Document:

EXECUTIVE EMPLOYMENT
AGREEMENT 

This Executive Employment
Agreement (“Agreement”) is made effective as of December 10, 2014 (“Effective
Date”), by and between Daegis, Inc. (the “Company”) and Susan K. Conner (the
“Executive”). 

The Parties hereby agree as
follows: 

1. Employment. This Agreement sets forth the terms of the Executive’s continuing
employment by the Company. Executive’s term of employment under this Agreement
(the “Employment Term”) shall run from the effective date of this Agreement
through the end of Executive’s employment with the Company, regardless of which
party terminates the employment relationship or why the relationship is
terminated. 

2. Duties. 

a. Position. Executive is employed as Chief Financial Officer, reporting to the
Chief Executive Officer, and shall have the duties and responsibilities assigned
by the Company and its Board of Directors both upon initial hire and as may be
assigned from time to time. Executive shall perform faithfully and diligently
all duties assigned to Executive. As Chief Financial Officer, the Executive
shall serve as the chief financial executive for the Company, as defined by the
applicable securities laws. The Position will be based in the Dallas, TX area,
and the Executive will also be expected to travel, as may be required by the
Chief Executive Officer to the Company’s various offices and to other locations
as required by the business. 

b. Best Efforts/Full-Time. Executive will expend Executive’s best efforts
on behalf of the Company, and will abide by all policies and decisions made by
the Company, as well as applicable federal, state and local laws, regulations or
ordinances, including in particular those laws applicable to the Company as a
publicly-traded company. Executive will act in the best interest of the Company
at all times. During the Employment Term, excluding periods of vacation and sick
leave to which the Executive is entitled, the Executive agrees to devote
reasonable attention and time during usual business hours to the business and
affairs of the Company to the extent necessary to discharge the responsibilities
assigned to the Executive hereunder. The Executive may (i) serve on corporate,
civil or charitable boards or committees, (ii) manage personal investments and
(iii) deliver lectures and teach at educational institutions, so long as such
activities do not constitute a conflict of interest, create issues of
independence, or interfere with the performance of the Executive’s
responsibilities hereunder, as determined by the Company. It is expressly
understood and agreed that to the extent any such activities have been conducted
by the Executive prior to the Effective Date and have been disclosed by the
Executive to the CEO, the continued conduct of such activities (or the conduct
of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to
interfere with the performance of the Executive’s responsibilities to the
Company.

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3. “At-Will” Employment Relationship. Executive’s employment with the Company is not
for any specified period and may be terminated at any time, with or without
cause or advance notice, except as notice may be otherwise required under
various provisions of this Agreement, by either the Executive or the Company. In
addition, the Company reserves the right to modify Executive’s position or
duties to meet business needs and to use discretion in deciding on appropriate
disciplinary actions; however, it is understood that at no time will the
modification of the Executive’s position or duties include a diminished
responsibility or authority customarily performed, undertaken and exercised by
persons situated in a similar executive capacity. No representative of the
Company, other than the Chief Executive Officer, has the authority to alter the
At-Will relationship and nothing in this Agreement is intended to or should be
construed to contradict, modify or alter this At-Will relationship. 

4. Compensation. 

a. Base Salary. As compensation for Executive’s performance of Executives duties
hereunder, the Company shall pay to Executive an initial Base Salary of
$270,000.00 per year, as may be adjusted from time to time. Such Base Salary,
less applicable withholdings and authorized deductions shall be payable in
accordance with the Company’s customary practices applicable to its executives.

b. Incentive Compensation. In addition to Base Salary, Executive will be
eligible to earn, for each fiscal year ending during the Employment Term,
incentive compensation, in an amount up to 50% of Executive’s then-current base
salary per year, in accordance with the terms and conditions of the incentive
plan approved by the Compensation Committee. The actual plan terms, conditions,
and any payment thereunder to be determined by the Company and the Compensation
Committee, in its sole and absolute discretion. Executive may also earn
additional performance bonuses tied to achievement of specific goals as approved
by the Compensation Committee from time to time. All incentive compensation and
additional performance bonuses that may be earned during a fiscal year by
Executive are referred to herein as “Performance Bonuses.” 

5. Benefits. 

a. Customary Fringe Benefits. Executive will be eligible for all customary and
usual fringe benefits generally available to other similarly situated executives
of the Company, subject to the terms and conditions of the Company’s benefit
plans. Company reserves the right to change or eliminate the fringe benefits on
a prospective basis, at any time. Current benefits include health and welfare
benefits (including vision and dental), STD/LTD, group life insurance and
retirement benefits (401(k)). 

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b. Time Off. During the Employment Term, Executive will be eligible to accrue and
use a total of 20 days paid vacation (as may be increased from time to time) and
sick days in accordance with the Company’s policies as in effect from time to
time. Executive shall schedule vacation so that it does not interfere in any
material respect with the performance of Executive’s duties hereunder and so as
to minimize disruption to the Company’s business, consulting with the Chief
Executive Officer in advance of scheduling any planned time off. 

c. Business Expenses. Executive will be reimbursed for all reasonable
out-of-pocket business expenses incurred in the performance of Executive’s
duties on behalf of the Company. Such expenses must be in accordance with the
Company’s then-current expense policies. Any requests for reimbursement must be
made promptly with appropriate documentation, using the approved expense
reimbursement process. 

6. Termination of Executive’s
Employment. 

a. Definitions. For purposes of this Agreement, the following definitions
apply:

(i) Notice of Termination. For purposes of this Agreement, a “Notice of
Termination” shall mean a written notice which indicates the specific
termination provision in this Agreement, if any, relied upon, and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive’s employment under the provision so
indicated, if any, and the Termination Date. For purposes of this Agreement, no
purported termination of employment shall be effective without such Notice of
Termination 

(ii) Termination Date. For purposes of this Agreement, “Termination
Date” shall mean, in the case of the Executive’s death, the date of death, or in
all other cases, the effective date of the Executive’s termination of employment
from all positions with the Company, as specified in the Notice of Termination,
subject to the following: 

(1) If the Executive’s
employment is terminated by the Company for Cause, the date of the Notice of
Termination; 

(2) If the Executive’s
employment is terminated by the Company due to Disability, the date specified in
the Notice of Termination shall be at least thirty (30) days from the date the
Notice of Termination is given to the Executive, except as otherwise noted in
this section; and 

(3) If the Executive’s
employment is terminated by the Executive for Good Reason, the date specified in
the Notice of Termination shall not be more
than thirty (30) days from the date the Notice of Termination is given to the
Company. 

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(iii) Cause. For purposes of this Agreement, “Cause” is defined as:

(1) the Executive’s theft,
dishonesty, or falsification of any Company documents or records;

(2) the Executive’s
improper use or disclosure of the Company’s confidential or proprietary
information;

(3) any action, disruptive
conduct or employment-related misconduct by the Executive which has a
detrimental effect on the Company’s reputation or business, including, without
limitation, conduct by the Executive which is intended to adversely affect
overall employee morale;

(4) the Executive’s failure
or inability to perform any reasonable assigned duties after written notice from
the Company of, and a reasonable opportunity to cure, such failure or
inability;

(5) any material breach by
the Executive of any employment agreement between the Executive and the Company,
which breach is not cured pursuant to the terms of such agreement; or

(6) the Executive’s
conviction (including any plea of guilty or nolo contendere) of any criminal act
which impairs the Executive’s ability to perform his or her duties with the
Company.

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(iv) Disability. The Company may terminate the Executive’s employment upon Executive’s
Disability. For purposes of this Agreement, Disability means a physical or
mental infirmity which, despite any legally required accommodations, impairs the
Executive’s ability to substantially perform Executive’s duties under this
Agreement which continues for a period of at least ninety (90) consecutive days
and which is determined to be total and permanent by a physician selected by the
Company or its insurers and reasonably acceptable to the Executive or the
Executive’s legal representative. The Executive shall be entitled to the
compensation and benefits provided for under this Agreement for any period of
time during the Employment Term and prior to the Termination Date
resulting from the Executive being unable to work due to a physical or mental
infirmity and as otherwise provided in this Agreement in connection with the
Disability; provided, however, that the receipt of disability insurance payments
or benefits will not result in a duplication of any other compensation or
benefits otherwise provided for under this Agreement during any such period.
Notwithstanding anything contained in this Agreement to the contrary, until the
Termination Date specified in the Notice of Termination relating to the
Executive’s Disability, in the event the Executive is no longer under a
Disability, the Executive will be entitled to return to the Executive’s position
on a regular basis with the Company as set forth in this Agreement, in which
event no termination by reason of the Disability will be deemed to have
occurred. 

