Document:

a50897535ex10_2.htm

Exhibit 10.2

 

 

TRADEMARK SUBLICENSE AGREEMENT

 

This TRADEMARK SUBLICENSE AGREEMENT (this "Agreement") is made and effective as of July 1, 2014 (the "Effective Date") by and between BDCA Venture Adviser, LLC (formerly known as Keating Investments, LLC), a limited liability company organized under the laws of the State of Delaware (the "Licensor"), and BDCA Venture, Inc. (formerly known as Keating Capital, Inc.), a corporation organized under the laws of the State of Maryland (the "Sublicensee") (each a "party," and collectively, the "parties").

 

RECITALS

 

WHEREAS, BDCA Adviser, LLC, a limited liability company organized under the laws of the State of Delaware (the “Owner”), owns certain rights in connection with the trademark "BDCA" (the "Licensed Mark"), which is used by the Owner in connection with financial and investment services in the field of equity and debt investments principally in private companies (collectively, the "Business");

 

WHEREAS, pursuant to the Membership Interest Purchase Agreement dated as of April 14, 2014 (the "Purchase Agreement"), the Owner purchased one hundred percent (100%) of the membership interests of the Licensor;

 

WHEREAS, pursuant to a Trademark License Agreement dated July 1, 2014 (the “Trademark License Agreement”), the Owner has granted to the Licensor a license to use and right to sublicense the Licensed Mark in connection with the Licensor’s business;

 

WHEREAS, the Licensor is an investment adviser registered under the Investment Advisers Act of 1940, as amended (the "Advisers Act");

 

WHEREAS, the Sublicensee is a closed-end management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended (the "1940 Act");

 

WHEREAS, pursuant to the Investment Advisory and Administrative Services Agreement, dated as of July 1, 2014, by and between the Licensor and the Sublicensee (the "Advisory Agreement"), the Sublicensee has engaged the Licensor to act as the investment adviser to the Sublicensee and to provide certain administrative services to the Sublicensee necessary for it to operate; and

 

WHEREAS, the Sublicensee desires to use the Licensed Mark in connection with the operation of its business, and the Licensor is willing to permit the Sublicensee to use the Licensed Mark, subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE 1

 

SUBLICENSE GRANT TO THE SUBLICENSEE

 

1.1 Sublicense.  Subject to the terms and conditions of this Agreement, the Licensor hereby grants to the Sublicensee, and the Sublicensee hereby accepts from the Licensor, a non-exclusive, worldwide, revocable, royalty-free right and license to use the Licensed Mark solely and exclusively as an element of the Sublicensee’s own company name and in connection with the business operations of the Sublicensee.  Except as provided herein, neither the Sublicensee nor any affiliate, owner, director, officer, employee, or agent thereof shall otherwise use the Licensed Mark or any derivative thereof without the prior express written consent of the Licensor in its sole and absolute discretion.  All rights not expressly granted to the Sublicensee hereunder shall remain the exclusive property of Licensor and/or Owner.

 

  

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1.2 Other Uses.  Nothing in this Agreement shall preclude Licensor, Owner or any of their respective successors or assigns from using or permitting other entities to use the Licensed Mark whether or not such entity directly or indirectly competes or conflicts with the Sublicensee’s businesses in any manner.

 

ARTICLE 2

 

OWNERSHIP

 

2.1 Ownership.  The Sublicensee acknowledges and agrees that the Owner is the owner of all right, title, and interest in and to the Licensed Mark, and all such right, title, and interest shall remain with the Owner.  The Sublicensee shall not otherwise contest, dispute, or challenge the Owner's right, title, and interest in and to the Licensed Mark.  The Sublicensee hereby assigns to the Licensor any rights it might acquire through its use of the Licensed Mark and the Sublicensee shall take all steps and execute all documents necessary to evidence the assignment of all such rights to the Licensor.

