender shall not be deemed
to have any obligation of confidentiality with respect to (i) any non-public information of an Issuer disclosed to the Lender in
breach of Section 4.08(a) (whether or not the Company files a Current Report on Form 8-K as provided above), (ii) the fact that
the Lender has exercised any of its rights and/or remedies under the Operative Documents or (iii) any information obtained by the
Lender as a result of exercising any of its rights and/or remedies under the Operative Documents. In further addition, the Lender
shall not be deemed to be in breach of any duty to any Issuer and/or to have misappropriated any non-public information of any
Issuer, if the Lender engages in transactions of securities of any issuer, including, without limitation, any hedging transactions,
short sales or any derivative transactions, while in possession of such non-public information.

 

(c)Any Form 8-K, including all
exhibits thereto, filed by the Company pursuant to this Section 4.08 shall be subject to prior review and comment by the Lender.

 

(d)From and after the filing
of any such Form 8-K pursuant to Section 4.07 with the SEC, the Lender shall not be in possession of any material, non-public information
received from the Company, any of its subsidiaries or any of their respective officers, directors, employees or agents that is
not disclosed in such Form 8-K filed pursuant to Section 4.07.

  

4.09Legal
Opinions.  The Company shall cause its legal counsel to issue any legal opinion referred
to in the Irrevocable Transfer Agent Instructions or any other Operative Document at the Issuers’ expense.

 

ARTICLE V.MISCELLANEOUS 

 

5.01Fees and Expenses.
The Issuers shall reimburse the Lender for all costs and expenses incurred by the Lender in connection with the negotiation,
drafting and execution of the Operative Documents and the transactions contemplated thereby (including all reasonable legal fees,
travel, disbursements and due diligence in connection therewith and all fees incurred in connection with any necessary regulatory
filings and clearances). In addition, the Issuers shall pay all reasonable fees and expenses incurred by the Lender in connection
with the enforcement of this Agreement or any of the other Operative Documents, including, without limitation, all reasonable attorneys’
fees and expenses. The Issuers shall be responsible for their own fees and expenses incurred in connection with the transactions
contemplated by this Agreement or any of the other Operative Documents. The Issuers shall pay all fees of the Company’s transfer
agent, stamp taxes and other taxes and duties levied in connection with the delivery of the New Note and/or the Conversion Shares
to the Lender. This provision shall survive termination of this Agreement and the Operative Documents.

 

    	 	8	 

     

    

 

5.02Specific Performance;
Consent to Jurisdiction; Venue.

 

(a)The Issuers and the Lender
acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement or the other
Operative Documents were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement
or the other Operative Documents and to enforce specifically the terms and provisions hereof or thereof without the requirement
of posting a bond or providing any other security, this being in addition to any other remedy to which any of them may be entitled
by law or equity.

 

(b)The parties agree that venue
for any dispute arising under this Agreement will lie exclusively in the state or federal courts located in New York County, New
York, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that New York is not the
proper venue. The parties irrevocably consent to personal jurisdiction in the state and federal courts in New York County of the
state of New York. The Issuers and the Lender consent to process being served in any such suit, action or proceeding by mailing
a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing in this Section 5.02 shall affect or limit any right
to serve process in any other manner permitted by law. The parties hereby waive all rights to a trial by jury.

 

5.03Amendment. No provision
of this Agreement may be waived or amended except in a written instrument signed by the Issuers and the Lender.

 

5.04Notices. Any notice,
demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective
(a) upon hand delivery by telecopy or facsimile at the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur or (c) upon delivery by e-mail (if delivered on a business day during normal business hours where such
notice is to be received) upon recipient’s actual receipt and acknowledgement of such e-mail. The addresses for such communications
shall be:

 

	If to the Issuers:	
        InterCloud Systems, Inc.

        1030 Broad Street, Suite 102 

        Shrewsbury, NJ 07702

        

        Attention: Chief Financial Officer 

        Telephone: (732) 898-6320

        

        Facsimile No.: 

        E-mail: tlarkin@intercloudsys.com

        

        dsullivan@intercloudsys.com

	 	 
	If to the Lender:	
        JGB (Cayman) Concord Ltd.

        c/o JGB Management, Inc.

        

        21 Charles Street, Suite 160 

        Westport, CT 06880

        

        Attention: Brett Cohen 

        Telephone No.: (212) 355-5771

        

        Facsimile No.: (212) 253-4093 

        E-mail: bcohen@jgbcap.com and dshmookler@jgbcap.com

        

 

    	 	9	 

     

    

 

Any party hereto may from time to time change its address for notices by
giving written notice of such changed address to the other party hereto.

 

5.05Waivers. No waiver
by either party of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be
a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission
of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

 

5.06Headings. The article,
section and subsection headings in this Agreement are for convenience only and shall not constitute a part of this Agreement for
any other purpose and shall not be deemed to limit or affect any of the provisions hereof.

 

5.07Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. The Lender may assign
the New Note and/or the Conversion Shares and its rights under this Agreement and the other Operative Documents and any other rights
hereto and thereto without the consent of the Company. The Issuers may not assign or delegate any of their respective rights or
obligations hereunder or under any Operative Document.

 

5.08No Third Party Beneficiaries.
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns and, except
for Section 4.06, is not for the benefit of, nor may any provision hereof be enforced by, any other person or entity.

 

5.09Governing Law. This
Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect
to any of the conflicts of law principles that would result in the application of the substantive law of another jurisdiction.
This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted.

 

5.10Survival. The covenants,
agreements and representations and warranties of the Issuers under the Operative Documents shall survive the execution and delivery
hereof. All obligations of the Issuers hereunder are joint and several.

 

5.11Counterparts. This
Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument
and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being
understood that all parties need not sign the same counterpart. Signature pages to this Agreement may be delivered by facsimile
or other means of electronic transmission.

 

5.12Severability. The
provisions of this Agreement are severable and, in the event that any court of competent jurisdiction shall determine that any
one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or
part of a provision of this Agreement and this Agreement shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable
to the maximum extent possible.

 

5.13Time Is of the Essence.
Time is of the essence of this Agreement and each Operative Document.

 

[signature page follows]

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused
this Securities Exchange Agreement to be duly executed by their respective authorized officers as of the date first above written.

 

ISSUERS:

 

INTERCLOUD SYSTEMS, INC.

 

	By:	/s/ Daniel Sullivan	
	Name:	Daniel Sullivan	 
	Title:	Chief Accounting Officer	 

 

VAULTLOGIX, LLC

 

	By:	/s/ Daniel Sullivan	 
	Name:	Daniel Sullivan	 
	Title:	Chief Accounting Officer	 

 

LENDER:

 

JGB (CAYMAN) CONCORD LTD.

 

	By: 	/s/ Brett Cohen	 
	Name:	Brett Cohen	 
	Title:	President	 

 

 

11

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