(v) Good Reason. The Executive may terminate Executive’s
employment for “Good Reason” within thirty (30) days following the occurrence of
one or more of the events or conditions as described in this section, to which
the Executive has not consented, by submitting a resignation in writing from all
positions Executive then holds with the Company. For purpose of this Agreement,
a resignation for “Good Reason” is defined as: 

(1) A material diminution
of Executive’s duties or responsibilities, unless otherwise agreed to by the
Executive; Executive must provide the Company with written notice of Executive’s
objection to the change in duties or responsibilities, which is not cured, to
the extent susceptible to cure, within ten (10) days after notice, or the
Executive will be deemed to have agreed to the changes; 

(2) A material breach by
the Company of any provision of this Agreement; provided however, the Executive
shall first notify the Company in writing stating with reasonable specificity
the breach by the Company and the Executive shall only have Good Reason to
terminate Executive’s employment if the Company fails to commence action
reasonably necessary to cure such breach within ten (10) days following the date
of the Company’s receipt of the Executive’s written notice thereof; 

(3) The failure by the
Company to obtain an agreement, reasonably satisfactory to the Executive, from
any successor or assign of the Company to assume and agree to perform this
Agreement; 

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(4) Any material reduction,
of 10% or greater, in Executive’s base salary or incentive compensation
opportunity; or, 

(5) A relocation of
Executive’s place of employment by more than fifty (50) miles, if Executive
routinely reports to work at a Company office.

(vi) Change in Control. A “Change in Control” is defined as any one of
the following occurrences: 

(1) Any “person” (as such
term is used in Sections 13(d) and 14(d) of the Securities and Exchange Act of
1934 as amended (the “Exchange Act”), other than a trustee or other fiduciary
holding securities of the Company under an employee benefit plan of the Company,
becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under the
Exchange Act), directly or indirectly, of the securities of the Company
representing more than 50% of a) the outstanding shares of common stock of the
Company or b) the combined voting power of the Company’s then-outstanding
securities; or, 

(2) The sale or disposition
of all or substantially all of the Company’s assets (or any transaction having
similar effect is consummated); or, 

(3) The Company is party to
a merger or consolidation that results in the holders of voting securities of
the Company outstanding immediately prior thereto failing to continue to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than 50% of the combined voting power
of the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation; or, 

(4) There occurs a sale to
a “person” (as such term is defined in Section 13(d) of the Exchange Act) of
securities of the Company representing more than fifty percent (50%) of the
total number of votes that may be cast for the election of directors of the
Company. 

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b. Severance if Termination Without Cause by Company
or if Resignation for Good Reason by Executive. Although the Company or Executive may terminate
this Agreement At-Will, if the Company elects to terminate Executive’s
employment without “Cause” or Executive resigns for “Good Reason” (as defined
herein), Executive shall be eligible to receive the following Termination
Severance Benefits: i) all accrued and unpaid Base Salary earned during the
Employment Term, ii) a payment equal to the product of (A) the Performance
Bonuses, if any, that the Executive would have earned for that fiscal year in
which the Termination Date occurs based on actual achievement against the
applicable performance goals for such year and (B) a fraction, the numerator of
which is the number of days the Executive was employed by the Company during the
year of termination and the denominator of which is the number of days in such
year (the “Pro-Rata Bonus”), to be paid on the date that annual bonuses are paid
to similarly situated executives, but in no event later than two-and-one-half
(2-1/2) months following the end of the fiscal year in which the Termination
Date occurs; and iii) cash severance payments equivalent to twelve (12) months
of the Executive’s Base Salary then in effect on the Termination Date, payable
as “salary continuation” in accordance with the Company’s regular payroll cycle,
commencing on the first payroll period that is 31 days following the Termination
Date; and iv) the continuation of Executive’s existing health insurance benefits
for a twelve (12) month period, if permitted by the Company’s health insurance
plan (at the then-current contribution levels), or, if not permitted by the
Company’s health insurance plan, the Company will reimburse the Executive for
the cost of twelve (12) months of Executive’s COBRA health insurance
continuation benefits (assuming Executive is COBRA-eligible). All other Company
obligations to the Executive will be terminated and completely extinguished.
Provision of the Termination Severance Benefits is contingent on a) the
Executive’s continued compliance with all surviving provisions of this Agreement
and b) the Executive’s execution of a full general release, releasing all
claims, known and unknown, that Executive may have against the Company, arising
out of or in any way related to Executive’s employment or termination of
employment with the Company, on terms satisfactory to the Company, including a
reciprocal non-disparagement clause in favor of both the Company and the
Executive. If such a general release described in clause b) has not been
executed and delivered and become irrevocable on or before the 30th
day following the Termination Date, no amounts or benefits under this Agreement
shall be or become payable. 

c. Severance if Termination Within Twelve (12) Months
Following a Change in Control.
Although the Company or Executive may terminate this Agreement At-Will, if the
Company elects to terminate Executive’s employment without “Cause” or Executive
resigns for “Good Reason” (as defined herein) on or within a period of twelve
(12) months following a Change in Control (as defined herein), Executive shall
be eligible to receive the following Change in Control Severance Benefits: i)
all accrued and unpaid Base Salary earned during the Employment Term, ii) cash
severance payments equivalent to (A) twelve (12) months of the Executive’s Base
Salary and (B) the Executive’s maximum Performance Bonuses payable for the
fiscal year in effect on the Termination Date, payable as “salary continuation”
in accordance with the Company’s regular payroll cycle, commencing on the first
payroll period that is 31 days following the Termination Date; iii) the
continuation of Executive’s existing health insurance benefits for a twelve (12)
month period, if permitted by the Company’s health insurance plan (at the
then-current contribution levels), or, if not permitted by the Company’s health insurance plan, the Company will
reimburse the Executive for the cost of twelve (12) months of Executive’s COBRA
health insurance continuation benefits (assuming Executive is COBRA-eligible);
and iv) any outstanding unvested equity awards, including stock options under
any Company stock option plans, shall become fully vested and exercisable as of
the Termination Date. All other Company obligations to the Executive will be
terminated and completely extinguished. Provision of the Change in Control
Severance Benefits is contingent on a) the Executive’s continued compliance with
all surviving provisions of this Agreement and b) the Executive’s execution of a
full general release, releasing all claims, known and unknown, that Executive
may have against the Company, arising out of or in any way related to
Executive’s employment or termination of employment with the Company, on terms
satisfactory to the Company, including a reciprocal non-disparagement clause in
favor of both the Company and the Executive. If such a general release described
in clause b) has not been executed and delivered and become irrevocable on or
before the 30th day following the Termination Date, no amounts or
benefits under this Agreement shall be or become payable. 

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7. Restrictive
Covenants. Executive acknowledges
and agrees that in reliance upon Executive’s promises and representations in
this Agreement, Executive has been and shall be placed in a position of special
trust and confidence wherein: (i) Executive is provided with a portion of the
Confidential information (defined below) of the Company and its subsidiaries,
(ii) is paid to develop goodwill and valuable business relationships on behalf
of the Company, and/or (iii) is provided specialized training. The compensation
to be paid to the Executive under this Agreement (including severance payment
rights), and the Executive’s eligibility to receive awards of options to
purchase shares of the Company’s Common Stock under the Company’s 2010 Stock
Option Plan (or any other equity plans of the Company), are also expressly
understood to be consideration in exchange for Executive’s promises and
representations in this Agreement. Executive acknowledges that Executive’s
services have been and will be of special, unique and extraordinary value to the
Company and its subsidiaries, and that the restrictions provided for in this
Agreement are reasonable and necessary for the protection of the Company’s
legitimate business interests. Accordingly, Executive covenants and
agrees:

a. Confidential
Information / Nondisclosure.

(i) Confidential Information. “Confidential
Information” refers to an item of information or a compilation
of information, in any form (tangible or intangible), related to the Company’s
business that Company has not made public or authorized public disclosure of,
and that is not generally known to the public through proper means. Confidential
Information includes, but is not limited to: (a) Company’s internal analysis and
information regarding business opportunities, business plans, customer and
prospective customer lists, marketing plans and strategies, research and
development data, buying practices, financial data, operational data, methods,
techniques, technical data, know-how, innovations, computer programs, un-patented inventions, and trade
secrets; and (b) information about the business affairs of third parties
(including, but not limited to, customers and acquisition targets) that such
third parties provide to Company in confidence. Executive acknowledges that
items of Confidential Information are Company’s valuable assets and have
economic value, actual or potential, because they are not known by the public or
others who are not obligated to keep them confidential and who could use them to
their own economic benefit or to the competitive disadvantage of the Company,
and thus, should be treated as Company’s trade secrets.