 

2.2 Goodwill.  All goodwill and reputation generated by the Sublicensee’s use of the Licensed Mark shall inure solely to the benefit of the Owner.  The Sublicense shall not by any act or omission use the Licensed Mark in any manner that disparages or reflects adversely on the Owner or its business or reputation.  Except as expressly provided herein, no party may use any trademark or service mark of another party without that party's prior written consent, which consent shall be given in that party's sole discretion.

 

ARTICLE 3

 

COMPLIANCE

 

3.1 Quality Control.  The Sublicensee recognizes that as a result of Owner’s advertising, investment, and service to clients, the Licensed Mark has acquired a high degree of favorable recognition.  In order to preserve the inherent value of the Licensed Mark and its associated goodwill, the Sublicensee agrees to monitor, control and supervise the quality of its operations and use reasonable efforts to ensure that it maintains a quality of its business and operation thereof that enhances the favorable recognition of the Licensed Mark and does not detract from it.  The Sublicensee further agrees to use the Licensed Mark in accordance with such quality standards as may be reasonably established by the Owner and/or the Licensor and communicated to the Sublicensee from time to time in writing, or as may be agreed to by the parties from time to time in writing.  The Sublicensee acknowledges that the Owner and/or the Licensor retains the right to inspect the books and records of the Sublicensee from time to time to determine whether the Sublicensee is maintaining such quality standards.

 

3.2 Compliance With Laws.  The Sublicensee agrees that the business operated by it in connection with the Licensed Mark shall comply with all laws, rules, regulations and requirements of any governmental body as may be applicable to the operation, advertising and promotion of the business, and that it shall notify Licensor of any action that must be taken by it to comply with such law, rules, regulations or requirements.

 

3.3 Approval and Sample Rights.  Except as permitted by this Agreement, the Sublicensee shall make no use of the Licensed Mark that is not approved by the Licensor in writing prior to such use.  Prior to any such use of the Licensed Mark, the Sublicensee shall submit to the Licensor exemplars of its proposed use of the Licensed Mark, and thereafter, the Licensor shall provide its written approval or notification that the proposed use is not approved.  Thereafter, the Sublicensee may resubmit revised exemplars for further consideration (and possible approval) by the Licensor.  The Sublicensee shall not make any use of the Licensed Mark that is materially different than any use that has been approved in writing by the Licensor.  The Licensor shall have the right to receive, upon request made to the Sublicensee, samples of each use of the Licensed Mark by the Sublicensee.

 

3.4 Notification of Infringement.  The Sublicensee shall immediately notify the Licensor and provide to the Licensor all relevant background facts upon becoming aware of (i) any registrations of, or applications for registration of, trademarks or service marks that do or may conflict with the Licensed Mark, and (ii) any infringements, imitations, or illegal use or misuse of the Licensed Mark.

 

  

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ARTICLE 4

 

REPRESENTATIONS AND WARRANTIES

 

4.1 Mutual Representations.  Licensor, on the one hand, and the Sublicensee, on the other hand, hereby represents and warrants to the other as follows:

 

(a) Due Authorization.  Such party is a limited liability company or corporation, as applicable, duly organized or formed, as applicable, and in good standing as of the Effective Date, and the execution, delivery and performance of this Agreement by such party has been duly authorized by all necessary action on the part of such party.

 

(b) Due Execution.  This Agreement has been duly executed and delivered by such party and, with due authorization, execution and delivery by the other party, constitutes a legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms.

 

(c) No Conflict.  Such party's execution, delivery and performance of this Agreement does not: (i) violate, conflict with or result in the breach of any provision of the charter or by-laws (or similar organizational documents) of such party; (ii) conflict with or violate any law or governmental order applicable to such party or any of its assets, properties or businesses; or (iii) conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of any contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement to which it is a party.

 

ARTICLE 5

 

TERM AND TERMINATION

 

5.1 Term.  This Agreement shall expire (i) upon expiration or termination of the Trademark License Agreement; (ii) upon expiration or termination of the Advisory Agreement; (iii) if the Licensor ceases to serve as investment adviser to the Sublicensee; (iv) upon any material breach of the Agreement by the Sublicensee that is not cured within 15 days; or (v) upon sixty (60) days' written notice of termination by the Licensor to the Sublicensee.

 

5.2 Upon Termination.  Upon expiration or termination of this Agreement pursuant to Paragraph 5.1 above, all rights granted to the Sublicensee under this Agreement with respect to the Licensed Mark shall cease, and the Sublicensee shall immediately discontinue use of the Licensed Mark; provided, however, that notwithstanding the foregoing, the Sublicensee has no obligation to reclaim or destroy materials that bear the Licensed Mark that are not in the Sublicensee’s customer or under their control.

 

ARTICLE 6

 

MISCELLANEOUS

 

6.1 Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  The Sublicensee may not assign, delegate or otherwise transfer this Agreement or any of its rights or obligations hereunder without the prior written consent of the Licensor.  No assignment by any party permitted hereunder shall relieve the applicable party of its obligations under this Agreement.  Any assignment by a party in accordance with the terms of this Agreement shall be pursuant to a written assignment agreement in which the assignee expressly assumes the assigning party's rights and obligations hereunder.

 

  

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6.2 Independent Contractor.  Except as expressly provided or authorized in the Advisory Agreement, no party shall have, or shall represent that it has, any power, right or authority to bind the other parties to any obligation or liability, or to assume or create any obligation or liability on behalf of the other parties.

 

6.3 Notices.  All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service (with signature required), by facsimile, or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses:

 

If to the Licensor:

 

BDCA Venture Adviser, LLC

5251 DTC Parkway

Suite 1100

Greenwood Village, CO 80111

Tel. No.: (720) 889-0139

Attn: Timothy J. Keating

 

If to the Sublicensee:

 

BDCA Venture, Inc.

5251 DTC Parkway

Suite 1100

Greenwood Village, CO 80111

Tel. No.: (720) 889-0139

Attn: Timothy J. Keating

 

6.4 Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts formed and to be performed entirely within the State of New York without giving effect to the conflicts of law principles thereof, to the extent such principles would require to permit the application of the laws of another jurisdiction.  The parties unconditionally and irrevocably consent to the exclusive jurisdiction of the courts located in the State of New York and waive any objection with respect thereto, for the purpose of any action, suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

6.5 Amendment.  This Agreement may not be amended or modified except by an instrument in writing signed by all parties hereto.

 

6.6 No Waiver.  The failure of any party to enforce at any time for any period the provisions of or any rights deriving from this Agreement shall not be construed to be a waiver of such provisions or rights or the right of such party thereafter to enforce such provisions, and no waiver shall be binding unless executed in writing by all parties hereto.

 

6.7 Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

 

6.8 Headings.  The headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.

 

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

 

  

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6.10 Entire Agreement.  This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements and undertakings, both written and oral, among the parties with respect to such subject matter.

 

6.11 Third-Party Beneficiaries.  Nothing in this Agreement, either express or implied, is intended to or shall confer upon any third party any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

[Remainder of Page Intentionally Blank]

 

 

  

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IN WITNESS WHEREOF, each party has caused this Trademark Sublicense Agreement to be executed as of the Effective Date by its duly authorized officer.

 

 

	 	LICENSOR:	 
	 	BDCA VENTURE ADVISER, LLC	 
	 	 	 	 
	 	 	 	 
	 	 	/s/ Timothy J. Keating	 
	 	By:	 	 
	 	 	Timothy J. Keating	 
	 	 	Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	SUBLICENSEE:	 
	 	BCDA VENTURE, INC.	 
	 	 	 	 
	 	 	 	 
	 	 	/s/ Timothy J. Keating	 
	 	By:	 	 
	 	 	Timothy J. Keating	 
	 	 	Chief Executive Officer	 

 

 

6THIS
NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”), OR UNDER THE SECURITIES LAWS OF APPLICABLE STATES. THIS NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY
AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS PURSUANT
TO REGISTRATION OR EXEMPTION THEREFROM.