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(ii) Nondisclosure. During
employment and for so long thereafter as the information qualifies for
protection as Confidential Information under this Agreement, Executive will
avoid engaging in any use or disclosure of Confidential Information that is not
expressly authorized in writing by the Company or required as part of
Executive’s performance of his or her job duties undertaken for the benefit of
the Company. Notwithstanding the foregoing, nothing herein shall be construed to
prohibit the reporting of a violation of law that is protected by law, or to
prohibit a disclosure of information that is compelled by law; provided,
however, that to the extent allowed by law, Executive will give Company as much
advance written notice as possible under the circumstances prior to such a
disclosure and will cooperate with Company in any legal action undertaken to
protect the confidentiality of the information.

(iii) Property Rights. All Confidential Information shall be considered
the property of the Company in its collected, compiled and stored form in the
Company’s files, records, and computer systems. Company files and records (in
physical and electronic or digital form) are Company property and may not be
copied, removed, or destroyed without Company authorization. 

(iv) Limited Computer Authorization. Executive is authorized to access only those
Company computers that are designated for Executive’s use by the Company, and
may only do so while in the active employment of the Company. All such
authorization ends immediately upon the termination of employment. Executive is
not authorized to access and use the Company’s computers, email, or related
computer systems to compete or to prepare to compete, or to otherwise compromise
the Company’s legitimate business interests, and any such unauthorized access to
or use of the Company’s computers in violation of the foregoing understanding
may subject Executive to civil and/or criminal liability. 

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(v) Return of Property. When Executive’s employment with Company ends,
or sooner if so requested, Executive will immediately return to Company any
Company property in Employee’s possession, including the following: all
Confidential Information; all records related to Company’s Intellectual
Property: and, all customer files, account files, price lists, product
information, and training manuals whether confidential or not; and, all keys and
security and credit cards; all equipment, products, samples, inventory, tools,
computers, software, cell phones and other electronic devices belonging to the
Company. At Company’s request, and without destroying or deleting any contents
thereof, Executive shall turn over to the Company for inspection, any personal
storage devices such as thumb drives, cell phones, or lap tops, Executive has
used to conduct Company business or to store any information related to the
Company’s business so that the Company can retrieve its property and insure that
all Company materials have been returned and not copied or retained in violation
of this Agreement. 

(vi) Necessary Additional Protections. Executive acknowledges that the foregoing
confidentiality and nondisclosure obligations are not sufficient standing alone
to adequately protect the Company’s Confidential Information because some
positions, services, and activities will, by their nature require or involve the
use of Confidential Information, intentionally or not, that cannot be detected
and addressed before irreparable harm is likely to occur; and, accordingly, the
additional restrictions provided for in the remainder of this Section 7 are
reasonable and necessary restrictions to avoid irreparable harm to the Company.

b. Non-Compete Covenant. During the Employment Term and for a period of
twelve (12) months thereafter (the “Restricted Period”), the Executive shall
not, directly or indirectly, compete with the Company by providing, managing, or
supervising services (as an employee, director, officer, owner, manager,
partner, consultant or otherwise) that: (i) are the same as, or similar in
nature, function or purpose to the services Executive performed for the Company
in the preceding two years, or (ii) would otherwise be likely to involve the use
or disclosure of the Company’s Confidential Information; for the benefit of any
business enterprise directly engaged in e-discovery software for processing,
search, review and production of data for litigation, compliance and regulatory
matters, information archiving and information governance and related software
solutions (the “Company Business”), in any state within the United States where
the Company or any of its subsidiaries that Executive has material contact with
or confidential information about conducts business during the Employment Term
(collectively, the “Territory”). Notwithstanding the foregoing, the Executive’s
passive, non-controlling ownership interest in a company solely as an investor
of five percent (5%) or less of the outstanding securities of any class of any publicly-traded securities of any company
shall not, by itself, be considered prohibited competition under this
Agreement.

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c. Non-solicitation of Customers. During the Restricted Period, the Executive
shall not knowingly, directly or indirectly, solicit or attempt to solicit any
customer of the Company that Executive had business-related contact with or
Confidential Information about in the preceding two years for the purpose of
inducing or encouraging the customer to (i) cease or reduce doing business with
the Company or its subsidiaries, (ii) divert a business opportunity away from
the Company or its subsidiaries, or (iii) purchase goods or services that
compete with those of the Company or its subsidiaries that Executive had
material involvement with or Confidential Information about in the preceding two
years; nor will Executive knowingly help another person engage in such
solicitation. As used herein, “customer” shall be understood to include any
person or entity that has an ongoing business relationship with the Company and
those with whom the Company has a reasonable expectation of doing business based
on outstanding proposals or other negotiations in effect at the time Executive’s
employment ends. As used herein, “solicit” means to knowingly communicate with a
person or entity, whether directly or indirectly, in order to induce, cause or
encourage the person or entity to engage in a particular course of conduct (such
as buying a good or service), regardless of which party first initiates the
communication or whether the communication is in response to an inquiry or not.
This restriction is not intended to cover a general media advertisement or
similar communication that advertises the services or products of a business in
a general fashion without reference to any particular person and that is not
targeted at a particular customer, person or entity.

d. Non-Solicitation of Employees. During the Restricted Period, the Executive
shall not knowingly, directly or indirectly, solicit or attempt to solicit an
employee or independent contractor providing personal services to the Company
for the purpose of inducing or encouraging that person to (i) cease providing
services to the Company or terminate the parties’ business relationship, or (ii)
to provide services to any person or entity that competes with the Company’s
Business.

e. Mutual Non-disparagement Covenant. During the Employment Term and thereafter, the
Executive shall not, directly or indirectly, take any action, or encourage
others to take any action, to disparage or criticize the Company, its
subsidiaries, or their employees, officers, directors, products, services,
customers or owners. During the Employment Term and thereafter, the Company
shall not, directly or indirectly, take any action, or encourage others to take
any action, to disparage the Executive’s reputation. Nothing contained in this
Section 7(e) shall preclude the Executive from enforcing his rights under this
Agreement or prevent the Executive, the Company, or its employees, officers and
directors, from truthfully testifying in response to legal process or a
governmental inquiry. 

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f. Enforcement. The Executive acknowledges that a breach of the
covenants contained in this Section 7 would cause irreparable damage to the
Company, the exact amount of which would be difficult to ascertain, and that the
remedies at law for any such breach or threatened breach would be inadequate.
Accordingly, the Executive agrees that if he or she breaches or threatens to
breach any of the covenants contained in this Section 7, in addition to any
other remedy which may be available at law or in equity, the Company shall be
entitled to: (i) institute and prosecute proceedings in any court of competent
jurisdiction for specific performance and injunctive and other equitable relief
to prevent the breach or any threatened breach thereof without bond or other
security or a showing of irreparable harm or lack of an adequate remedy at law,
and (ii) an equitable accounting by any court of competent jurisdiction of all
profits or benefits arising out of such violation.

g. Scope of Covenants. The Company and the Executive further
acknowledge that the time, scope, geographic area and other provisions of this
Section 7 are reasonable and necessary for the protection of the interests of
the Company, but if any such restriction or covenant shall be held by any court
of competent jurisdiction to be void but would be valid if deleted in part or
reduced in application, such restriction or covenant shall apply in such
jurisdiction with such deletion or modification as may be necessary to make it
valid and enforceable. The restrictions and covenants contained in each
paragraph of this Section 7 shall be construed as separate and individual
restrictions and covenants and shall each be capable of being reduced in
application or severed without prejudice to the other restrictions and covenants
or to the remaining provisions of this Agreement. 

h. Enforceability. The restrictive covenants of this Section 7 are
in addition to the covenants that the Executive must comply with during and
following the Executive’s employment under the Company’s applicable
confidentiality, invention assignment, insider trading policy (“ITP”) and
non-disclosure agreements (collectively, the “Covenants”). This Agreement shall
be read to supplement and not replace or eliminate any of Executive’s
obligations under the Covenants. In the event of a breach of the Covenants, the
Company shall have all the remedies available thereunder in addition to the
remedies under this Section 7. If any court holds any of the restrictions or
covenants contained in this Section 7 to be unenforceable by reason of their
breadth or scope or otherwise, it is the intention of the parties hereto that
such determination not bar or in any way affect the right of the Company to the
relief provided in this Section 7 in the courts of any other jurisdiction within
the geographic scope of such restrictions and covenants. 

i. Disclosure of Restrictive
Covenants. The Executive agrees
to disclose in advance the existence and terms of the restrictions and covenants
contained in this Section 7 to any employer or other service recipient by whom
the Executive may be employed or retained during the Restricted Period.
Executive understands that both the Company and Executive have the right to
provide another party an opinion about interpretation and/or application of this Agreement; Executive consents to such
communications, and agrees not to assert a claim of wrongdoing by Company as a
result of such a communication.

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j. Extension of Restricted Period. If the Executive breaches a time-limited
post-employment restriction created in this Section 7, then the time limitation
for the violated restriction will be extended by one day for each day Executive
is found to have been in violation of the restriction up to a length of time
that is equal in duration to the length of restriction originally provided for
so that Company gets the full benefit of compliance for the length of time
originally provided for. 

8. Injunctive
Relief. Executive acknowledges
that Executive’s breach of the Covenants would cause irreparable injury to the Company, and agrees that
in the event of any such breach, the Company shall be entitled to seek
temporary, preliminary and permanent injunctive relief, without the necessity of
proving actual damages or posting any bond or surety. 

9. AGREEMENT TO ARBITRATE. TO THE FULLEST EXTENT PERMITTED BY LAW, EXECUTIVE AND COMPANY AGREE TO
ARBITRATE ANY CONTROVERSY, CLAIM OR DISPUTE BETWEEN THEM ARISING OUT OF OR IN
ANY WAY RELATED TO THIS AGREEMENT, THE EMPLOYMENT RELATIONSHIP BETWEEN THE
COMPANY AND EXECUTIVE AND ANY DISPUTES UPON TERMINATION OF EMPLOYMENT, INCLUDING
BUT NOT LIMITED TO BREACH OF CONTRACT, TORT, DISCRIMINATION, HARASSMENT,
WRONGFUL TERMINATION, DEMOTION DISCIPLINE, FAILURE TO ACCOMMODATE, FAMILY AND
MEDICAL LEAVE, COMPENSATION OR BENEFITS CLAIMS, CONSTITUTIONAL CLAIMS; AND ANY
CLAIMS FOR VIOLATION OF ANY LOCAL, STATE OR FEDERAL LAW, STATUTE, REGULATION, OR
ORDINANCE OR COMMON LAW. CLAIMS FOR WORKERS’ COMPENSATION, UNEMPLOYMENT
INSURANCE BENEFITS, BREACH OF THE COMPANY’S EXECUTIVE INNOVATIONS AND
PROPRIETARY RIGHTS AGREEMENT AND OTHER CONFIDENTIALITY AGREEMENTS, AND COMPANY’S
RIGHT TO OBTAIN INJUNCTIVE RELIEF PURSUANT TO SECTION 8 ARE EXCLUDED. BY
ACCEPTING EMPLOYMENT WITH THE COMPANY, THE EXECUTIVE WAIVES THE RIGHT TO A JURY
TRIAL WITH RESPECT TO ANY SUCH DISPUTES (EXCLUDING THOSE AFOREMENTIONED). FOR
THE PURPOSE OF THIS AGREEMENT TO ARBITRATE, REFERENCES TO THE COMPANY INCLUDE
ALL PARENT, SUBSIDIARY, OR RELATED ENTITIES AND THEIR EMPLOYEES, SUPERVISORS,
OFFICERS, DIRECTORS, AGENTS, PENSION OR BENEFIT PLAN SPONSORS, FIDUCIARIES,
ADMINISTRATORS, AFFILIATES, AND ALL SUCCESSORS AND ASSIGNS OF ANY OF THEM, AND
THIS AGREEMENT SHALL APPLY TO THEM TO THE EXTENT EXECUTIVE’S CLAIMS ARISE OUT OF
OR RELATE TO THEIR ACTIONS ON BEHALF OF THE COMPANY. 

a. Consideration for Arbitration
Agreement. The mutual promise by
Company and Executive to arbitrate any and all disputes between them (except for
those referenced above) rather than litigate them before the courts or other
bodies, provides the consideration for this agreement to arbitrate. 

Page 13 

	Initials:  	 	 /  	 

b. Initiation of Arbitration. Either party may exercise the right to arbitrate
by providing the other party with written notice of any and all claims forming
the basis of such right in sufficient detail to inform the other party of the
substance of such claims. In no event shall the request for arbitration be made
after the date when institution of legal or equitable proceedings based on such
claims would be barred by the applicable statutes of limitation. 

c. Arbitration Procedure. The arbitration will be conducted in the state
and county in which the Company is headquartered by a single neutral arbitrator
and in accordance with the then-current rules for resolution of employment
disputes of the American Arbitration Association (“AAA”). The parties are
entitled to representation by an attorney or other representative of their
choosing. The arbitrator shall have the power to enter any award that could be
entered by a judge of the trial court of the state in which the Company is
headquartered and shall follow the applicable law. The parties agree to abide by
and perform any award rendered by the arbitrator. The arbitrator shall issue the
award in writing and therein state the essential findings and conclusions on
which the award is based. Judgment on the award may be entered in any court
having jurisdiction thereof. 

d. Costs of Arbitration. Company shall bear the costs of the arbitration
filing fees; the hearing fees and cost of the arbitrator will be initially borne
by the Company, but the non-prevailing party, as determined by the arbitrator,
shall be responsible for the hearing fees and costs of the arbitrator.

10. General
Provisions. 

a. Successors and Assigns. The rights and obligations of the Company under
this Agreement shall inure to the benefit of and shall be binding upon the
successors and assigns of the Company and the Company shall require any
successor or assign to expressly assume and agree to perform this Agreement in
the same manner the Company would be required to perform if no such succession
or assign had occurred. This Agreement shall automatically insure to the benefit
of, and be enforceable by, the Company’s owners, parent, subsidiaries,
affiliates, successors, and assigns to protect the property and interests of
same as if they were the Company without the need for any further action or
agreement by Executive. Executive acknowledges that the sharing of Confidential
Information and intellectual property interests between these entities gives
them a material property interest in the enforcement of this Agreement. This
agreement may be assigned by the Company as part of any sale, transfer, merger
or other disposition of the Company or its assets. Executive’s rights hereunder
are personal and may not be assigned or transferred to any other person, firm,
or corporation without the prior, express and written consent of the
Company.

Page 14 

	Initials:  	 	 /  	 

b. Section 409A of the Internal Revenue Code of
1986 (the “Code”). This Letter
Agreement is intended to meet the requirements of Section 409A of the Code, and
will be interpreted and construed consistent with that intent. For purposes of this Agreement, the terms “terminate,” “terminated” and
“termination” mean a termination of Executive’s employment that constitutes a
“separation from service” within the meaning of the default rules of Section
409A of the Code. Notwithstanding any other provision of this Agreement, to the
extent that the right to any payment (including the provision of benefits)
hereunder provides for the “deferral of compensation” within the meaning of
Section 409A(d)(1) of the Code, the payment will be paid (or provided) in
accordance with the following: 

(i) If Executive is a
“Specified Employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code
on the Termination Date, then no such payment shall be made or commence during
the period beginning on the Termination Date and ending on the date that is six
(6) months following the Termination Date or, if earlier, on the date of
Executive’s death. The amount of any payment that would otherwise be paid to
Executive during this period will instead be paid on the fifteenth
(15th) day of the first calendar month following the end of the
period. 

(ii) Payments with respect
to reimbursements of expenses, including COBRA or legal fees shall be made or
provided in accordance with the requirements of Code Section 409A, including,
where applicable, the requirement that the reimbursement be made on or before
the last day of the calendar year following the calendar year in which the
relevant expense is incurred. The amount of expenses eligible for reimbursement
during a calendar year may not affect the expenses eligible for reimbursement in
any other calendar year. In no event will any reimbursement be made following
the last day of the third calendar year following the year in which termination
of employment occurred.

(iii) The right to a series
of installment payments under this Agreement shall be treated as a right to a
series of separate payments for purposes of Code Section 409A.

c. Excise Tax Payments. In the event of a determination that a portion of
any payment or benefit to the Executive or for Executive’s benefit payable or
distributable pursuant to the terms of this Agreement on account of or in
connection with a Change in Control event is or will be deemed to be an “excess
parachute payment” within the meaning of Section 280G of the Internal Revenue
Code of 1986, as amended (the “Code”), the Company shall pay to the Executive an
amount (the “Tax Gross-Up”) sufficient to reimburse the Executive on an
after-tax basis for any excise tax imposed, pursuant to Code Section 4999 or any
successor provision or similar tax (“Excise Tax”), on the Executive with respect
to such payments or other benefits, so that the Executive does not incur any
out-of-pocket cost with respect to such Excise Tax. For this purpose, the
Executive shall be deemed to be in the highest marginal rate of federal and
state taxes. The Tax Gross-Up payment shall be made at the time the Excise Tax triggering the right to such payment is
remitted to the appropriate tax authorities but no later than the close of the
calendar year following the calendar year in which such Excise Tax is remitted
to the appropriate tax authorities. As a condition of the Company’s payment of
the Tax Gross-Up, the Executive agrees to cooperate with the Company to furnish
such information and documents as the Company or its agents may reasonably
request in order to make a determination as to the amount of the Excise Tax. Any
such calculations shall be provided to the Executive for review, as
well.