 

CONVERTIBLE PROMISSORY NOTE

OF

eFLEETS Corporation

 

 

	44,635 Swiss francs	June 26, 2014

 

For
Value Received , eFLEETS CORPORATION, a Nevada corporation, (the “Company”), with principal
offices located at 7660 Pebble Drive, Fort Worth, Texas 76118, hereby promises to pay to the order of Koukis Holdings , SA 
(the “Holder”), upon the earlier to occur of (i) the Maturity Date or (ii) when declared due and
payable by the Holder after the occurrence and during the continuance of an Event of Default (as defined below), the principal
amount of forty four thousand six hundred thirty five Swiss francs (44,635 CHF), plus interest from and including the date
hereof on the principal balance at a rate per annum equal to eight percent (8.0%) payable at the Maturity Date. All payments by
the Company under this Note shall be made in immediately available funds.

 

Nothing in this Note
shall require the Company to pay interest at a rate in excess of the maximum rate permitted by applicable law. Any interest payable
hereunder or under any other instrument relating to the indebtedness evidenced hereby that is in excess of the maximum rate permitted
by applicable law shall, in the event of acceleration of maturity, late payment, prepayment, or otherwise, be applied to a reduction
of the then outstanding indebtedness evidenced hereby and not to the payment of interest. If such excessive interest exceeds the
unpaid balance of the outstanding indebtedness, such excess shall be refunded to the Company. To the extent not prohibited by applicable
law, determination of the maximum rate permitted by applicable law shall at all times be made by amortizing, prorating, allocating
and spreading in equal parts during the full term of the indebtedness evidenced hereby, all interest at any time contracted for,
charged or received from the Company in connection with the indebtedness evidenced hereby, so that the actual rate of interest
on account of such indebtedness is uniform throughout the term thereof.

 

The following is a
statement of the rights of Holder and the conditions to which this Note is subject, and to which the Company and the Holder hereof,
by the acceptance of this Note, agrees:

 

1.           Definitions.
The following definitions shall apply for all purposes of this Note:

 

1.1           “Business
Day” means any day other than a Saturday or Sunday or a day on which banks in Fort Worth, Texas are authorized or
required by law to be closed.

 

1.2           “Common
Stock” means the $0.001 par value common stock of the Company.

 

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1.3           “Company”
means the “Company” as defined above and includes any corporation or Person which shall succeed to or assume the obligations
of the Company under this Note.

 

1.4           “Conversion
Stock” means the shares of capital stock of the Company issuable upon conversion of this Note in accordance
with Section 3 hereof.

 

1.5           “Convertible
Securities” means any evidence of indebtedness, shares (other than Common Stock) or other securities convertible
into or exchangeable for Common Stock.

 

1.6           “Event
of Default” shall have the meaning as set forth in Section 5.1 hereof.

 

1.7           “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

1.8           “Holder”
means the “Holder” as defined above or any Person who shall become the registered holder of this Note on the books
of the Company.

 

1.9           “Options”
means options, rights or warrants to subscribe for, purchase, or otherwise acquire Common Stock or any other capital stock of the
Company, or Convertible Securities.

 

1.10           “Outstanding
Balance” means the unpaid principal amount due under this Note together with any then unpaid accrued interest.

 

1.11           “Person”
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization or any other business entity.

 

1.12           “Purchase
Price” means the per share price of $0.40, post-split price or $1.00, pre-split price.

 

1.13           “Reverse
Merger” means the merger of the Company with a so-called “public shell company” as a result of which
the Company becomes subject to the public reporting requirements of the Exchange Act.

 

1.14           “Warrants”
means the warrants to purchase Common Stock issued in conjunction with this Note on even date herewith pursuant to the terms of
this Note and the Warrant Certificate.