Page 15 

	Initials:  	 	 /  	 

d. Clawback Provisions. Notwithstanding any other provisions in this
Agreement to the contrary, any incentive-based compensation, or any other
compensation, paid to the Executive pursuant to this Agreement or any other
agreement or arrangement with the Company which is subject to recovery under any
law, government regulation or stock exchange listing requirement, will be
subject to such deductions and clawback as may be required to be made pursuant
to such law, government regulation or stock exchange listing requirement (or any
policy adopted by the Company pursuant to any such law, government regulation or
stock exchange listing requirement). The Company will make any determination for
clawback or recovery in its sole discretion and in accordance with any
applicable law or regulations.

e. Waiver. Either party’s failure to enforce any provision of this Agreement shall
not in any way be construed as a waiver of any such provision, or prevent that
party thereafter from enforcing each and every other provision of this
Agreement; provided, however, that if Executive claims the Company has failed to
comply with any ongoing payment or benefit obligation, the failure to make a
timely demand for payment or other compliance within thirty (30) days of the
first due date for such an obligation shall waive the right to assert continued
entitlement or to assert subsequent breaches of the same alleged obligation at a
later time. 

f. Attorneys’ Fees. If any arbitration or other proceeding is
instituted to enforce or interpret this Agreement, the prevailing party shall be
entitled to recover from the losing party in addition to statutory costs, the
reasonable attorneys’ fees the prevailing party incurred in connection with such
arbitration or proceeding. For purposes of enforcement of Section 7 of this
Agreement, Company shall be deemed a prevailing party if Executive is found to
be in violation of any restriction in this Agreement and Company secures any
part of the injunctive relief or other equitable remedies it seeks to enforce
this Agreement.

g. Severability. In the event any provision of this Agreement is
found to be unenforceable by an arbitrator or court of competent jurisdiction,
such provision shall be deemed modified to the extent necessary to allow
enforceability of the provision as so limited, it being intended that the
parties shall receive the benefit contemplated herein to the fullest extent
permitted by law. If a deemed modification is not satisfactory in the judgment
of an arbitrator or court, the unenforceable
provision shall be deemed deleted, and the validity and enforceability of the
remaining provisions shall not be affected thereby. 

Page 16 

	Initials:  	 	 /  	 

h. Interpretation; Construction. The headings set forth in this Agreement are for
convenience only and shall not be used in interpreting this Agreement. This
Agreement has been drafted by legal counsel representing the Company, but
Executive has participated in the negotiation of its terms. Furthermore,
Executive acknowledges that Executive has had an opportunity to review and
revise the Agreement and to have it reviewed by legal counsel, if desired, and,
therefore, the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement. 

i. Governing Law and Forum Selection. This Agreement shall be governed by and
construed in accordance with the laws of the United States and the State of
Texas without regard to conflicts of law principles. All legal disputes between
the parties arising from or related to this Agreement shall be litigated in a
court of competent jurisdiction (state or federal) located in Dallas County,
Texas. The parties consent to, and hereby irrevocably submit to the jurisdiction
of such courts and waive the defense of inconvenient forum to the maintenance of
any such action or proceeding in such venue. 

j. Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be delivered as follows with notice deemed given as indicated: i) by
personal delivery when delivered personally; ii) by overnight courier upon
written verification of receipt; or iii) by certified or registered mail, return
receipt requested, upon verification of receipt. Notice shall be sent to the
addresses set forth below, or such other address as either party may specify in
writing. 

	If
      to Executive:	If
      to Company:
		 
		 
	Susan K. Conner	Daegis, Inc.
	4107 Travis Street	Attn: Human Resources
	Dallas, TX 75204	600
      E. Las Colinas Blvd., Suite 1500
		Irving, TX 75039

k. Survival. Sections 7 (“Restrictive Covenants”), 8 (“Injunctive Relief”), 9,
(“Agreement to Arbitrate”), 10 (“General Provisions”) and 11 (“Entire
Agreement”) of this Agreement shall survive Executive’s termination of
employment by the Company. This Agreement will be deemed to renew and continue
during any periods of renewal of Executive’s employment, including, but not limited to, periods of employment following
promotions or transfers, or during any subsequent re-employment by Company.
Executive understands and agrees that all the terms and obligations contained in
this Agreement are independent of the existence of any claim or cause of action
by Executive against the Company, and any such claims shall not constitute a
defense to Executive’s obligations hereunder, or to the enforcement by the
Company of this Agreement, but shall be determined separately and independently.
All common law and statutory obligations of Executive to the Company as an
employee shall remain in effect; this Agreement supplements, and shall not be
deemed to reduce or dilute, or make inapplicable, any common law or statutory
duty that Executive would otherwise have to the Company absent this
Agreement

Page 17 

	Initials:  	 	 /  	 

11. Entire Agreement. This Agreement, any Company option documents,
and the Company’s applicable confidentiality, invention assignment, insider
trading policy (“ITP”) and non-disclosure agreements constitute the entire
agreement between the parties relating to this subject matter and supersede all
prior or simultaneous representations, discussions, negotiations or agreements,
whether written or oral. This Agreement may be amended or modified only with the
written consent of the Executive and the Chief Executive Officer or the Board of
Directors of the Company. No oral waiver, amendment or modification will be
effective under any circumstances whatsoever. 

THE PARTIES TO THIS
AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY
PROVISION CONTAINED HEREIN, INCLUDING THE AGREEMENT TO ARBITRATE
DISPUTES.

	By
      the Company, Daegis, Inc.	By
      the Executive
		 
	 	 
		 
	By:	 	 	By:	 	 
	 	 	 	 	 	 
	 	Timothy P. Bacci, CEO	 	 	Susan K. Conner	 
		 
		 
		 

[REMAINDER OF PAGE LEFT
INTENTIONALLY BLANK] 

Page 18 

	Initials:  	 	 /Exhibit 10.1

 

SECURED
LINE OF CREDIT AGREEMENT

 

THIS
SECURED LINE OF CREDIT AGREEMENT, dated as of December 1, 2014 (this “Agreement”), among Emagine the Vape Stores,
LLC, a Delaware limited liability company (the “Company” or the “Debtor”), and the holders
of the Company’s 12% Secured Notes in an amount up to $3,000,000 (collectively, the “Notes”) who are
parties signatory hereto, their endorsees, transferees and assigns (collectively, the “Holders”), and Michael
Brauser, as secured party collateral agent (the “Agent”) for the Holders.

 

WHEREAS,
the Holders have severally agreed to lend money to the Company to be evidenced by the Notes;

 

WHEREAS,
in order to induce the Holders to make the loans evidenced by the Notes, the Debtor has agreed to execute and deliver to the Agent
as collateral agent on behalf of the Holders, this Agreement and to grant the Agent on behalf of the Holders, a security interest
in all of the property of the Debtor to secure the prompt payment, performance and discharge in full of all of the Company’s
obligations under the Notes.

 

NOW,
THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1.
 Certain Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this
Section 1. Terms used but not otherwise defined in this Agreement that are defined in Article 9 of the UCC shall have the respective
meanings given such terms in Article 9 of the UCC.

 

(a)
 “Collateral” means the collateral in which the Agent, for the ratable benefit of the Holders, is granted
a security interest by this Agreement which shall consist of all of the Company’s assets including the vape stores (fixtures,
inventory and other assets) to be constructed and/or developed by the Company and its affiliates as more fully described in Schedule
A (the “Security Interest”).

 

 (b) “Majority
in Interest” means, at any time of determination, the majority in interest (based on then-outstanding principal amounts
of Notes at the time of such determination) of the Holders.

 

    	1

    	 

    

  

(c)
 “Obligations” means all of the liabilities and obligations (primary, secondary, direct, contingent, sole,
joint or several) due or to become due, or that are now or may be hereafter existing, of the Debtor to the Holders under this
Agreement, the Notes, and any other instruments, agreements or other documents executed and/or delivered in connection herewith
or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent,
liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased or extinguished
and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent
all or any part of such payment is avoided or recovered directly or indirectly from any of the Holders as a preference, fraudulent
transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified from time to time. Without
limiting the generality of the foregoing, the term “Obligations” shall include, without limitation: (i) principal
of, and interest on the Notes and the loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations
and liabilities of the Debtor from time to time under or in connection with this Agreement, the Notes, and any other instruments,
agreements or other documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts (including
but not limited to post-petition interest) in respect of the foregoing that would be payable but for the fact that the obligations
to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding
involving the Debtor.

 

(d)
 “Organizational Documents” means with respect to the Debtor, the documents by which it organized, including
its Certificate of Formation and Operating Agreement.

 

(e) “UCC”
means the Uniform Commercial Code of the State of Florida and or any other applicable law of any state or states which has jurisdiction
with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of the parties that
defined terms in the UCC should be construed in their broadest sense so that the term “Collateral” will be construed
in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that broaden the definitions,
they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones
shall be controlling.

 

 2. Purchase
and Sales of the Notes. On the terms and conditions contained in this Agreement, the Holders shall lend to the Company
and the Company shall borrow from the Holders up to $________ from time-to-time. The amounts borrowed shall be evidenced by the
Notes to be issued to the Holders, a copy of which is annexed as Exhibit A.

 

 3. Representations
and Warranties of the Company. The Company represents and warrant to the Holders as of the date of this Agreement as follows:

 

 (a) The
Company has taken all corporate action necessary for the authorization, execution, delivery and performance of all Obligations
of the Company under this Agreement and any related documentation and for the authorization, issuance and delivery of the Notes
being sold under this Agreement. This Agreement and the Notes each shall constitute a valid and legally binding obligation of
the Company, enforceable in accordance with their respective terms.

 

 (b) The
Notes being purchased hereunder, when issued, sold and delivered in accordance with the terms of this Agreement, will have been
duly and validly issued, and will be fully paid and nonassessable, will have been issued in compliance with all applicable state
and federal securities laws, and will be free of any restrictions against transfer other than those set forth in this Agreement
and applicable securities laws.

 

    	2

    	 

    

  

 (c) All
consents, approvals, orders or authorizations of, or registrations, qualifications, designations, declarations or filings with,
any federal or state governmental authority or other person on the part of the Company required in connection with the execution,
delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement, shall have
been obtained on or prior to the closing, except that any notices of sale that may be required to be filed with the Securities
and Exchange Commission pursuant to Regulation D promulgated under the Securities Act of 1933 (the “Securities Act”)
or any state securities law authority pursuant to applicable blue sky laws may be filed within the applicable periods therefor.

 

(d)
 The Debtor has no place of business or offices where their respective books of account and records are kept (other than temporarily
at the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth on Schedule
B attached hereto. None of such Collateral is in the possession of any consignee, bailee, warehouseman, agent or processor.

 

(e)
 The Debtor is and/or will be the sole owner of the Collateral, free and clear of any liens, security interests, encumbrances,
rights or claims, and are fully authorized to grant the Security Interests. There is not on file in any governmental or regulatory
authority, agency or recording office an effective financing statement, security agreement, license or transfer or any notice
of any of the foregoing (other than those that will be filed in favor of the Agent for the ratable benefit of the Holders pursuant
to this Agreement) covering or affecting any of the Collateral.

 

(f)
 No written claim has been received that any Collateral or Debtor’s use of any Collateral violates the rights of any
third party. There has been no adverse decision to the Debtor’s claim of ownership rights in or exclusive rights to use
the Collateral in any jurisdiction or to the Debtor’s right to keep and maintain such Collateral in full force and effect,
and there is no proceeding involving said rights pending or, to the best knowledge of the Debtor, threatened before any court,
judicial body, administrative or regulatory agency, arbitrator or other governmental authority.

 

(g)
 The Debtor shall maintain the Collateral at the locations set forth on Schedule B attached hereto and may not relocate
such tangible Collateral unless either or both use their best efforts to deliver to the Agent promptly following such relocation
(i) written notice of such relocation and the new location thereof (which must be within the United States) and (ii) evidence
that appropriate financing statements under the UCC and other necessary documents have been filed and recorded and other steps
have been taken to perfect the Security Interests to create in favor of the Agent on behalf of the Holders a valid, perfected
and continuing perfected first priority lien in the Collateral.

 

    	3

    	 

    

  

(h)
 This Agreement creates in favor of the Agent a valid security interest in the Collateral, which security interest is held
by the Agent for the ratable benefit of the Holders, securing the payment and performance of the Obligations. Upon making the
filings described in the immediately following subsection, all security interests created hereunder in any Collateral which may
be perfected by filing UCC financing statements shall have been duly perfected. Without limiting the generality of the foregoing,
except for the filing of said financing statements, no consent of any third parties and no authorization, approval or other action
by, and no notice to or filing with, any governmental authority or regulatory body is required for (i) the execution, delivery
and performance of this Agreement, (ii) the creation or perfection of the Security Interests created hereunder in the Collateral
or (iii) the enforcement of the rights of the Agent on behalf of Holders.

 

(i)
 The Debtor hereby authorizes the Agent to file one or more financing statements under the UCC, with respect to the Security
Interests, with the proper filing and recording agencies in any jurisdiction deemed proper by it.

 

(j)
 The execution, delivery and performance of this Agreement by the Debtor does not (i) violate any of the provisions of any
Organizational Documents of the Debtor or any judgment, decree, order or award of any court, governmental body or arbitrator or
any applicable law, rule or regulation applicable to the Debtor or (ii) conflict with, or constitute a default (or an event that
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 (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
the Debtor’s debt or otherwise) or other understanding to which the Debtor is a party or by which any property or asset
of the Debtor is bound or affected. If any, all required consents (including, without limitation, from stockholders or creditors
of the Debtor) necessary for the Debtor to enter into and perform their obligations hereunder have been obtained.

 

(k)
 The Debtor shall at all times maintain the liens and Security Interests provided for hereunder as valid and perfected first
priority liens and security interests in the Collateral in favor of the Agent for the ratable benefit of the Holders, until this
Agreement and the Security Interest hereunder shall be terminated upon payment in full of the Notes. The Debtor hereby agrees
to defend the same against the claims of any and all persons and entities. The Debtor shall safeguard and protect all Collateral
for the account of the Agent for benefit of the Holders. At the request of the Agent, the Debtor will sign and deliver to the
Agent on behalf of the Holders at any time or from time to time one or more financing statements pursuant to the UCC in form reasonably
satisfactory to the Agent and will pay the cost of filing the same in all public offices wherever filing is, or is deemed by the
Agent to be, necessary or desirable to effect the rights and obligations provided for herein. Without limiting the generality
of the foregoing, the Debtor shall pay all fees, taxes and other amounts necessary to maintain the Collateral and the Security
Interests hereunder, and the Debtor shall obtain and furnish to the Agent from time to time, upon demand, such releases and/or
subordinations of claims and liens which may be required to maintain the priority of the Security Interests hereunder.

 

    	4

    	 

    

  

(l)
 Except as provided in this Agreement, the Debtor will not transfer, pledge, hypothecate, encumber, license, sell or otherwise
dispose of any of the Collateral (except for the sales of inventory by the Debtor in its ordinary course of business) without
the prior written consent of Agent.

 

(m) The
Debtor shall keep and preserve the equipment, inventory and other tangible Collateral in good condition, repair and order and
shall not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

 

(n) The
Debtor shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, against loss or
damage of the kinds and in the amounts customarily insured against by entities of established reputation having similar properties
similarly situated and in such amounts as are customarily carried under similar circumstances by other such entities and otherwise
as is prudent for entities engaged in similar businesses but in any event sufficient to cover the full replacement cost thereof.
The Debtor shall cause each insurance policy issued in connection herewith to provide, and the insurer issuing such policy to
certify to the Agent, that (a) the Agent will be named as lender loss payee and additional insured under each such insurance policy;
(b) if such insurance be proposed to be cancelled or materially changed for any reason whatsoever, such insurer will promptly
notify the Agent and such cancellation or change shall not be effective as to the Agent for at least 30 days after receipt by
the Agent of such notice, unless the effect of such change is to extend or increase coverage under the policy; and (c) the Agent
will have the right (but no obligation) at its election to remedy any default in the payment of premiums within 30 days of notice
from the insurer of such default.

 

(o)
 The Debtor shall promptly execute and deliver to the Agent such further deeds, mortgages, assignments, security agreements,
financing statements or other instruments, documents, certificates and assurances and take such further action as the Agent may
from time to time request and may in its sole discretion deem necessary to perfect, protect or enforce the Agent’s security
interest in the Collateral.

 

(p)
 The Debtor shall permit the Agent and its representatives and agents to inspect the Collateral during normal business hours
and upon reasonable prior notice, and to make copies of records pertaining to the Collateral as may be reasonably requested by
the Agent from time to time.

 

(q) The
Debtor will from time to time, at the joint and several expense of the Debtor, promptly execute and deliver all such further instruments
and documents, and take all such further action as may be necessary or desirable, or as the Agent may reasonably request, in order
to perfect and protect any security interest granted or purported to be granted hereby or to enable the Agent to exercise and
enforce its rights and remedies hereunder on behalf of the Holders and with respect to any Collateral or to otherwise carry out
the purposes of this Agreement.

 

    	5

    	 

    

  

 4. Representations
and Warranties of the Holders.

 

 (a) Each
Holder has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby,
including the purchase of the Notes set forth on the signature page. This Agreement, when executed and delivered by each Holder,
will constitute a valid and legally binding obligation of such Holder, enforceable against him, her or it in accordance with its
terms.