 

2.           Repayment.
Subject to the other provisions of this Note, the Outstanding Balance shall be due and payable in cash on the first annual anniversary
date of this Note.

 

3.           Conversion.

 

3.1           Conversion
at Holder’s Option. For so long as this Note is outstanding, the Holder shall have the option and right to convert
all or a portion of the Outstanding Balance of this Note into the Company’s Common Stock at the Purchase Price (the “Conversion
Right”).

 

3.2           Required
Notice. The Holder may exercise its option to convert the Outstanding Balance of this Note into shares of the Company’s
Common Stock by (a) surrendering this Note for cancellation (or a notice to the effect that the original Note has been lost,
stolen or destroyed and an agreement acceptable to the Company whereby the Holder agrees to indemnify the Company from any loss
incurred by it in connection with this Note) and (b) giving not less than five (5) Business Days’ written notice to
the Company at its principal corporate office of the election to convert the same
pursuant to Section 3.1, including the amount of the unpaid principal amount of this Note to be converted. Such conversion
shall be deemed to have been made immediately prior to the close of business on the date of such surrender of this Note.

 

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3.3           Anti-Dilution
Adjustments. The anti-dilution adjustments described in this Section 3.3 shall be made in the manner herein provided with
respect to the “Conversion Right”.

 

(a)           Reclassification,
Consolidation or Merger. In case of any reclassification or change of outstanding securities issuable upon exercise of the
Conversion Right, or in case of any consolidation or merger of the Company with or into another corporation or a partnership (other
than a merger with another corporation or a partnership in which the Company is the surviving corporation and which does not result
in any reclassification or change of outstanding securities issuable upon exercise of such Conversion Right), or in case of any
sale or transfer to another corporation of the property of the Company as an entirety or substantially as an entirety, then the
Company, or such successor or purchasing corporation, as the case may be, shall, without payment of any additional consideration
therefor, issue new securities of the Company or of the successor or purchasing corporation, as the case may be (the "Substitute
Securities"), to Holder on the terms set forth in this Section 3.3. Such Substitute Securities shall be convertible on terms
as nearly equivalent as practical to the terms set forth herein for the exercise of the Conversion Right into the kind and amount
of shares of stock, other securities, money and property that such Holder would have received at the time of such reclassification,
change, consolidation, merger, sale or transfer, if such Holder had exercised the Conversion Right of such Holder immediately prior
to such reclassification, change, consolidation, merger, sale or transfer. Such Substitute Securities shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 3.3. The provisions of
this Section 3.3 shall similarly apply to successive reclassifications, changes, consolidations, mergers, sales and transfers.

 

(b)           Subdivision
or Combination of Shares. If the Company at any time while any of this Note is outstanding, shall subdivide or combine its
Common Stock, the Purchase Price shall be proportionately decreased, in case of subdivision of shares, as of the effective date
of such subdivision, or if the Company shall take a record of holders of its Common Stock for the purpose of so subdividing, as
of such record date, whichever is earlier, or shall be proportionately increased, in the case of combination of shares, as of the
effective date of such combination or, if the Company shall take a record of holders of its Common Stock for the purpose of so
combining, as of such record date, whichever is earlier.

 

(c)           Stock
Dividends. If the Company, at any time while this Note is outstanding, shall pay a dividend or make any other distribution
to holders of Common Stock payable in Common Stock, the Purchase Price shall be adjusted, as of the date the Company shall take
a record of the holders of its Common Stock for the purpose of receiving such dividend or other distribution (or if no such record
is taken, as of the date of such payment or other distribution), to that price determined by dividing the Purchase Price in effect
immediately prior to such record or distribution date by a fraction of which (i) the numerator shall be the total number of shares
of Common Stock outstanding immediately after such dividend or distribution and (ii) the denominator shall be the total number
of shares of Common Stock outstanding immediately prior to such dividend or distribution.

 

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(d)           Company’s
Report as to Adjustments. In each case of any adjustment in the Purchase Price, the Company, at its sole expense, shall promptly
(i) compute such adjustment in accordance with the terms of this Agreement; (ii) prepare a report setting forth such adjustment
and showing in reasonable detail the method of calculation thereof and the facts upon which such adjustment is based (including,
without limitation, (a) the event or events giving rise to such adjustment; (b) the method by which any such adjustment was calculated;
and (c) the Purchase Price in effect immediately prior to such event or events and as adjusted); (iii) mail a copy of each such
report to the Holder; and (iv) keep copies of all such reports available at its principal place of business for inspection during
normal business hours by the Holder or any prospective purchaser of this Note, and upon request by the Holder provide copies thereof
to such Investor or any such prospective purchaser.

 

4.           Surrender;
Issuance of Conversion Stock; Termination of Rights. Concurrently with any conversion of this Note, the Holder shall surrender
this Note to the Company for cancellation, or deliver an executed affidavit of loss, damage or mutilation and agreement to indemnify
the Company therefrom, in form reasonably requested by the Company. Concurrently with the surrender of this Note (or affidavit),
the Company at its expense, will cause to be issued in the name of and delivered to the Holder, the number of shares of Conversion
Stock to which the Holder shall be entitled upon such conversion (bearing such legends as may be required by applicable state and
federal securities laws in the reasonable opinion of legal counsel of the Company, or by any written agreement between the Company
and the Holder) and any other securities and property to which the Holder is entitled upon such conversion under the terms of this
Note. Such stock shall be reserved first as satisfaction of the accrued interest under the Note. If upon any conversion of this
Note, a fraction of a share would otherwise result, then in lieu of such fractional share, the Company will pay to the Holder the
cash value thereof, calculated on the basis of the applicable Purchase Price. Notwithstanding the foregoing, all rights with respect
to this Note shall terminate immediately after the conversion of this Note (and corresponding payment of interest in stock) in
accordance with the terms hereof, whether or not this Note has been surrendered, and this Note shall represent only the right to
receive one or more stock certificates from the Company representing the applicable number of shares of Conversion Stock. The Company
shall have 15 days after surrender of a Note for conversion to issue certificates evidencing Conversion Stock.

 

5.           Default.

 

5.1           Events
of Default. Each of the following shall constitute an event of default (each an “Event of Default”):

 

(a)           the
Company fails to make any payment under this Note when the same becomes due and payable and such default shall continue for a period
of twelve (12) days;

 

(b)           the
Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of
all or a substantial part of its property, (ii) be unable, or admit in writing its inability, to pay its debts generally as
they mature, (iii) make a general assignment for the benefit of it or any of its creditors, (iv) be dissolved or liquidated,
(v) become insolvent (as such term may be defined or interpreted under any applicable statute), (vi) commence a voluntary
case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession
of its property by any official in an involuntary case or other proceeding commenced against it, or (vii) take any action
for the purpose of effecting any of the foregoing; or

 

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(c)           Proceedings
for the appointment of a receiver, trustee, liquidator or custodian of the Company or of all or a substantial part of the property
thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to Company
or the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an
order for relief entered or such proceeding shall not be dismissed or discharged within thirty (30) days of commencement.

 

5.2           Remedies
upon Event of Default. Upon the occurrence of an Event of Default, the entire Outstanding Balance shall, after five days written
notice from Holder, automatically become immediately due and payable to the Holder without presentment, demand, protest or notice
of any kind, all of which are hereby expressly waived and the Company shall promptly pay to Holder all such amounts. In addition,
the Company hereby agrees to pay to Holder all reasonable out-of-pocket costs and expenses incurred by Holder in any effort to
collect any amount due under this Note.

 

6.           Affirmative
Covenants. So long as any of the Notes remain outstanding, the Company shall:

 

6.1           Compliance
with Laws. Comply in all material respects with applicable laws, rules, regulations and orders, such compliance to include,
without limitations, paying before the same become delinquent all taxes, assessments, and governmental charges imposed upon it
or upon its property except for good faith contests for which adequate reserves are maintained.