 

 (b) Each
Holder is acquiring the Note to be purchased by such Holder for his own account for investment and not with a view to, or for
sale in connection with, any distribution thereof, nor with any present intention of distribution or selling the same, and, except
as contemplated by this Agreement, such Holder has no present or contemplated agreement, undertaking, arrangement, obligation,
indebtedness or commitment providing for the disposition thereof. Each Holder understands that the Note may not be sold, transferred
or otherwise disposed of without registration under the Securities Act or an exemption therefrom, and that in the absence of an
effective registration statement covering the Note or an available exemption from registration under the Securities Act, the Note
must be held indefinitely.

 

 (c) Each
Holder understands that the Note is not registered under the Securities Act in reliance on an exemption from registration under
the Securities Act pursuant to Section 4(a)(2) thereof and Rule 506(b) thereunder for the sale contemplated by this Agreement
and each of the Notes will bear a restrictive legend.

 

 (d) Each
Holder acknowledges that the purchase of the Note, entails a high degree of risk. These risks include, without limitation,
the inability of the Company to achieve its business plan objectives and the risk of a failure to pay in full the principal and
interest of the Note in accordance with their terms.

 

 (e) Each
Holder represents that he has had an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of this Agreement and the reasons for this offering of the Notes, the business prospects of the Company, the risks
attendant to the Company’s business, and the risks relating to an investment in the Company, including the terms and conditions
of the Note and further acknowledges that he has had an opportunity to obtain additional information (to the extent the Company
possesses such information and could acquire it without unreasonable effort or expense) necessary to verify the accuracy of any
information furnished to such Holder or to which such Holder had access. The Company will put such information in writing if requested
by the Holder.

 

 (f) Each
Holder represents that he is an “accredited holder” within the meaning of the applicable rules and regulations promulgated
under the Securities Act or is otherwise experienced in evaluating and investing in private placement transactions of securities
in similar circumstances and acknowledges that he:

 

    	6

    	 

    

 

	 	●	can
    bear the economic risk of such Holder’s investment;
	 	 	 
	 	●	has such knowledge
    and experience in financial and business  matters that such Holder is capable of evaluating the merits and  risks
    of the investment in the Notes.

 

Further,
the Holder:

 

	 	●	has
adequate means of providing for his, her or its current financial needs and contingencies, 
	 	 	 
	 	●	is
able to bear the substantial economic risks of an investment in the Note for an indefinite period of time, 
	 	 	 
	 	●	has
no need for liquidity in such investment, 
	 	 	 
	 	●	has
made commitments to investments that are not readily marketable which are reasonable in relation to the Holder’s net worth,
and 
	 	 	 
	 	●	can
afford a complete loss of such investment.

 

 (g) Each
Holder acknowledges that he, she or it is purchasing the Notes for an indefinite period of time, has no need for liquidity
in such investment, has made commitments to investments that are not readily marketable which are reasonable in relation to the
undersigned’s net worth and can afford a complete loss of such investment.

 

 (h) Each
Holder has such knowledge and experience in financial, tax and business matters so as to enable it to utilize the information
made available to it in connection with the offering of the Notes to evaluate the merits and risks of an investment in the Notes
and to make an informed investment decision with respect thereto.

 

 (i) Each
Holder is not relying on the Company with respect to the tax and other economic considerations of an investment in the Notes,
and such Holder has relied on the advice of, or has consulted with, only the Holder’s own advisors.

 

 (j) Each
Holder is not subscribing for the Notes as a result of or subsequent to any advertisement, articles, notice or other communication
published in any newspaper, television or radio or presented at any seminar or meeting, or any solicitation of a subscription
by a person not previously known to the undersigned in connection with investments in securities generally.

 

 (k) The
information contained in this Agreement including Schedule C, is true and correct including any information which each
Holder has furnished and will furnish to the Company with respect to such Holder’s financial position, business experience
and residence, is correct and complete as of the date of this Agreement and if there should be any material change in such information
prior to the Company’s acceptance of this Agreement and the depositing of the payments described above, each Holder will
furnish such revised or corrected information to the Company. The representations, warranties and agreements of the Holder contained
herein shall survive the execution and delivery of this Agreement and the purchase of the Notes.

 

    	7

    	 

    

  

 (l) Each
Holder acknowledges that he has received notice of his possible right under applicable Florida law to rescind the purchase of
the Notes within three business days following the payment of the purchase price as set forth in Section 24 hereof.

 

 5. Each
Holders’ Representations and Warranties Concerning Suitability of Accredited Investor, Etc. Attached as Schedule
C is a Suitability Questionnaire which shall be submitted by the Holders to the Company in addition to the signature page
of this Agreement.

 

 6.
 Indemnification by the Holders. Each Holder agrees to indemnify and hold the Company and its agents, representatives
and employees harmless from and against all liability, damage, loss, cost and expense (including reasonable attorneys’ fees)
which they may incur by reason of the failure of such Holder to fulfill any of the material terms or conditions of this Agreement,
or by reason of any material inaccuracy or omission in the information furnished by such Holder herein or any material breach
of the representations and warranties made by such Holder on Schedule C.

 

 7.
 Grant of Security Interest in Collateral. As an inducement for the Holders to extend the loans as evidenced
by the Notes and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the
Obligations, the Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Agent for the ratable benefit
of the Holders a security interest in and to, a lien upon and a right of set-off against all of the Debtor’s right, title
and interest of whatsoever kind and nature in and to, the Collateral (the “Security Interest”).

 

8.
 Defaults. The following events shall be “Events of Default”:

 

(a)
The failure to pay principal or any interest under any of the Notes when due;

 

(b)
Any representation or warranty of the Debtor in this Agreement shall prove to have been incorrect in any material respect when
made;

 

(c)
The failure by the Debtor to observe or perform any of its obligations hereunder for ten business days after delivery to the Debtor
of notice of such failure by Agent; or

 

(d) Any
Event of Default under any of the Notes.

 

9.
 Duty To Hold In Trust. Upon the occurrence of any Event of Default and at any time thereafter, the Debtor shall,
upon receipt of any revenue, income, dividend, interest or other sums subject to the Security Interests, whether payable pursuant
to the Notes or otherwise, or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay
any such sum, hold the same in trust for the Agent on behalf of the Holders and shall forthwith endorse and transfer any such
sums or instruments, or both, to the Agent which shall hold and distribute the same to the Holders, pro-rata in proportion to
the respective then-currently outstanding principal amount of Notes for application to the satisfaction of the Obligations.

 

    	8

    	 

    

  

10.
 Rights and Remedies Upon Default.

 

 (a) Upon
the occurrence and during the continuation of any Event of Default, Agent, upon written request of the Majority in Interest, shall
have the right to exercise all of the remedies conferred hereunder and under the Notes on behalf of Agent for the ratable benefit
of the Holders. In such event, the Holders, acting exclusively through the Agent, shall have all the rights and remedies of a
secured party under the UCC. Without limitation, the Agent, for ratable benefit of the Holders, shall have the following rights
and powers:

 

(i)
The Agent shall have the right (but not the obligation) to take possession of the Collateral and, for that purpose, enter, with
the aid and assistance of any person, any premises where the Collateral, or any part thereof, is or may be placed and remove the
same, and the Debtor shall assemble the Collateral and make it available to the Agent at places which the Agent shall reasonably
select, and make available to the Agent, without rent, all of the Debtor’s premises and facilities for the purpose of the
Agent taking possession of, removing or putting the Collateral in saleable or disposable form.

 

(ii) Agent
shall have the right (but not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute
owner thereof.

 

(iii)
The Agent shall have the right (but not the obligation) to operate the business of the Debtor using the Collateral and shall have
the right to assign, sell, lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale
or otherwise, either with or without special conditions or stipulations, for cash or on credit or for future delivery, in such
parcel or parcels and at such time or times and at such place or places, and upon such terms and conditions as the Agent may deem
commercially reasonable, all without (except as shall be required by applicable statute and cannot be waived) advertisement or
demand upon or notice to the Debtor or right of redemption of the Debtor, which are hereby expressly waived. Upon each such sale,
lease, assignment or other transfer of Collateral, the Agent, for the benefit of the Holders, may, unless prohibited by applicable
law which cannot be waived, purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims,
right of redemption and equities of the Debtor, which are hereby waived and released.

 

 (b) The
Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be considered
adversely to affect the commercial reasonableness of any sale of the Collateral. The Agent may sell the Collateral without giving
any warranties and may specifically disclaim such warranties. If the Agent sells any of the Collateral on credit, the Debtor will
only be credited with payments actually made by the purchaser. In addition, the Debtor waive any and all rights that they may
have to a judicial hearing in advance of the enforcement of any of the Agent’s rights and remedies hereunder, including,
without limitation, their rights following an Event of Default to take immediate possession of the Collateral and to exercise
its rights and remedies with respect thereto.

 

    	9

    	 

    

  

 (c)
 Agent Appointed Attorney-in-Fact. The Company hereby irrevocably appoints the Agent as the Company’s attorney-in-fact,
with full authority in the place and stead of Company and in the name of Company, Agent or otherwise, from time to time after
an Event of Default shall have occurred, in Agent’s discretion, to take any action and to execute any instrument which Agent
may deem necessary or advisable to accomplish the purposes of this Agreement.

 

 (d) The
Debtor shall be obligated to assist the Holders in the liquidation of the Collateral upon an Event of Default.

 

11.
 Costs and Expenses. The Debtor agree to pay all reasonable out-of-pocket fees, costs and expenses incurred in
connection with any filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation
statements, partial releases and/or termination statements related thereto or any expenses of any searches reasonably required
by the Agent. The Debtor will also, upon demand, pay to the Agent the amount of any and all reasonable expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents, which the Agent, for the benefit of the Holders, may
incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the sale of, collection
from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the rights of the Holders
under the Notes. Until so paid, any fees payable hereunder shall be added to the principal amount of the Notes and shall bear
interest at the Default Rate.

 

12.
Term of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under
the Notes have been indefeasibly paid in full and all other Obligations have been paid or discharged; provided, however,
that all indemnities of the Debtor contained in this Agreement shall survive and remain operative and in full force and effect
regardless of the termination of this Agreement.

 

 13.
 Appointment of Agent.

 

 (a)
 The Holders hereby appoint Michael Brauser, 4400 Biscayne Boulevard, Suite 850, Miami, Florida 33137, to act as their agent
(“Agent”) for purposes of exercising any and all rights and remedies of the Holders hereunder. Such appointment
shall continue until revoked in writing by a Majority in Interest, at which time a Majority in Interest shall appoint a new Agent
which shall be effected only in accordance with Section 13(b). The Agent shall have the rights, responsibilities and immunities
set forth in Schedule D hereto. The Debtor shall be entitled to deal with the Agent on behalf of the Holders on all matters
and all actions taken by the Agent shall be deemed conclusively to be approved by and binding upon all of the Holders until receipt
of written notice of an appointment of a new Agent in accordance with Section 13(b) or resignation and replacement in accordance
with Schedule D.

 

    	10

    	 

    

  

 (b) In
the event that the Holders wish to appoint a new Agent, such appointment shall not be effective unless (i) the Holders submit
written notice to the Debtor executed by a Majority in Interest, certifying that the Majority in Interest has, at a meeting or
by written consent, relieved the previous Agent and appointed a new collateral agent as Agent in accordance with the provisions
of Schedule D, and further certifying that all non consenting Holders have received notice of the change in Agent and that
the previous agent is no longer acting in such capacity, and (ii) the newly appointed Agent as collateral agent shall execute
an agreement being to be bound by the terms of this Agreement and to act as Agent for the Holders. Receipt of such notice shall
be deemed binding upon all of the non executing Holders.

 

(c)
The Holders acknowledge that Michael Brauser, as of the date of this Agreement, will be one of the Holders.

 

 14. Severability.

 

If
any provision of this Agreement otherwise is deemed to be invalid or unenforceable or is prohibited by the laws of the state or
jurisdiction where it is to be performed, this Agreement shall be considered divisible as to such provision and such provision
shall be inoperative in such state or jurisdiction and shall not be part of the consideration moving from either of the parties
to the other. The remaining provisions of this Agreement shall be valid and binding and of like effect as though such provision
were not included.

 

 15. Counterparts.

 

This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument. The execution of this Agreement may be by actual, electronic or facsimile signature.

 

 16. Benefit.

 

This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their legal representatives, successors and
assigns.

 

 17. Notices
and Addresses. 

 

All
notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently
given if delivered to the addressees in person, by FedEx or similar receipted next business day delivery, or by e-mail delivery
followed by overnight next business day delivery as follows:

 

	 	The
    Company:	Emagine
    the Vape Stores, LLC.
	 	 	c/o Vaporin, Inc.
	 	 	4400 Biscayne
    Blvd.
	 	 	Miami, FL 33137
	 	 	Attention: Mr.
    Greg Brauser
	 	 	Email: gregbrauser@gmail.com
	 	 	 
	 	The Agent:	Michael Brauser
	 	 	4400 Biscayne
    Boulevard, Suite 850
	 	 	Miami, FL 33137
	 	 	Email: mike@marlincapital.com

 

or to such
other address as any of them, by notice to the other may designate from time to time. The transmission confirmation receipt from
the sender’s facsimile machine shall be evidence of successful facsimile delivery. Time shall be counted to, or from, as
the case may be, the date of delivery.

 

    	11

    	 

    

  

 18. Attorneys’
Fees.

 

In
the event that there is any controversy or claim arising out of or relating to this Agreement, or to the interpretation, breach
or enforcement thereof, and any action or proceeding relating to this Agreement is filed, the prevailing party shall be entitled
to an award by the court of reasonable attorneys’ fees, costs and expenses.

 

 19. Oral
Evidence. 

 

This
Agreement constitutes the entire agreement between the parties and supersedes all prior oral and written agreements between the
parties hereto with respect to the subject matter hereof. Neither this Agreement nor any provision hereof may be changed, waived,
discharged or terminated orally, except by a statement in writing signed by the party or parties against which enforcement or
the change, waiver discharge or termination is sought.

 

 20. Governing
Law.

 

This
Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether relating to its
execution, its validity, the obligations provided herein or performance shall be governed or interpreted according to the internal
laws of the State of Florida without regard to choice of law considerations.

 

 21. Florida
Blue Sky Legend.

 

FLORIDA
LAW PROVIDES THAT WHEN SALES ARE MADE TO FIVE OR MORE PERSONS IN FLORIDA, ANY SALE MADE IN FLORIDA IS VOIDABLE BY THE PURCHASER
WITHIN THREE DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE BY SUCH PURCHASER TO THE COMPANY, AN AGENT OF THE COMPANY OR
AN ESCROW AGENT OR WITHIN THREE DAYS AFTER THE AVAILABILITY OF THAT PRIVILEGE IS COMMUNICATED TO SUCH PURCHASER, WHICHEVER OCCURS
LATER. ALL SALES IN THIS OFFERING ARE SALES IN FLORIDA. PAYMENTS FOR TERMINATED SUBSCRIPTIONS VOIDED BY PURCHASERS AS PROVIDED
FOR IN THIS PARAGRAPH WILL BE PROMPTLY REFUNDED WITHOUT INTEREST. NOTICE SHOULD BE GIVEN TO THE COMPANY TO THE ATTENTION OF GREG
BRAUSER AT THE ADDRESS SET FORTH IN SECTION 17 OF THIS AGREEMENT.

 

 22. Section
or Paragraph Headings. 

 

Section
headings herein have been inserted for reference only and shall not be deemed to limit or otherwise affect, in any matter, or
be deemed to interpret in whole or in part any of the terms or provisions of this Agreement.

 

[Signature
Page Follows]

 

    	12

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Secured Line of Credit Agreement to be duly executed on the day and year
first above written.

 

	 	 	EMAGINE
    THE VAPE STORES, LLC
		 	 	 
	 	 	By:	 
	 	 	 	James
Martin, Chief Financial Officer
	 	 	 	 
	 	 	 
	 	 	Michael Brauser, as Collateral Agent
	 	 	 	 
	 	 	 
	 	 	Michael Brauser

 

[Signature
Page to Secured Line of Credit Agreement]

 

    	13

    	 

    

 

	 	 
	 	(Signatures
    of Holders)
	 	 
	 	PRINT
    NAME: 
	 	 
	 	AMOUNT
    OF INVESTMENT $_________
	 	 
	 	ENTITY
    NAME (IF APPLICABLE):
	 	 
	 	 
	 	TITLE
    OF SIGNER (IF APPLICABLE):
	 	 
	 	 
	 	TAXPAYER
    IDENTIFICATION OR SOCIAL SECURITY NO.:                                          
	 	 
	 	RESIDENCE
    OR BUSINESS ADDRESS:
	 	 
	 	 
	 	Street
	 	 
	 	 		 		 	
	 	City	State	 Zip
	 	 
	 	MAILING
    ADDRESS (If different from business address):
	 	 
	 	 
	 	Street
	 	 
	 	 	 	 	 	 	 
	 	City	State	 Zip

 

		Email
                                                                            Address:	 

 

[Holder
Signature Page]

 

    	14

    	 

    

 

SCHEDULE
A

 

DESCRIPTION
OF COLLATERAL

 

 1. All
of each secured parties’ right, title and interest in and to the Debtor’s cash, real property, leasehold interests,
fixtures, furniture, inventory, and other tangible and intangible assets.

 

    	 

    	 

    

 

SCHEDULE
B

 

 

Principal
Place of Business of Debtor:

 

Miami, Florida

 

Locations
Where Collateral is Located or Stored:

 

Miami,
Florida and each location where the Debtor commences construction of a Vape Store, or if the Debtor enters into leases for Vape
Stores where the leased property is located.

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