 

6.2           Continuance
of Business. Maintain its corporate existence and licenses necessary to conduct its business as presently conducted or proposed
to be conducted, in good standing under, and in material compliance with, all applicable laws and continue to operate the business
conducted by the Company and its subsidiaries in accordance with its operating plan, as approved by its Board of Directors from
time to time.

 

6.3           Reservation
of Shares. At all times have authorized and reserved, and will keep available solely for delivery upon the conversion of this
Note, Common Stock and other securities and property as from time to time shall be receivable upon the conversion of this Note,
free and clear of all restrictions on issuance, sale or transfer other than those imposed by law and free and clear of all pre-emptive
rights.

 

7.           Warrants.
In conjunction with Holder making this loan to the Company, the Company agrees to contemporaneously issue the Warrants to Holder
for the purchase of 50,000 pre-split shares of the Company’s Common Stock at the Purchase Price (the “Warrants”),
at any time or from time to time prior to 5:00 P.M., Central Standard Time, June 26, 2019 (such date, the “Expiration
Date”). If the anti-dilution provisions under Section 3.3 of this Note result in an adjustment in Holder’s Conversion
Right, then a similar adjustment will be made to the number of shares of Common Stock or other property that Holder is entitled
to, and the price payable for same, pursuant to the Warrants. The Warrants may be exercised in whole or part in the same manner
provided for a conversion under Section 3.2 and Section 4.

 

8.           No
Rights or Liabilities as Equity Holder.  This Note does not by itself entitle the Holder to any voting rights or other
rights as a holder of stock of the Company. In the absence of conversion of this Note, no provisions of this Note, and no enumeration
herein of the rights or privileges of the Holder, shall cause the Holder to be a holder of stock of the Company for any purpose.

 

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9.           Prepayment.
The Company may prepay (in whole or in part) the Outstanding Balance of this Note after giving the Holder 10 Business Days notice
of such intent so as to provide the Holder an opportunity to convert this Note into Common Stock.

 

10.           Waivers
and Amendments. No delay or omission on the part of the Holder in exercising any right hereunder shall operate as a waiver
of such right or of any other right of the Holder, nor shall any such delay, omission or waiver on any one occasion be deemed a
bar to or waiver of the same or any other right on any future occasion. This Note may not be amended, waived or modified except
by a written instrument signed by the Holder and the Company.

 

11.           Assignment.
The rights, interests or obligations hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by the
Company without the prior written consent of the Holder. Subject to the preceding sentence, the terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this document,
expressed or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by
reason of this document, except as expressly provided in this document.

 

12.           Governing
Law. This Note shall be governed by and construed under the internal laws of the State of Texas without reference to principles
of conflict of laws or choice of laws.

 

13.           Headings.
The headings and captions used in this Note are used only for convenience and are not to be considered in construing or interpreting
this Note. All references in this Note to sections and exhibits shall, unless otherwise provided, refer to sections hereof and
exhibits attached hereto, all of which exhibits are incorporated herein by this reference.

 

14.           Severability.
 In the event that any provision of this Note becomes void or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed
from this Agreement, and such court (or the parties hereto, pursuant to Section 11 hereof, if such court declines to do so) shall
replace such illegal, void or unenforceable provision of this Note with a valid and enforceable provision that will achieve, to
the greatest extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The
balance of this Note shall remain enforceable in accordance with its terms.

 

 

    	-6-

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Convertible Promissory Note to be executed in its name as of the date first above written.

 

COMPANY:

 

eFLEETS CORPORATION

 

	By:	 	 
	 	James R. Emmons,
	 	President

 

 

AGREED AND ACKNOWLEDGED:

 

HOLDER:

 

Koukis Holdings, SA

 

 

 

By:__________________________________

 

Name:______________________

 

Title:____________________

 

	Address:	_________________________
	 	_________________________
	 	_________________________

 

 

 

 

    	-7-

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